Milestone Scientific (MLSS) 15 Nov 242024 Q3 Earnings call transcript

Good morning, everyone. Welcome to the Milestone Scientific Third Quarter 2024 Financial Results and Business Update Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, David Waldman, Crescendo Communications. David, the floor is yours.

Jenny. you, Thank thank Quarter and for Milestone joining Good Financial you Results Third XXXX Conference Scientific's morning, all Call.

and Haverhals, On also company's the of Executive Finance Arjan Chairman afternoon Scientific. The release is company third Neil are Vice issued Officer; of website. Chief a Milestone call with which the quarter the us Board; XXXX posted today results, Keisha on President, Harcum, yesterday press Goldman, containing are financial

information call, you will company, XXXX. about the any XX, for September additional after financial like If for at now management operational quarter the and remarks the the contact XXX-XXXX. Company's would Communications have prepared Crescendo you please in ended third results any questions (XXX) provide

this [indiscernible] and a we of respect regarding and number expected conference of judgments forward-looking economic, which statements get to decisions, difficult business and business impact implement success. These which and control. financial future make statements predict call, and involve all to we Before are with Milestone's many or to we during would risks market may timing started, are Milestone's and of future plan, like and future impossible conditions its uncertainties ability of revenues to that assumptions accurately involving remind beyond competitive everyone

our requirements cause third Some with milestones failure customer and the time ended conditions, to Form from the September Milestone's XXXX. to could the year from [indiscernible] report at expenses, the the of changes December developments, filings and in on important differ patent are factors growth, XX, quarter XX-Q competitive report the Securities adverse periodic or XX, ended general without echo standards legal risk achieve Commission, and Form for in actual and detailed Milestone's limitation time on materially factors forward-looking and XX-K changes to results XXXX, Exchange in operating that market [indiscernible], those pressures, revenue statements indicated FDA by expected

to update call Arjan. the statements date, any based belief ahead, any Milestone or revise are as Officer. Chief call go this made statements obligation turn upon Haverhals, reason. of we'll to reasonable Arjan Please over today's forward-looking XXXX. publicly now XX, no November during Forward-looking Executive that, management's With for undertakes

everyone and to on the call you, Thank joining David, us thanks today.

the with demonstrating enable a in procedure decision reimbursement to educate JMAC's, Center pain barrier safety are system, predictability, payers our and now cornerstone our an efficiency. as the interest share for predictive that JMAC we the Dr. optimistic additional addressable led anesthesiology. Earlier in the in this continue adoption utility, contractors, Jersey, This Expanding their verification Medicare clinics by we rolling robust an strong for revenue, Scientific been with reliability. the doing out margins, to strategy forward achieved in with a by pain across iHealPain off a more administrative addresses XX% market to critical model growth epidural B freight to Notably, rate in Hudson we In Texas financially physician point steroid coverage. management and CompuFlo customer was CompuFlo one by $XXX and represent aim placement providers. Both year quarter driven Part Milestone connect satisfaction. payment for that system's continuously million we paying enhances year, which strengthened addresses at safety, by Medicare that has physicians regions New as are management and procedures are across Albas progress injection jurisdictional CompuFlo challenges and improving and procedures, has performed pressure adopt entry Texas adoption year-over-year on an will Medicare our already streamlined high X value of regions, offer which a broader CompuFlo we remain it JMAC where to of System, the a need our seen primarily have Medical us opportunity gaining we reflects gross benefit of sales offering are working System, and responsive for shift engagement Care, dental division, our including have jurisdictions the XX% technology, and by provider particular, Dental to XX%. In expertise large sales achieved our for a has This assignment and assignment country. Currently, and serves $X.X e-commerce the the logistics management excited assignment. Medicare pain are resolved. Domestically, renowned experience us among with is collaboration important loyalty were top these as in approach needle growth. to about market foundation alone precise estimated the to system accessible major each build efficacy assist CompuFlo This allowing and payment directly XXXX real-time our Epidural By in and their significant million, the patients are reaching traction international million our increase patients. Through Specialty applies CompuFlo JMAC making division. a several offers Epidural System. to regions, This providers Medicare and Epidural feedback quarter in we catalyzed to expanding as Florida. U.S. received clinics of see patient second rate Medicare a we increased our customers which respected a clinical so, in recognition evaluating adopted such the substantial we system,

