OraSure Announces 2017 First Quarter Financial Results
Financial Highlights
- Consolidated net revenues for the first quarter of 2017 were
$32.5 million , a 12% increase from the first quarter of 2016. Net product revenues were$31.5 million , representing a 25% increase over the first quarter of 2016.
- Net molecular collection systems revenues were
$10.7 million during the first quarter of 2017, which represents a 55% increase over the first quarter of 2016.
- Total OraQuick® HCV sales of
$6.1 million for the first quarter of 2017 increased 111% compared to the first quarter of 2016 and included a 340% increase in international sales of the product from the prior year quarter.
- Net revenues from international sales of the Company’s OraQuick® HIV products were
$2.6 million in the first quarter of 2017, representing a 210% increase over the first quarter of 2016.
- First quarter 2017 results include a
$12.5 million pre-tax gain related to the settlement of litigation against Ancestry.comDNA LLC and its contract manufacturer, which was accounted for as a reduction of operating expenses.
- The Company entered into a contract to supply more than
$20 million of its saliva DNA collection devices, which represents the largest supply contract in the history of the Company’s molecular business.
- Consolidated net income for the first quarter of 2017 was
$12.4 million , or$0.21 per share on a fully diluted basis, which compares to consolidated net income of$2.4 million , or$0.04 per share on a fully diluted basis, for the first quarter of 2016.
- Cash and short-term investments totaled
$141.5 million and working capital amounted to$162.2 million atMarch 31, 2017 .
”We are extremely pleased with our financial performance and the progress made on our growth objectives during the first quarter,” said
Financial Results
Consolidated net product revenues for the first quarter of 2017 increased 25% over the comparable period of 2016, primarily as a result of higher sales of the Company’s molecular products and higher international sales of the OraQuick® HIV self-test and OraQuick® HCV product, partially offset by lower domestic sales of the Company’s professional OraQuick® HIV product and lower cryosurgical systems sales.
Consolidated other revenues were
Consolidated gross margin for the three months ended
Consolidated operating expenses decreased to
The Company’s cash and short-term investment balance totaled
Second Quarter 2017 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 | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Results of Operations | |||||||
Net revenues | $ | 32,546 | $ | 29,089 | |||
Cost of products sold | 12,236 | 8,776 | |||||
Gross profit | 20,310 | 20,313 | |||||
Operating expenses: | |||||||
Research and development | 2,970 | 2,366 | |||||
Sales and marketing | 6,877 | 8,706 | |||||
General and administrative | 7,092 | 6,542 | |||||
Gain on litigation settlement | (12,500) | - | |||||
Total operating expenses | 4,439 | 17,614 | |||||
Operating income | 15,871 | 2,699 | |||||
Other income (expense) | 467 | (192) | |||||
Income before income taxes | 16,338 | 2,507 | |||||
Income tax expense | 3,897 | 61 | |||||
Net income | $ | 12,441 | $ | 2,446 | |||
Earnings per share: | |||||||
Basic | $ | 0.22 | $ | 0.04 | |||
Diluted | $ | 0.21 | $ | 0.04 | |||
Weighted average shares: | |||||||
Basic | 56,929 | 55,451 | |||||
Diluted | 58,772 | 56,079 | |||||
Summary of Net Revenues by Market and Product (Unaudited)
Three Months Ended March 31, | |||||||||||||||
Dollars | Percentage of Total Net Revenues |
||||||||||||||
Market | 2017 | 2016 | % Change |
2017 | 2016 | ||||||||||
Infectious disease testing | $ | 14,583 | $ | 11,368 | 28 | % | 45 | % | 39 | % | |||||
Risk assessment testing | 3,130 | 3,105 | 1 | 10 | 11 | ||||||||||
Cryosurgical systems | 3,063 | 3,882 | (21) | 9 | 13 | ||||||||||
Molecular collection systems | 10,706 | 6,890 | 55 | 33 | 24 | ||||||||||
Net product revenues | 31,482 | 25,245 | 25 | 97 | 87 | ||||||||||
Other | 1,064 | 3,844 | (72) | 3 | 13 | ||||||||||
Net revenues | $ | 32,546 | $ | 29,089 | 12 | % | 100 | % | 100 | % | |||||
Three Months Ended | |||||||||
March 31, | |||||||||
HIV Revenues | 2017 | 2016 | % Change |
||||||
Domestic | $ | 3,812 | $ | 5,703 | (33) | % | |||
International | 2,644 | 854 | 210 | ||||||
Domestic OTC | 1,542 | 1,523 | 1 | ||||||
Net product revenues | $ | 7,998 | $ | 8,080 | (1) | % | |||
Three Months Ended | |||||||||
March 31, | |||||||||
HCV Revenues | 2017 | 2016 | %Change | ||||||
Domestic | $ | 1,709 | $ | 1,900 | (10) | % | |||
International | 4,402 | 1,001 | 340 | ||||||
Net product revenues | 6,111 | 2,901 | 111 | ||||||
Amortization of exclusivity payments | - | 3,362 | (100) | ||||||
Net HCV-related revenues | $ | 6,111 | $ | 6,263 | (2) | % | |||
Three Months Ended | |||||||||
March 31, | |||||||||
Cryosurgical Systems Revenues | 2017 | 2016 | % Change |
||||||
Domestic professional | $ | 1,496 | $ | 1,554 | (4) | % | |||
International professional | 130 | 235 | (45) | ||||||
Domestic OTC | 285 | 378 | (25) | ||||||
International OTC | 1,152 | 1,715 | (33) | ||||||
Net product revenues | $ | 3,063 | $ | 3,882 | (21) | % | |||
Condensed Consolidated Balance Sheets (Unaudited)
March 31, 2017 | December 31, 2016 | ||||
Assets | |||||
Cash and cash equivalents | $ | 122,682 | $ | 109,790 | |
Short-term investments | 18,776 | 11,160 | |||
Accounts receivable, net | 24,005 | 19,827 | |||
Inventories | 12,707 | 11,799 | |||
Other current assets | 2,365 | 3,865 | |||
Property and equipment, net | 20,134 | 20,033 | |||
Intangible assets, net | 9,779 | 10,337 | |||
Goodwill | 18,971 | 18,793 | |||
Other non-current assets | 3,173 | 2,331 | |||
Total assets | $ | 232,592 | $ | 207,935 | |
Liabilities and Stockholders’ Equity | |||||
Accounts payable | $ | 7,286 | $ | 4,633 | |
Deferred revenue | 1,306 | 1,388 | |||
Other current liabilities | 9,685 | 11,314 | |||
Other non-current liabilities | 3,160 | 2,304 | |||
Deferred income taxes | 2,330 | 2,446 | |||
Stockholders’ equity | 208,825 | 185,850 | |||
Total liabilities and stockholders’ equity | $ | 232,592 | $ | 207,935 | |
Three months ended | |||||
March 31, | |||||
Additional Financial Data (Unaudited) | 2017 | 2016 | |||
Capital expenditures | $ | 878 | $ | 1,593 | |
Depreciation and amortization | $ | 1,408 | $ | 1,354 | |
Stock-based compensation | $ | 1,518 | $ | 1,452 | |
Cash provided by operating activities | $ | 12,619 | $ | 4,744 | |
Conference Call
The Company will host a conference call and audio webcast to discuss the Company’s 2017 first quarter financial results, certain business developments and financial guidance for the second quarter of 2017, 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 #3133897 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