First Quarter 2024 Financial Results Summary:
- Net revenue of
$110.0 million for the first quarter of 2024, an increase of$2.3 million compared to net revenue of$107.6 million for the first quarter of 2023. Net revenue for the first quarter of 2024 consists of:- Net revenue from Advanced Wound Care products of
$103.9 million , an increase of 3% from the first quarter of 2023. - Net revenue from Surgical & Sports Medicine products of
$6.1 million , a decrease of 9% from the first quarter of 2023.
- Net revenue from Advanced Wound Care products of
- Net loss of
$2.1 million for the first quarter of 2024, compared to a net loss of$3.0 million for the first quarter of 2023, a decrease in net loss of$0.9 million . - Adjusted net loss1 of
$1.4 million for the first quarter of 2024, compared to an adjusted net loss of$0.7 million for the first quarter of 2023, an increase in adjusted net loss of$0.8 million . - Adjusted EBITDA of
$2.6 million for the first quarter of 2024, compared to Adjusted EBITDA of$3.8 million for the first quarter of 2023, a decrease of$1.2 million .
"We delivered a strong start to 2024 with first quarter revenue exceeding the high-end of our revenue guidance," said
First Quarter 2024 Financial Results:
Three Months Ended | Change | |||||||||||||||
2024 | 2023 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Advanced Wound Care | $ | 103,864 | $ | 100,917 | $ | 2,947 | 3 | % | ||||||||
Surgical & Sports Medicine | 6,112 | 6,725 | (613 | ) | (9 | %) | ||||||||||
Net revenue | $ | 109,976 | $ | 107,642 | $ | 2,334 | 2 | % | ||||||||
Net revenue for the first quarter of 2024 was
Gross profit for the first quarter of 2024 was
Operating expenses for the first quarter of 2024 were
Operating loss for the first quarter of 2024 was
Total other expense, net, for the first quarter of 2024 was
Net loss for the first quarter of 2024 was
Adjusted net loss of
Adjusted EBITDA was
As of
Fiscal Year 2024 Guidance:
For the year ending
- Net revenue between
$445.0 million and$470.0 million , representing an increase of approximately 3% to 9% year-over-year, as compared to net revenue of$433.1 million for the year endedDecember 31, 2023 .- The 2024 net revenue guidance range assumes:
- Net revenue from Advanced Wound Care products between
$415.0 million and$435.0 million , an increase of 2% to 7% year-over-year as compared to net revenue of$405.5 million for the year endedDecember 31, 2023 . - Net revenue from Surgical & Sports Medicine products between
$30.0 million and$35.0 million , an increase of 9% to 27% year-over-year as compared to net revenue of$27.6 million for the year endedDecember 31, 2023 .
- Net revenue from Advanced Wound Care products between
- The 2024 net revenue guidance range assumes:
- Net (loss) income between
($10.6) million and$4.6 million and adjusted net (loss) income between($8.1) million and$7.1 million . - EBITDA between
$5.8 million and$25.0 million and Adjusted EBITDA between$15.8 million and$35.0 million .
First Quarter Earnings Conference Call:
Management will host a conference call at
UNAUDITED CONSOLIDATED BA (amounts in thousands, except share and per share data) | ||||||||
2024 | 2023 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 88,626 | $ | 103,840 | ||||
Restricted cash | 720 | 498 | ||||||
Accounts receivable, net | 96,148 | 81,999 | ||||||
Inventories, net | 27,694 | 28,253 | ||||||
Prepaid expenses and other current assets | 13,979 | 10,454 | ||||||
Total current assets | 227,167 | 225,044 | ||||||
Property and equipment, net | 114,245 | 116,228 | ||||||
Intangible assets, net | 14,970 | 15,871 | ||||||
28,772 | 28,772 | |||||||
Operating lease right-of-use assets, net | 38,616 | 40,118 | ||||||
Deferred tax asset, net | 28,002 | 28,002 | ||||||
Other assets | 6,709 | 5,990 | ||||||
Total assets | $ | 458,481 | $ | 460,025 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Current portion of term loan | $ | 5,489 | $ | 5,486 | ||||
Current portion of finance lease obligations | 1,103 | 1,081 | ||||||
Current portion of operating lease obligations - related party | 8,543 | 8,413 | ||||||
Current portion of operating lease obligations | 4,675 | 4,731 | ||||||
Accounts payable | 23,230 | 30,724 | ||||||
Accrued expenses and other current liabilities | 39,759 | 30,074 | ||||||
Total current liabilities | 82,799 | 80,509 | ||||||
Term loan, net of current portion | 59,371 | 60,745 | ||||||
Finance lease obligations, net of current portion | 1,604 | 1,888 | ||||||
Operating lease obligations, net of current portion - related party | 11,052 | 11,954 | ||||||
Operating lease obligations, net of current portion | 24,383 | 25,053 | ||||||
Other liabilities | 1,242 | 1,213 | ||||||
Total liabilities | 180,451 | 181,362 | ||||||
Commitments and contingencies (Note 14) | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, | — | — | ||||||
