Fourth Quarter 2020 Procedure Volumes
Consistent with Fourth Quarter 2019 Levels
Cash and Cash Equivalents of $40.6 Million
as of December 31, 2020
LENSAR, Inc. (Nasdaq: LNSR) (“LENSAR” or “the Company”), a
global medical technology company focused on advanced femtosecond
laser surgical solutions for the treatment of cataracts, today
announced financial results for the fourth quarter and full year
ended December 31, 2020 and provided an update on key strategic and
operational initiatives.
“2020 was a transformative year for LENSAR,” said Nick Curtis,
Chief Executive Officer of LENSAR. “Despite the unprecedented
environment due to the COVID-19 pandemic, we were able to
successfully complete a spin-off from our former parent, PDL
BioPharma, Inc. (“PDL”), grow our installed base of LENSAR laser
systems roughly 10% (to approximately 225 systems) and increase our
share of the global FLACS market, providing clear evidence of
LENSAR’s technology leadership in FLACS. According to recently
published Market Scope data, procedure utilization on our systems
continued to far exceed the rest of the industry, with an average
of 430 procedures performed on each LENSAR Laser System, compared
to an average of 232 procedures performed on competing systems
during 2020.”
“Although 2020 presented a number of operational challenges, we
were encouraged by the trends in the second half of the year,
particularly the procedure activity in the U.S. and Europe, which
rebounded significantly from the first half of the year and
surpassed second half 2019 levels. We remain steadfast in our
belief that our next generation system, ALLY, will be a disruptive
technology with the ability to drive improved outcomes and
experience for patients and will provide improved efficiencies and
financial benefit to a surgeon’s practice. We remain on track to
submit an application for 510(k) clearance to the U.S. Food and
Drug Administration (“FDA”) by the end of the first quarter of
2022, and if cleared, a commercial launch later in 2022.”
Fourth Quarter 2020 Financial Results
Total revenue for the quarter ended December 31, 2020 was $8.3
million, a decrease of 2.1% or $0.2 million, compared to total
revenue of $8.5 million for the quarter ended December 31, 2019.
The decrease was primarily driven by the impact of the decline in
elective surgical procedures associated with the COVID-19 pandemic.
Fourth quarter 2020 procedure volume in the U.S. and Europe
rebounded and exceeded procedure volume in the fourth quarter of
2019, but these increases were offset by a larger decrease in
procedure volume in the Company’s remaining operating regions.
Selling, general, and administrative expenses for the quarter
ended December 31, 2020 were $8.7 million, an increase of $3.8
million or 77.8%, compared to $4.9 million for the fourth quarter
of 2019. The increase was primarily due to personnel expense, which
was largely due to stock-based compensation expense. The increase
was partially offset by a decrease in trade show and travel
expenses as a result of travel restrictions and cancellations
related to the COVID-19 pandemic.
Research and development expenses were $2.5 million and $1.4
million for the quarters ended December 31, 2020 and 2019,
respectively. This increase was primarily due to additional costs
for the continued development of ALLY in anticipation of a 510(k)
filing with the FDA in the first quarter of 2022.
Net loss for quarter ended December 31, 2020 was $6.8 million,
or $(0.78) per share, compared to a net loss of $2.5 million, or
$(2.31) per share, in 2019. Total stock-based compensation expense
recorded for the quarters ended December 31, 2020 and 2019 was $5.1
million and $0.5 million, respectively.
Full Year 2020 Financial Results
Total revenue for the year ended December 31, 2020 was $26.4
million, a decrease of 13.6% compared to total revenue of $30.5
million for the year ended December 31, 2019. The decrease was
primarily driven by the impact of the COVID-19 pandemic and the
associated decline in elective surgical procedures and sales of
LENSAR Laser Systems. The number of procedures performed decreased
by approximately 10% for the year ended December 31, 2020, as
compared to the year ended December 31, 2019, primarily driven by a
shutdown of elective procedures in all of our operating regions for
approximately three months during 2020.
Selling, general, and administrative expenses for the year ended
December 31, 2020 were $23.8 million, an increase of $6.6 million
or 38.6%, compared to $17.1 million for the year ended December 31,
2019. The increase was largely due to a $6.4 million increase in
personnel expense primarily due to stock-based compensation
expense. The overall increase was partially offset by a decrease in
trade show and travel expenses as a result of travel restrictions
and cancellations related to the COVID-19 pandemic. Selling,
general and administrative expenses included $3.4 million and $4.4
million of expenses allocated from PDL for corporate support
functions for the years ended December 31, 2020 and 2019,
respectively.
Research and development expenses were $7.6 million for the year
ended December 31, 2020, consistent with the year ended December
31, 2019. Research and development expenses in the year ended
December 31, 2020 predominantly represent expenses related to the
Company’s development of ALLY. The Company expects research and
development expenses to continue to increase as it nears the 510(k)
filing for ALLY. In addition, research and development expenses in
the year ended December 31, 2019 included $3.5 million of purchased
intellectual property.
Net loss for year ended December 31, 2020 was $19.8 million, or
$(4.28) per share, as compared to a net loss of $14.7 million, or
$(13.70) per share, for the year ended December 31, 2019. Total
stock-based compensation expense recorded for the year ended
December 31, 2020 and 2019 was $9.0 million and $0.9 million,
respectively.
Earnings Before Interest, Taxes, Depreciation and Amortization
(“EBITDA”) for the year ended December 31, 2020 was ($15.9)
million, compared with ($8.8) million in the year ended December
31, 2019. Adjusted EBITDA was ($6.9) million for the year ended
December 31, 2020, compared with ($7.9) million in the year ended
December 31, 2019.
As of December 31, 2020, the Company had cash and cash
equivalents of $40.6 million as compared to $42.7 million at
September 30, 2020, when the Company was spun-off from PDL. Based
on its cash position and operational forecasts, the Company
believes it has sufficient cash to fund operations through the
filing of its 510(k) application and expected launch of ALLY in
2022.
Conference Call:
LENSAR management will host a conference call and live webcast
to discuss the fourth quarter results and provide a business update
today, March 10, 2021 at 8:30 a.m. EST.
To participate by telephone, please dial (833) 312-1363 (U.S.)
or (236) 712-2498 (international). The conference ID number is
1061836. The live webcast can be accessed under “Events &
Presentations" in the Investor Relations section of the company's
website at https://ir.lensar.com. Please log in approximately 5-10
minutes prior to the call to register and to download and install
any necessary software. The call and webcast replay will be
available until March 24, 2021.
About LENSAR
LENSAR is a commercial-stage medical device company focused on
designing, developing and marketing an advanced femtosecond laser
system for the treatment of cataracts and the management of
pre-existing or surgically induced corneal astigmatism. Its LENSAR
Laser System incorporates a range of proprietary technologies
designed to assist the surgeon in obtaining better visual outcomes,
efficiency and reproducibility by providing advanced imaging,
simplified procedure planning, efficient design and precision.
Forward-looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements, including, without limitation,
statements regarding the Company’s development and the future
market potential of ALLY. In some cases, you can identify
forward-looking statements by terms such as “anticipate,”
“believe,” “could,” “expect,” “should,” “plan,” “intend,”
“estimate,” “target,” “mission,” “may,” “will,” “would,” “should,”
“could,” “target,” “potential,” “project,” “predict,”
“contemplate,” “potential,” or the negative thereof and similar
words and expressions.
Each of these forward-looking statements involves risks and
uncertainties. Actual results may differ materially from those,
express or implied, in these forward-looking statements. Important
factors that could impair the value of the Company’s assets and
business include, without limitation, its history of operating
losses and ability to generate revenue; its ability to maintain,
grow market acceptance of and enhance its LENSAR Laser System; the
impact of the COVID-19 pandemic and the Company’s ability to grow
revenues to the pre-COVID-19 level; the Company’s ability to obtain
the necessary clearances or approvals for ALLY; the willingness of
patients to pay the price difference for LENSAR products; its
ability to grow a U.S. sales and marketing organization; its
ability to meet its future capital needs; the impact of any
material disruption to the supply or manufacture of the LENSAR
Laser System; the ability of the Company to compete against
competitors that have longer operating histories and more
established products than the Company; the Company’s ability to
address numerous international business risks; and the other
important factors that are disclosed under the heading “Risk
Factors” contained in the Company’s Quarterly Report on Form 10-Q
for the quarterly period ended September 30, 2020, filed with the
Securities and Exchange Commission (“SEC”), as such factors may be
updated from time to time in its other filings with the SEC,
including, but not limited to, its Annual Report on Form 10-K for
the year ended December 31, 2020 to be filed with the SEC, each
accessible on the SEC’s website at www.sec.gov and the Investor
Relations section of the Company’s website at
https://ir.lensar.com. All forward-looking statements are expressly
qualified in their entirety by such factors. Except as required by
law, the Company undertakes no obligation to publicly update or
review any forward-looking statement, whether as a result of new
information, future developments or otherwise. These
forward-looking statements should not be relied upon as
representing LENSAR’s views as of any date subsequent to the date
of this press release.
Non-GAAP Financial Measures
The Company prepares and analyzes operating and financial data
and non-GAAP measures to assess the performance of its business,
make strategic and offering decisions and build its financial
projections. The key non-GAAP measures it uses are EBITDA and
Adjusted EBITDA.
EBITDA is defined as net loss before interest expense, income
tax expense, interest income, depreciation and amortization
expenses. EBITDA is a non-GAAP financial measure. EBITDA is
specifically disclosed because the Company believes that EBITDA
provides meaningful supplemental information for investors
regarding the performance of its business and facilitates a
meaningful evaluation of actual results on a comparable basis with
historical results. Adjusted EBITDA is also a non-GAAP financial
measure. The Company believes Adjusted EBITDA, which excludes
stock-based compensation expense, provides meaningful supplemental
information for investors when evaluating its results and comparing
it to peer companies as stock-based compensation expense is a
significant non-cash charge due to the recapitalization of the
Company. It uses these non-GAAP financial measures in order to have
comparable financial results to analyze changes in its underlying
business from quarter to quarter. However, there are a number of
limitations related to the use of non-GAAP measures and their
nearest GAAP equivalents. For example, other companies may
calculate non-GAAP measures differently, or may use other measures
to calculate their financial performance and, therefore, any
non-GAAP measures it use may not be directly comparable to
similarly titled measures of other companies.
A reconciliation of EBITDA and Adjusted EBITDA to their most
comparable GAAP financial measure are set forth below.
Three Months Ended December
31,
Year Ended December
31,
(Dollars in thousands)
2020
2019
2020
2019
Net loss
$
(6,828)
$
(2,468)
$
(19,774)
$
(14,657)
Add: Interest expense
—
554
1,340
2,001
Less: Interest income
(20)
(17)
(68)
(58)
Add: Depreciation expense
274
548
1,309
2,639
Add: Amortization expense
312
317
1,256
1,227
EBITDA
(6,262)
(1,066)
(15,937)
(8,848)
Add: Stock-based compensation expense
5,136
543
9,026
918
Adjusted EBITDA
$
(1,126)
$
(523)
$
(6,911)
$
(7,930)
LENSAR, Inc.
STATEMENTS OF
OPERATIONS
(In thousands, except per
share amounts)
Three Months Ended December
31,
Year Ended December
31,
2020
2019
2020
2019
Revenue
Product
$
6,471
$
6,694
$
19,831
$
23,254
Lease
1,082
1,008
3,601
4,181
Service
731
758
2,950
3,093
Total revenue
8,284
8,460
26,382
30,528
Cost of revenue (exclusive of
amortization)
Product
2,479
2,673
8,303
12,030
Lease
231
477
1,136
2,264
Service
909
645
2,868
3,005
Total cost of revenue
3,619
3,795
12,307
17,299
Operating expenses
Selling, general and administrative
expenses
8,658
4,869
23,768
17,147
Research and development expenses
2,543
1,410
7,553
7,569
Amortization of intangible assets
312
317
1,256
1,227
Operating loss
(6,848)
(1,931)
(18,502)
(12,714)
Other income (expense)
Interest expense
—
(554)
(1,340)
(2,001)
Other income, net
20
17
68
58
Net loss attributable to common
stockholders
$
(6,828)
$
(2,468)
$
(19,774)
$
(14,657)
Net loss per share attributable to
common stockholders
Basic and diluted
$
(0.78)
$
(2.31)
$
(4.28)
$
(13.70)
Weighted-average number of shares used
in calculation of net loss per
share:
Basic and diluted
8,787
1,070
4,621
1,070
LENSAR, Inc.
BALANCE SHEETS
(In thousands, except per
share amounts)
As of December 31,
2020
2019
Assets
Current assets:
Cash and cash equivalents
$
40,599
$
4,615
Accounts receivable, net of
allowance of $19 and $0, respectively
2,012
3,384
Notes receivable, net of
allowance of $9 and $0, respectively
444
502
Inventories
13,473
8,064
Prepaid and other current assets
1,857
618
Total current assets
58,385
17,183
Property and equipment, net
832
720
Equipment under lease, net
3,583
1,431
Notes and other receivables,
long-term, net of allowance of $9 and $0, respectively
452
827
Intangible assets, net
12,110
13,366
Other assets
3,758
1,009
Total assets
$
79,120
$
34,536
Liabilities and stockholders’ equity
(deficit)
Current liabilities:
Accounts payable
$
2,481
$
1,577
Accrued liabilities
4,570
4,778
Deferred revenue
923
777
Other current liabilities
493
697
Total current liabilities
8,467
7,829
Long-term operating lease liabilities
3,314
333
Note payable due to related party
—
20,200
Series A Preferred Stock
—
36,417
Other long-term liabilities
129
310
Total liabilities
11,910
65,089
Stockholders’ equity (deficit):
Common stock, par value $0.01 per
share, 150,000 and 1,070 shares authorized at December 31, 2020 and
2019, respectively; 10,933 and 1,070 shares issued and outstanding
at December 31, 2020 and 2019, respectively
109
11
Additional paid-in capital
125,094
7,621
Accumulated deficit
(57,993)
(38,185)
Total stockholders’ equity (deficit)
67,210
(30,553)
Total liabilities and stockholders’
equity (deficit)
$
79,120
$
34,536
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210310005149/en/
Thomas R. Staab, II, CFO ir.contact@lensar.com
Lee Roth / Cameron Radinovic Burns McClellan for LENSAR
lroth@burnsmc.com / cradinovic@burnsmc.com
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