The Spectranetics Corporation (NASDAQ:SPNC) today reported
financial results for the three months and year ended
December 31, 2015. Highlights of the quarter, all
compared with the three months ended December 31, 2014
include:
- Revenue of $65.2 million increased 4% (5% constant
currency1)
- Vascular Intervention revenue of $43.0 million increased 10%
(12% constant currency)
- Lead Management revenue of $18.3 million decreased 1% (no
change constant currency)
“Our fourth quarter results represent another positive step
going into 2016. We drove solid execution across business
segments. Our existing portfolio and innovation pipeline
position us to capitalize on our compelling
opportunities. Our recent product clearances for the Turbo
Power™ Laser Atherectomy Catheter and, more recently, the Bridge™
Occlusion Balloon augment our ability to continue to drive the ISR
indication and expand our leadership position in the Lead
Management market, respectively. The next 12 months will be
an exciting time for our drug-coated balloon portfolio, with the
expected product approvals, clinical data presentations, and the
continued launch of Stellarex internationally,” said Scott Drake,
President and Chief Executive Officer. “The future is bright,
and we remain focused on near-term execution to capitalize on
what’s ahead.”
Net loss for the three months ended December 31, 2015 was
$10.5 million, or $0.25 per share, compared with net loss of $16.0
million, or $0.38 per share, for the three months ended
December 31, 2014. Non-GAAP net loss1 for the three
months ended December 31, 2015 was $8.2 million, or $0.19 per
share, compared with non-GAAP net loss of $1.7 million, or $0.04
per share, for the three months ended December 31, 2014.
__________________________1Constant currency and non-GAAP net
loss are non-GAAP financial measures. See “Reconciliation of
Non-GAAP Financial Measures” later in this release.
Full Year 2015 Financial ResultsRevenue for the
year ended December 31, 2015 increased 20% (22% constant
currency) to $246.0 million from $204.9 million for the year ended
December 31, 2014. Vascular Intervention revenue
increased 36% (38% constant currency), to $160.5 million. Lead
Management revenue increased 5% (8% constant currency) to $69.9
million. Laser, service and other revenue decreased 23% (20%
constant currency) to $15.6 million.
AngioSculpt® revenue was $56.8 million for the year ended
December 31, 2015. Excluding AngioSculpt, which we acquired on June
30, 2014, total revenue increased 8% (10% constant currency) and
Vascular Intervention revenue, excluding AngioSculpt, increased 17%
(18% constant currency).
Net loss during the year ended December 31, 2015 was $59.5
million, or $1.40 per share, compared with net loss of $40.9
million, or $0.98 per share, for the year ended December 31,
2014. Non-GAAP net loss during the year ended December 31,
2015 was $37.1 million, or $0.88 per share, compared with non-GAAP
net loss of $11.3 million, or $0.27 per share, for the year ended
December 31, 2014.
2016 Financial OutlookSpectranetics’ management
projects 2016 revenue to be within a range of $254 million to $266
million, an increase of 3% to 8% over 2015.
Net loss for 2016 is projected to be within a range of $59
million to $64 million, or $1.34 to $1.45 per share. Non-GAAP
net loss for 2016 is projected to be within a range of $45 million
to $50 million, or $1.03 to $1.14 per share. See “Reconciliation of
non-GAAP Financial Measures” later in this release.
- Gross margin is projected to be within a range of 74.4% to
75.0%.
- Research, development and other technology expenses are
expected to be in the range of 25% to 26% of revenue.
- Selling, general and administrative expenses are expected to be
in the range of 61% to 63% of revenue.
Conference CallManagement will host an
investment community conference call today beginning at 2:30 p.m.
MT / 4:30 p.m. ET. Individuals interested in listening to the
conference call may dial (877) 561-2747 for domestic callers, or
(973) 409-9689 for international callers, conference ID 39913305,
or access the webcast on the investor relations section of the
Company’s website at: www.spectranetics.com. The webcast will be
available on the Company’s website for 14 days following the
completion of the call.
