OraSure Announces 2018 First Quarter Financial Results
Financial Highlights
- Consolidated net revenues for the first quarter of 2018 were
$42.0 million , a 29% increase from the first quarter of 2017. Consolidated net product revenues were$38.3 million , representing a 22% increase over the first quarter of 2017. - Net molecular collection systems revenues were
$18.4 million during the first quarter of 2018, which represents a 72% increase over the first quarter of 2017. - International sales of the Company’s OraQuick® HIV products of
$5.7 million increased 117% compared to the first quarter of 2017. This increase was primarily the result of higher sales of the Company’s HIV self-test. - International sales of the Company’s OraQuick® HCV product of
$665,000 for the first quarter of 2018 decreased 85% compared to the first quarter of 2017 as a result of the non-renewal of a foreign government supply contract in support of a countrywide HCV eradication program at the end of 2017. This program contributed$2.8 million of sales during the first quarter of 2017. - Consolidated net loss for the first quarter of 2018 was
$2.1 million , or$0.03 per share, which compares to consolidated net income of$12.4 million , or$0.21 per share on a fully diluted basis, for the first quarter of 2017. Consolidated net loss for the current quarter included$6.4 million of transition costs associated the retirement of the Company’s Chief Executive Officer and Chief Financial Officer and the hiring of their successors. These transition costs approximated$0.10 per share and primarily consist of non-cash stock compensation charges. Consolidated net income for the three months endedMarch 31, 2017 included a$12.5 million gain related to the settlement of litigation against Ancestry.com DNA and its contract manufacturer. This gain was accounted for as a reduction of operating expenses and approximated$0.16 per share on an after-tax and fully diluted basis in that period. - Cash and investments totaled
$178.4 million and working capital amounted to$175.6 million at March 31, 2018.
“We are pleased to see that our growth strategy is delivering the expected results and 2018 is off to a strong start,” said
Financial Results
Consolidated net product revenues for the first quarter of 2018 increased 22% over the comparable period of 2017, primarily as a result of higher sales of the Company’s molecular collections products and higher international sales of the OraQuick® HIV self-test, partially offset by lower international sales of the OraQuick® HCV test. First quarter 2018 sales of the OraQuick® HIV self-test included
Consolidated other revenues were
Consolidated gross margin was 58% and 62% for the three months ended
Consolidated operating expenses increased to
The Company reported an operating loss of
Income tax expense was
The Company’s cash and investment balance totaled
Second Quarter 2018 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, | |||||||
2018 | 2017 | ||||||
Results of Operations | |||||||
Net revenues | $ | 41,987 | $ | 32,546 | |||
Cost of products sold | 17,520 | 12,236 | |||||
Gross profit | 24,467 | 20,310 | |||||
Operating expenses: | |||||||
Research and development | 4,075 | 2,970 | |||||
Sales and marketing | 7,499 | 6,877 | |||||
General and administrative | 13,391 | 7,092 | |||||
Gain on litigation settlement | — | (12,500 | ) | ||||
Total operating expenses | 24,965 | 4,439 | |||||
Operating income (loss) | (498 | ) | 15,871 | ||||
Other income | 412 | 467 | |||||
Income (loss) before income taxes | (86 | ) | 16,338 | ||||
Income tax expense | 2,033 | 3,897 | |||||
Net income (loss) | $ | (2,119 | ) | $ | 12,441 | ||
Earnings (loss) per share: | |||||||
Basic | $ | (0.03 | ) | $ | 0.22 | ||
Diluted | $ | (0.03 | ) | $ | 0.21 | ||
Weighted average shares: | |||||||
Basic | 60,865 | 56,929 | |||||
Diluted | 60,865 | 58,772 | |||||
Summary of Net Revenues by Market and Product (Unaudited)
Three Months Ended March 31, | ||||||||||||||
Dollars | Percentage of Total Net Revenues |
|||||||||||||
2018 | 2017 | % Change |
2018 | 2017 | ||||||||||
Market | ||||||||||||||
