Sientra, Inc. today announced its financial results for the fourth quarter and full year ended December 31, 2021.
Sixth Consecutive Quarter of Record Growth
Doubled Augmentation and Reconstruction Market Share Since 2019
Broadened Market Opportunity with Addition of Novel, FDA-Cleared
Fat Grafting Technology
SANTA BARBARA, Calif., March 23, 2022 (GLOBE NEWSWIRE) -- Sientra, Inc., (NASDAQ: SIEN) (“Sientra” or the “Company”), a medical aesthetics company focused on enhancing lives by advancing the art of plastic surgery, today announced its financial results for the fourth quarter and full year ended December 31, 2021.
Q4 and Full Year 2021 Financial Highlights
- Net sales of $22.6 million, representing growth of 26.6% over the fourth quarter of 2020, excluding discontinued operations.
- Net sales of $80.7 million, representing growth of 47% over the full year 2020, excluding discontinued operations.
- Cash of $51.8 million as of December 31, 2021.
Business Highlights:
- Expanded market share in Augmentation to approximately 11%.
- Expanded market share in Reconstruction to approximately 14%.
- Acquired novel fat grafting technology developed at Massachusetts General Hospital.
- Entered into agreements with distribution partners in Canada, China and the Middle East in preparation for approvals and expansion into those markets.
- Launched six-tab version of Dermaspan® tissue expander to address market need for additional fixation sites.
- Filed 510(k) for next-generation Allox2 PRO™ tissue expander, the only dual-port and MRI-compatible tissue expander.
“In 2021, Sientra became the fastest growing breast implant company in the U.S., with market share gains that nearly doubled in both augmentation and reconstruction since 2019,” said Ron Menezes, President and Chief Executive Officer of Sientra. “I’m proud of the many achievements our team made throughout the year, which drove consistent record topline growth each quarter.”
“To further advance our position in plastic surgery, we recently completed an acquisition that enables us to add fat grafting to our product portfolio, which is used today in most reconstruction surgeries. We also enhanced our industry-leading tissue expander portfolio, with the launch of our Dermaspan 6-tab expander and filing a 510(k) for our next-generation, dual-port, MRI-compatible Allox2 PRO expander.”
“With strong momentum behind us, we have many exciting catalysts on the horizon. In 2022, we expect to continue to expand our market share and number of accounts in both reconstruction and augmentation as we further progress towards our goal of becoming a leader in aesthetics focused on plastic surgeons,” Mr. Menezes concluded.
Fourth Quarter 2021 Financial Results
- Total net sales were $22.6 million, an increase of 26.6% compared to total net sales of $17.9 million for the same period in 2020.
- Gross profit for the fourth quarter 2021 was $12.3 million, or 54.4% of sales, compared to gross profit of $10.2 million, or 56.9% of sales, for the same period in 2020.
- Operating expenses for the fourth quarter 2021 of $26.1 million compared to $26.2 million for the same period in 2020.
- Loss from continuing operations for the fourth quarter 2021 was $15.9 million, or $0.27 per share, compared to a net loss of $20.3 million, or $0.40 per share, for the same period in 2020.
- On a non-GAAP basis, adjusted EBITDA loss for the fourth quarter 2021 was $9.8 million as compared to a net loss of $9.6 million for the same period in 2020.
Full Year 2021 Financial Results
- Total net sales for the full year 2021 were $80.7 million, an increase of 47% compared to total net sales of $55 million for the same period in 2020.
- Gross profit for the full year 2021 was $44.3 million, or 54.9% of sales, compared to gross profit of $31.4 million, or 57.1% of sales, for the full year 2020.
- Operating expenses for the full year 2021 increased by 15% to $90.7 million from $78.8 million for the full year 2020.
- Loss from continuing operations for the full year 2021 was $62.5 million, or a net loss of $1.10 per share, compared to a net loss of $67.1 million, or net loss of $1.34 per share, for the full year 2020.
