Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| We believe that the operational improvements implemented will help us run more effectively at a higher output level going forward |
| Good news is that we believe we have moved into 2024 in a much improved state |
| Based on our responses and progress, I am optimistic about what we can do in the coming quarters |
| Regardless, we remain poised and excited to revolutionize the way that subclinical mastitis is treated in today’s dairy market with a novel alternative to traditional antibiotics the zero-milk discard and zero meat withhold claims |
| As we enter 2024, we believe that we have much improved processes and controls in place from the farms through liquid processing |
| That’s nice flexibility |
| But EBITDA during the fourth quarter of 2023 improved by $657,000 in comparison to the fourth quarter of 2022 |
| It sounds like the year is very optimistic |
| This improvement is largely the result of increased production output |
| Improvements made throughout the production process are allowing us to come back into full production |
| But great demand |
| No, fourth quarter was really super strong |
| The backlog is pretty stable, pretty strong |
| I believe it provides a very good summary of our business strategy and objectives as well as our current financial results, a February update was just posted to our website last night |
| Good deal |
| We have worked incredibly hard to address these challenges |
| So we’re making progress and responding to their action |
| But it’s ongoing, so far so good |
| I mean just from looking at it, it seems like the business should do well this quarter |
| And you know what the backlog is, I guess, a good sign at this point |
| We have increased sales, increased auction and sales out our door |
| But it remains strong |
| Well, it sounds good |
| First, with sales – excuse me, while sales were down 6% year-over-year, they were up 30% during the fourth quarter of 2023 compared to the fourth quarter of 2022 |
| Great |
| That sounds great |
| Michael? Michael Brigham Thanks, Joe and good morning everyone |
| Our objective is to meet or exceed this level going forward |
| It’s a very interesting to watch |
| So, thank you |
| Statement |
|---|
| Growth is challenging and we are growing |
| The lower gross margin in 2023 was largely the result of contamination scrap and a lot of fixed costs being spread over lower total sales as we slowed down production output to remediate the production problems |
| However, the FDA notified us in late October that they had refused to review our August submission because of a misunderstanding about where and by whom we intend to have our drug product aseptically formulated and filled |
| It’s a good problem to have, but it’s a problem |
| Second, EBITDA, earnings before interest, taxes, depreciation and amortization, decreased by $2.9 million during 2023 compared to 2022 |
| When we compare the year ended December 31, ‘23 to the prior year, the $3.3 million increase in our net loss was largely caused by the $3.8 million decrease in gross margin |
| Frank Gasker I guess what I’m asking is, like in the third quarter, you had issues that affected fourth quarter |
| 2023 was an extremely difficult year for us |
| So we’ve done two things that might have resulted in a decrease in backlog |
| The contamination events that plagued our production process were harsh and expensive |
| Can you speak a little bit to the Mastitis segment, a bit about maybe the losses that – are they just to be buying kind of with historical losses this year in that segment? Michael Brigham So, you mean like the health economic loss impact to the dairy producer or… Sean Kirkwood So, within the retail segment of your business, I think historically, it’s been around $4 million a year of losses in that segment |
| I would have thought it might have been leveling down by now |
| But that is not a – that’s not a – we got cash burden on that, that scares me at all |
| That’s our most recent contamination challenge is September, but it does affect October shipments |
| I know that’s a little iffy because of the circumstances |
| The contamination events we suffered during 2022 and 2023 were largely the result of our processing more milk than ever before in order to meet increasing customer demand |
| I think there should be some compromise |
| In response to this notification from the FDA, we’re forced to refile our submission in November |
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