ANDOVER,
Mass., April 30, 2024 /PRNewswire/ -- TransMedics
Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology
company that is transforming organ transplant therapy for patients
with end-stage lung, heart, and liver failure, today reported
financial results for the quarter ended March 31, 2024.
Recent Highlights
- Net revenue of $96.9 million in
the first quarter of 2024, a 133% increase compared to the first
quarter of 2023
- Generated net income of $12.2
million or $0.35 per fully
diluted share in the first quarter of 2024
- OCS Heart and OCS Lung and associated new clinical programs
were highlighted across several scientific presentations at
International Society of Heart and Lung Transplantation (ISHLT)
annual meeting in April 2024
"We are pleased with our first quarter results as we
simultaneously drove continued revenue growth, expanded our
infrastructure, and achieved profitability," said Waleed Hassanein, MD, President and Chief
Executive Officer. "2024 represents another catalyst heavy year for
TransMedics, and we are focused on executing across the board to
drive further growth for our business and the overall transplant
volumes to help patients in need for organ transplants."
First Quarter 2024 Financial Results
Total revenue for the first quarter of 2024 was $96.9 million, a 133% increase compared to
$41.6 million in the first quarter of
2023. The increase was due primarily to the increase in utilization
of the Organ Care System ("OCS™") across all three organs through
the National OCS Program ("NOP") as well as additional revenue
generated by the addition of TransMedics logistics services.
Gross margin for the first quarter of 2024 was 62%, compared to
69% in the first quarter of 2023, and compared to 59% in the
fourth quarter of 2023. The change from prior year is a result of a
higher proportion of service revenue.
Operating expenses for the first quarter of 2024 were
$47.5 million, compared to
$30.9 million in the first
quarter of 2023. The increase in operating expense was driven
primarily by increased research and development investment as well
as investment throughout the organization to support the growth of
the company. First quarter operating expenses in 2024 included
$6.5 million of stock compensation
expense compared to $3.9 million
of stock compensation expense in the first quarter of 2023.
Net income for the first quarter of 2024 was $12.2 million, 12.6% of revenue, compared to
a net loss of $2.6 million in the
first quarter of 2023.
Cash was $350.2 million as of
March 31, 2024.
2024 Financial Outlook
TransMedics is raising its
full year 2024 revenue guidance to be in the range of $390 million to $400
million, which represents 61% to 66% growth compared to the
company's prior year revenue. TransMedics' prior 2024 revenue
guidance was $360 million to
$370 million.
Webcast and Conference Call Details
The TransMedics
management team will host a conference call beginning at
4:30 p.m. ET / 1:30 p.m. PT on April 30,
2024. A live and archived webcast of the event will be
available on the "Investors" section of the TransMedics website at
www.transmedics.com.
About TransMedics Group, Inc.
TransMedics is the
world's leader in portable extracorporeal warm perfusion and
assessment of donor organs for transplantation. Headquartered in
Andover, Massachusetts, the
company was founded to address the unmet need for more and better
organs for transplantation and has developed technologies to
preserve organ quality, assess organ viability prior to transplant,
and potentially increase the utilization of donor organs for the
treatment of end-stage heart, lung, and liver failure.
Forward-Looking Statements
This press release contains
forward-looking statements with respect to, among other things, our
full-year guidance, our OCS Heart and Lung products and associated
new clinical programs, and statements about our operations,
financial position, and business plans. For this purpose, all
statements other than statements of historical facts are
forward-looking statements. The words "believe," "may," "will,"
"estimate," "continue," "anticipate," "intend," "expect," "should,"
"could," "target," "predict," "seek" and similar expressions are
intended to identify forward-looking statements. These
forward-looking statements are subject to a number of risks and
uncertainties. Our management cannot predict all risks, nor can we
assess the impact of all factors or the extent to which any factor,
or combination of factors, may cause actual results to differ
materially from those contained in or implied by any
forward-looking statements we may make. In light of these risks and
uncertainties, the forward-looking events and circumstances
discussed in this press release may not occur and actual results
could differ materially and adversely from those anticipated in or
implied by the forward-looking statements. Some of the key factors
that could cause actual results to differ include: that we continue
to incur losses; our ability to attract and retain key personnel;
our existing and any future indebtedness, including our ability to
comply with affirmative and negative covenants under our credit
agreement to which we will remain subject until maturity; the
fluctuation of our financial results from quarter to quarter; our
need to raise additional funding and our ability to obtain it on
favorable terms, or at all; our ability to use net operating losses
and research and development credit carryforwards; our dependence
on the success of the Organ Care System or OCS; our ability to
expand access to the OCS through our National OCS Program or NOP;
our ability to scale our manufacturing and sterilization
capabilities to meet increasing demand for our products; the rate
and degree of market acceptance of the OCS; our ability to educate
patients, surgeons, transplant centers and private payors of
benefits offered by the OCS; our ability to improve the OCS
platform and develop the next generation of the OCS products; our
dependence on a limited number of customers for a significant
portion of our revenue; our ability to maintain regulatory
approvals or clearances for our OCS products in the United States, the European Union, and
other select jurisdictions worldwide; our ability to adequately
respond to Food and Drug Administration or FDA, or other competent
authorities, follow-up inquiries in a timely manner; the
performance of our third-party suppliers and manufacturers; our use
of third parties to transport donor organs and medical personnel
for our NOP and our ability to maintain and grow our logistics
capabilities to support our NOP to reduce dependence on third party
transportation, including by means of the acquisition of fixed-wing
aircraft for our aviation transportation services or other
acquisitions, joint ventures or strategic investments; our ability
to maintain Federal Aviation Administration or FAA or other
regulatory licenses or approvals for our aircraft transportation
services; price increases of the components of our products and
maintenance, parts and fuel for our aircraft; the timing or results
of post-approval studies and any clinical trials for the OCS; our
manufacturing, sales, marketing and clinical support capabilities
and strategy; attacks against our information technology
infrastructure; the economic, political and other
risks associated with our foreign operations; our ability to
protect, defend, maintain and enforce our intellectual property
rights relating to the OCS and avoid allegations that our products
infringe, misappropriate or otherwise violate the intellectual
property rights of third parties; the pricing of the OCS, as well
as the reimbursement coverage for the OCS in the United States and internationally;
regulatory developments in the United
States, European Union and other jurisdictions; the extent
and success of competing products that are or may become available;
our ability to service our 1.50% convertible senior notes, due
2028; the impact of any product recalls or improper use of our
products; our estimates regarding revenues, expenses and needs for
additional financing; and other factors that may be described in
our filings with the Securities and Exchange Commission (the
"SEC"). Additional information will be made available in our annual
and quarterly reports and other filings that we make with the SEC.