About SpectraneticsThe
Spectranetics Corporation develops, manufactures, markets and
distributes medical devices used in minimally invasive procedures
within the cardiovascular system. The Company's products are sold
in over 65 countries and are used to treat arterial blockages in
the heart and legs and in the removal of pacemaker and
defibrillator leads.
The Company's Vascular Intervention (VI) products include a
range of laser catheters for ablation of blockages in arteries
above and below the knee, the AngioSculpt scoring balloon used in
both peripheral and coronary procedures, and the Stellarex
drug-coated balloon peripheral angioplasty platform, which received
European CE mark approval in December 2014. The Company also
markets support catheters to facilitate crossing of peripheral and
coronary arterial blockages, and retrograde access and guidewire
retrieval devices used in the treatment of peripheral arterial
blockages, including chronic total occlusions. The Company markets
aspiration and cardiac laser catheters to treat blockages in the
heart.
The Lead Management (LM) product line includes excimer laser
sheaths, dilator sheaths, mechanical sheaths and accessories for
the removal of pacemaker and defibrillator cardiac leads.
For more information, visit www.spectranetics.com.
Safe Harbor StatementThis news
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934 and the Private Securities
Litigation Reform Act of 1995. You can identify these statements
because they do not relate strictly to historical or current facts.
Such statements may include words such as “anticipate,” “will,”
“estimate,” “expect,” “look forward,” “strive,” “project,”
“intend,” “should,” “plan,” “believe,” “hope,” “enable,”
“potential,” and other words and terms of similar meaning in
connection with any discussion of, among other things, future
operating or financial performance, strategic initiatives and
business strategies, clinical trials and regulatory approvals,
regulatory or competitive environments, outcome of litigation, our
intellectual property and product development. These
forward-looking statements include, but are not limited to,
statements regarding our competitive position, product development
and commercialization schedule, expectation of continued growth and
the reasons for that growth, growth rates, strength, integration
and product launches, and 2016 outlook and projected results
including projected revenue and expenses, net loss and gross
margin. Such statements are based on current assumptions that
involve risks and uncertainties that could cause actual outcomes
and results to differ materially. You are cautioned not to place
undue reliance on these forward-looking statements and to note they
speak only as of the date of this release. These risks and
uncertainties may include financial results differing from
guidance, inability to successfully integrate AngioScore and
Stellarex into our business, market acceptance of excimer laser
atherectomy technology and our vascular intervention and lead
management products, lack of cash necessary to satisfy our cash
obligations under our outstanding 2.625% Convertible Senior Notes
due 2034 and our term loan and revolving loan facilities, our debt
adversely affecting our financial health and preventing us from
fulfilling our debt service and other obligations, increasing price
and product competition, increased pressure on expense levels
resulting from expanded sales, marketing, product development and
clinical activities, uncertain success of our strategic direction,
dependence on new product development, loss of key personnel,
uncertain success of or delays in our clinical trials, costs of and
adverse results in any ongoing legal proceeding, or any legal
proceeding in which we may become involved, adverse impact to our
business of the health care reform and related legislation or
regulations, including changes in reimbursements, continued or
worsening adverse conditions in the general domestic and global
economic markets and continued volatility and disruption of the
credit markets, which affects the ability of hospitals and other
health care systems to obtain credit and may impede our access to
capital, intellectual property claims of third parties,
availability of inventory from suppliers, adverse outcome of FDA
inspections, the receipt of FDA clearance and other regulatory
approvals to market new products or applications and the timeliness
of any clearance and approvals, market acceptance of new products
or applications, product defects, ability to manufacture sufficient
volumes to fulfill customer demand, availability of vendor-sourced
components at reasonable prices, unexpected delays or costs
associated with any planned improvements to our manufacturing
processes, and share price volatility due to the initiation or
cessation of coverage, or changes in ratings, by securities
analysts. For a further list and description of such risks and
uncertainties that could cause our actual results, performance or
achievements to materially differ from any anticipated results,
performance or achievements, please see our previously filed SEC
reports, including those risks set forth in our 2014 Annual Report
on Form 10-K and 2015 quarterly reports on Form 10-Q. We disclaim
any intention or obligation to update or revise any financial or
other projections or other forward-looking statements, whether
because of new information, future events or otherwise.
