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spk_0: in the past and not let someone better demonstrates our culture of teamwork inclusion and results to get to the punch line or businesses performing better than expected and were making substantial progress towards our corporate priorities as powder the details on a minute or let product sales miss quarter with twenty four point eight million the resilience of our portfolio is extremely encouraging and degenerate this result we had made a conscious effort to ship the distribution model for innocent which did impact sales was court has bolstered our confidence in our promotional model and is reflected in our increase revenue guidance for the full year our team is fully committed to delivering on our promised restructuring savings and through a combination of solid execution and creative thinking we've been able to accelerate some of our cost savings all of this has led to a strong operating results in a business this quarter a key focus of a man's writings efforts this quarter has been to mitigate or legacy legal uncertainties you'll see how release and filings that was taken to charge of eleven point three million in our second quarter results this charge reflects an estimate to resolve to separate legal matters unfortunately there's not much more we can say about the nature of the charge we would have liked to have been in a position to provide more details here today but these matters of not come to complete cause at this point and as charge reflects our best estimate at the current time however to avoid any potential confusion some of the news and the press recently these matters are unrelated to the settlements recently announced in the nationwide opioid litigation i do believe it is a strong testament to the strength of business that to recommit asian a prudent expense management and commercial execution were able to still holds from and the majority of our guides range for adjusted the dot despite taking eleven point three million dollar charges quarter that had not been anticipated and any of our prior projections so now that we as built our team accelerated pace of our synergies begun generating operating cash flow reduce the constraints placement business from the debt and made substantial progress in at least defining the legal uncertainty is where we directing are focused towards the business mom that's not only building our platform it also includes business development we've been far more aggressive in the past three months and generating and many targets as you've likely seen from some our appears recently there are transactions available i'm a big believer in actions speak louder than words so i won't say much more we just look for delivering on what we've said and hopefully sooner than later and now i'll turn it all over the paul cool walk through the quarterly results thank you dan this afternoon i will view the financial highlights from our second quarter or twenty twenty one as was the case in the last few quarters any references to perform a results represent product sales as if as i the merger had been completed on january first twenty twenty net product sales were twenty four point eight nine for the three months ended june thirtieth twenty twenty one compared to perform forma that product sales and twenty eight point two million a party a quarter and twenty six point four million last quarter the decline in sales years as a prior quarter on a pro forma basis is driven by lower volume and discontinued and non promoted brands as well as express spriggs volume continue to be impacted by the prior year commercial coverage changed however the current quarter net sales rep like lower patients of them cause which is driving the increase versus a prior quarter and it's and net sales in the second quarter reflected chow inventory and jasmine related to a change and distribution strategy that will drive increase probability in the future
spk_1: the impact of this change with one point five million
spk_0: combine championships are not sales were flat to the prior por overall portfolio net sales were down six percent versus the first quarter primarily due to the one point five million dollar impact of the distribution model change i'm in person absentee to change portfolio motels would have been flat to the first quarter results please refer to our attention for specific product level that sells information
spk_1: adjusted ebitda for the second quarter was a lot of five hundred five thousand compared the income of fifteen point seven million in the first quarter
spk_0: excluding the impact of the twenty twenty one one time legal matters adjusted ebitda was ten point eight million in the second quarter to ten point seven million in the first quarter twenty twenty one are adjusted operating expenses which flagged selling general and administrative expenses and the second quarter were twenty two point eight million versus seven point three million in the first quarter
spk_1: this amount include the legal reserve of eleven point three million
spk_0: as was mentioned on priorities cause a primary focus for the company is to proactively work to mitigate legal uncertainty these innocent little just an alliance with that priority axe looking at twenty twenty one one time legal matters adjunctive operating expenses for the quarter were loving point five million which are down eight hundred thousand or six percent versus the first quarter adjusted operating expenses of twelve point three million
spk_1: in twenty twenty one we expected to achieve forty million of cost savings and ultimately forty five million in annual savings beginning and twenty twenty two
spk_0: through the first half of twenty twenty one and we are ahead of are the cost savings
spk_1: and it's had allowed us to maintain the low end of our even that guy's despite the legal reserve recorded in the second quarter
spk_0: net loss for the second quarter was fourteen point two million compared to the first quarter net income a four point five million as stated previously the current quarters impacted by the legal reserve of eleven point three million in a charge of two point two million for the change and fair value of contains a consideration on march thirty first twenty twenty one her senior secure dead bouncer seventy five point five million which will not mature and tokyo want to twenty twenty four on may third of the company paid scheduled interest and principal a ten million and in cash on june thirtieth twenty twenty one was fifty four point four million the change and cash of six point six million from the march thirty first twenty twenty one pounds of sixty one million this primarily attributable to the principal and interest payment of ten million partially offset by three point four million a positive cash flow generated by the business as we stayed last quarter with the additional cash on the bouncy we're looking to accelerate potential investment than twenty twenty one lastly are updated annual guidance for twenty twenty one is as follows product net sales of ninety one to ninety six million reflecting a favorable response to our refine commercial platform and the actual results for the first half of twenty twenty one adjusted ebitda thirty four the thirty seven million would like the higher revenue and cost savings vs previous expectations and the legal or taken the second quarter overall the once again please with the quarter results we continue to see the positive impact of our product portfolio revenue and lower expenses and either die in cash cashflow looking ahead will continue to focus on our organizational priorities that will help position this area for long term to stay
spk_2: anal growth
spk_0: an hour from the call back over the max
spk_3: you palm operator can we open up but the line for questions please
spk_4: after a think you will now begin the question answer session if you have a question please press chart and one on your touchdown found it are using a speakerphone you may need to pick up the handset first before pressing the numbers once again if you have a question please pass star than one on your touchdown town waiting on standby for any questions
spk_5: and we have oh
spk_4: and looks like that color has dropped i'm nationally any questions at this time
spk_0: okay and to outlook on as i said last quarter results could not have been possible without the great went to my team once again i think you are
spk_6: remain remains committed book reading are you first a cold also like okay
spk_0: up the right address was a priority was to cauterize thank you for joining saturn in and have a good evening
spk_4: thank you and thank you ladies and gentlemen this concludes today's conference i thank you for participating you may now kiss can act
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