AUSTIN, Texas, Feb. 8, 2021 /PRNewswire/ -- Luminex
Corporation (Nasdaq: LMNX) today announced results for its fourth
quarter and full-year ended December 31,
2020.
All amounts in this release are in conformity with U.S.
generally accepted accounting principles ("GAAP").
CURRENT FINANCIAL HIGHLIGHTS
- Record revenue for the fourth quarter of $111.4M, a 23% increase over Q4 2019, and record
revenue for the year of $417.4M, up
25% vs. 2019, driven primarily by growth associated with the
COVID-19 global pandemic
- Gross margins of 58% for the quarter and 59% for the full year,
an improvement of 3 and 4 percentage points, respectively, vs. Q4
and full-year 2019
- Operating margin of $10.5M or 9%
of revenue for the quarter and $42.4M
or 10% of revenue for the year, an improvement of 250% and 450% vs.
Q4 and full-year 2019
- Record net income for the year of $15.2M, or $0.32
per diluted share, up from net losses of $3.8M, or $0.09 per
diluted share in 2019
CEO COMMENTARY
"I am very pleased with the overall performance of our
diversified business during the past year. We have demonstrated an
ability to adapt and deliver in unprecedented times, and our team
continues to execute on our key role in addressing the demands of
this global pandemic. We delivered record revenue growth,
profitability, and cash flow during 2020 and positioned ourselves
well for continued growth in 2021, and for the foreseeable future
thereafter," said Nachum "Homi" Shamir, Chairman, President and CEO
of Luminex. "Our growth trajectory, expanding product portfolio,
manufacturing capabilities and customer base, together with our
financial strength, will enable us to consider a wide variety
of exciting opportunities. I would like to thank all of our Luminex
employees who have provided outstanding support during this
pandemic that affects us all."
ADDITIONAL HIGHLIGHTS OF THE QUARTER
- Molecular Diagnostics revenue for the quarter of $57.8M, up 49% vs. Q4 2019, and $227.8M for the year, up 67% vs. 2019
- Sold or contracted 449 sample-to-answer systems for the year, a
significant number under reagent rental agreements, up nearly 120%
vs. 2019 placements
- Licensed Technologies Group revenue of $40.0M, up 4% from Q4 2019, but down 2% from
2019, to $146.7M
- Flow Cytometry revenue of $12.0M,
flat vs. Q4 2019, and $35.8M for the
year, down 21% vs. 2019
|
Three Months
Ended
|
|
|
|
|
|
December
31,
|
|
Variance
|
|
2020
|
|
2019
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$
23,758
|
|
$
20,773
|
|
$
2,985
|
|
14%
|
Consumable
sales
|
12,985
|
|
11,723
|
|
1,262
|
|
11%
|
Royalty
revenue
|
13,916
|
|
13,565
|
|
351
|
|
3%
|
Assay
revenue
|
51,300
|
|
36,374
|
|
14,926
|
|
41%
|
Service
revenue
|
6,331
|
|
5,651
|
|
680
|
|
12%
|
Other
revenue
|
3,103
|
|
2,415
|
|
688
|
|
28%
|
|
$
111,393
|
|
$
90,501
|
|
$
20,892
|
|
23%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
December
31,
|
|
Variance
|
|
2020
|
|
2019
|
|
($)
|
|
(%)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
System
sales
|
$
70,764
|
|
$
70,276
|
|
$
488
|
|
1%
|
Consumable
sales
|
48,936
|
|
48,542
|
|
394
|
|
1%
|
Royalty
revenue
|
48,873
|
|
53,562
|
|
(4,689)
|
|
-9%
|
Assay
revenue
|
211,902
|
|
132,028
|
|
79,874
|
|
60%
|
Service
revenue
|
23,341
|
|
22,413
|
|
928
|
|
4%
|
Other
revenue
|
13,580
|
|
7,817
|
|
5,763
|
|
74%
|
|
$
417,396
|
|
$
334,638
|
|
$
82,758
|
|
25%
|
REVENUE GUIDANCE
As of the date hereof, Luminex is providing revenue guidance as
follows:
- Luminex reaffirms its 2021 revenue expectations of
approximately $480 million,
reflecting 15% growth over Luminex's full year 2020, with such
revenue growth driven primarily by significant expansion of
ARIES® assay sales resulting from completion of the
manufacturing line expansion, an expanded customer base, and new
product launches.
CONFERENCE CALL
Management will host a conference call at 4:00 p.m. Central Time / 5:00 p.m. EDT, Monday,
February 8, 2021 to discuss operating highlights and
financial results for the fourth quarter and full-year 2020. The
conference call will be webcast live and may be accessed at Luminex
Corporation's website at investor.luminexcorp.com. Analysts may
participate on the conference call by dialing (877) 930-7053 (U.S.)
or (253) 336-7290 (outside the U.S.). The access code is 4492199.
