Penumbra, Inc. Reports First Quarter 2021 Financial Results

 

ALAMEDA, Calif., May 4, 2021 /PRNewswire/ -- Penumbra, Inc.,(NYSE: PEN), a global healthcare company focused on innovative therapies, today reported financial results for the first quarter ended March 31, 2021.

  • Revenue of $169.2 million in the first quarter of 2021, an increase of 23.2%, or 21.5% in constant currency1, compared to the first quarter of 2020.

First Quarter 2021 Financial Results

Total revenue increased to $169.2 million for the first quarter of 2021 compared to $137.3 million for the first quarter of 2020, an increase of 23.2%, or 21.5% on a constant currency basis. The United States represented 71% of total revenue and international represented 29% of total revenue for the first quarter of 2021. Revenue from sales of vascular products grew to $89.2 million for the first quarter of 2021, an increase of 50.5%, or 49.1% on a constant currency basis. Revenue from sales of neuro products grew to $80.0 million for the first quarter of 2021, an increase of 2.5%, or 0.6% on a constant currency basis.

Gross profit was $111.3 million, or 65.8% of total revenue, for the first quarter of 2021, compared to $88.0 million, or 64.1% of total revenue, for the first quarter of 2020.

Total operating expenses for the first quarter of 2021 were $97.9 million, or 57.8% of total revenue. This compares to total operating expenses of $87.4 million, or 63.6% of total revenue, for the first quarter of 2020. R&D expenses were $18.1 million for the first quarter of 2021, compared to $12.9 million for the first quarter of 2020. SG&A expenses were $79.8 million for the first quarter of 2021, compared to $74.5 million for the first quarter of 2020.

Operating income for the first quarter of 2021 was $13.5 million. This compares to an operating income of $0.6 million for the first quarter of 2020.

1 See "Non-GAAP Financial Measures" for important information about our use of non-GAAP measures.

Updated Full Year 2021 Financial Outlook

The Company is increasing its guidance for 2021 total revenue to be in the range of $695 million to $705 million, which represents growth of 24% to 26% over 2020 revenue of $560.4 million. This new range compares to the previous range of $675 million to $685 million.

Webcast and Conference Call Information

Penumbra, Inc. will host a conference call to discuss the first quarter 2021 financial results after market close on Tuesday, May 4, 2021 at 4:30 PM Eastern Time. The conference call can be accessed live over the phone by dialing (833) 350-1434 for domestic and international callers (conference id: 6645719), or the webcast can be accessed on the "Events" section under the "Investors" tab of the Company's website at: www.penumbrainc.com. The webcast will be available on the Company's website for at least two weeks following the completion of the call.

About Penumbra

Penumbra, Inc., headquartered in Alameda, California, is a global healthcare company focused on innovative therapies. Penumbra designs, develops, manufactures and markets novel products and has a broad portfolio that addresses challenging medical conditions in markets with significant unmet need. Penumbra sells its products to hospitals and healthcare providers primarily through its direct sales organization in the United States, most of Europe, Canada and Australia, and through distributors in select international markets. The Penumbra logo is a trademark of Penumbra, Inc. For more information, visit www.penumbrainc.com.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company uses the following non-GAAP financial measures in this press release: a) non-GAAP net income (loss) and non-GAAP diluted earnings per share ("EPS") and b) constant currency.

Non-GAAP net income (loss) and non-GAAP diluted EPS. The Company defines non-GAAP net income (loss) as net income attributable to Penumbra, Inc. excluding the effects of the excess tax benefits associated with share-based compensation arrangements. The Company defines non-GAAP diluted EPS as GAAP diluted EPS, excluding the effects of the same item above.

Constant Currency. The Company's constant currency revenue disclosures estimate the impact of changes in foreign currency rates on the translation of the Company's current period revenue as compared to the applicable comparable period in the prior year. This impact is derived by taking the current local currency revenue and translating it into U.S. dollars based upon the foreign currency exchange rates used to translate the local currency revenue for the applicable comparable period in the prior year, rather than the actual exchange rates in effect during the current period. It does not include any other effect of changes in foreign currency rates on the Company's results or business.

