OpSens Announces Fourth Quarter and Fiscal Year 2020 Financial Results

 

QUEBEC CITY, Nov. 19, 2020 /CNW/ - Opsens Inc. ("OpSens" or the "Company") (TSX: OPS) (OTCQX: OPSSF) today reported its results for the fourth quarter and fiscal year 2020 ended August 31, 2020.

Financial Highlights

  • Sales of product at $29.5 million in FY 2020 compared to prior FY 2019;
  • Delivered Q4 2020 a $2.2 million improvement in profitability compared with Q4 2019;
  • The Company ended fourth quarter with a cash balance of $10.9 million compared to $10.0 million as of May 31, 2020.

Recent Developments

  • Awarded 3-year contract with major American group purchasing organization ("GPO") to provide access to the OptoWire to their members across the United States;
  • Progress in the development of a guidewire for transcatheter aortic valve replacement (TAVI or TAVR) procedures.

Management Commentary

"I am pleased with the way the company is successfully navigating the COVID-19 pandemic," said Louis Laflamme, President and CEO of OpSens. "Despite the temporary closure of several cardiology laboratories, we continued to  achieve progress  in our commercial activities, including the signing of our first GPO contract to further increase our U.S. coronary artery stenosis measurement business."

"As we look ahead to fiscal 2021, we are cautiously optimistic about continued improvement in access to our commercial customers as hospital protocols for managing the pandemic are being implemented. In addition to continued traction in our currently commercialized products, we are accelerating the development of our new guidewire for TAVR procedures, a $4 billion global market  which is growing in excess of 40% per year."

"Our continued progress over the past few years to create, manufacture and deliver world-class products, that contribute to health through our expertise in innovative medical products was highlighted during the last quarter. I congratulate the OpSens team for their determination to provide customers with continued access to our technology under these unusual circumstances," concluded Mr. Laflamme. 

Financial Results - Year Ended August 31, 2020

Sales of product were stable at $29.5 million in fiscal 2020 compared with fiscal 2019.

Sales of products for the measurement of coronary artery stenosis (Fractional Flow Reserve ("FFR") and diastolic pressure ratio ("dPR")) were $18.7 million in FY 2020 compared with $20.0 million in FY 2019. The $1.3 million decrease in OptoWire sales was primarily related to the temporary closure of several cardiology laboratories brought on by COVID-19.

Sales of optical medical systems, including the Company's partnership for ventricular assist device sensors, were $8.3 million in FY 2020 compared with $7.0 million in FY 2019.

Operating expenses in fiscal 2020 were $19.3 million compared with $20.5 million in fiscal 2019. The improvement in operating expenses is attributable to savings on sales and marketing expenses offset by continued investment in research and development.

Net loss was $2.6 million during fiscal 2020 compared with a net loss of $2.0 million in fiscal 2019. This variation is mainly explained by a decrease of $3.3 million in non-recurring licensing revenue offset by a decrease in sales and marketing expenses and by a grant of $1.7 M from the Canadian government.

EBITDAO1 (see table B) was $0.1 million in fiscal 2020 compared with $(0.4) million in fiscal 2019.

OpSens had a cash position of $10.9 million as of August 31, 2020.

Financial Results - Three-Month Period Ended August 31, 2020

Total revenue was $7.6 million in the fourth quarter of 2020 compared with $7.9 million in the fourth quarter of 2019.

Sales of products for the measurement of coronary artery stenosis (FFR and dPR) were $4.8 million in Q4 2020 compared with $5.3 million in Q4 2019. The $0.5 million decrease in OptoWire sales was primarily related to the temporary closure of several cardiology laboratories brought on by COVID-19.

Sales of optical medical systems including the Company's partnership for ventricular assist device sensors were $2.2 million in Q4 2020 compared with $1.8 million in Q4 2019.

Operating expenses in the fourth quarter of 2020 were $3.8 million compared with $5.5 million in the fourth quarter of 2019. The improvement in operating expenses is attributable to savings on sales and marketing expenses.

Net income was $0.6 million during the fourth quarter of 2020 compared with a net loss of $1.6 million in the fourth quarter of 2019. The $2.2 million improvement in net earnings is the result of a reduction in sales and marketing expenses and the recognition of a grant of $0.9 M from the Canadian government.

EBITDAO1  (see table B) was $1.4 million in the fourth quarter of 2020 compared with $(1.1) million in the fourth quarter of 2019.

