Third Quarter 2020 Overview
-
Revenue of
$22.7 million in the third quarter of 2020, compared to$24.1 million in the third quarter of 2019 -
Strong sales trend reinforces confidence in fourth quarter 2020 sequential revenue growth
-
Cash, Cash Equivalents and Short-term Investments of
$130.7 million
Total revenue was
“We are encouraged that our PROPEL implants are gaining momentum and recapturing procedure volume following the downturn in elective sinus procedures due to COVID-19. Of particular note is the increased use of PROPEL in the office setting, something we intend to build upon,” said
Gross profit for the third quarter of 2020 was
Operating expenses for the third quarter of 2020 were
Net loss for the third quarter of 2020 was
The balance of cash, cash equivalents and short-term investments as of
Outlook
As previously announced, due to the continued uncertainties resulting from the impact of COVID-19,
Non-GAAP Measures vs. GAAP Financial Measures
This release contains financial measures that are not calculated in accordance with
The Company uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. The Company believes that these non-GAAP financial measures are useful to investors as they reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.
Webcast and Conference Call Information
A replay of the conference call may be accessed one to two hours after the call at www.intersectENT.com or via phone at 877-344-7529 or 412-317-0088 for international callers. The reference number to enter the replay of the call is 10148945. The dial-in replay will be available for a week after the call and via the internet for approximately one month.
About
For additional information on the Company or the products including risks and benefits please visit www.IntersectENT.com. For more information about PROPEL® (mometasone furoate) sinus implants and SINUVA® (mometasone furoate) sinus implant, please visit www.PROPELOPENS.com and www.SINUVA.com.
Intersect ENT®, PROPEL® and SINUVA® are registered trademarks of
About Fiagon
Fiagon develops and manufactures state-of-the-art surgical navigation equipment with its proprietary tip-tracked technology. Over the past ten years Fiagon, along with world-renowned physicians, changed the standard of ENT navigation with its easy-to-use electromagnetic based technology. This unique technology is also currently used outside the
Forward-Looking Statements
The statements in this press release regarding Intersect ENT’s expectations that continued increases in elective sinus procedures will drive sequential revenue growth for the remainder of 2020, that gross margin will steadily improve as and to the extent volume and production return to normal levels, and that it expects to improve its overall operating cash burn rate as a result of its cost reduction efforts and higher than anticipated revenues in 2020, as well as the statements under the caption “Outlook”, are “forward-looking” statements. These forward-looking statements are based on Intersect ENT’s current expectations and inherently involve significant risks and uncertainties. These statements and risks include: the duration and severity of the COVID-19 pandemic is unknown and could continue, and be more severe, than
Condensed Consolidated Statements of Operations (in thousands, except percentages and per share data) (unaudited) |
||||||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||||||
Revenue |
$ |
22,720 |
|
|
|
$ |
24,056 |
|
|
|
$ |
52,326 |
|
|
|
$ |
77,388 |
|
|
|
Cost of sales |
7,845 |
|
|
|
4,876 |
|
|
|
21,612 |
|
|
|
14,567 |
|
|
|||||
Gross profit |
14,875 |
|
|
|
19,180 |
|
|
|
30,714 |
|
|
|
62,821 |
|
|
|||||
Gross margin |
65 |