Use of Non-GAAP Financial MeasuresTo supplement
our condensed consolidated financial statements prepared in
accordance with U.S. generally accepted accounting principles
(GAAP), we use certain non-GAAP financial measures in this release.
Reconciliations of the non-GAAP financial measures used in this
release to the most directly comparable GAAP measures for the
respective periods, and an explanation of our use of these non-GAAP
measures, can be found in “Reconciliation of Non-GAAP Financial
Measures” immediately following the financial tables. Non-GAAP
financial measures have limitations as analytical tools and should
not be considered in isolation or as a substitute for our financial
results prepared in accordance with GAAP.
-Financial tables follow-
|
|
|
|
|
THE SPECTRANETICS CORPORATION |
Condensed Consolidated Statements of Operations |
(in thousands, except per share data and
percentages) |
(unaudited) |
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Revenue |
|
$ |
65,197 |
|
|
$ |
62,959 |
|
|
$ |
245,956 |
|
|
$ |
204,914 |
|
Cost of products
sold |
|
16,358 |
|
|
15,859 |
|
|
62,883 |
|
|
51,385 |
|
Amortization of
acquired inventory step-up |
|
— |
|
|
1,060 |
|
|
251 |
|
|
2,074 |
|
Gross profit |
|
48,839 |
|
|
46,040 |
|
|
182,822 |
|
|
151,455 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Selling,
general and administrative |
|
36,735 |
|
|
36,447 |
|
|
143,355 |
|
|
128,129 |
|
Research,
development and other technology |
|
16,589 |
|
|
9,311 |
|
|
64,436 |
|
|
28,675 |
|
Medical
device excise tax |
|
922 |
|
|
857 |
|
|
3,465 |
|
|
2,834 |
|
Acquisition transaction, integration and legal costs |
|
2,572 |
|
|
9,233 |
|
|
29,472 |
|
|
17,288 |
|
Acquisition-related intangible asset amortization |
|
3,203 |
|
|
3,007 |
|
|
13,275 |
|
|
6,335 |
|
Contingent consideration expense |
|
200 |
|
|
955 |
|
|
2,671 |
|
|
2,070 |
|
Change in
fair value of contingent consideration liability |
|
(3,763 |
) |
|
— |
|
|
(25,819 |
) |
|
(1,064 |
) |
Intangible asset impairment |
|
— |
|
|
— |
|
|
2,496 |
|
|
4,138 |
|
Total operating
expenses |
|
56,458 |
|
|
59,810 |
|
|
233,351 |
|
|
188,405 |
|
Operating loss |
|
(7,619 |
) |
|
(13,770 |
) |
|
(50,529 |
) |
|
(36,950 |
) |
Other
expense |
|
(2,558 |
) |
|
(1,864 |
) |
|
(8,219 |
) |
|
(4,273 |
) |
Loss before taxes |
|
(10,177 |
) |
|
(15,634 |
) |
|
(58,748 |
) |
|
(41,223 |
) |
Income
tax expense (benefit) |
|
283 |
|
|
363 |
|
|
726 |
|
|
(322 |
) |
Net loss |
|
$ |
(10,460 |
) |
|
$ |
(15,997 |
) |
|
$ |
(59,474 |
) |
|
$ |
(40,901 |
) |
|
|
|
|
|
|
|
|
|
Net loss per common
share: |
|
|
|
|
|
|
|
|
Basic and
diluted |
|
$ |
(0.25 |
) |
|
$ |
(0.38 |
) |
|
$ |
(1.40 |
) |
|
$ |
(0.98 |
) |
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic and
diluted |
|
42,613 |
|
|
41,931 |
|
|
42,430 |
|
|
41,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE SPECTRANETICS CORPORATION |
Condensed Consolidated Balance Sheets |
(in thousands) |
(unaudited) |
|
|
|
|
|
December 31, 2015 |
|
