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DANVERS, Mass.--(BUSINESS WIRE)--Nov 1, 2022--
ABIOMED, Inc. (NASDAQ: ABMD), a leader in breakthrough heart, lung and kidney support technologies, today announces financial results for the quarter ended September 30, 2022.
Second Quarter 2023 Financial Highlights:
“In our fiscal Q2, Abiomed delivered another double-digit constant currency revenue growth quarter despite the challenging environment in July. This performance highlights the resiliency of our product portfolio, which enables the treatment of urgent and emergent patient populations,” said Michael R. Minogue, Abiomed’s Chairman, President and Chief Executive Officer. “We also made significant progress on high-risk PCI, STEMI and cardiogenic shock publications and innovation milestones for the Low-Profile Sheath, Breethe Oxy-1 ECMO System, Impella RP Flex and Impella ECP. Our innovation, clinical evidence and dedicated field team will enable long-term, sustainable growth as we become the global standard for the field of heart recovery.”
Recent Advancements in Innovation and Clinical Data:
Innovation
Clinical Data
*ABOUT NON-GAAP FINANCIAL MEASURES
To supplement its consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the company uses non-GAAP financial measures as described below. The company uses these non-GAAP financial measures for financial and operational decision-making and to evaluate period-to-period comparisons. The company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity. The company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting, and analyzing future periods. The company believes these non-GAAP financial measures are useful to investors because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by institutional investors and the analyst community to help them analyze the performance of the company’s business and financial results.
The company uses the following non-GAAP financial measures:
Non-GAAP income from operations: The company defines non-GAAP income from operations as income from operations, excluding charges for the acquired in-process research and development related to the preCARDIA acquisition.
Non-GAAP operating margin: The company defines non-GAAP operating margin as operating margin, excluding charges for the acquired in-process research and development related to the preCARDIA acquisition.
Non-GAAP net income and net income per diluted share: The company defines non-GAAP net income and net income per diluted share as net income and net income per diluted share, excluding charges for the acquired in-process research and development related to the preCARDIA acquisition, the gain recognized on its previously owned minority interest in preCARDIA, unrealized (gains) losses on its investment in Shockwave Medical, excess tax benefits and shortfall expenses associated with stock-based compensation and unrealized (gains) losses on other investments related to (upward) downward adjustments due to observable price changes. The tax effects of the non-GAAP items are determined by applying a calculated non-GAAP effective tax rate. Without these tax effects, investors would only see the gross effect that these non-GAAP adjustments had on the company’s operating results. The company defines non-GAAP net income per diluted share as non-GAAP net income divided by non-GAAP diluted shares, which are calculated as GAAP weighted average outstanding shares plus dilutive potential shares outstanding during the period.
Constant currency: The company defines constant currency revenue growth as the change in revenue between current and prior year periods using a constant currency, the exchange rate in effect during the applicable prior year period. The company presents constant currency revenue growth because management believes it provides meaningful information regarding the company’s revenue results on a consistent and comparable basis.
Refer to the “Reconciliation of GAAP to Non-GAAP Financial Measures” and "Reconciliation of GAAP to Non-GAAP Constant Currency" sections of this press release.
The company reports non-GAAP financial measures in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies. The company believes it is useful to exclude certain items because such amounts in any specific period may not directly correlate to the underlying performance of its business operations or can vary significantly between periods. The company believes that non-GAAP financial measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP financial measures. The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliations between these presentations, to more fully understand its business.
CONFERENCE CALL DETAILS
Given the proposed acquisition of Abiomed by Johnson & Johnson (NYSE: JNJ) announced this morning, Abiomed will not be hosting the previously scheduled earnings conference call today. A conference call to discuss the proposed transaction will be held at 8:00 a.m. ET today, Tuesday, November 1, 2022. To listen to the call live, please tune into the webcast via the Johnson & Johnson website.
ABOUT ABIOMED
Based in Danvers, Massachusetts, USA, Abiomed, Inc., is a leading provider of medical technology that provides circulatory support and oxygenation. 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. Abiomed, Impella, Impella 2.5, Impella 5.0, Impella LD, Impella CP, Impella RP, Impella 5.5, Impella Connect, and SmartAssist are registered trademarks of Abiomed, Inc., and are registered in the U.S. and certain foreign countries. Impella ECP, Impella BTR, STEMI DTU, Automated Impella Controller, Abiomed Breethe OXY-1 System and preCARDIA are pending trademarks of Abiomed, Inc.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements, including, without limitation, statements regarding development of Abiomed's existing and new products and the impact of recently received regulatory approvals. All statements, other than statements of historical facts, may be forward-looking statements. These forward-looking statements may be accompanied by such words as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “target,” “should,” “likely,” “will” and other words and terms of similar meaning.
