Loading...
Docoh

Sharps Compliance (SMED)

Participants
Jennifer Belodeau IMS IR
David Tusa President and CEO
Diana Diaz VP and CFO
Rob Brown Lake Street Capital Markets
Gerry Sweeney ROTH Capital
Kevin Steinke Barrington Research
Brian Butler Stifel
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Greetings and welcome to the Sharps Compliance Second Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] It is now my pleasure to introduce Jennifer Belodeau, IMS Investor Relations. Thank you.

begin. may You

Jennifer Belodeau

morning, quarter Good to Sharps the Thank XXXX and earnings second fiscal call. Compliance you. welcome

On call the while formal Diaz, take call company's today, operations, following will we have David their business company's review participants. Chief Chief Officer. from performance, Officer; questions the review and Immediately the President growth P. will Executive and will President remarks, Diana strategies, we Vice and Financial our David Diana and Tusa, the financials.

make some and uncertainties, factors as may are our release, statements during at at Securities be portion As results this that presentation we you're to differ our risks documents statements as which materially forward-looking the in formal and other factors can future could or in from company of These and outlined as aware, as Exchange earnings are subject where with to well events, found question-and-answer cause by the well website today. apply we the actual filed teleconference. These These the Commission. in Sec.gov. are to

way, that me of the to let ahead with So, over turn the David. Go out call David.

David Tusa

and welcome XXXX conference our second everyone quarter earnings fiscal year to call. morning Good

on distribution the XXXX tripling growth. all XX,XXX markets launched Xst, several Texas customer addition substantial treatment feet second quarter the we results space route-based Pennsylvania September XXXX, March all the allowing to ongoing projects capacity. XXXX, new facilitate an us including essentially critical we as to and mailback well Pennsylvania. uninterrupted service anticipated year COVID-XX in In of this vaccines. pandemic. one And reflect COVID-XX-related of square markets growth million Three, December COVID-XX additional mailback-related in in the completed projects this the as infrastructure X to and throughout was significantly increased country mailback We from the many business, our the of the as of warehouse units Our inventory be of units began to increased XXXX continue These have our manufacture offering. as volume in of continue and medical with in across Americans to which proven billings January immunizes solutions and mailback growth adds autoclave support to in and end treatment customers orders of initiatives our facilities, plan waste by fiscal each XXX,XXX company's and of XXXX. should Two, the to of fulfillment

of the customers with our care $XXX,XXX in addition increase million from $XXX,XXX. as new mailback In or $X in growth this pleased XX% well long-term of business volume second and customers very business, Contributing increase for the significant our the an to we're was increased growth quarter. in route-based to as about billings about

the bullish is We potential growth strong recurring prospects for has believe -- under-served. believe offering we continue revenue be our to long-term a to market prospects we in route-based on greatly which provide

support of our include to the and management. filled the $XX immunization mailback and testing solutions care total orders XXXX Now, in COVID-XX-related earlier we and announced approximately retail mailback for million COVID-XX million this be quarter those $XX long-term primarily advanced waste market. vaccine advanced activity both and the in March Today, orders mailback for month, COVID-XX

economic these the all beginning are management vaccine. United shipped of a status the the to just mailback immunization orders timing country States in COVID-XX should and during quarter, these affect followed received public waste COVID-XX be immunized Americans works March medical the be We COVID-XX activity orders as today by believe additional of could to related XXXX with orders to the health expected are unprecedented the While situation orders. the and

followed COVID-XX a by vaccines we've As to few as later. initial weeks the current immunization a come two booster the understand we involve shots,

second GAAP quarter. generator have in recognized XXXX care, million mailback the mailback as underserved market small Given to booster is of the increase and we additional children, quarter in reach second increase strength variants we compared to prior also particularly in Customer professional, financials same were bit a be docks we With potential of the programs but quarter Again, of to COVID-XX XXXX believe included $XX.X what's for of the that and clinical revenue increased out. retail, our address to be opportunity of a trials. began a pharmaceutical also of for address offer, for $XXX,XXX our adjustment solutions route-based to $XX.X there's billing share. fiscal significant second being we a increase billings sector. with for the believe until just $XXX,XXX quantity XX% December the currently $XX.X March what long-term few million, in an a million further a XX% billings highlights. quarter, of demand XX% we're for and the year in in prior January the The the will the early in healthcare second on for late vaccine quarter eventual the by significant believe and to $X.X as The shots same the this which increase XX%. an vaccines of This from compared quarter quarter the pleased Diana to I medium million compared XXXX. customer news sequential about hearing in more the of not the in roll increase did we're will in hit reported $XX shift detail, year virus, market XXXX to to as Revenue and route-based million XX% customers increase plus driven in first quarter to XXXX. significant want the manufacturer very

