Inari Medical Reports Second Quarter 2021 Financial Results
August 10 2021 - 4:01PM
Inari Medical, Inc. (NASDAQ: NARI) (“Inari”) a commercial-stage
medical device company focused on developing products to treat and
transform the lives of patients suffering from venous diseases,
today reported financial results for its second quarter ended June
30, 2021.
Second Quarter Revenue and Business
Highlights:
- Treated a record number of patients,
with revenue of $63.5 million for the second quarter of 2021, up
11% sequentially and 150% year-over-year.
- Announced FDA clearance of
FlowSaver, enabling bloodless thrombectomy with the use of Triever
Catheters.
- Presented interim results of the
CLOUT DVT registry at New Cardiovascular Horizons, confirming best
in class safety, clot removal, and clinical results for patients
treated with ClotTriever.
- Ended the quarter with $176.1
million in cash, cash equivalents and short-term investments.
“Our second quarter was highly successful, especially in ways
most important to our mission to treat and transform the lives of
our patients,” said Bill Hoffman, CEO of Inari Medical. “We treated
a record number of patients, reported best in class data from our
CLOUT registry, and announced FDA clearance of FlowSaver, making
bloodless thrombectomy a reality across the entire Inari portfolio.
We continue to invest aggressively to expand our capabilities to
treat even more patients and address more unmet needs. We love
every second of this work, and we are so thankful to all of you for
believing and committing along with us in this mission.”
Second Quarter 2021 Financial
Results
Revenue was $63.5 million for the second quarter of 2021,
compared to $57.4 million for the prior quarter and $25.4 million
for the second quarter of 2020. The increase over prior year was
driven by continued U.S. commercial expansion and new product
introductions.
Gross profit was $58.6 million for the second quarter of 2021,
compared to $21.9 million for the same period of 2020. Gross margin
was 92.4% for the second quarter of 2021, up from 86.3% for the
same period in the prior year, due primarily to the impact of an
idle capacity charge in the second quarter of 2020 of $1.1 million,
combined with current quarter product mix and manufacturing
efficiencies.
Operating expenses for the second quarter of 2021 were $54.5
million, compared to $22.5 million for the second quarter of 2020.
The increase was mainly driven by an increase in personnel-related
expenses to fund the expansion of the commercial, research and
development, clinical and support organization.
Net income was $4.1 million for the second quarter of 2021 and
net income per share was $0.08 on a weighted-average basic share
count of 49.7 million and $0.07 on a diluted share count of 55.6
million, compared to a net loss of $3.8 million and a net loss per
share of $0.16 on a weighted-average basic and diluted share count
of 24.3 million in the same period of the prior year.
Our cash, cash equivalents and short-term investments were
$176.1 million as of June 30, 2021.
COVID-19 and Guidance
Despite ongoing challenges and uncertainties in its operating
environment, Inari Medical is updating financial guidance as
follows:
- For the full-year 2021, revenue guidance is increased to $250
to $255 million from the previous guidance of $240 to $250
million.
Webcast and Conference Call Information
Inari Medical will host a conference call to discuss the second
quarter 2021 financial results after market close on Tuesday,
August 10, 2021 at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time.
The conference call can be accessed live over the phone (833)
519-1265 for U.S. callers or (914) 800-3838 for international
callers, using conference ID: 1160795. The live webinar can be
accessed at https://ir.inarimedical.com.
About Inari Medical, Inc.
Inari Medical, Inc. is a commercial-stage medical device company
focused on developing products to treat and transform the lives of
patients suffering from venous diseases. Inari has developed two
minimally-invasive, novel catheter-based mechanical thrombectomy
devices that are designed to remove large clots from large vessels
and eliminate the need for thrombolytic drugs. The company
purpose-built its products for the specific characteristics of the
venous system and the treatment of the two distinct manifestations
of venous thromboembolism, or VTE: deep vein thrombosis and
pulmonary embolism. The ClotTriever system is 510(k)-cleared by the
FDA and CE Mark approved for the treatment of deep vein thrombosis.
