TLGTQ Teligent

Philip Yachmetz Chief Legal Officer and Corporate Secretary
Tim Sawyer President and Chief Executive Officer
Ernie De Paolantonio Chief Financial Officer
Matt Hewitt Craig-Hallum Capital
Call transcript
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Good day, and thank you for standing by. Welcome to the Teligent, Inc.

First Quarter 2021 Results Conference Call. At this time, all participants’ are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. now today, hand President Philip Legal would to conference and I Officer. speaker your Yachmetz, Instructions] like the to over Chief [Operator Executive Vice ahead. go Please

Philip Yachmetz

for all Thank call. conference you, you, welcome first to operator. and XXXX And thanks joining earnings Teligent’s quarter of

forward-looking we regarding Before legal we attention our to want begin, your draw to disclosure statements.

in filings actual with course which SEC, particular, statements or clinical including anticipated materially differ results events, financial, business, year XXXX, regarding milestones and that of commercialization described fiscal identify statements review the for conference, Report our plans recent past and factors the events Form company the the beyond. to XX-K on made. you XX, this the future those and future forward-looking in During statements ending from will forward-looking and and We make specific XXXX to company’s the December in cause period about strategies risk Annual encourage may the

not find Teligent. replay the Tim? at of conference the You as section at that would Please of be speak at today’s and made time in website of to any the Tim any over call XXXX, XX, call Relations to now May Chief SEC and or Officer Executive note or today, on may database I can only or Investor rereading. the company’s statements the filings transcript of accurate [indiscernible] comments like hand Sawyer, President

Tim Sawyer

I’d Teligent’s quarter you joining on for morning. first Thank of you, call. us earnings Philip. like to And all thank Good XXXX today

our Corporate is Officer call Ernie De this Paolantonio. Legal on and me Officer, Secretary, and Philip Yachmetz; Financial Chief Chief Joining Teligent’s

highly to proved for be quarter period company. productive first The a the

this that readiness quarter expect state track and our efforts morning’s of the guidance are inform sometime we remain in remediation reiterating third of during to we XXXX. the Our on our prior earnings FDA noted as release, on the

receive to pandemic more resume the the about inspection a effects optimistic begin remain of normalized as also pre-pandemic FDA We schedule. the facility can

our you first brief recent pandemic. of with those for I’ll ongoing end efforts join to overview year condition, us respect recent to a financial XXXX For of our Teligent’s response and accomplishments conference who call, could improved our remediation not provide

completed have several improved we’ve the of $XXX financial of arrangements XXXX. effect the transactions sheet Over a as company. of and resulted balance debt last aggregate series The months, dramatically in of that million liquidity our these reduction June since XX, net

the completed company’s agreement financing provide also and liquidity, amended million then lien of approximately credit ongoing $X.X additional We our an an gross of support help equity to aftermarket offering million. second the in $XX.X XXXX, to during raising proceeds quarter first

first quarter the its its ready quarter assessment, With of throughout lenders current to and senior we multiple as of believe readiness execute operational support third strategic XXXX. FDA structure, be initiatives based remediation has XXXX enabling Teligent our will of and informing of the respect on the to XXXX. previously Teligent during inspection into disclosed to investor of capital the the our significantly business partners With and on improved us remainder

manufacturing in COVID-XX of conditions patients the continue maintained that our supply need perform operations Public monitored we to and do order State timing to a site maintain the workplace them, facility, a when for Emergency we However, our re-inspection the to to order Health cannot and products since pandemic, the we the FDA to our re-inspection. Emergency not range FDA time respect control With of will precise in safe predict of during employees. date for the the the

will to restrictions State implementing office process the distance Public in to safe this we during abated, a workspace working the facilities. maintain Emergency Health of time, our Emergency of employees which now are been sanitize and social have have While return non-production and from we protocol continue our that under home

fixing XXXX XXXX, call our in I earnings talent senior half Ernie strengthen conducting today fact, When to us first Consistent level senior of are this Directors. are it story, build quarter note is and help on a positive these of together building quality offices set company In the taken phase that going its – today’s a continued tasked issues. about take call of corporate and friends additional perception today current with with should a momentum socially older Teligent some second undergoing the in the like actions inherited and the Board together from forward. and common we our why in importance so investors appointments distance largely think managers bring is our and control the onto to as I’d to and of advisory new of time the management manner. we sustainable strategic

base restore requisite the warranted to like that one. strategic to several While our over short I’d next and control understand strategy but the we’re appointed and a who so highly our plans expertise asset being solid as to our in enter control over that not ensure management issues and our and To to the ventures. leads fully this financial developing that our approach, is quality proactively invented and and sustained only that quality foundation the we addressing practices of accountability rather, years. we key control building practices importance managed scope to this culture and control, a to a to regrow entire help our By operations the of future lead by doing level we throughout long-term of operational not strategic continuum perception new can the significant our paradigm, systems core new maybe shareholders. is leverage performance success. and a all quality partner short-term laying deliver capability to only sustainable expect is taking absolutely executing team not on of motivated its Central in senior posses value of this trained risk are this efforts clear, in reassure production tactical be do that rebuilding best best the investors business be employees. individuals confined of who of Teligent the to we of quality the as leadership holistic adopt management processes potentially Under so remediation turnaround, view also

Now, to it quarter Ernie first over Ernie? let review me hand of the for financials.

