Restoration Robotics, Inc. (NASDAQ:HAIR), announced today
financial results for the first quarter ended March 31, 2018.
First Quarter and Recent Highlights
- Received U.S. FDA 510(k) clearance for implantation
functionality
- Revenue of $5.0 million, compared to $5.5 million in 2017
- Sold 8 ARTAS® Robotic Hair Restoration Systems
- Appointed Chris Aronson, Vice President, Sales, effective
February 1, 2018
- Announced the appointment of aesthetics veteran Keith Sullivan
to the Board of Directors, effective July 1, 2018
- Finalized a $20 million loan and security agreement on May 10,
2018
Ryan Rhodes, President and Chief Executive Officer of
Restoration Robotics, said, “In the first quarter we continued to
position the Company for sustained sales growth especially
following our receipt of FDA 510(k) clearance for ARTAS
implantation functionality. This allows us to further extend ARTAS’
leadership position in the field of robotic hair restoration by
rounding out our offering to address all three of the most
difficult, repetitive tasks in hair restoration: harvesting, site
making, and implantation. We strengthened and expanded our U.S.
Sales leadership, with the appointment of Chris Aronson as Vice
President of Sales. We also grew our team of U.S. regional sales
managers responsible for capital sales to seven professionals, as
we execute a more U.S. centric strategy in preparation for the
launch of the implantation functionality expected before the end of
2018.”
Mr. Rhodes continued, “In the first quarter we sold eight ARTAS
Systems while continuing to drive procedure-based revenue through
the installed base. As of March 31, 2018 we have sold a
cumulative total of 261 ARTAS systems worldwide, providing a strong
base for increased procedure volume as we continue to drive growth
and penetrate the market.”
Mr. Rhodes added, “We are also very excited to welcome Keith
Sullivan to our board of directors, effective July 1, 2018. I am
confident that Keith’s deep commercial and operational experience
within the aesthetics space as Interim General Manager of miraDry®
at Sientra® and as former Chief Commercial Officer and President,
North America at ZELTIQ® Aesthetics, will prove to be invaluable as
we further penetrate our substantial addressable
market.”
First Quarter 2018 Financial ResultsRevenue in
the first quarter of 2018 was $5.0 million, a 9% decrease from $5.5
million in the first quarter of 2017. The decline was driven by a
decrease in system revenue, partially offset by a year over year
increase in procedure-based fees.
Gross margin for the first quarter was 36% compared to 44% in
the first quarter of 2017. The decrease in gross margin was
primarily related to a non-recurring charge for excess components
procured in connection with existing ARTAS technology. This was
partially offset by product cost efficiencies and higher
procedure-based revenue which generally provides a higher gross
margin.
Operating expenses in the first quarter of 2018 were $8.9
million, a 30% increase from the $6.8 million in the first quarter
of 2017. The increase reflects investments in the company's sales
and marketing initiatives along with higher head count and other
costs related to being a public company.
Net loss for the first quarter of 2018 was $(7.4) million or
$(0.26) per share, compared with a net loss of $(5.2) million, or
$(0.32) per share, for the first quarter of 2017.
Total cash and cash equivalents were $16.5 million as of March
31, 2018 compared to $23.5 million as of December 31, 2017.
Cash and cash equivalents as of March 31, 2018 do not include
proceeds from our new debt facility finalized on May 10, 2018. The
refinancing of the Company’s debt provided an incremental $9.3
million of cash net of the repayment of its previous loan facility
and costs related to the new facility.
Conference Call Information
Restoration Robotics will hold a conference call on, Monday, May
14, 2018, at 4:30pm ET to discuss the results. The dial-in numbers
are (866) 916-2179 for domestic callers and (210) 874-7716 for
international callers. The conference ID is 7886649. A live
webcast of the conference call will be available on the investor
relations section of the Company’s website.
A replay of the call will be available starting on May 14, 2018
through May 21, 2018. To access the replay, dial (855) 859-2056 for
domestic callers and (404) 537-3406 for international callers and
enter access code 7886649. The webcast will be available in the
investor relations section of the Company’s website for 90 days
following the completion of the call.
