Revenue of $83.9M in the third quarter of 2017, an increase of 24.9%, or 24.1% in constant currency1, over the third quarter of 2016.
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ALAMEDA, Calif., Nov. 7, 2017 /PRNewswire/ -- Penumbra, Inc.(NYSE: PEN), a global healthcare company focused on interventional therapies, today reported financial results for the third quarter ended September 30, 2017.
Third Quarter 2017 Financial Results Gross profit was $54.8 million, or 65.3% of total revenue, for the third quarter of 2017, compared to $42.9 million, or 63.8% of total revenue, for the third quarter of 2016. Total operating expenses were $54.1 million, or 64.5% of total revenue, for the third quarter of 2017, compared to $44.2 million, or 65.8% of total revenue, for the third quarter of 2016. R&D expenses were $8.1 million for the third quarter of 2017, compared to $6.5 million for the third quarter of 2016. SG&A expenses were $46.0 million for the third quarter of 2017, compared to $37.7 million for the third quarter of 2016. Operating income for the third quarter of 2017 was $0.7 million, compared to operating loss of $1.4 million for the third quarter of 2016. Operating income for the third quarter of 2017 benefited from a $1.2 million net refund of previously paid medical device excise tax. Full Year 2017 Financial Outlook Webcast and Conference Call Information About Penumbra Non-GAAP Financial Measures Our 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. Specifically, we consider the change in constant currency revenue as a useful metric as it provides an alternative framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. 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
1 Constant currency results are
non-GAAP financial measures.
Please refer to "Non-GAAP
Financial Measures" herein for
important information about our
use of constant currency results
(including reconciliations to the
most comparable GAAP measures).
Penumbra, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
September 30, December 31,
2017 2016
---- ----
Assets
Current assets:
Cash and cash equivalents $65,621 $13,236
Marketable investments 153,203 115,517
Accounts receivable, net 47,964 43,335
Inventories 90,529 73,012
Prepaid expenses and other
current assets 14,464 18,727
Total current assets 371,781 263,827
Property and equipment, net 28,259 21,464
Intangible assets, net 23,821 -
Goodwill 7,449 -
Deferred taxes 22,503 22,476
Other non-current assets 5,281 487
----- ---
Total assets $459,094 $308,254
======== ========
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable $5,768 $4,110
Accrued liabilities 45,312 31,690
------ ------
Total current liabilities 51,080 35,800
Deferred rent 6,065 5,083
Other non-current liabilities 18,117 824
------ ---
Total liabilities 75,262 41,707
Stockholders' equity:
Common stock 33 31
Additional paid-in capital 389,682 273,865
Accumulated other
comprehensive income (loss) 1,204 (4,688)
Accumulated deficit (7,087) (2,661)
------ ------
Total stockholders' equity 383,832 266,547
------- -------
Total liabilities and
stockholders' equity $459,094 $308,254
======== ========
Penumbra, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except share and per share amounts)
Three Months Ended September 30, Nine Months Ended September 30,
2017 2016(1) 2017 2016(1)
---- ------ ---- ------
Revenue $83,911 $67,187 $237,713 $190,212
Cost of revenue 29,134 24,313 84,298 65,963
------ ------ ------ ------
Gross profit 54,777 42,874 153,415 124,249
------ ------ ------- -------
Operating expenses:
Research and development 8,132 6,497 23,260 17,762
Sales, general and
administrative 45,962 37,740 132,846 106,685
------ ------ ------- -------
Total operating expenses 54,094 44,237 156,106 124,447
------ ------ ------- -------
Income (loss) from operations 683 (1,363) (2,691) (198)
Interest income, net 658 631 1,926 1,700
Other expense, net (647) (360) (1,368) (856)
---- ---- ------ ----
Income (loss) before income
taxes 694 (1,092) (2,133) 646
Provision for (benefit from)
income taxes 456 (12,998) 2,293 (16,564)
--- ------- ----- -------
Net income (loss) $238 $11,906 $(4,426) $17,210
==== ======= ======= =======
Net income (loss) per share $0.01 $0.39 $(0.14) $0.57
-Basic
-Diluted $0.01 $0.35 $(0.14) $0.52
===== ===== ====== =====
Weighted average shares used to
compute net income (loss) per
share 33,446,841 30,604,384 32,766,135 30,269,463
-Basic
-Diluted 35,664,272 33,755,383 32,766,135 33,367,618
========== ========== ========== ==========
1 We elected to early adopt ASU 2016-09
in the fourth quarter of 2016. Our
condensed consolidated statement of
operations for the three and nine
months ended September 30, 2016 was
adjusted to include the impact of ASU
2016-09 adoption. See Notes 2 and 15
in the notes to our consolidated
financial statements in our Annual
Report on Form 10-K for the year ended
December 31, 2016 filed with the SEC
Penumbra, Inc.
Reconciliation of Revenue Growth by Geographic Regions to Constant Currency Revenue Growth(1)
(unaudited)
(in thousands)
Three Months Ended September 30, Reported Change FX Impact Constant Currency Change
---------
2017 2016 $ % $ $ %
---- ---- --- --- --- --- ---
United States $55,652 $44,380 $11,272 25.4% $ - $11,272 25.4%
International 28,259 22,807 5,452 23.9% (555) 4,897 21.5%
------ ------ ----
Total $83,911 $67,187 $16,724 24.9% $(555) $16,169 24.1%
======= ======= ======= ===== =======
Penumbra, Inc.
Reconciliation of Revenue Growth by Product Categories to Constant Currency Revenue Growth(1)
(unaudited)
(in thousands)
Three Months Ended September 30, Reported Change FX Impact Constant Currency Change
---------
2017 2016 $ % $ $ %
---- ---- --- --- --- --- ---
Neuro $58,670 $47,534 $11,136 23.4% $(424) $10,712 22.5%
Peripheral Vascular 25,241 19,653 5,588 28.4% (131) 5,457 27.8%
------ ------ ---- -----
Total $83,911 $67,187 $16,724 24.9% $(555) $16,169 24.1%
======= ======= ======= ===== =======
Penumbra, Inc.
Reconciliation of Revenue Growth by Geographic Regions to Constant Currency Revenue Growth(1)
(unaudited)
(in thousands)
Nine Months Ended September 30, Reported Change FX Impact Constant Currency Change
---------
2017 2016 $ % $ $ %
---- ---- --- --- --- --- ---
United States $157,559 $127,484 $30,075 23.6% $ - $30,075 23.6%
International 80,154 62,728 17,426 27.8% 315 17,741 28.3%
------ ------ ---
Total $237,713 $190,212 $47,501 25.0% $315 $47,816 25.1%
======== ======== ======= ==== =======
Penumbra, Inc.
Reconciliation of Revenue Growth by Product Categories to Constant Currency Revenue Growth(1)
(unaudited)
(in thousands)
Nine Months Ended September 30, Reported Change FX Impact Constant Currency Change
---------
2017 2016 $ % $ $ %
---- ---- --- --- --- --- ---
Neuro $165,122 $134,180 $30,942 23.1% $235 $31,177 23.2%
Peripheral Vascular 72,591 56,032 16,559 29.6% 80 16,639 29.7%
------ ------ ---
Total $237,713 $190,212 $47,501 25.0% $315 $47,816 25.1%
======== ======== ======= ==== =======
(1)See "Non-GAAP Financial
Measures" above for
important information about
our use of this non-GAAP
measure and further
information about our
calculation of constant
currency results.
Investor Relations
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Company Codes: NYSE:PEN |