Ernie De Paolantonio

versus in $X.X net first the revenues quarter first comparison in the Thank the of you, XXXX. Cost in good XXXX increased first Consolidated quarter million first the for of and morning. million quarter million in $XX.X of were XXXX quarter of Tim, XXXX. $XX.X of to $X.X million to the revenues

primarily $XX,XXX gross X minus first XXXX technology first percentage in quarter minus of gross decreased by XX.X% improved $X.X of to QX mainly to prior allocations trademark lower charge and recorded The QX year. higher million was impairment million profit offset Selling, $X.X was lower of in However, quarter of light prior of points charge in an the quarter XXXX of in XX.X% related increase XXXX first was negligible also quarter attributable to administrative first volume percentage a in the in general versus sales of XXXX due year. and professional and in in $X.X the erosion profit from price of reserve, increased the fees quarter $X.X expenses and in by The increase contract quarter to in There absorption was inventory first XXXX of million. offset session increase decrease of COVID-XX. the the development impairment to first the XXXX. to and to million costs of due pilot million compared in million the $X.X liabilities increase increase for $X.X Product $XX.X I in first XXXX restructuring and primarily $X.X XXXX. XXXX. by in on $XX.X in The of to turn net personnel first in due an was versus API million change $X.X an first outside $X.X loss. were of decrease million $X.X of as a partially for the of quarter debt exchange expenses the to Tim? a of and derivative one-time quarter product million loss foreign increase of to clinical by quarter testing will in back a acquisition gain now first quarter the $X.X million Net $X.X primarily million due expenses of The net and offset of research studies. compared million in million income expenses increase million costs, to and was batch was the non-cash the an Tim.

Tim Sawyer

Thanks very much, Ernie.

multiple across fourth conference make progress our business. our we on trends steady noted As of continue call, to quarter

on provides condition us and objectives, strategic to financial business initiatives. focused both quality improved added term pursue longer development Our control flexibility

can the of best advisors strengths our to addition, work with the our and how them company are we critically continuing In forward. financial to moving pursue assets and assess we leverage and strategic diligently

provide operator a As time time join look back work are to assessments, call these detailed turn throughout the session. year, to taking we and we activities us for you will to in for the future now that examined. the we And Thank can today. the updates more like to this on I’d being our complete forward when Q&A over the


question first Our Matt of Hewitt from Instructions] Capital. Craig-Hallum [Operator come will from line

You begin. may

Matt Hewitt

for questions. you taking the Good morning. Thank

thinking but regarding how those – events. couple as revenues, as mean, revenues eases, about vaccinations it sequentially, out, appears well? anticipate the I the start grow sequential that pandemic a – should of to Just things we that types growth coming you’re should is

Tim Sawyer

Thanks, Matt.

building be of talked clear provide I about because I’m not should – it. to in XXXX, this going sort and sorry the just new we’re But just we go So have guidance haven’t we to through. and reiterated of we’ll that financial

in in that year. moved for to things top think thinking of a we’re on are revenue be you’re I I So not guidance providing good but – about going this way, terms wouldn’t

Matt Hewitt

a it this from Okay. year something different I aside sequentially How spike or would What about COVID growing you in along those way? lines? from another ask prevent

Tim Sawyer

that us could could – up a the the the about could be think headwinds something I with – headwinds. have we that the some bit pediments obviously – that through identified little headwinds remediation something creep provide that efforts, that’s talked

and what – to to market. obviously we’re we’re doing, of looking products terms back to we’re continue In looking remediate bring

we’re So that. about positively thinking

Matt Hewitt

I as that back then Thank do X%, headwinds. of our about XX% should you magnitude headwind? a that those How mentioned it thinking And perspective? normal erosion one helpful. abate? as will from to you. is mean, envision we that the get price we headwinds That’s you And a being be

Ernie De Paolantonio

Matt, pricing Hi Thanks occurs The of it’s market in with products. Yes. respect generally competitive the price the for erosion Ernie. question. to

of of occurred a think fewer that the field topical. dermatological of I because of fewer tests products lot possibly or done being erosion in the sales

Matt Hewitt

kind – there more improvement how number? Is think to it line? to remediation ago I margin even gross gross nice getting – Okay. then those just the gross a get of it on moving work versus What answer through I’m it can answer profitability revenue margins what obviously is period. a or trying of level weighing some year at a this, at kind And down, level to back comes costs flip are what this margin? where that does Is of that this

Tim Sawyer

It’s Yes. effort, a remediation Matt.

Matt Hewitt

last the late All re-launched all regarding the Okay. that Last or year, one, the cadence some this Thank pulled those are products point into what’s those right. back anticipated for were of at market? getting you. been

Tim Sawyer

Thanks, Matt.

at product product in – this we – of we time. our market with the a For in – have not haven’t products we’re level, not at all back the point

important down remediate, prioritization, way that’s most terms them the to continuing in most in advantageous of then to a the so on obviously to back products company, continuing line. are products the the evaluate bringing versus We and

So a Yes. approach. it’s failed

Matt Hewitt

you. Thank Okay.

Tim Sawyer

Matt, Thanks, much. very Yes.


in I’m queue. And showing Instructions] questions any the further [Operator not

Tim Sawyer

right. operator. Thanks participating. for then We and for All all appreciate really you you listening. Thank it. Thank attending

to soon. the feel of future forward and continue great a I Have looking look the Thanks. work said, Bye-bye. all to we on as positive hard in again day to to in forward talking updating front I that and make As we have progress us. you you


concludes Thank conference you for call. today’s This participating.

now may disconnect. You