The forward-looking statements in this press release speak only as
of the date of this press release. Factors or events that could
cause our actual results to differ may emerge from time to time,
and we are not able to predict all of them. We undertake no
obligation to update any forward-looking statement, whether as a
result of new information, future developments or otherwise, except
as may be required by applicable law.
Investor Contact:
Brian
Johnston
332-895-3222
Investors@transmedics.com
TransMedics Group, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
2023
|
|
Revenue:
|
|
|
|
|
|
Net product
revenue
|
|
$
61,325
|
|
$
33,993
|
|
Service
revenue
|
|
35,525
|
|
7,561
|
|
Total
revenue
|
|
96,850
|
|
41,554
|
|
Cost of
revenue:
|
|
|
|
|
|
Cost of net product
revenue
|
|
14,084
|
|
7,306
|
|
Cost of service
revenue
|
|
22,804
|
|
5,482
|
|
Total cost of
revenue
|
|
36,888
|
|
12,788
|
|
Gross profit
|
|
59,962
|
|
28,766
|
|
|
|
|
|
|
|
Gross Margin
|
|
62 %
|
|
69 %
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research, development
and clinical trials
|
|
11,380
|
|
5,871
|
|
Selling, general and
administrative
|
|
36,161
|
|
24,984
|
|
Total operating
expenses
|
|
47,541
|
|
30,855
|
|
Income (loss) from
operations
|
|
12,421
|
|
(2,089)
|
|
Other income
(expense):
|
|
|
|
|
|
Interest
expense
|
|
(3,598)
|
|
(1,091)
|
|
Interest income and
other income (expense)
|
|
3,570
|
|
555
|
|
Total other expense, net
|
|
(28)
|
|
(536)
|
|
Income (loss) before
income taxes
|
|
12,393
|
|
(2,625)
|
|
Provision for income
taxes
|
|
(196)
|
|
(11)
|
|
Net income
(loss)
|
|
$
12,197
|
|
$
(2,636)
|
|
Net income (loss) per
share:
|
|
|
|
|
|
Basic
|
|
$
0.37
|
|
$
(0.08)
|
|
Diluted
|
|
$
0.35
|
|
$
(0.08)
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
Basic
|
|
32,760,190
|
|
32,260,267
|
|
Diluted
|
|
34,678,895
|
|
32,260,267
|
|
TransMedics Group, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
|
|
|
|
|
|
March 31,
2024
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash
|
|
$
350,217
|
|
$
394,812
|
|
Accounts
receivable
|
|
81,942
|
|
63,576
|
|
Inventory
|
|
48,541
|
|
44,235
|
|
Prepaid expenses and
other current assets
|
|
7,606
|
|
8,031
|
|
Total current assets
|
|
488,306
|
|
510,654
|
|
Property, plant and
equipment, net
|
|
214,421
|
|
173,941
|
|
Operating lease
right-of-use assets
|
|
6,226
|
|
6,546
|
|
Restricted
cash
|
|
500
|
|
500
|
|
Goodwill
|
|
11,990
|
|
11,990
|
|
Acquired intangible
assets, net
|
|
2,303
|
|
2,354
|
|
Other non-current
assets
|
|
85
|
|
62
|
|
Total assets
|
|
$
723,831
|
|
$
706,047
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
9,225
|
|
$
12,717
|
|
Accrued expenses and
other current liabilities
|
|
36,852
|
|
38,221
|
|
Deferred
revenue
|
|
2,060
|
|
1,961
|
|
Operating lease
liabilities
|
|
2,086
|
|
2,035
|
|
Total current
liabilities
|
|
50,223
|
|
54,934
|
|
Convertible senior
notes, net
|
|
447,835
|
|
447,140
|
|
Long-term debt, net of
discount and current portion
|
|
59,141
|
|
59,064
|
|
Operating lease
liabilities, net of current portion
|
|
7,161
|
|
7,707
|
|
Total
liabilities
|
|
564,360
|
|
568,845
|
|
Total stockholders' equity
|
|
159,471
|
|
137,202
|
|
Total liabilities and stockholders' equity
|
|
$
723,831
|
|
$
706,047
|
|
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SOURCE TransMedics Group, Inc.