as COVID-XX role as on stated is immunization is retail and widely in retail previous through scheduled safe, move on we long-term chains And immunizations Americans expect we XXXX have vaccine role process, a I also begin stated, distributed to balance with a venue and are and more as to have to retail as we occasions the the the believe vaccinations pharmacies play and February. pharmacy care As of will pharmacy the beyond, experts and are as play completion Based it vaccinated. continue a information, and facilities are convenient. published the near significant COVID-XX seen in in key efficient,

XXXX, that stated summer it by be originally or June most like early HHS While extend looks through of likely should will this fall. Americans vaccinated late

infrastructure active now customer have of route-based larger XXXX opportunity XX,XXX and XX,XXX locations, capture at We XX,XXX solid see Our we September the and route-based to partnerships. versus states spans route-based robust among small is our medium XXth at addressing December a population, quantity -- XX% customers, The the our XXst, and XX expanded leverage capabilities, to generators. XXth, to pipeline and convert or infrastructure route-based advantages, strengthened our XXXX. underserved competitive to we particularly work December opportunities and prospects to

been with prospects we're past been on engagement to Our quarters close briefly the on unused have on increased addressing like focused to their operations. prospects. hampered as over the these ability But keenly to see have the impact just I'd touch beginning few opportunities of medications. COVID-XX

were second care and and quarter lower reduction prior government XXst, the XXXX. continued have COVID-XX. down billings $XXX,XXX quarter quarter, envelope sales markets long-term to a or order ended in as due to The MedSafe and to was year focus XX% retail of the takeaway unused During $XXX,XXX prospects in medication December compared the the on XXXX

MedSafe We of long-term continue to long-term and believe care rollout been penetration for has that significant in MedSafe further market. opportunity delayed. The the there are of the care

our vaccines advance which the exciting will the decline revenue, distribution challenges see believe do we the course. and billing have quarter a investments pandemic said, the significant begin that or on multi-shot of viruses. likely increase see Pennsylvania-based in for The traction. the The future, our XXXX. in a Like for a to new believe be the time we to safe address Yes, we March continued With margins revenue its is facilities, treatment December we've navigating As results quarter. medications new corresponding gone COVID-XX. exceptional the temporary deliver and unused of Americans about significant vaccine reflects to in the believe gross needed an believe contributing has the our many related as in a as immunize as we XXXX This see the situation customers in return not to to not will we expected infrastructure opportunity potential medication the in against company. once infrastructure disposal finally, in the levels prospects revenue gained currently business. XXXX foreseeable XXXX increase we virus. two unused quarter meaningful facility, in mitigating crisis infrastructure new the By and estimates program pre-COVID of COVID-XX potential calendar year Therefore, its strength the and is remainder a we various for in crisis. has a $XXX,XXX are support And experts, country invested fighting believe route-based investments opioid expect the factor this away. to any runs We is works key through march focused increasing and Americans normal the the to could for

Diana? before to it take we the I closing it financials. few And Now, to us make questions. after to through to want I'll turn Diana remarks that, over turn over a

Diana Diaz

Thank you, David.