|
% |
|
80 |
|
% |
|
59 |
|
% |
|
81 |
|
% |
|||||
Operating expenses: |
|
|
|
|
|
|
|
|||||||||||||
Selling, general and administrative |
21,702 |
|
|
|
26,429 |
|
|
|
67,399 |
|
|
|
81,247 |
|
|
|||||
Research and development |
4,551 |
|
|
|
6,145 |
|
|
|
13,715 |
|
|
|
18,452 |
|
|
|||||
Total operating expenses |
26,253 |
|
|
|
32,574 |
|
|
|
81,114 |
|
|
|
99,699 |
|
|
|||||
Loss from operations |
(11,378 |
) |
|
|
(13,394 |
) |
|
|
(50,400 |
) |
|
|
(36,878 |
) |
|
|||||
Interest expense |
(886 |
) |
|
|
— |
|
|
|
(1,372 |
) |
|
|
— |
|
|
|||||
Other income (expense), net |
799 |
|
|
|
546 |
|
|
|
(350 |
) |
|
|
1,841 |
|
|
|||||
Net loss |
$ |
(11,465 |
) |
|
|
$ |
(12,848 |
) |
|
|
$ |
(52,122 |
) |
|
|
$ |
(35,037 |
) |
|
|
Net loss per share, basic and diluted |
$ |
(0.35 |
) |
|
|
$ |
(0.41 |
) |
|
|
$ |
(1.60 |
) |
|
|
$ |
(1.12 |
) |
|
|
Weighted average common shares used to compute net loss per share, basic and diluted |
32,695 |
|
|
|
31,483 |
|
|
|
32,552 |
|
|
|
31,256 |
|
|
|||||
Condensed Consolidated Balance Sheets (in thousands) (unaudited) |
||||||||
|
|
|
|
|||||
Assets |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash, cash equivalents and short-term investments |
$ |
130,706 |
|
|
$ |
90,638 |
|
|
Accounts receivable, net |
11,880 |
|
|
19,113 |
|
|||
Inventories, net |
11,158 |
|
|
17,000 |
|
|||
Prepaid expenses and other current assets |
2,921 |
|
|
2,300 |
|
|||
Total current assets |
156,665 |
|
|
129,051 |
|
|||
Property and equipment, net |
5,555 |
|
|
6,312 |
|
|||
Operating lease right-of-use assets |
10,357 |
|
|
11,980 |
|
|||
Other non-current assets |
560 |
|
|
559 |
|
|||
Total assets |
$ |
173,137 |
|
|
$ |
147,902 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
4,589 |
|
|
$ |
4,056 |
|
|
Accrued compensation |
10,839 |
|
|
12,717 |
|
|||
Other current liabilities |
4,349 |
|
|
2,163 |
|
|||
Total current liabilities |
19,777 |
|
|
18,936 |
|
|||
Operating lease liabilities |
8,985 |
|
|
10,886 |
|
|||
Convertible notes, net |
62,975 |
|
|
— |
|
|||
Other non-current liabilities |
22 |
|
|
22 |
|
|||
Total liabilities |
91,759 |
|
|
29,844 |
|
|||
Total stockholders’ equity |
81,378 |
|
|
118,058 |
|
|||
Total liabilities and stockholders’ equity |
$ |
173,137 |
|
|
$ |
147,902 |
|
|
Reconciliation of Condensed Consolidated GAAP Financial Measures to Non-GAAP Financial Measures (in thousands, except per share data) (unaudited) |
||||||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||||||
Non-GAAP Net Loss |
|
|
|
|
|
|
|
|||||||||||||
Net Loss, as reported (GAAP) |
$ |
(11,465 |
) |
|
|
$ |
(12,848 |
) |
|
|
$ |
(52,122 |
) |
|
|
$ |
(35,037 |
) |
|
|
Loss (gain) on embedded derivatives |
(1,001 |
) |
|
|
— |
|
|
|
795 |
|
|
|
— |
|
|
|||||
Transaction costs |
1,461 |
|
|
|
— |
|
|
|
1,866 |
|
|
|
— |
|
|
|||||
Restructuring costs |
— |
|
|
|
— |
|
|
|
242 |
|
|
|
— |
|
|
|||||
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted Net Loss (non-GAAP) |
$ |
(11,005 |
) |
|
|
$ |
(12,848 |
) |
|
|
$ |
(49,219 |
) |
|
|
$ |
(35,037 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Basic and Diluted Net Loss per Share: |
|
|
|
|
|
|
|
|||||||||||||
Net Loss per share, as reported (GAAP) |
$ |
(0.35 |
) |
|
|
$ |
(0.41 |
) |
|
|
$ |
(1.60 |
) |
|
|
$ |
(1.12 |
) |
|
|
Adjusted Net Loss per share (non-GAAP) |
$ |
(0.34 |
) |
|
|
$ |
(0.41 |
) |
|
|
$ |
(1.51 |
) |
|
|
$ |
(1.12 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Shares used to compute GAAP and Non-GAAP Basic and Diluted Net Loss per Share |
32,695 |
|
|
|
31,483 |
|
|
|
32,552 |
|
|
|
31,256 |
|
|
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20201102005291/en/
ir@intersectENT.com
Source: