Tandem Diabetes Care Announces Fourth Quarter and Full Year 2019 Financial Results and 2020 Financial Guidance
In comparing the year ended
- Worldwide pump shipments increased 113 percent to 73,431 pumps from 34,493 pumps
-
Sales increased 97 percent to
$362.3 million from$183.9 million
- Gross margin increased 5 points to 54 percent of sales from 49 percent
- Adjusted EBITDA (see "Non-GAAP Financial Measures" below) improved to 13 percent of sales from negative 8 percent of sales
In comparing the fourth quarter of 2019 to the same period of 2018:
- Worldwide pump shipments increased 21 percent to 19,602 pumps from 16,168 pumps
-
Sales increased 42 percent to
$108.4 million from$76.2 million
- Gross margin improved 1 point to 56 percent of sales from 55 percent
- Adjusted EBITDA improved to 21 percent of sales from 16 percent of sales
“In 2019, we more than doubled our year-over-year shipments, primarily based on the strength of our Basal-IQ technology adoption. We also pioneered two new device categories with the FDA and received clearance for t:slim X2 with Control-IQ technology, the most advanced automated insulin delivery system available,” said
Full Year 2019 Results
Domestic pump shipments increased 78 percent to 53,735 pumps from 30,205 pumps in the same period of 2018. Domestic sales were
Gross profit for the year ended 2019 increased 116 percent to
For the year ended 2019, operating expenses totaled
Net loss for the year ended 2019 was
Fourth Quarter 2019 Financial Results
Domestic pump shipments increased 35 percent to 17,453 pumps in the fourth quarter of 2019 from 12,935 pumps in the same period of 2018. Domestic sales were
Gross profit for the fourth quarter of 2019 increased 45 percent to
For the fourth quarter of 2019, operating expenses totaled
Net income for the fourth quarter of 2019 was
Cash Balance and Liquidity
As of
2020 Annual Guidance
For the year ending
-
Sales are estimated to be in the range of
$450 million to$465 million , which represents an annual sales growth of 24 percent to 28 percent compared to 2019-
Includes international sales of approximately
$70 million to$75 million
-
Includes international sales of approximately
- Gross margin is estimated to be approximately 54 percent
- Adjusted EBITDA is estimated to be 12 percent to 14 percent
-
Non-cash charges included in cost of goods sold and operating expenses are estimated to be approximately
$60 million , which include:-
Approximately
$50 million in non-cash, stock-based compensation expense -
Approximately
$10 million of depreciation and amortization
-
Approximately
Non-GAAP Financial Measures
Certain non-GAAP financial measures are presented in this press release, including adjusted EBITDA, to provide information that may assist investors in understanding the Company's financial results and assessing its prospects for future performance. We believe these non-GAAP financial measures are important indicators of our operating performance because they exclude items that are unrelated to, and may not be indicative of, our core operating results. These non-GAAP financial measures, as we calculate them, may not necessarily be comparable to similarly titled measures of other companies and may not be appropriate measures for comparing the performance of other companies relative to the Company. These non-GAAP financial results are not intended to represent, and should not be considered to be more meaningful measures than, or alternatives to, measures of operating performance as determined in accordance with GAAP. To the extent we utilize such non-GAAP financial measures in the future, we expect to calculate them using a consistent method from period to period. A reconciliation of each of the GAAP financial measures to the most directly comparable non-GAAP financial measures has been provided under the heading "Reconciliation of GAAP versus Non-GAAP Financial Results" in the financial statement tables attached to this press release. Consistent with
Conference Call
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Forward-Looking Statements
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 and the Company’s ability make pipeline advancements, scale operations and drive towards sustained profitable growth. 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 sales and profitability goals, will be impacted by the Company’s ability to obtain regulatory approvals 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, including expansion into additional geographies; the Company’s ability to meet increasing operational and infrastructure requirements from higher customer interest and a larger base of existing customers; and 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. 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; and other risks identified in the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other documents that the Company files with the
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in thousands) |
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2019 |
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2018 |
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Assets |
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Current assets: |
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Cash and cash equivalents and short-term investments |
$ |
176,458 |
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$ |
129,027 |
|
Accounts receivable, net |
46,585 |
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|
35,193 |
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Inventories, net |
49,073 |
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|
19,896 |
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Other current assets |
4,025 |
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|
3,769 |
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Total current assets |
276,141 |
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|
187,885 |
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Property and equipment, net |
32,923 |
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|
17,151 |
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Operating lease right-of-use assets |
15,561 |
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|
— |
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Other long term assets |
1,485 |
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|
1,258 |
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Total assets |
$ |
326,110 |
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$ |
206,294 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable, accrued expenses and employee-related liabilities |
$ |
54,079 |
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$ |
34,784 |
|
Deferred revenue |
3,869 |
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|
4,600 |
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Common stock warrants |
23,509 |
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|
17,926 |
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Operating lease liabilities |
6,320 |
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|
— |
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Other current liabilities |
11,619 |
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|
8,978 |
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Total current liabilities |
99,396 |
