Tandem Diabetes Care Announces Third Quarter 2021 Financial Results and Updated Full Year 2021 Sales Guidance
Virtual R&D Day Scheduled for
Third Quarter 2021 Highlights
In comparing the third quarter of 2021 to the same period of 2020:
- Worldwide pump shipments increased 43 percent to 31,558 pumps from 22,021 pumps
-
Sales increased 45 percent to
$179.6 million from$123.6 million - Gross margin improved to 54 percent of sales from 53 percent of sales
- Operating margin improved to 4 percent of sales from negative 1 percent of sales
“We delivered a strong third-quarter performance in a difficult environment and continue to add new customers worldwide at an incredible rate,” said
Third Quarter 2021 Financial Results
Domestic pump shipments increased 10 percent to 20,296 pumps in the third quarter of 2021 from 18,380 pumps in the same period of 2020. Domestic sales were
Gross profit for the third quarter of 2021 increased 48 percent to
For the third quarter of 2021, operating expenses totaled
Net income for the third quarter of 2021 was
Cash Balance and Liquidity
As of
2021 Annual Guidance Update
For the year ending
-
Sales are estimated to be in the range of
$685 million to$695 million , which represents an annual sales growth of 37 percent to 39 percent compared to 2020. The Company’s prior sales guidance for 2021 was estimated to be in the range of$670 million to$685 million .-
Includes international sales of approximately
$168 million to$173 million , which represents an annual sales growth of 102 percent to 108 percent compared to 2020. The Company’s prior international sales guidance for 2021 was estimated to be in the range of$160 million to$165 million .
-
Includes international sales of approximately
- Gross margin is estimated to be approximately 54 percent
- Adjusted EBITDA(1) is estimated to be approximately 15 percent of sales
-
Non-cash charges included in cost of goods sold and operating expenses are estimated to be approximately
$75 million , which include:-
Approximately
$60 million in non-cash, stock-based compensation expense -
Approximately
$15 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 the change in fair value of common stock warrants and 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 income (loss). |
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
The Company will hold a conference call and simultaneous webcast today at
Virtual R&D Day
On
About
Follow
Follow
Follow
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 factors impacting the Company’s business momentum. 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 will be impacted by 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; changes in reimbursement rates or insurance coverage for the Company’s products; the Company’s ability to meet increasing operational and infrastructure requirements from higher customer interest and a larger base of existing customers; the Company’s ability to complete the development and launch of new products when anticipated; 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; the depth and duration of the evolving COVID-19 pandemic, and the global response thereto; reliance on third-party relationships, such as outsourcing and supplier arrangements; global economic conditions; 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
|
|
||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
|
(in thousands) |
||||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
2021 |
2020 |
||||||
|
|
(Unaudited) |
|
||||||
|
Assets |
|
|
||||||
|
Current assets: |
|
|
||||||
|
Cash, cash equivalents and short-term investments |
$ |
594,993 |
|
$ |
484,936 |
|
||
|
Accounts receivable, net |
|
87,462 |
|
|
82,195 |
|
||
|
Inventories |
|
65,734 |
|
|
63,721 |
|
||
|
Other current assets |
|
6,758 |
|
6,383 |
||||
|
Total current assets |
|
754,947 |
|
|
637,235 |
|
||
|
|
|
|
||||||
|
Property and equipment, net |
|
49,621 |
|
|
50,022 |
|
||
|
Operating lease right-of-use assets |
|
29,683 |
|
|
19,773 |
