– Scott Wilkinson to Succeed Raymond
Huggenberger as CEO Effective March 1, 2017 and Join the Board of
Directors Effective January 1, 2017 –
– Scott Beardsley to Join the Board of
Directors Effective January 1, 2017 –
– Byron Myers to be Appointed EVP, Sales
& Marketing Effective January 1, 2017 –
– Reiterates 2016 and 2017 Guidance
–
Inogen, Inc. (NASDAQ: INGN), a medical technology company
offering innovative respiratory products for use in the homecare
setting, today announced that its Board of Directors has appointed
Scott Wilkinson as Inogen’s President and Chief Executive Officer,
effective March 1, 2017. Mr. Wilkinson will also join the Board of
Directors on January 1, 2017. Mr. Wilkinson will succeed Raymond
Huggenberger, who is retiring as Chief Executive Officer, effective
March 1, 2017. Mr. Huggenberger will continue to serve on Inogen’s
Board of Directors following his retirement as Chief Executive
Officer.
Heath Lukatch, Ph.D., Inogen’s Chairman, said, “On behalf of the
Board of Directors, I would like to congratulate Scott on this
appointment and thank Ray for his extraordinary contributions to
Inogen over the last eight years. During his time as CEO, Inogen
has experienced tremendous growth and solidified its reputation for
innovation and consumer marketing. We will continue to benefit from
Ray’s leadership abilities as he contributes his insights from his
position on the Board of Directors. Scott is a highly talented and
experienced executive who understands Inogen’s culture and strategy
due to his eleven-year tenure at Inogen and has been critical to
Inogen’s success. During his time as President and COO, Scott has
proved he is the right leader for Inogen as we continue to work
towards improving the lives of oxygen therapy patients.”
“I am honored and grateful for the opportunity to lead Inogen in
our mission to broaden adoption of our portable oxygen
concentrators and improve the lives of oxygen therapy patients,”
said Mr. Wilkinson. “This is an organization with a culture of
continuous innovation that has creative, dedicated and talented
professionals. I am excited about the possibilities that lie in our
future.”
“I am grateful to have led this outstanding company. We have
been able to achieve tremendous growth, of which I am proud, but
more importantly I am humbled by the patients that we have been
able to help,” said Mr. Huggenberger. “This is the right time for
me to retire as CEO, and I believe that Inogen has the products,
culture and talent to continue its leadership position. I look
forward to working with Scott and the rest of the Inogen executive
team in my role on the Board.”
Mr. Wilkinson currently oversees Inogen’s global commercial,
manufacturing, service, research and development, technical and
support operations. Previously, Mr. Wilkinson held various
leadership roles within Inogen encompassing sales, marketing,
customer service, rental revenue management, technical and repair
services, and clinical services. From 2000 to 2005, Mr. Wilkinson
worked for Invacare Corporation, a designer and manufacturer of
oxygen products, as a Group Product Manager and helped launch a
$100 million revenue oxygen product line segment. From 1999 to
2000, Mr. Wilkinson served as a Product Line Director with Johnson
& Johnson, a healthcare company. From 1988 to 1999, Mr.
Wilkinson worked as a Research Scientist, Product Manager, and
Project Leader at Kimberly Clark, a consumer products company. Mr.
Wilkinson received a Bachelor’s degree in Chemical Engineering from
the University of Akron and an MBA from University of Wisconsin,
Oshkosh.
Additional Appointments
Inogen also announced today that Scott Beardsley, Sr. Partner,
Novo Ventures (US) Inc., has been appointed to Inogen’s Board of
Directors, effective January 1, 2017. Mr. Beardsley will also join
the Compensation, Nominating, and Governance Committee, effective
January 1, 2017. In connection with the appointments of Mr.
Wilkinson and Mr. Beardsley, the Board of Directors will expand
from six to eight members, effective January 1, 2017.
