Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How long will it take to implement the BMP and standardize operations at Greenbrook sites, and what impact has been observed so far? A: Keith Sullivan, President and CEO, stated that training for RAMs and technicians has been conducted, with ongoing virtual education for providers. Changes will continue throughout the year, with improvements in efficiencies being identified and implemented.
Q: Can you provide details on the revenue guidance of $145 million to $155 million and the expected operating expenses? A: Steve Furlong, CFO, explained that $65 million to $70 million is expected from standalone Neuronetics, with $80 million to $85 million from Greenbrook TMS. The programs need to continue working, but no heroic efforts are required. Operating expenses are expected to be between $90 million and $98 million, with significant cost synergies already realized.
Q: What opportunities exist to improve the margin profile of Greenbrook, and what is the expected impact on consolidated margins? A: Steve Furlong noted that Greenbrook's clinic margins are expected to improve to mid-30s from 27%-28% due to the elimination of underperforming clinics. Consolidated margins are projected at 55%, with ongoing efforts to improve both NeuroStar and clinic margins.
Q: How is the SPRAVATO rollout progressing, and what are the capital requirements for this initiative? A: Steve Furlong mentioned that SPRAVATO is offered in 63 clinics, with 35 capable of buy and bill. The capital outlay is minimal, with infrastructure already in place. Inventory commitments could reach $5 million, but distribution partners offer 120-day terms to manage cash flow.
Q: What is the current productivity level at Greenbrook sites, and what improvements are expected? A: Steve Furlong stated that Greenbrook is averaging four patients per day per system, with expectations to increase to five or six patients per day through training and education. This could add approximately $10 million in annualized revenue.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.