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8-K - FORM 8-K - ENDOLOGIX INC /DE/ | a55926e8vk.htm |
EX-99.2 - EX-99.2 - ENDOLOGIX INC /DE/ | a55926exv99w2.htm |
Exhibit 99.1
COMPANY CONTACT:
|
INVESTOR CONTACTS: | |
Endologix, Inc.
|
The Ruth Group | |
John McDermott, CEO
|
Nick Laudico (646) 536-7030 | |
(949) 595-7200
|
Zack Kubow (646) 536-7020 | |
www.endologix.com |
Endologix Reports 22% First Quarter 2010 Revenue Growth
IRVINE, Calif. (April 22, 2010) Endologix, Inc. (NASDAQ: ELGX), developer of minimally
invasive treatments for aortic disorders, today announced financial results for the three months
ended March 31, 2010.
John McDermott, Endologix President and Chief Executive Officer, said, Our strong first quarter
results were driven by the effectiveness of our U.S. sales organization, plus continued success in
international markets. We achieved 11% sequential growth domestically, reflecting the continued
adoption of our unique approach to abdominal aortic aneurysm repair. Our planned 30% sales force
expansion in the U.S. is on track and we expect to fill all additional territories with highly
qualified new representatives by year end.
Mr. McDermott continued, We recently announced the first patient enrollment in our PEVAR
(Percutaneous Endovascular Aneurysm Repair) clinical study at Oklahoma Heart Hospital and expect
patients to begin enrolling at the other trial sites in the near future. We are excited at the
prospect of becoming the first Company to gain FDA approval for a percutaneous indication for EVAR
(Endovascular Aneurysm Repair). During the quarter we also continued to make progress with our
other new product initiatives, which will keep Endologix at the forefront of the innovation curve
for the endovascular treatment of aortic disorders.
Financial Results
Total revenue in the first quarter of 2010 was $14.5 million, a 22% increase from $11.8 million in
the first quarter of 2009. Domestic revenue was a record $12.0 million, an 18% increase
compared
with $10.2 million in the first quarter of 2009. International revenue was $2.5 million, a 49%
increase compared with $1.7 million in the first quarter of 2009.
Gross profit was $11.1 million in the first quarter of 2010, representing a gross margin of 77%.
This compares with gross profit of $8.9 million and a gross margin of 75% in the first quarter of
2009. Higher gross margin for the first quarter of 2010 was driven by more favorable product mix
due to new products and volume related efficiencies.
Total operating expenses were $11.3 million in the first quarter of 2010, compared with $10.0
million in the first quarter of 2009. Marketing and sales expenses increased to $7.0 million in the
first quarter of 2010 from $6.6 million in the same period last year. Research, development and
clinical expenses increased to $2.3 million in the first quarter of 2010 from $1.4 million in the
same period last year. General and administrative expenses were $2.1 million in the first quarter
of both 2009 and 2010.
Endologix reported a net loss for the first quarter of 2010 of $225,000, or $(0.00) per share,
compared with a net loss of $1.2 million, or $(0.03) per share, for the first quarter of 2009.
Total cash and cash equivalents were $22.6 million as of March 31, 2010, compared with total cash
and cash equivalents of $24.1 million as of December 31, 2009.
During the first quarter, the Company paid 2009 annual performance bonuses and increased its
working capital investment in support of sales growth, which resulted in the reduction in cash,
stated Endologix Chief Financial Officer Bob Krist. We expect to generate sufficient positive
cash flow from operations for the full year 2010 to fully fund our investments in the sales force
expansion and in our new product pipeline. We continue to have a strong financial position and are
confident we have the resources needed to execute our long-term growth strategy.
Financial Guidance
Based on the first quarter 2010 results, the Company is reiterating its full year 2010 revenue and
GAAP earnings per share guidance. The Company anticipates 2010 revenue to be in the range of $62
million to $66 million, representing annual growth of 18% to 26%. For the full year 2010, the
Company expects to generate positive GAAP earnings per share. Based on the timing of new product
launches and continued improvements in sales force productivity, the
Company expects that the
majority of the revenue and earnings growth in 2010 will occur in the second half of the year. The
Companys GAAP EPS guidance assumes planned investments in
sales force expansion, research and development, and clinical initiatives and excludes the
potential impact of litigation and acquisitions or other business development transactions.
Conference Call Information
Endologix management will host a conference call to discuss these topics today beginning at 5:00
p.m. Eastern time (2:00 p.m. Pacific time). To participate via telephone please call (877) 407-0789
from the U.S. or (201) 689-8562 from outside the U.S. A telephone replay will be available for
seven days following the completion of the call by dialing (877) 660-6853 from the U.S. or (201)
612-7415 from outside the U.S., and entering account number 3055 and conference ID number 348731.
The conference call will be broadcast live over the Internet at www.endologix.com and will be
available for 30 days.