- On a non-GAAP basis, adjusted EBITDA loss for the full year 2021 of $31.2 million compared to a net loss of $32.8 million for the full year 2020.
- Net cash and cash equivalents as of December 31, 2021, were $51.8 million, compared to $55 million at December 31, 2020.
Full Year 2022 Guidance
For full year 2022, the Company expects to achieve total net sales of $93 million to $97 million, representing growth of 15% to 20% compared to net sales of $80.7 million in 2021.
Conference Call
Sientra will hold a conference call today, March 23, 2022, at 4:30 pm ET to discuss fourth quarter and full year 2021 results. The dial-in numbers are 844-464-3933 for domestic callers and 765-507-2612 for international callers. The conference ID is 4862817. A live webcast of the conference call will be available on the Investor Relations section of the Company’s website at www.sientra.com. The webcast will be archived on the website following the completion of the call.
Use of Non-GAAP Financial Measures
Sientra has supplemented its US GAAP net income (loss) with a non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the Company, facilitates a more meaningful comparison of results for current periods with previous operating results, and assists management in analyzing future trends, making strategic and business decisions and establishing internal budgets and forecasts. A reconciliation of non-GAAP Adjusted EBITDA to GAAP net income (loss), the most directly comparable GAAP measure, is provided in the schedule below.
There are limitations in using this non-GAAP financial measure because it is not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. This non-GAAP financial measure should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with Sientra’s financial statements prepared in accordance with GAAP and the reconciliations of the non-GAAP financial measure provided in the schedule below.
About Sientra
Headquartered in Santa Barbara, California, Sientra is a medical aesthetics company exclusively focused on plastic surgery. The Company mission is to offer proprietary innovations and unparalleled partnerships that radically advance how plastic surgeons think, work and care for their patients. Sientra has developed a broad portfolio of products with technologically differentiated characteristics, supported by independent laboratory testing and strong clinical trial outcomes. The Company’s product portfolio includes its Sientra round and shaped breast implants, the first fifth generation breast implants approved by the FDA for sale in the United States, its ground-breaking Allox2® breast tissue expander with patented dual-port and integral drain technology, the AuraGen fat grafting system, and BIOCORNEUM®, the #1 performing, preferred and recommended scar gel of plastic surgeons(*).
Sientra uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Sientra is routinely posted and is accessible on the Company’s investor relations website at www.sientra.com
(*) Data on file
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, based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements are made only as of the date of this release. The words “believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan,” “position,” or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify estimates, projections and other forward-looking statements. Forward-looking statements may include information concerning the Company’s unaudited financial information for the fourth quarter and full year ended December 31, 2021, the impact of the COVID-19 pandemic on the Company and its operations, the Company’s possible or assumed future results of operations, including descriptions of the Company’s revenues, profitability, outlook and overall business strategy, the Company’s ability to successfully integrate the AuraGen fat grafting system into its existing operations, the reception of plastic surgeons to the Company’s products, including the AuraGen fat grafting system, the Dermaspan 6-tab and Allox2 PRO products, the Company’s ability to expand into aesthetic applications outside of breast procedures, and the Company’s ability to capture additional market share and customer accounts in the plastic surgery market. Such statements are subject to risks and uncertainties, including the audit of the Company’s financial statements which audit is not yet complete and the numbers presented here could differ from the final audited financial statements presented by the Company, the scope and duration of the COVID-19 pandemic, the Company’s ability to recapture delayed procedures resulting from the COVID-19 pandemic, the positive reaction from plastic surgeons and their patients to Sientra’s Breast Products, including the AuraGen fat grafting system, Dermaspan 6-tab and Allox2 PRO, the ability to meet consumer demand, the growth of the plastic surgery market and breast procedures, regulatory timelines in the United States and abroad for approval of the Company’s products, and the ability of the Company to execute on its commercial, marketing, research and development and regulatory plans. Additional factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of Sientra’s public filings with the Securities and Exchange Commission. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan,” “position,” or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify estimates, projections and other forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, and such estimates, projections and other forward-looking statements speak only as of the date they were made, and, except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection or forward-looking statement. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business.
