Entellus Medical Announces First Quarter 2017 Financial Results
May 03 2017 - 4:03PM
Entellus Medical, Inc. (NASDAQ: ENTL), a medical technology company
focused on delivering superior patient and physician experiences
through products designed for the minimally invasive treatment of
chronic and recurrent sinusitis patients, today reported its
financial results for the quarter ended March 31, 2017.
Recent Highlights and Accomplishments
- Revenue of $19.1 million in the first quarter of 2017, an
increase of 13% year-over-year
- In-office revenue represented 58% of U.S. product revenue in
the first quarter
- Received 510(k) clearance from the FDA and CE Mark for use of
the XprESS ENT Dilation System in patients with persistent
Eustachian tube dysfunction (ETD)
- Strengthened balance sheet with secondary offering and entered
into a new credit facility, expanding borrowing capacity to up to
$50.0 million
“Our first quarter performance was again marked by strong sales
to physicians’ offices and our balloon business performed
well. Overall revenues came in at the low end of our guidance
range as sales of certain capital equipment products were lighter
than expected,” said Robert White, President and Chief Executive
Officer of Entellus Medical. “With our broad product offering and
execution of key initiatives, I am confident in the business and
our ability to accelerate revenue growth throughout the remainder
of 2017.”
First Quarter 2017 Financial ResultsRevenue for
the first quarter increased 13% to $19.1 million from $16.9 million
during the same period of the prior year. The growth in revenue was
attributable to increased sales of the Company’s XprESS family of
products and strong sales of new products with the exception of
certain capital products due to an unexpected slowdown in purchases
at the end of the quarter. Foreign currency exchange rates
negatively impacted revenue by approximately $0.1 million for the
quarter.
Gross margin for the first quarter of 2017 was 74.4%, compared
to 76.3% for the same period in 2016. Gross margin was
impacted by product mix and continued geographic expansion.
Operating expenses for the first quarter of 2017 were $22.0
million, an increase of 14% compared to $19.3 million for the same
period of the prior year. The increase in operating expenses was
primarily due to increased employee-related expenses resulting from
the expansion of the Company’s sales and corporate staff, including
stock-based compensation expense of $1.8 million compared to $1.2
million in the same period of 2016. The first quarter
operating expenses also included the Company’s annual global sales
training meeting and the launch of new products.
Net loss for the quarter ended March 31, 2017 was $8.3 million,
or $0.40 per share, compared with a net loss of $6.9 million, or
$0.37 per share, for the same period of the prior year.
In January 2017, the Company completed an underwritten public
offering raising net proceeds of over $45 million for the
Company. In March 2017, the Company entered into a new credit
facility allowing it to borrow up to a total of $40.0 million in
term loans and up to $10.0 million under a revolving line of
credit, subject to a borrowing base requirement.
Entellus Medical ended the first quarter of 2017 with $68.2
million in cash, cash equivalents, and short-term investments.
2017 Financial Outlook Entellus Medical expects
full year 2017 revenue will be in a range of $86.0 million to
$89.0 million, representing growth of 14% to 18% over 2016 revenue.
This compares to our previous annual revenue expectation for 2017
of $86.0 million to $90.0 million and previous growth expectations
of 14% to 20%. Gross margin is expected to be in a range of
72% to 74% for the full year 2017. Full year 2017 net loss is
expected to be in a range of $24.0 million to $32.0
million.
Entellus Medical expects second quarter 2017 revenue will be at
the lower end of its projected annual revenue growth range with
revenues ranging from $20.7 million to $21.7 million, representing
growth of 11% to 16% over the second quarter of 2016. Gross margin
is expected to be in a range of 72% to 74% for the second quarter
of 2017. Second quarter 2017 net loss is expected to be in a range
of $7.0 million to $9.0 million.
Webcast and Conference Call Information The
Company’s management team will host a corresponding conference call
beginning today at 3:30pm CT/4:30pm ET to discuss the financial
results and recent business developments. Individuals interested in
listening to the conference call may do so by dialing (877)
930-5751 for domestic callers or (253) 336-7277 for international
callers, using Conference ID: 97479321. To listen to a live webcast
or a replay, please visit the investor relations section of the
Entellus Medical website at: www.entellusmedical.com.
About Entellus Medical, Inc. Entellus Medical
is a medical technology company focused on delivering superior
patient and physician experiences through products designed for the
minimally invasive treatment of patients. Entellus products
are used for the treatment of adult and pediatric patients with
chronic and recurrent sinusitis, as well as adult patients with
persistent Eustachian tube dysfunction. The Entellus Medical
platform of products provides effective and easy-to-use solutions
intended to help simplify everything from diagnosis and patient
selection, to complex case revisions and post-operative care.
Entellus Medical’s core product lines, XprESS™ ENT Dilation System,
MiniFESS™ Surgical Instruments, XeroGel Nasal Dressing and FocESS™
Imaging & Navigation, combine to enable ENT physicians to
conveniently and comfortably perform a broad range of procedures in
the office and simplify treatment based in the operating room.
Entellus Medical is committed to broadening its product portfolio
with high-quality and purposeful innovations for the global ENT
market.