December 31, 2014 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
84,594 |
|
|
$ |
95,505 |
|
Accounts
receivable, net |
43,359 |
|
|
41,090 |
|
Inventories, net |
25,155 |
|
|
25,446 |
|
Other
current assets |
5,171 |
|
|
8,093 |
|
Total current
assets |
158,279 |
|
|
170,134 |
|
Property
and equipment, net |
44,719 |
|
|
33,819 |
|
Goodwill
and intangible assets |
263,072 |
|
|
252,514 |
|
Other
assets |
1,929 |
|
|
1,371 |
|
Total assets |
$ |
467,999 |
|
|
$ |
457,838 |
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Borrowings under revolving line of credit |
$ |
24,232 |
|
|
$ |
— |
|
Other
current liabilities |
39,447 |
|
|
41,343 |
|
Convertible debt, net of debt issuance costs |
224,076 |
|
|
223,088 |
|
Term
loan, net of debt issuance costs |
59,601 |
|
|
— |
|
Other
non-current liabilities |
3,674 |
|
|
31,250 |
|
Stockholders’ equity |
116,969 |
|
|
162,157 |
|
Total liabilities and
stockholders’ equity |
$ |
467,999 |
|
|
$ |
457,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE SPECTRANETICS CORPORATION |
Supplemental Financial Information |
(Unaudited) |
|
|
|
|
|
Financial Summary |
|
2014 |
|
2015 |
(000’s,
except laser sales and installed base amounts) |
|
4th Qtr |
|
1st Qtr |
|
2nd Qtr |
|
3rd Qtr |
|
4th Qtr |
Disposable products
revenue: |
|
|
|
|
|
|
|
|
|
|
Vascular
Intervention |
|
39,055 |
|
|
36,513 |
|
|
40,630 |
|
|
40,370 |
|
|
42,967 |
|
Lead
Management |
|
18,509 |
|
|
16,431 |
|
|
17,257 |
|
|
17,961 |
|
|
18,250 |
|
Total
disposable products |
|
57,564 |
|
|
52,944 |
|
|
57,887 |
|
|
58,331 |
|
|
61,217 |
|
|
|
|
|
|
|
|
|
|
|
|
Laser, service, and
other |
|
5,395 |
|
|
4,478 |
|
|
3,790 |
|
|
3,329 |
|
|
3,980 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
62,959 |
|
|
57,422 |
|
|
61,677 |
|
|
61,660 |
|
|
65,197 |
|
Non-GAAP gross margin
percentage (excluding amortization of acquired inventory step-up)
(1) |
|
75 |
% |
|
74 |
% |
|
74 |
% |
|
74 |
% |
|
75 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
(15,997 |
) |
|
(27,305 |
) |
|
(7,216 |
) |
|
(14,493 |
) |
|
(10,460 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flow used in
operating activities |
|
(7,576 |
) |
|
(22,461 |
) |
|
(10,082 |
) |
|
(10,225 |
) |
|
(16,691 |
) |
Total cash and cash
equivalents at end of quarter |
|
95,505 |
|
|
43,639 |
|
|
49,255 |
|
|
41,721 |
|
|
84,594 |
|
|
|
|
|
|
|
|
|
|
|
|
Laser sales
summary: |
|
|
|
|
|
|
|
|
|
|
Laser
sales from inventory |
|
11 |
|
|
6 |
|
|
2 |
|
|
1 |
|
|
5 |
|
Laser
sales from evaluation/rental units |
|
2 |
|
|
2 |
|
|
— |
|
|
1 |
|
|
2 |
|
Total
laser sales |
|
13 |
|
|
8 |
|
|
2 |
|
|
2 |
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Non-GAAP gross margin percentage (excluding amortization of
acquired inventory step-up) is a non-GAAP financial measure and was
recorded during the third quarter of 2014 through the first quarter
of 2015. Please refer to the non-GAAP reconciliation tables
following this table for the reconciliation to the most comparable
GAAP measure. |
|
|
|
|
|
|
