Venus Concept Inc. (“Venus Concept” or the “Company”) (NASDAQ:
VERO), a global medical aesthetic technology leader, announced
financial results for the three and twelve months ended December
31, 2020.
Fourth Quarter 2020 Financial Summary:
- Total GAAP revenue for the fourth
quarter of 2020 decreased 19% year-over-year, to $25.8 million,
compared to $31.9 million for the fourth quarter 2019, driven by
the negative impact of the COVID-19 global pandemic on our
business.
- Total GAAP revenue for the fourth
quarter of 2020 increased 25%, compared to $20.7 million for the
third quarter of 2020.
- GAAP operating loss for the fourth
quarter of 2020 was $10.3 million, compared to a loss of $17.9
million for the fourth quarter of 2019, a decrease in operating
loss of $7.6 million, or 42%, year-over-year.
- GAAP net loss for the fourth
quarter of 2020 of $15.0 million, compared to a loss of $22.7
million for the fourth quarter of 2019, a decrease in net loss of
$7.7 million, or 34%, year-over-year.
- Adjusted EBITDA loss of $2.4
million for the fourth quarter of 2020, compared to Adjusted EBITDA
loss of $11.5 million in the fourth quarter of 2019, a decrease in
adjusted EBITDA loss of $9.1 million year-over-year.
- The Company had $34.4 million and
$15.7 million of cash and cash equivalents as of December 31, 2020
and December 31, 2019, respectively, and total debt obligations of
approximately $79.6 million and $69.0 million as of December 31,
2020 and December 31, 2019, respectively.
Management Commentary:
“We continued to see improvements in business
trends during the fourth quarter as customers in our key markets
around the world continue to recover,” said Domenic Serafino, Chief
Executive Officer of Venus Concept. “Fourth quarter sales increased
25% as compared to our third quarter sales results, driven by 50%
quarter-over-quarter growth in sales to U.S. customers and 10%
quarter-over-quarter growth in sales to International customers.
The improvement in growth trends as compared to the third quarter
was driven by strong procedure-related activity in both our
aesthetics and hair restoration businesses, and strong system sales
results of our Venus Bliss and ARTAS iX®. Based on our current
assessment and increased pipeline activity, we believe that we will
continue to see an improvement in capital equipment demand in the
aesthetics and hair restoration markets as we move through 2021.
Our focused commercial strategy is helping us maximize our
opportunities to drive adoption of our key products.”
Mr. Serafino continued: “Our fourth quarter
financial results reflect strong execution of our plan to balance
our operating expense management, while continuing to make
strategic investments, specifically in the North American market,
to better-position us for profitable growth in the years to come.
In the fourth quarter of 2020, we reduced our GAAP operating
expenses by $10.6 million, or 28%, year-over-year, reduced our
adjusted EBITDA loss by $9.1 million, or 79%, year-over-year and
generated positive cash flow from operations during the period. We
enter 2021 with a significantly enhanced balance sheet and
financial condition as a result of the notable transactions we
announced in December, including a new loan agreement, refinanced
long-term debt obligations and net proceeds from our recent public
offering. Together, these activities and our operating expense
management during 2020, resulted in approximately $34 million in
cash on our balance sheet at year-end to support our future growth
initiatives. We have repositioned the Company over the last year
and stand poised for a return to above-market growth - as evidenced
by our expectations for revenue growth of 26% to 32% year-over-year
in fiscal year 2021 - and we expect strong operating leverage in
2021 as well.”
Fourth Quarter and Fiscal Year 2020 Revenue by Region
and by Product Type:
Venus Concept Inc. |
Supplemental Financial Information - Revenue by Geographic
Area |
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Three months ended December 31, |
|
Increase / (decrease) |
|
Twelve months ended December 31, |
|
Increase / (decrease) |
(Dollars in millions) |
|
2020 |
|
2019 |
|
$ |
|
% |
|
2020 |
|
2019 |
|
$ |
|
% |
United States |
|
$ |
11.6 |
|
$ |
16.4 |
|
$ |
(4.7 |
) |
|
(28.9 |
) |
% |
|
$ |
34.0 |
|
$ |
47.7 |
|
$ |
(13.7 |
) |
|
(28.8 |
) |
% |
International |
|
|
14.2 |
|
|
15.5 |
|
|
(1.3 |
) |
|
(8.3 |
) |
% |
|
|
44.0 |
|
|
62.7 |
|
|
(18.7 |
) |
|
(29.8 |
) |
% |
Total |
|
$ |
25.8 |
|
$ |
31.9 |
|
$ |
(6.0 |
) |
|
(18.9 |
) |
% |
|
$ |
78.0 |
|
$ |
110.4 |
|
$ |
(32.4 |
) |
|
(29.3 |
) |
% |
*numbers may not foot due to rounding.