Investor Relations Contact
Leigh Salvo
ir@sientra.com
| Sientra, Inc | |||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||
| (In thousands, except per share and share amounts) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||
| Net sales | $ | 22,648 | $ | 17,888 | $ | 80,683 | $ | 54,997 | |||||||||
| Cost of goods sold | 10,321 | 7,712 | 36,348 | 23,599 | |||||||||||||
| Gross profit | 12,327 | 10,176 | 44,335 | 31,398 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Sales and marketing | 14,108 | 12,547 | 48,456 | 37,405 | |||||||||||||
| Research and development | 3,494 | 2,562 | 10,456 | 8,704 | |||||||||||||
| General and administrative | 8,452 | 11,127 | 31,773 | 32,310 | |||||||||||||
| Restructuring | — | 1 | — | 390 | |||||||||||||
| Total operating expenses | 26,054 | 26,237 | 90,685 | 78,809 | |||||||||||||
| Loss from operations | (13,727 | ) | (16,061 | ) | (46,350 | ) | (47,411 | ) | |||||||||
| Other income (expense), net: | |||||||||||||||||
| Interest income | — | 2 | 4 | 205 | |||||||||||||
| Interest expense | (2,111 | ) | (2,154 | ) | (8,254 | ) | (9,438 | ) | |||||||||
| Change in fair value of derivative liability | — | (2,050 | ) | (14,460 | ) | (10,470 | ) | ||||||||||
| Other income (expense), net | (13 | ) | 1 | 6,562 | 35 | ||||||||||||
| Total other income (expense), net | (2,124 | ) | (4,201 | ) | (16,148 | ) | (19,668 | ) | |||||||||
| Loss from continuing operations before income taxes | (15,851 | ) | (20,262 | ) | (62,498 | ) | (67,079 | ) | |||||||||
| Income tax expense | 21 | 33 | 21 | 33 | |||||||||||||
| Loss from continuing operations | (15,872 | ) | (20,295 | ) | (62,519 | ) | (67,112 | ) | |||||||||
| Income (loss) from discontinued operations, net of income taxes | (196 | ) | (942 | ) | 37 | (22,835 | ) | ||||||||||
| Net loss | $ | (16,068 | ) | $ | (21,237 | ) | $ | (62,482 | ) | $ | (89,947 | ) | |||||
| Basic and diluted net loss per share attributable to common stockholders | |||||||||||||||||
| Continuing operations | $ | (0.27 | ) | $ | (0.40 | ) | $ | (1.10 | ) | $ | (1.34 | ) | |||||
| Discontinued operations | (0.00 | ) | (0.02 | ) | 0.00 | (0.45 | ) | ||||||||||
| Basic and diluted net loss per share | $ | (0.27 | ) | $ | (0.42 | ) | $ | (1.10 | ) | $ | (1.79 | ) | |||||
| Weighted average outstanding common shares used for net loss per share attributable to common stockholders: | |||||||||||||||||
| Basic and diluted | 58,170,277 | 50,462,124 | 57,057,107 | 50,233,175 | |||||||||||||
| Sientra, Inc | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| December 31, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 51,772 | $ | 54,967 | ||||
| Accounts receivable, net | 33,105 | 19,771 | ||||||
| Inventories, net | 52,914 | 39,168 | ||||||
| Prepaid expenses and other current assets | 2,979 | 1,891 | ||||||
| Current assets of discontinued operations | 4 | 13,475 | ||||||
| Total current assets | 140,774 | 129,272 | ||||||
| Property and equipment, net | 13,998 | 12,301 | ||||||
| Goodwill | 9,202 | 9,202 | ||||||
| Other intangible assets, net | 28,765 | 9,387 | ||||||
| Other assets | 7,165 | 8,011 | ||||||
| Non-current assets of discontinued operations | — | 805 | ||||||
| Total assets | $ | 199,904 | $ | 168,978 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 2,237 | $ | 4,670 | ||||
| Accounts payable | 7,402 | 5,799 | ||||||
| Accrued and other current liabilities | 21,298 | 28,408 | ||||||