The webcast will be archived for six months on our website using
the 'replay' link.
ABOUT LUMINEX CORPORATION
At Luminex, our mission is to empower labs to obtain reliable,
timely, and actionable answers, ultimately advancing health. We
offer a wide range of solutions applicable in diverse markets
including clinical diagnostics, pharmaceutical drug discovery,
biomedical research, genomic and proteomic research, biodefense
research, and food safety. We accelerate reliable answers while
simplifying complexity and deliver certainty with a seamless
experience. To learn more about Luminex, please visit us at
luminexcorp.com.
USE OF FORWARD-LOOKING STATEMENTS
Statements made in this release that express Luminex's or
management's intentions, plans, beliefs, expectations, or
predictions of future events are forward-looking statements.
Forward-looking statements in this release include statements
regarding expected revenue and cost savings, projected 2021
performance, including revenue guidance, and expectations regarding
Luminex's product development, manufacturing line expansion and
product growth and the continued impact of the COVID-19 pandemic on
Luminex's operations and financial results. The words "expect,"
"anticipate," "will," "should" and similar expressions are
intended to further identify such forward-looking statements for
purposes of the Private Securities Litigation Reform Act of 1995.
It is important to note that Luminex's actual results or
performance could differ materially from those anticipated or
projected in such forward-looking statements. Factors that could
cause Luminex's actual results or performance to differ materially
include risks and uncertainties relating to, among others, negative
effects from the worldwide COVID-19 pandemic (including but not
limited to the general economic downturn related to such pandemic,
travel restrictions related thereto, business closures that may
affect our supply chain or our ability to install instruments, and
delays in U.S. Food and Drug Administration (the "FDA")
clearances related to adjustments in the agency's approval
priorities in response to the pandemic), the warning letter (the
"Warning Letter") Luminex received from the FDA on June 26, 2020 relating to the operations of
Luminex's Austin, TX and
Northbrook, IL facilities and
Luminex's VERIGENE Processor SP System, as previously disclosed in
Luminex's Current Report on Form 8-K filed with the U.S. Securities
and Exchange Commission on June 29,
2020, including the outcome of Luminex's efforts to
remediate the FDA's observations, the possible resolution of the
issues identified in the Warning Letter and any further regulatory
and enforcement actions that may initiated by the FDA with respect
thereto, concentration of Luminex's revenue in a limited number of
direct customers and strategic partners, some of which may be
experiencing decreased demand for their products utilizing or
incorporating Luminex's technology, budget or finance constraints
in the current economic environment, or periodic variability in
their purchasing patterns or practices as a result of
internal resource planning challenges; market demand and acceptance
of Luminex's products and technologies, including
ARIES®, MultiCode®, xMAP®,
xMAP® INTELLIFLEX, VERIGENE®,
VERIGENE® II, Guava®, Muse®,
Amnis® and NxTAG® products; Luminex's ability
to scale manufacturing operations and manage operating expenses,
gross margins and inventory levels; Luminex's ability to obtain and
enforce intellectual property protections on Luminex's products and
technologies; the impact on Luminex's growth and future results of
operations with respect to the loss of the LabCorp women's health
business; Luminex's ability to successfully launch new products and
complete new manufacturing lines in a timely manner; dependence on
strategic partners for development, commercialization and
distribution of products; risks and uncertainties associated with
implementing Luminex's acquisition strategy, including challenges
in identifying acquisition targets, and obtaining financing on
acceptable terms; Luminex's ability to integrate acquired companies
or selected assets into Luminex's consolidated business operations,
and its ability to fully realize the benefits of Luminex's
acquisitions; the timing of and process for regulatory approvals;
competition and competitive technologies utilized by Luminex's
competitors; fluctuations in quarterly results due to a lengthy and
unpredictable sales cycle; fluctuations in bulk purchases of
consumables; fluctuations in product mix, and the seasonal nature
of some of Luminex's assay products; Luminex's ability to comply
with applicable laws, regulations, policies and procedures; the
impact of the ongoing uncertainty in global finance markets and
changes in governmental and governmental agency funding, including
effects on the capital spending policies of Luminex's partners and
end users and their ability to finance purchases of Luminex's
products; changes in principal members of Luminex's management
staff; potential shortages, or increases in costs, of components or
other disruptions to Luminex's manufacturing operations; Luminex's
increasing dependency on information technology to improve the
effectiveness of Luminex's operations and to monitor financial
accuracy and efficiency, including risks associated with potential
attacks on or breaches of Luminex's information technology systems
and any resultant harm to Luminex's ability to protect its
intellectual property and manufacture, sell and support its
products; the implementation, including any modification, of
Luminex's strategic operating plans; the uncertainty
regarding the outcome or expense of any litigation brought against
or initiated by Luminex; risks relating to Luminex's foreign
operations, including fluctuations in exchange rates, tariffs,
customs and other barriers to importing/exporting materials and
products in a cost effective and timely manner; difficulties in
accounts receivable collections; Luminex's ability to monitor and
comply with foreign and international laws and treaties; Luminex's
ability to comply with changes in international taxation policies;
budget or finance constraints of Luminex's customers and partners
in the current economic environment, or periodic variability in
their purchasing patterns or practices as a result of material
resource planning challenges; and Luminex's reliance on third party
distributors for distribution of specific Luminex-developed and
manufactured assay products, as well as the risks discussed under
the heading "Risk Factors" in Luminex's Annual Reports on Forms
10-K and Quarterly Reports on Form 10-Q, as filed with the
Securities and Exchange Commission.