Venus Concept Inc. |
Supplemental Financial Information - Revenue by
Type |
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Three months ended December 31, |
|
Increase / (decrease) |
|
Twelve months ended December 31, |
|
Increase / (decrease) |
(Dollars in millions) |
|
2020 |
|
2019 |
|
$ |
|
% |
|
2020 |
|
2019 |
|
$ |
|
% |
Lease revenue |
|
$ |
9.7 |
|
$ |
16.4 |
|
$ |
(6.6 |
) |
|
(40.6 |
) |
% |
|
$ |
33.4 |
|
$ |
65.2 |
|
$ |
(31.7 |
) |
|
(48.7 |
) |
% |
System revenue |
|
|
11.2 |
|
|
10.5 |
|
|
0.7 |
|
|
6.2 |
|
% |
|
|
29.0 |
|
|
31.7 |
|
|
(2.8 |
) |
|
(8.7 |
) |
% |
Product revenue |
|
|
3.7 |
|
|
2.8 |
|
|
0.9 |
|
|
31.7 |
|
% |
|
|
10.9 |
|
|
6.9 |
|
|
3.9 |
|
|
56.4 |
|
% |
Service revenue |
|
|
1.2 |
|
|
2.1 |
|
|
(0.9 |
) |
|
(44.1 |
) |
% |
|
|
4.8 |
|
|
6.6 |
|
|
(1.8 |
) |
|
(27.3 |
) |
% |
Total |
|
$ |
25.8 |
|
$ |
31.9 |
|
$ |
(6.0 |
) |
|
(18.9 |
) |
% |
|
$ |
78.0 |
|
$ |
110.4 |
|
$ |
(32.4 |
) |
|
(29.3 |
) |
% |
*numbers may not foot due to rounding.
Fourth Quarter 2020 Financial Results:
Total revenue for the fourth quarter of 2020
decreased $6.0 million, or 19%, to $25.8 million, compared to $31.9
million for the fourth quarter of 2019. Total lease revenue, from
sales of systems via our subscription model, decreased $6.6
million, or 41%, to $9.7 million, compared to $16.4 million for the
fourth quarter of 2019. Total products and services revenue for the
fourth quarter of 2020 increased $0.6 million, or 4%, to $16.1
million, compared to $15.5 million for the fourth quarter of
2019.
The decrease in revenue was a result of
decreased revenue in the United States of $4.7 million, or 29%, and
decreased revenue in international markets of $1.3 million, or 8%.
The decrease in revenue in both the United States and international
markets was driven by COVID-19 related lockdown measures or
restrictions imposed by federal and state governments. These
disruptions and the resultant uncertainty at the clinic level
negatively impacted our ability to sell into our customary channels
in both the United States and international markets. Although our
selling efforts were hampered by target customer concerns in making
capital outlays given the economic uncertainty, this became less of
an obstacle towards the end of 2020 as we experienced improving
sales trend in most markets.
The decrease in total revenue, by product
category, for the fourth quarter of 2020 was driven by a decrease
of $6.6 million, or 41%, in lease revenue, a decrease of $0.9
million, or 44%, in service revenue, offset partially by an
increase of $0.9 million, or 32%, in other products revenue,
primarily ARTAS® and ARTAS iX® procedure kits and other
consumables, and an increase of $0.7 million, or 6%, in system
revenue. The percentage of systems revenue derived from our
subscription model was approximately 46% in the three months ended
December 31, 2020 compared to 61% in the three months ended
December 31, 2019.