| Customer deposits | 35,182 | 17,905 | ||||||
| Sales return liability | 13,399 | 9,192 | ||||||
| Current liabilities of discontinued operations | 500 | 4,686 | ||||||
| Total current liabilities | 80,018 | 70,660 | ||||||
| Long-term debt, net of current portion | 62,434 | 60,500 | ||||||
| Derivative liability | — | 26,570 | ||||||
| Deferred and contingent consideration | 5,872 | 2,350 | ||||||
| Warranty reserve and other long-term liabilities | 10,723 | 9,455 | ||||||
| Total liabilities | 159,047 | 169,535 | ||||||
| Stockholders’ equity (deficit): | ||||||||
| Total stockholders’ equity (deficit) | 40,857 | (557 | ) | |||||
| Total liabilities and stockholders’ equity | $ | 199,904 | $ | 168,978 | ||||
| Sientra, Inc | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Year Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (62,482 | ) | $ | (89,947 | ) | ||
| Income (loss) from discontinued operations, net of income taxes | 37 | (22,835 | ) | |||||
| Loss from continuing operations, net of income taxes | (62,519 | ) | (67,112 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 4,360 | 3,370 | ||||||
| Provision for doubtful accounts | 1,326 | 537 | ||||||
| Provision for warranties | 970 | 659 | ||||||
| Provision for inventory | 82 | 1,817 | ||||||
| Fair value adjustments to derivative liability | 14,460 | 10,470 | ||||||
| Fair value adjustments of other liabilities held at fair value | 441 | 96 | ||||||
| Amortization of debt discount and issuance costs | 3,587 | 4,347 | ||||||
| Gain on extinguishment of debt | (6,652 | ) | — | |||||
| Stock-based compensation expense | 10,390 | 8,221 | ||||||
| Payments of contingent consideration liability in excess of acquisition-date fair value | (2,419 | ) | — | |||||
| Other non-cash adjustments | 684 | 375 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | (14,660 | ) | (6,302 | ) | ||||
| Inventories | (13,775 | ) | (9,342 | ) | ||||
| Prepaid expenses, other current assets and other assets | (1,501 | ) | 169 | |||||
| Accounts payable, accrueds, and other liabilities | (752 | ) | 1,431 | |||||
| Customer deposits | 17,277 | 3,961 | ||||||
| Sales return liability | 4,207 | 1,077 | ||||||
| Net cash flow from operating activities - continuing operations | (44,494 | ) | (46,226 | ) | ||||
| Net cash flow from operating activities - discontinued operations | 1,994 | (13,912 | ) | |||||
| Net cash used in operating activities | (42,500 | ) | (60,138 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (3,805 | ) | (3,956 | ) | ||||
| Asset acquisitions | (1,000 | ) | — | |||||
| Net cash flow from investing activities - continuing operations | (4,805 | ) | (3,956 | ) | ||||
| Net cash flow from investing activities - discontinued operations | 8,134 | (80 | ) | |||||
| Net cash used in investing activities | 3,329 | (4,036 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of common stock for employee stock-based plans | 1,970 | 865 | ||||||
| Net proceeds from issuance of common stock | 39,226 | 263 | ||||||
| Tax payments related to shares withheld for vested restricted stock units (RSUs) | (3,145 | ) | (1,791 | ) | ||||
| Gross borrowings under the Term Loan | 1,000 | — | ||||||
| Repayments under the Term Loan | — | (25,000 | ) | |||||
| Gross borrowings under the PPP loan | — | 6,652 | ||||||
| Gross borrowings under the Revolving Loan | 2,237 | — | ||||||
| Repayment of the Revolving Loan | — | (6,508 | ) | |||||
| Net proceeds from issuance of the Convertible Note | — | 60,000 | ||||||