|
|
|
|
|
Worldwide
Installed Base Summary: |
|
|
|
|
|
|
|
|
|
|
Laser sales from
inventory |
|
11 |
|
|
6 |
|
|
2 |
|
|
1 |
|
|
5 |
|
Rental placements |
|
26 |
|
|
37 |
|
|
42 |
|
|
35 |
|
|
34 |
|
Evaluation
placements |
|
8 |
|
|
11 |
|
|
5 |
|
|
5 |
|
|
7 |
|
Laser placements during
quarter |
|
45 |
|
|
54 |
|
|
49 |
|
|
41 |
|
|
46 |
|
Buy-backs/returns
during quarter |
|
(10 |
) |
|
(16 |
) |
|
(11 |
) |
|
(16 |
) |
|
(26 |
) |
Net laser placements
during quarter |
|
35 |
|
|
38 |
|
|
38 |
|
|
25 |
|
|
20 |
|
Total lasers placed at
end of quarter |
|
1,271 |
|
|
1,309 |
|
|
1,347 |
|
|
1,372 |
|
|
1,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial
Measures
To supplement our condensed consolidated financial statements
prepared in accordance with GAAP, we use certain non-GAAP financial
measures in this release. Reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP measures
for the respective periods can be found in the tables below.
An explanation of the manner in which our management uses these
non-GAAP measures to conduct and evaluate our business and the
reasons management believes these non-GAAP measures provide useful
information to investors are provided following the reconciliation
tables.
THE SPECTRANETICS CORPORATION |
Reconciliation of revenue by product line to non-GAAP
revenue by product lineon a constant currency basis(in thousands,
except percentages)(unaudited) |
|
|
Three Months Ended |
|
|
|
|
December 31, 2015 |
|
December 31, 2014 |
|
% Change |
|
Revenue, as reported |
|
Foreign exchange impact as compared to prior
period |
|
Revenue on a constant currency basis |
|
Revenue, as reported |
|
As reported |
Constant currency basis |
Vascular
Intervention |
$ |
42,967 |
|
|
$ |
695 |
|
|
$ |
43,662 |
|
|
$ |
39,055 |
|
|
10 |
% |
12 |
% |
Lead Management |
18,250 |
|
|
340 |
|
|
18,590 |
|
|
18,509 |
|
|
(1 |
)% |
— |
% |
Laser, service, and
other |
3,980 |
|
|
129 |
|
|
4,109 |
|
|
5,395 |
|
|
(26 |
)% |
(24 |
)% |
Total
revenue |
$ |
65,197 |
|
|
$ |
1,164 |
|
|
$ |
66,361 |
|
|
$ |
62,959 |
|
|
4 |
% |
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
December 31, 2015 |
|
December 31, 2014 |
|
% Change |
|
Revenue, as reported |
|
Foreign exchange impact as compared to prior
period |
|
Revenue on a constant currency basis |
|
Revenue, as reported |
|
As reported |
Constant currency basis |
Vascular Intervention,
ex-AngioSculpt |
$ |
103,655 |
|
|
$ |
1,175 |
|
|
$ |
104,830 |
|
|
$ |
88,522 |
|
|
17 |
% |
18 |
% |
AngioSculpt |
56,825 |
|
|
938 |
|
|
57,763 |
|
|
29,626 |
|
|
92 |
% |
95 |
% |
Total
Vascular Intervention |
160,480 |
|
|
2,113 |
|
|
162,593 |
|
|
118,148 |
|
|
36 |
% |
38 |
% |
Lead Management |
69,899 |
|
|
1,864 |
|
|
71,763 |
|
|
66,662 |
|
|
5 |
% |
8 |
% |
Laser, service, and
other |
15,577 |
|
|
528 |
|
|
16,105 |
|
|
20,104 |
|
|
(23 |
)% |
(20 |
)% |
Total
revenue |
$ |
245,956 |
|
|
$ |
4,505 |
|
|
$ |
250,461 |
|
|
$ |
204,914 |
|
|
20 |
% |
22 |
% |
Total revenue, ex
AngioSculpt |
$ |
189,131 |
|
|