|
||
|
Other long-term assets |
|
16,028 |
|
|
9,385 |
|
||
|
Total assets |
$ |
850,279 |
|
$ |
716,415 |
|
||
|
|
|
|
||||||
|
Liabilities and Stockholders’ Equity |
|
|
||||||
|
Current liabilities: |
|
|
||||||
|
Accounts payable, accrued expenses and employee-related liabilities |
$ |
80,522 |
|
$ |
56,747 |
|
||
|
Deferred revenue |
|
9,022 |
|
|
6,082 |
|
||
|
Common stock warrants |
|
116 |
|
|
14,261 |
|
||
|
Operating lease liabilities |
|
9,261 |
|
|
9,421 |
|
||
|
Other current liabilities |
|
20,729 |
|
|
17,341 |
|
||
|
Total current liabilities |
|
119,650 |
|
|
103,852 |
|
||
|
|
|
|
||||||
|
Convertible senior notes, net - long-term |
|
281,032 |
|
|
202,984 |
|
||
|
Operating lease liabilities - long-term |
|
25,680 |
|
|
15,914 |
|
||
|
Other long-term liabilities |
|
34,263 |
|
|
27,360 |
|
||
|
Total liabilities |
|
460,625 |
|
|
350,110 |
|
||
|
|
|
|
||||||
|
Total stockholders’ equity |
|
389,654 |
|
|
366,305 |
|
||
|
Total liabilities and stockholders’ equity |
$ |
850,279 |
|
$ |
716,415 |
|
||
|
|
||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
|
(in thousands, except per share data) |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
|
||||||||||||||||
|
|
Three Months Ended |
Nine Months Ended |
||||||||||||||
|
|
2021 |
2020 |
2021 |
2020 |
||||||||||||
|
Sales |
$ |
179,627 |
|
$ |
123,603 |
|
$ |
492,803 |
|
$ |
330,765 |
|
||||
|
Cost of sales |
|
82,882 |
|
|
58,290 |
|
|
230,317 |
|
|
160,801 |
|
||||
|
Gross profit |
|
96,745 |
|
|
65,313 |
|
|
262,486 |
|
|
169,964 |
|
||||
|
Operating expenses: |
|
|
|
|
||||||||||||
|
Selling, general and administrative |
|
64,923 |
|
|
50,228 |
|
|
190,009 |
|
|
150,385 |
|
||||
|
Research and development |
|
24,102 |
|
|
16,094 |
|
|
62,562 |
|
|
46,198 |
|
||||
|
Total operating expenses |
|
89,025 |
|
|
66,322 |
|
|
252,571 |
|
|
196,583 |
|
||||
|
Operating income (loss) |
|
7,720 |
|
|
(1,009 |
) |
|
9,915 |
|
|
(26,619 |
) |
||||
|
Total other expense, net |
|
(1,872 |
) |
|
(8,360 |
) |
|
(5,159 |
) |
|
(26,701 |
) |
||||
|
Income (loss) before income taxes |
|
5,848 |
|
|
(9,369 |
) |
|
4,756 |
|
|
(53,320 |
) |
||||
|
Income tax expense (benefit) |
|
54 |
|
|
39 |
|
|
(2 |
) |
|
(1,938 |
) |
||||
|
Net income (loss) |
$ |
5,794 |
|
$ |
(9,408 |
) |
$ |
4,758 |
|
$ |
(51,382 |
) |
||||
|
|
|
|
|
|
||||||||||||
|
Net income (loss) per share, basic |
$ |
0.09 |
|
$ |
(0.15 |
) |
$ |
0.08 |
|
$ |
(0.85 |
) |
||||
|
Net income (loss) per share, diluted |
$ |
0.09 |
|
$ |
(0.15 |
) |
$ |
0.07 |
|
$ |
(0.85 |
) |
||||
|
|
|
|
|
|
||||||||||||
|
Weighted average shares used to compute basic net income (loss) per share |
|
63,167 |
|
|
61,529 |
|
|
62,780 |
|
|
60,568 |
|
||||
|
Weighted average shares used to compute diluted net income (loss) per share |
|
64,784 |
|
|
61,529 |
|
|
64,198 |
|
|
60,568 |
|
||||
|
Reconciliation of GAAP versus Non-GAAP Financial Results |
||||||||||||||||
|
(in thousands) |
Three Months Ended |
Nine Months Ended |
||||||||||||||
|
|
2021 |
2020 |
2021 |
2020 |
||||||||||||
|
GAAP net income (loss) |
$ |
5,794 |
|
$ |
(9,408 |
) |
$ |
4,758 |
|
$ |
(51,382 |
) |
||||
|
Income tax expense (benefit) |
|
54 |
|
|
39 |
|
|
(2 |
) |
|
(1,938 |
) |
||||
|
Interest income and other, net |
|
(31 |
) |
|
(143 |
) |
|
(721 |
) |
|
(1,235 |
) |
||||
|
Interest expense |
|
1,511 |
|
|
4,855 |
|
|
4,526 |
|
|
8,030 |
|
||||
|
Depreciation and amortization |
|
3,400 |
|
|
2,989 |
|
|
10,325 |
|
|
7,024 |
|
||||
|
EBITDA |
|
10,728 |
|
|
(1,668 |
) |
|
18,886 |
|
|
(39,501 |
) |
||||
|
Change in fair value of common stock warrants |
|
392 |
|
|
3,648 |
|
|
1,354 |
|
|
19,906 |
|
||||
|
Stock-based compensation expense |
|
15,729 |
|
|
12,837 |
|
|
43,653 |
|
|
45,123 |
|
||||
|
Adjusted EBITDA |
$ |
26,849 |
|
$ |
14,817 |
|
$ |
63,893 |
|
$ |
25,528 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20211103005377/en/
Media Contact:
714-907-6264
ssabicer@thesabicergroup.com
Investor Contact:
858-366-6900
IR@tandemdiabetes.com
Source: