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spk08: Ladies and gentlemen, welcome to the Census Healthcare Third Quarter Financial Results Conference Call. All participants are currently in a listen-only mode. We will conduct a Q&A session at the end of the conference. If you need technical assistance at any time during the program, you may do so by pressing star zero on your telephone keypad. And I will now turn the program over to Kim Golodets.
spk00: Thank you. This is Kim Golodets with LHA. Thank you all for participating in today's call. Joining me from Census Healthcare are Joe Sardano, Chief Executive Officer, and Javier Rampolla, Chief Financial Officer. As a reminder, some of the matters that will be discussed during today's call contain forward-looking statements within the meaning of federal securities laws. All statements other than historical facts that address activities Census Healthcare assumes, plans, expects, believes, intends, or anticipates and other similar expressions, will, should, or may occur in the future, are forward-looking statements. The forward-looking statements are management's beliefs based on currently available information. Census healthcare undertakes no obligation to update or revise any forward-looking statements except as required by law. All forward-looking statements are subject to risks and uncertainties including the continuation and severity of the COVID-19 pandemic and its impact on sales and marketing, as described in the company's Forms 10-K and 10-Q. During today's call, they will also be referenced to certain non-GAAP financial measures. Census believes these measures provide useful information for investors. It should not be considered as a substitute for GAAP, nor should they be viewed as a substitute for operating results determined in accordance with GAAP. A reconciliation of non-gap-to-gap results is included in today's financial results press release. With that said, I'd like to turn the call over to Joe Sardano. Joe?
spk05: Thank you, Kim, and good afternoon, everybody. Thank you all for joining us today. When I last spoke with you in August for our Q2 conference call, we believed that business was starting to get back to normal as we resumed in-person sales calls. and indeed the third quarter and subsequent weeks featured several encouraging events that bode well for continued sales growth. Not only in the fourth quarter, but through 2022, we believe we have turned the corner, and the impact of the pandemic is now largely in the rearview mirror. I am pleased to share with you what we're seeing that gives us such encouragement. First, Our domestic business is significantly improved compared with the pandemic-impacted third quarter of 2020. Q3 revenues of $5.5 million were up 244%, and although modest, we reported our first profitable third quarter in the company's history with net income of $200,000 and diluted earnings per share of $0.01. We shipped 14 systems during the third quarter, including eight premier priced SRT 100 vision systems. This growth reflects our abilities to effectively describe the attributes of our superficial radiation therapy systems for the treatment of non-melanoma skin cancer and keloid scars. As we continue to educate our market on the new CMS reimbursement schedules, made available to SRT treatments effective January 1, 2021. Our stale staff is at its best when we are able to discuss these attributes directly with prospective customers, and in-person demonstrations and physician visits we were able to conduct made a huge difference. We are highly encouraged by the reception of our fair market value lease program that has been received to date. Our physician customers are beginning to take advantage of this offering and its ability to provide a positive ROI for the SRT100 vision by treating just two patients per month. Recall that the vision has many features that make premium attractive. Along with image-guided ultrasound capabilities, the vision includes Sentinel, a powerful IT platform that provides census, with the opportunity for remote diagnostics while providing customers with asset management capabilities as well as HIPAA-compliant patient data collection. With respect to improved reimbursement, our organization has done an excellent job in articulating the new CMS reimbursement rates that went into effect at the start of the year, along with the benefits of SRT to a growing number of physicians. This has led to improved patient volumes at customer sites as well. Recall that CMS issued new reimbursement amounts for CPT treatment codes, ultrasound coding for the SRT100 vision system, and E&M codes. The combination of these higher values provide SRT users as much as a 55% increase over the reimbursement amounts of the past several years. Compound this with significant reductions in Mohs surgery and related biopsies, our SRT technology provides a strong financial argument complementing any dermatology practice. Note that we continue to see increasing volumes for SRT systems installed at customer sites, owing not only to the higher reimbursement codes, but because SRT became so much more prominent in the midst of the pandemic while surgeries were held to a minimum. We believe this positive shift resulted in a best practice towards SRT and will be a permanent fixture in the dermatology process. We were so excited to be live in Las Vegas last month at one of the most prestigious gatherings of dermatologists, the Fall Clinical. Our SRT systems were well received as our special group of KOLs provided very positive presentations for SRT's impact on treating non-melanoma skin cancer and keloids during COVID, along with the new reimbursement values for our codes. The venue provided us with an excellent platform to demonstrate our product offerings to more than 1,200 practitioners in person and more than 500 virtually. This is always an important trade show for us, but because we had