Anika Therapeutics, Inc. (NASDAQ: ANIK), a global joint
preservation company in early intervention orthopedics, today
reported financial results for its first quarter ended March 31,
2021.
First Quarter 2021 Financial Summary
- Revenue in the first quarter of
2021 was $34.3 million, lower by 3% year-over-year, compared to
$35.4 million in the first quarter of 2020.
- Joint Preservation and Restoration
revenue of $12.2 million, up 55%, due to full quarter results from
Arthrosurface and Parcus Medical which were acquired during the
first quarter of 2020 and continued momentum as COVID lifts.
- Joint Pain Management revenue of
$19.3 million, lower by 24% as compared with $25.5 million, due to
the impact of COVID and associated ordering patterns.
- Other revenue of $2.8 million,
compared with $2.0 million, due to sale of legacy products.
- Transformative revenue mix shift
continues, with Joint Preservation and Restoration representing 36%
of total revenues for the quarter, compared with 22% last
year.
- Gross margin was 61%, including a
12-point negative impact from $4.1 million of acquisition-related
expenses.
- Net income was $2.8 million, or
$0.20 per diluted share, compared to net income of $5.8 million, or
$0.40 per diluted share, in the prior year. Net income this quarter
benefitted from a reduction in the value of contingent
consideration. Adjusted net income1 for the quarter was $0.8
million, or $0.06 per diluted share, compared to $6.5 million, or
$0.45 per diluted share, in the prior year.
- Adjusted EBITDA1 for the quarter
was $4.8 million, compared to $9.5 million for the first quarter of
2020.
- Net cash used for operating activities was $2.4 million. Cash,
cash equivalents and investments totaled $94.6 million, compared to
$98.3 million as of December 31, 2020.
1 See description of non-GAAP financial information contained in
this release.
Cheryl R. Blanchard, Ph.D., Anika’s President and CEO,
commented, “We are pleased with our first quarter revenue results.
Despite the impact of COVID on elective procedures and related
ordering patterns in Joint Pain Management, we see signs that the
business is stabilizing. Due to both organic and inorganic growth,
Joint Preservation and Restoration grew to 36% of total revenues
and is positioned for continued expansion driven by new products
and commercial execution. Even during this COVID- impacted,
transformative year, we are confident in our view for 2021 of solid
revenue growth, positive adjusted EBITDA and positive cash
flows.”
Fiscal 2021 Outlook
Due to continued uncertainty in the global market associated
with the impact of the COVID pandemic, the Company is providing
directional guidance to give investors insights into its
expectations for fiscal 2021. This outlook is subject to changing
dynamics associated with COVID, including vaccine distribution,
COVID variants and other related developments.
For 2021, the Company expects upper 20% to low 30% revenue
growth in Joint Preservation and Restoration, low single-digit
growth in Joint Pain Management and mid single-digit decline in its
Other product family, resulting in total company high single-digit
to low double-digit percent revenue growth.
Conference Call Information
Anika’s management will hold a conference call and webcast to
discuss its financial results and business highlights today,
Thursday, May 6, 2021 at 5:00 pm ET. The conference call can be
accessed by dialing 1-800-437-2398 (toll-free domestic) or
1-856-344-9206 (international) and providing the conference ID
number 6335822. A live audio webcast will be available in the
Investor Relations section of Anika’s website, www.anika.com. A
slide presentation with highlights from the conference call will be
available in the Investor Relations section of the Anika website. A
replay of the webcast will be available on Anika’s website
approximately two hours after the completion of the event.
Non-GAAP Financial Information
Non-GAAP financial measures should be considered supplemental
to, and not a substitute for, the Company’s reported financial
results prepared in accordance with GAAP. Furthermore, the
Company’s definition of non-GAAP measures may differ from similarly
titled measures used by others. Because non-GAAP financial measures
exclude the effect of items that will increase or decrease the
Company’s reported results of operations, Anika strongly encourages
investors to review the Company’s consolidated financial statements
and publicly filed reports in their entirety.
Adjusted EBITDA
Anika presents adjusted EBITDA because management uses it as a
supplemental measure in assessing the Company’s operating
performance, and the Company believes that it is helpful to
investors, securities analysts and other interested parties as a
measure of comparative operating performance from period to period.
The Company recognizes adjusted EBITDA as a commonly used measure
in determining business value and as such, uses it internally to
report results. It is also one of the performance metrics that
determines management incentive compensation.
Adjusted EBITDA is defined by the Company as GAAP net income
excluding depreciation and amortization, interest and other income
(expense), income taxes, stock-based compensation expense,
acquisition related costs, non-cash charges related to goodwill
impairment and changes in the fair value of contingent
consideration associated with the Company’s recent acquisitions as
a result of the COVID pandemic, and product rationalization charges
associated with certain non-core legacy products.
Adjusted Net Income and Adjusted EPS
In addition to adjusted EBITDA, the Company is reporting its
first quarter 2021 results with respect to adjusted net income (net
loss) and adjusted diluted Earnings (loss) per Share (EPS) with
respect to adjusted net income. The Company believes that adjusted
net income and adjusted diluted EPS also provide additional useful
information for investors as they assess the Company’s operating
performance, as they are measures that the Company evaluates
regularly when assessing its own performance. Adjusted net income
and adjusted diluted EPS are not calculated identically by all
companies, and therefore the Company’s measurements of adjusted net
income and adjusted diluted EPS may not be comparable to similarly
titled measures reported by other companies. Adjusted net income is
defined by the Company as GAAP net income excluding acquisition
related expenses, inclusive of the impact of purchase accounting,
on a tax effected basis, and the non-cash product rationalization
charges associated with certain non-core legacy products. In the
context of adjusted net income, the impact of purchase accounting
includes amortization of inventory step up and intangible assets
recorded as part of purchase accounting for acquisition
transactions. The amortized assets contribute to revenue
generation, and the amortization of such assets will recur in
future periods until such assets are fully amortized. These assets
include the estimated fair value of certain identified assets
acquired in acquisitions in 2020 and beyond, including in-process
research and development, developed technology, customer
relationships and acquired tradenames. As a result of COVID, the
Company is also specifically excluding the impacts of goodwill
impairment charges and changes in the fair value in contingent
consideration associated with the acquisition transactions, each on
a tax effected basis. Adjusted diluted EPS is defined by the
Company as GAAP diluted EPS excluding acquisition related expenses
and the impact of purchase accounting, each on a tax-adjusted per
share basis, and the non-cash product rationalization charges
associated with certain non-core legacy products. Again, the
Company is also specifically excluding the impacts of goodwill
impairment charges and changes in the fair value in contingent
consideration associated with the acquisition transactions, each on
a tax effected basis if applicable. The Company is reporting this
financial measure to the Board of Directors in order to facilitate
an appropriate assessment of the Company’s performance and the
impact of the COVID pandemic.
A reconciliation of adjusted EBITDA to net income, adjusted net
income to net income and adjusted diluted EPS to diluted EPS, the
most directly comparable financial measures calculated and
presented in accordance with GAAP, is shown in the tables at the
end of this release.
About Anika Anika Therapeutics, Inc. (NASDAQ:
ANIK), is a global joint preservation company that creates and
delivers meaningful advancements in early intervention orthopedic
care. We partner with clinicians to understand what they need most
to treat their patients and we develop minimally invasive products
that restore active living for people around the world. We are
committed to leading in high opportunity spaces within orthopedics,
including osteoarthritis pain management, regenerative solutions,
soft tissue repair and bone preserving joint technologies. Anika is
headquartered in Massachusetts with operations in the United States
and Europe. For more information about Anika, please visit
www.anika.com.
Forward-Looking Statements
This press release may contain forward-looking statements,
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, concerning the Company's expectations, anticipations,
intentions, beliefs or strategies regarding the future which are
not statements of historical fact, including those statements in
the last sentence of the paragraph following the section captioned
“First Quarter 2021 Financial Summary” related to potential future
revenues, profitability, and cash flows and in the section
captioned “Fiscal 2021 Outlook” related to the Company’s
directional revenue expectations. These statements are based upon
the current beliefs and expectations of the Company's management
and are subject to significant risks, uncertainties, and other
factors. The Company's actual results could differ materially from
any anticipated future results, performance, or achievements
described in the forward-looking statements as a result of a number
of factors including, but not limited to, (i) the Company's ability
to successfully commence and/or complete clinical trials of its
products on a timely basis or at all; (ii) the Company's ability to
obtain pre-clinical or clinical data to support domestic and
international pre-market approval applications, 510(k)
applications, or new drug applications, or to timely file and
receive FDA or other regulatory approvals or clearances of its
products; (iii) that such approvals will not be obtained in a
timely manner or without the need for additional clinical trials,
other testing or regulatory submissions, as applicable; (iv) the
Company's research and product development efforts and their
relative success, including whether we have any meaningful sales of
any new products resulting from such efforts; (v) the cost
effectiveness and efficiency of the Company's clinical studies,
manufacturing operations, and production planning; (vi) the
strength of the economies in which the Company operates or will be
operating, as well as the political stability of any of those
geographic areas; (vii) future determinations by the Company to
allocate resources to products and in directions not presently
contemplated; (viii) the Company's ability to successfully
commercialize its products, in the U.S. and abroad; (ix)
the Company's ability to provide an adequate and timely supply of
its products to its customers; and (x) the Company's ability to
achieve its growth targets. Additional factors and risks are
described in the Company's periodic reports filed with
the Securities and Exchange Commission, and they are available
on the SEC's website
at www.sec.gov. Forward-looking statements
are made based on information available to the Company on the date
of this press release, and the Company assumes no obligation to
update the information contained in this press release.
