Vericel Corporation (NASDAQ:VCEL) Q2 2020 Earnings Conference Call - Final Transcript
Aug 05, 2020 • 08:30 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the Vericel Corporation Second Quarter 2020 Earnings Call. At this time all participants are 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 today, Gerard Michelle, Vericel's Chief Financial Officer. Thank you. Please go ahead.
Thank you, operator. And good morning, everyone. Welcome to Vericel's second quarter 2020 conference call to discuss our financial results.
Before we begin, let me remind you that on today's call, we will be making forward-looking statements covered under the Private Securities Litigation Reform Act of 1995, and all of our projections and forward-looking statements represent our judgment as of today. These statements may involve risks and uncertainties that could cause actual results to differ from expectations and are described more fully in our filings with the SEC, which are also available on our website. In addition, all forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. Please note that a copy of our second quarter financial results press release is available in the Investor Relations section of our website. We also have a short presentation with highlights from today's call that can be viewed directly on the webcast or accessed on our website.
I will now turn the call over to Vericel's President and Chief Executive Officer, Nick Colangelo.
Thanks, Gerard, and good morning, everyone. In light of the ongoing COVID-19 pandemic, we're very pleased with our second quarter results, which exceeded our base case scenario from April across several measures, including revenue, profitability and cash utilization. Total net product revenues for the second quarter were $20 million, including approximately $15 million of MACI net revenue and $5 million of Epicel net revenue. As we'll discuss in more detail, we saw a very strong recovery, as the quarter progressed and COVID-19 restrictions on elective surgeries were lifted across the country. Total revenues, which decreased 23% for the quarter, declined approximately 78% in April and 32% in May compared to the same periods in 2019 and increased approximately 29% in June compared to June 2019.
Beginning in March, we implemented several measures to ensure that we maintained our near- and long-term growth opportunities and that we are in a strong position when we emerge from the initial COVID-19 restrictions. In addition to continuing to manufacture MACI and Epicel and provide case support to surgeons and patients, we also implemented appropriate reductions in discretionary spending across the organization and deferred non-essential capital expenditures. These actions allowed us to partially offset the decrease in revenue, thereby minimizing the impact on profitability, and importantly, allowed us to keep our talented workforce intact to ensure that we maintained operational readiness for what turned out to be a more rapid recovery in elective surgeries than originally anticipated.