Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aurora Spine Corp (ASAPF, Financial) achieved profitability with a net income of $71,000 for the third quarter of 2024, marking a significant turnaround from previous losses.
- The company reported a 21% increase in sales compared to Q3 2023, with total sales reaching $4.8 million, marking the fourth consecutive quarter of over $4 million in sales.
- Gross margin improved to 60% in Q3 2024, up from 59.7% in the same period last year, driven by increased sales of proprietary products with higher profitability.
- SiLO TFX sales grew by 35% from Q2 2024 to Q3 2024, reflecting successful expansion into the pain management market.
- Aurora Spine Corp (ASAPF) has successfully reduced operating expenses as a percentage of sales from 66% in Q3 2023 to 59% in Q3 2024, despite increased commissions and travel costs.
Negative Points
- Operating expenses increased to $2.81 million in Q3 2024, up from $2.61 million in Q2 2023, primarily due to increased commissions and travel costs.
- The company still faces challenges in expanding its sales force, as indicated by the need to part ways with some sales directors who did not meet goals.
- Despite the profitability, the net income of $71,000 is relatively modest, indicating that there is still room for improvement in financial performance.
- Aurora Spine Corp (ASAPF) has not yet received FDA approval for its facet system, which could delay potential revenue from this product.
- The company acknowledges the need to build more infrastructure and increase headcount to support expanded training programs and sales efforts.
Q & A Highlights
Q: Can you speak about the robust sales of SiLO TFX and the addition of new kits? How long will it take for these kits to be deployed?
A: Trent Northcutt, CEO: The TFX sales are expanding, and we are building out new inventory. We are making modifications to the kits to improve them. We are on track with our deliverables and expect to deploy the additional kits throughout the year. We are aiming to reach over 100 units a month with these new kits.
Q: Are you seeing a correlation with the uptick in ZIP sales in relation to the addition of new sales reps?
A: Trent Northcutt, CEO: ZIP sales have opened doors for us in the interventional market. Our multicentre study with ortho, neuro, and pain collaboration has shown strong clinical outcomes, which helps us in marketing and gaining traction among surgeons.
Q: How has the DEXA-C sales gone, and are you targeting the osteoporosis market?
A: Trent Northcutt, CEO: We are seeing traction with DEXA-C, and we have integrated Osteo Onyx technology into our portfolio, which enhances our Hydra System for patients with lesser bone quality. We are focusing on bone density as a key factor in our product development.
Q: Can you speak about your accounts receivables and how you are managing them?
A: Chad Clouse, CFO: We have put a hard push on receivables, hiring an individual dedicated to collections. Our efforts have reduced overdue accounts significantly, and we are maintaining a constant flow of sales and collections.
Q: What is the potential of Osteo Onyx, and how do you see it impacting sales?
A: Trent Northcutt, CEO: Osteo Onyx is expected to add over $0.5 million a month in sales starting in Q1 2025. It is a lumbar screw system that offers advantages in bone adhesion, particularly for patients with lower bone quality.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
