OraSure Announces 2015 Third Quarter Financial Results
Financial Highlights
- Consolidated net revenues for the third quarter of 2015 were
$29.9 million , a 7% increase from the comparable quarter of 2014. Consolidated net revenues for the nine months endedSeptember 30, 2015 were$87.3 million , a 12% increase from the comparable period of 2014.
- The Company’s molecular collection systems subsidiary, DNA Genotek (“DNAG”), contributed
$7.3 million in net revenues during the third quarter of 2015, which represents a 7% increase over the third quarter of 2014. Net revenues from this segment for the nine months endedSeptember 30, 2015 were$22.1 million , a 26% increase from the comparable period in 2014.
- Net domestic revenues from sales of the Company’s OraQuick® rapid HCV test were
$1.9 million for the third quarter of 2015, representing a 47% increase over the third quarter of 2014 and 13% sequential growth from the second quarter of 2015. Net domestic product revenues for this product were$4.8 million for the nine months endedSeptember 30, 2015 , a 51% increase from the comparable period in 2014. Total HCV-related revenues, including exclusivity payments recognized under the HCV co-promotion agreement withAbbVie , were$6.3 million and$17.5 million for the third quarter and nine months of 2015, respectively, as compared to$5.2 million and$9.7 million for the third quarter and nine months of 2014, respectively.
- Consolidated net income for the third quarter of 2015 was
$1.5 million , or$0.03 per share on a fully-diluted basis, which compares to consolidated net income of$1.1 million , or$0.02 per share on a fully-diluted basis, for the third quarter of 2014. Consolidated net income for the nine months endedSeptember 30, 2015 was$3.6 million , or$0.06 per share on a fully-diluted basis, which compares to a consolidated net loss of$2.0 million , or$0.04 per share, for the comparable period of 2014. The Company’s bottom line results for the nine months of 2014 included a$5.5 million payment received as a result of the termination of the Company’s drug assay collaboration with Roche Diagnostics, which was recorded as an offset to expenses in the second quarter of 2014.
- Cash and short-term investments totaled
$108.2 million and working capital amounted to$112.1 million atSeptember 30, 2015 .
”We are pleased with the Company’s financial results for the third quarter,” said
Financial Results
Consolidated net product revenues for the third quarter and first nine months of 2015 increased 5% and 3% over the comparable periods of 2014, respectively, primarily as a result of higher sales of the Company’s molecular collection systems, OraQuick® HCV and Intercept® products. These increases were partially offset by lower OraQuick® professional HIV product sales in both periods and lower cryosurgical systems sales during the nine-month period.
Consolidated other revenues for the third quarter and first nine months of 2015 were
Consolidated gross margin for the three and nine months ended
Consolidated operating expenses increased to
For the nine months ended
The Company’s cash and short-term investment balance totaled
Fourth Quarter 2015 Outlook
The Company expects consolidated net revenues to range from
Financial Data
Condensed Consolidated Financial Data | |||||||||||||
(In thousands, except per-share data) | |||||||||||||
Unaudited | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
Results of Operations | |||||||||||||
Net revenues | $ | 29,861 | $ | 27,845 | $ | 87,337 | $ | 77,783 | |||||
Cost of products sold | 9,192 | 9,140 | 28,974 | 29,135 | |||||||||
Gross profit | 20,669 | 18,705 | 58,363 | 48,648 | |||||||||