the opportunity to demonstrate our technology in person for the first time in almost two years, the excitement was palpable. Interest in our products and the number of new sales leads both were very robust, with excellent foot traffic at our booth on the trade show floor. We have assembled an impressive roster of leads for follow-up in the coming months, and we were very excited about the potential conversion of these leads into customers. In addition, new and updated data on the safety and efficacy of superficial radiation therapy as well as image-guided SRT and discussions of improved reimbursement supported our presence. In particular, a session titled New and Future Innovations in Dermatological Care was led by a panel of key opinionators, Dr. Brian Berman of the University of Miami Miller School of Medicine, Dr. Mark Nestor of the Center for Clinical and Cosmetic Research and the Center for Cosmetic Enhancement in Aventura, Florida, Dr. Michael Gold, founder of Gold Skin Care Center and clinical assistant professor at Vanderbilt University, and Dr. David Goldberg, founder of Skin Laser and Surgery of New York and New Jersey, clinical director and professor of laser research, Department of Dermatology at New York's Icahn School of Medicine at Mount Sinai. International sales continue to be promising, in particular in China, where we engaged a new distributor partner late last year. During the third quarter, we sold another SRT system in China, our sixth of the year. We expect to sell additional systems in China in the coming months. Importantly, early in Q4, the Chinese Health Authority renewed our license to market the SRT100 system for an additional five years. This new license runs through December 2026 and covers the sale of our superficial radiation therapy to treat non-melanoma skin cancer and keloids. Recall that China is an important market for our products, accounting for 20% of the world's population. The indication for the SRT100 to treat keloids, which we received in 2017, is of particular interest to women and their physicians to prevent and treat keloids following cesarean section. We currently have 46 systems installed in hospitals throughout China. We also are expanding our focus to India for further international growth and are hopeful to record our first sale there in the near future. In addition, we're finalizing plans for a new distributor in Taiwan. Research work with Sculptura continues at Stanford. Although delays in hospital market due to COVID have stalled development, we believe that research to support various oncological indications will resume by the end of the year. and the resumption of Sculptura sales will begin towards the end of 2022 once clinical data becomes available. We are pursuing new indications for our SRT systems as well. As you know, during the first quarter, we shipped the system to Holy Name Medical Center in Teaneck, New Jersey, as a pilot program in the use of SRT to treat the lungs of COVID-19 pneumonia patients. The hospital has used the system on several patients to date and plans to prepare a paper for publication. While we are thrilled to help play a part in the treatment of recovery of COVID-19 patients, note that this program is out of our hands and is completely managed by Holy Name. We'll certainly report back to investors when this paper is published, and we can't put a timeline on it as the availability to treat COVID patients is at an all-time low, thank goodness. We will continue to pursue collaboration with interested institutions who believe in our low-dose radiation solution for COVID-19 patients. As a reminder, in evaluating this opportunity, history showed a very successful approach to treating pneumonia with radiation going back nearly 75 years. Our SRT systems are well-suited for COVID-19 because they are portable and allow for bedside treatment in the ICU. Another indication for SRT is in the veterinarian market. Earlier this year, we shipped an SRT system to Colorado State University Veterinary School and announced the first treatment on a canine. CSU is continuing to treat cats and dogs and is now preparing to begin a treatment protocol for horses. Tumors are common in horses, and the use of SRT, especially around the eyes, is a promising therapy. We hope to report data from CSU at some point in the near future. As you know, we've expanded our operations into aesthetic laser business. The strategy behind the acquisition of mobile aesthetic laser companies last year in the formation of Sensors Laser Aesthetic Solutions, or SLAS, were smart steps to increase our customer base, provide a beachhead for further acquisitions, and improve access to laser technology. The integration of our Sentinel IT solution software into our proprietary lasers is complete, and these lasers are now available through SLAS. We implemented creative rental and leasing options for our lasers, and believe the combination of Sentinel technology, which provides asset management and HIPAA compliant patient data and storage capability, and also contains a software to support shared service models, including direct patient billing, is an important avenue for growth. We also have been actively evaluating an expansion to our mobile aesthetic laser business beyond Florida via strategic transactions and geographies where we have an existing SRT customer base. In particular, we see Texas, Georgia, and Arizona as top prospects to roll into the SLAS division. Over the long term, we expect SLAS to become a meaningful source of recurring revenue. Before I turn the call over to Javier to review our financial results in more detail, I want to impress upon you our optimism for the rest of the year. The resumption of significant sales following peak pandemic months and a robust backlog of orders, along with the keen focus on expenses, positions census for a profitable fourth quarter and full year. With that, I turn the call over to Javier. Javier.
