Tandem Diabetes Care Announces Second Quarter 2019 Financial Results and Updated 2019 Financial Guidance
Second Quarter 2019 Highlights
In comparing the second quarter of 2019 to the same period of 2018:
- Worldwide pump shipments increased 290 percent to 21,258 pumps from 5,447 pumps
-
Sales increased 173 percent to
$93.3 million from$34.1 million - Operating margin improved to negative 2 percent from negative 41 percent
- Adjusted EBITDA(1) improved to 13 percent of sales from negative 29 percent of sales
“We shipped more pumps in the first half of this year than we shipped in all of 2018,” said
Second Quarter 2019 Financial Results
Domestic pump shipments increased 135 percent to 12,799 pumps in the second quarter of 2019 from 5,447 pumps in the same period of 2018. Domestic sales were
Gross profit for the second quarter of 2019 increased 231 percent to
For the second quarter of 2019, operating expenses totaled
Net loss for the second quarter of 2019 was
Cash Balance and Liquidity
As of
2019 Annual Guidance
“The record growth we achieved in the second quarter has continued to exceed our expectations,” said
For the year ending
-
Sales are estimated to be in the range of
$350 million to $365 million , which represents an annual sales growth of 90 percent to 99 percent compared to 2018. The Company’s prior sales guidance for 2019 was estimated to be in the range of$300 million to $315 million .-
Includes international sales of approximately
$55 million to $60 million . The Company’s prior international sales guidance for 2019 was estimated to be in the range of$45 million to $50 million .
-
Includes international sales of approximately
- Gross margin is estimated to be approximately 54 percent, compared to 49 percent in 2018. The Company’s prior gross margin guidance for 2019 was estimated to be 52 percent.
- Adjusted EBITDA(1) is estimated to be 5 percent to 10 percent
-
Non-cash charges included in cost of goods sold and operating expenses are estimated to be approximately
$60 million , which include:-
Approximately
$53 million in non-cash, stock-based compensation expense -
Approximately
$7 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 financial goals more quickly than originally anticipated. 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 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. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in thousands) |
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|
June 30, |
|
December 31, |
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|
2019 |
|
2018 |
||||
|
(Unaudited) |
|
|
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Assets |
|
|
|
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Current assets: |
|
|
|
||||
Cash and cash equivalents and short-term investments |
$ |
131,388 |
|
|
$ |
129,027 |
|
Accounts receivable, net |
48,438 |
|
|
35,193 |
|
||
Inventories, net |
27,341 |
|
|
19,896 |
|
||
Other current assets |
5,989 |
|
|
3,769 |
|
||
Total current assets |
213,156 |
|
|
187,885 |
|
||
|
|
|
|
||||
Property and equipment, net |
22,750 |
|
|
17,151 |
|
||
Operating lease right-of-use assets |
17,665 |
|
|
— |
|
||
Other long term assets |
1,510 |
|
|
1,258 |
|
||
Total assets |
$ |
255,081 |
|
|
$ |
206,294 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable, accrued expense and employee-related liabilities |
$ |
38,950 |
|
|
$ |
34,784 |
|
Deferred revenue |
7,139 |
|
|
4,600 |
|
||
Common stock warrants |
25,616 |
|
|
17,926 |
|
||
Other current liabilities |
12,509 |
|
|
8,978 |
|
||
Total current liabilities |
84,214 |
|
|
66,288 |
|
||
|
|
|
|
||||
Operating lease liabilities - long-term |
16,608 |
|
|
— |
|
||
Other long-term liabilities |
8,914 |
|
|
8,731 |
|
||
Total liabilities |
109,736 |
|
|
75,019 |
|
||
|
|
|
|
||||
Total stockholders’ equity |
145,345 |
|
|
131,275 |
|
||
Total liabilities and stockholders’ equity |
$ |
255,081 |
|
|
$ |
206,294 |
|
TANDEM DIABETES CARE, INC. |
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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 June 30, |
|
Six Months Ended June 30, |
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|
2019 |
|
2018 |
|
2019 |
|
2018 |
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Sales |
$ |
93,255 |
|
|
$ |
34,126 |
|
|
$ |
159,250 |
|
|
$ |
61,402 |
|
Cost of sales |
43,351 |
|
|
19,039 |
|
|
75,993 |
|
|
34,912 |
|
||||
Gross profit |
49,904 |
|
|
15,087 |
|
|
83,257 |
|
|
26,490 |
|
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|
|
|
|
|
|
|
|
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Operating expenses: |
|
|
|
|
|
|
|
||||||||
Selling, general and administrative |
40,565 |
|
|
22,628 |
|
|
75,524 |
|
|
43,541 |
|
||||
Research and development |
11,204 |
|
|
6,456 |
|
|
20,594 |
|
|
12,431 |
|
||||
Total operating expenses |
51,769 |
|
|
29,084 |
|
|
96,118 |
|
|
55,972 |
|
||||
Operating loss |
(1,865 |
) |
|
(13,997 |
) |
|
(12,861 |
) |
|
(29,482 |
) |
||||
|
|
|
|
|
|
|
|
||||||||
Total other income (expense), net |
353 |
|
|
(45,362 |
) |
|
(11,643 |
) |
|
(62,571 |
) |
||||
Net loss |
$ |
(1,512 |
) |
|
$ |
(59,359 |
) |
|
$ |
(24,504 |
) |
|
$ |
(92,053 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share, basic and diluted |
$ |
(0.03 |
) |
|
$ |
(1.17 |
) |
|
$ |
(0.42 |
) |
|
$ |
(2.32 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average shares used to compute basic and diluted net loss per share |
58,219 |
|
|
50,948 |
|
|
57,996 |
|
|
39,594 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190801005941/en/
Source:
Media Contact:
Steve Sabicer
714-907-6264
ssabicer@thesabicergroup.com
Investor Contact:
Susan Morrison
858-366-6900 x7005
IR@tandemdiabetes.com