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|
66,288 |
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Operating lease liabilities - long-term |
14,063 |
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— |
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Other long-term liabilities |
17,672 |
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|
8,731 |
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Total liabilities |
131,131 |
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|
75,019 |
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Total stockholders’ equity |
194,979 |
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|
131,275 |
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Total liabilities and stockholders’ equity |
$ |
326,110 |
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$ |
206,294 |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(in thousands, except per share data) |
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(Unaudited)
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Three Months Ended
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Year Ended
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2019 |
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2018 |
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2019 |
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2018 |
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Sales |
$ |
108,398 |
|
|
$ |
76,199 |
|
|
$ |
362,305 |
|
|
$ |
183,866 |
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Cost of sales |
48,126 |
|
|
34,664 |
|
|
168,093 |
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|
94,044 |
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Gross profit |
60,272 |
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|
41,535 |
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|
194,212 |
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|
89,822 |
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Operating expenses: |
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Selling, general and administrative |
45,561 |
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|
32,178 |
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165,735 |
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105,226 |
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Research and development |
12,567 |
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|
8,797 |
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45,199 |
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29,227 |
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Total operating expenses |
58,128 |
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|
40,975 |
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|
210,934 |
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|
134,453 |
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Operating income (loss) |
2,144 |
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|
560 |
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|
(16,722 |
) |
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(44,631 |
) |
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Total other income (expense), net |
585 |
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|
3,177 |
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|
(7,882 |
) |
|
(77,929 |
) |
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Income (loss) before income taxes |
2,729 |
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|
3,737 |
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(24,604 |
) |
|
(122,560 |
) |
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Income tax expense |
77 |
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|
51 |
|
|
149 |
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|
51 |
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Net income (loss) |
$ |
2,652 |
|
|
$ |
3,686 |
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|
$ |
(24,753 |
) |
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$ |
(122,611 |
) |
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Net income (loss) per share, basic |
$ |
0.04 |
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|
$ |
0.06 |
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$ |
(0.42 |
) |
|
$ |
(2.55 |
) |
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Net income (loss) per share, diluted |
$ |
0.04 |
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|
$ |
0.02 |
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|
$ |
(0.42 |
) |
|
$ |
(2.55 |
) |
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Weighted average shares used to compute basic net income (loss) per share |
59,219 |
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|
57,434 |
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|
58,507 |
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|
48,129 |
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Weighted average shares used to compute diluted net income (loss) per share |
62,883 |
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|
60,874 |
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|
58,507 |
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|
48,129 |
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Reconciliation of GAAP versus Non-GAAP Financial Results
|
(in thousands) |
Three Months Ended |
|
Year Ended |
||||||||||||
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|
2019 |
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2018 |
|
2019 |
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2018 |
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GAAP net income (loss) |
$ |
2,652 |
|
|
$ |
3,687 |
|
|
$ |
(24,753 |
) |
|
$ |
(122,611 |
) |
|
Income tax expense |
76 |
|
|
51 |
|
|
149 |
|
|
51 |
|
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Change in fair value of stock warrants |
226 |
|
|
(2,548 |
) |
|
11,075 |
|
|
66,494 |
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Other (income) expense, net(1) |
(812 |
) |
|
(630 |
) |
|
(3,194 |
) |
|
11,435 |
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Depreciation and amortization |
1,643 |
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|
1,467 |
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|
6,072 |
|
|
5,821 |
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EBITDA |
3,785 |
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|
2,027 |
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|
(10,651 |
) |
|
(38,810 |
) |
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Stock-based compensation expense |
18,684 |
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|
10,309 |
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|
58,071 |
|
|
23,736 |
|
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Adjusted EBITDA |
$ |
22,469 |
|
|
$ |
12,336 |
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|
$ |
47,420 |
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|
$ |
(15,074 |
) |
(1) Includes
View source version on businesswire.com: https://www.businesswire.com/news/home/20200224005883/en/
Media Contact:
714-907-6264
ssabicer@thesabicergroup.com
Investor Contact:
858-366-6900 x7005
IR@tandemdiabetes.com
Source:
Media Contact:
Steve Sabicer
714-907-6264
ssabicer@thesabicergroup.com
Investor Contact:
Susan Morrison
858-366-6900 x7005
IR@tandemdiabetes.com