About Restoration RoboticsRestoration Robotics,
Inc., is a medical device company developing and commercializing
the ARTAS™ Robotic Hair Restoration System. We believe the ARTAS
System is the first and only physician-assisted system to dissect,
and assist in the harvesting of, follicular units directly from the
scalp and create recipient implant sites using proprietary
algorithms. The Company has unique expertise in machine vision,
image guidance, visual servoing and robotics, as well as developing
intuitive interfaces to manage these technologies.
Forward-Looking Statements
Statements made in this press release and the earnings call
referencing the press release that are not statements of historical
fact are forward-looking statements. Forward-looking statements are
subject to the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
commonly identified by words such as “would,” “may,” “expects,”
“believes,” “plans,” “intends,” “projects” and other terms with
similar meaning. Investors are cautioned that the forward-looking
statements in this document are based on current beliefs,
assumptions and expectations, speak only as of the date of this
document and involve risks and uncertainties that could cause
actual results to differ materially from current expectations. Such
statements, including our expectations as to our cash runway and
timing and expectations for the launch of implantation
functionality, are subject to certain known and unknown risks and
uncertainties, many of which are difficult to predict and generally
beyond our control, that could cause actual results and other
future events to differ materially from those expressed in, or
implied or projected by, the forward-looking information and
statements. Material factors that could cause actual results to
differ materially from current expectations include, without
limitation, the following: whether there is growth in demand for
our ARTAS System for use in harvesting hair follicles for
transplant; the progress of our commercialization, marketing and
manufacturing capabilities; the continuing productivity and
effectiveness of our commercial infrastructure and salesforce; our
financial performance; our ability to establish collaborations
and/or partnerships; the timing or likelihood of regulatory filings
and approvals for ARTAS for use in transplanting of hair follicles,
and expanding the approved use of ARTAS for use in dissecting hair
follicles to include women and individuals without straight brown
or black hair; our expectations regarding the potential market size
and the size of the patient populations for ARTAS being accurate;
whether we are effective in the pricing of ARTAS; whether we are
successful in the implementation of our business model and
strategic plans for our business and technology; the scope of
protection we are able to establish and maintain for intellectual
property rights covering ARTAS, along with any product
enhancements; our ability to accurately estimate our expenses,
future revenue, capital requirements, our needs for additional
financing and our ability to obtain additional capital; and
developments relating to our competitors and our industry,
including competing therapies and procedures. These factors,
together with those that are described in greater detail in our
Annual Report on Form 10-K filed on March 5, 2018,
as well as any reports that we may file with the SEC in the future,
including our Quarterly Report for the three months ended March 31,
2018 which we expect to file on May 14, 2018, may cause our actual
results, performance or achievements to differ materially and
adversely from those anticipated or implied by our forward-looking
statements. We expressly disclaim any obligation, except as
required by law, or undertaking to update or revise any such
forward-looking statements. Our results for the quarter ended
March 31, 2018 are not necessarily indicative of our operating
results for the full year 2018 or any other future periods.
