OraSure Announces 2016 Third Quarter Financial Results
Financial Highlights
- Consolidated net revenues for the third quarter of 2016 were
$32.3 million , an 8% increase from the third quarter of 2015. Consolidated net revenues for the nine months endedSeptember 30, 2016 were$92.7 million , a 6% increase from the comparable period of 2015.
- Net revenues from international sales of the Company’s OraQuick® HIV test were
$1.1 million for the third quarter of 2016, representing a 147% increase over the third quarter of 2015. Net international revenues for the OraQuick® HIV test were$3.9 million for the nine months endedSeptember 30, 2016 , a 97% increase from the comparable period of 2015.
- Net molecular collection systems revenues were
$8.3 million during the third quarter of 2016, which represents a 14% increase over the third quarter of 2015. Net molecular collection systems revenues for the nine months endedSeptember 30, 2016 were$23.6 million , a 7% increase from the comparable period in 2015.
- International sales of the Company’s OraQuick® rapid HCV test were
$1.3 million for the third quarter of 2016, representing a 35% increase from the third quarter of 2015. International sales of the HCV test for the nine months endedSeptember 30, 2016 were$3.7 million , an increase of 44% from the comparable period of 2015.
- During the third quarter, the Company was awarded a contract for up to
$16.6 million in total funding from theU.S. Department of Health andHuman Services Office of the Assistant Secretary for Preparedness and Response’sBiomedical Advanced Research and Development Authority (“BARDA”) related to the development of a rapid Zika test.
- The Company secured a contract with a foreign government to supply
$18 million in diagnostic products, largely consisting of OraQuick® rapid HCV tests. The first shipment of this product is expected to occur in the fourth quarter of 2016 pending completion of certain ancillary documents required under the contract.
- Consolidated net income for the third quarter of 2016 was
$6.2 million , or$0.11 per share on a fully-diluted basis, which compares to consolidated net income of$1.5 million , or$0.03 per share on a fully-diluted basis, for the third quarter of 2015. Consolidated net income for the nine months endedSeptember 30, 2016 was$12.5 million , or$0.22 per share on a fully-diluted basis, which compares to consolidated net income of$3.6 million , or$0.06 per share, for the comparable period of 2015.
- Cash and short-term investments totaled
$121.2 million and working capital amounted to$128.8 million atSeptember 30, 2016 .
“We are very pleased with the Company’s financial performance for the third quarter, especially our strong bottom line results,” said
Financial Results
Consolidated net product revenues for the third quarter of 2016 decreased 1% from the comparable period of 2015 primarily as a result of the absence of sales of the Company’s OraQuick® Ebola rapid antigen test, lower domestic sales of the Company’s OraQuick® HIV and HCV products, and lower sales of the Company’s cryosurgical systems and risk assessment products. These lower sales were partially offset by higher sales of the Company’s molecular collection systems products and increased international OraQuick® HIV and HCV product sales.
Consolidated net product revenues for the first nine months of 2016 increased 3% over the comparable periods of 2015, primarily as a result of higher international sales of the Company’s OraQuick® HCV and HIV products, and higher sales of the Company’s molecular collection systems and cryosurgical systems products. These increases were partially offset by lower domestic sales of the Company’s OraQuick® HIV products, lower sales of the Company’s risk assessment products, and the absence of sales of the Company’s OraQuick® Ebola Rapid Antigen test in the current nine-month period.
Consolidated other revenues for the third quarter and first nine months of 2016 were
Consolidated gross margin for the three and nine months ended
Consolidated operating expenses decreased to
The Company’s cash and short-term investment balance totaled
Fourth 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 | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
Results of Operations | |||||||||||||||||
Net revenues | $ | 32,251 | $ | 29,861 | $ | 92,699 | $ | 87,337 | |||||||||
Cost of products sold | 9,576 | 9,192 | 28,626 | 28,974 | |||||||||||||
Gross profit | 22,675 | 20,669 | 64,073 | 58,363 | |||||||||||||
Operating expenses: | |||||||||||||||||
Research and development | 3,196 | 2,525 | 8,547 | 8,961 | |||||||||||||
Sales and marketing | 6,428 | 9,677 | 22,531 | 26,465 | |||||||||||||
General and administrative | 6,907 | 6,931 | 19,803 | 18,971 | |||||||||||||
Total operating expenses | 16,531 | 19,133 | 50,881 | 54,397 | |||||||||||||
Operating income | 6,144 | 1,536 | 13,192 | 3,966 | |||||||||||||
Other income (expense) | 498 | 81 | (34 | ) | 395 | ||||||||||||
Income before income taxes | 6,642 | 1,617 | 13,158 | 4,361 | |||||||||||||
Income tax expense | 400 | 147 | 634 | 810 | |||||||||||||
Net income | $ | 6,242 | $ | 1,470 | $ | 12,524 | $ | 3,551 | |||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.11 | $ | 0.03 | $ | 0.23 | $ | 0.06 | |||||||||
