Sientra, Inc. (NASDAQ:SIEN) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 05:00 pm ET


Sientra, Inc. (NASDAQ:SIEN) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Sientra Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

I would now like to hand the conference over to your speaker for today, Neil Bhalodkar. You may begin.

Neil Bhalodkar

Thanks, operator. In our remarks today, we will include statements that are considered forward-looking within the meaning of 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 previously filed annual report on Form 10-K and quarterly report on Form 10-Q that the Company will file with the SEC shortly. Actual results may differ materially from those expressed and/or implied by forward-looking statements. The Company undertakes no obligation to update or review any estimate, projection or forward-looking statement.

Today on our call, we have Jeff Nugent, Sientra's Chairman and Chief Executive Officer; and Paul Little, Chief Financial Officer, Senior Vice President and Treasurer.

I'll now turn the call over to Jeff.

Jeffrey M. Nugent

Thanks, Neil. Good afternoon and thank you for joining this afternoon's call. I'd like to start the call by highlighting the key topics before discussing each in greater detail. First, as highlighted in our earnings release, Sientra had a very strong third quarter across both of our business segments. We achieved record net sales of $22.4 million, which equates to a 33% year-over-year increase. We're also pleased to raise our 2019 sales outlook to between $82.5 million and $83.5 million, which Paul will discuss later on this call.

Second, in addition to these solid quarterly results, we're excited to announce the acquisition of the OPUS breast implant manufacturing operation in Franklin, Wisconsin. Vertical integration is a critical next step in advancing Sientra's strategic objectives, and the in-sourcing of our breast implant supply chain provides numerous strategic, operational and financial advantages, which we will also discuss in further detail on the call.

Finally, we also announced an organizational efficiency initiative designed to simplify operations and reduce spending, ensuring that resources are prioritized on physician and patient-facing activities. I'm confident that these strategic actions and our business momentum position Sientra for continued long-term profitable growth and success.

With that as backdrop, I'll review our third quarter results in more detail. Our entire team is extremely proud of Sientra's third quarter results. The Company achieved record quarterly net sales of $22.4 million, which equates to year-on-year growth of 33%. The quarterly performance was driven by strong growth in our Breast Products segment and another record quarter for miraDry. Total Breast Products sales grew 47%, that's 47% year-on-year third quarter of '19 to $12.6