|
|
|
|
|
Anika
Therapeutics, Inc. and Subsidiaries |
Consolidated
Statements of Operations |
(in
thousands, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
For the
Three Months Ended March 31, |
|
|
|
2021 |
|
|
|
2020 |
|
Revenue |
|
|
34,292 |
|
|
|
35,397 |
|
Cost of Revenue |
|
|
13,318 |
|
|
|
14,200 |
|
Gross Profit |
|
|
20,974 |
|
|
|
21,197 |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
Research and development |
|
|
6,361 |
|
|
|
6,050 |
|
Selling, general and administrative |
|
|
18,175 |
|
|
|
14,431 |
|
Goodwill impairment |
|
|
- |
|
|
|
18,144 |
|
Change in fair value of contingent consideration |
|
|
(4,820 |
) |
|
|
(24,522 |
) |
Total operating expenses |
|
|
19,716 |
|
|
|
14,103 |
|
Income (loss) from operations |
|
|
1,258 |
|
|
|
7,094 |
|
Interest and other income (expense), net |
|
|
(43 |
) |
|
|
279 |
|
Income (loss) before income taxes |
|
|
1,215 |
|
|
|
7,373 |
|
Income taxes |
|
|
(1,623 |
) |
|
|
1,580 |
|
Net income (loss) |
|
$ |
2,838 |
|
|
$ |
5,793 |
|
|
|
|
|
|
Net income (loss) per share: |
|
|
|
|
Basic |
|
$ |
0.20 |
|
|
$ |
0.41 |
|
Diluted |
|
$ |
0.20 |
|
|
$ |
0.40 |
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
Basic |
|
|
14,343 |
|
|
|
14,202 |
|
Diluted |
|
|
14,435 |
|
|
|
14,353 |
|
|
|
|
|
|
|
|
|
|
Anika
Therapeutics, Inc. and Subsidiaries |
Consolidated
Balance Sheets |
(in
thousands, except per share data) |
(unaudited) |
|
|
|
|
|
March
31, |
|
December
31, |
ASSETS |
|
2021 |
|
|
|
2020 |
|
Current assets: |
|
|
|
Cash, cash equivalents and investments |
$ |
94,599 |
|
|
$ |
98,318 |
|
Accounts receivable, net |
|
26,509 |
|
|
|
24,102 |
|
Inventories, net |
|
42,718 |
|
|
|
46,209 |
|
Prepaid expenses and other current assets |
|
9,648 |
|
|
|
8,754 |
|
Total current assets |
|
173,474 |
|
|
|
177,383 |
|
Property and equipment, net |
|
49,131 |
|
|
|
50,613 |
|
Right-of-use assets |
|
22,325 |
|
|
|
22,619 |
|
Other long-term assets |
|
20,292 |
|
|
|
15,420 |
|
Intangible assets, net |
|
88,986 |
|
|
|
91,157 |
|
Goodwill |
|
8,045 |
|
|
|
8,413 |
|
Total assets |
$ |
362,253 |
|
|
$ |
365,605 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
8,683 |
|
|
$ |
8,984 |
|
Accrued expenses and other current liabilities |
|
13,460 |
|
|
|
14,793 |
|
Contingent consideration |
|
24,830 |
|
|
|
13,090 |
|
Total current liabilities |
|
46,973 |
|
|
|
36,867 |
|
Other long-term liabilities |
|
1,583 |
|
|
|
1,244 |
|
Contingent consideration |
|
5,760 |
|
|
|
22,320 |
|
Deferred tax liability |
|
10,738 |
|
|
|
11,895 |
|
Lease liabilities |
|
20,543 |
|
|
|
20,879 |
|
|
|
|
|
Stockholders' equity: |
|
|
|
Common stock, $0.01 par value |
|
144 |
|
|
|
143 |
|
Additional paid-in-capital |
|
57,281 |
|
|
|
55,355 |
|
Accumulated other comprehensive loss |
|
(5,051 |
) |
|
|
(4,542 |
) |
Retained earnings |
|
224,282 |
|
|
|
221,444 |
|
Total stockholders' equity |
|
276,656 |
|
|
|
272,400 |
|