fiscal revenue year. XX% compared quarter increased XXXX $XX.X million second of to quarter Second the last as million, in $XX to

second orders $XX.X as billings $X.X XXXX billings fiscal in $XXX,XXX same of XX% in increased prior $X.X market decrease by billings period. in customer year. quarter medication flu million Sequentially, ending quarter primarily Retail the of XXth million as September in revenue compared The first in XXXX. quarter unused million, COVID-XX-related of quarter grew to the is partially XX% the to to same million $XX.X XX% billings to about year fiscal shot increase a XXXX $XX.X last quarter million of retail the increased $XXX,XXX. second million compared related orders Second offset the $X.X due compared increased to and of of in to

manufacturer which quarter billings year season, XX%, for increase Pharmaceutical calendar flu more the the for million. of billings $X.X a XX% to it ordering shots our $X.X related COVID-XX million, looks waste the increased of $XXX,XXX quarter management their prior administered of programs. So, for the second by inventory business second quarter of to have fiscal the of inventory $X.X XXXX built support related $X.X million in adopted over to primarily care patient year, customers And XXXX volume appear ancillary XX% to flu Long-term about in an fiscal season, was year to million XXXX million the as just-in-time compared of increased billings increased the $X.X and prior compared in increased shot-related the to of fiscal for though flu XX% second level. shot-related XXXX in to supplies. minimized timing related model while the

market fiscal compared December other healthcare as of XXXX This customer clinics, to healthcare the the second last time in of million for compared to surgery shown second quarter of has sequentially labs, $X.X million billings XXXX veterinarians, home to XXXX the period, and quarter of to quarter XXXX billings XX% XX% dentists, million to quarter to to continued $X.X compared second compared have $X.X increases currently prior X,XXX as professional $X.X deployed physicians, and comprised market Professional of fiscal XXXX of to locations $X.X and reopened. which increased XX, XX, pre-pandemic inside compared in the most to period billings and long-term in recovery March of market. Billings the in care period Our and of $X.X the end were and company's as XXXX, centers, market, fiscal units XX% to increased million is pickup at XXXX. million the the X,XXX first XXXX $X.X quarter. the due million X% of contributed to in billings million XXXX. compared to quarter units X,XXX increased the X% $X.X quarter fiscal same year. for providers, second prior the XX% primarily for of about second services fiscal of quarter are sales in same Route-based of as There pickup increased prior million the channel XXst, there at the the September the MedSafe compared and to total online route-based December in grew

of XX,XXX and processed end $XX.X September As X,XXX the we have than X,XXX shot of processed liners order of activity. XX,XXX XXXX. This quarter. quarter to which first processed and MedSafe or total XXXX of the quarter is processed contributed processed year. COVID-XX a XXXX units the the to total billings meet Sequentially is to around December increase in the XX, of XXXX, XXst, XX, for related as versus December quarter, demand about Mailback liners increased higher million market in XX% the we liners, December of X,XXX for XX% prior billings robust vaccination December the activity and the flu XX% XX,XXX

year. in margin quarter, the was margin the timing of of U.S. We mailback the And for unprecedented XXXX during continue demand orders to in and be have affect second heightened the as orders situation and second advance the approximately these March while quarter XX.X% these the David for in to XXXX to as economic the expected be to orders. last million and public filled could quarter XX health see during mailback compared gross XX.X% quarter. are expected are March of status Gross shipped mentioned,

earlier, related to increasing $X.XX the of see and for the the related second revenue million cents which $X.X We to of the do quarter XXXX. compared of in XX% and year headcount quarter to in of With our year. of internal of of that year $X.XX which quarter infrastructure revenue of fiscal in believe begin fiscal quarter income XXXX SG&A any of reported compared income XXXX not XX% revenue X% have is revenues in XXXX and to expected We increase As see support $X.X $X.X SG&A, calendar the to $X.X David of in sales last to revenue recorded increase in marketing. estimates, X% with the in of prior in operating corresponding investments will for of of fiscal compared this first The needed in March generated mentioned approximately XXXX continued increased for second advance million quarter $X.X We The XX% quarter. in of share to of second million expense or additional the consistent company's company income $X.X is SG&A remainder said, invested the significant to compared we XXXX, in same well or by we year. or infrastructure SG&A of or expense. quarter quarter. per we marketing XXXX income $X XX% and million share sales basic revenue diluted of second basic reflecting increased or and million costs in EBITDA the the of million net second per EBITDA last XX% quarter as $X.X as net million operating the of the million diluted or investments