Diluted | $ | 0.11 | $ | 0.03 | $ | 0.22 | $ | 0.06 | |||||||||
Weighted average shares: | |||||||||||||||||
Basic | 55,653 | 56,482 | 55,549 | 56,427 | |||||||||||||
Diluted | 56,524 | 56,692 | 56,271 | 56,900 | |||||||||||||
Summary of Net Revenues by Market and Product (Unaudited)
Three Months Ended September 30, | ||||||||||||||||||||
Dollars | Percentage of Total Net Revenues | |||||||||||||||||||
Market | 2016 | 2015 | % Change | 2016 | 2015 | |||||||||||||||
Infectious disease testing | $ | 10,412 | $ | 11,297 | (8 | ) | % | 32 | % | 38 | % | |||||||||
Risk assessment testing | 3,481 | 3,630 | (4 | ) | 11 | 12 | ||||||||||||||
Cryosurgical systems | 3,240 | 3,458 | (6 | ) | 10 | 11 | ||||||||||||||
Molecular collection systems | 8,327 | 7,329 | 14 | 26 | 25 | |||||||||||||||
Net product revenues | 25,460 | 25,714 | (1 | ) | 79 | 86 | ||||||||||||||
Other | 6,791 | 4,147 | 64 | 21 | 14 | |||||||||||||||
Net revenues | $ | 32,251 | $ | 29,861 | 8 | % | 100 | % | 100 | % | ||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||
Dollars | Percentage of Total Net Revenues | |||||||||||||||||||
Market | 2016 | 2015 | % Change | 2016 | 2015 | |||||||||||||||
Infectious disease testing | $ | 34,729 | $ | 34,585 | 0 | % | 37 | % | 40 | % | ||||||||||
Risk assessment testing | 9,746 | 10,103 | (4 | ) | 10 | 12 | ||||||||||||||
Cryosurgical systems | 10,162 | 8,956 | 13 | 11 | 10 | |||||||||||||||
Molecular collection systems | 23,649 | 22,148 | 7 | 26 | 25 | |||||||||||||||
Net product revenues | 78,286 | 75,792 | 3 | 84 | 87 | |||||||||||||||
Other | 14,413 | 11,545 | 25 | 16 | 13 | |||||||||||||||
Net revenues | $ | 92,699 | $ | 87,337 | 6 | % | 100 | % | 100 | % | ||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||
HIV Revenues | 2016 | 2015 | % Change | 2016 | 2015 | % Change | |||||||||||||||||||||
Domestic | $ | 4,858 | $ | 5,548 | (12 | ) | % | $ | 16,446 | $ | 18,147 | (9 | ) | % | |||||||||||||
International | 1,110 | 450 | 147 | 3,934 | 1,995 | 97 | |||||||||||||||||||||
Domestic OTC | 1,311 | 1,642 | (20 | ) | 4,574 | 4,923 | (7 | ) | |||||||||||||||||||
Net product revenues | $ | 7,279 | $ | 7,640 | (5 | ) | % | $ | 24,954 | $ | 25,065 | 0 | % | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||
HCV Revenues | 2016 | 2015 | % Change | 2016 | 2015 | % Change | |||||||||||||||||||||
Domestic | $ | 1,529 | $ | 1,914 | (20 | ) | % | $ | 5,218 | $ | 4,803 | 9 | % | ||||||||||||||
International | 1,293 | 957 | 35 | 3,722 | 2,577 | 44 | |||||||||||||||||||||
Net product revenues | 2,822 | 2,871 | (2 | ) | 8,940 | 7,380 | 21 | ||||||||||||||||||||
Amortization of exclusivity payments | 6,114 | 3,397 | 80 | 12,837 | 10,081 | 27 | |||||||||||||||||||||
Net HCV-related revenues | $ | 8,936 | $ | 6,268 | 43 | % | $ | 21,777 | $ | 17,461 | 25 | % | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
Cryosurgical Systems Revenues | 2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||||||||||||||||
Domestic professional | $ | 1,456 | $ | 1,600 | (9 | ) | % | $ | 4,155 | $ | 3,268 | 27 | % | |||||||||||||
International professional | 162 | 258 | (37 | ) | 607 | 757 | (20 | ) | ||||||||||||||||||
Domestic OTC | 339 | 137 | 147 | 1,062 | 300 | 254 | ||||||||||||||||||||
International OTC | 1,283 | 1,463 | (12 | ) | 4,338 | 4,631 | (6 | ) | ||||||||||||||||||
Net cryosurgical systems revenues | $ | 3,240 | $ | 3,458 | (6 | ) | % | $ | 10,162 | $ | 8,956 | 13 | % | |||||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
September 30, 2016 | December 31, 2015 | |||||||
Assets | ||||||||
$ | 113,536 | $ | 94,094 | |||||
Cash and cash equivalents | ||||||||
Short-term investments | 7,618 | 7,225 | ||||||
Accounts receivable, net | 15,471 | 19,265 | ||||||
Inventories | 12,070 | 13,242 | ||||||
Other current assets | 2,024 | 2,888 | ||||||
Property and equipment, net | 20,069 | 20,083 | ||||||
Intangible assets, net | 11,205 | 12,591 | ||||||
Goodwill | 19,243 | 18,250 | ||||||
Other non-current assets | 2,322 | 1,683 | ||||||
Total assets | $ | 203,558 | $ | 189,321 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Accounts payable | $ | 4,422 | $ | 5,087 | ||||
Deferred revenue | 7,911 | 9,735 | ||||||
Other current liabilities | 9,618 | 10,412 | ||||||
Other non-current liabilities | 2,289 | 1,768 | ||||||
Deferred income taxes | 2,836 | 2,883 | ||||||
Stockholders’ equity | 176,482 | 159,436 | ||||||
Total liabilities and stockholders’ equity | $ | 203,558 | $ | 189,321 | ||||
Nine months ended | ||||||||
September 30, | ||||||||
Additional Financial Data (Unaudited) | 2016 | 2015 | ||||||
Capital expenditures | $ | 3,512 | $ | 1,885 | ||||
Depreciation and amortization | $ | 4,212 | $ | 4,259 | ||||
Stock-based compensation | $ | 4,437 | $ | 4,543 | ||||
Cash provided by operating activities | $ | 23,370 | $ | 15,105 | ||||
Conference Call
The Company will host a conference call and audio webcast to discuss the Company’s 2016 third quarter financial results, certain business developments and financial guidance for the fourth 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 #85854320 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