| Payments of contingent consideration up to acquisition-date fair value | (4,550 | ) | — | |||||
| Deferred financing costs | (800 | ) | (2,958 | ) | ||||
| Net cash provided by financing activities | 35,938 | 31,523 | ||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (3,233 | ) | (32,651 | ) | ||||
| Cash, cash equivalents and restricted cash at: | ||||||||
| Beginning of period | 55,300 | 87,951 | ||||||
| End of period | $ | 52,067 | $ | 55,300 | ||||
| Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets | ||||||||
| Cash and cash equivalents | 51,772 | $ | 54,967 | |||||
| Restricted cash included in other assets | 295 | 333 | ||||||
| Total cash, cash equivalents and restricted cash | $ | 52,067 | $ | 55,300 | ||||
| Sientra, Inc. | ||||||||||||||||
| Reconciliation of Loss from Continuing Operations to Non-GAAP Adjusted EBITDA | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| Dollars, in thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Loss from continuing operations, as reported | $ | (15,872 | ) | $ | (20,295 | ) | $ | (62,519 | ) | $ | (67,112 | ) | ||||
| Adjustments to loss from continuing operations: | ||||||||||||||||
| Interest (income) expense and other, net | 2,124 | 2,151 | 8,340 | 9,198 | ||||||||||||
| Provision for income taxes | 21 | 33 | 21 | 33 | ||||||||||||
| Depreciation and amortization | 1,211 | 983 | 4,360 | 3,370 | ||||||||||||
| Fair value adjustments to contingent consideration | 392 | 68 | 441 | 135 | ||||||||||||
| Fair value adjustments to derivative liability | — | 2,050 | 14,460 | 10,470 | ||||||||||||
| Gain on extinguishment of debt | — | — | (6,652 | ) | — | |||||||||||
| Stock-based compensation | 2,317 | 2,879 | 10,390 | 8,221 | ||||||||||||
| One-time severance charges | — | 2,539 | — | 2,539 | ||||||||||||
| Restructuring | — | 1 | — | 390 | ||||||||||||
| Total adjustments to loss from continuing operations | 6,065 | 10,704 | 31,360 | 34,356 | ||||||||||||
| Adjusted EBITDA | $ | (9,807 | ) | $ | (9,591 | ) | $ | (31,159 | ) | $ | (32,756 | ) | ||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| As a Percentage of Revenue** | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Loss from continuing operations, as reported | (70.1 | %) | (113.5 | %) | (77.5 | %) | (122.0 | %) | ||||||||
| Adjustments to loss from continuing operations: | ||||||||||||||||
| Interest (income) expense and other, net | 9.4 | % | 12.0 | % | 10.3 | % | 16.7 | % | ||||||||
| Provision for income taxes | 0.1 | % | 0.2 | % | 0.0 | % | 0.1 | % | ||||||||
| Depreciation and amortization | 5.3 | % | 5.5 | % | 5.4 | % | 6.1 | % | ||||||||
| Fair value adjustments to contingent consideration | 1.7 | % | 0.4 | % | 0.5 | % | 0.2 | % | ||||||||
| Fair value adjustments to derivative liability | 0.0 | % | 11.5 | % | 17.9 | % | 19.0 | % | ||||||||
| Gain on extinguishment of debt | 0.0 | % | 0.0 | % | (8.2 | %) | 0.0 | % | ||||||||
| Stock-based compensation | 10.2 | % | 16.1 | % | 12.9 | % | 14.9 | % | ||||||||
| One-time severance charges | 0.0 | % | 14.2 | % | 0.0 | % | 4.6 | % | ||||||||
| Restructuring | 0.0 | % | 0.0 | % | 0.0 | % | 0.7 | % | ||||||||
| Total adjustments to loss from continuing operations | 26.8 | % | 59.8 | % | 38.9 | % | 62.5 | % | ||||||||
| Adjusted EBITDA | (43.3 | %) | (53.6 | %) | (38.6 | %) | (59.6 | %) | ||||||||
| ** Adjustments may not add to the total figure due to rounding | ||||||||||||||||
