Fourth Quarter Highlights:
- Revenue of
$32.2 million compared to$30.3 million in the prior year period- Diabetes revenue increased 2% compared to the prior year
- Other medical revenue increased 36.1% over the prior year period
- Gross profit margin of 25.2%, compared to 25.7% in the prior year period
- Net income of
$0.00 per diluted share versus net income of$0.12 per diluted share in the prior year period - Cash and investment securities of
$29.6 million as ofDecember 31, 2021
Full Year Financial Highlights:
- Revenue of
$125.2 million compared to$102.8 million in the prior year- Diabetes revenue increased 17.6% year-over-year
- Interventional catheters revenue increased 98.0%, which included a full year contribution from the acquisition of EMS in
May 2020 - Other medical revenue increased 13.9% year-over-year
- Gross profit margin of 25.1%, compared to 25.5% in the prior year
- Net loss per diluted share of
$0.01 versus net loss of$0.28 per diluted share in the prior year
“The Intricon team delivered another strong quarter, demonstrating continued high-level execution and consistent growth throughout an undoubtedly challenging time. We saw expansion throughout our core markets, which led to another period of year-over-year and sequential revenue improvement," said
Fourth Quarter 2021 Financial Results
Revenue
For the 2021 fourth quarter, the company reported net revenue of
Revenue in Intricon’s Medical business was
Hearing Health revenue was
Gross Profit Margin and Operating Expenses
Gross profit margin in the fourth quarter of 2021 was 25.2%, compared to 25.7% in the prior-year fourth quarter, primarily due to product mix as well as supply chain inefficiencies.
Operating expenses for the fourth quarter were
GAAP Net Income
GAAP net income was
Non-GAAP Adjusted Net Income
Non-GAAP adjusted net income was
Full Year 2021 Financial Results
Revenue
For 2021, the company reported net revenue of
Revenue in Intricon’s Medical business was
Hearing Health revenue was
Gross Profit Margin and Operating Expenses
Gross profit margin in 2021 was 25.1%, compared to 25.5% in 2020, reflecting supply chain and labor market inefficiencies throughout 2021, partially offset by higher revenue volumes.
Operating expenses for 2021 were
GAAP Net Loss
GAAP net loss was
Non-GAAP Adjusted Net Income
Non-GAAP adjusted net income was
Cash, Cash Equivalents, and Short-term Investments
Total cash, cash equivalents and short-term investments, was
Altaris Capital Partners Transaction
Earlier today,
In light of this pending transaction,
About Intricon Corporation
Use of non-GAAP Adjusted Financial Measures
This press release contains financial measures that have not been calculated in accordance with accounting principles generally accepted in the
- Adjusted net income
- Adjusted net income per diluted share
These non-GAAP financial measures reflect adjustments for expenses and gains that the company believes do not reflect the company’s core operating performance. The company has presented these non-GAAP financial measures because the company believes this presentation, when reconciled to the corresponding GAAP measures, provides useful information to investors in evaluating the company’s operational performance. Management uses these non-GAAP measures internally to evaluate our performance and in making financial, operational and planning decisions, including with respect to incentive compensation. The company believes that the presentation of these measures provides investors with greater transparency with respect to the company’s results of operations and that these measures are useful for period-to-period comparison of results and trends. The company further believes that the use of these non-GAAP financial measures provides an additional tool for investors in comparing the company’s financial results with the financial results of other companies.
The company periodically reassesses the components of non-GAAP adjustments for changes in how the company evaluates Intricon’s performance, changes in how the company makes financial and operational decisions, and considers the use of these measures by Intricon’s competitors and peers to ensure the adjustments are still relevant and meaningful.
Non-GAAP financial measures should not be used as a substitute for GAAP measures, or considered in isolation, for the purpose of analyzing our operating performance. The presentation of these non-GAAP financial measures should not be construed as an inference that future results will not be affected by similar items.