Table A

Consolidated statement of results

(In thousands of Canadian dollars, except for information per share)

For the year ended
August 31, 2020

For the year ended
August 31, 2019*

$

$

     

Revenues

   

Sales

   

       Medical

26,996

27,032

       Industrial

2,457

2,418

 

29,453

29,450

Licensing

-

3,302

 

29,453

32,752

Cost of Sales

13,834

14,037

Gross margin

15,619

18,715

Gross margin (%)

53%

57%

     

Operating Expenses

   

       Administration

5,041

4,593

       Sales and marketing

8,780

11,116

       R&D

5,441

4,801

 

19,262

20,510

     

Other income

(1,683)

-

Financial expenses

684

157

     

Net loss and comprehensive loss

(2,644)

(1,952)

     

Net loss per share – Basic and diluted

(0.03)

(0.02)

 

*Comparative figures have not been adjusted to reflect the adoption of IFRS 16 – Leases as set out in the accounting policy

 

Table B

Reconciliation of net earnings (loss) to EBITDAO

The Earnings Before Interest, Taxes, Depreciation, Amortisation and Stock-based compensation costs (EBITDAO) has no normalized sense prescribed by IFRS. It is not very probable that this measure is comparable with measures of the same type presented by other issuers. EBITDAO is defined by the Company as the addition of net loss, financial expenses (income), depreciation and amortisation and stock-based compensation costs. The Company uses EBITDAO for the purposes of evaluating its historical and prospective financial performance. This measure also helps the Company to plan and forecast for future periods as well as to make operational and strategic decisions. The Company believes that providing this information to investors, in addition to IFRS measures, allows them to see the Company's results through the eyes of management, and to better understand its historical and future financial performance.

Reconciliation of consolidated Net loss to EBITDAO

(In thousands of Canadian dollars)

For the year ended
August 31, 2020

For the year ended
August 31, 2019*

$

$

     

Net loss

(2,644)

(1,952)

Financial expenses

684

157

Depreciation of PP&E and right-of-use-assets

1,548

802

Amortization of intangible assets

120

91

Stock-based compensation cost

438

489

     

EBITDAO

146

(413)

 

Reconciliation of consolidated Net Earnings (loss) to EBITDAO

(In thousands of Canadian dollars)

For the quarter ended
August 31, 2020

For the quarter ended
August 31, 2019*

$

$

     

Net earnings (loss)

558

(1,618)

Financial expenses

356

160

Depreciation of PP&E and right-of-use-assets

386

205

Amortization of intangible assets

24

25

Stock-based compensation cost

78

121

     

EBITDAO

1,402

(1,107)

 

*Comparative figures have not been adjusted to reflect the adoption of IFRS 16 – Leases as set out in the accounting policy

Table C

CONSOLIDATED BALANCE SHEET HIGHLIGHTS

(in thousands of Canadian dollars)

As at

As at

August 31, 2020

August 31, 2019*

$

$

     

Cash and cash equivalents

10,884

14,856

Trade and other receivables

4,041

5,115

Inventories

6,505

5,133

Total Current Assets

22,543

26,099

Property, plant, and equipment

3,230

2,962

Intangible assets

1,622

1,027

Right-of-use assets

4,513

-

Total Assets

31,908

30,088

     

Current liabilities

5,655

4,787

Long-term debt

6,608

7,135

Lease liabilities

4,298

-

Total Liabilities

16,561

12,648

Shareholders' equity

15,347

17,441

*Comparative figures have not been adjusted to reflect the adoption of IFRS 16 – Leases as set out in the accounting policy

About OpSens Inc. (www.OpSens.com or www.OpSensmedical.com)

OpSens focuses mainly on coronary physiology products in interventional cardiology. OpSens offers an advanced optical-based pressure guidewire that aims at improving the clinical outcome of patients with coronary artery disease. Its flagship product, the OptoWire, is a second-generation fiber optic pressure guidewire designed to provide the lowest drift in the industry and excellent lesions access. The OptoWire has been used in the diagnosis and treatment of over 100,000 patients in more than 30 countries. It is approved for sale in the United States, European Union, Japan, and Canada.

OpSens is also involved in industrial activities in developing, manufacturing, and installing innovative fiber optic sensing solutions for critical applications.

Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance, and achievements of OpSens to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.

Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

________________________

This non-IFRS measure is presented for additional information and should be used in conjunction with the IFRS financial measures presented. Definition of non-IFRS measures is explained at table B to provide the reader with a better understanding of the metrics used by management. Comparative figures have not been restated to reflect the adoption of IFRS 16 - Leases, as set out in the accounting policy.

SOURCE OPSENS Inc.

 
 
Company Codes: OTC-QX:OPSSF, Toronto:OPS, OTC-PINK:OPSSF
 

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