DENVER, April 13,
2023 /PRNewswire/ -- ViewRay, Inc. (Nasdaq: VRAY)
(the "Company") today provided a business update and announced
preliminary financial results for the quarter ended March 31, 2023. The preliminary results have not
been audited and are subject to change.
First Quarter 2023 Preliminary Results and Key Points
(Unaudited)
- Received 13 new orders for MRIdian systems totaling
approximately $68 million, compared
to seven new orders totaling approximately $41 million in the first quarter of 2022.
- Total backlog increased to approximately $411 million as of March
31, 2023, compared to approximately $331 million as of March
31, 2022.
- Total revenue for the first quarter 2023 was approximately
$23 million, primarily from three
revenue units, compared to approximately $19
million, primarily from three revenue units in the first
quarter of 2022.
- Net loss for the first quarter 2023 was approximately
$29 million, compared to a net loss
of approximately $26 million in the
first quarter of 2022.
- Adjusted EBITDA was a loss of approximately $25 million in the first quarter 2023 compared to
an adjusted EBITDA loss of approximately $21
million in the first quarter 2022.
- The Company's Board of Directors has retained Goldman Sachs and
Co. LLC as a financial advisor to undertake an evaluation of
strategic alternatives, including a corporate sale, merger, or
business combination.
"Coming off a strong growth year in 2022, our innovation,
clinical and commercial pipelines remain strong. The demand for
MRIdian continues to be encouraging. However, the first quarter was
hindered by global macroeconomic headwinds. The timing of new
installations and the corresponding payment schedules have
increased the need to extend our working capital balances," said
Scott Drake, President and CEO of
ViewRay. "Looking to the balance of 2023 and into 2024, while we
expect a delay in delivery schedules, our backlog and, ultimately,
installations remain strong. We are further heightening our
operational focus and intend to act quickly with preliminary
expense-saving initiatives as we evaluate additional options to
further reduce operating cost and cash utilization. Our priority
remains to ensure we pursue the path that is in the best interests
of our shareholders and that the clinical benefits of MRIdian's
transformative technology are fully accessible to physicians,
hospitals, and patients globally."
Financial Guidance
The Company is updating its 2023 guidance based on delayed
installation schedules and growing financial pressures impacting
schedule of deliveries, particularly for international
distributors.
The Company is reducing its revenue guidance range to
approximately zero to 15% growth for fiscal 2023 compared to its
previous guidance range of 25% to 40% growth. The Company
also updated its Adjusted EBITDA guidance range to a loss of
$75 million to $85 million for fiscal 2023 compared to its
previous guidance range of a loss of $70
million to $80 million.
Cash usage in the first quarter of 2023 was approximately
$57 million, primarily due to a
working capital impact caused by delays in cash collections from
international customers and outlays for inventory. As a
result, we anticipate that our cash balance of $86 million will get us into the first quarter of
2024. We intend to decrease cash usage to a range of
$25 million to $50 million in 2024, inclusive of our operating
expense initiatives.
Our estimated unaudited financial results and certain business
metrics as of and for the first quarter ended March 31, 2023, presented above, are preliminary
and are subject to the close of the quarter, completion of our
quarter-end and year-end closing procedures, and further financial
review. Our independent registered public accounting firm has not
audited, reviewed, compiled or performed any procedures with
respect to this preliminary financial information. Our actual
results may differ from these estimates as a result of the
completion of our quarter-end and year-end closing procedures,
review adjustments, and other developments that may arise between
now and the time our financial results for the first quarter and
year are finalized.
Use of Non-GAAP Financial Measures
ViewRay reports its financial results in accordance with
generally accepted accounting principles in the United States ("GAAP") and the rules of
the SEC. To supplement its financial statements prepared and
presented in accordance with GAAP, ViewRay uses adjusted EBITDA as
a non-GAAP financial measure. ViewRay has supplemented its GAAP net
loss with a non-GAAP measure of adjusted EBITDA. We define adjusted
EBITDA as EBITDA (defined as net income before net interest
expense, depreciation, and amortization), adjusted for impairment
of assets, non-cash equity-based compensation, non-cash changes in
warrant liability valuations, and non-recurring costs. Management
believes that this non-GAAP financial measure provides useful
supplemental information to management and investors regarding the
performance of the Company and facilitates a meaningful comparison
of results for current periods with previous operating results.
Management uses adjusted EBITDA for both strategic and annual
operating planning.
Adjusted EBITDA has important limitations as an analytical tool,
and you should not consider it in isolation or as a substitute for
analysis of our results as reported under GAAP. Some of these
limitations are that Adjusted EBITDA:
- does not reflect any charges for the assets being depreciated
and amortized that may need to be replaced in the future;
- does not reflect the significant interest expense or the cash
requirements necessary to service interest or, if any, principal
payments on our debt;
- does not reflect the impact of write-downs of long-lived
assets;
- does not reflect the impact of share-based compensation upon
our results of operations;
- does not reflect the impact of changes in fair value of our
warrant liabilities; and
- does not include certain expenses that are non-recurring,
infrequent and unusual in nature.