Forward-Looking Statements
Statements made in this release and in Intricon’s other public filings and releases that are not historical facts or
that include forward-looking terminology, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be affected by known and unknown risks, uncertainties and other factors that are beyond Intricon’s control, including without limitation, the impacts of the COVID-19 pandemic and measures taken in response, the closing of the proposed Altaris transaction does not occur and global economic or political conditions, including the outbreak or escalation of hostilities, and may cause Intricon’s actual results, performance or achievements to differ materially from the results, performance and achievements expressed or implied in the forward-looking statements. These risks, uncertainties and other factors are detailed from time to time in the company’s filings with the
Additional Information and Where to Find It
This communication does not constitute an offer to sell or the solicitation of an offer to buy the securities of
Participants in the Solicitation
Investor Contact
(415) 937-5404
investorrelations@intricon.com
MARKET REVENUE
(Unaudited)
FOURTH QUARTER | YEAR TO DATE | ||||||||||||||||
($ in 000's) | 2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||
Medical: | |||||||||||||||||
Diabetes | $ | 18,097 | $ | 17,742 | 2.0 | % | $ | 69,733 | $ | 59,311 | 17.6 | % | |||||
Interventional Catheters | 3,133 | 3,400 | -7.9 | % | 14,572 | 7,361 | 98.0 | % | |||||||||
Other Medical | 3,770 | 2,770 | 36.1 | % | 14,084 | 12,365 | 13.9 | % | |||||||||
Hearing Health: Hearing Health Value Based DTEC | 792 | 917 | -13.6 | % | 3,479 | 4,430 | -21.5 | % | |||||||||
Hearing Health Value Based ITEC | 2,195 | 1,670 | 31.4 | % | 8,048 | 5,558 | 44.8 | % | |||||||||
Hearing Health Legacy OEM | 2,613 | 2,524 | 3.5 | % | 10,848 | 8,968 | 21.0 | % | |||||||||
Other: | 1,573 | 1,278 | 23.1 | % | 4,442 | 4,780 | -7.1 | % | |||||||||
Total | $ | 32,173 | $ | 30,301 | 6.2 | % | $ | 125,206 | $ | 102,773 | 21.8 | % |
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three Months Ended | Twelve Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenue, net | $ | 32,173 | $ | 30,301 | $ | 125,206 | $ | 102,773 | |||||||
Cost of goods sold | 24,055 | 22,502 | 93,821 | 76,598 | |||||||||||
Gross profit | 8,118 | 7,799 | 31,385 | 26,175 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | 2,224 | 1,633 | 8,275 | 6,671 | |||||||||||
General and administrative | 4,587 | 3,334 | 16,579 | 15,007 | |||||||||||
Research and development | 1,540 | 1,380 | 5,315 | 5,248 | |||||||||||
Other operating expenses | (337 | ) | 407 | 729 | 660 | ||||||||||
Restructuring charges | - | - | - | 1,171 | |||||||||||
Acquisition costs | - | - | - | 493 | |||||||||||
Total operating expenses | 8,014 | 6,754 | 30,898 | 29,250 | |||||||||||
Operating income (loss) | 104 | 1,045 | 487 | (3,075 | ) | ||||||||||
Interest (expense) income, net | 11 | 9 | (21 | ) | 331 | ||||||||||
Other (expense) income, net | (134 | ) | 23 | (395 | ) | 316 | |||||||||
(Loss) Income before income taxes | (19 | ) | 1,077 | 71 | (2,428 | ) | |||||||||
Income tax (benefit) expense | (43 | ) | (33 | ) | 135 | 61 | |||||||||
Net income (loss) | 24 | 1,110 | (64 | ) | (2,489 | ) | |||||||||
Less: Income allocated to non-controlling interest | 2 | 18 | 42 | 35 | |||||||||||
Net income (loss) attributable to | $ | 22 | $ | 1,092 | $ | (106 | ) | $ | (2,524 | ) | |||||
Income (loss) per share attributable to Intricon Shareholders: | |||||||||||||||
Basic | $ | 0.00 | $ | 0.12 | $ | (0.01 | ) | $ | (0.28 | ) | |||||
Diluted | 0.00 | 0.12 | (0.01 | ) | (0.28 | ) | |||||||||
Average shares outstanding: | |||||||||||||||
Basic | 9,147 | 8,945 | 9,082 | 8,894 | |||||||||||
Diluted | 9,564 | 9,447 | 9,082 | 8,894 |
CONSOLIDATED BALANCE SHEET
(In Thousands, Except Per Share Amounts)
2021 | 2020 | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 5,584 | $ | 8,608 | |||
Restricted cash | 645 | 672 | |||||
Short-term investment securities | 19,420 | 19,793 | |||||