Total liabilities and stockholders' equity |
$ |
362,253 |
|
|
$ |
365,605 |
|
|
|
|
|
Anika
Therapeutics, Inc. and Subsidiaries |
Reconciliation of GAAP Net Income to Adjusted
EBITDA |
(in
thousands, except per share data) |
(unaudited) |
|
|
For the
Three Months Ended March 31, |
in thousands, except per share
data |
|
|
2021 |
|
|
2020 |
|
Net income (loss) |
|
$ |
2,838 |
|
$ |
5,793 |
|
Interest and other expense (income), net |
|
|
43 |
|
|
(279 |
) |
(Benefit) provision for income taxes |
|
|
(1,623 |
) |
|
1,580 |
|
Depreciation and amortization |
|
|
1,721 |
|
|
1,673 |
|
Share-based compensation |
|
|
2,259 |
|
|
(207 |
) |
Acquisition related expenses |
|
|
- |
|
|
4,155 |
|
Acquisition related intangible asset amortization |
|
|
1,787 |
|
|
1,088 |
|
Acquisition related inventory step up |
|
|
2,578 |
|
|
2,083 |
|
Goodwill impairment |
|
|
- |
|
|
18,144 |
|
Change in fair value of contingent consideration (benefit) |
|
|
(4,820 |
) |
|
(24,522 |
) |
Adjusted EBITDA |
|
$ |
4,783 |
|
$ |
9,508 |
|
|
|
|
|
|
|
|
|
Anika
Therapeutics, Inc. and Subsidiaries |
Reconciliation of GAAP Net Income to Adjusted Net
Income |
(in
thousands, except per share data) |
(unaudited) |
|
|
For the
Three Months Ended March 31, |
in thousands, except per share
data |
|
|
2021 |
|
|
2020 |
|
Net income (loss) |
|
$ |
2,838 |
|
$ |
5,793 |
|
Acquisition related expenses, tax effected |
|
|
- |
|
|
3,172 |
|
Acquisition related intangible asset amortization, tax
effected |
|
|
1,396 |
|
|
831 |
|
Acquisition related inventory step up |
|
|
2,016 |
|
|
1,590 |
|
Goodwill impairment, tax effected |
|
|
- |
|
|
15,773 |
|
Change in fair value of contingent consideration, tax effected
(benefit) |
|
|
(5,498 |
) |
|
(20,682 |
) |
Adjusted net income |
|
$ |
752 |
|
$ |
6,477 |
|
|
|
|
|
|
|
|
|
Anika
Therapeutics, Inc. and Subsidiaries |
Reconciliation of GAAP Diluted Earnings Per Share to
Adjusted Diluted Earnings Per Share |
(per share
data) |
(unaudited) |
|
|
For the
Three Months Ended March 31, |
in thousands, except per share
data |
|
|
2021 |
|
|
2020 |
|
Diluted earnings (loss) per share (EPS) |
|
$ |
0.20 |
|
$ |
0.40 |
|
Acquisition related expenses per share, tax effected |
|
|
- |
|
|
0.22 |
|
Acquisition related intangible asset amortization, tax
effected |
|
|
0.10 |
|
|
0.06 |
|
Acquisition related inventory step up |
|
|
0.14 |
|
|
0.11 |
|
Goodwill impairment, tax effected |
|
|
- |
|
|
1.10 |
|
Change in fair value of contingent consideration, tax effected
(benefit) |
|
|
(0.38 |
) |
|
(1.44 |
) |
Adjusted diluted EPS |
|
$ |
0.06 |
|
$ |
0.45 |
|
|
|
|
|
For Investor Inquiries:Anika Therapeutics,
Inc.Mark Namaroff, 781-457-9287Executive Director, Investor
Relations and Corporate
Communicationsmnamaroff@anika.com
Anika Therapeutics (NASDAQ:ANIK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Anika Therapeutics (NASDAQ:ANIK)
Historical Stock Chart
From Apr 2023 to Apr 2024