Common stock, | 13 | 13 | ||||||
Additional paid-in capital | 321,088 | 319,621 | ||||||
Accumulated deficit | (43,071 | ) | (40,971 | ) | ||||
Total stockholders’ equity | 278,030 | 278,663 | ||||||
Total liabilities and stockholders’ equity | $ | 458,481 | $ | 460,025 |
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (amounts in thousands, except share and per share data) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Net revenue | $ | 109,976 | $ | 107,642 | ||||
Cost of goods sold | 28,696 | 26,607 | ||||||
Gross profit | 81,280 | 81,035 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | 72,322 | 73,834 | ||||||
Research and development | 12,810 | 11,202 | ||||||
Total operating expenses | 85,132 | 85,036 | ||||||
Loss from operations | (3,852 | ) | (4,001 | ) | ||||
Other expense, net: | ||||||||
Interest expense, net | (514 | ) | (649 | ) | ||||
Other income, net | 23 | 23 | ||||||
Total other expense, net | (491 | ) | (626 | ) | ||||
Net loss before income taxes | (4,343 | ) | (4,627 | ) | ||||
Income tax benefit | 2,243 | 1,658 | ||||||
Net loss and comprehensive loss | $ | (2,100 | ) | $ | (2,969 | ) | ||
Net loss, per share: | ||||||||
Basic and diluted | $ | (0.02 | ) | $ | (0.02 | ) | ||
Weighted-average common shares outstanding | ||||||||
Basic and diluted | 131,861,772 | 131,083,841 |
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS (amounts in thousands, except share and per share data) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (2,100 | ) | $ | (2,969 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation | 3,072 | 2,694 | ||||||
Amortization of intangible assets | 901 | 1,230 | ||||||
Reduction in the carrying value of right-of-use assets | 2,203 | 1,939 | ||||||
Non-cash interest expense | 105 | 107 | ||||||
Deferred interest expense | 122 | 122 | ||||||
Provision recorded for credit losses | 968 | 243 | ||||||
Loss on disposal of property and equipment | 347 | 63 | ||||||
Adjustment for excess and obsolete inventories | 2,515 | 1,407 | ||||||
Stock-based compensation | 2,407 | 1,914 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (15,117 | ) | (3,429 | ) | ||||
Inventories | (4,670 | ) | (2,163 | ) | ||||
Prepaid expenses and other current assets and other assets | (4,315 | ) | (4,774 | ) | ||||
Operating leases | (2,199 | ) | (2,122 | ) | ||||
Accounts payable | (4,391 | ) | (1,390 | ) | ||||
Accrued expenses and other current liabilities | 9,962 | 2,029 | ||||||
Other liabilities | 28 | 22 | ||||||
Net cash used in operating activities | (10,162 | ) | (5,077 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (2,222 | ) | (7,562 | ) | ||||
Net cash used in investing activities | (2,222 | ) | (7,562 | ) | ||||
Cash flows from financing activities: | ||||||||
Payments of term loan under the 2021 Credit Agreement | (1,406 | ) | (938 | ) | ||||
Payments of withholding taxes in connection with RSUs vesting | (1,120 | ) | (298 | ) | ||||
Proceeds from the exercise of stock options | 180 | - | ||||||
Principal repayments of finance lease obligations | (262 | ) | - | |||||
Net cash used in financing activities | (2,608 | ) | (1,236 | ) | ||||
Change in cash, cash equivalents and restricted cash | (14,992 | ) | (13,875 | ) | ||||
Cash, cash equivalents, and restricted cash, beginning of period | 104,338 | 103,290 | ||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 89,346 | $ | 89,415 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 1,375 | $ | 1,271 | ||||
Cash paid for income taxes | $ | 35 | $ | 128 | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Cumulative effect adjustment for adoption of ASU No. 2016-13 (Note 2) | $ | — | $ | 615 | ||||
Purchases of property and equipment included in accounts payable and accrued expenses | $ | 786 | $ | 1,986 | ||||
Right-of-use assets obtained through operating lease obligations | $ | 701 | $ | 1,586 | ||||
Non-GAAP Financial Measures
Our management uses financial measures that are not in accordance with generally accepted accounting principles in
The following table presents a reconciliation of GAAP net loss to non-GAAP EBITDA and non-GAAP Adjusted EBITDA, for the periods presented:
` | Three Months Ended | |||||||
2024 | 2023 | |||||||
(Unaudited, in thousands) | ||||||||
Net loss | $ | (2,100 | ) | $ | (2,969 | ) | ||
Interest expense, net | 514 | 649 | ||||||
Income tax benefit | (2,243 | ) | (1,658 | ) | ||||
Depreciation | 3,072 | 2,694 | ||||||
Amortization | 901 | 1,230 | ||||||
EBITDA | 144 | (54 | ) | |||||
Stock-based compensation expense | 2,407 | 1,914 | ||||||
Restructuring charge (1) | — | 1,908 | ||||||
Adjusted EBITDA | $ | 2,551 | $ | 3,768 |
(1) Amount reflects employee severance, retention and benefits as well as other exit costs associated with the Company’s restructuring activities.