The company's actual results may differ materially from those anticipated in these forward-looking statements based upon a number of factors, including, without limitation: the impact of the COVID-19 pandemic; the company’s dependence on Impella® products; fluctuating competition and market acceptance of the company’s products; the company’s ability to effectively manage its growth; the company’s ability to successfully commercialize its products; evolving regulatory environments in certain jurisdictions, including regulatory compliance; enforcement actions and product liability suits relating to off-label uses of the company’s products; unsuccessful clinical trials or procedures relating to products under development; shifting third-party reimbursement policies; compliance with manufacturing standards; manufacturing capacity and relationships with suppliers; changing international markets and the company’s ability to manage and integrate acquired companies. These and other factors are detailed in the company's filings with the Securities and Exchange Commission (the “SEC”), including the most recently filed Annual Report on Form 10-K and the filings subsequently filed with or furnished to the SEC.
Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. Unless otherwise required by law, the company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that occur after the date of this release.Abiomed, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(Unaudited)(in thousands) September 30, 2022March 31, 2022ASSETSCurrent assets:Cash and cash equivalents
$ 182,335
$ 132,818Short-term marketable securities
638,037
625,789Accounts receivable, net
94,475
90,608Inventories, net
102,237
93,981Prepaid expenses and other current assets
45,714
33,277Total current assets
1,062,798
976,473Long-term marketable securities
116,871
220,089Property and equipment, net
195,157
202,490Goodwill
72,960
76,786Other intangibles, net
36,833
39,518Deferred tax assets
18,881
10,552Other assets
193,044
147,485Total assets
$ 1,696,544
$ 1,673,393LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable
$ 35,070
$ 35,346Accrued expenses
69,434
72,629Deferred revenue
25,962
26,362Other current liabilities
3,594
4,120Total current liabilities
134,060
138,457Other long-term liabilities
7,013
9,319Contingent consideration
14,995
21,510Deferred tax liabilities
689
781Total liabilities
156,757
170,067Stockholders' equity:Class B Preferred Stock, $.01 par value
—
—1,000 shares authorized; issued and outstanding - noneCommon stock, $.01 par value
452
455100,000 shares authorized; 48,418 and 48,258 shares issued as of September 30, 2022 and March 31, 2022, respectively45,172 and 45,545 shares outstanding as of September 30, 2022 and March 31, 2022, respectivelyAdditional paid in capital
904,755
870,074Retained earnings
1,125,199
964,512Treasury stock at cost - 3,246 and 2,713 shares as of September 30, 2022 and March 31, 2022, respectively
(443,974)
(304,555)Accumulated other comprehensive loss
(46,645)
(27,160)Total stockholders' equity
1,539,787
1,503,326Total liabilities and stockholders' equity
$ 1,696,544
$ 1,673,393
Abiomed, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data) For the Three Months Ended September 30,For the Six Months Ended September 30,
2022
2021
2022
2021Revenue
$ 265,921
$ 248,142
$ 543,070
$ 500,727Cost of revenue and operating expenses:Cost of revenue
48,880
43,886
101,506
89,074Research and development
42,089
41,041
82,566
78,749Selling, general and administrative
116,958
102,779
234,954
206,263Acquired in-process research and development
—
—
—
115,490
207,927
187,706
419,026
489,576Income from operations
57,994
60,436
124,044
11,151Interest and other income, net
80,709
6,835
84,481
46,770Income before income taxes
138,703
67,271
208,525
57,921Income tax provision
32,570
10,318
47,838
27,493Net income
$ 106,133
$ 56,953
$ 160,687
$ 30,428 Net income per share - basic
$ 2.34
$ 1.25
$ 3.53