$ |
3,567 |
|
|
$ |
192,698 |
|
|
$ |
175,288 |
|
|
8 |
% |
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE SPECTRANETICS CORPORATION |
Reconciliation of gross margin to non-GAAP
gross marginexcluding amortization of acquired inventory step-up
(in thousands, except percentages) (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Dec. 31, 2014 |
|
March 31, 2015 |
|
June 30, 2015 |
|
Sept. 30, 2015 |
|
Dec. 31, 2015 |
Gross
profit, as reported |
|
$ |
46,040 |
|
|
$ |
42,369 |
|
|
$ |
45,763 |
|
|
$ |
45,851 |
|
|
$ |
48,839 |
|
Amortization of acquired inventory step-up (1) |
|
1,060 |
|
|
251 |
|
|
— |
|
|
— |
|
|
— |
|
Adjusted
gross profit, excluding amortization of acquired inventory
step-up |
|
$ |
47,100 |
|
|
$ |
42,620 |
|
|
$ |
45,763 |
|
|
$ |
45,851 |
|
|
$ |
48,839 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin, as reported |
|
73 |
% |
|
74 |
% |
|
74 |
% |
|
74 |
% |
|
75 |
% |
Non-GAAP
gross margin, excluding amortization of acquired inventory step-up
|
|
75 |
% |
|
74 |
% |
|
74 |
% |
|
74 |
% |
|
75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnote explanations
can be found following the last non-GAAP tables. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Loss to Non-GAAP Net Loss(in
thousands) (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, 2015 |
|
December 31, 2014 |
|
December 31, 2015 |
|
December 31, 2014 |
Net loss, as
reported |
|
$ |
(10,460 |
) |
|
$ |
(15,997 |
) |
|
$ |
(59,474 |
) |
|
$ |
(40,901 |
) |
Acquisition
transaction, integration and legal costs (2) |
|
2,572 |
|
|
9,233 |
|
|
29,472 |
|
|
17,288 |
|
Amortization of
acquired inventory step-up (1) |
|
— |
|
|
1,060 |
|
|
251 |
|
|
2,074 |
|
Acquisition-related
intangible asset amortization (3) |
|
3,203 |
|
|
3,007 |
|
|
13,275 |
|
|
6,335 |
|
Contingent
consideration expense (4) |
|
200 |
|
|
955 |
|
|
2,671 |
|
|
2,070 |
|
Change in fair value of
contingent consideration liability (5) |
|
(3,763 |
) |
|
— |
|
|
(25,819 |
) |
|
(1,064 |
) |
Intangible asset
impairment (5) |
|
— |
|
|
— |
|
|
2,496 |
|
|
4,138 |
|
Release of valuation
allowance related to AngioScore acquisition (6) |
|
— |
|
|
— |
|
|
— |
|
|
(1,266 |
) |
Non-GAAP net loss |
|
$ |
(8,248 |
) |
|
$ |
(1,742 |
) |
|
$ |
(37,128 |
) |
|
$ |
(11,326 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE SPECTRANETICS CORPORATION |
Reconciliation of Net Loss Per Share to Non-GAAP Net
Loss Per Share(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, 2015 |
|
December 31, 2014 |
|
December 31, 2015 |
|
December 31, 2014 |
Net loss per share, as
reported |
|
$ |
(0.25 |
) |
|
$ |
(0.38 |
) |
|
$ |
(1.40 |
) |
|
$ |
(0.98 |
) |
Acquisition
transaction, integration and legal costs (2) |
|
0.06 |
|
|
0.22 |
|
|
0.69 |
|
|
0.41 |
|
Amortization of
acquired inventory step-up (1) |
|
— |
|
|
0.03 |
|
|
0.01 |
|
|
0.05 |
|
Acquisition-related
intangible asset amortization (3) |
|
0.08 |
|
|
0.07 |
|
|
0.31 |
|
|
0.15 |
|
Contingent
consideration expense (4) |
|
— |
|
|
0.02 |
|
|
0.06 |