spk01: Thanks, Joe. It's a pleasure to be speaking with all of you this afternoon. As Joe mentioned, revenues for the third quarter of 2021 were $5.5 million, and this compares with revenues of $1.6 million for the third quarter of 2020, which was adversely impacted by the start of the COVID-19 pandemic. Revenues for the 2021 quarter reflect the sale of 14 SRT systems, including eight premium SRT100 vision systems and one SRT100 system shipped to China, as well as service contracts and our new mobile laser business. We're cautiously optimistic that the worst of the pandemic is behind us, although we're watching the payments in some of our targeted sales areas for any impact. Cost of sale for the third quarter of 2021 was 2.3 million compared with 0.9 million for the prior year quarter. The increase reflects higher sales during the 2021 quarter. Gross profit for the quarter of 2021 was 3.2 million or 57.9% of revenue. And this compares with gross profit of 0.7 million or 41.5% of revenues for the prior year quarter. The increasing gross profit was primarily driven by the higher number of units sold in 2021, service revenue on installed units, and the impact of COVID-19 on the 2020 quarter. Selling and marketing expense for the third quarter of 2021 was $1.2 million, up from $1 million for the third quarter of 2020. The slight increase was primarily due to higher commission expense. General and administrative expense for the third quarter of 2020 was $1.1 million, compared with $1 million for the third quarter of 2020. The increase was primarily due to higher stock compensation expense. Research and development expense for the third quarter of 2021 was $0.7 million compared with $0.9 million for the prior year quarter. The decrease was due to lower spending as the Scultura project entered the production phase during 2020. Our net income for the third quarter of 2021 of $0.2 million or $0.01 per diluted share compares favorably with a net loss in the prior year's third quarter of $1.7 million or $0.10 per share. Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation, amortization, and stock compensation expense, was positive $0.5 million compared with a negative $1.5 million in the third quarter last year. I will briefly review our year-to-date financial results. Revenues for the first nine months of 2021 were $40 million, compared with 4.5 million for the first nine months of 2020. The 211% increase was primarily driven by higher number of units sold in 2021. Service revenue on installed units and the impact of COVID-19 on the 2020 period. Cost of sales of 5.9 million for the first nine months of 2021, compared with 2.5 million a year ago, The increase was due to higher sales in the 2021 period. Gross profit for the first nine months of 2021 was 8.1 million or 58% of revenue compared with 2 million or 45.1% of revenue for the first nine months of 2020. The increase in gross profit was primarily driven by the higher number of units sold in 2021, service revenue on installed units, and the impact of COVID-19 on the first nine months of 2020. Selling and marketing expenses was $3.5 million for the first nine months of 2021, compared with $4 million for the first nine months of 2020. The decrease was primarily attributable to lower threshold expense due to cancellations related to COVID-19, reduced marketing activities including travel, and lower salary and benefit expenses due to reduced headcounts, partially offset by an increase in commission expense. General and administrative expense was $3.5 million for the first nine months of 2021, compared with $3.2 million for the prior year period. The increase was primarily due to higher legal and professional fees, public company expenses, and insurance premium costs. Recession development expense for the first nine months of 2021 was $2.3 million, compared with $3.3 million for the first nine months of 2020. The decrease reflected lower spending as the Scultura project entered production phase during 2020. Net loss for the first nine months of 2021 was 1.2, or a loss of 7 cents per share, compared with a net loss of 7.9 million, or a loss of 48 cents per share for the first nine months of 2020. Adjusted EBITDA for the first nine months of 2021 was a negative 0.4 million, compared with a negative 7.1 million for the first nine months of 2020. Turning now to our balance sheet. Cash and cash equivalents as of September 30, 2021 were $16.4 million compared with $14.9 million as of December 31, 2020. The company had no long-term debt and $0.1 million in outstanding borrowings under the COVID-19 Paycheck Protection Program as of September 30, 2021. We are confident that with our ongoing attention to expense management, along with the current cash and access to our existing revolving credit agreement, we continue to be financially well positioned to support our expected growth for the remainder of 2021 and beyond. As a final comment, please see the table in the news release we issued earlier today for the reconciliation of GAAP to non-GAAP financial measures. With that, I'll turn the call back over to Joe.
