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Feb 24, 2016

Tandem Diabetes Care Reports Fourth Quarter and Full Year 2015 Financial Results

SAN DIEGO--(BUSINESS WIRE)-- Tandem Diabetes Care®, Inc. (NASDAQ: TNDM), a medical device company and manufacturer of the t:slim®, t:flex® and t:slim G4 Insulin Pumps, today reported its financial results for the quarter and year ended December 31, 2015.

In comparing the fourth quarter of 2015 to the same period of 2014:

  • Sales grew 63 percent to $29.1 million from $17.9 million
  • Pump shipments grew 59 percent to 6,234 pumps from 3,929 pumps
  • Operating margin improved to negative 39 percent from negative 98 percent

In comparing the year ended December 31, 2015 to the same period of 2014:

  • Sales grew 47 percent to $72.9 million from $49.7 million
  • Pump shipments grew 43 percent to 15,483 pumps from 10,822 pumps
  • Operating margin improved to negative 95 percent from negative 152 percent

"2015 was a year of tremendous accomplishments. We successfully launched two new products, delivered our third consecutive year of greater than 40 percent sales growth, and made meaningful gross and operating margin improvement," said Kim Blickenstaff, President and Chief Executive Officer of Tandem Diabetes Care. "We look to continue this momentum in 2016 with our family of insulin pump products by offering superior customer service and continued product enhancements to support people with diabetes."

Gross margin improved to 46 percent for the quarter ended December 31, 2015 compared to 37 percent for the same period of 2014. For the year ended December 31, 2015, gross margin was 36 percent compared to a gross margin of 31 percent for the same period of 2014.

For the fourth quarter of 2015, operating expenses totaled $24.7 million compared to $24.0 million for the same period of 2014. For the year ended December 31, 2015, operating expenses totaled $95.6 million compared to $90.9 million for the same period of 2014.

Operating loss for the fourth quarter of 2015 was $11.2 million, compared to $17.5 million for the same period of 2014. This included non-cash, stock-based compensation of $3.1 million for the quarter ended December 31, 2015 compared to $3.9 million for the comparable period of 2014. For the year ended December 31, 2015, operating loss was $69.0 million compared to $75.7 million for the same period of 2014. This included non-cash, stock-based compensation of $13.1 million for the year ended December 31, 2015 compared to $15.0 million for the comparable period of 2014.

As of December 31, 2015, the Company had $73.1 million in cash, cash equivalents and short-term investments.

For the year ending December 31, 2016, the Company is providing its guidance as follows:

  • Sales are estimated to be in the range of $105 million to $112 million, which represents annual sales growth of 44% to 54% compared to 2015.
  • Operating margin is estimated to be in the range of negative 55 percent to negative 65 percent, which includes:
    • Approximately $13.0 million to $14.0 million in non-cash, stock-based compensation expense; and
    • Approximately $5.0 million to $6.0 million of depreciation and amortization.

Conference Call

The Company will hold a conference call and simultaneous webcast today at 4:30pm Eastern Time (1:30pm Pacific Time). The link to the webcast will be available by accessing the Investor Center of the Tandem Diabetes Care website at http://investor.tandemdiabetes.com, and will be archived for 30 days. To listen to the conference call via phone, please dial 855-427-4396 (U.S./Canada) or 484-756-4261 (International) and use the participant code "41497472".

Insulin Pump Use and Diabetes

Diabetes is a chronic, life-threatening disease that affects more than 29 million people in the United States, or nearly 1 in 10 Americans. Tandem estimates that more than 3 million people in the United States require daily administration of insulin and are candidates for pump therapy. More than 425,000 Americans with type 1 diabetes use an insulin pump, or approximately 27% of the type 1 diabetes population. In addition, approximately 125,000 Americans with type 2 diabetes use an insulin pump, a small fraction of the type 2 diabetes population.

About Tandem Diabetes Care, Inc.

Tandem Diabetes Care, Inc. (www.tandemdiabetes.com) is a medical device company with an innovative, user-centric and integrated approach to the design, development and commercialization of products for people with diabetes who use insulin. The Company manufactures and sells a family of insulin pump products, which includes the t:slim® Insulin Pump, the slimmest and smallest durable insulin pump currently on the market, the t:flex® Insulin Pump, the first pump designed for people with greater insulin requirements, and the t:slim G4™ Insulin Pump, the first CGM-enabled pump with touch-screen simplicity. Tandem is based in San Diego, California.

t:slim, t:flex and Tandem Diabetes Care are registered trademarks, and t:slim G4 is a trademark of Tandem Diabetes Care, Inc.

Follow Tandem Diabetes Care:
Twitter @tandemdiabetes, use #tslim, #tflex, #tslimG4, #tconnect and $TNDM.
Facebook at www.facebook.com/TandemDiabetes
LinkedIn at https://www.linkedin.com/company/tandemdiabetes

Forward Looking Statement

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that concern matters that involve risks and uncertainties that could cause actual results to differ materially from those anticipated or projected in the forward-looking statements. These forward-looking statements relate to the Company's projected financial results, including the Company's ability to make additional gross margin and operating margin improvement and sustain sales momentum for 2016, and the Company's ability to offer superior customer service and future product enhancements. The Company's actual results may differ materially from those indicated in these forward-looking statements due to numerous risks and uncertainties. For instance, successful commercialization of the Company's products may be negatively impacted by lack of market acceptance by physicians and people with diabetes; the potential that newer products that compete with the Company's products, or other technological breakthroughs for the monitoring, treatment or prevention of diabetes, including new products offered by Dexcom, may render the Company's products obsolete or less desirable; and the potential that the pump purchasing process, including insurance verification approval for individual customers may take longer than it has historically. Other risks and uncertainties include the Company's inability to manufacture products in commercial quantities at an acceptable cost and in accordance with quality requirements; the Company's inability to contract with additional third-party payors for reimbursement of the Company's products; possible future actions of the U.S. Food and Drug Administration or any other regulatory body or governmental authority; and other risks identified in the Company's most recent Annual Report on Form 10-K, as well as other documents that the Company files with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Tandem undertakes no obligation to update or review any forward-looking statement in this press release because of new information, future events or other factors.

 

TANDEM DIABETES CARE, INC.

CONDENSED BALANCE SHEETS
(in thousands)
     
December 31,
2015 2014
Assets
Current assets:
Cash and cash equivalents and short-term investments $ 71,106 $ 67,282
Restricted cash 2,000 2,000
Accounts receivable, net 14,055 7,652
Inventory 17,543 11,913
Other current assets   2,280   1,904
Total current assets 106,984 90,751
Property and equipment, net 15,526 12,581
Other long term assets   2,609   3,132
Total assets $ 125,119 $ 106,464
Liabilities and stockholders' equity
Current liabilities:
Accounts payable, accrued expense, and employee-related liabilities $ 19,116 $ 14,591
Deferred revenue 1,822 840
Other current liabilities   5,582   2,663
Total current liabilities 26,520 18,094
 
Notes payable—long-term 29,669 29,440
Other long-term liabilities   5,462   4,358
Total liabilities 61,651 51,892
 
Total stockholders' equity   63,468   54,572
Total liabilities and stockholders' equity $ 125,119 $ 106,464
 
 
TANDEM DIABETES CARE, INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
       
Three Months Ended Year Ended
December 31, December 31,
2015 2014 2015 2014
Sales $ 29,120 $ 17,889 $ 72,850 $ 49,722
Cost of sales   15,662   11,352   46,270   34,474
Gross profit 13,458 6,537 26,580 15,248
Operating expenses:
Selling, general and administrative 20,557 20,117 78,621 75,121
Research and development   4,121   3,922   16,963   15,791
Total operating expenses   24,678   24,039   95,584   90,912
Operating loss   (11,220 )   (17,502 )   (69,004 )   (75,664 )
Total other expense, net   (862 )   (892 )   (3,404 )   (3,789 )
Loss before taxes (12,082 ) (18,394 ) (72,408 ) (79,453 )
Provision for income tax expense   10   71   10   71
Net loss $ (12,092 ) $ (18,465 ) $ (72,418 ) $ (79,524 )
               
Net loss per share, basic and diluted $ (0.40 ) $ (0.78 ) $ (2.50 ) $ (3.42 )
 
Weighted average shares used to compute basic and diluted net loss per share   30,168   23,571   28,923   23,272

for Tandem Diabetes Care®, Inc.
Media Contact:
Steve Sabicer, 714-907-6264
ssabicer@thesabicergroup.com
or
Investor Contact:
Susan Morrison, 858-366-6900 x7005
smorrison@tandemdiabetes.com

Source: Tandem Diabetes Care, Inc.

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