The FlowTriever system is 510(k)-cleared by the FDA and CE Mark
approved for the treatment of pulmonary embolism and clot in
transit in the right atrium.
Forward Looking Statements
Statements in this press release may contain “forward-looking
statements” that are subject to substantial risks and
uncertainties. Forward-looking statements contained in this press
release may be identified by the use of words such as “may,”
“will,” “should,” “expect,” “plan,” “anticipate,” “could,”
“intend,” “target,” “project,” “contemplate,” “believe,”
“estimate,” “predict,” “potential” or “continue” or the negative of
these terms or other similar expressions. Forward-looking
statements include financial guidance regarding second quarter and
full year 2021 revenue and the potential impact of COVID-19 on the
business, and are based on Inari’s current expectations, forecasts
and assumptions, are subject to inherent uncertainties, risks and
assumptions that are difficult to predict, and actual outcomes and
results could differ materially due to a number of factors. These
and other risks and uncertainties include those described more
fully in the section titled “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operation” and elsewhere in its Annual Report on Form 10-K for the
period ended December 31, 2020 and in its other reports filed with
the U.S. Securities and Exchange Commission. Forward-looking
statements contained in this announcement are based on information
available to Inari as of the date hereof and are made only as of
the date of this release. Inari undertakes no obligation to update
such information except as required under applicable law. These
forward-looking statements should not be relied upon as
representing Inari’s views as of any date subsequent to the date of
this press release. In light of the foregoing, investors are urged
not to rely on any forward-looking statement in reaching any
conclusion or making any investment decision about any securities
of Inari.
Investor Contact:
Westwicke PartnersCaroline CornerPhone
+1-415-202-5678caroline.corner@westwicke.com
INARI MEDICAL,
INC.Condensed Consolidated Statements of
Operations and Comprehensive Income (Loss)(in
thousands, except share and per share
data)(unaudited)
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenue |
$ |
63,453 |
|
|
$ |
25,392 |
|
|
$ |
120,850 |
|
|
$ |
52,345 |
|
Cost of goods sold |
|
4,814 |
|
|
|
3,487 |
|
|
|
9,437 |
|
|
|
6,193 |
|
Gross profit |
|
58,639 |
|
|
|
21,905 |
|
|
|
111,413 |
|
|
|
46,152 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
11,630 |
|
|
|
3,628 |
|
|
|
19,793 |
|
|
|
6,646 |
|
Selling, general and administrative |
|
42,897 |
|
|
|
18,880 |
|
|
|
79,795 |
|
|
|
35,273 |
|
Total operating expenses |
|
54,527 |
|
|
|
22,508 |
|
|
|
99,588 |
|
|
|
41,919 |
|
Income (loss) from
operations |
|
4,112 |
|
|
|
(603 |
) |
|
|
11,825 |
|
|
|
4,233 |
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
35 |
|
|
|
146 |
|
|
|
103 |
|
|
|
201 |
|
Interest expense |
|
(74 |
) |
|
|
(463 |
) |
|
|
(147 |
) |
|
|
(809 |
) |
Change in fair value of warrant liabilities |
|
— |
|
|
|
(2,884 |
) |
|
|
— |
|
|
|
(3,317 |
) |
Other income (expense) |
|
7 |
|
|
|
— |
|
|
|
(34 |
) |
|
|
— |
|
Total other expenses |