Forward-Looking StatementsAll statements
contained in this press release that do not relate to matters of
historical fact should be considered forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements generally can be identified by
the use of words such as “expect,” “anticipate,” “could,” “may,”
“intend,” “will,” “continue,” “outlook,” “guidance,” “future,”
“look forward,” other words of similar meaning and the use of
future dates. Forward-looking statements in this release
include the Company’s financial guidance for the second quarter and
full year 2017 and expectations for accelerating revenue growth
throughout the remainder of 2017. These forward-looking statements
are based on the current expectations of Entellus Medical's
management and involve known and unknown risks and uncertainties
that may cause Entellus Medical's actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Such risks and uncertainties include,
among others, the dependence of the Company’s net sales on its
XprESS family of products, future market acceptance and adoption of
such products and adequate levels of coverage or reimbursement for
procedures using such products; the Company’s ability to
successfully develop and commercialize new ENT products and future
market acceptance and third party reimbursement for such products;
competition; ability to expand, manage and maintain its direct
sales organization and market and sell its products in the United
States and internationally; risks and uncertainties involved in its
international operations; the compliance of its products and
activities with the laws and regulations of the countries in which
they are marketed; failure or delay in obtaining FDA or other
regulatory approvals or the effect of FDA or other regulatory
actions; the Company’s ability to manage its anticipated growth;
risk of product recalls, product liability claims and litigation
and inadequate insurance coverage relating thereto; intellectual
property disputes; loss of key suppliers; inadequacy of capital
resources and inability to raise additional financing when needed
and on favorable terms. Other factors that could cause actual
results to differ materially from those contemplated in this press
release can be found under the caption “Risk Factors” in the
Company's Securities and Exchange Commission (SEC) reports,
including its Annual Report on Form 10-K for the year ended
December 31, 2016, filed with the SEC and its Quarterly Report on
Form 10-Q for the quarter ended March 31, 2017, which the Company
intends to file with the SEC. Entellus Medical undertakes no
obligation to update or revise any forward-looking statements, even
if subsequent events cause its views to change.
Entellus Medical, Inc. |
Condensed Consolidated Statements of
Operations |
(in thousands, except per share
data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
March 31, |
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
Revenue |
$ |
19,106 |
|
|
$ |
16,902 |
|
|
|
Cost of
goods sold |
|
4,896 |
|
|
|
4,000 |
|
|
|
|
Gross
profit |
|
14,210 |
|
|
|
12,902 |
|
|
|
|
Gross
margin |
|
74.4 |
% |
|
|
76.3 |
% |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
Selling and
marketing |
|
15,274 |
|
|
|
13,407 |
|
|
|
|
Research
and development |
|
2,103 |
|
|
|
1,912 |
|
|
|
|
General and
administrative |
|
4,664 |
|
|
|
3,949 |
|
|
|
|
|
Total operating
expenses |
|
22,041 |
|
|
|
19,268 |
|
|
|
Loss from
operations |
|
(7,831 |
) |
|
|
(6,366 |
) |
|
|
Other
expense, net |
|
(504 |
) |
|
|
(506 |
) |
|
|
Loss before
income tax expense |
|
(8,335 |
) |
|
|
(6,872 |
) |
|
|
Income tax
expense |
|
(3 |
) |
|
|
- |
|
|
|
Net
loss |
$ |
(8,338 |
) |
|
$ |
(6,872 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss
per share, basic and diluted |
$ |
(0.40 |
) |
|
$ |
(0.37 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares |
|
|
|
|
|
used to
compute net loss per share, |
|
|
|
|
|
basic and
diluted |
|
20,876 |
|
|
|
18,801 |
|
|
|
|
|
|
|
|
|
|
Entellus Medical, Inc. |
Condensed Consolidated Balance
Sheets |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
Assets |
2017 |
|
2016 |
|
Current
assets |
|
|
|
|
|
Cash and
cash equivalents |
$ |
65,189 |
|
$ |
21,417 |
|
|
Short-term
investments |
|
3,003 |
|
|
10,845 |
|
|
Accounts
receivable, net |
|
13,842 |
|
|
13,631 |
|
|
Inventories |
|
7,324 |
|
|
7,226 |
|
|
Prepaid
expenses and other current assets |
|
1,852 |
|
|
1,787 |
|
|
|
Total current
assets |
|
91,210 |
|
|
54,906 |
|
Property
and equipment, net |
|
6,571 |
|
|
6,487 |
|
Intangible
assets, net |
|
9,662 |
|
|
9,840 |
|
Goodwill |
|
477 |
|
|
477 |
|
Other
non-current assets |
|
235 |
|
|
379 |
|
|
Total
assets |
$ |
108,155 |
|
$ |
72,089 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity |
|
|
|
|
Current
liabilities |
|
|
|
|
|
Accounts
payable |
$ |
2,561 |
|
$ |
2,796 |
|
|
Accrued
expenses |
|
9,379 |
|
|
13,005 |
|
|
Revolving
credit facility |
|
8,000 |
|
|
- |
|
|
Current
portion of long-term debt |
|
- |
|
|
9,118 |
|
|
|
Total current
liabilities |
|
19,940 |
|
|
24,919 |
|
Long-term
liabilities |
|
|
|
|
|
Long-term
debt, less current portion |
|
13,154 |
|
|
10,766 |
|
|
Other
non-current liabilities |
|
116 |
|
|
959 |
|
|
|
Total liabilities |
|
33,210 |
|
|
36,644 |
|
Total
stockholders' equity |
|
74,945 |
|
|
35,445 |
|
|
Total
liabilities and stockholders' equity |
$ |
108,155 |
|
$ |
72,089 |
|
|
|
|
|
|
|
Contact: Lynn Pieper Lewis
415-937-5402
ir@entellusmedical.com
ENTELLUS MEDICAL INC (NASDAQ:ENTL)
Historical Stock Chart
From Jun 2024 to Jul 2024
ENTELLUS MEDICAL INC (NASDAQ:ENTL)
Historical Stock Chart
From Jul 2023 to Jul 2024