CompuFlo partnership key with our Jersey, critical with component within deepen best into positioned hands This of are benefits awareness efficiently clinics to advocate the JMAC Florida. build more presence and in regions who particularly is and of these providers deploy of like strong space, our in can strategic footprint a deep markets. partnership and a we for among management its [indiscernible], New to actual approach. [indiscernible] us a pain Our target the key commercial patients. has By enables biologics distributor Texas relationship and the specialized partnering

with we for bills In commercial line pipeline strategy, the by growing CompuFlo. are our encouraged

We States pilot practitioners. to that brings clinical have pilots the valuable the insights which are underway clinics with safety clinics real-world Epidural systems procedures. to have and allow additional These to pain validate United profile and CompuFlo designed management value across experience the further to advantages programs firsthand utility showcases provided and

positive adoption sales increased contributing these from clinics to that full-scale With from in anticipate trial we results to coming pilots, quarters. move continue to will the

as and front, CompuFlo international know, health Brazil's Epidural pain. a the recently use X.X procedures. in with chronic regulatory population represents agency market from opportunity large to experiencing million approval you significant a annual back secured, On births over for we Brazil

Our partners local market strategy who within effectively establishing with entry Brazil help in commercial us CompuFlo launch the medical institutions involves relationships will and leading region.

Brazil promising ninth to growth for largest economy Latin avenue door the As opens Milestone America, providing globally, the a Scientific. and South

effective to there devices we targeting traditional limited and expanding relationships epidural markets, are to each our training Brazil, by strategically markets in with medical forging where ability is territories. are these the introduce their we In global selected innovative resources. and independent By alternatives distributors to procedures proven within distributors, reach for addition safe for entering particularly regions demand in key with

initiatives, and our remains As focus ahead, on strengthening penetration. reimbursement market we our commercial infrastructure deepening advancing look our

our United seeing Hudson growing in coverage, and our we programs we're confident Epidural center, traction pipeline, are Care the drive adoption ongoing markets. CompuFlo contributing pilot system States both a Specialty IV the respected With Medicare adopting further sales from of international ability clinics CompuFlo in pain and like and to to

set on our be By growth online Lastly, I'd to in e-commerce seamless platform, where directly through Dental and like effect improve our strong our market. the the we've margins. This for experience, model purchasing briefly in created division, e-commerce foundation of a domestic continue selling transition customer touch engagement resulting increased to felt. steady a has positive

X our for complementing marketing by and to able year, with we expanding the XX.X%, aimed were months this the at Over customer are business base period campaigns this targeted further. e-commerce grow we

operational our strengthened been Scientific as with advancements substantial this retirement payment including As physician a significant this securing I assignment footing B at Medicare transformative how milestone, has want of achieving commercial and and system. This continued innovation. and the rate and Part made broadened during period. along has the Milestone epidural I partnerships strides reach for foundation for we on lead Scientific financial to of end it growth CEO a stable solid to Together, milestone approach express CompuFlo positioned duly have fulfilling my year, Milestone

time other and While family Milestone's remain looking I with to forward committed spending interest, I'm to more success. pursuing

the support the I for in to continue to XXst the full the closely shared to care future our drug our with of of I'm from patient where delivery team member contributing Milestone's as and leadership XXXXs to the honored a will work take realization role enhancing century. vision Board company's

groundwork remarkable have growth the that its equipped Scientific Milestone and I'm excited is With we to Thank for confident you. I'm of lies phase achieve next well ahead. what laid,

to in of the please to over financials go our the turn go like Finance, I'd to call Harcum, Now President Keisha ahead. Vice more over Keisha, detail.

XXXX months months was XXXX, approximately X dental XXXX $X.X service million. was Arjan. e-commerce ending and million U.S. for XX, the XX, million, ending respectively. Thank September The for X XXXX, approximately Revenue you, revenue $X.X September the and and and $X.X

for increase an million profit XX, recorded months of $X.X $X.X months for $XX,XXX. for was September profit the was XX, XXXX. in XX, $X.X resolving international XXXX, the ending second compared quarter XX, sales. for per freight of $X.XX XXXX, million, XXXX. due loss of or The of XX% in September XXXX. The approximately Net and September for XX, September international China sales months third ending delays XXXX forward versus quarter ending XX, was third to or revenue approximately revenue For X of the quarter X was September was the XXXX, million Operating $X.X increase XXXX. the the XXXX. International million XX, gross million from revenue ended to no XXXX, share XX% ending loss revenue increased $X.X to and a Gross the decrease $X.X ending September approximately and X million, XXXX, X the September company higher approximately the and company due months

service revenue September months $X.X approximately respectively. ending million revenue XXXX, e-commerce $X.X XX, to September for was months XX, the XXXX. and ending U.S. million X XX, digital XXXX, $X.X was million $X.X XXXX, and X million, compared approximately at September The the With

for share Jersey of sales X first share XXXX. per was first XX, $X.X quarter For X the months The of for of the during of loss primarily due September company $X.XX months ending months New approximately receipt million months second versus the revenue of by XX, months International the for compared net XXXX. sale first September XXXX a versus decrease was freight net XXXX, international $X.X losses for XXXX. The X expenses versus XX, revenue or decrease gross X a period million revenue million months revenue million million for for approximately months the compared X ended XXXX. to for September to Net million, X of Operating loss carriers $X to of operator for decreased $XXX,XXX driven of approximately forward of ended net no comparable in of the losses. was million million $X.XX $X.X company's the XX% $X.X for $X.X $X.X and approximately the was the XXXX, XX, $X XXXX. The or September XXXX net approximately with recorded per the or X of X XXXX months loss issues was of XXXX. for the million profit the XX% $X.X

turn attention resources. I Now to to capital your liquidity like would and the

manage We sheet. maintained a expenses continue to carefully and balance solid have

no At cash and company equivalents $X.X to turn Haverhals. working the point, call September debt. cash million XX, I'll approximately of At and $X.X long-term Arjun over this capital and XXXX, back the had of million

believe and both dental provides with And September $X.X Keisha. within year, as the Keisha maintain to cash this we mentioned, for of and of the million capital. sheet balance need medical us strong our growth cash additional sufficient which Thank without approximately support resources outside you, XX equivalents a as divisions we continue to

committed remain have value. and driving We maintained operating shareholder a lean structure to

advancing expansion Epidural our by the CompuFlo side, pain of remain our we distribution international the as given medical clinics system. around importantly, outlook addition as we're pipeline, for well new partners. strategy business progress On encouraged the Most our management sales of reimbursement making the the

confident large clinical our represents in We care our we are a with become procedures providing JMAC regions discussions addressable in look a further Medical segment with advancing safety. forward precision CompuFlo we and epidural additional further to focus will updates. The coverage, on and expand standard belief market, remain ultimately to and of the that

So you have developments in scalable platform the Medical and we questions. to at on forward segment wrap commercial thank call drive both recurring in the to would and for point, high-margin further to up Operator? efficient dental sales announcing open this up, to developed we reimbursement believe an and we And to to joining years help look our I'd call the like today. like fronts. coming

Instructions] [Operator

Your first Sherwood is Group. come question from the Maxim of Nick

How clinics are discussions and going decisions? the positive with pain following hospitals reimbursement

think by different we we the question, refresh am providing where think, we since in that jurisdictions of on In our and clinics last of a patients are minds in the knowledge able that express options did initiatives the strategy our I to reaching we positive and July to top Nick. Day, now knows received we jurisdictions. the bit. , with the X Thank I the explain officially partnership the the and September, our you got that the them the reimbursement these Labor we positive and jurisdictions. would to company the Medicare provided, all we pleased out biologics were actual which for pricing of X We for assignment. And after Medicare hot our the second pricing undertook a reimbursement I On little of assignments product, leads XX-plus middle was XX, week Actual to your finalized price in sign so have August, it [indiscernible]. launched actively like price because you with any leads, in through about have, head, of my particular, background the after [indiscernible] that history and not to AxolBiologics. I launched try thereby

provide opportunity call our what So immediately that we resulted to pilots.

from is actual their the will they we'll clinicians and the with process their components. then based sales decision-making with decide and And will our a the do on the So procedures then and of people, clinicians then equipment to number we process, schedule a support that purchase cases of number people do purchase themselves. patient

has very sign to has clinics New were a that in this we the So that and where actually week, event York we as and resulted demos Jersey adopted clinics that had New already last speak, major X for was successful we additional technology. pilot. able in up

the with So activities are I'm not we complaints and based I do undertaking, any that pleased have on the activity.

X It's a week. simple. very it's days Look,

get the We are to in people clinic, we that trials doing more interested in technology demos, doing provide. and

kind on a And that Understood. little of bit. following up

process kind build build into to you of that leads? of you growing backlog? also growing a And of Were sales trying -- same a but rate it just what are at there? have insight a you keep are your is can balance bit Or there? like little -- balancing sales converting those but you sort the give large pipeline. pipeline, mentioned You the that converting on How

we the sales basic course, you this management, a based principles is have sound And up But of build quotes. when on, phase I arrogant daily an to the received of funnel. I have follow And comment evaluation in don't track which to which process, clinics clinics basis, are on not point. my sales I right? my That's is want Yes, here. think of

sales a funnel. So is it we increase want a basis, to daily combination. On the

buying And sales calling a course, I'm at clinics then, to have products patient a we I receive we clinic on same been convert they not that said, the that time, the like clinics to are These once period to us very the schedule. funnels confirmed would of these short those on based thereafter, it that a into have are backlog. in that demo. focusing in

focus So it's the on we thing. one we day other and on not this focus that the next day,

and and those perform not last we're we least, trials sales convert our to sure continuously, things. to to focusing Now clinics to can sales then as demos of on make A, pilots but quality the well. funnel, increase the that the and X funnel, increase

information a third CompuFlo share some utilization have the you you Understood. and now? clinics then who been any for me Can question. rates reorder using from if Okay. And allow on time

absolutely. No, Yes.

been I that used in the of we clinics part advisory advisory has board clinics those that the think or beginning.

Jersey is Dinesman clinic our definitely has pattern. speak, New a reordering also I think technology. flagship in the that Dr. our increases utilization very of the strong as we And of

then, is the with sales that's Like for to for the sure immediately is on recently did also purchased process based talked the explained and already of for tier, the very committed that that consumables, example, XX. That doctor us which very making one reordering positive you. After for So right, pleased X of volumes we course, a is already with patients. purchased products I fifth material and that of couple to us. clinics to that appointed or in are encouraging converting, he the the I'm days, boxes first we pattern. very very probably in is able XX encouraging of is increase that I pricing

we question the another the any or for think And could proposal I answer no. get the do feedback pressure consumable. be, is price on

of So insurance identified, the within by the strategy is us region. as Medicare the we it they fee to the have providers clinicians once defined confirmation documentation they and the and medical necessity "accepted" submitted chosen, sales strategy getting that we that have have the immediate tells that benefit the reimbursement their also see the

one. one just last maybe guess I

specific are maintaining had of a on do momentum? how that? You mentioned really the International you that And that plan what Dental drivers quarter. strong the

Yes.