|
(32 |
) |
|
|
(3,201 |
) |
|
|
(78 |
) |
|
|
(3,925 |
) |
Income (loss) before income
taxes |
|
4,080 |
|
|
|
(3,804 |
) |
|
|
11,747 |
|
|
|
308 |
|
Provision for income taxes |
|
12 |
|
|
|
— |
|
|
|
210 |
|
|
|
— |
|
Net income (loss) |
$ |
4,068 |
|
|
$ |
(3,804 |
) |
|
$ |
11,537 |
|
|
$ |
308 |
|
Other comprehensive income
(loss) |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
57 |
|
|
|
— |
|
|
|
(123 |
) |
|
|
— |
|
Unrealized (loss) gain on available-for-sale securities |
|
(6 |
) |
|
|
— |
|
|
|
12 |
|
|
|
— |
|
Total other comprehensive income
(loss) |
|
51 |
|
|
|
— |
|
|
|
(111 |
) |
|
|
— |
|
Comprehensive income (loss) |
$ |
4,119 |
|
|
$ |
(3,804 |
) |
|
$ |
11,426 |
|
|
$ |
308 |
|
Net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.08 |
|
|
$ |
(0.16 |
) |
|
$ |
0.23 |
|
|
$ |
0.02 |
|
Diluted |
$ |
0.07 |
|
|
$ |
(0.16 |
) |
|
$ |
0.21 |
|
|
$ |
0.01 |
|
Weighted average common shares
used to compute net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
49,669,652 |
|
|
|
24,295,900 |
|
|
|
49,512,800 |
|
|
|
15,339,755 |
|
Diluted |
|
55,595,016 |
|
|
|
24,295,900 |
|
|
|
55,665,193 |
|
|
|
47,362,292 |
|
INARI MEDICAL,
INC.Condensed Consolidated Balance
Sheets(in thousands, except share data and par
value)(unaudited)
|
June 30,2021 |
|
|
December 31,2020 |
|
Assets |
|
|
|
|
|
Current
assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
91,322 |
|
|
$ |
114,229 |
|
Restricted cash |
|
— |
|
|
|
50 |
|
Short-term investments |
|
84,744 |
|
|
|
49,981 |
|
Accounts receivable, net |
|
31,497 |
|
|
|
28,008 |
|
Inventories |
|
18,112 |
|
|
|
10,597 |
|
Prepaid expenses and other current assets |
|
2,497 |
|
|
|
2,808 |
|
Total current assets |
|
228,172 |
|
|
|
205,673 |
|
Property and equipment,
net |
|
10,827 |
|
|
|
7,498 |
|
Restricted cash |
|
— |
|
|
|
338 |
|
Operating lease right-of-use
assets |
|
868 |
|
|
|
— |
|
Deposits and other assets |
|
13,692 |
|
|
|
583 |
|
Total
assets |
$ |
253,559 |
|
|
$ |
214,092 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Accounts payable |
|
10,319 |
|
|
|
3,047 |
|
Payroll-related accruals |
|
16,041 |
|
|
|
8,198 |
|
Accrued expenses and other current liabilities |
|
4,429 |
|
|
|
2,593 |
|
Operating lease liabilities, current portion |
|
793 |
|
|
|
— |
|
Total current liabilities |
|
31,582 |
|
|
|
13,838 |
|
Operating lease liabilities,
noncurrent portion |
|
156 |
|
|
|
— |
|
Total
liabilities |
|
31,738 |
|
|
|
13,838 |
|
Commitments and
contingencies (Note 7) |
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no
shares issued and outstanding as of June 30, 2021 and December
31, 2020 |
|
— |
|
|
|
— |
|
Common stock, $0.001 par value, 300,000,000 shares authorized as of
June 30, 2021 and December 31, 2020; 49,828,829 and 49,251,614
shares issued and outstanding as of June 30, 2021 and December
31, 2020, respectively |
|
50 |
|
|
|
49 |
|
Additional paid in capital |
|
237,764 |
|
|
|
227,624 |
|
Accumulated other comprehensive (loss) income |
|
(107 |
) |
|
|
4 |
|
Accumulated deficit |
|
(15,886 |
) |
|
|
(27,423 |
) |
Total stockholders'
equity |
|
221,821 |
|
|
|
200,254 |
|
Total liabilities and
stockholders' equity |
$ |
253,559 |
|
|
$ |
214,092 |
|
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