Wednesday, March 2, 2016

News: LDR Holding Corporation Reports Record Revenue for Fourth Quarter and Fiscal Year 2015

Image result for ldr holdingsAUSTIN, Texas, Feb. 17, 2016 (GLOBE NEWSWIRE) -- LDR Holding Corporation (NASDAQ:LDRH), a global medical device company focused on designing and commercializing novel and proprietary surgical technologies for the treatment of patients suffering from spine disorders, today reported its financial results for the fourth quarter and fiscal year ended December 31, 2015. 

Fourth Quarter and Fiscal Year 2015 Highlights
  • Total revenue in the fourth quarter of 2015 increased 12.7% to $44.5 million, or 16.2% on a constant currency basis compared to the fourth quarter of 2014.
  • For fiscal year 2015, total revenue increased 16.4% to $164.5 million, or 21.3% on a constant currency basis compared to fiscal year 2014.
  • Revenue from exclusive technology products in the fourth quarter of 2015 grew 15.9% to $41.6 million, or 18.3% on a constant currency basis compared to the fourth quarter of 2014.
  • For fiscal year 2015, revenue from exclusive technology products grew 21.9% to $152.4 million, or 25.4% on a constant currency basis compared to fiscal year 2014.
  • Revenue in the United States increased 15.4% to $36.9 million in the fourth quarter of 2015, compared to the fourth quarter of 2014, and represented 82.9% of total revenue.
  • For fiscal year 2015, revenue in the United States increased 22.1% to $133.8 million, compared to fiscal year 2014.
  • As of December 31, 2015, LDR had $115.1 million in cash and cash equivalents, $148.0 million in working capital (including cash and cash equivalents) and $5.8 million in debt.

Revenue from exclusive cervical products grew 26.0%, or 28.6% on a constant currency basis, in the fourth quarter of 2015 to $32.1 million, compared to the fourth quarter of 2014. For fiscal year 2015, revenue from exclusive cervical products grew 31.9%, or 35.9% on a constant currency basis, to $114.8 million, compared to fiscal year 2014.

The performance during the fourth quarter and full year was primarily driven by the continued strong growth of Mobi-C® and successful cross-selling of ROI-C®, supporting the effectiveness of the Company's strategy to gain market share in the cervical spine segment. 

Christophe Lavigne, President and Chief Executive Officer of LDR, commented, “We finished 2015 with a record quarter in revenue led by strong growth in our exclusive cervical technology products, and a record quarter for Mobi-C. As our results demonstrate, we are increasingly being recognized as a leader in bringing global cervical solutions to surgeons with both non-fusion and fusion technologies. With our exclusive lumbar products, we continued our progress on the clinical evaluation and development of our Minimal Implant Volume (MIVo) products during the fourth quarter, which we believe will support our long-term strategy to penetrate the lumbar market.”

Mr. Lavigne added, “We are pleased that our first two peer-reviewed papers with five-year patient outcome data for our unique Mobi-C technology were recently published. The first, in the Journal of Neurosurgery: Spine, shows a lower rate of subsequent surgeries for Mobi-C versus fusion and the second, in Neurosurgery, demonstrates the cost effectiveness of two-level cervical disc replacement. We are encouraged by these recent developments as both publications add to the growing weight of clinical evidence supporting cervical disc replacement and Mobi-C, in particular. We believe the increasing availability of long-term publications, along with the updated NASS coverage recommendation in support of both one and two-level cervical disc replacement, will drive continued penetration of cervical disc replacement into the estimated $1.2 billion U.S. cervical fusion market.”

Additional Financial Highlights
International revenue increased 1.0% during the fourth quarter of 2015 to $7.6 million, or 19.4% on a constant currency basis compared to the fourth quarter of 2014. For fiscal year 2015, international revenue decreased 3.3% to $30.6 million, or increased 18.5% on a constant currency basis compared to fiscal year 2014.
Gross profit for the fourth quarter of 2015 was $36.6 million and gross margin was 82.3%, compared to gross profit of $32.7 million and gross margin of 82.7% for the fourth quarter of 2014. Gross profit for the year ended December 31, 2015 was $137.2 million and gross margin was 83.4%, compared to a gross profit of $116.8 million and a gross margin of 82.7% for the year ended December 31, 2014.