Media ContactLisa MarkleDirector of
MarketingRestoration Robotics,
Inc.+1-408-883-6764lisam@restorationrobotics.com
Investor Contact The Ruth Group Lee Roth
& Brian Johnstonir@restorationrobotics.com
646-536-7000
|
RESTORATION ROBOTICS, INC. |
CONSOLIDATED STATEMENT OF
OPERATIONS |
|
(in thousands, except share and per share data) |
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
|
2018 |
|
|
|
2017 |
|
Revenue, net |
|
$ |
5,005 |
|
|
$ |
5,475 |
|
Cost of revenue |
|
|
3,185 |
|
|
|
3,091 |
|
Gross profit |
|
|
1,820 |
|
|
|
2,384 |
|
Gross Margin |
|
|
36 |
% |
|
|
44 |
% |
Operating
expenses: |
|
|
|
|
Sales and
marketing |
|
|
4,384 |
|
|
|
3,966 |
|
Research
and development |
|
|
2,125 |
|
|
|
1,916 |
|
General
and administrative |
|
|
2,351 |
|
|
|
926 |
|
Total operating
expenses |
|
|
8,860 |
|
|
|
6,808 |
|
Loss from
operations |
|
|
(7,040 |
) |
|
|
(4,424 |
) |
Other expense,
net: |
|
|
|
|
Interest
expense |
|
|
(358 |
) |
|
|
(586 |
) |
Other
expense, net |
|
|
(20 |
) |
|
|
(149 |
) |
Total other expense,
net |
|
|
(378 |
) |
|
|
(735 |
) |
Net loss before
provision for income taxes |
|
|
(7,418 |
) |
|
|
(5,159 |
) |
Provision for income
taxes |
|
|
13 |
|
|
|
16 |
|
Net loss attributable
to common stockholders |
|
$ |
(7,431 |
) |
|
$ |
(5,175 |
) |
Net loss per share
attributable to common stockholders, basic and diluted |
|
$ |
(0.26 |
) |
|
$ |
(0.32 |
) |
Weighted-average shares
used in computing net loss per share attributable to common
stockholders, basic and diluted |
|
|
28,962,269 |
|
|
|
16,183,178 |
|
|
RESTORATION ROBOTICS, INC. |
CONSOLIDATED BALANCE SHEETS |
(in thousands, except share and per share data) |
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
ASSETS |
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
16,530 |
|
|
$ |
23,545 |
|
|
Accounts
receivable, net |
|
|
4,478 |
|
|
|
3,864 |
|
|
Inventory |
|
|
2,222 |
|
|
|
2,761 |
|
|
Prepaid
expenses and other current assets |
|
|
1,233 |
|
|
|
1,562 |
|
|
Total
current assets |
|
|
24,463 |
|
|
|
31,732 |
|
|
Property and equipment,
net |
|
|
1,217 |
|
|
|
1,138 |
|
|
Restricted cash |
|
|
100 |
|
|
|
100 |
|
|
Other assets |
|
|
100 |
|
|
|
|
TOTAL ASSETS |
|
$ |
25,880 |
|
|
$ |
32,970 |
|
|
LIABILITIES,
CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT |
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
Accounts
payable |
|
$ |
2,296 |
|
|
$ |
2,044 |
|
|
Accrued
compensation |
|
|
1,648 |
|
|
|
1,630 |
|
|
Other
accrued liabilities |
|
|
2,199 |
|
|
|
1,125 |
|
|
Deferred
revenue |
|
|
1,884 |
|
|
|
1,517 |
|
|
Current
portion of long-term debt, net of discount of $199 and $270 as of
March 31, 2018 and December 31, 2017 |
|
|
7,801 |
|
|
|
7,730 |
|
|
Total
current liabilities |
|
|
15,828 |
|
|
|
14,046 |
|
|
Other long-term
liabilities |
|
|
670 |
|
|
|
459 |
|
|
Long-term debt, net of
discount of $6 and $29 as of March 31, 2018 and December 31,
2017 |
|
|
3,294 |
|
|
|
5,271 |
|
|
TOTAL LIABILITIES |
|
|
19,792 |
|
|
|
19,776 |
|
|
Commitments and
Contingencies |
|
|
|
|
|
Convertible preferred
stock, $0.0001 par value; 236,154,444 shares authorized and no
shares issued and outstanding as of March 31, 2018 and
December 31, 2017 |
|
|
— |
|
|
|
— |
|
|
STOCKHOLDERS’
DEFICIT: |
|
|
|
|
|
Common stock, $0.0001
par value: 350,490,000 shares authorized as of March 31, 2018 and
December 31, 2017; 29,046,156 and 28,940,282 shares issued
and outstanding as of March 31,2018 and December 31,
2017 |
|
|
3 |
|
|
|
3 |
|
|
Additional paid-in
capital |
|
|
178,078 |
|
|
|
177,757 |
|
|
Accumulated other
comprehensive loss |
|
|
(75 |
) |
|
|
(79 |
) |
|
Accumulated
deficit |
|
|
(171,918 |
) |
|
|
(164,487 |
) |
|
TOTAL STOCKHOLDERS’
DEFICIT |
|
|
6,088 |
|
|
|
13,194 |
|
|
TOTAL LIABILITIES,
CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT |
|
$ |
25,880 |
|
|
$ |
32,970 |
|
|
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