The following table presents a reconciliation of GAAP net loss to non-GAAP adjusted net loss, for the periods presented:
Three Months Ended | ||||||||
2024 | 2023 | |||||||
(Unaudited, in thousands) | ||||||||
Net loss | $ | (2,100 | ) | $ | (2,969 | ) | ||
Amortization | 901 | 1,230 | ||||||
Restructuring charge (1) | — | 1,908 | ||||||
Tax on above | (243 | ) | (839 | ) | ||||
Adjusted net loss | $ | (1,442 | ) | $ | (670 | ) |
(1) Amount reflects employee severance, retention and benefits as well as other exit costs associated with the Company’s restructuring activities.
The following table presents a reconciliation of projected GAAP net (loss) income to projected non-GAAP EBITDA and projected non-GAAP Adjusted EBITDA included in our guidance for the year ending
Year Ended | ||||||||
2024L | 2024H | |||||||
Net (loss) income | $ | (10,565 | ) | $ | 4,616 | |||
Interest expense, net | 3,000 | 2,200 | ||||||
Income tax expense | 308 | 5,061 | ||||||
Depreciation | 9,680 | 9,680 | ||||||
Amortization | 3,400 | 3,400 | ||||||
EBITDA | $ | 5,823 | $ | 24,957 | ||||
Stock-based compensation expense | 10,000 | 10,000 | ||||||
Adjusted EBITDA | $ | 15,823 | $ | 34,957 | ||||
The following table presents a reconciliation of projected GAAP net (loss) income to projected non-GAAP adjusted net (loss) income included in our guidance for the year ending
Year Ending | ||||||||
2024L | 2024H | |||||||
Net (loss) income | $ | (10,565 | ) | $ | 4,616 | |||
Amortization | 3,400 | 3,400 | ||||||
Tax on above | (918 | ) | (918 | ) | ||||
Adjusted net (loss) income | $ | (8,083 | ) | $ | 7,098 | |||
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include statements relating to the Company’s expected revenue, net income, adjusted net income, EBITDA, and Adjusted EBITDA for fiscal 2024 and the breakdown of expected revenue in both its Advanced Wound Care and Surgical & Sports Medicine categories. Forward-looking statements with respect to the operations of the Company, strategies, prospects, and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. These factors include, but are not limited to: (1) the impact of any changes to the coverage and reimbursement levels for the Company’s products (including as a result of the recently proposed LCDs); (2) the Company faces significant and continuing competition, which could adversely affect its business, results of operations and financial condition; (3) rapid technological change could cause the Company’s products to become obsolete and if the Company does not enhance its product offerings through its research and development efforts, it may be unable to effectively compete; (4) to be commercially successful, the Company must convince physicians that its products are safe and effective alternatives to existing treatments and that its products should be used in their procedures; (5) the Company’s ability to raise funds to expand its business; (6) the Company has incurred losses in the current period and prior periods and may incur losses in the future; (7) changes in applicable laws or regulations; (8) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (9) the Company’s ability to maintain production or obtain supply of its products in sufficient quantities to meet demand; (10) any resurgence of the COVID-19 pandemic and its impact, if any, on the Company’s fiscal condition and results of operations; (11) the impact of the suspension of commercialization of: (a) ReNu and NuCel in connection with the expiration of the FDA’s enforcement grace period for HCT/Ps on
About
Investor Inquiries:Westwicke Partners Mike Piccinino , CFA OrganoIR@westwicke.com 443-213-0500 Press and Media Inquiries: Organogenesis communications@organo.com
Source:
2024 GlobeNewswire, Inc., source