$ 0.67Weighted average shares outstanding - basic
45,372
45,437
45,475
45,374 Net income per share - diluted
$ 2.32
$ 1.24
$ 3.51
$ 0.66Weighted average shares outstanding - diluted
45,711
45,893
45,812
45,857Abiomed, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP Financial Measures(Unaudited)(in thousands, except per share data) For the Three Months Ended September 30,For the Six Months Ended September 30,
2022
2021
2022
2021GAAP income from operations
$ 57,994
$ 60,436
$ 124,044
$ 11,151Acquired in-process research and development (1)
—
—
—
115,490Non-GAAP income from operations
$ 57,994
$ 60,436
$ 124,044
$ 126,641 GAAP operating margin
21.8%
24.4%
22.8%
2.2%Non-GAAP operating margin
21.8%
24.4%
22.8%
25.3% GAAP net income
$ 106,133
$ 56,953
$ 160,687
$ 30,428Acquired in-process research and development (1)
—
—
—
115,490Gain on previously held interest in preCARDIA (2)
—
—
—
(20,980)Gain on investment in Shockwave Medical (3)
(10,946)
(3,611)
(7,318)
(16,912)(Excess tax benefits) shortfall expenses on stock-based compensation (4)
41
(6,171)
(930)
(9,801)Gain on other investments (5)
(35,825)
—
(35,825)
—Non-GAAP net income
$ 59,403
$ 47,171
$ 116,614
$ 98,225 GAAP net income per diluted share
$ 2.32
$ 1.24
$ 3.51
$ 0.66Acquired in-process research and development (1)
—
—
—
2.52Gain on previously held interest in preCARDIA (2)
—
—
—
(0.46)Gain on investment in Shockwave Medical (3)
(0.24)
(0.08)
(0.16)
(0.37)(Excess tax benefits) shortfall expenses on stock-based compensation (4)
—
(0.13)
(0.02)
(0.21)Gain on other investments (5)
(0.78)
—
(0.78)
—Non-GAAP net income per diluted share
$ 1.30
$ 1.03
$ 2.55
$ 2.14 GAAP diluted weighted-average shares outstanding
45,711
45,893
45,812
45,857Non-GAAP diluted weighted-average shares outstanding
45,711
45,893
45,812
45,857
Notes:
Refer to "About Non-GAAP Financial Measures" section of this press release.Abiomed, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP Constant Currency(Unaudited)(in thousands) Total revenue by region:For the Three Months Ended September 30,
2022
2021% ChangeCurrency ImpactConstant CurrencyUnited States
$ 218,943
$ 200,485
9
%
—
%
9
%Europe
30,269
32,527
(7)
%
16
%
9
%Japan
12,467
12,267
2
%
26
%
28
%Rest of world
4,242
2,863
48
%
—
%
48
%Outside the U.S.
46,978
47,657
(1)
%
17
%
16
%Total revenue
$ 265,921
$ 248,142
7
%
4
%
11
% For the Six Months Ended September 30,
2022
2021% ChangeCurrency ImpactConstant CurrencyUnited States
$ 445,462
$ 407,627
9
%
—
%
9
%Europe
64,105
64,764
(1)
%
15
%
14
%Japan
25,702
23,552
9
%
24
%
33
%Rest of world
7,801
4,784
63
%
—
%
63
%Outside the U.S.
97,608
93,100
5
%
16
%
21
%Total revenue
$ 543,070
$ 500,727
8
%
4
%
12
% Product revenue by region:For the Three Months Ended September 30,
2022
2021% ChangeCurrency ImpactConstant CurrencyUnited States
$ 207,948
$ 189,761
10
%
—
%
10
%Europe
29,042
31,328
(7)
%
16
%
9
%Japan
12,014
11,833
2
%
26
%
28
%Rest of world
4,242
2,863
48
%
—
%
48
%Outside the U.S.
45,298
46,024
(2)
%
18
%
16
%Total product revenue
$ 253,246
$ 235,785
7
%
4
%
11
% For the Six Months Ended September 30,
2022
2021% ChangeCurrency ImpactConstant CurrencyUnited States
$ 423,514
$ 387,220
9
%
—
%
9
%Europe
61,611
62,557
(2)
%
15
%
13
%Japan
24,792
22,698
9
%
24
%
33
%Rest of world
7,800
4,784
63
%
—
%
63
%Outside the U.S.
94,203
90,039
5
%
16
%
21
%Total product revenue
$ 517,717
$ 477,259
8
%
4
%
12
%
View source version on businesswire.com:https://www.businesswire.com/news/home/20221101005600/en/
CONTACT: Todd Trapp
Executive Vice President and Chief Financial Officer
978-646-1680
ttrapp@abiomed.comJenny Leary
Associate Director, U.S. Communications
978-882-8491
jleary@abiomed.com
KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS
INDUSTRY KEYWORD: BIOTECHNOLOGY GENERAL HEALTH HEALTH MEDICAL DEVICES
SOURCE: Abiomed, Inc.
Copyright Business Wire 2022.
PUB: 11/01/2022 07:00 AM/DISC: 11/01/2022 07:02 AM
http://www.businesswire.com/news/home/20221101005600/en