Net loss for the fourth quarter of 2015 was $4.8 million, or $0.16 per share, compared to a net loss of $3.1 million, or $0.12 per share, for the same quarter a year ago. For the year ended December 31, 2015, net loss totaled $15.9 million, or $0.57 per diluted share, compared to a net loss of $11.0 million, or $0.43 per diluted share, for fiscal year 2014.

Adjusted EBITDA for the fourth quarter of 2015 was $(3.2) million compared to adjusted EBITDA of $(0.7) million for the fourth quarter of 2014. For the year ended December 31, 2015, adjusted EBITDA was $(6.9) million, compared to an adjusted EBITDA of $(0.8) million for fiscal year 2014.

2016 Guidance
Based on LDR’s results for the year ended December 31, 2015, the Company expects revenue for the full year 2016 to be in the range of $187.5 million to $189.5 million, or 14% to 15.2% growth on a reported basis. Changes in foreign exchange rates are expected to negatively impact 2016 reported revenue by approximately 1.0%. This implies revenues, before any foreign exchange impact, in the range of $189.1 million to $191.1 million for the full year 2016 or 15% to 16.2% growth constant currency.

Conference Call
LDR Holding Corporation will host a conference call today at 5:00 p.m. Eastern Time to discuss its fourth quarter and fiscal year 2015 financial results. The conference call will be available to interested parties through a live audio webcast available through LDR’s website at www.ldr.com.  Those without internet access may join the call from within the United States by dialing (877) 312-5637; outside the United States, by dialing (253) 237-1149.
For those who are not available to listen to the live webcast, the webcast replay will be archived for 12 months on LDR’s website.

Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect," “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements contained in this press release include the intent, belief or current expectations of LDR and members of its management team with respect to LDR’s future business operations as well as the assumptions upon which such statements are based. Forward-looking statements include specifically, but are not limited to, LDR’s market opportunities, growth, future revenues, future products, market acceptance of its products, sales and financial results and such statements are subject to risks and uncertainties such as the timing and success of new product introductions, physician acceptance, endorsement, and use of LDR’s products, regulatory matters, competitor activities, changes in and adoption of reimbursement rates, potential product recalls, effects of global economic conditions and changes in foreign currency exchange rates. Additional factors that could cause actual results to differ materially from those contemplated within this press release can also be found in LDR’s Risk Factors disclosure in its Annual Report on Form 10-K, filed on February 20, 2015, and in LDR’s other filings with the SEC. LDR disclaims any responsibility to update any forward-looking statements.

About LDR Holding Corporation
LDR Holding Corporation is a global medical device company focused on designing and commercializing novel and proprietary surgical technologies for the treatment of patients suffering from spine disorders. LDR’s primary products are based on its exclusive Mobi® non-fusion and VerteBRIDGE® fusion technology platforms and are designed for applications in the cervical and lumbar spine. These technologies are designed to enable products that are less invasive, provide greater intra-operative flexibility, offer simplified surgical techniques and promote improved clinical outcomes for patients as compared to existing alternatives. In August 2013, LDR received approval from the U.S. Food and Drug Administration (FDA) for the Mobi-C cervical disc replacement device, the first and only cervical disc replacement device to receive FDA approval to treat both one-level and two-level cervical disc disease. For more information regarding LDR Holding, visit www.ldr.com

Use of Non-GAAP Financial Measures
To supplement LDR’s consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), LDR uses certain non-GAAP financial measures, such as Adjusted EBITDA and revenue on a constant currency basis, in this press release and accompanying tables.

Management defines EBITDA as net income (loss) plus interest (income) expense, net, income tax expense and depreciation and amortization. The Company defines Adjusted EBITDA as EBITDA plus stock-based compensation expense and other interest (expense), net. The Company presents Adjusted EBITDA because management believes it is a useful indicator of operating performance. LDR’s management uses Adjusted EBITDA principally as a measure of operating performance and believes that Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies in industries similar to LDR. Management also uses Adjusted EBITDA for planning purposes, including the preparation of the annual operating budget and financial projections.

Adjusted EBITDA should not be considered in isolation or as a substitute for a measure of the Company’s liquidity or operating performance prepared in accordance with GAAP and is not indicative of operating income (loss) from operations as determined under GAAP. Adjusted EBITDA has limitations that should be considered before using this measure to evaluate the Company’s liquidity or financial performance. Adjusted EBITDA does not include certain expenses that may be necessary to review LDR’s operating results and liquidity requirements. Management’s definition and calculation of Adjusted EBITDA may differ from that of other companies.