The forward-looking statements, including the financial
guidance and 2021 outlooks, contained herein represent the judgment
of Luminex as of the date of this press release, and Luminex
expressly disclaims any intent, obligation or undertaking to
release publicly any updates or revisions to any forward-looking
statements to reflect any change in Luminex's expectations with
regard thereto or any change in events, conditions or circumstances
on which any such statements are based.
Contacts
|
|
|
Harriss Currie
Senior Vice President,
Chief Financial Officer
hcurrie@luminexcorp.com 512-219-8020
|
Carla
Stanaford Investor
Relations
cstanaford@luminexcorp.com
937-469-2120
|
Media
Contact: Michele
Parisi Bioscribe
mparisi@bioscribe.com
925-864-5028
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
309,407
|
|
$
59,173
|
Accounts receivable,
net
|
66,963
|
|
55,815
|
Inventories,
net
|
123,134
|
|
77,084
|
Prepaids and
other
|
9,527
|
|
10,398
|
Total current
assets
|
509,031
|
|
202,470
|
Property and
equipment, net
|
64,146
|
|
65,515
|
Intangible assets,
net
|
78,796
|
|
90,336
|
Deferred income
taxes
|
21,077
|
|
27,702
|
Goodwill
|
118,145
|
|
118,145
|
Right of use
assets
|
17,768
|
|
20,439
|
Other
|
16,500
|
|
19,122
|
Total
assets
|
$
825,463
|
|
$
543,729
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
21,049
|
|
$
17,983
|
Accrued
liabilities
|
56,365
|
|
31,872
|
Deferred revenue -
current portion
|
10,047
|
|
8,214
|
Total current
liabilities
|
87,461
|
|
58,069
|
Deferred
revenue
|
1,658
|
|
1,633
|
Lease
liabilities
|
13,366
|
|
17,182
|
Long-term
debt
|
203,136
|
|
-
|
Other long-term
liabilities
|
2,131
|
|
1,985
|
Total
liabilities
|
307,752
|
|
78,869
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
45
|
|
44
|
Additional paid-in
capital
|
434,021
|
|
380,304
|
Accumulated other
comprehensive loss
|
(142)
|
|
(1,380)
|
Retained
earnings
|
83,787
|
|
85,892
|
Total stockholders'
equity
|
517,711
|
|
464,860
|
Total liabilities and
stockholders' equity
|
$
825,463
|
|
$
543,729
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
111,393
|
|
$
90,501
|
|
$
417,396
|
|
$
334,638
|
Cost of
revenue
|
46,949
|
|
40,636
|
|
169,544
|
|
151,899
|
Gross
profit
|
64,444
|
|
49,865
|
|
247,852
|
|
182,739
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
13,796
|
|
12,933
|
|
53,651
|
|
56,228
|
Selling, general and
administrative
|
37,229
|
|
31,098
|
|
140,216
|
|
127,183
|
Amortization of
acquired intangible assets
|
2,919
|
|
2,851
|
|
11,542
|
|
11,407
|
Total operating
expenses
|
53,944
|
|
46,882
|
|
205,409
|
|
194,818
|
Income (loss) from
operations
|
10,500
|
|
2,983
|
|
42,443
|
|
(12,079)
|
Interest and other
expense, net
|
(5,023)
|
|
3,196
|
|
(11,912)
|
|
3,100
|
Loss from equity
method investment
|
(241)
|
|
(523)
|
|
(1,591)
|
|
(523)
|
Income (loss) before
income taxes
|
5,236
|
|
5,656
|
|
28,940
|
|
(9,502)
|
Income tax (expense)
benefit
|
(4,997)
|
|
(2,273)
|
|
(13,770)
|
|
5,664
|
Net income
(loss)
|
$
239
|
|
$
3,383
|
|
$
15,170
|
|
$
(3,838)
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common stockholders
|
|
|
|
|
|
|
|
Basic
|
$
236
|
|
$
3,322
|
|
$
14,873
|
|
$
(3,773)
|
