quarterly cash flow report - osprey 200 1,400 1,600 4q14 1q15 2q15 ... osprey continues to...

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    QuarterlyCashFlowReport

    January24,2018Melbourne,AustraliaandMinnesota,UnitedStatesOspreyMedical(ASX:OSP)todayreleaseditsAppendix4CQuarterlyCashflowReportfortheperiodending31December2017.

    Keyhighlights

    Salesunitgrowthcontinuedin4Q2017,with15%quarter-on-quartergrowthvs3Q2017 123%growthinunitsalescomparedto4Q2016 13thconsecutivequarterofgrowthachieved Leadingindicatorsforfuturegrowthremainstrong,with98hospitalshavingpurchasedDyeVertor

    DyeVertPlusand62hospitalsnowintheevaluation-to-purchasephase Cashreceiptsfromcustomersup7%quarter-on-quartervs3Q2017 StrongbalancesheetwithcashofUS$32mat31December2017(A$41matFXrateof$0.78)

    Continuedunitsalesgrowthandpositivereceptiontonewproducts

    Ospreyreporteditsthirteenthconsecutivequarterofunitsalesgrowthforitsdyesavingtechnologies,withsalesof1,421unitsofitsconsumableproductsrecordedduringthequarter.

    DyeVertandDyeVertPlusunitsalesgrewby11%to1,376unitsin4Q2017,comparedto1,241unitssoldin3Q2017.Thisrepresentsgrowthof116%comparedwith4Q2016.

    ThecompanysnewDyeTectandDyeVertSyringeproductsreceivedapositivereceptionandrecordedsalesof45unitsinthequarterwithalimitedlaunchinonly3territories.

    Inthemajorityofthecompanyssalesterritories,quarterlygrowthwasin-linewith,oraheadof,eachsalesrepresentativesapprovedsalesplan.

    0

    200

    400

    600

    800

    1,000

    1,200

    1,400

    1,600

    4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

    AVERTsales DyeVertsales Othersales(DyeTect,DyeVertSyringe)

    Quarterlyunitsalessinceinception

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    Sustainedgrowthinmultiplesalesterritories

    SanAntonioandAtlantacontinuedtheirprofitablegrowthin4Q2017.SanAntoniosoldmorethan400unitsinthequarter,andAtlantasoldmorethan300units,comparedtotheestimatedcash-flowbreakevenrequirementof225unitssoldperquarter.Bothterritoriescontinuetoseestronggrowthaspenetrationofprocedureswithinhospitalscontinuestoincrease.

    Ospreycontinuestosuccessfullyexpanditssalesforceinotherterritories.Aftersixquartersofoperation,theCompanyispleasedtoconfirmthatunitsalesvolumesinNorthCarolinaandDallas,Texas,havetrackedcloselytothetrajectoryofthepilotSanAntonioterritoryandarebothonasimilarlystrongpathtocash-flowbreakeven.

    TheseterritoriesoffertheCompanystrongconfirmationthatOspreystwo-stepsalesprocess,focusedinitiallyonusingsamplestogainproductacceptancebykeyphysicians,isrepeatableandscalable.

    Salesforceperformancereview

    AllOspreyssalesrepresentativesfollowaclearlydefinedsalesstrategy,theplaybookdevelopedinthecompanyspilotsalesterritoryofSanAntonioandsuccessfullyreplicatedinsubsequentterritories.ThecompanycarefullymonitorstheperformanceofeachterritoryagainsttheplaybookonthebasisofmultipleKPIsandleadindicators.MonitoringperformanceagainstthisplaybookhasalsoenabledtheCompanytoclearlydefinethecharacteristicsofoursuccessfulsalesrepresentatives.Asaresult,duringthequarter,theCompanytookthedecisiontoreplaceasmallnumberofsalesrepresentativeswhereperformancedidnotmeetexpectations.Althoughthechangeinpersonnelimpactedsalesperformanceintheaffectedterritoriesduringthequarter,buttheCompanyexpectsimprovedperformancefromtheminthelongterm.ThemajorityofOspreyssalesterritoriestocontinuetoperformasexpected.

    Stablesellingpriceandstrongcashconversion

    Pleasingly,theaveragesellingpriceoftheDyeVertandDyeVertPlusSystemremainedstableatUS$354,reflectingthestrongcustomervaluepropositionofthesystems.

    CashreceiptsfromcustomerswereUS$476kin4Q2017,up7%quarter-on-quarterunitsalesgrowthvs3Q2017.In4Q2017,salesreachedUS$492kup121%vs4Q2016(US$223k).

    Strongleadingindicatorsforfuturegrowth

    OspreycontinuedtoaddnewhospitalstoitsclientbaseinCY2017,withatotalof98hospitalshavingpurchasedDyeVertorDyeVertPlusmorethantriplethelevelinCY2016.Therearecurrently62hospitalsintheevaluation-to-purchasestagereflectingastrongpipelineoffuturecustomers.ThegrowthofnewcustomersandstrongpipelineofevaluatingcustomersdemonstratestherapidPhysicianadoptionoftheDyeVertSystem.

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    Continuedsalesforceexpansion

    OspreyssalesteamisfocusedonexpandingDyeVertsalesthroughouttheUS.Salesrepresentatives(18)areseasonedmedicaldeviceprofessionalswithatleasttenyearsofprevioussellingexperienceandclinicalspecialists(5)areregisterednursesorcertifiedtechnologists.Salesrepsfocusonopeningnewhospitalsandclinicalspecialistsfocusonexpandingutilizationinnewhospitals.Thissalesapproachallowsforeducationondiseasepreventionandproducttrainingtoensurerapidadoptionandpatientsprotection.