Operating expenses: | |||||||||||||
Research and development | 2,525 | 2,990 | 8,961 | 8,242 | |||||||||
Sales and marketing | 9,677 | 9,216 | 26,465 | 30,828 | |||||||||
General and administrative | 6,931 | 5,617 | 18,971 | 17,317 | |||||||||
Gain on contract termination | - | - | - | (5,500 | ) | ||||||||
Total operating expenses | 19,133 | 17,823 | 54,397 | 50,887 | |||||||||
Operating income (loss) | 1,536 | 882 | 3,966 | (2,239 | ) | ||||||||
Other income | 81 | 268 | 395 | 244 | |||||||||
Income (loss) before income taxes | 1,617 | 1,150 | 4,361 | (1,995 | ) | ||||||||
Income tax expense (benefit) | 147 | 10 | 810 | (33 | ) | ||||||||
Net income (loss) | $ | 1,470 | $ | 1,140 | $ | 3,551 | $ | (1,962 | ) | ||||
Earnings (loss) per share: | |||||||||||||
Basic | $ | 0.03 | $ | 0.02 | $ | 0.06 | $ | (0.04 | ) | ||||
Diluted | $ | 0.03 | $ | 0.02 | $ | 0.06 | $ | (0.04 | ) | ||||
Weighted average shares: | |||||||||||||
Basic | 56,482 | 56,018 | 56,427 | 55,897 | |||||||||
Diluted | 56,692 | 56,666 | 56,900 | 55,897 | |||||||||
Summary of Net Revenues by Market and Product (Unaudited)
Three Months Ended September 30, | ||||||||||||||||
Dollars |
Percentage of Total Net Revenues |
|||||||||||||||
Market | 2015 | 2014 | % Change | 2015 | 2014 | |||||||||||
Infectious disease testing | $ | 11,297 | $ | 11,183 | 1 | % | 38 | % | 40 | % | ||||||
Substance abuse testing | 2,955 | 2,149 | 38 | 10 | 8 | |||||||||||
Cryosurgical systems | 3,458 | 3,241 | 7 | 11 | 11 | |||||||||||
Molecular collection systems | 7,329 | 6,867 | 7 | 25 | 25 | |||||||||||
Insurance risk assessment | 675 | 1,007 | (33 | ) | 2 | 4 | ||||||||||
Net product revenues | 25,714 | 24,447 | 5 | 86 | 88 | |||||||||||
Other | 4,147 | 3,398 | 22 | 14 | 12 | |||||||||||
Net revenues | $ | 29,861 | $ | 27,845 | 7 | % | 100 | % | 100 | % | ||||||
Nine Months Ended September 30, | ||||||||||||||||
Dollars | Percentage of Total Net Revenues |
|||||||||||||||
Market | 2015 | 2014 | % Change | 2015 | 2014 | |||||||||||
Infectious disease testing | $ | 34,585 | $ | 34,914 | (1 | )% | 40 | % | 45 | % | ||||||
Substance abuse testing | 7,584 | 6,187 | 23 | 9 | 8 | |||||||||||
Cryosurgical systems | 8,956 | 12,128 | (26 | ) | 10 | 15 | ||||||||||
Molecular collection systems | 22,148 | 17,523 | 26 | 25 | 23 | |||||||||||
Insurance risk assessment | 2,519 | 2,858 | (12 | ) | 3 | 4 | ||||||||||
Net product revenues | 75,792 | 73,610 | 3 | 87 | 95 | |||||||||||
Other | 11,545 | 4,173 | 177 | 13 | 5 | |||||||||||
Net revenues | $ | 87,337 | $ | 77,783 | 12 | % | 100 | % | 100 | % | ||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
HIV Revenues | 2015 | 2014 | % Change | 2015 | 2014 | % Change | ||||||||||||
Domestic | $ | 5,548 | $ | 7,231 | (23 | )% | $ | 18,147 | $ | 21,568 | (16 | )% | ||||||
International | 450 | 491 | (8 | ) | 1,995 | 1,897 | 5 | |||||||||||
Domestic OTC | 1,642 | 1,368 | 20 | 4,923 | 4,991 | (1 | ) | |||||||||||
Net product revenues | $ | 7,640 | $ | 9,090 | (16 | )% | $ | 25,065 | $ | 28,456 | (12 | )% | ||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
HCV Revenues | 2015 | 2014 | % Change | 2015 | 2014 | % Change | ||||||||||||
Domestic | $ | 1,914 | $ | 1,301 | 47 | % | $ | 4,803 | $ | 3,183 | 51 | % | ||||||
International | 957 | 470 | 104 | 2,577 | 2,341 | 10 | ||||||||||||
Net product revenues | 2,871 | 1,771 | 62 | 7,380 | 5,524 | 34 | ||||||||||||
Amortization of exclusivity payments | 3,397 | 3,398 | - |
10,081 | 4,173 | 142 | ||||||||||||
Net HCV-related revenues | $ | 6,268 | $ | 5,169 | 21 | % | $ | 17,461 | $ | 9,697 | 80 | % | ||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Intercept® Revenues | 2015 | 2014 | % Change | 2015 | 2014 | % Change | ||||||||||||
