Tandem Diabetes Care Announces First Quarter 2019 Financial Results and Updated 2019 Financial Guidance
In comparing the first quarter of 2019 to the same period of 2018:
- Pump shipments increased 232 percent to 14,732 pumps from 4,444 pumps
-
Sales increased 142 percent to
$66.0 million from$27.3 million - Operating margin improved to negative 17 percent from negative 57 percent
- Adjusted EBITDA(1) improved to 0 percent of sales from negative 47 percent of sales
“Our explosive growth in the first quarter was driven by strong domestic
demand for the t:slim X2 insulin pump,” said
“Our top priority for continued growth is to establish our position as a
leader in innovation while maintaining the highest levels of quality
throughout our business,” said
First Quarter 2019 Results
For the first quarter of 2019, total pump shipments of 14,732 included
5,063 to select geographies outside of
Gross profit for the first quarter of 2019 increased 192 percent to
For the first quarter of 2019, operating expenses totaled
Net loss for the first quarter of 2019 was
Cash Balance and Liquidity
As of
2019 Annual Guidance
For the year ending
-
Sales are estimated to be in the range of
$300.0 million to $315.0 million , which represents an annual sales growth of 63 percent to 71 percent compared to 2018. The Company’s prior sales guidance for 2019 was estimated to be in the range of$255.0 million to $270.0 million .-
Includes international sales of approximately
$45.0 million to$50.0 million
-
Includes international sales of approximately
- Gross margin is estimated to be approximately 52 percent, compared to 49 percent in 2018
- Adjusted EBITDA(1) is estimated to be breakeven to positive
-
Non-cash charges included in cost of goods sold and operating expenses
are estimated to be approximately
$55.0 million , which include:-
Approximately
$48.0 million in non-cash, stock-based compensation expense -
Approximately
$7.0 million of depreciation and amortization
-
Approximately
| (1) | EBITDA is a non-GAAP financial measure defined as net income (loss) excluding income taxes, interest and other non-operating items and depreciation and amortization. Adjusted EBITDA further adjusts for non-cash stock-based compensation expense. This definition of Adjusted EBITDA may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Adjusted EBITDA is a key measure used by the Company to evaluate operating performance, generate future operating plans and make strategic decisions for the allocation of capital. The Company presents Adjusted EBITDA to provide information that may assist investors in understanding its financial results. However, Adjusted EBITDA is not intended to be a substitute for net loss. |
Conference Call
The Company will hold a conference call and simultaneous webcast today
at
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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
include statements regarding, among other things, the Company’s
projected financial results, the Company’s ability to scale its business
operations, expand internationally, and advance its product pipeline and
the Company’s ability to achieve its long-term profitability goals. The
Company’s actual results may differ materially from those indicated in
these forward-looking statements due to numerous risks and
uncertainties. For instance, the Company’s ability to achieve projected
financial results, including its profitability goals, will be impacted
by the Company’s ability to obtain regulatory approval for new products
and products under development and the timing of any such approvals;
market acceptance of the Company’s existing products and products under
development by physicians and people with diabetes; the Company’s
ability to establish and sustain operations to support international
sales; the Company’s ability to meet increasing operational and
infrastructure requirements from higher customer interest and a larger
base of existing customers; the potential that newer products, or other
technological breakthroughs for the monitoring, treatment or prevention
of diabetes, may render the Company’s products obsolete or less
desirable; and the potential that the process of purchasing the
Company’s products, including insurance verification approval for
individual customers, may delay or prevent the sale of the products.
Other risks and uncertainties include the Company’s ability to
manufacture products at quantities at higher volumes at an acceptable
cost and in accordance with quality requirements; the Company’s ability
to contract with third-party payors for reimbursement of the Company’s
products; uncertainty associated with the development and approval of
new products generally; possible future actions of the
| TANDEM DIABETES CARE, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (in thousands) | |||||||
| March 31, | December 31, | ||||||
| 2019 | 2018 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents and short-term investments | $ | 125,604 | $ | 129,027 | |||
| Accounts receivable, net | 33,027 | 35,193 | |||||
| Inventories, net | 22,826 | 19,896 | |||||
| Other current assets | 4,571 | 3,769 | |||||
| Total current assets | 186,028 | 187,885 | |||||
| Property and equipment, net | 17,182 | 17,151 | |||||
| Operating lease right-of-use assets | 10,087 | - | |||||
| Other long-term assets | 1,401 | 1,258 | |||||
| Total assets | $ | 214,698 | $ | 206,294 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable, accrued expense and employee-related liabilities | $ | 31,629 | $ | 34,784 | |||
| Deferred revenue | 5,460 | 4,600 | |||||
| Common stock warrants | 29,762 | 17,926 | |||||
| Other current liabilities | 9,829 | 8,978 | |||||
| Total current liabilities | 76,680 | 66,288 | |||||
| Operating lease liabilities - long-term | 10,685 | - | |||||
| Other long-term liabilities | 6,371 | 8,731 | |||||
| Total liabilities | 93,736 | 75,019 | |||||
| Total stockholders’ equity | 120,962 | 131,275 | |||||
| Total liabilities and stockholders’ equity | $ | 214,698 | $ | 206,294 | |||
| TANDEM DIABETES CARE, INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (in thousands, except per share data) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2019 | 2018 | |||||||
| Sales | $ | 65,995 | $ | 27,277 | ||||
| Cost of sales | 32,642 | 15,873 | ||||||
| Gross profit | 33,353 | 11,404 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 34,961 | 20,914 | ||||||
| Research and development | 9,389 | 5,975 | ||||||
| Total operating expenses | 44,350 | 26,889 | ||||||
| Operating loss | (10,997 | ) | (15,485 | ) | ||||
| Total other expense, net | (11,995 | ) | (17,208 | ) | ||||
| Net loss | $ | (22,992 | ) | $ | (32,693 | ) | ||
| Net loss per share, basic and diluted | $ | (0.40 | ) | $ | (1.82 | ) | ||
| Weighted average shares used to compute basic and diluted net loss per share | 57,771 | 17,993 | ||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190430005919/en/
Source:
Media Contact:
Steve Sabicer
714-907-6264
ssabicer@thesabicergroup.com
Investor Contact:
Susan Morrison
858-366-6900 x7005
IR@tandemdiabetes.com