A reconciliation of GAAP net loss (the most directly comparable
GAAP measure) to non-GAAP adjusted EBITDA for the first quarter,
end March 31, 2023, is provided in
the schedules below.
About ViewRay®
ViewRay, Inc. (Nasdaq: VRAY) designs, manufactures, and markets
the MRIdian® MR-Guided Radiation Therapy System. MRIdian is built
upon a proprietary high-definition MR imaging system designed from
the ground up to address the unique challenges and clinical
workflow for advanced radiation oncology. Unlike MR systems used in
diagnostic radiology, MRIdian's high-definition MR was
purpose-built to address specific challenges, including beam
distortion, skin toxicity, and other concerns that potentially may
arise when high magnetic fields interact with radiation beams.
ViewRay and MRIdian are registered trademarks of ViewRay, Inc.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Private Securities Litigation
Reform Act. Statements in this press release that are not purely
historical are forward-looking statements. Such forward-looking
statements include, among other things, ViewRay's financial
guidance for the full year 2023, anticipated future orders,
anticipated future operating and financial performance, potential
cost reductions, treatment results, therapy adoption, innovation,
and the performance of the MRIdian systems. Actual results could
differ from those projected in any forward-looking statements due
to numerous factors. Such factors include, among others, the
ability to commercialize the MRIdian Linac System, demand for
ViewRay's products, the ability to convert backlog into revenue,
the timing of delivery of ViewRay's products, the timing, length,
and severity of the COVID-19 pandemic, including its impacts across
our businesses on demand, our operations and global supply chains,
disruptions in the supply or changes in costs of raw materials,
labor, product components or transportation services, including as
a result of inflation, the results and other uncertainties
associated with clinical trials, the ability to raise the
additional funding needed to continue to pursue ViewRay's business
and product development plans, the inherent uncertainties
associated with developing new products or technologies,
competition in the industry in which ViewRay operates, overall
market conditions, ViewRay's ability to effectively reduce costs
and cash outflows, the timing of ViewRay's evaluation of strategic
alternatives, whether ViewRay will be able to identify or develop
any strategic alternatives, ViewRay's ability to execute on
material aspects of any strategic alternatives, and whether ViewRay
can achieve the potential benefits of any strategic alternatives.
For a further description of the risks and uncertainties that could
cause actual results to differ from those expressed in these
forward-looking statements, as well as risks relating to ViewRay's
business in general, see ViewRay's current and future reports filed
with the Securities and Exchange Commission, including its Annual
Report on Form 10-K for the fiscal year ended December 31, 2022 and its Quarterly Reports on
Form 10-Q, as updated periodically with the Company's other filings
with the SEC. These forward-looking statements are made as of the
date of this press release, and ViewRay assumes no obligation to
update the forward-looking statements, or to update the reasons why
actual results could differ from those projected in the
forward-looking statements, except as required by law.
VIEWRAY, INC.
Reconciliation of GAAP Net Loss to Adjusted EBITDA
(Unaudited)
(In thousands, except share and per share data)
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
GAAP net
loss
|
$
(28,859)
|
|
$
(25,774)
|
Depreciation and
amortization
|
961
|
|
1,244
|
Stock-based
compensation
|
3,337
|
|
5,032
|
Interest
expense
|
2,626
|
|
1,064
|
Interest
income
|
(1,341)
|
|
(5)
|
Loss (gain) on fair
value of warrants (a)
|
(1,944)
|
|
(2,830)
|
Adjusted
EBITDA
|
(25,220)
|
|
(21,269)
|
_________________
(a) consists of non-cash gain/losses on our outstanding
warrants.
VIEWRAY, INC.
Forward-Looking Guidance
Reconciliation of Projected Net Loss to Projected Adjusted
EBITDA
(Unaudited)
(In thousands, except share and per share data)
|
Twelve Months Ended
December 31, 2023
|
|
From
|
|
To
|
GAAP net
loss
|
$
(100,000)
|
|
$
(110,000)
|
Depreciation and
amortization (a)
|
4,500
|
|
4,500
|
Stock-based
compensation
|
15,000
|
|
15,000
|
Interest
expense
|
10,500
|
|
10,500
|
Interest
income
|
(3,000)
|
|
(3,000)
|
Loss (gain) on fair
value of warrants (b)
|
(2,000)
|
|
(2,000)
|
Adjusted
EBITDA
|
(75,000)
|
|
(85,000)
|
_________________
(a) consists of depreciation, primarily on property and
equipment as well as amortization of intangibles.
(b) consists of non-cash gain/losses on our outstanding
warrants.
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SOURCE ViewRay, Inc.