Management calculates revenue on a constant currency basis by using the average foreign exchange rates for each month during the previous year and applying these rates to foreign-denominated revenue in the corresponding months in the current quarter. The difference between revenue calculated based on these foreign exchange rates and revenue calculated in accordance with GAAP is referred to as the foreign exchange impact on revenue. Management uses revenue on a constant currency basis to improve comparability between periods as though fluctuations from changes in foreign currency did not exist.

Revenue on a constant currency basis should not be considered in isolation or as a substitute for revenue prepared in accordance with GAAP as it is not indicative of revenue as determined under GAAP. Management’s calculation of revenue on a constant currency basis may differ from that of other companies.
A reconciliation of the non-GAAP financial measures used in this release to the most comparable U.S. GAAP measures for the respective periods can be found in a table later in this release immediately following the condensed consolidated statements of cash flows.

LDR HOLDING CORPORATION AND SUBSIDIARIES
REVENUE BY GEOGRAPHY AND PRODUCT CATEGORY
(in thousands)
(Unaudited)
       
  Three Months
Ended December 31,
 Change
GAAP 2015/
GAAP 2014
 Change
Constant Currency
2015/

GAAP 2014
  2015 2014 $ % $ %
Revenue in the United States $36,945  $32,010  $4,935  15.4% $4,935  15.4%
International revenue 7,596  7,523  73  1.0  1,463  19.4 
Total revenue $44,541  $39,533  $5,008  12.7% $6,398  16.2 
             
Exclusive cervical products $32,136  $25,506  $6,630  26.0% $7,304  28.6%
Exclusive lumbar products 9,415  10,340  (925) (8.9) (731) (7.1)
Exclusive technology products 41,551  35,846  5,705  15.9  6,573  18.3 
Traditional fusion products 2,990  3,687  (697) (18.9) (175) (4.7)
Total revenue $44,541  $39,533  $5,008  12.7% $6,398  16.2 

  Year Ended
December 31,
 Change
GAAP 2015/
GAAP 2014
 Change
Constant Currency
2015/

GAAP 2014
  2015 2014 $ % $ %
Revenue in the United States $133,843  $109,597  $24,246  22.1% $24,246  22.1%
International revenue 30,616  31,657  (1,041) (3.3) 5,854  18.5 
Total revenue $164,459  $141,254  $23,205  16.4% $30,100  21.3 
             
Exclusive cervical products $114,800  $87,035  $27,765  31.9% $31,228  35.9%
Exclusive lumbar products 37,633  37,978  (345) (0.9) 574  1.5 
Exclusive technology products 152,433  125,013  27,420  21.9  31,802  25.4 
Traditional fusion products 12,026  16,241  (4,215) (26.0) (1,702) (10.5)
Total revenue $164,459  $141,254  $23,205  16.4% $30,100  21.3 
__________
(1) Revenue on a constant currency basis is calculated using the average foreign exchange rates for each month during the previous year and applying these rates to foreign-denominated revenue in the corresponding months in the current period. The difference between revenue calculated based on these foreign exchange rates and revenue calculated in accordance with GAAP is reconciled on the last page of this press release.

 
LDR HOLDING CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
  December 31, December 31,
  2015 2014
  Unaudited  
ASSETS
Current assets:    
Cash and cash equivalents $115,084  $73,883 
Accounts receivable, net 29,412  26,484 
Inventory, net 29,721  24,996 
Other current assets 7,924  4,864 
Prepaid expenses 1,886  1,419 
Deferred tax asset, current   296 
Total current assets 184,027  131,942 
Property and equipment, net 20,653  19,025 
Goodwill 6,621  6,621 
Intangible assets, net 4,028  3,858 
Long-term investments 2,738   
Restricted cash 1,000   
Deferred tax assets 7,043  192 
Other assets 529  171 
Total assets $226,639  $161,809 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:    
Accounts payable $11,428  $8,302 
Accrued expenses 19,495  19,366 
Short-term financing 4,486  4,343 
Current  portion of long-term debt 601  1,009 
Total current liabilities 36,010  33,020 
Line of credit, net of discount   18,166 
Long-term debt, net of discount and current portion 677  1,422 
Deferred tax liabilities   740 
Other long-term liabilities 670  760 
Total liabilities 37,357  54,108 
Commitments and contingencies    
Stockholders' equity:    
Common stock 29  27 
Treasury stock at cost (8) (8)
Additional paid-in capital 306,509  205,920 
Accumulated other comprehensive loss (6,657) (3,500)
Accumulated deficit (110,591) (94,738)
Total stockholders' equity 189,282  107,701 
Total liabilities and stockholders' equity $226,639  $161,809 

