Kinetic Concepts, Inc. Q2 2009 Earnings Call Transcript

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2009-07-21 10:19:23.0

Tags: Deutsche Bank AG, Call Transcript, Earnings, Kinetic Concepts Inc., Healthcare, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Your first question is from the line of Tao Levy with Deutsche Bank.

Seth Damergy – Deutsche Bank Securities

Yeah. Hi Marty and Cathy. This is Seth for Tao. How are doing?

Catherine M. Burzik

Hi, Seth. How are you?

Martin J. Landon

Good morning, Seth.

Seth Damergy – Deutsche Bank Securities

Good, good. So first I wanted to just touch on the 6% unit growth for the V.A.C this quarter?

Catherine M. Burzik

Yes.

Seth Damergy – Deutsche Bank Securities

So specifically can you give us an idea of how much of that’s due to the new pump consignment program versus customers reengaging KCI and moving from competitive products?

Catherine M. Burzik

Well, I'll talk a little bit about that there is probably a lot of detail that we wouldn't release, but what I would say is that what I see the primary thing that's driving the 6% growth is really, really good execution on the part of Mike DelVacchio's organization in the United States. We've done, I think a very good job of launching these programs and Seth I talked a little bit about this last quarter, we talked about ready care and customer plus. And in general is being more flexible I think in the way that we do business with our customers, and I think that's all been helped by these new product launches of Simplace and Bridge that has given an opportunity, for our sales forces to go in and speak to wound care nurses and surgeons about these new products. That's really what I attribute the quarter growth to.

Seth Damergy – Deutsche Bank Securities

Okay. And – or Cathy is there any or is there any one particular channel that’s still being pressured or particularly strong for the V.A.C business?

Catherine M. Burzik

I would say that the pressure that we see continues to be more on the hospital side, where we continue to see the situation where the economy is affecting, unemployment is affecting the number of people in the hospital as well as the small amount of elective surgeries. I would say from a competitive situation as we talked about in the past you see the strongest competition in the skilled nursing segment and in the LTPAC segment and I have been particularly pleased by the growth that we've seen in the post-acute segment and the home care segment.

 

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