spk05: Thank you, Javier. Our third quarter results reflect the dedication of the entire census team, and I am so very proud of the way all pulled together during the pandemic to keep our company going, knowing that our products are so important to the health of so many. We kept the census name in front of our customers, being helpful to them in whatever way we could while the world stood still during the pandemic. We've now hired back the vast majority of our pre-pandemic sales team, and it's a testament to Census that we have been able to backfill our sales team to pre-COVID numbers. We have plans to expand the sales organization to support the opportunity we face. Each quarter, I remind you that our products have enormous room to grow. Our SRT systems are well-positioned in a large market consisting of some 14,000 dermatologists and 1,000 Mohs surgeons in the U.S., representing more than 7,500 offices and growing, not to mention a further 6,500 plastic surgeons and 5,500 radiation oncologists. Our SRT systems provide a compelling alternative to surgery for millions of patients and arguably the only solution to prevent the recurrence of keloids following surgical excision. Before we open up the call for questions, I want to mention that we were delighted to be invited to participate in the 12th annual Craig Hallam Alpha Select Conference being held on November 16th. This is a one-on-one and small group meeting virtual format. Later, to kick off the new year and as a sign of recovery, we expect to be participating in one-on-one meetings with our investor relations agency LHA in San Francisco concurrent with the J.P. Morgan Healthcare Conference the second week of January. I hope to meet with many of you in person there. With those comments, I'd like to thank you for your time and attention. And now, operator, we're ready to take questions.
spk08: All right, ladies and gentlemen, at this time, if you have any questions, you may join the question queue by pressing star 1 on your telephone keypad. Again, that's star 1 on your telephone keypad to join the question queue. And it looks like our first question will come from Alex Nowak. Alex, your line is now open.
spk09: Hey, good afternoon, everyone. This is Connor. I'm for Alex. Thanks for taking the questions. You know, my first question kind of revolves around reimbursement. With the recent payment fee schedule published, were there any changes that we should be aware of that would, you know, have an impact on your reimbursement for the SRT system?
spk05: None. What they published on the 1st of January usually goes for the entire year. So until there's any indications to changes, they usually give forewarning to the people about changes. They just don't do them arbitrarily overnight. So there has been no indications and we don't see anything forthcoming.
spk09: Sure. Okay. And then, you know, on the mobile laser business, you know, it's kind of integrated into Florida now. Can you share any progress that you have about integrating that into new geographies and what we should expect to hear in 2022?
spk05: Well, we have a very nice model of providing services to a huge customer base of over 400 physicians that are renting these lasers on various levels, being daily, weekly, monthly, and annually. And so those customers had to recover during the COVID pandemic, just like everybody else, And we're starting to see that business rise. So how we want to integrate, we want to approach operators in these other cities that we mentioned and surround our existing customer base with an operator that is servicing a larger customer base on a rental basis. So again, like I've mentioned before, we're not looking for the biggest, but we're looking for the best operators. along with their customers that have the longest tenure, the longest relationship. So we feel that integrating them into our program in those areas can provide us with a nice roll-up opportunity of these operators throughout the country. Sure. Thank you. Thank you, Connor.
spk08: All right. Looks like our next question will come from Anthony Vendetti. Anthony, your line is now open.
spk02: Thank you. Joe, I was wondering if you could just talk a little bit more about the conference you just attended and, you know, the physician response. And is that a conference where you can actually take orders, and if so, were any recorded at this particular conference, or is that more at AAD?
spk05: It's more at AAD, but this was, for us, it felt like a homecoming. It was the first meeting in two years. You had a dermatology community that is very, very close, all come to the fall clinical. I would say that the majority, 60% of the physicians that came, came from mostly the central part to the west coast of the country. So we were very excited to see everybody. We had KOLs that made excellent presentations, and it was the first time that you could make a presentation live talking about what the new reimbursement codes were all about and how it significantly impacted, you know, skin cancer patients. So we had, there were regular panels that were headed up by the doctors that we mentioned, and then there was a full panel in an evening session where we had the original session was about, I would say, 700, 800 people in the room, and then specifically for a dessert session that lasted about 10, 15 minutes as a follow-up, we had a panel of all those doctors talking to about 80 to 100 docs that were keenly interested in the product. So we're excited. Most of those customers, if not all of them, came by the booth. We have several prospects that could close before the end of the year based on what we have from that meeting. We have our salespeople working on them now. And I think the combination of learning about the reimbursement codes along with the new coding that is being used and the fair market value lease really, really helped us distinguish ourselves from previous years and talking directly to the doctors as we've been doing one-on-one with our salespeople going around. So having that many people in one room listening to the same thing all at once was a real help for us.
