| | LAKE FOREST, Calif., Aug. 13, 2019 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) (“InMode”), a leading global provider of innovative medical technologies, today announced financial results for the second quarter ended June 30, 2019. Second Quarter 2019 Highlights: - Quarterly revenue of $38.8 million, a 55% increase year-over-year
- Gross margins of 87%, compared to 84% year-over-year
- Net income of $15.8 million, a 109% increase year-over-year
- Total cash position of $82.8 million, including cash and cash equivalents, marketable securities and deposits. This excludes proceeds raised in InMode’s initial public offering
Management Comments “We are pleased with our second quarter results, which are consistent with both our reported expectations and the positive trends we are continuing to see in our business,” commented Moshe Mizrahy, Chief Executive Officer and Chairman of the Board. 2019 Second Quarter Results Total revenues for the second quarter of 2019 were $38.8 million, an increase of 55% compared to the second quarter of 2018. This was primarily driven by higher revenues in the U.S. resulting from an expansion of our direct sales organization, and an increase in the number of clinical workshops for customers and prospects and an increase in the average sale price of platforms. Gross margin for the second quarter of 2019 was 87%, compared to the gross margin of 84% in the second quarter of 2018. This increase is primarily attributable to an increase in average sale price of our platforms in the U.S. Operating margin for the second quarter of 2019 was 41%, compared to the operating margin of 31% in the second quarter of 2018. This increase is primarily attributable to an estimated increase in our gross profit exceeding the increase in our operating expenses. The company reported net income of $15.8 million, or $0.45 per diluted share, in the second quarter of 2019. This is compared with net income of $7.6 million, or $0.21 per diluted share, in the second quarter of 2018. Total cash position, including cash and cash equivalents, marketable securities and deposits, was $82.8 million as of June 30, 2019. This excludes proceeds raised in InMode’s initial public offering. About InMode InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio-frequency (“RF”) technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically-accepted minimally-invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com. Forward-Looking Statements The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or our future financial or operating performance. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “will,” “would” and similar expressions that concern our expectations, strategy plans or intentions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements contained in our prospectus (included in the Registration Statement on Form F-1, filed with the Securities and Exchange Commission (File No. 333-232615), as amended). InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. | INMODE LTD. | | CONDENSED CONSOLIDATED STATEMENTS OF INCOME | | (U.S. dollars in thousands, except for per share data) | | (Unaudited) | | | | | Three months ended
June 30 | Six months ended
June 30 | | | 2019 | 2018 | 2019 | 2018 | | | | | | | | REVENUES | 38,797 | 25,050 | 69,349 | 45,961 | | COST OF REVENUES | 4,875 | 3,917 | 9,146 | 7,449 | | GROSS PROFIT | 33,922 | 21,133 | 60,203 | 38,512 | | OPERATING EXPENSES: | | | | | | Research and development | 1,584 | 941 | 2,783 | 1,821 | | Sales and marketing | 15,898 | 11,330 | 29,995 | 20,995 | | General and administrative | 713 | 1,019 | 1,766 | 1,914 | | TOTAL OPERATING EXPENSES | 18,195 | 13,290 | 34,544 | 24,730 | | INCOME FROM OPERATIONS | 15,727 | 7,843 | 25,659 | 13,782 | | Finance income (expense), net | 382 | (70) | 785 | 208 | | INCOME BEFORE TAXES | 16,109 | 7,773 | 26,444 | 13,990 | | INCOME TAX | 274 | 193 | 451 | 44 | | NET INCOME | 15,835 | 7,580 | 25,993 | 13,946 | | Less: Net income attributable to non-controlling interests | (38) | - | (72) | - | | NET INCOME ATTRIBUTABLE TO INMODE LTD. SHAREHOLDERS | 15,797 | 7,580 | 25,921 | 13,946 | | | | | | | | NET INCOME PER SHARE (1): | | | | | | Basic | 0.58 | 0.27 | 0.96 | 0.50 | | Diluted | 0.45 | 0.21 | 0.73 | 0.38 | | | | | | | | WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (1) | | | | | | Basic | 26,963 | 26,627 | 26,891 | 26,563 | | Diluted | 35,344 | 35,060 | 35,334 | 34,949 | | | | | (1) | The number of shares have been adjusted retroactively for a 1-for-1.789 stock split of InMode shares by way of an issuance of bonus shares, that occurred pursuant to a resolution of our board of directors dated July 24, 2019. | | INMODE LTD. | | CONDENSED CONSOLIDATED BALANCE SHEETS | | (U.S. dollars in thousands, except for per share data) | | (Unaudited) | | | | | June 30, | December 31, | | | 2019 | 2018 | | Assets | | | | CURRENT ASSETS: | | | | Cash