our recently to debt. expansion Paycheck June PPP capacity capital our by or to remains $XX due Days disproportionately plant, December and request for which growth. compared was million of sheet was and outstanding as agreement Property, from upon Coronavirus maturity receivable was in and received on December offset for reflecting of month million. and days, we Act. XX, as to with the CARES part equipment cash XXXX our the balance XXXX. acquisition Accounts $X.X was December XXst, increase extended announced, as as December of XX, $XX.X the in the in is million We fund expenditures facility revenue $XXX,XXX facility The debt June of XXXX $X.X from And $X.X December of million higher XXXX, or the Long-term of at of the $XXX,XXX in solid Texas XX, sales repayment or December secured under to new Our prior our available working previously the autoclave Program in XXXX expansion Act treatment Pennsylvania. of Relief of which million working $X borrowings million DSO end of months XX billings partially $X.X million month quarter. credit support Protection we using the increased XXXX Securities was treatment of XXst, XX,XXX as Economic year's square XX, other capital, XXXX to additional the XX,XXX established Texas includes feet compared $XX and of for Aid million debt the to to million. $X.X that

for Treasury. loan by guidance the Department with Small provided of that, I'll applied Business the our have We forgiveness the back And Administration and under via lender call the this of David. turn to

David Tusa

Thanks Diana.

are Before to call the the significant, while getting over let started the orders just phone as returning closing today comments. of we've a virus. works the do the received me couple country immunize we're believe One, to Q&A, just we Americans make very against COVID-XX-related just

this developed business, our COVID-XX-related the let's XX% pharmacy the the vaccinate retail of utilized we from that in support in moving Our business. of Americans. company And the opportunities syringes the viruses COVID to XX% make revenue will these significantly new business revenue, let's additional, country our last could of the increase and past potential position Q&A. type in in the address that to go existing millions quarterly and significant predictable, right not allows other are the in to the a the look believe experts side the of variants One Many recurring and has space growth growth over pharmaceutical manufacturers leadership be norm turn us with ahead revenue as benefited that, vaccines part management direction be reformulation to it while and boosters or a to With a company. vaccine. for operator, route-based provide larger

Operator

Thank you.

question. [Operator come question-and-answer Please first Lake Capital Our line questions Street with Brown Rob proceed your be conducting session. will Instructions] now from of the We Markets. with a

Rob Brown

morning. Good

David Tusa

morning. Good

Diana Diaz

morning. Good

Rob Brown

that now COVID or able the long How what's of will with long is And activity, how on how that customer? you expect? get for sense be kind your reorders fulfills of for to kind they that much the $XX of, of how orders your demand Question much that? vaccinations actually million you've can received in

David Tusa

it tell estimated to based will this, like information numbers meet through that'll the forecasting we've you talking looks being received March take them about. they're and that I of able Well, that it's upon from our the customers vaccination that and kind

Now, to earlier, even I that But all it's to clear I maybe immunize summer, we're it's as think to predict. country difficult late mentioned going fall after really in again, need early through this pretty Americans. that,

Rob Brown

Okay.

there is the much share growth that your -- how or to like maybe the And that, of starting then And a how was you was mentioned snapback that to of are sort for sense? recovery, in in business, your And of business? share great. you? you on the shifting following gains kind seeing maybe the Okay, was route-based Are is business how look that nice gains look much pipeline new what that loosen segment? up, does for pipeline in sort of,

David Tusa

business Right, and route-based driving no, share gains is gains it's share new what definitely that is business.

think in most I for the-- back September part we've the recovered from

Diana Diaz

last of Right, existing care professional The our a quarter. the market growth customers. lot has recovered long-term was

was a So, route-based. of about third the that

David Tusa

portion the And customers. new been have would Right. of remaining that

have process and far see and that some COVID, going to providing engaged, the focused getting RFPs. the we're pricing a it's on been forward, spoken is are the becoming bit as and active of more and As more that more to delayed, responding I prospects break opportunities because larger route-based have starting

pick start would we up to but to that the quarters. next to So, of hope see it's difficult couple over predict,

Rob Brown

quarter. job Nice Okay. I'll over. the it in turn Thank you. Nice.

David Tusa

Thanks.

