OraSure Announces 2017 Third Quarter Financial Results
Financial Highlights
- Consolidated net revenues for the third quarter of 2017 were
$42.3 million , a 31% increase from the third quarter of 2016. Consolidated net product revenues were$41.2 million , representing a 62% increase over the third quarter of 2016. - Consolidated net revenues for the nine months ended
September 30, 2017 were$115.0 million , a 24% increase from the comparable period of 2016. Consolidated net product revenues were$111.8 million , representing a 43% increase over the first nine months of 2016. - Net molecular collection systems revenues were
$18.6 million during the third quarter of 2017, which represents a 123% increase over the third quarter of 2016. Net molecular collection systems revenues during the nine months endedSeptember 30, 2017 were$45.3 million , a 92% increase from the comparable period in 2016.
- Total OraQuick® HCV sales of
$8.0 million for the third quarter of 2017 increased 185% compared to the third quarter of 2016 and included a 376% increase in international sales of the product from the prior year quarter. OraQuick® HCV sales were$21.8 million in the first nine months of 2017, a 144% increase over the first nine months of 2016 and included a 325% increase in international sales of the product from the prior year period.
- Net revenues from international sales of the Company’s OraQuick® HIV products of
$3.1 million increased 176% compared to the third quarter of 2016. Total international OraQuick® HIV sales for the nine months endedSeptember 30, 2017 were$7.7 million , a 97% increase over the first nine months of 2016.
- Consolidated net income for the third quarter of 2017 was
$5.8 million , or$0.09 per share on a fully diluted basis, which compares to consolidated net income of$6.2 million , or$0.11 per share on a fully diluted basis, for the third quarter of 2016. Consolidated net income for the nine months endedSeptember 30, 2017 was$23.6 million , or$0.39 per share on a fully-diluted basis, which compares to consolidated net income of$12.5 million , or$0.22 per share, for the comparable period of 2016. Results for the first nine months of 2017 included a$12.5 million pre-tax gain related to a litigation settlement that was accounted for as a reduction of operating expenses. - Cash and investments totaled
$180.3 million and working capital amounted to$182.7 million atSeptember 30, 2017 .
“We are very pleased with the Company’s third quarter financial results,” said
Financial Results
Consolidated net product revenues for the third quarter of 2017 increased 62% over the comparable period of 2016. Consolidated net product revenues for the first nine months of 2017 increased 43% over the comparable period of 2016. These increases were primarily the result of higher sales of the Company’s molecular collections and OraQuick® HCV products and higher international sales of the OraQuick® HIV self-test, partially offset by lower domestic sales of the Company’s professional OraQuick® HIV product and lower cryosurgical product sales. Product revenues associated with the 2017 sales of the OraQuick® HIV self-test include
Consolidated other revenues for the third quarter and first nine months of 2017 were
Consolidated gross margin was 58% and 61% for the three and nine months ended
Consolidated operating expenses increased to
Operating income increased 19% to
The Company’s cash and investment balance totaled
Fourth 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 | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 |
2016 |
||||||||||||
Results of Operations | |||||||||||||||
Net revenues | $ | 42,314 | $ | 32,251 | $ | 115,036 | $ | 92,699 | |||||||
Cost of products sold | 17,670 | 9,576 | 44,605 | 28,626 | |||||||||||
Gross profit | 24,644 | 22,675 | 70,431 | 64,073 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 3,228 | 3,196 | 9,536 | 8,547 | |||||||||||
Sales and marketing | 7,162 | 6,428 | 21,541 | 22,531 | |||||||||||
General and administrative | 6,935 | 6,907 | 21,777 | 19,803 | |||||||||||
Gain on litigation settlement | - | - | (12,500 | ) | - | ||||||||||
Total operating expenses | 17,325 | 16,531 | 40,354 | 50,881 | |||||||||||
Operating income | 7,319 | 6,144 | 30,077 | 13,192 | |||||||||||
Other income (expense) | 113 | 498 | 676 | (34 | ) | ||||||||||
Income before income taxes | 7,432 | 6,642 | 30,753 | 13,158 | |||||||||||
Income tax expense | 1,669 | 400 | 7,121 | 634 | |||||||||||
Net income | $ | 5,763 | $ | 6,242 | $ | 23,632 | $ | 12,524 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.10 | $ | 0.11 | $ | 0.40 | $ | 0.23 | |||||||
Diluted | $ | 0.09 | $ | 0.11 | $ | 0.39 | $ | 0.22 | |||||||
Weighted average shares: | |||||||||||||||
Basic | 60,090 | 55,653 | 58,511 | 55,549 | |||||||||||
Diluted | 62,172 | 56,530 | 60,569 | 56,273 |
Summary of Net Revenues by Market and Product (Unaudited)
