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Business Wire 31-Jan-2019 7:00 AM
Achieved Record Operating Margin of 31%
Abiomed, Inc. (NASDAQ:ABMD), a leading provider of breakthrough heart recovery and support technologies, today reported third quarter fiscal 2019 revenue of $200.6 million, an increase of 30% compared to revenue of $154.0 million for the same period of fiscal 2018. Third quarter fiscal 2019 GAAP net income was $44.9 million or $0.97 per diluted share, up 235% compared to GAAP net income of $13.4 million or $0.29 per diluted share for the same period of fiscal 2018.
Recent financial and operating highlights include:
"We are proud of our 100,000th patient milestone and we will continue to grow the field of heart recovery and improve patient outcomes by partnering with our customers to use real-world data to identify and validate best practices and protocols," said Michael R. Minogue, Chairman, President and Chief Executive Officer, Abiomed, Inc. "We remain focused on disciplined execution and sustainable growth so that even more patients around the world can benefit from heart recovery."
FISCAL YEAR 2019 OUTLOOKAs previously announced, the company increased its 2019 revenue guidance to $780 million, up from a range of $765 million to $770 million, an increase in revenue of approximately 31% from the prior year. The company is now updating its fiscal year 2019 guidance for GAAP operating margin to the range of 29% to 29.5%. This compares to the company's prior fiscal 2019 guidance of 28% to 30%.
EARNINGS CONFERENCE CALL DETAILSThe company will host a conference call to discuss the results at 8:00 a.m. EST on Thursday, January 31, 2019. The conference call releasing full quarterly results will be hosted by Michael R. Minogue, Chairman, President and Chief Executive Officer and Todd A. Trapp, Vice President and Chief Financial Officer.
To listen to the call live, please tune into the webcast via https://edge.media-server.com/m6/p/kxrqfpvz or dial (855) 212-2361; the international number is (678) 809-1538. A replay of this conference call will be available beginning at 12:00 p.m. EST January 31, 2019 through 12:00 p.m. EST on February 7, 2019. The replay phone number is (855) 859-2056; the international number is (404) 537-3406. The replay access code is 2499899.
ABOUT ABIOMEDBased in Danvers, Massachusetts, Abiomed, Inc. is a leading provider of medical devices that provide circulatory support. Our products are designed to enable the heart to rest by improving blood flow and/or performing the pumping of the heart. For additional information, please visit: www.abiomed.com. To learn more about the Impella platform of heart pumps, including their approved indications and important safety and risk information associated with the use of the devices, please visit: www.protectedpci.com.
The ABIOMED logo, ABIOMED, Impella, Impella 2.5, Impella 5.0, Impella LD, Impella CP, Impella RP, Impella Connect, and Recovering hearts. Saving lives. are registered trademarks of ABIOMED, Inc. in the U.S. and in certain foreign countries.
FORWARD-LOOKING STATEMENTSThis release contains forward-looking statements, including statements regarding development of Abiomed's existing and new products, the company's progress toward commercial growth, and future opportunities and expected regulatory approvals. The company's actual results may differ materially from those anticipated in these forward-looking statements based upon a number of factors, including uncertainties associated with development, testing and related regulatory approvals, including the unpredictability of future operating results, complex manufacturing, high quality requirements, dependence on limited sources of supply, competition, technological change, government regulation, litigation matters, future capital needs and uncertainty of additional financing, and other risks and challenges detailed in the company's filings with the Securities and Exchange Commission, including the most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. The company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances that occur after the date of this release or to reflect the occurrence of unanticipated events.
