OraSure Announces 2016 Second Quarter Financial Results
Financial Highlights
- Consolidated net revenues for the second quarter of 2016 were
$31.4 million , a 3% increase from the second quarter of 2015. Consolidated net revenues for the six months endedJune 30, 2016 were$60.4 million , a 5% increase from the comparable period of 2015.
- Net revenues from sales of the Company’s OraQuick® rapid HCV test were
$3.2 million for the second quarter of 2016, representing a 37% increase over the second quarter of 2015. Net revenues for the OraQuick® rapid HCV test were$6.1 million for the six months endedJune 30, 2016 , a 36% increase from the comparable period of 2015.
- Net revenues from international sales of the Company’s OraQuick® HIV test were
$2.0 million for the second quarter of 2016, representing a 230% increase over the second quarter of 2015. Net international revenues for the OraQuick® HIV test were$2.8 million for the six months endedJune 30, 2016 , an 83% increase from the comparable period of 2015.
- The Company’s molecular collection systems subsidiary, DNA Genotek (“DNAG”), contributed
$8.4 million in net revenues during the second quarter of 2016, which represents a 4% increase over the second quarter of 2015. DNAG net revenues during the six months endedJune 30, 2016 were$15.3 million , a 3% increase from the comparable period in 2015.
- Consolidated net income for the second quarter of 2016 was
$3.8 million , or$0.07 per share on a fully-diluted basis, which compares to consolidated net income of$2.0 million , or$0.03 per share on a fully-diluted basis, for the second quarter of 2015. Consolidated net income for the six months endedJune 30, 2016 was$6.3 million , or$0.11 per share on a fully-diluted basis, which compares to consolidated net income of$2.1 million , or$0.04 per share, for the comparable period of 2015. - Cash and short-term investments totaled
$113.4 million and working capital amounted to$120.3 million atJune 30, 2016 .
“We are pleased with the Company’s financial performance for the second quarter of 2016, which exceeded expectations on both the top and bottom lines,” said
Financial Results
Consolidated net product revenues for both the second quarter and first six months of 2016 increased 5% over the comparable periods of 2015, primarily as a result of higher sales of the Company’s OraQuick® HCV, OraQuick® HIV, and molecular collection systems products. These increases were partially offset by lower sales of the Company’s risk assessment products and the absence of sales of the Company’s OraQuick® Ebola Rapid Antigen test. The increase for the six month period also included higher sales of the Company’s cryosurgical systems products.
Consolidated other revenues for the second quarter and first six months of 2016 were
Consolidated gross margin for the three and six months ended
Consolidated operating expenses decreased to
The Company’s cash and short-term investment balance totaled
Third Quarter 2016 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 | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
Results of Operations | |||||||||||||||||
Net revenues | $ | 31,359 | $ | 30,388 | $ | 60,448 | $ | 57,476 | |||||||||
Cost of products sold | 10,274 | 9,692 | 19,050 | 19,782 | |||||||||||||
Gross profit | 21,085 | 20,696 | 41,398 | 37,694 | |||||||||||||
Operating expenses: | |||||||||||||||||
Research and development | 2,985 | 2,996 | 5,351 | 6,436 | |||||||||||||
Sales and marketing | 7,397 | 8,904 | 16,103 | 16,788 | |||||||||||||
General and administrative | 6,354 | 6,075 | 12,896 | 12,040 | |||||||||||||
Total operating expenses | 16,736 | 17,975 | 34,350 | 35,264 | |||||||||||||
Operating income | 4,349 | 2,721 | 7,048 | 2,430 | |||||||||||||
Other income (expense) | (340 | ) | (95 | ) | (532 | ) | 314 | ||||||||||
Income before income taxes | 4,009 | 2,626 | 6,516 | 2,744 | |||||||||||||
Income tax expense | 173 | 658 | 234 | 663 | |||||||||||||
Net income | $ | 3,836 | $ | 1,968 | $ | 6,282 | $ | 2,081 | |||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.07 | $ | 0.03 | $ | 0.11 | $ | 0.04 | |||||||||
Diluted | $ | 0.07 | $ | 0.03 | $ | 0.11 | $ | 0.04 | |||||||||
Weighted average shares: | |||||||||||||||||
Basic | 55,543 | 56,453 | 55,497 | 56,398 | |||||||||||||
Diluted | 56,208 | 56,687 | 56,144 | 56,678 |
Summary of Net Revenues by Market and Product (Unaudited)
Three Months Ended June 30, | |||||||||||||||||||
Dollars |
Percentage of Total Net Revenues |
||||||||||||||||||
Market | 2016 | 2015 | % Change |
2016 | 2015 | ||||||||||||||
Infectious disease testing | $ | 12,949 | $ | 11,792 | 10 | % | 41 | % | 39 | % | |||||||||
Risk assessment testing | 3,159 | 3,466 | (9 | ) | 10 | 11 | |||||||||||||
Cryosurgical systems | 3,041 | 2,953 | 3 | 10 | 10 | ||||||||||||||
Molecular collection systems | 8,433 | 8,102 | 4 | 27 | 27 | ||||||||||||||
Net product revenues | 27,582 | 26,313 | 5 | 88 | 87 | ||||||||||||||
Other | 3,777 | 4,075 | (7 | ) | 12 | 13 | |||||||||||||
Net revenues | $ | 31,359 | $ | 30,388 | 3 | % | 100 | % | 100 | % | |||||||||
Six Months Ended June 30, |
||||||||||||||||||
Dollars | Percentage of Total Net Revenues |
|||||||||||||||||
Market | 2016 | 2015 | % Change |
2016 | 2015 | |||||||||||||
Infectious disease testing | $ | 24,317 | $ | 23,288 | 4 | % | 40 | % | 40 | % | ||||||||
Risk assessment testing | 6,265 | 6,473 | (3 | ) | 10 | 11 | ||||||||||||
Cryosurgical systems | 6,922 | 5,498 | 26 | 12 | 10 | |||||||||||||
Molecular collection systems | 15,323 | 14,819 | 3 | 25 | 26 | |||||||||||||
Net product revenues | 52,827 | 50,078 | 5 | 87 | 87 | |||||||||||||
Other | 7,621 | 7,398 | 3 | 13 | 13 | |||||||||||||
Net revenues | $ | 60,448 | $ | 57,476 | 5 | % | 100 | % | 100 | % | ||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||||||||||||
June 30, |
June 30, |
||||||||||||||||||||||||
HIV Revenues | 2016 | 2015 | % Change |
2016 | 2015 | % Change |
|||||||||||||||||||
Domestic | $ | 5,886 | $ | 6,593 | (11 | ) | % | $ | 11,588 | $ | 12,601 | (8 | ) | % | |||||||||||
International | 1,969 | 596 | 230 | 2,824 | 1,544 | 83 | |||||||||||||||||||
Domestic OTC | 1,739 | 1,719 | 1 | 3,262 | 3,280 | (1 | ) | ||||||||||||||||||
Net product revenues | $ | 9,594 | $ | 8,908 | 8 | % | $ | 17,674 | $ | 17,425 | 1 | % | |||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||
June 30, |
June 30, | ||||||||||||||||||||||||
HCV Revenues | 2016 | 2015 | % Change |
2016 | 2015 | % Change |
|||||||||||||||||||
Domestic | $ | 1,788 | $ | 1,693 | 6 | % | $ | 3,689 | $ | 2,889 | 28 | % | |||||||||||||
International | 1,428 | 646 | 121 | 2,430 | 1,619 | 50 | |||||||||||||||||||
Net product revenues | 3,216 | 2,339 | 37 | 6,119 | 4,508 | 36 | |||||||||||||||||||
Amortization of exclusivity payments | 3,360 | 3,361 | 0 | 6,722 | 6,684 | 1 | |||||||||||||||||||
Net HCV-related revenues | $ | 6,576 | $ | 5,700 | 15 | % | $ | 12,841 | $ | 11,192 | 15 | % | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||
Cryosurgical Systems Revenues | 2016 | 2015 | % Change |
2016 | 2015 | % Change |
|||||||||||||||||||
Domestic professional | $ | 1,145 | $ | 1,008 | 14 | % | $ | 2,699 | $ | 1,668 | 62 | % | |||||||||||||
International professional | 211 | 142 | 49 | 446 | 498 | (10 | ) | ||||||||||||||||||
Domestic OTC | 345 | 108 | 219 | 723 | 163 | 344 | |||||||||||||||||||
International OTC | 1,340 | 1,695 | (21 | ) | 3,054 | 3,169 | (4 | ) | |||||||||||||||||
Net cryosurgical systems revenues | $ | 3,041 | $ | 2,953 | 3 | % | $ | 6,922 | $ | 5,498 | 26 | % | |||||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||
June 30, 2016 | December 31, 2015 | ||||||
Assets | |||||||
$ | 105,701 | $ | 94,094 | ||||
Cash | |||||||
Short-term investments | 7,736 | 7,225 | |||||
Accounts receivable, net | 18,436 | 19,265 | |||||
Inventories | 11,366 | 13,242 | |||||
Other current assets | 3,136 | 2,888 | |||||
Property and equipment, net | 20,200 | 20,083 | |||||
Intangible assets, net | 12,020 | 12,591 | |||||
Goodwill | 19,541 | 18,250 | |||||
Other non-current assets | 1,784 | 1,683 | |||||
Total assets | $ | 199,920 | $ | 189,321 | |||
Liabilities and Stockholders’ Equity | |||||||
Accounts payable | $ | 3,956 | $ | 5,087 | |||
Deferred revenue | 13,822 | 9,735 | |||||
Other current liabilities | 8,293 | 10,412 | |||||
Other non-current liabilities | 2,018 | 1,768 | |||||
Deferred income taxes | 3,043 | 2,883 | |||||
Stockholders’ equity | 168,788 | 159,436 | |||||
Total liabilities and stockholders’ equity | $ | 199,920 | $ | 189,321 | |||
Six months ended | |||||||
June 30, | |||||||
Additional Financial Data (Unaudited) | 2016 | 2015 | |||||
Capital expenditures | $ | 2,729 | $ | 1,145 | |||
Depreciation and amortization | $ | 2,778 | $ | 2,849 | |||
Stock-based compensation | $ | 2,942 | $ | 3,008 | |||
Cash provided by (used in) operating activities | $ | 16,741 | $ | (3,421 | ) |
Conference Call
The Company will host a conference call and audio webcast to discuss the Company’s 2016 second quarter financial results, certain business developments and financial guidance for the third quarter of 2016, 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 #46406766 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
Company Contact:Ronald H. Spair Chief Financial Officer 610-882-1820 Investorinfo@orasure.com www.orasure.com