Sientra, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Ciantra's fourth quarter 2020 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 on your telephone. As a reminder, today's program is being recorded. I would now like to introduce your host for today's program, Oliver Bennett, Chairman and CEO. Please go ahead, sir.

Thanks, operator. Good afternoon and welcome to the CIENTRA fourth quarter and full year 2020 earnings conference call. I would like to remind everyone that in our remarks today, we will include statements that are considered forward-looking statements within the meaning of United States securities laws. In addition, management may make additional forward-looking statements in response to your questions. Forward-looking statements are based on management's current assumptions and expectations of future events and trends. which may affect the company's business, strategy, operations, or financial performance. A detailed discussion of the risks and uncertainties that the company faces is contained in its previously filed quarterly reports on Form 10Q and its annual report on Form 10K that the company filed this afternoon. Actual results may differ materially from those expressed in or implied by the forward-looking statements. The company undertakes no obligation to update or review any estimate, projection, or forward-looking statements. I would also like to note that Cientra uses its investor relations website to publish important information about the company, including information that may be deemed material to investors. Financial and other information about Cientra is routinely posted and is accessible on the company's investor relations website at www.cientra.com. Please note also that slides that accompany our commentary today can be found on our investor relations website, which we encourage you to review. Today on our call, we have Ron Menezes, Cientra's President and Chief Executive Officer, and Valerie Miller, Vice President, Corporate Controller, and our Interim Chief Financial Officer. It is now my pleasure to turn the call over to our President and Chief Executive Officer, Ron.

Thanks, Ollie, and thank you all for joining us today on our fourth quarter and full year 2020 earnings call. Before we begin the discussion on our strong fourth quarter performance and strategic priorities for 2021, I'd like to first introduce Valerie Miller, our Vice President, Corporate Controller, and Interim Chief Financial Officer. Val joined Cientra in 2017 following decades of experience at several companies, including LinkedIn and Mentor. Given her strong knowledge of our business and financial reporting standards, I have great confidence in her ability to lead the finance team on an interim basis as we recruit a new Chief Financial Officer. I'd also like to take a moment to thank Paul for his role in positioning our company for future growth. He leaves the Entra with a strong balance sheet that will help accelerate our path to revenue growth. I wish him well in his future endeavors. With that, I'll now move on to a summary of our fourth quarter results, an overview of our business, and my vision and focus for the year ahead. Without doubt, the fourth quarter validated our decision to focus on our brass products business. Net sales for the brass product segment totaled $17.9 million in the fourth quarter, not a record quarter representing 40% growth year-over-year and 17% over the third quarter of 2020. Our growth was driven primarily by continued market share increase and overall market outperformance, as augmentation remains strong against COVID-related pressures compared to the overall medical device space and within aesthetics. While market share growth within existing accounts continued to accelerate, We also made incremental progress in opening new accounts. Just in the fourth quarter, we added over 100 new accounts, which we define as an account that has not ordered in the last 12 months, bringing our total active account base to over 1,800 accounts at year end. Our growth validates our share-taking strategy and our confidence that surgeons appreciate our partnership and the value of our products. I strongly believe that our growth is indicative of the success of several elements of Cientra's current strategy. Our goal is to drive further share gains in existing accounts by refocusing our digital efforts, growing RAP productivity, and leveraging our relationships with plastic surgeons. A great example of this happened in a very busy practice in the Southwest area of the US, where Cientra has a 90% plus market share. Our representative was persistent. He leveraged our new programs to access Cientra implants. After the surgeon continued to see very positive patients' outcomes, her pace of using our implants accelerated. He has taken several calls from our sales team, plus support from marketing and our medical affairs group, but after six months, Cientra has now become her leading implant supplier. From a marketing perspective, our approach to patients is to grow awareness and demand for Cientra implants. by widely broadcasting our unique product benefits. Those benefits are focused around Cientra's safety profile backed by our leading Platinum 20 warranty, which our market research tells us is what consumers care about most. Based on the internal data, we have also seen that patients want to know about differences between brands, and once informed, the majority of patients are likely to ask for Cientra by name. Meanwhile, amongst plastic surgeons surveyed, 71% would add a new brand if more patients ask for it. Given the patient's desire for more information and the increasing likelihood of them performing their own diligence, we have relaunched a modernized patient-focused website in January. It is built around our See Yourself in Cientra campaign. Since our web relaunch, we have facilitated thousands of direct referrals to plastic surgeons across the U.S. We have also bolstered our social media presence to reach more patients proactively and educate them on our products. We believe those efforts will continue to grow Ciantra's brand equity amongst customers and lead to more patients asking for Ciantra implants from their plastic surgeons. While augmentation proved to be more insulated from COVID-19 impacts and a key growth driver in 2020, we also view our expansion within the reconstruction market as a significant medium-term driver. We expect hospitals to schedule more elective procedures and conduct more diagnostic testing as the pandemic impact decreases. Despite COVID impact increasing in late fourth quarter and into the beginning of this year, we expanded our presence and gained share within the hospital channel. Ahead of further market normalization in 2021, We remain hyper-focused on expanding our hospital account based by continuing to capitalize on customer interest and the technical differences in compelling safety profile of our tissue expander portfolio, which is grounded by ALX2. We're currently selling approximately 16% of 3,500 reconstruction hospitals. Given our renewed emphasis on data-driven targeting and PFC productivity, which is our sales representatives, We believe we'll be able to expand that number this year and beyond. As a reminder, our 47 PSCs are cross-functional, selling to both augmentation and reconstruction accounts, and we have four additional managers focused specifically on the hospital channel. Our fourth quarter performance, the recent industry trends, and our strategy for 21 provide me with high levels of confidence for the year ahead. In regards to 2021, I have identified three key strategic priorities and growth drivers for this year. First, we'll fuel organic growth within augmentation and reconstruction by growing market share within existing accounts and adding new accounts, while accelerating efforts to be a top two implant and expander company in the US. Second, We increase our focus in innovation and execute on development pipeline for products which will extend or evolve Cientra's core offerings. And third, we establish a culture of focus and accountability and make systematic investments to accelerate growth, drive productivity, and increase margins. Taken together, I strongly believe we are well positioned to meet my goal to become a leader of transformative treatments and technologies focused on progressing the art of plastic surgery. In terms of our expectation for the full year 2021, we currently expect to achieve breast product net sales between 70 to 74 million, representing 27 to 35% growth year over year. We expect mirror dry net sales between 8 to 10 million. Together, we project full 2021 total sales between 78 to 84 million. Relative to breast product business, we are very excited to have started the year in a strong position. Based on our current trends, we expect breast product segment net sales to grow in excess of 30% in the first quarter of 2021 compared to first quarter of 2020. Our guidance does take into consideration our strategic prioritization of our breast implant business over Miradrive. We do continue to consider all options for the Miradrive business as we intend to achieve a break-even point for the segment this year. With that, I'll turn the call over to Val for a more detailed review of our fourth quarter financial results. Val?