Mr. Beardsley is employed as a Senior Partner at Novo Ventures
(US), Inc., which provides certain financial investment consultancy
services to Novo A/S, a Danish limited liability company that
manages investments and financial assets. Mr. Beardsley has
worked within Novo A/S and its investment activities since 2009 in
several roles: since January 2016, Mr. Beardsley has been employed
by Novo Ventures (US) Inc. as a Senior Partner; from December 2012
through 2015, he was employed as a Partner by Novo Ventures (US)
Inc.; and from 2009 through 2012, he was employed as a Senior
Partner by Novo A/S. Prior to joining Novo A/S, Mr. Beardsley was a
Managing Director in the Health Care Group at J.P. Morgan, a
banking and financial services company, from 2006 through 2008, and
a Managing Director in the Health Care Group of US Bancorp Piper
Jaffray, an investment bank, from 2001 to 2006. Previously, Mr.
Beardsley was an investment banker at US Bancorp Piper Jaffray,
Montgomery Securities, an investment bank, and Kidder, Peabody
& Co. Incorporated, an investment bank. From October 2010
through May 2014, Mr. Beardsley served as a member of the board of
directors of Aerocrine AB, a publicly-traded medical technology
company. Mr. Beardsley received his Masters of Business
Administration from the Anderson Graduate School of Management at
UCLA and his Bachelors of Science in Business Administration from
Colorado State University.
Additionally, Inogen announced today that Byron Myers, Founder
and VP, Marketing will be promoted to EVP, Sales & Marketing,
effective January 1, 2017. Mr. Myers will be responsible for global
sales and marketing activities.
Mr. Myers currently leads Inogen’s global marketing and product
management operations. Prior to serving in this position, Mr. Myers
held various roles with Inogen in direct-to-consumer sales,
marketing and product management. Mr. Myers received a Bachelor’s
degree in Economics/Mathematics from the University of California,
Santa Barbara and an MBA from the Rady School of Management at the
University of California, San Diego.
Financial Outlook for 2016 and 2017
Inogen is reiterating its 2016 revenue guidance range of $194 to
$198 million, which represents year-over-year growth of 22.0% to
24.5%.
Inogen is reiterating its 2016 net income estimate range of
$12.5 to $14.5 million, representing 7.9% to 25.2% growth over
2015.
Inogen is also reiterating its 2016 Adjusted EBITDA estimate
range of $37.5 to $39.5 million, representing an increase of 16.1%
to 22.3% over 2015. 2016 Adjusted net income is expected to be in
the range of $12.5 to $14.5 million, representing 24.8% to 44.8%
growth over 2015.
Inogen’s estimates of forward-looking Adjusted EBITDA exclude
estimates for interest expense, interest income, provision for
income taxes, depreciation and amortization, and stock-based
compensation expense. Inogen’s estimates of forward-looking
Adjusted net income exclude estimates for tax benefit adjustments.
The timing and amounts of these items needed to estimate non-GAAP
financial measures are inherently unpredictable or outside our
control to predict. Accordingly, Inogen cannot provide a
quantitative reconciliation of non-GAAP Adjusted EBITDA or Adjusted
net income without unreasonable effort. Material changes to any of
these items could have a significant effect on Inogen’s guidance
and future GAAP results.
In 2015, Inogen experienced tax benefit adjustments of $1.6
million that are not expected to recur in 2016. Inogen expects an
effective tax rate in 2016 of approximately 36% compared to an
effective tax rate of 32.0% in 2015, excluding the tax benefit
adjustments, but the actual effective tax rate may vary depending
on a variety of factors, such as actual disqualifying dispositions
of employee incentive stock options that occur within the year.
Inogen expects a higher effective tax rate primarily due to lower
tax deductions for equity compensation as a percentage of pre-tax
income which is not expected to have as much of an impact on the
2016 effective tax rate as it did on the 2015 effective tax rate.
Inogen also expects the effective tax rate to fluctuate depending
on disqualifying dispositions incurred within the respective
quarters.
Inogen is also reiterating its expectation for net positive cash
flow for 2016 with no additional equity capital required to meet
its current operating plan.
Inogen is also reiterating its guidance range for the full year
2017 total revenue of $230 to $236 million, representing 17.3% to
20.4% growth over the 2016 guidance mid-point of $196 million.
Inogen expects direct-to-consumer sales to be its fastest growing
channel, and domestic business-to-business sales to have a solid
growth rate, and international business-to-business sales to have a
modest growth rate, where the strategy will continue to be heavily
focused on the European markets. Inogen expects rental revenue to
slightly decline in 2017 compared to 2016 associated with lower
average rental revenue per patient primarily due to the known cuts
from Medicare competitive bidding, and a continued focus on sales
versus rentals.
Inogen is reiterating its guidance for full year 2017 net income
and Adjusted net income estimate of $16 to $18 million,
representing 18.5% to 33.3% growth over the 2016 guidance mid-point
of $13.5 million. Inogen is reiterating its guidance range for the
full year 2017 Adjusted EBITDA of $45 to $49 million, representing
16.9% to 27.3% growth over the 2016 guidance mid-point. Inogen
expects an effective tax rate of 36% in 2017.
Inogen also continues to expect net positive cash flow for 2017
with no additional equity capital required to meet its current
operating plan.
Inogen has used, and intends to continue to use, its Investor
Relations website, http://investor.inogen.com/, as a means of
disclosing material non-public information and for complying with
its disclosure obligations under Regulation FD. For more
information, visit http://investor.inogen.com/.
About Inogen
Inogen is innovation in oxygen therapy. We are a medical
technology company that develops, manufactures and markets
innovative oxygen concentrators used to deliver supplemental
long-term oxygen therapy to patients suffering from chronic
respiratory conditions.
For more information, please visit www.inogen.com.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including, among others, statements regarding anticipated
growth opportunities; Inogen’s leadership position;
direct-to-consumer, business-to-business and international growth
expectations; estimates of declines in rental revenue; and
financial guidance for 2016 and 2017, including revenue, Adjusted
EBITDA, Adjusted net income, net income, net cash flow, effective
tax rates and tax benefit adjustments, and the need for equity
financing. Forward-looking statements are subject to numerous risks
and uncertainties that could cause actual results to differ
materially from currently anticipated results, including but not
limited to, risks arising from the possibility that Inogen will not
realize anticipated revenue; the impact of reduced reimbursement
rates, including private payor reductions and reductions in
connection with competitive bidding and the Center for Medicare and
Medicaid Services (CMS) rules; the possible loss of key employees,
customers, or suppliers; and intellectual property risks if Inogen
is unable to secure and maintain patent or other intellectual
property protection for the intellectual property used in its
products. In addition, Inogen's business is subject to numerous
additional risks and uncertainties, including, among others, risks
relating to market acceptance of its products; its ability to
continue its Inogen One G4 product rollout; competition; its sales,
marketing and distribution capabilities; its planned sales,
marketing, and research and development activities; interruptions
or delays in the supply of components or materials for, or
manufacturing of, its products; seasonal variations; unanticipated
increases in costs or expenses; and risks associated with
international operations. Information on these and additional
risks, uncertainties, and other information affecting Inogen’s
business operating results are contained in Inogen’s Annual Report
on Form 10-K for the year ended December 31, 2015 and in Inogen’s
subsequent reports on Form 10-Q and Form 8-K, including Inogen's
Quarterly Report on Form 10-Q for the period ended September 30,
2016. These forward-looking statements speak only as of the date
hereof. Inogen disclaims any obligation to update these
forward-looking statements except as may be required by law.
Use of Non-GAAP Financial Measures
Management believes that non-GAAP financial measures, taken in
conjunction with U.S. GAAP financial measures, provide useful
information for both management and investors by excluding certain
non-cash and other expenses that are not indicative of Inogen's
core operating results. Management uses non-GAAP measures to
compare Inogen's performance relative to forecasts and strategic
plans, to benchmark Inogen's performance externally against
competitors, and for certain compensation decisions. Non-GAAP
information is not prepared under a comprehensive set of accounting
rules and should only be used to supplement an understanding of
Inogen's operating results as reported under U.S. GAAP. Inogen
encourages investors to carefully consider its results under U.S.
GAAP, as well as its supplemental non-GAAP information and the
reconciliation between these presentations, to more fully
understand its business. For future periods, Inogen is unable to
provide a reconciliation of non-GAAP measures without unreasonable
effort as a result of the uncertainty regarding, and the potential
variability of, the amounts of interest income, interest expense,
depreciation and amortization, stock-based compensation, provisions
for income taxes, and certain other infrequently occurring items,
such as acquisition related costs, that may be incurred in the
future.
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Inogen, Inc.Investor Relations:ir@inogen.net805-562-0500
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