Three Months Ended September 30, | ||||||||||||||||
Dollars | Percentage of Total Net Revenues |
|||||||||||||||
Market | 2017 | 2016 | % Change | 2017 | 2016 | |||||||||||
Infectious disease testing | $ | 16,577 | $ | 10,412 | 59 | % | 39 | % | 32 | % | ||||||
Risk assessment testing | 3,149 | 3,481 | (10 | ) | 7 | 11 | ||||||||||
Cryosurgical systems | 2,879 | 3,240 | (11 | ) | 7 | 10 | ||||||||||
Molecular collection systems | 18,552 | 8,327 | 123 | 44 | 26 | |||||||||||
Net product revenues | 41,157 | 25,460 | 62 | 97 | 79 | |||||||||||
Other | 1,157 | 6,791 | (83 | ) | 3 | 21 | ||||||||||
Net revenues | $ | 42,314 | $ | 32,251 | 31 | % | 100 | % | 100 | % | ||||||
Nine Months Ended September 30, | ||||||||||||||||
Dollars | Percentage of Total Net Revenues |
|||||||||||||||
Market | 2017 | 2016 | % Change | 2017 | 2016 | |||||||||||
Infectious disease testing | $ | 47,822 | $ | 34,729 | 38 | % | 42 | % | 37 | % | ||||||
Risk assessment testing | 9,517 | 9,746 | (2 | ) | 8 | 10 | ||||||||||
Cryosurgical systems | 9,116 | 10,162 | (10 | ) | 8 | 11 | ||||||||||
Molecular collection systems | 45,316 | 23,649 | 92 | 39 | 26 | |||||||||||
Net product revenues | 111,771 | 78,286 | 43 | 97 | 84 | |||||||||||
Other | 3,265 | 14,413 | (77 | ) | 3 | 16 | ||||||||||
Net revenues | $ | 115,036 | $ | 92,699 | 24 | % | 100 | % | 100 | % | ||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
HIV Revenues | 2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||||||
Domestic | $ | 3,622 | $ | 4,858 | (25 | ) | % | $ | 12,401 | $ | 16,446 | (25 | ) | % | ||||||
International | 3,069 | 1,110 | 176 | 7,738 | 3,934 | 97 | ||||||||||||||
Domestic OTC | 1,515 | 1,311 | 16 | 4,951 | 4,574 | 8 | ||||||||||||||
Net product revenues | $ | 8,206 | $ | 7,279 | 13 | % | $ | 25,090 | $ | 24,954 | 1 | % | ||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||
September 30, |
September 30, |
|||||||||||||||||||
HCV Revenues | 2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||||||
Domestic | $ | 1,889 | $ | 1,529 | 24 | % | $ | 5,980 | $ | 5,218 | 15 | % | ||||||||
International | 6,154 | 1,293 | 376 | 15,817 | 3,722 | 325 | ||||||||||||||
Net product revenues | 8,043 | 2,822 | 185 | 21,797 | 8,940 | 144 | ||||||||||||||
Amortization of exclusivity payments | - | 6,114 | (100 | ) | - | 12,837 | (100 | ) | ||||||||||||
Net HCV-related revenues | $ | 8,043 | $ | 8,936 | (10 | ) | % | $ | 21,797 | $ | 21,777 | 0 | % | |||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||
September 30, |
September 30, |
|||||||||||||||||||
Cryosurgical Systems Revenues | 2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||||||
Domestic professional | $ | 1,426 | $ | 1,456 | (2 | ) | % | $ | 4,368 | $ | 4,155 | 5 | % | |||||||
International professional | 179 | 162 | 10 | 552 | 607 | (9 | ) | |||||||||||||
Domestic OTC | 325 | 339 | (4 | ) | 957 | 1,062 | (10 | ) | ||||||||||||
International OTC | 949 | 1,283 | (26 | ) | 3,239 | 4,338 | (25 | ) | ||||||||||||
Net product revenues | $ | 2,879 | $ | 3,240 | (11 | ) | % | $ | 9,116 | $ | 10,162 | (10 | ) | % | ||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||
September 30, 2017 | December 31, 2016 | ||||
Assets | |||||
$ | 78,610 | $ | 109,790 | ||
Cash and cash equivalents | |||||
Short-term investments | 83,372 | 11,160 | |||
Accounts receivable, net | 28,099 | 19,827 | |||
Inventories | 16,859 | 11,799 | |||
Other current assets | 2,395 | 3,865 | |||
Property and equipment, net | 21,496 | 20,033 | |||
Intangible assets, net | 8,972 | 10,337 | |||
Goodwill | 20,257 | 18,793 | |||
Long-term investments | 18,290 | - | |||
Other non-current assets | 3,909 | 2,331 | |||
Total assets | $ | 282,259 | $ | 207,935 | |
Liabilities and Stockholders’ Equity | |||||
Accounts payable | $ | 9,624 | $ | 4,633 | |
Deferred revenue | 1,186 | 1,388 | |||
Other current liabilities | 15,813 | 11,314 | |||
Other non-current liabilities | 3,928 | 2,304 | |||
Deferred income taxes | 2,194 | 2,446 | |||
Stockholders’ equity | 249,514 | 185,850 | |||
Total liabilities and stockholders’ equity | $ | 282,259 | $ | 207,935 |
Nine Months Ended | |||||
September 30, | |||||
Additional Financial Data (Unaudited) | 2017 | 2016 | |||
Capital expenditures | $ | 3,462 | $ | 3,512 | |
Depreciation and amortization | $ | 4,589 | $ | 4,152 | |
Stock-based compensation | $ | 5,213 | $ | 4,438 | |
Cash provided by operating activities | $ | 30,361 | $ | 25,180 |
Conference Call
The Company will host a conference call and audio webcast for analysts and investors to discuss the Company’s 2017 third quarter financial results, certain business developments and financial guidance for the fourth 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 #90105011 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:
Chief Financial Officer
610-882-1820
Investorinfo@orasure.com
www.orasure.com