Net Intercept® revenues | $ | 2,251 | $ | 1,606 | 40 | % | $ | 5,764 | $ | 4,473 | 29 | % | ||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Cryosurgical Systems Revenues | 2015 | 2014 | % Change | 2015 | 2014 | % Change | ||||||||||||
Domestic professional | $ | 1,600 | $ | 1,590 | 1 | % | $ | 3,268 | $ | 4,601 | (29 | )% | ||||||
International professional | 258 | 43 | * | 757 | 581 | 30 | ||||||||||||
Domestic over-the-counter | 137 | - | * | 300 | - | * | ||||||||||||
International over-the-counter | 1,463 | 1,608 | (9 | ) | 4,631 | 6,946 | (33 | ) | ||||||||||
Net cryosurgical systems revenues | $ | 3,458 | $ | 3,241 | 7 | % | $ | 8,956 | $ | 12,128 | (26 | )% | ||||||
* Calculation is not considered meaningful | ||||||||||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||
September 30, 2015 | December 31, 2014 | ||||||
Assets | |||||||
$ | 100,677 | $ | 92,867 | ||||
Cash | |||||||
Short-term investments | 7,512 | 5,000 | |||||
Accounts receivable, net | 17,089 | 16,138 | |||||
Inventories | 14,985 | 15,763 | |||||
Other current assets | 1,559 | 1,446 | |||||
Property and equipment, net | 17,800 | 17,934 | |||||
Intangible assets, net | 13,661 | 17,505 | |||||
Goodwill | 18,974 | 21,734 | |||||
Other non-current assets | 1,589 | 1,246 | |||||
Total assets | $ | 193,846 | $ | 189,633 | |||
Liabilities and Stockholders’ Equity | |||||||
Accounts payable | $ | 6,964 | $ | 7,148 | |||
Deferred revenue | 13,302 | 8,043 | |||||
Other current liabilities | 9,429 | 11,271 | |||||
Other non-current liabilities | 1,142 | 1,234 | |||||
Deferred income taxes | 3,010 | 3,236 | |||||
Stockholders’ equity | 159,999 | 158,701 | |||||
Total liabilities and stockholders’ equity | $ | 193,846 | $ | 189,633 | |||
Nine months ended | |||||||
September 30, | |||||||
Additional Financial Data (Unaudited) | 2015 | 2014 | |||||
Capital expenditures | $ | 1,885 | $ | 2,353 | |||
Depreciation and amortization | $ | 4,259 | $ | 4,732 | |||
Stock-based compensation | $ | 4,543 | $ | 4,284 | |||
Cash provided by operating activities | $ | 15,105 | $ | 8,384 | |||
Conference Call
The Company will host a conference call and audio webcast to discuss the Company’s 2015 third quarter financial results, certain business developments and financial guidance for the fourth quarter of 2015, beginning today at
In order to listen to the conference call, please either dial 844-831-3030 (Domestic) or 315-625-6887 (International) and reference Conference ID #52009076 or go to
About
Important Information
This press release contains certain forward-looking statements, including with respect to expected revenues and earnings/loss per share. Forward-looking statements are not guarantees of future performance or results. Known and unknown factors that could cause actual performance or results to be materially different from those expressed or implied in these statements include, but are not limited to: ability to market and sell products, whether through our internal, direct sales force or third parties; ability to manufacture products in accordance with applicable specifications, performance standards and quality requirements; ability to obtain, and timing and cost of obtaining, necessary regulatory approvals for new products or new indications or applications for existing products; ability to comply with applicable regulatory requirements; ability to effectively resolve warning letters, audit observations and other findings or comments from the
Ronald H. Spair Chief Financial Officer 610-882-1820 Investorinfo@orasure.com www.orasure.com