Full reconciliation of these non-GAAP measures to the most comparable GAAP measures is set forth in the tables below.

Our management believes the non-GAAP financial measures disclosed in this press release are useful to investors in assessing the operating performance of our business and provide meaningful comparisons to prior periods and thus a more complete understanding of our business than could be obtained absent this disclosure. In addition, non-GAAP financial measures enable comparison of the Company's financial results with other public companies.

The non-GAAP financial measures included in this press release may be different from, and therefore may not be comparable to, similarly titled measures used by other companies. These non-GAAP measures should not be considered in isolation or as alternatives to GAAP measures. We urge investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate our business.

Forward-Looking Statements

Except for historical information, certain statements in this press release are forward-looking in nature and are subject to risks, uncertainties and assumptions about us. Our business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may differ materially from those projected by any forward-looking statements. Factors that could cause actual results to differ from those projected include, but are not limited to: the impact of the COVID-19 pandemic on our business, results of operations and financial condition; failure to sustain or grow profitability or generate positive cash flows; failure to effectively introduce and market new products; delays in product introductions; significant competition; inability to further penetrate our current customer base, expand our user base and increase the frequency of use of our products by our customers; inability to achieve or maintain satisfactory pricing and margins; manufacturing difficulties; permanent write-downs or write-offs of our inventory; product defects or failures; unfavorable outcomes in clinical trials; inability to maintain our culture as we grow; fluctuations in foreign currency exchange rates; and potential adverse regulatory actions. These risks and uncertainties, as well as others, are discussed in greater detail in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 23, 2021. There may be additional risks of which we are not presently aware or that we currently believe are immaterial which could have an adverse impact on our business. Any forward-looking statements are based on our current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. We make no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change.

Penumbra, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

(in thousands)

 
   

March 31, 2021

 

December 31, 2020

Assets

       

Current assets:

       

     Cash and cash equivalents

 

$

55,632

   

$

69,670

 

     Marketable investments

 

186,977

   

195,162

 

     Accounts receivable, net

 

126,415

   

114,608

 

     Inventories

 

245,321

   

219,527

 

     Prepaid expenses and other current assets

 

20,782

   

18,735

 

          Total current assets

 

635,127

   

617,702

 

Property and equipment, net

 

50,314

   

48,169

 

Operating lease right-of-use assets

 

40,691

   

41,192

 

Finance lease right-of-use assets

 

37,697

   

38,065

 

Intangible assets, net

 

10,097

   

10,639

 

Goodwill

 

8,006

   

8,372

 

Deferred taxes

 

48,978

   

50,139

 

Other non-current assets

 

9,914

   

8,705

 

         Total assets

 

$

840,824

   

$

822,983

 

Liabilities and Stockholders' Equity

       

Current liabilities:

       

     Accounts payable

 

$

15,389

   

$

14,109

 

     Accrued liabilities

 

90,214

   

85,795

 

  Current operating lease liabilities

 

4,822

   

4,697

 

  Current finance lease liabilities

 

1,437

   

1,331

 

          Total current liabilities

 

111,862

   

105,932

 

Non-current operating lease liabilities

 

43,525

   

44,183

 

Non-current finance lease liabilities

 

27,000

   

27,066

 

Other non-current liabilities

 

7,966

   

8,014

 

          Total liabilities

 

190,353

   

185,195

 

Stockholders' equity:

       

Common stock

 

36

   

36

 

Additional paid-in capital

 

603,022

   

598,299

 

Accumulated other comprehensive (loss) income

 

(425)

   

2,541

 

Retained earnings

 

52,458

   

40,622

 

Total Penumbra, Inc. stockholders' equity

 

655,091

   

641,498

 

Non-controlling interest

 

(4,620)

   

(3,710)

 

Total stockholders' equity

 

650,471

   

637,788

 

Total liabilities and stockholders' equity

 

$

840,824

   

$

822,983

 
         

 

Penumbra, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

(in thousands, except share and per share amounts)