The increase in system revenue for the fourth
quarter of 2020 was driven by a significant contribution of revenue
from the sale of ARTAS® and ARTAS iX® systems, compared to the
prior year period which only included contributions from the sale
of ARTAS® and ARTAS iX® systems revenue following the closing of
our merger on November 7, 2019. The increase in other product
revenue was driven by sales of ARTAS procedure kits, only
contributed to other product revenue for a partial period in the
fourth quarter of 2019. The decrease in service revenue for the
fourth quarter of 2020 was driven by COVID-19 related restrictions
imposed by federal, state, and local governments resulting in a
decline in VeroGrafters™ technician services, along with the
suspension of operations of the 2two5 marketing services, offset by
additional warranty revenue on ARTAS® systems.
Gross profit for the fourth quarter of 2020
decreased $3.0 million, or 15.4%, to $16.7 million, compared to
$19.7 million for the fourth quarter of 2019. The decrease in gross
profit is primarily due to lower revenues caused by the
aforementioned COVID-19 related disruptions in countries and
markets in which the Company operates. Gross margin was 64.7% of
revenue for the fourth quarter of 2020, compared to 62.0% of
revenue for the fourth quarter of 2019. The increase in gross
margin is primarily related to initiatives directed at reducing
manufacturing costs of our robotic ARTAS® systems.
Operating expenses for the fourth quarter of
2020 decreased $10.7 million, or 28%, to $26.9 million, compared to
$37.6 million for the fourth quarter of 2019. The year-over-year
decrease in operating expenses was primarily driven by a decrease
of $5.0 million, or 22%, in general & administrative expenses,
a decrease of $5.0 million, or 41%, in sales and marketing expenses
and a decrease of $0.7 million, or 28%, in R&D expenses,
compared to the prior year period. The decrease in GAAP operating
expense in the fourth quarter of 2020 was partially offset by
incremental bad debt expense of $5.4 million related to COVID-19,
restructuring expenses of $0.5 million and, to a lesser extent,
non-recurring legal expenses of $0.3 million. Excluding these
items, fourth quarter of 2020 operating expenses declined 45%
year-over-year.
Operating loss for the fourth quarter of 2020
was $10.2 million, compared to operating loss of $17.9 million for
the fourth quarter of 2019.
Net loss attributable to Venus Concept Inc.
stockholders for the fourth quarter of 2020 was $14.7 million, or
$0.34 per share, compared to net loss attributable to Venus Concept
Inc. stockholders of $20.8 million, or $1.07 per share, for the
fourth quarter of 2019. Weighted average shares used to compute net
loss attributable to Venus Concept Inc. stockholders per share were
42.8 million and 19.5 million for the fourth quarters of 2020 and
2019, respectively.
Adjusted EBITDA loss for the fourth quarter of
2020 was $2.4 million, compared to Adjusted EBITDA loss of $11.5
million for the fourth quarter of 2019.
Fiscal Year 2020 Financial Results:
Total revenue decreased by $32.4 million, or
29.3%, to $78.0 million for the year ended December 31, 2020 from
$110.4 million for the year ended December 31, 2019. The decrease
in total revenue was driven by an $18.7 million, or 30%
year-over-year, decline in sales in international markets and a
$13.7 million, or 29% year-over-year, decline in sales in the
United States. These disruptions and the resultant uncertainty at
the clinic level negatively impacted our ability to sell into our
customary channels in both the United States and international
markets. Although our selling efforts were hampered by target
customer concerns in making capital outlays given the economic
uncertainty, this became less of an obstacle towards the end of
2020 as we experienced improving sales trend in most markets.
Net loss attributable to Venus Concept Inc.
stockholders for the year ended December 31, 2020 was $85.3
million, or $2.33 per share, compared to net loss attributable to
Venus Concept Inc. stockholders of $40.6 million, or $4.77 per
share, for the year ended December 31, 2019. Weighted average
shares used to compute net loss attributable to Venus Concept Inc.
stockholders per share were 36.6 million and 8.5 million for the
year ended December 31, 2020 and 2019, respectively.
Adjusted EBITDA loss for the year ended December
31, 2020 was $20.1 million, compared to adjusted EBITDA loss of
$12.5 million for the year ended December 31, 2019.