LDR HOLDING CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands, except share and per share amounts)
(Unaudited)
     
  Three Months
Ended December 31,
 Year ended December 31,
  2015 2014 2015 2014
Revenue $44,541  $39,533  $164,459  $141,254 
Cost of goods sold 7,906  6,843  27,260  24,418 
Gross profit 36,635  32,690  137,199  116,836 
Operating expenses:        
Research and development 3,230  3,014  11,753  12,323 
Sales and marketing 29,450  26,268  109,141  87,506 
General and administrative 10,821  7,067  38,774  27,720 
Total operating expenses 43,501  36,349  159,668  127,549 
Operating loss (6,866) (3,659) (22,469) (10,713)
Other operating income (expense):        
Other income, net 157  634  1,012  2,037 
Interest income 49  6  61  27 
Interest expense (39) (179) (531) (898)
Total other income, net 167  461  542  1,166 
Loss before income taxes (6,699) (3,198) (21,927) (9,547)
Income tax benefit (expense) 1,943  67  6,074  (1,430)
Net loss (4,756) (3,131) (15,853) (10,977)
Other comprehensive loss:        
Foreign currency translation (675) (1,294) (3,157) (3,698)
Comprehensive loss $(5,431) $(4,425) $(19,010) $(14,675)
Net loss per common share:        
Basic and diluted $(0.16) $(0.12) $(0.57) $(0.43)
Weighted average number of shares outstanding:        
Basic and diluted 29,351,171  26,127,613  27,783,149  25,288,284 

LDR HOLDING CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
     
  Three Months Ended
December 31,
 Year ended December 31,
  2015 2014 2015 2014
Operating activities:        
Net loss $(4,756) $(3,131) $(15,853) $(10,977)
Adjustments to reconcile net loss to cash used in operating activities:        
Bad debt expense 386  133  1,510  603 
Provision for excess and obsolete inventories 1,643  216  2,846  1,173 
Depreciation and amortization 1,615  1,333  6,250  4,682 
Stock-based compensation 2,091  1,585  9,364  5,225 
Amortization of debt issuance costs 4  6  16  20 
Deferred income tax expense (2,148) 104  (7,425) 278 
Loss on disposal of assets 16  47  141  246 
Unrealized foreign currency gains (848) 818  (1,149) (389)
Changes in operating assets and liabilities:        
Restricted cash (1,000)   (1,000) 2,000 
Accounts receivable (3,502) (3,299) (5,246) (5,557)
Prepaid expenses and other current assets (1,911) 1,318  (3,812) (474)
Inventory (3,804) (2,245) (9,120) (10,059)
Other assets   9  (370) (15)
Accounts payable 2,228  598  2,852  1,008 
Accrued expenses 633  (1,734) 847  2,815 
Other long-term liabilities (50)   150   
Net cash used in operating activities (9,403) (4,242) (19,999) (9,421)
Investing activities:        
Purchase of long-term investment (2,730)   (2,730)  
Proceeds from sale of property and equipment 14  4  74  19 
Purchase of intangible assets (771) (61) (1,400) (626)
Purchase of property and equipment (863) (6,337) (7,089) (11,229)
Net cash used in investing activities (4,350) (6,394) (11,145) (11,836)
     