|
|
0.05 |
|
Change in fair value of
contingent consideration liability (5) |
|
(0.09 |
) |
|
— |
|
|
(0.61 |
) |
|
(0.03 |
) |
Intangible asset
impairment (5) |
|
— |
|
|
— |
|
|
0.06 |
|
|
0.10 |
|
Release of valuation
allowance related to AngioScore acquisition (6) |
|
— |
|
|
— |
|
|
— |
|
|
(0.03 |
) |
Non-GAAP net loss per
share (7) |
|
$ |
(0.19 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.88 |
) |
|
$ |
(0.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of 2016 Projected Net Loss to Non-GAAP
Projected Net Loss(in millions) (unaudited) |
|
|
Projected Range |
|
|
Twelve Months EndingDecember 31, 2016 |
|
|
Low |
|
High |
Net loss, GAAP |
|
$ |
(64.0 |
) |
|
$ |
(59.0 |
) |
Acquisition
transaction, integration and legal costs (8) |
|
0.9 |
|
|
0.9 |
|
Acquisition-related
amortization and contingent consideration expense (9) |
|
12.8 |
|
|
12.8 |
|
Non-GAAP net loss |
|
$ |
(50.3 |
) |
|
$ |
(45.3 |
) |
|
|
|
|
|
|
|
|
|
Reconciliation of 2016 Projected Net Loss Per Share to
Non-GAAP Projected Net Loss Per Share(unaudited) |
|
|
Projected Range |
|
|
Twelve Months Ending December 31, 2016 |
|
|
Low |
|
High |
Net loss per share,
GAAP |
|
$ |
(1.45 |
) |
|
$ |
(1.34 |
) |
Acquisition
transaction, integration and legal costs (8) |
|
0.02 |
|
|
0.02 |
|
Acquisition-related
amortization and contingent consideration expense (9) |
|
0.29 |
|
|
0.29 |
|
Non-GAAP net loss per
share (7) |
|
$ |
(1.14 |
) |
|
$ |
(1.03 |
) |
|
|
|
|
|
|
|
|
|
__________________
1) Amortization of acquired inventory step-up relates to the
inventory acquired in the AngioScore acquisition.
2) Acquisition transaction, integration and legal costs relate
to the AngioScore and Stellarex acquisitions, which closed on June
30, 2014 and January 27, 2015, respectively, and included
investment banking fees, accounting, consulting, and legal fees,
severance and retention costs, and non-recurring costs associated
with establishing manufacturing operations to support the Stellarex
program. In addition, these costs included $1.0 million, $5.6
million, $19.9 million and $6.8 million in the three months ended
December 31, 2015 and 2014 and the twelve months ended December 31,
2015 and 2014, respectively, for legal fees, including legal fees
and costs advanced, associated with a patent and breach of
fiduciary duty matter in which AngioScore is the
plaintiff.
3) Acquisition-related intangible asset amortization relates
primarily to intangible assets acquired in the AngioScore
acquisition in June 2014 and the Stellarex acquisition in January
2015.
4) Contingent consideration expense represents the accretion of
the estimated contingent consideration liability related to future
amounts payable to former AngioScore stockholders primarily based
on sales of the AngioScore products and achievement of regulatory
milestones.
5) During 2015, the Company remeasured the contingent
consideration liability related to the AngioScore acquisition to
its fair value and reduced it by approximately $25.8 million.