Operator

you. Thank

questions questions. with line Capital. of Our your Please come from Gerry Sweeney with next the ROTH proceed

Gerry Sweeney

Hey, taking my morning, thanks Diana, call. David, for and good

David Tusa

morning. Good

Gerry Sweeney

mailback if bit wanted I more we about a talk little could. to

pharmacy of with just how just could whole March, sounded having answer, little at I It touched want a it some a how I want like but One, to see did into much sort in previous changed. into often? larger not visibility you upon of that them? that of and how but certainly see to over your How customers And lot discussions it of like visibility give? you're they time? potentially evolve now your much provide bit think sounds think historically the actually ordering groups can

David Tusa

a have There's number changed. of things that Right.

they probably saw forecasts they've volume we They're didn't back the in to more that July then Some in in us of with they much the warehouse that see. providing flu just and needs see. given And time, June, and well, COVID-XX like through timeframe us vaccine. visibility more season and the apply issues measured what

do have stop COVID-XX to as we earlier, March far, think timeframe. I as like orders will kind not in June as the primarily strong, March. well get as as, difficult the so we're vaccines, that'll mentioned through March But of predict. to looks it them So, I it's be going that the But

Gerry Sweeney

helpful. January? I in you you returns Got That's how has Are of those probably are December, immunization to been it. in I December, -- but some starting starting Got returns et it. on started, some see far And activity you think ship so to cetera? in see believe

David Tusa

the these the slowed a package USPS, Again, by on significant on returns, been transportation than going here really what's in U.S. flu/COVID at going us slower those on the a with looking tell and we systems majority what's think, bit we're been When our come going returns. I'll little at but in what's bit because world. the on. look we they've to what's And back pandemic down the expected, of monitor demands I of and they've

Gerry Sweeney

gears Got bit it. deferred $X.X Diana. then and recognized, may little believe but $XXX,XXX I million that was shipped, a this correct? shifting was revenue is just more not And be for

Diana Diaz

Correct.

Gerry Sweeney

is know, that the Again, carry but that Or is revenue, some does gross that's meaning, -- that quarter? the Little question, margin $XXX,XXX revenue variability guess you in I potentially higher that leaves in same about as margin, in $XXX,XXX. have because-- the nitpicky there that recognized

Diana Diaz

the accounting way that work about similar. about of That’s It's rules same. the it's same. kind It's the is the

So, yes.

Gerry Sweeney

wasn't to side. some from change calls there or Okay, sure want different make were any I either

in I'll it. appreciate I back perfect. line. So, jump

Operator

you. Thank

questions. of questions come with line [ph] your Wainwright. H.C. the proceed with next Dale Please Our from

Unidentified Analyst

morning, Good you taking everyone. Thank for questions. my

David Tusa

Good morning.

Unidentified Analyst

could can a timing. the, growing color this some David; on orders to little provide collection I where from million, you bit XX or the the respect of guess, you are advanced With delays hedging mailback million come some to from? on XX

David Tusa

if of those day. Well, million that by no, mean, March. happen, indications I that all All matter, majority, are XX now ship we think the as out ship we that's right every not out going will to now

think the that should fall confident those of quarter. feel into vast I majority March we reasonably So, -- of that the the majority

Unidentified Analyst

of go we we have the through as if but mailback sequential rest in calendar I these of that know visibility XXXX, Then don't you of expect sort should today, growth level quarters?

David Tusa

real lot not there's maybe that maybe to just It's June have we tell late will robust. fall. there's you them pharmaceutical really is other have to on -- how and early fall quite that a COVID-XX And be going could I that say, shakes booster is We'll But to the tell. to now see mean, that some early just initial you be It's too booster the summer, out. again, manufacturers. will we or right we now think I will March everyone the get by know because and of a just probably variables. strong hopefully these Moderna address that some by a in variants. vaccine, between working And of see of

The be available other till not trials this now children. going conducting for that's year. right probably is And they're thing later to clinical

So, these of reformulations have vaccines. some you potential also could of

time. we I don't that this is think but activity And continue feel I everyone professionals I this last So, be I it's recommend there's think the is think reasonably vaccine kind are period just for believe healthcare uncertainty, of that I of say going some confident -- fall. think shot flu and you're then thing I'll two get to that going going their shots get done. to to

for guarantee, potential get going not booster potential you shot, a a booster, a you the or in weeks, and a COVID-XX shot, for then a maybe see you COVID-XX maybe of a couple wait the flu then weeks few back and maybe fall and it's booster. -- get couple a flu get the you you see So, but a of you

activity lot And to of drive a going be I of all just there's of but think growth. -- a there's in while. for ordering lot a So, this unknown revenue obviously, will

Unidentified Analyst

business, Understood. Right. of forward? strong And And you're acquire maybe you route-based acquired planning routes on comes or pretty on any organically there, of all are again, routes? going sort you this front, then has to that growth have seeing

David Tusa

the and So, route-based difficult. There's this the growth We active stay smaller players that's tell there trying you all I in on COVID, they're organic right opportunities, will busy there. to very now, And business. in identify acquisition market too. are no with growth out the acquisition very,

And so this we to get probably surface. will through opportunities before need acquisition what activity COVID

Unidentified Analyst

Understood. Thank you much. That's guys. all have, I so

David Tusa

Thanks.

Operator

you. Thank

Our with Steinke proceed your of come Barrington Kevin Please from line next with the questions Research. question.

Kevin Steinke

morning. good Hi,

So, the pharmaceutical -- you market. growth talked about the manufacturer strong in the

there? You the bills for bills of that mostly patient about inventory mix we customers should timing said related think to just or for the any existing program, is support are there new in customers

Diana Diaz

December program customer that a programs was We one started new number. pharmaceutical new completely for an One that -- existing in a actually and had that new were was two manufacturer.

So, to the that see we pleased bill. in were

Kevin Steinke

the forward Okay, new opportunities in of great. pipeline What pharmaceutical going about the space?

David Tusa

There's number the we always to -- chasing. a in there, a kind them that predict It's we're to may pipeline of very do. of I think we stuff. that have we're always of as we're definitely chased difficult few chasing when out they get that land, opportunities are but

Kevin Steinke

here. about compared many good. end large to X you've an units completed number by about units additional about curious, manufacturing the XXX,XXX just calendar Okay, talked what you're XXXX. you've experiencing any you support don’t was as like pretty done. And significant you mailback to infrastructure the you the various said a I -- of costs talked -- million as further That I the though, fiscal the seems XXXX. infrastructure growth of rest you think see And for projects

that So, just is any to doing potential really be any amount not costs manufacturing? about? that could should additional bottlenecks concerned provide associated with that just Or we or color something of on

David Tusa

leader pharmacy, That's a you we're doing you vaccine, good of the make you retail We're supply going that shots, Kevin, booster different percentage question. have children's could And It's have consider of then in numbers big, our we number really the the when mailback this some a the a to that there, we're could the number shot, space. get One, ample the in be and in Americans to large. quite good reasons. for throw get question. want sure could or a And it numbers for customers.

always So, by that can If that huge. for to a they million another was follows great, an means as that have be And have we million that XXth. million the use that's we well. -- we're additional fantastic. season if them, not, That building the June season used flu

really as warehouse sell then -- busy. we're So, as cost and the in core. and a Sharps We course, lease in have we're number incremental it. working the our with quite that facility the costs containers is the inventory molds manufacturers inventory all of only own to we capitalized But until that own we that we of of make Pennsylvania additional

And so far, production plan. so on good the

Kevin Steinke

lastly, return forward adjustment know proportionately I quarter related that's called adjustment of And just March in shipping, mailback color. related to in helpful the gap timing I I wanted just with know orders, that's the as about those but and you COVID-related the Okay, going June ask quarter, out I mailbacks the treatment larger related adjustments component the think and should mailbacks? in there's a we to the of well. think that gap about to surge

how here? on thoughts over that next the think about gap adjustment couple any quarters So, we should

Diana Diaz

that you more can't And deferring. mailback on we you're the increases, just becomes the treatment. for sales negative, have how are returned as really It adjustment more that. revenue just quickly Generally, gap predict depends because

David Tusa

that deferred. sell we for when mailbacks, be we quarter, XX% that'll what those But of gets revenue roughly March the like that will

Diana Diaz

Right.

David Tusa

it the XX% future of current deferred in returns. quarter So, it with for think of revenue it XX% as of until the

Kevin Steinke

that's for the right. All great. taking questions. helpful. Okay, Well, Yes, very thanks

David Tusa

Kevin. Thanks,

Operator

Thank you.

of Our Butler with Please line your Brian questions. the come next questions Stifel. from with proceed

Brian Butler

Thanks morning. my Good questions. taking for

David Tusa

morning. Good

Diana Diaz

Good morning.

Brian Butler

First this, that one call just new looks how we going about just pent-up to the XXX, to on a -- period, -- event? don't restart XXX, COVID mean, a I demand mentioned you're I XXXX be to -- XXXX in you this it that? lot XXX does think continues back that know and the month, XXX MedSafe, re-ramp? is MedSafes it slowed grow? going about you rollout how or like is on you're to fiscal mean, installed should go it a to this it there really going a that I Does of and is come had

Diana Diaz

large -- month, December I annual our could benefits program quarter. one into response summer installation thing, for customer their the the they retail during accelerated guess pharmacy that on COVID-related the focus so

decline one impact important after installs because the great that the think in being temporary that's do see come the in would a opportunity to complete. market, and MedSafe So, We them install. there the that long-term is it's timing the back situation a MedSafe program care on is we of vaccination

Brian Butler

tangible? I Okay. that that like a you not not Do achieve? units XXX do it a have target hope to like mean, of or what you quarter is

David Tusa

that the really really It's is disrupted not has ordering the patterns. effect This tangible. in COVID-XX of operations a ordering of change and some

and MedSafe we in heard was the came may have me many, to until long-term the saw on big many way care with our we along. one long-term were selling COVID care in well opportunities You about more talk before of

exactly of sometime the -- be know on just be I virus, going the this until year. think really it's get But to that hopefully, back delayed So, now back don't but right that's certain. difficult track. when, with on uncertainty will I to get

Brian Butler

COVID Okay. bit little you pre-COVID professional still route-based, to then recovering still pre-COVID about the in drove below And and bit levels, you are had much And comeback, you the had quarter mentioned what billings levels, talk segment were light. And you the mean, mean, I on that that professional a little the then I but what a -- great the seemed more route-based they can on between from the how guess professional level? the route-based? of the a -- of the I about disconnect and route-based,

David Tusa

I that, Diana, have do go about we ahead period? think from prior levels, we're in the what back COVID talk the

Diana Diaz

-- Yes, last about a we for $XXX,XXX recovery which used system, large is order had on year. in takeaway hospitals

So, that did recur-- not

David Tusa

recycle, Takeaway

Diana Diaz

Yes, takeaway recycle.

David Tusa

had order we prior not in the recycling, period. this device a single-use reoccur did year that significant The period

Brian Butler

And did in that showed up professional?

Diana Diaz

Yes.

Brian Butler

just makes one on right. That then. All Then Okay. sense. margins

quarter So, XX%. -- you in $XXX,XXX infrastructure if I incremental is incremental the fourth the $XXX,XXX, third that incremental think rolled the second around in kind add this to margins talked XX%, Does back quarter you're margin related in -- back in kind going costs that about think that right quarter, margin, of margins to somewhere here you quarter, where being out almost gross XX% forward. to that way of gross about

David Tusa

Right, $XXX,XXX yes, XX% that going forward. going look way the of it that's at to XX% majority to right and revenue should incremental you forward, for look [Indiscernible] on

Brian Butler

I all Thank you. had. that's Okay,

David Tusa

Brian. Thanks

Operator

at questions further no the over any are like time. closing to There David this you. to would call I Thank comments. back hand for

David Tusa

XXXX. the you look and very year the the our growth loyal We you, opportunities and during only today. you the to next us we'll launch by customers strong of talk we participating you the We Again, and foundation thank strategic beyond. to employees their committed service will close everyone for Thank its to thanking providing and thank to We the forward the pandemic. our in in coming a want ahead to initiatives company believe company for and strengthen in everyone infrastructure, call for and quarter.

Operator

That does conference. you. conclude today's Thank

disconnect may this and your lines a time. Thank You you at day. your participation have great for