Fiscal Year 2021 Revenue Guidance:
Assuming no significant and persistent
resurgence of COVID-19 and related lockdown measures in key markets
that would negatively impact the Company’s customer base, and based
on a notable increase in pipeline activity, the Company continues
to expect total revenue for the twelve months ending December 31,
2021 in the range of $98.0 million to $103.0 million, representing
an increase of approximately 26% to 32% year-over-year, compared to
total revenue of $78.0 million for the twelve months ended December
31, 2020.
Conference Call Details:
Management will host a conference call at 5:00
p.m. Eastern Time on March 29, 2021 to discuss the results of the
quarter and fiscal year with a question and answer session. Those
who would like to participate may dial 877-407-2991 (201-389-0925
for international callers) and provide access code 13715787. A live
webcast of the call will also be provided on the investor relations
section of the Company's website at ir.venusconcept.com.
For those unable to participate, a replay of the
call will be available for two weeks at 877-660-6853 (201-612-7415
for international callers); access code 13715787. The webcast will
be archived at ir.venusconcept.com.
About Venus Concept
Venus Concept is an innovative global medical
aesthetic technology leader with a broad product portfolio of
minimally invasive and non-invasive medical aesthetic and hair
restoration technologies and reach in over 60 countries and 20
direct markets. Venus Concept focuses its product sales strategy on
a subscription-based business model in North America and in its
well-established direct global markets. Venus Concept’s product
portfolio consists of aesthetic device platforms, including Venus
Versa, Venus Legacy, Venus Velocity, Venus Fiore, Venus Viva, Venus
Freeze Plus, Venus Heal, Venus Glow, Venus Bliss, Venus Epileve and
Venus Viva MD. Venus Concept’s hair restoration systems includes
NeoGraft®, an automated hair restoration system that facilitates
the harvesting of follicles during a FUE process and the ARTAS® and
ARTAS iX® Robotic Hair Restoration systems, which harvest
follicular units directly from the scalp and create recipient
implant sites using proprietary algorithms. Venus Concept has been
backed by leading healthcare industry growth equity investors
including EW Healthcare Partners (formerly Essex Woodlands),
HealthQuest Capital, Longitude Capital Management, and Aperture
Venture Partners.
Cautionary Statement Regarding
Forward-Looking Statements
This communication contains contains
“forward-looking” statements within the meaning of Section 27A
of the Securities Act of 1933, as amended (the “1933 Act”) and
Section 21E of the Securities Exchange Act of 1934, as amended
(the “1934 Act”). Any statements contained herein that are not of
historical facts may be deemed to be forward-looking statements. In
some cases, you can identify these statements by words such as such
as “anticipates,” “believes,” “plans,” “expects,” “projects,”
“future,” “intends,” “may,” “should,” “could,” “estimates,”
“predicts,” “potential,” “continue,” “guidance,” and other similar
expressions that are predictions of or indicate future events and
future trends. These forward-looking statements include, but are
not limited to, statements about the expected synergies and cost
savings from our merger with Venus Concept Ltd.; our financial
performance; the growth in demand for our systems and other
products; and general economic conditions, including the global
economic impact of COVID-19, involve risks and uncertainties that
may cause results to differ materially from those set forth in the
statements. These forward-looking statements are based on current
expectations, estimates, forecasts, and projections about our
business and the industry in which the Company operates and
management's beliefs and assumptions and are not guarantees of
future performance or developments and involve known and unknown
risks, uncertainties, and other factors that are in some cases
beyond our control. As a result, any or all of our forward-looking
statements in this communication may turn out to be inaccurate.
Factors that could materially affect our business operations and
financial performance and condition include, but are not limited
to, those risks and uncertainties described under Part I Item
1A—“Risk Factors” in our Annual Report on Form 10-K for the
fiscal year ended December 31, 2020. You are urged to consider
these factors carefully in evaluating the forward-looking
statements and are cautioned not to place undue reliance on the
forward-looking statements. The forward-looking statements are
based on information available to us as of the date of this
communication. Unless required by law, the Company does not intend
to publicly update or revise any forward-looking statements to
reflect new information or future events or otherwise.
Venus Concept Inc. |
|
Condensed Consolidated Balance Sheets |
|
(In thousands of U.S. dollars, except share and per share
data) |
|
|
|
|
|
Year Ended, December 31, |
|
|
|
2020 |
|
|
2019 |
|
ASSETS |
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
34,297 |
|
|
$ |
15,666 |
|
Restricted cash |
|
|
83 |
|
|
|
83 |
|
Accounts receivable, net of allowance of $18,490 and $10,494 as of
December 31, 2020, and 2019 |
|
|
52,764 |
|
|
|
58,977 |
|
Inventories |
|
|
17,759 |
|
|
|
18,844 |
|
Deferred expenses |
|
|
— |
|
|
|
59 |
|
Prepaid expenses |
|
|
2,240 |
|
|
|
2,523 |
|
Advances to suppliers |
|
|
2,587 |
|
|
|
450 |
|
Other current assets |
|
|
5,674 |
|
|
|
3,101 |
|
Total current assets |
|
|
115,404 |
|
|
|
99,703 |
|
LONG-TERM ASSETS: |
|
|
|
|
|
|
|
|
Long-term receivables |
|
|
21,148 |
|
|
|
35,656 |
|
Deferred tax assets |
|
|
884 |
|
|
|
622 |
|
Severance pay funds |
|
|
685 |
|
|
|
710 |
|
Property and equipment, net |
|
|
3,539 |
|
|
|
4,648 |
|
Intangible assets |
|
|
18,865 |
|
|
|
22,338 |
|
Goodwill |
|
|
— |
|
|
|
27,450 |
|
Total long-term assets |
|
|
45,121 |
|
|
|
91,424 |
|
TOTAL ASSETS |
|
$ |
160,525 |
|
|
$ |
191,127 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Line of credit |
|
$ |
— |
|
|
$ |
7,789 |
|
Trade payables |
|
|
6,322 |
|
|
|
9,401 |
|
Accrued expenses and other current liabilities |
|
|
20,253 |
|
|
|
21,120 |
|
Income taxes payable |
|
|
1,132 |
|
|
|
2,172 |
|
Unearned interest income |
|
|
1,950 |
|
|
|
3,942 |
|
Warranty accrual |
|
|
1,106 |
|
|
|
1,254 |
|
Deferred revenues |
|
|
1,752 |
|
|
|
2,495 |
|
Total current liabilities |
|
|
32,515 |
|
|
|
48,173 |
|
LONG-TERM LIABILITIES: |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
75,491 |
|
|
|
61,229 |
|
Government assistance
loans |
|
|
4,110 |
|
|
|
— |
|
Income tax payable |
|
|
478 |
|
|
|
— |
|
Accrued severance pay |
|
|
755 |
|
|
|
827 |
|
Deferred tax liabilities |
|
|
811 |
|
|
|
1,017 |
|
Unearned interest income |
|
|
1,778 |
|
|
|
1,681 |
|
Warranty accrual |
|
|
533 |
|
|
|
723 |
|
Other long-term
liabilities |
|
|
293 |
|
|
|
799 |
|
Total long-term liabilities |
|
|
84,249 |
|
|
|
66,276 |
|
TOTAL LIABILITIES |
|
|
116,764 |
|
|
|
114,449 |
|
Commitments and Contingencies
(Note 9) |
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY (Note
1): |
|
|
|
|
|
|
|
|
Common Stock, $0.0001 par
value: 300,000,000 shares authorized as of December 31, 2020 and
2019; 53,551,126 and 28,686,116 issued and outstanding as of
December 31, 2020 and 2019, respectively |
|
|
26 |
|
|
|
24 |
|
Additional paid-in capital
(Note 1) |
|
|
201,598 |
|
|
|
149,840 |
|
Accumulated deficit |
|
|
(157,392 |
) |
|
|
(75,686 |
) |
TOTAL STOCKHOLDERS’
EQUITY |
|
|
44,232 |
|
|
|
74,178 |
|
Non-controlling interests |
|
|
(471 |
) |
|
|
2,500 |
|
|
|
|
43,761 |
|
|
|
76,678 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
$ |
160,525 |
|
|
$ |
191,127 |
|
Venus Concept Inc. |
Consolidated Statement of Operations |
(In thousands of U.S. dollars, except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
Year ended December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Leases |
|
$ |
9,719 |
|
|
$ |
16,358 |
|
|
$ |
33,428 |
|
|
$ |
65,170 |
|
Products and services |
|
|
16,111 |
|
|
|
15,496 |
|
|
|
44,586 |
|
|
|
45,236 |
|
|
|
|
25,830 |
|
|
|
31,854 |
|
|
|
78,014 |
|
|
|
110,406 |
|
Cost of goods sold |
|
|
|
|
|
|
|
|
|
|
|
|
Leases |
|
|
2,603 |
|
|
|
3,147 |
|
|
|
7,899 |
|
|
|
13,411 |
|
Products and services |
|
|
6,516 |
|
|
|
8,961 |
|
|
|
18,724 |
|
|
|
20,342 |
|
|
|
|
9,119 |
|
|
|
12,108 |
|
|
|
26,623 |
|
|
|
33,753 |
|
Gross profit |
|
|
16,711 |
|
|
|
19,746 |
|
|
|
51,391 |
|
|
|
76,653 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing |
|
|
7,390 |
|
|
|
12,426 |
|
|
|
26,203 |
|
|
|
41,409 |
|
General and administrative |
|
|
17,919 |
|
|
|
22,851 |
|
|
|
57,882 |
|
|
|
57,488 |
|
Research and development |
|
|
1,711 |
|
|
|
2,367 |
|
|
|
7,754 |
|
|
|
8,034 |
|
Goodwill impairment |
|
|
- |
|
|
|
- |
|
|
|
27,450 |
|
|
|
- |
|
Total operating expenses |
|
|
27,020 |
|
|
|
37,644 |
|
|
|
119,289 |
|
|
|
106,931 |
|
Loss from operations |
|
|
(10,309 |
) |
|
|
(17,898 |
) |
|
|
(67,898 |
) |
|
|
(30,278 |
) |
Other expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange (gain) loss |
|
|
(4,277 |
) |
|
|
2,202 |
|
|
|
(68 |
) |
|
|
2,611 |
|
Finance expenses |
|
|
1,821 |
|
|
|
1,645 |
|
|
|
8,343 |
|
|
|
7,549 |
|
Loss on debt extinguishment |
|
|
2,938 |
|
|
|
- |
|
|
|
2,938 |
|
|
|
- |
|
Loss on disposal of subsidiaries |
|
|
2,047 |
|
|
|
- |
|
|
|
2,526 |
|
|
|
- |
|
Loss before income taxes |
|
|
(12,838 |
) |
|
|
(21,745 |
) |
|
|
(81,637 |
) |
|
|
(40,438 |
) |
Income tax expense |
|
|
2,191 |
|
|
|
990 |
|
|
|
1,181 |
|
|
|
1,857 |
|
Net loss |
|
|
(15,029 |
) |
|
|
(22,735 |
) |
|
|
(82,818 |
) |
|
|
(42,295 |
) |
Deemed dividend |
|
|
- |
|
|
|
- |
|
|
|
3,564 |
|
|
|
- |
|
Loss attributable to
stockholders of the Company |
|
|
(14,685 |
) |
|
|
(20,796 |
) |
|
|
(85,270 |
) |
|
|
(40,619 |
) |
Loss attributable to
non-controlling interest |
|
|
(344 |
) |
|
|
(1,939 |
) |
|
|
(1,112 |
) |
|
|
(1,676 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.34 |
) |
|
$ |
(1.07 |
) |
|
$ |
(2.33 |
) |
|
$ |
(4.77 |
) |
Diluted |
|
|
(0.34 |
) |
|
|
(1.07 |
) |
|
|
(2.33 |
) |
|
|
(4.77 |
) |
Weighted-average number of
shares used in per share calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
42,802 |
|
|
|
19,511 |
|
|
|
36,626 |
|
|
|
8,517 |
|
Diluted |
|
|
42,802 |
|
|
|
19,511 |
|
|
|
36,626 |
|
|
|
8,517 |
|
Use of Non-GAAP Financial Measures
Adjusted EBITDA
is a non-GAAP measure defined as net loss
income before foreign exchange loss, financial expenses, income tax
expense, depreciation and amortization, stock-based
compensation and non-recurring items for a
given period. Adjusted EBITDA is not a measure of our financial
performance under U.S. GAAP and should not be considered an
alternative to net income or any other performance measures derived
in accordance with U.S. GAAP. Accordingly, you should consider
Adjusted EBITDA along with other financial performance measures,
including net income, and our financial results presented in
accordance with U.S. GAAP. Other companies, including companies in
our industry, may calculate Adjusted EBITDA differently or not at
all, which reduces its usefulness as a comparative measure. We
understand that although Adjusted EBITDA is frequently used by
securities analysts, lenders and others in their evaluation of
companies, Adjusted EBITDA has limitations as an analytical tool,
and you should not consider it in isolation, or as a substitute for
analysis of our results as reported under U.S. GAAP. Some of these
limitations are: Adjusted EBITDA does not reflect our cash
expenditures or future requirements for capital expenditures or
contractual commitments; Adjusted EBITDA does not reflect changes
in, or cash requirements for, our working capital needs; and
although depreciation and amortization
are a non-cash charges, the assets being
depreciated will often have to be replaced in the future, and
Adjusted EBITDA does not reflect any cash requirements for such
replacements.
We believe that Adjusted EBITDA is a useful
measure for analyzing the performance of our core business because
it facilitates operating performance comparisons from period to
period and company to company by backing out potential differences
caused by changes in foreign exchange rates that impact financial
assets and liabilities denominated in currencies other than the
U.S. dollar, tax positions (such as the impact on periods or
companies of changes in effective tax rates), the age and book
depreciation of fixed assets (affecting relative depreciation
expense), amortization of intangible assets, stock-based
compensation expense (because it
is a non-cash expense) and non-recurring items as
explained below.
The following reconciliation of net loss to Adjusted EBITDA for
the years presented:
Venus Concept Inc. |
Reconciliation of Net loss to Non-GAAP Adjusted
EBITDA |
(In thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
Twelve months ended December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Reconciliation of net
loss to adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(15,029 |
) |
|
$ |
(22,735 |
) |
|
$ |
(82,818 |
) |
|
$ |
(42,295 |
) |
Foreign exchange (gain)
loss |
|
|
(4,277 |
) |
|
|
2,202 |
|
|
|
(68 |
) |
|
|
2,611 |
|
Loss on debt
extinguishment |
|
|
1,821 |
|
|
|
1,645 |
|
|
|
2,938 |
|
|
|
- |
|
Loss on disposal of
subsidiaries |
|
|
2,938 |
|
|
|
- |
|
|
|
2,526 |
|
|
|
- |
|
Finance expenses |
|
|
2,047 |
|
|
|
- |
|
|
|
8,343 |
|
|
|
7,549 |
|
Income tax expense |
|
|
2,191 |
|
|
|
990 |
|
|
|
1,181 |
|
|
|
1,857 |
|
Depreciation and
amortization |
|
|
1,109 |
|
|
|
976 |
|
|
|
4,804 |
|
|
|
2,040 |
|
Stock-based compensation
expense |
|
|
535 |
|
|
|
426 |
|
|
|
2,138 |
|
|
|
2,158 |
|
Goodwill impairment
charge |
|
|
- |
|
|
|
- |
|
|
|
27,450 |
|
|
|
- |
|
COVID-19 related bad
debts |
|
|
5,430 |
|
|
|
- |
|
|
|
11,088 |
|
|
|
- |
|
Other adjustments (1) |
|
|
845 |
|
|
|
4,953 |
|
|
|
2,280 |
|
|
|
13,553 |
|
Adjusted EBITDA |
|
$ |
(2,390 |
) |
|
$ |
(11,543 |
) |
|
$ |
(20,138 |
) |
|
$ |
(12,527 |
) |
(1) For the year ended December 31, 2020, the other adjustments
are represented by severance and retention payments ($1.9 million)
and litigation settlement expenses ($0.3 million). For the year
ended December 31, 2019, the other adjustments are mainly
represented by professional fees related to the Merger and a patent
infringement case.
Investor Relations Contact:
Westwicke Partners on behalf of Venus Concept:
Mike Piccinino, CFA
VenusConceptIR@westwicke.com
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