 
   

Three Months Ended March 31,

   

2021

 

2020

Revenue

 

$

169,204

   

$

137,329

 

Cost of revenue

 

57,867

   

49,320

 

Gross profit

 

111,337

   

88,009

 

Operating expenses:

       

Research and development

 

18,076

   

12,946

 

Sales, general and administrative

 

79,798

   

74,453

 

Total operating expenses

 

97,874

   

87,399

 

Income from operations

 

13,463

   

610

 

Interest income, net

 

480

   

299

 

Other income, net

 

(1,476)

   

(1,655)

 

Income (loss) before income taxes

 

12,467

   

(746)

 

Provision for (benefit from) income taxes

 

1,541

   

(1,634)

 

Consolidated net income

 

$

10,926

   

$

888

 

Net loss attributable to non-controlling interest

 

(910)

   

(537)

 

Net income attributable to Penumbra, Inc.

 

$

11,836

   

$

1,425

 
         

Net income attributable to Penumbra, Inc. per share:

       

Basic

 

$

0.32

   

$

0.04

 

Diluted

 

$

0.32

   

$

0.04

 

Weighted average shares outstanding:

       

Basic

 

36,455,712

   

35,042,912

 

Diluted

 

37,533,520

   

36,362,726

 

 

Penumbra, Inc.

Reconciliation of GAAP Net Income and GAAP Diluted EPS to Non-GAAP Net Income (Loss) and Non-GAAP Diluted EPS1

(unaudited)

(in thousands, except per share amounts)

 
   

Three Months Ended

March 31, 2021

 

Three Months Ended

March 31, 2020

   

Net (loss) income

 

Diluted EPS

 

Net income

 

Diluted EPS

GAAP net income

 

$

11,836

   

$

0.32

   

$

1,425

   

$

0.04

 

GAAP net income includes the effect of the following items:

               

Excess tax benefits related to stock compensation awards

 

(1,784)

   

(0.05)

   

(1,482)

   

(0.04)

 

Non-GAAP net income (loss)

 

$

10,052

   

$

0.27

   

$

(57)

   

$

0.00

 

 

Penumbra, Inc.

Reconciliation of Revenue Growth by Geographic Regions to Constant Currency Revenue Growth1

(unaudited)

(in thousands)

 
   

Three Months Ended March 31,

 

Reported Change

 

FX Impact

 

Constant Currency Change

   

2021

 

2020

 

$

 

%

 

$

 

$

 

%

United States

 

$

120,070

   

$

95,774

   

$

24,296

   

25.4

%

 

$

   

$

24,296

   

25.4

%

International

 

49,134

   

41,555

   

7,579

   

18.2

%

 

(2,299)

   

5,280

   

12.7

%

Total

 

$

169,204

   

$

137,329

   

$

31,875

   

23.2

%

 

$

(2,299)

   

$

29,576

   

21.5

%

 

Penumbra, Inc.

Reconciliation of Revenue Growth by Product Categories to Constant Currency Revenue Growth1

(unaudited)

(in thousands)

 
   

Three Months Ended March 31,

 

Reported Change

 

 FX Impact

 

Constant Currency Change

   

2021

 

2020

 

$

 

%

 

$

 

$

 

%

Vascular

 

$

89,165

   

$

59,253

   

$

29,912

   

50.5

%

 

$

(813)

   

$

29,099

   

49.1

%

Neuro

 

80,039

   

78,076

   

1,963

   

2.5

%

 

(1,486)

   

477

   

0.6

%

Total

 

$

169,204

   

$

137,329

   

$

31,875

   

23.2

%

 

$

(2,299)

   

$

29,576

   

21.5

%

 

1See "Non-GAAP Financial Measures" above for important information about our use of non-GAAP measures and further information about our non-GAAP net income (loss) and non-GAAP diluted EPS measures and our use of constant currency.

 

Investor Relations
Penumbra, Inc.
510-995-2461
investors@penumbrainc.com


 

 

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SOURCE Penumbra, Inc.

 
 
Company Codes: NYSE:PEN
 

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