Infectious disease testing | $ | 14,170 | $ | 14,583 | (3 | )% | 34 | % | 45 | % | ||||
Risk assessment testing | 3,002 | 3,130 | (4 | ) | 7 | 10 | ||||||||
Cryosurgical systems | 2,785 | 3,063 | (9 | ) | 6 | 9 | ||||||||
Molecular collection systems | 18,361 | 10,706 | 72 | 44 | 33 | |||||||||
Net product revenues | 38,318 | 31,482 | 22 | 91 | 97 | |||||||||
Other | 3,669 | 1,064 | 245 | 9 | 3 | |||||||||
Net revenues | $ | 41,987 | $ | 32,546 | 29 | % | 100 | % | 100 | % | ||||
Three Months Ended | |||||||||
March 31, | |||||||||
2018 | 2017 | % Change |
|||||||
OraQuick® Revenues | |||||||||
Domestic HIV | $ | 3,344 | $ | 3,812 | (12 | )% | |||
International HIV | 5,737 | 2,644 | 117 | ||||||
Domestic OTC HIV | 1,632 | 1,542 | 6 | ||||||
Net HIV revenues | 10,713 | 7,998 | 34 | ||||||
Domestic HCV | 1,627 | 1,709 | (5 | ) | |||||
International HCV | 665 | 4,402 | (85 | ) | |||||
Net HCV revenues | 2,292 | 6,111 | (62 | ) | |||||
Net product revenues | $ | 13,005 | $ | 14,109 | (8 | )% | |||
Three Months Ended | |||||||||
March 31, | |||||||||
2018 | 2017 | % Change |
|||||||
Cryosurgical Systems Revenues | |||||||||
Domestic professional | $ | 875 | $ | 1,496 | (42 | )% | |||
International professional | 150 | 130 | 15 | ||||||
Domestic OTC | 289 | 285 | 1 | ||||||
International OTC | 1,471 | 1,152 | 28 | ||||||
Net product revenues | $ | 2,785 | $ | 3,063 | (9 | )% | |||
Three Months Ended | |||||||||
March 31, | |||||||||
2018 | 2017 | % Change |
|||||||
Molecular Collection Systems Revenues | |||||||||
Commercial Genomics | $ | 14,256 | $ | 7,254 | 97 | % | |||
Academic Genomics | 2,832 | 2,685 | 5 | ||||||
Microbiome | 1,273 | 767 | 66 | ||||||
Net product revenues | $ | 18,361 | $ | 10,706 | 72 | % | |||
Three Months Ended | |||||||||
March 31, | |||||||||
2018 | 2017 | % Change |
|||||||
Other Revenues | |||||||||
Royalty income | $ | 1,602 | $ | - | N/A | ||||
BARDA funding | 1,538 | 1,064 | 45 | % | |||||
Charitable support reimbursement | 529 | - | N/A | ||||||
Other revenues | $ | 3,669 | $ | 1,064 | 245 | % | |||
Condensed Consolidated Balance Sheets (Unaudited)
March 31, 2018 | December 31, 2017 | ||||
Assets | |||||
Cash and cash equivalents | $ | 64,065 | $ | 72,869 | |
Short-term investments | 79,446 | 83,028 | |||
Accounts receivable, net | 28,197 | 42,521 | |||
Inventories | 20,907 | 19,343 | |||
Other current assets | 4,139 | 4,144 | |||
Property and equipment, net | 22,975 | 21,372 | |||
Intangible assets, net | 7,390 | 8,223 | |||
Goodwill | 19,584 | 20,083 | |||
Long-term investments | 34,880 | 20,690 | |||
Other non-current assets | 4,340 | 3,928 | |||
Total assets | $ | 285,923 | $ | 296,201 | |
Liabilities and Stockholders’ Equity | |||||
Accounts payable | $ | 9,622 | $ | 10,228 | |
Deferred revenue | 1,799 | 1,314 | |||
Other current liabilities | 9,765 | 20,695 | |||
Other non-current liabilities | 4,258 | 3,932 | |||
Deferred income taxes | 1,761 | 1,951 | |||
Stockholders’ equity | 258,718 | 258,081 | |||
Total liabilities and stockholders’ equity | $ | 285,923 | $ | 296,201 | |
Three Months Ended | |||||
March 31, | |||||
Additional Financial Data (Unaudited) | 2018 | 2017 | |||
Capital expenditures | $ | 1,897 | $ | 878 | |
Depreciation and amortization | $ | 1,868 | $ | 1,419 | |
Stock-based compensation | $ | 7,483 | $ | 1,518 | |
Cash provided by operating activities | $ | 7,636 | $ | 12,619 | |
Conference Call
The Company will host a conference call and audio webcast for analysts and investors to discuss the Company’s 2018 first quarter financial results, certain business developments and financial guidance for the second quarter of 2018, 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 #4298046 or go to OraSure Technologies’ web site, www.orasure.com, and click on the Investor Relations page. Please click on the webcast link and follow the prompts for registration and access 10 minutes prior to the call. A replay of the call will be archived on OraSure Technologies’ web site shortly after the call has ended and will be available for seven days. A replay of the call can also be accessed until midnight,
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