Accounts receivable, less provision for doubtful accounts of | 8,257 | 10,115 | |||||
Inventories | 24,456 | 19,513 | |||||
Contract assets | 11,455 | 9,107 | |||||
Other current assets | 4,564 | 1,466 | |||||
Total current assets | 74,381 | 69,274 | |||||
Machinery and equipment | 48,208 | 45,661 | |||||
Less: Accumulated depreciation | 34,371 | 31,484 | |||||
Net machinery and equipment | 13,837 | 14,177 | |||||
13,873 | 13,714 | ||||||
Intangible assets | 8,999 | 10,785 | |||||
Operating lease right-of-use assets, net | 5,138 | 6,701 | |||||
Investment in partnerships | 473 | 570 | |||||
Long-term investment securities | 4,558 | 5,085 | |||||
Other assets, net | 1,200 | 990 | |||||
Total assets | $ | 122,459 | $ | 121,296 | |||
Current liabilities: | |||||||
Current financing leases | $ | 4 | $ | 21 | |||
Current operating leases | 1,807 | 2,156 | |||||
Accounts payable | 9,398 | 8,670 | |||||
Accrued salaries, wages and commissions | 5,185 | 3,581 | |||||
Other accrued liabilities | 3,818 | 4,235 | |||||
Total current liabilities | 20,212 | 18,663 | |||||
Noncurrent operating leases | 3,431 | 4,726 | |||||
Pension and postretirement benefit obligations | 1,093 | 1,292 | |||||
Deferred tax liabilities, net | 873 | 1,018 | |||||
Other long-term liabilities | 3,100 | 4,398 | |||||
Total liabilities | 28,709 | 30,097 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity: | |||||||
Common stock, | 9,179 | 8,951 | |||||
Additional paid-in capital | 91,785 | 89,702 | |||||
Accumulated deficit | (6,916 | ) | (6,810 | ) | |||
Accumulated other comprehensive loss | (393 | ) | (679 | ) | |||
Total shareholders' equity | 93,655 | 91,164 | |||||
Non-controlling interest | 95 | 35 | |||||
Total equity | 93,750 | 91,199 | |||||
Total liabilities and equity | $ | 122,459 | $ | 121,296 |
Reconciliation of Adjusted Net Income (Loss) and Earnings Per Share
(Unaudited)
Three Months Ended | Fiscal Year Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Net loss - GAAP attributable to | $ | 22 | $ | 1,092 | $ | (106 | ) | $ | (2,524 | ) | |||||
Identified adjustments attributable to | |||||||||||||||
Depreciation (1) | 814 | 684 | 3,167 | 3,017 | |||||||||||
Amortization of intangibles (2) | 516 | 497 | 2,007 | 1,456 | |||||||||||
Stock-based compensation (3) | 436 | 338 | 1,925 | 1,982 | |||||||||||
Other amortization (4) | 119 | (6 | ) | 367 | 150 | ||||||||||
Legal settlement and related fees (5) | 13 | 229 | 1,468 | 530 | |||||||||||
Fair value of contingent consideration (6) | (350 | ) | 407 | (739 | ) | 660 | |||||||||
COVID-19 | (44 | ) | (193 | ) | (185 | ) | (779 | ) | |||||||
Executive transition costs (8) | 649 | - | 649 | 843 | |||||||||||
EMS acquisition costs (9) | - | - | - | 493 | |||||||||||
Restructuring charges (10) | - | - | - | 1,171 | |||||||||||
Non-GAAP adjusted net income attributable to | $ | 2,175 | $ | 3,048 | $ | 8,553 | $ | 6,999 | |||||||
Average basic shares outstanding | 9,147 | 8,945 | 9,082 | 8,894 | |||||||||||
Average diluted shares outstanding | 9,564 | 9,447 | 9,613 | 9,312 | |||||||||||
Non-GAAP adjusted net income attributable to | $ | 0.23 | $ | 0.32 | $ | 0.89 | $ | 0.75 | |||||||
(1) Depreciation represents the expense of property, plant and equipment. | |||||||||||||||
(2) These expenses represent amortization expenses of intangible assets. | |||||||||||||||
(3) Stock-based compensation represents expenses related to awards under the Company's equity incentive plans. | |||||||||||||||
(4) These expenses represent amortization of other assets. | |||||||||||||||
(5) The Company's subsidiary, | |||||||||||||||
(6) These expenses represent changes in the fair value of contingent consideration in the period for the purchase of EMS. | |||||||||||||||
(7) Singapore Government provided COVID-19 financial assistance to our | |||||||||||||||
(8) Executive transition costs include; (i) a payment of | |||||||||||||||
(9) In May of 2020, the Company acquired EMS and recorded | |||||||||||||||
(10) On | |||||||||||||||
(11) None of these adjustments have a material income tax impact. |
Source:
2022 GlobeNewswire, Inc., source