Sientra, Inc. (NASDAQ:SIEN) Q1 2019 Earnings Conference Call Transcript

May 08, 2019 • 04:30 pm ET

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Sientra, Inc. (NASDAQ:SIEN) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Sientra First Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference is being recorded.

I would like to introduce your host for today's conference, Mr. Neil Bhalodkar. Sir, please go ahead.

Executive
Neil Bhalodkar

Thanks, operator. In our remarks today, we will include statements that are considered forward-looking within the meaning of the United States securities law. In addition, management may make additional forward-looking statements in response to your questions. Forward-looking statements are based on management's current assumptions and expectations of future events and trends which may affect the company's business strategy, operations or financial performance.

A detailed discussion of the risks and uncertainties that the company faces is contained in its Annual Report on Form 10-K that the company previously filed, as well as any updates in its Quarterly Report on Form 10-Q that the company filed with the SEC today. Actual results may differ materially from those expressed in or implied by forward-looking statements. The company undertakes no obligation to update or review any estimate, projection or forward-looking statement.

Today on the call, we have Jeff Nugent, Sientra's Chairman and Chief Executive Officer; Paul Little, Chief Financial Officer, Senior Vice President and Treasurer; and Charlie Huiner, Chief Operating Officer and Senior Vice President of Corporate Development and Strategy.

With that, I'll hand the call over to Jeff.

Executive
Jeffrey Nugent

Thanks, Neil. Good afternoon, and thank you for joining today's review of Sientra's first quarter 2019 results.

I'm pleased to report that we achieved consolidated net sales of $17.6 million in the first quarter. That equates to year-on-year growth of 20%. The quarterly performance was driven by strong growth in both our Breast Products and miraDry segments, and represents a solid start toward our 2019 objectives.

First, our Breast Products segment. Sales grew 14% year-on-year to $9.8 million. I'm extremely proud of this result considering the category headwinds we faced related to media coverage of the regulatory actions in Europe early in the year that carried into the FDA panel meeting in late March. In spite of these factors, our plastic surgery consultants stayed focused and demonstrated strong execution against their targets. I'm confident that we are well positioned to continue this momentum in the quarters ahead.

Sientra's ability to continue to take market share, continue to take market share, is being demonstrated with a strong traction we are achieving from our targeted consumer conversion programs. In the first quarter, our sales force generated sales from over 100 new breast implant accounts that had not placed an order with Sientra in 2018. Our clinically supported, superior safety profile and industry-leading warranty is clearly resonating with both board-certified plastic surgeons and their patients.

Our breast implant supply from Vesta continues to build and we expect a steady ramp throughout '19, as we have previously guided. Our improved supply position has