Of this amount, $21.5 million was a result of a decrease in future
revenue estimates for the AngioSculpt products. The remaining
$4.3 million was related to the AngioScore regulatory milestones.
We also recorded a $2.5 million intangible asset impairment
for a partial impairment of the in-process research and development
intangible assets acquired as part of the AngioScore
acquisition.
6) Income tax benefit for the year ended December 31, 2014
included a tax benefit of $1.3 million resulting from a reduction
in the valuation allowance against our deferred tax assets related
to the acquisition of AngioScore.
7) Per share amounts may not add due to rounding.
8) Acquisition transaction, integration and legal costs consist
of integration costs for the Stellarex and AngioScore acquisitions,
which include legal fees and costs advanced associated with a
patent and breach of fiduciary duty matter in which AngioScore is
the plaintiff.
9) Acquisition-related intangible asset amortization relates
primarily to intangible assets acquired in the AngioScore
acquisition in June 2014 and the Stellarex acquisition in January
2015. Contingent consideration expense represents the accretion of
the estimated contingent consideration liability related to future
amounts that may be payable to former AngioScore stockholders
primarily based on sales of the AngioScore products and achievement
of regulatory milestones.
Management uses the non-GAAP financial measures as supplemental
measures to analyze the underlying trends in our business, assess
the performance of our core operations, establish operational goals
and forecasts that are used in allocating resources and evaluate
our performance period over period and in relation to our
competitors’ operating results.
The impact of foreign exchange rates is highly variable and
difficult to predict. We use a constant currency basis to show the
impact from foreign exchange rates on current period revenue
compared to prior period revenue using the prior period’s foreign
exchange rates. In order to properly understand the underlying
business trends and performance of our ongoing operations, we
believe that investors may find it useful to consider the impact of
excluding changes in foreign exchange rates from our revenue.
We believe presenting the non-GAAP financial measures used in
this release provides investors greater transparency to the
information used by our management for financial and operational
decision-making and allows investors to see our results “through
the eyes” of management. We also believe providing this information
better enables our investors to understand our operating
performance and evaluate the methodology used by management to
evaluate and measure such performance.
Non-GAAP financial measures have limitations as analytical tools
and should not be considered in isolation or as a substitute for
our financial results prepared in accordance with GAAP. Some
limitations associated with using these non-GAAP financial measures
are provided below:
- Management exercises judgment in determining which types of
charges or other items should be excluded from the non-GAAP
financial measures used.
- Amortization expense, while not requiring cash settlement, is
an ongoing and recurring expense and has a material impact on GAAP
net income or loss and reflects costs to us not reflected in
non-GAAP net loss. The intangible asset impairment, while not
requiring cash settlement, reflects an economic cost to us not
reflected in non-GAAP net loss.
- Items such as the acquisition transaction and integration
costs, contingent consideration expense and the change in fair
value of contingent consideration liability excluded from non-GAAP
net loss can have a material impact on cash flows and GAAP net loss
and reflect economic costs to us not reflected in non-GAAP net
loss.
- Revenue growth rates stated on a constant currency basis, by
their nature, exclude the impact of changes in foreign currency
exchange rates, which may have a material impact on GAAP
revenue.
- Non-GAAP financial measures are not based on any comprehensive
set of accounting rules or principles and therefore other companies
may calculate similarly titled non-GAAP financial measures
differently than we do, limiting the usefulness of those measures
for comparative purposes.
Investor Relations Contacts
Zach Stassen
Investor.relations@spnc.com
(719) 447-2292
Lynn Pieper
Investor.relations@spnc.com
(415) 309-5999
The Spectranetics Corp. (MM) (NASDAQ:SPNC)
Historical Stock Chart
From Mar 2024 to Apr 2024
The Spectranetics Corp. (MM) (NASDAQ:SPNC)
Historical Stock Chart
From Apr 2023 to Apr 2024