  Three Months Ended
December 31,
 Year ended December 31,
  2015 2014 2015 2014
Financing activities:        
Proceeds from issuance of common stock in public offering     92,000  36,628 
Stock issuance costs 2  6  (5,129) (2,634)
Exercise of stock options 656  1,395  3,030  2,363 
Proceeds from issuance of stock under Employee Stock Purchase Plan 790  106  1,474  2,148 
Proceeds from Employee Stock Purchase Plan 120  95  120  95 
Purchase of treasury stock       (8)
Payments on capital leases (3) (9) (15) (42)
Payments on line of credit     (18,166)  
Net proceeds on short-term financings 3,979  446  301  2,035 
Proceeds from long-term debt     96   
Payments on long-term debt (206) (305) (1,007) (1,710)
Net cash provided by financing activities 5,338  1,734  72,704  38,875 
Effect of exchange rate on cash (12) (251) (359) (413)
Net change in cash and cash equivalents (8,427) (9,153) 41,201  17,205 
Cash and cash equivalents, beginning of period 123,511  83,036  73,883  56,678 
Cash and cash equivalents, end of period $115,084  $73,883  $115,084  $73,883 

LDR HOLDING CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET LOSS TO NON-GAAP FINANCIAL MEASURES
(in thousands, except margin percentages)
(Unaudited)
     
  Three Months Ended
December 31,
 Years Ended December 31,
  2015 2014 2015 2014
Net loss $(4,756) $(3,131) $(15,853) $(10,977)
Interest (income) expense, net (10) 173  470  871 
Income tax (benefit) expense (1,943) (67) (6,074) 1,430 
Depreciation and amortization 1,615  1,333  6,250  4,682 
EBITDA (5,094) (1,692) (15,207) (3,994)
Stock-based compensation 2,091  1,585  9,364  5,225 
Other income, net (157) (634) (1,012) (2,037)
Non-GAAP adjusted EBITDA $(3,160) $(741) $(6,855) $(806)
Non-GAAP adjusted EBITDA margin (7.1)% (1.9)% (4.2)% (0.6)%



LDR HOLDING CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP REVENUE TO NON-GAAP REVENUE ON A CONSTANT CURRENCY BASIS
(in thousands)
(Unaudited)
     
  Three Months Ended December 31,  
  GAAP Foreign
Exchange
Impact on
International
Revenue
 Non-GAAP
Revenue on
a Constant
Currency
Basis (1)
 GAAP 2015 on a Constant
Currency Basis /

2014
  2015 2015 2015 2014 $ %
Revenue in the United States $36,945  $  $36,945  $32,010  $4,935  15.4%
International revenue 7,596  1,390  8,986  7,523  1,463  19.4 
Total revenue $44,541  $1,390  $45,931  $39,533  $6,398  16.2 
             
Exclusive cervical products $32,136  $674  $32,810  $25,506  $7,304  28.6%
Exclusive lumbar products 9,415  194  9,609  10,340  (731) (7.1)
Exclusive technology products 41,551  868  42,419  35,846  6,573  18.3 
Traditional fusion products 2,990  522  3,512  3,687  (175) (4.7)
Total revenue $44,541  $1,390  $45,931  $39,533  $6,398  16.2 

  Years Ended December 31,  
  GAAP Foreign
Exchange
Impact on
International
Revenue
 Non-GAAP
Revenue on
a Constant
Currency
Basis (1)
 GAAP 2015 on a Constant
Currency Basis /

2014
  2015 2015 2015 2014 $ %
Revenue in the United States $133,843  $  $133,843  $109,597  $24,246  22.1%
International revenue 30,616  6,895  37,511  31,657  5,854  18.5 
Total revenue $164,459  $6,895  $171,354  $141,254  $30,100  21.3 
             
Exclusive cervical products $114,800  $3,463  $118,263  $87,035  $31,228  35.9%
Exclusive lumbar products 37,633  919  38,552  37,978  574  1.5 
Exclusive technology products 152,433  4,382  156,815  125,013  31,802  25.4 
Traditional fusion products 12,026  2,513  14,539  16,241  (1,702) (10.5)
Total revenue $164,459  $6,895  $171,354  $141,254  $30,100  21.3 
__________
(1)  Revenue on a constant currency basis is calculated using the average foreign exchange rates for each month during the previous year and applying these rates to foreign-denominated revenue in the corresponding months in the current period. The difference between revenue calculated based on these foreign exchange rates and revenue calculated in accordance with GAAP is listed as foreign exchange impact in the table above.

Contacts
Robert McNamara
Executive Vice President and Chief Financial Officer
LDR Holding Corporation (512) 344-3333
LDR Holding Corporation
Matthew Norman Director, Investor Relations
(512) 344-3408
Published at Nasdaq Globenewswire

No comments:

Post a Comment