Diluted
|
$
235
|
|
$
3,322
|
|
$
14,872
|
|
$
(3,775)
|
Net income (loss) per
share attributable to common stockholders
|
|
|
|
|
|
|
Basic
|
$
0.01
|
|
$
0.08
|
|
$
0.33
|
|
$
(0.09)
|
Diluted
|
$
0.01
|
|
$
0.07
|
|
$
0.32
|
|
$
(0.09)
|
Weighted-average
shares used in computing net income (loss) per share
|
|
|
|
|
|
Basic
|
45,640
|
|
44,263
|
|
45,102
|
|
44,148
|
Diluted
|
45,985
|
|
44,503
|
|
45,820
|
|
44,148
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
0.10
|
|
$
0.09
|
|
$
0.37
|
|
$
0.30
|
LUMINEX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
239
|
|
$
3,383
|
|
$
15,170
|
|
$
(3,838)
|
Adjustments to
reconcile net income (loss) to net
cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
7,712
|
|
7,358
|
|
30,483
|
|
28,529
|
Amortization of debt
issuance costs
|
2,623
|
|
-
|
|
6,533
|
|
-
|
Stock-based
compensation
|
4,070
|
|
3,554
|
|
14,851
|
|
13,198
|
Deferred income tax
(benefit) expense
|
215
|
|
3,526
|
|
6,593
|
|
(7,444)
|
(Gain) loss on sale
or disposal of assets
|
505
|
|
409
|
|
851
|
|
641
|
(Earnings) loss on
equity method investment (1)
|
241
|
|
(2,719)
|
|
1,592
|
|
(2,719)
|
Other
|
1,216
|
|
203
|
|
2,087
|
|
(329)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(6,503)
|
|
(10,004)
|
|
(11,139)
|
|
(2,440)
|
Inventories,
net
|
(13,313)
|
|
(956)
|
|
(45,973)
|
|
(13,559)
|
Other
assets
|
4,499
|
|
819
|
|
4,125
|
|
4,789
|
Accounts
payable
|
3,505
|
|
(1,170)
|
|
3,184
|
|
3,370
|
Accrued
liabilities
|
6,359
|
|
1,326
|
|
19,686
|
|
(5,630)
|
Deferred
revenue
|
(13)
|
|
(421)
|
|
1,888
|
|
(1,031)
|
Net cash provided by
(used in) operating activities
|
11,355
|
|
5,308
|
|
49,931
|
|
13,537
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
(6,296)
|
|
(3,133)
|
|
(17,910)
|
|
(16,249)
|
Proceeds from
business acquisition consideration,
net of cash acquired
|
-
|
|
-
|
|
-
|
|
1,916
|
Purchase of equity
method investment
|
-
|
|
(6,980)
|
|
|
|
(6,980)
|
Proceeds from cost
method investment
|
-
|
|
735
|
|
-
|
|
734
|
Acquired technology
rights
|
-
|
|
(40)
|
|
22
|
|
(40)
|
Net cash used in
investing activities
|
(6,296)
|
|
(9,418)
|
|
(17,888)
|
|
(20,619)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from
issuance of convertible note, net of
issuance costs
|
-
|
|
-
|
|
252,247
|
|
-
|
Purchase of
convertible notes bond hedge
|
-
|
|
-
|
|
(54,626)
|
|
-
|
Proceeds from
issuance of warrants
|
-
|
|
-
|
|
19,968
|
|
-
|
Proceeds from
issuance of common stock
|
640
|
|
1,269
|
|
20,435
|
|
3,750
|
Shares surrendered
for tax withholding
|
(8)
|
|
(6)
|
|
(2,373)
|
|
(2,095)
|
Dividends
paid
|
(4,187)
|
|
(4,055)
|
|
(16,485)
|
|
(12,153)
|
Net cash provided by
(used in) financing activities
|
(3,555)
|
|
(2,792)
|
|
219,166
|
|
(10,498)
|
Effect of foreign
currency exchange rate on cash
|
(551)
|
|
24
|
|
(975)
|
|
312
|
Change in cash and
cash equivalents
|
953
|
|
(6,878)
|
|
250,234
|
|
(17,268)
|
Cash and cash
equivalents, beginning of period
|
308,454
|
|
66,051
|
|
59,173
|
|
76,441
|
Cash and cash
equivalents, end of period
|
$
309,407
|
|
$
59,173
|
|
$
309,407
|
|
$
59,173
|
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SOURCE Luminex Corporation