spk02: Okay, great. That's a good call there. And then can you talk a little bit more about the aesthetic laser business, your expansion there? Obviously, we know about the two mobile units that you purchased last year. Can you tell us if that business has picked back up and what your plans are there?
spk05: Yep. Well, that business, we're seeing an organic growth with that business coming back because the practices are coming back and the doctors and their clinics are seeing a lot more patients than before. So we're seeing two types of customers now. The regular customer that we had before that rented on a regular basis, and now the customer's that are seeing an overflow of patients coming to their offices that don't have the existing capacity, even though they might have some existing equipment. They need the systems for excessive capacity that we're seeing. So implementing our products now into that field is going to help physicians get to know our products a whole lot better and getting to know and understand what Sentinel can do for their practices because of the ability to store patient data automatically on the cloud and retain that information for future references when these patients come back. Because let's face it, most of these patients are repeat customers. They come back on a regular basis, whether it be quarterly or whatever, for maintaining the look that they want to maintain. So having access to that data at any time or at the touch of their fingertips, and even more importantly, being able to bill those patients At the moment that they receive that service, whether it be from a credit card or from their bank account, they get that money before that patient leaves the office, which is a huge advantage for the customer as well. So we're starting to see that business pick up quite nicely. And I think that for us, one of the challenges that we had, we have new products and we have no place to go with the new products. None of the shows were live. It's difficult to bring these new products when you're breaking in. This meeting will be helpful. We have the South Beach Symposium, which will be more of a local Florida show, if you will, in February. And then we have the AED in March. So we've got some soft introductions of these products directly to the consumer who wants to buy. And we still have an opportunity to provide these products to about 400 customers in Florida who are looking to rent. So we're exposing the products. little by little, and I think that we'll grow from there.
spk08: All right. Looks like our next question will come from Ben Hainer. Ben, your line is now open.
spk03: Good afternoon, gentlemen. Can you hear me all right?
spk05: Are you loud and clear, Ben? Thank you.
spk03: All right. Thank you, guys. So you mentioned earlier the backlog of orders. You know, are you waiting on anything, you know, supply chain related, or is that just you know, quantity of orders type of thing? And then if you could kind of characterize it in terms of, you know, how quickly you might work through that backlog, you know, any visibility that you can provide there would be helpful.
spk05: Sure. Sure. I think that the end of Q2 and the start of Q3 and all during Q3, we received excellent feedback from the prospects that we were talking to. and from our main customer and so on. With putting all of those things together, we started picking up backlog orders and we had to provide additional orders to our manufacturer to develop and to build more units. We know that there's a leeway to getting all of the components that we needed. It's far and above what we thought we needed for the entire year to begin with. We wanted to see the market reaction, but we're seeing the market reaction, and I can safely say that we have backlogged products under contract that are being built as we speak to be delivered well before the end of the year so that we can recognize revenue. And that's why we have this confidence level of saying that we will be profitable for the year because the numbers are already there, the orders are already in.
spk03: Okay, that's helpful. I mean, and, you know, I'm not trying to throw stones or anything, but, you know, is there a possibility that you have visibility into Q1, you know, not because of slippage reasons, but just because the backlog is, you know, of a size that would necessitate it?
spk05: Well, I'm glad you asked that question, but I can tell you that Javier and I have been very active over the last couple of days, and we're starting to gain more insight as to what we'll have for Q1. And, you know, although I'm not prepared to talk about Q1 at this point, I think that we'll be very clear on what we're going to achieve in Q1 as we finish out Q4 and the entire year for 2021.
spk03: Okay, so it sounds like going forward you may even have – well, you may have quite a bit more visibility, you know, barring reemergence of a COVID variant or whatever than you've had in the past.