    In2018Ospreyintendstohireandadditional10repsand7clinicalspecialistswherethereisahighincidenceofchronickidneydisease.Plannednewsalesrepresentativestobehiredinthenext90daysareindicatedonthemapbelowinblue,andnewclinicalspecialistsareindicatedwithgreencircles.Thesalesteamisontracktogrowtoapproximately40peoplebytheendof2018,upapproximately75%overDecember2017.

    OspreyMedicalishostinganinvestorconferencecallonThursday25thJanuary2018at11.00amAustralianDaylightSavingsTime(8.00amHongKong/Singapore,6pmWednesday24thJanuaryUSMinneapolis,MN).

    Calldetails:

    AustraliaTollFree 1800558698AlternateAustraliaTollFree 1800809971AustraliaLocalNumber +61290073187

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    HongKong 800966806Singapore 8001012785UnitedStates 8558811339ConferenceIdentification:497791

    Contactdetails:Media Investors CompanyAmandaLoh RebeccaWilson DougSchoenbergBuchanConsulting BuchanConsulting VPofMarketingT:(613)88661210 M:(61)417382391 T:(952)9558230aloh@buchanwe.com.au rwilson@buchanwe.co.au dschoenberg@ospreymed.com AboutOsprey

    OspreyMedicalisfocusedonprotectingpatientsfromtheharmfuleffectsofX-raydye(contrast)usedduringcommonlyperformedangiographicimagingprocedures.TheCompanyscoretechnologiesoriginatedfromresearchconductedbyDrDavidKayeatMelbournesBakerIDIHeartandDiabetesInstitute.Itsproprietarydyereductionandmonitoringtechnologiesaredesignedtohelpphysiciansminimizedyeusage.TheCompanysDyeVertSystemisanext-generationproductthatreducescontrastwhilemaintainingimagequalityinaself-adjustingeasy-to-usedesign.OspreyMedicalsBoardandManagementarecomprisedofexperiencedandsuccessfulpersonnelwithestablishedtrackrecordscoveringmedicaldevicedevelopment,regulatoryapprovals,salesandmarketing,andmergers-acquisitions.OspreyMedicalsadvisoryboardcomprisesworld-recognisedexpertsinheartandkidneydiseases.

    Forward-LookingStatements

    Thisannouncementcontainsormaycontainforward-lookingstatementsthatarebasedonmanagementsbeliefs,assumptionsandexpectationsandoninformationcurrentlyavailabletomanagement.Allstatementsthataddressoperatingperformance,eventsordevelopmentsthatweexpectoranticipatewilloccurinthefutureareforward-lookingstatements,includingwithoutlimitationourexpectationswithrespecttoourabilitytocommercializeourproductsincludingourestimatesofpotentialrevenues,costs,profitabilityandfinancialperformance;ourabilitytodevelopandcommercializenewproductsincludingourabilitytoobtainreimbursementforourproducts;ourexpectationswithrespecttoourclinicaltrials,includingenrolmentinorcompletionofourclinicaltrialsandourassociatedregulatorysubmissionsandapprovals;ourexpectationswithrespecttotheintegrityorcapabilitiesofourintellectualpropertyposition.Managementbelievesthattheseforward-lookingstatementsarereasonableasandwhenmade.Youshouldnotplaceunduerelianceonforward-lookingstatementsbecausetheyspeakonlyasofthedatewhenmade.Ospreydoesnotassumeanyobligationtopubliclyupdateorreviseanyforward-lookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise.Ospreymaynotactuallyachievetheplans,projectionsorexpectationsdisclosedinforward-lookingstatements,andactualresults,developmentsoreventscoulddiffermateriallyfromthosedisclosedintheforward-lookingstatements.

    ForeignOwnershipRestriction

    OspreysCHESSDepositaryInterests(CDIs)areissuedinrelianceontheexemptionfromregistrationcontainedinRegulationSoftheUSSecuritiesActof1933(SecuritiesAct)foroffersorsaleswhicharemadeoutsidetheUS.Accordingly,theCDIshavenotbeen,andwillnotbe,registeredundertheSecuritiesActorthelawsofanystateorotherjurisdictionintheUS.TheholdersofOspreysCDIsareunabletoselltheCDIsintotheUSortoaUSpersonunlessthere-saleoftheCDIsisregisteredundertheSecuritiesActoranexemptionisavailable.HedgingtransactionswithregardtotheCDIsmayonlybeconductedinaccordancewiththeSecuritiesAct.

  • Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

    + See chapter 19 for defined terms 1 September 2016 Page 1

    +Rule 4.7B

    Appendix 4C

    Quarterly report for entities subject to Listing Rule 4.7B Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

    Name of entity

    Osprey Medical, Inc.

    ABN Quarter ended (current quarter)

    152 854 923 December 31, 2017

    Consolidated statement of cash flows Current quarter Q4

    $000 USD

    Year to date 12 Months $000 USD

    1. Cash flows from operating activities 476 1,504 1.1 Receipts from customers

    1.2 Payments for

    (629) (2,252) (a) research and development

    (b) product manufacturing and operating costs

    (399) (1,015)

    (c) advertising and marketing (655) (2,434)

    (d) leased assets - -

    (e) staff costs (2,429) (8,744)

    (f) administration and corporate costs (258) (1,014)

    1.3 Dividends received (see note 3) - -

    1.4 Interest received 70 110

    1.5 Interest and other costs of finance paid - -

    1.6 Income taxes paid - -

    1.7 Government grants and tax incentives - -

    1.8 Other (provide details if material) - -

    1.9 Net cash from / (used in) operating activities

    (3,824) (13,845)

    2. Cash flows from investing activities

    (161) (322)

    2.1 Payments to acquire:

    (a) property, plant and equipment

    (b) businesses (see item 10) - -

    (c) investments - -

  • Appendix 4C Quarter