Stellarex DCB Acquisition Closed and Stellarex Launched in Europe
Updates 2015 Outlook
COLORADO SPRINGS, Colo., Feb. 19, 2015 (GLOBE NEWSWIRE) -- The Spectranetics Corporation (Nasdaq:SPNC) today reported financial results for the three months and year ended December 31, 2014. Highlights of the quarter, all compared with the three months ended December 31, 2013 include:
- Revenue of $63.0 million, up 50% (51% constant currency1)
- Vascular Intervention revenue of $39.1 million grew 90% (91% constant currency)
- U.S. peripheral atherectomy revenue grew 30%
- AngioSculpt™ revenue of $14.7 million achieved
- Lead Management revenue of $18.5 million increased 14% (15% constant currency)
- U.S. revenue grew 52% to $52.3 million; International revenue grew 43% (49% constant currency) to $10.6 million
- Closed acquisition of Stellarex™ Drug Coated Balloon (DCB); Launched Stellarex in Europe in January 2015
“The fourth quarter caps off a very productive year for our company. Our tactical execution and performance combined with strategic progress set us up well for future growth and operating leverage. Notably, we have early traction with ISR, our mechanical tools launch is ahead of schedule, the AngioScore integration is on track and, following our acquisition of the Stellarex platform in January, commercialization in Europe is underway. Our competitive position is stronger than ever and we believe it will continue to improve over time,” said Scott Drake, President and Chief Executive Officer.
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1Constant currency, non-GAAP net loss, and Adjusted EBITDA are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” later in this release.
Net loss for the three months ended December 31, 2014 was $14.7 million, or $0.35 per share, compared with net income of $883,000, or $0.02 per share, for the three months ended December 31, 2013. Non-GAAP net loss1, which primarily excludes acquisition-related items, for the three months ended December 31, 2014 was $1.7 million, or $0.04 per share, compared with non-GAAP net income of $682,000, or $0.02 per share, for the three months ended December 31, 2013. Adjusted EBITDA1 was $3.2 million for the three months ended December 31, 2014 compared with $4.0 million for the three months ended December 31, 2013.
Year-To-Date Financial Results
Revenue for the year ended December 31, 2014 rose 29% to $204.9 million, including $29.6 million of AngioSculpt revenue, from $158.8 million for the year ended December 31, 2013. Vascular Intervention revenue increased 56% to $118.1 million, Lead Management revenue increased 7% (6% constant currency) to $66.7 million, and laser system, service and other revenue decreased 3% to $20.1 million.
On a geographic basis, revenue in the United States and Canada was $167.4 million, an increase of 29% from the year ended December 31, 2013. International revenue totaled $37.5 million, an increase of 31% (30% constant currency) from the year ended December 31, 2013.
Net loss for the year ended December 31, 2014 was $40.9 million, or $0.98 per share, compared with net loss of $370,000, or $0.01 per share, for the year ended December 31, 2013. Non-GAAP net loss for the year ended December 31, 2014 was $11.3 million, or $0.27 per share, compared with non-GAAP net income of $723,000, or $0.02 per share, for the year ended December 31, 2013. Adjusted EBITDA was $4.2 million for the year ended December 31, 2014 compared with $11.2 million for the year ended December 31, 2013.
2015 Financial Outlook
Spectranetics is updating its 2015 financial outlook to reflect the projected impact of Stellarex and adjustments for the weakening euro since the financial outlook provided in December 2014.
Spectranetics management continues to project revenue in the range of $258 million to $265 million, an increase of 26% to 29% over 2014. Management estimates the negative impact of a weakening euro at approximately $3 million. Projected sales from the Stellarex DCB products are anticipated to largely offset the foreign currency impact in 2015.
- Vascular Intervention revenue growth is anticipated to be in the range of 41% to 46%. This includes projected AngioSculpt revenue of $62 million to $66 million and projected ISR revenue of approximately $15 million to $20 million.
- Lead Management revenue growth is estimated in the range of 8% to 10%, which has been adjusted from the range of 11% to 12% provided previously, entirely due to the weaker euro.
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1Constant currency, non-GAAP net loss, and Adjusted EBITDA are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” later in this release.
Net loss for 2015 is projected to be in the range of $58.0 million to $62.0 million, or $1.36 to $1.46 per share. The net loss, excluding Stellarex, is projected to be $28.0 million to $32.0 million, or $0.66 to $0.75 per share. The net loss budgeted for Stellarex is approximately $30.0 million, or $0.71 per share. The Stellarex acquisition closed on January 27, 2015 and Spectranetics is in the early stages of integration. As integration proceeds, the budget will likely change. Also, the company has identified potential further applications of the technology that may enhance revenue and return metrics and entail additional investments.
Non-GAAP net loss for 2015 is projected to be in the range of $31.9 million to $35.9 million, or $0.75 to $0.84 per share. See “Reconciliation of non-GAAP Financial Measures” later in this release. Additional details supporting the 2015 outlook are provided below:
- Gross margin is expected to be in the range of 74.5% to 75.0%. This includes improvement of approximately 50 basis points within the current business, which is offset by the dilutive impact of approximately 50 to 100 basis points associated with establishing manufacturing operations for the Stellarex product line.
- Research, development and other technology expenses are expected to be approximately 25.5% to 26.0% of revenue, revised from 15.5% to 16.0% provided previously. The increase is entirely due to costs associated with the Stellarex program.
Conference Call
Management will host an investment community conference call today beginning at 2:30 p.m. MT / 4:30 p.m. ET. Individuals interested in listening to the conference call may dial (877) 561-2747 for domestic callers, or (973) 409-9689 for international callers, conference ID 69679617, or access the webcast on the investor relations section of the Company’s Web site at: www.spectranetics.com. The webcast will be available on the Company’s Web site for 14 days following the completion of the call.
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