Abiomed, Inc. and Subsidiaries | ||||||||||
Consolidated Balance Sheets | ||||||||||
(Unaudited) | ||||||||||
(in thousands, except share data) | ||||||||||
December 31, 2018 | March 31, 2018 | |||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 84,181 | $ | 42,975 | ||||||
Short-term marketable securities | 373,975 | 319,274 | ||||||||
Accounts receivable, net | 88,215 | 70,010 | ||||||||
Inventories | 71,808 | 50,204 | ||||||||
Prepaid expenses and other current assets | 10,549 | 11,808 | ||||||||
Total current assets | 628,728 | 494,271 | ||||||||
Long-term marketable securities | - | 37,502 | ||||||||
Property and equipment, net | 138,455 | 117,167 | ||||||||
Goodwill | 33,260 | 35,808 | ||||||||
In-process research and development | 15,516 | 16,705 | ||||||||
Long-term deferred tax assets, net | 96,450 | 70,746 | ||||||||
Other assets | 44,707 | 14,176 | ||||||||
Total assets | $ | 957,116 | $ | 786,375 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 26,179 | $ | 23,565 | ||||||
Accrued expenses | 51,721 | 46,147 | ||||||||
Deferred revenue | 15,080 | 14,970 | ||||||||
Total current liabilities | 92,980 | 84,682 | ||||||||
Other long-term liabilities | 1,185 | 776 | ||||||||
Contingent consideration | 10,583 | 10,490 | ||||||||
Long-term deferred tax liabilities | 838 | 903 | ||||||||
Total liabilities | 105,586 | 96,851 | ||||||||
Commitments and contingencies | ||||||||||
Stockholders' equity: | ||||||||||
Class B Preferred Stock, $.01 par value | — | — | ||||||||
Authorized - 1,000,000 shares; Issued and outstanding - none |
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Common stock, $.01 par value | 451 | 444 | ||||||||
Authorized - 100,000,000 shares; Issued - 46,959,653 shares at December 31, 2018 and 46,100,649 shares at March 31, 2018 |
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Outstanding - 45,058,049 shares at December 31, 2018 and 44,375,337 shares at March 31, 2018 |
||||||||||
Additional paid in capital | 676,171 | 619,905 | ||||||||
Retained earnings | 325,513 | 140,457 | ||||||||
Treasury stock at cost - 1,901,604 shares at December 31, 2018 and 1,725,312 shares at March 31, 2018 | (138,289 | ) | (67,078 | ) | ||||||
Accumulated other comprehensive loss | (12,316 | ) | (4,204 | ) | ||||||
Total stockholders' equity | 851,530 | 689,524 | ||||||||
Total liabilities and stockholders' equity | $ | 957,116 | $ | 786,375 | ||||||
Abiomed, Inc. and Subsidiaries | ||||||||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||
Three Months EndedDecember 31, |
Nine Months EndedDecember 31, |
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2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Revenue | $ | 200,563 | $ | 154,022 | $ | 562,351 | $ | 419,313 | ||||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Cost of product revenue | 34,023 | 24,994 | 94,718 | 68,483 | ||||||||||||||||||
Research and development | 23,965 | 17,706 | 67,955 | 54,027 | ||||||||||||||||||
Selling, general and administrative | 80,220 | 66,556 | 240,254 | 187,233 | ||||||||||||||||||
138,208 | 109,256 | 402,927 | 309,743 | |||||||||||||||||||
Income from operations | 62,355 | 44,766 | 159,424 | 109,570 | ||||||||||||||||||
Other income: | ||||||||||||||||||||||
Investment income, net | 2,175 | 969 | 5,397 | 2,385 | ||||||||||||||||||
Other (expense) income, net | (20 | ) | (81 | ) | 10 | (25 | ) | |||||||||||||||
2,155 | 888 | 5,407 | 2,360 | |||||||||||||||||||
Income before income taxes | 64,510 | 45,654 | 164,831 | 111,930 | ||||||||||||||||||
Income tax provision (benefit) (1) | 19,648 | 32,208 | (20,225 | ) | 36,607 | |||||||||||||||||
Net income | $ | 44,862 | $ | 13,446 | $ | 185,056 | $ | 75,323 | ||||||||||||||
Basic net income per share | $ | 1.00 | $ | 0.30 | $ | 4.13 | $ | 1.71 | ||||||||||||||
Basic weighted average shares outstanding | 45,046 | 44,247 | 44,852 | 44,095 | ||||||||||||||||||
Diluted net income per share (2) | $ | 0.97 | $ | 0.29 | $ | 4.01 | $ | 1.65 | ||||||||||||||
Diluted weighted average shares outstanding | 46,136 | 45,869 | 46,147 | 45,731 | ||||||||||||||||||
(1) Income tax benefit includes the effect of the following items: | ||||||||||||||||||||||
Effect of the Tax Reform Act on net deferred tax assets | $ | — | $ | 21,957 | $ | — | $ | 21,957 | ||||||||||||||
Excess tax benefits related to stock-based compensation awards | (1,704 | ) | (3,214 | ) | (68,469 | ) | (24,490 | ) | ||||||||||||||
$ | (1,704 | ) | $ | 18,743 | $ | (68,469 | ) | $ | (2,533 | ) | ||||||||||||
(2) Diluted net income per share includes the effect of the following items: | ||||||||||||||||||||||
Effect of the Tax Reform Act on net deferred tax assets | $ | — | $ | 0.48 | $ | — | $ | 0.48 | ||||||||||||||
Excess tax benefits related to stock-based compensation awards | (0.04 | ) | (0.07 | ) | (1.48 | ) | (0.54 | ) | ||||||||||||||
$ | (0.04 | ) | $ | 0.41 | $ | (1.48 | ) | $ | (0.06 | ) | ||||||||||||
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