challenges logistic, say, I have I there freight second call, explained the it, on let's call as the Those solved. and hiccups forwarder. So quarter, with were, been in

that's that, reason. not only the it's So

gap, was that close last head, the of million about I that year. the top on my quarter Another of were of an compared $X.X we reason able think is additional difference the to sales to

in So to and that. is, quarter, progress on in good made of the the surpass course, business we the goal the continue the is fourth growing. And as fourth dental quarter of sales year, last we international

continue $XXX,XXX. So which sales will going again, year being, last is I'm sold that we international course, to compared that this fantastic. anything caveat the was positive not year, to China of have E-commerce is

So States agreements we distributors had other United plays September the the in with current the year that by as of strategy last terminating off.

we And execution, that that's about all have we focusing the out. we the and it's things, from that day, part are focusing what that course, on. seems of and are simple. it are strategies chosen the It's focusing very working are end in other So what on at lay we on of

coming Bruce the next is Company. Jackson from Your question Benchmark of

could getting the of bit like additional for about a there's and talk just we If more a course, strategy involved. little JMACs process the JMAC,

Yes. got we we assignment New in Texas, and price are Jersey. X, or the approved Florida the

We are steps in in JMAC. other advanced for

JMAC, for whether the will is the going to JMACs first X. That they who in to technology out X, the process because and that reached we without clock make they their the we and reached are, into goes clinicians able on meetings fast the to we ticking the with starts what have the assignment details of did is resulted to decision from technology. because our has support based of and in out we detail back got what X, on pricing explain, your first to those the the have educate We about positive depending JMACs question other how that the again, the are then with where explain on what we response will part positive similar that

that on are as that and that forward limited So process as we well. able are I'm we with move to team again there encouraged well with a having positive

do JMAC with have to conjunction are partners quickly? you so that for follow-up have a you process, identified commercialize reimbursement, then that. the distributors In able other and you those JMACs once that And you do get to

JMACs. always I list of target distributors what in have we Yes, call a those

to us But we where then in that right will again, is distributors that. pain yes, would we a a have the relationship little make that the know those sticky partners. Like JMACs. in hot there very up those what are, in is know national mind can be having a that Instead customers there the I That's pain leads I situation I identified to the sort to only and once jump want we that distributor to say execute past, in where provide clinics of of they on fairness, a to bit or on or from to distributors always on the of a that price have first be the to a that to positivity think in that, commercialization. larger and with all segment sure leads, into able explained call it's the us you are row, know the to these assignment. interested confirmation a fight top I seat a have

Okay. revenue moving to over And the then numbers.

and number, there that be should you've revenue the for revenue mentioned forwarding be that general, freight addressed fourth You the internationally total up the issue year-on-year In will quarter. that year-over-year? for also up

making a all the us for that and of having. reduce with are is, to efforts goal seen X that is without year, gap course, gap that have goal, we compared resources last course, trying all reduce months the we to we're of forward-looking that statement. and to Well, The

we will campaign was Again, that very domestically. Thanksgiving also it pushing have special a last are We year. successful

we are to dormant existing acquire So say, reactivating whatever at new also customer base. We out the I to would and customers so only, doing same customers, time, can develop actively reach to we customers. not say, to

there year enhance Apple to So further XXXX. results and of of an for total is an support array activities the

Thank question-and-answer over we the have any of closing you end Well, pleased reached session. very Arjan hand to now our much. I to for will remarks. back are

today. call the joining for you thank Again,

purpose to organization. pressure said, on continue you clinicians, the on and is the pressure on our in goal put I put the market to our As to

investors importantly, that we So I'm results only more are for, also looking can I and think that the all shareholders looking that not but the obtain the for.

questions to to reach you me, you you. to Thank I any wish out might be further find and answer good and available have a any Bye-bye. that soon. And questions, where I you would day. you day, we Please a me. and good safe do have. talk If know Have

Thank you does This today's much. conference very call. conclude

You phone you wonderful weekend. Thank wonderful your at time, may and have disconnect day for this and your lines a a participation.