and cash equivalents | 28,877 | 24,721 | | Marketable securities | 36,677 | 26,532 | | Short-term bank deposits | 17,220 | 10,045 | | Accounts receivable, net of allowance for doubtful accounts | 5,238 | 7,008 | | Other receivables | 1,326 | 2,495 | | Inventories | 7,616 | 6,963 | | TOTAL CURRENT ASSETS | 96,954 | 77,764 | | NON-CURRENT ASSETS: | | | | Accounts receivable | 486 | 544 | | Deferred offering costs | 1,185 | 895 | | Deferred income taxes, net | 1,452 | 1,309 | | Property and equipment, net | 871 | 544 | | Operating lease right-of-use assets | 1,609 | - | | TOTAL NON-CURRENT ASSETS | 5,603 | 3,292 | | TOTAL ASSETS | 102,557 | 81,056 | | | | | | Liabilities and shareholders’ equity | | | | CURRENT LIABILITIES: | | | | Accounts payable | 4,867 | 4,509 | | Contract liabilities | 8,276 | 5,755 | | Other liabilities | 9,802 | 9,165 | | Accrued contingencies | - | 10,000 | | TOTAL CURRENT LIABILITIES | 22,945 | 29,429 | | NON-CURRENT LIABILITIES: | | | | Contract liabilities | 3,839 | 3,982 | | Other liabilities | 771 | 771 | | Operating lease liabilities | 1,021 | - | | Deferred income taxes | 57 | 11 | | TOTAL NON-CURRENT LIABILITIES | 5,688 | 4,764 | | TOTAL LIABILITIES | 28,633 | 34,193 | | | | | | REDEEMABLE NON-CONTROLLING INTEREST | 2,317 | 2,187 | | | | | | TOTAL SHAREHOLDERS’ EQUITY | 71,607 | 44,676 | | TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 102,557 | 81,056 | | INMODE LTD. | | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | | (U.S. dollars in thousands, except for per share data) | | (Unaudited) | | | | | Three months ended
June 30 | Six months ended
June 30 | | | 2019 | 2018 | 2019 | 2018 | | | | | | | | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | Net income | 15,835 | 7,580 | 25,993 | 13,946 | | Adjustments required to reconcile net income to net cash provided by operating activities: | | | | | | Depreciation and amortization | 74 | 43 | 137 | 78 | | Stock-based compensation expense | 412 | 891 | 814 | 1,724 | | Allowance for doubtful accounts | 19 | 44 | 78 | (29) | | Gains on marketable securities, net | - | (21) | - | (54) | | Changes in fair value of marketable securities, net | - | (30) | - | (36) | | Finance income, net | (126) | - | (309) | - | | Provision for deferred income taxes, net | (77) | (123) | (143) | (127) | | Changes in operating assets and liabilities: | | | | | | Decrease in accounts receivable | 1,580 | 2,308 | 1,727 | 1,744 | | Decrease in other receivables | 291 | 204 | 1,164 | 455 | | Decrease (increase) in inventories | (524) | 72 | (653) | (752) | | Increase (decrease) in accounts payable | 1,085 | (722) | 70 | (235) | | Increase (decrease) in other liabilities | 465 | (1,840) | 16 | (1,657) | | Increase (decrease) in contract liabilities | (533) | 4,396 | 2,378 | 5,142 | | Decrease in accrued contingencies | - | - | (10,000) | - | | Net cash provided by operating activities | 18,501 | 12,802 | 21,272 | 20,199 | | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | Investment in short-term deposit | (6,090) | - | (17,090) | - | | Proceeds from short-term deposit | 5,000 | - | 10,000 | - | | Purchase of fixed assets | (86) | (166) | (464) | (211) | | Purchase of marketable securities | (9,421) | (4,733) | (14,339) | (7,177) | | Proceeds from sale of marketable securities | 2,000 | 2,059 | 4,603 | 2,555 | | Net cash (used in) investing activities | (8,597) | (2,840) | (17,290) | (4,833) | | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | Exercise of options | 15 | 7 | 137 | 157 | | Net cash provided by financing activities | 15 | 7 | 137 | 157 | | EFFECT OF EXCHANGE RATE CHANGES ON CASH | 7 | (107) | 37 | (118) | | NET INCREASE IN CASH AND CASH EQUIVALENTS | 9,926 | 9,862 | 4,156 | 15,405 | | | | | | | | CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 18,951 | 23,136 | 24,721 | 17,593 | | CASH AND CASH EQUIVALENTS AT END OF PERIOD | 28,877 | 32,998 | 28,877 | 32,998 | | INMODE LTD. | | CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS | | (U.S. dollars in thousands, except for per share data) | | (Unaudited) | | | | | Three months ended
June 30 | Six months ended
June 30 | | | 2019 | 2018 | 2019 | 2018 | | | | | | | | Revenues by Geography: | | | | | | United States | 32,720 | 20,547 | 56,806 | 37,865 | | International | 6,077 | 4,503 | 12,543 | 8,096 | | Total Net Revenue | 38,797 | 25,050 | 69,349 | 45,961 | | U.S as percentage of total revenue | 84% | 82% | 82% | 82% | | Company Contact: | Investor Relations Contact: | | Yair Malca | Miri Segal | | Chief Financial Officer | MS-IR LLC | | Phone: (949) 305-0108 | Phone: (917) 607-8654 | | Email: Yair.Malca@inmodemd.com | Email: ir@inmodemd.com |  View original content to download multimedia:http://www.prnewswire.com/news-releases/inmode-reports-second-quarter-2019-financial-results-record-quarterly-revenue-of-38-8-million-reflects-growth-of-55-over-prior-year-300901088.html
SOURCE InMode | |