spk05: Is that fair? Let's put it this way. The market is reacting post-COVID, and in order to stay ahead of the supply chain problems that exist, not that we're experiencing any, but in order to stay ahead of it, I think it's even more important for us and our customers to realize that there could start seeing leeway or some time in between the time we manufacture or get the order, manufacture, and deliver. So that's all a good problem to have, and we're putting pressure on the system to deliver what we're getting.
spk03: Okay, great. That's very helpful. Lastly for me, you mentioned the – distribution partner in China and it sounds like things are going pretty well there, but could you also give us more color and then curious about the new distributor in Taiwan, what do you see that market looking like? Is there kind of a reimbursement already in place or any characteristics that you could share would be helpful.
spk05: Okay, well, you know, we're very, very happy with the way we're handling China. As you know, our new VP of international sales is a Chinese national who's an American citizen who works very, very hard and is very knowledgeable with 16 to 20 years' experience in the international market and very well connected, particularly in China. So our distribution partner there is an excellent one. We see them progressing with technology. some of the trade shows and some of the internet exposure that they're providing to our product and our technology, and we're seeing some additional signs that we'll be able to deliver some more products there in the fourth quarter. They suffer the same things that we see here in the US in that the government-owned hospitals, of which those are the majority, are under a lot of pressure because of COVID problems that are happening there. Their numbers are not as low as us, okay? They continue to experience problems. But the private healthcare market is very, very active and has an opportunity to really capitalize on everything that's going on there. So that's where we're seeing a lot of our business coming from, is from the private sector, and we're very excited about that. Now, even though that's just a fraction of the entire business in China. It's a big business, probably as strong as we have here in the United States. It's stronger because of the numbers. So we're very excited for those opportunities. The other thing is in Taiwan, I'm not going to talk a lot about it because we're about to sign up the distributor there, but there's no barriers to market there with regard to what they can use it for, and any of the clearances that we have. We already have the clearances in Taiwan, so it's just ready to go and to sell. How big is that market? I don't anticipate it to be as big a market as the US. I would maybe say that it's something that we could get anywhere between one and five systems a year, which will take all day long. So we're very excited to break into Taiwan.
spk03: Excellent. Well, thanks for the call there, gentlemen, and that's all I have.
spk08: Thank you, Ben. All right. Looks like we have a follow-up from Anthony Vendetti. Anthony, your line is now open.
spk02: Yes, thanks. Just internationally, Joe, I was just wondering if you could talk a little bit about China. I know you have a new distributor there. How that's been going, any color there, and then a little bit on your expansion into India. Any comments there?
spk05: Yep. Sure. Like I just previously mentioned, I think that we're going to sell some more units into China, so we're excited about that. I don't know exactly how many, but I think that we'll have a few Q4 sales that will go into China. The Indian market, we have been opened by the Indian government to be able to sell there. We've identified one or two distribution opportunities, which we will pursue and probably continue sign up in the fourth quarter, which will give us an opportunity to start selling there in the first part of next year. But that is a very, very big market. There's a huge private health care segment in their health care business overall, and that's the side that we'll probably be able to penetrate the most.
spk02: Okay. Just lastly, any update on Sculptura and in terms of the pipeline there, and then I'll hop back into you.
spk05: Sure. Things are going very well with our friends at Stanford. They are taking the lead. They are working on their protocols with their investigational review board. They will establish those protocols. Hopefully they'll be made very apparent very, very soon to us. And I think that at some point in the first quarter, they're going to start treating patients. And which means that we should start seeing results or information regarding the results and treating those patients around mid-year next year. And I'm anticipating maybe a sale or two by the end of next year.
spk02: Okay, great. Thanks so much. Thank you.
spk08: All right. Looks like our next question is from Yi Chen. Yi, your line is now open.
spk06: Thank you for taking my questions. Do you expect to experience any supply chain issues related to manufacturing of the components or logistics?
spk05: We've been very aggressive and outward with all of our suppliers beyond our manufacturer distributor. We go directly to the source. So far with everything that we've talked to them about, they don't see any problems with any of our supply chain and being able to provide us products for what we need to deliver this year as well as going into next year. So it's not to say that there won't be, because as one of the CEOs of one of the big companies told us, he said, we feel very comfortable. We're going to deliver everything to you. But every time you ask for something, you never know if something pops up from one of your suppliers. But we have plenty of suppliers backing up our original suppliers so they feel comfortable. So if they're comfortable, I can only relay that information. And we also feel comfortable with our manufacturers. So we feel that we're going to get the products out that we need to get out this year.
spk07: Got it. And just to clarify about the clinical data from the studies,
spk06: with Sculptura. So we are not, we should not expect any clinical data to be released this year from the University of Pennsylvania? No. Okay. Thank you.
spk03: Thank you.
spk08: All right, ladies and gentlemen. Once again, I'd just like to remind you, you can press star 1 on your telephone keypad if you would like to join the queue. Again, that's star 1 on your telephone keypad to join the question queue. And it looks like our next question will come from James Terwilliger. James, your line is now open.
spk10: Okay, thank you. Joe, can you hear me?
spk04: I can hear you loud and clear, James. How are you?
spk10: I'm doing well. Congratulations on what I think is a great quarter and some extremely positive tone. It's nice to see things get back to normal and open up. Most of my questions have been answered, but the one we just had on the supply chain. But here's another way to look at that. With the reimbursement that you've had out there and kind of the success that you're having, I know a lot of companies are trying to slowly increase pricing. Has there been any change in pricing as you look at this SRT technology and the model and any change of that going forward in terms of the pricing?
spk05: We haven't made any major announcements or anything like that, but our pricing has slowly creeped up over the last year, year and a half. So you're starting to see our average selling prices for the various products increasing significantly. I would tell you that three years ago in 2019, average selling price for the SRT100 or SRT100+, which was just being announced, was somewhere between $195,000 to $200,000. The price for those products right now are somewhere in the $205,000 to $210,000 range. And the pricing for the Vision product has creeped up from $370,000 to $380,000.
spk10: Fantastic. And excellent. My second question really is on the sales force. And I know a lot of people are trying to hire sales and a lot of people are having a tough time with hiring people. You know, there's an employment issue, wages issue out there. Could you remind me, you know, as you've kind of navigated COVID, what is the current sales force and how do you see any changes to that sales force in terms of headcount as you move into the fourth quarter and then into 2022?
spk05: Yeah, our total sales and marketing force is 20 people. We want to increase it by four. There's a lot of people that are out there looking for work. The difference is these days is making the right decision on the right people because there are so many candidates. and there's a lot of people that want to come from our industry that want to come to Census because I think they're seeing a growth in our company, and we're advertising a growth because we want to bring on the good people, but the process of interviewing is taking a lot longer because there's just so many applicants, and like I said, we don't want to leave anybody behind. We want to make sure that we get the right people on board, and so we're looking for all the... The Sidney Crosby's and Mickey Mantle's out there.
spk10: Excellent. I think the Penguins play the Flyers tonight, actually. I'll be watching that as I'm writing your note. But I think your note's going to write itself. Last question. I'm a big fan of the installed base. I think that's a huge intangible asset certain people miss. Could you remind me again of what is the current worldwide installed base?
spk05: Yep. We're at 529 right now, and I will say that we'll be well over 550 by the end of the year.
spk10: All right, fantastic. Thank you. And again, congratulations on a very, very good quarter, not just a good quarter, but a good quarter during very, very difficult and challenging times. Oh, I've got one more. One more. I'm sorry. I lied. Did you see much of a slowdown with the Delta COVID variant in terms of your operations in Florida and Texas? And where I'm trying to go is these are good numbers. I guess my question is, could they have been better? Did you see anything with Delta impacting their operations?
spk05: It didn't really impact us that much, and partly because as of this moment, my understanding is that Florida has one of the lowest numbers of COVID patients out there. So whatever that spike was, we recovered very, very quickly. Those patients that were numerous numbers from 19 to 35 years old that weren't vaccinated for whatever reason got healthy very, very quickly and are out of the hospital, and the numbers in the hospitals are very low these days.
spk10: All right, fantastic. Now, that is my last question, but again, congratulations on a good quarter. Keep up the good work, and I'll talk to you soon. Thanks for taking the time.
spk05: Thank you, James. I appreciate it. Thank you.
spk08: All right, looks like that concludes our Q&A session, so go ahead for closing remarks.
spk05: Okay, so in closing, I want to thank you once again for your time this afternoon and for your continued interest in Census Healthcare. We look forward to our next financial results conference call when we report our full year in late February and to seeing some of you in San Francisco in January. In the meantime, be well, everyone, and thank you so much for your continued interest and support of Census Healthcare. Thank you.
spk08: Ladies and gentlemen, this does conclude your call. You may now disconnect your lines and thank you again.
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