About Endologix
Endologix, Inc. develops and manufactures minimally invasive treatments for aortic disorders. The
Companys flagship product is the Powerlink® System, which is an endovascular stent graft for the
treatment of abdominal aortic aneurysms (AAA). AAA is a weakening of the wall of the aorta, the
largest artery in the body, resulting in a balloon-like enlargement. Once AAA develops, it
continues to enlarge and, if left untreated, becomes increasingly susceptible to rupture. The
overall patient mortality rate for ruptured AAA is approximately 75%, making it a leading cause of
death in the U.S. Additional information can be found on Endologixs Web site at www.endologix.com.
Except for historical information contained herein, this news release contains forward-looking
statements, including with respect to 2010 financial guidance, the launch of new products,
expansion of the number of sales territories in 2010, planned investments in research and
development activities, and clinical trial initiatives, the accuracy of which are necessarily
subject to risks and uncertainties, all of which are difficult or impossible to predict accurately
and many of which are beyond the control of Endologix. Many factors may cause actual results to
differ materially from anticipated results, including the success of sales efforts for the
Powerlink System and related new products, product research and development efforts, and other
economic, business, competitive, legal matters and regulatory factors. The Company
undertakes no
obligation to update its forward looking statements. Please refer to the Companys Annual Report on
Form 10-K for the year ended December 31, 2009, and the
Companys other filings with the Securities and Exchange Commission, for more detailed information
regarding these risks and other factors that may cause actual results to differ materially from
those expressed or implied.
ENDOLOGIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share amounts)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share amounts)
Three Months Ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
Revenue: |
||||||||
Domestic Product Revenue |
$ | 12,015 | $ | 10,176 | ||||
Non U.S. Product Revenue |
2,465 | 1,658 | ||||||
Total Revenue: |
14,480 | 11,834 | ||||||
Cost of product revenue |
3,361 | 2,905 | ||||||
Gross profit |
$ | 11,119 | $ | 8,929 | ||||
Gross profit as a % of total revenue |
77 | % | 75 | % | ||||
Operating expenses: |
||||||||
Research, development and clinical |
$ | 2,275 | $ | 1,355 | ||||
Marketing and sales |
6,977 | 6,622 | ||||||
General and administrative |
2,071 | 2,068 | ||||||
Total operating expenses |
11,323 | 10,045 | ||||||
Loss from operations |
$ | (204 | ) | $ | (1,116 | ) | ||
Other income: |
||||||||
Interest income |
4 | 12 | ||||||
Interest expense |
(5 | ) | (62 | ) | ||||
Other expense |
(20 | ) | (11 | ) | ||||
Total other |
(21 | ) | (61 | ) | ||||
Net loss |
($225 | ) | ($1,177 | ) | ||||
Basic and diluted net loss per share |
($0.00 | ) | ($0.03 | ) | ||||
Shares used in computing basic and
diluted net loss per share |
47,994 | 43,345 | ||||||
ENDOLOGIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
March 31, | December 31, | |||||||
2010 | 2009 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 22,555 | $ | 24,065 | ||||
Accounts receivable, net |
9,754 | 8,342 | ||||||
Other receivables |
28 | 3 | ||||||
Inventories |
5,963 | 5,540 | ||||||
Other current assets |
424 | 389 | ||||||
Total current assets |
38,724 | 38,339 | ||||||
Property and equipment, net |
2,067 | 2,089 | ||||||
Goodwill |
4,631 | 4,631 | ||||||
Intangibles, net |
5,752 | 6,104 | ||||||
Other assets |
176 | 129 | ||||||
Total Assets |
$ | 51,350 | $ | 51,292 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable and accrued expenses |
$ | 6,805 | $ | 7,225 | ||||
Current portion of long term debt |
80 | 79 | ||||||
Current liabilities |
6,885 | 7,304 | ||||||
Long term liabilities: |
||||||||
Long term debt |
63 | 83 | ||||||
Other long term liabilities |
1,045 | 1,051 | ||||||
Long term liabilities |
1,108 | 1,134 | ||||||
Total liabilities |
7,993 | 8,438 | ||||||
Stockholders equity: |
||||||||
Common stock, $.001 par value; 75,000 shares
authorized, and 49,181 and 49,152 shares issued,
and 48,686 and 48,657 outstanding |
49 | 49 | ||||||
Additional paid-in capital |
190,448 | 189,656 | ||||||
Accumulated deficit |
(146,389 | ) | (146,164 | ) | ||||
Treasury stock at cost, 495 shares |
(661 | ) | (661 | ) | ||||
Accumulated other comprehensive income |
(90 | ) | (26 | ) | ||||
Total stockholders equity |
43,357 | 42,854 | ||||||
Total Liabilities and Stockholders Equity |
$ | 51,350 | $ | 51,292 | ||||
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