HAYWARD, Calif., Feb. 19, 2013 /PRNewswire/ -- Solta Medical,
Inc. (NASDAQ: SLTM), a global leader in the medical aesthetics
market, today announced results for the fourth quarter ended
December 31, 2012. Revenue for the
fourth quarter was $39.8 million, an
increase of $6.6 million, or 20%, as
compared to the fourth quarter of 2011. Revenue from Liposonix, the
Company's non-invasive fat reduction system, was $7.6 million, which was generated from shipments
of 90 systems and associated consumables. For the full year 2012,
revenue of $144.5 million grew
year-over-year by $28.6 million or
25%.
"The fourth quarter provided a strong ending to a productive
year for Solta," said Stephen J.
Fanning, Chairman, President and CEO of Solta. "We
completed the integration of the Liposonix acquisition ahead of
plan and the first year of the Liposonix commercial launch exceeded
our expectations. During the year, we shipped approximately 360
Liposonix systems, generating $32
million in revenue. We also generated double digit revenue
growth from our Clear + Brilliant brand. We continued to execute
well, extending our broad product portfolio through a large
distribution network and focusing on recurring revenue. The
increase in the gross margin, and our delivery of positive non-GAAP
EBITDA in the fourth quarter and in every quarter over the past
three years demonstrate the leverage in our business model. We also
generated cash from operations of $1.4
million in the fourth quarter and $4.4 million for the full year ended 2012, and
finished the year with $38 million in
cash on the balance sheet."
Fourth Quarter Financial Highlights
Total product revenue from treatment tips and consumables for
the quarter was $18.8 million, a
year-over-year increase of $2.9
million or 18%, and represented 47% of total revenue.
Revenue from North America and
international markets rose year-over-year by 17% and 23%,
respectively.
GAAP net loss for the quarter was $45,000 as compared to GAAP net income of
$1.0 million reported for the fourth
quarter of 2011. The prior year net income included the one-time
release of a valuation allowance of $6.4
million to offset deferred tax liabilities generated from
acquiring Liposonix. Non-GAAP net income for the quarter was
$2.3 million, or $0.03 per diluted share, as compared to a
non-GAAP net loss of $23,000 for same
period last year. Non-GAAP adjusted EBITDA for the quarter was
$4.0 million compared to $1.3 million for the same period last year.
The Company's GAAP results for the quarter include $1.8 million of amortization and other
acquisition related charges, $1.0
million of non-cash stock based compensation charges, and a
$0.5 million credit adjustment for
the fair value reassessment of the expected earn out payments
associated with the acquisition of Liposonix. The Company provides
non-GAAP financial measures that exclude these charges and
adjustments. A reconciliation of GAAP to non-GAAP results is
provided in the tables included in this release.
Full Year 2012 Financial Results
Total product revenue from treatment tips and consumables for
the year was $70.6 million, a
year-over-year increase of $7.3
million or 11%, and represented 49% of total revenue.
Revenue from North America and
international markets rose year-over-year by 34% and 17%,
respectively.
The GAAP net loss for the year was $38.0
million, or a loss of $0.59
per share, as compared to a net loss of $1.3
million, or a loss of $0.02
per share reported for the full year 2011. Non-GAAP net income for
the full year was $6.1 million, or
$0.09 per diluted share as compared
to non-GAAP net income of $3.6
million, or $0.06 per diluted
share reported for the full year 2011. Non-GAAP EBITDA for
the full year 2012 was $12.0 million
as compared to $7.5 million in the
prior year.
Solta Medical's GAAP results for the full year 2012 include
charges for the fair value reassessment of the expected earn out
payments associated with the acquisition of Liposonix of
$32.1 million, non-cash amortization
and other acquisition related charges of $7.5 million, and non-cash stock based
compensation charges of $4.6 million.
The Company provides additional non-GAAP financial measures that
exclude these charges and expenses. A reconciliation of GAAP to
non-GAAP results is provided in the tables included in this
release.
"With the pending acquisition of Sound Surgical, we anticipate
continued growth, execution, and operating leverage in 2013. We
expect to close the acquisition of Sound Surgical Technologies in
the coming weeks and to expeditiously implement our integration
plans. With the addition of Sound Surgical's VASER® product line,
we look forward to offering our customers an expanded portfolio of
innovative, safe, and effective body contouring solutions," said
Mr. Fanning.
Financial Outlook for 2013
The company provided its preliminary financial outlook for 2013
which includes the pending acquisition of Sound Surgical
Technologies as follows:
- Revenue for the full year 2013 is expected to grow by 26% to
32% and be in the range of $182 million to
$191 million, compared to full year 2012 revenue of
$144.5 million.
- Non-GAAP gross margin is expected to be in the range of 65% to
68% for the full year 2013. Non-GAAP gross margin excludes
non-cash amortization charges, non-cash stock based compensation
charges, severance costs, and acquisition related adjustments.
Non-GAAP gross margin for the full year 2012 was 66%.
- Non-GAAP operating income is expected to be in the range of
$13 million to $16 million for the
full year 2013. Non-GAAP operating income for the first six months
of 2013 is expected to be in the range $3
million to $4 million as the Company integrates its
acquisition of Sound Surgical Technologies. Non-GAAP operating
income excludes non-cash amortization charges, non-cash stock based
compensation charges, severance costs, and acquisition related
adjustments. Non-GAAP operating income for the full year 2012 was
$8.4 million.
Non-GAAP Presentation
To supplement the condensed consolidated financial information
presented on a GAAP basis, management has provided non-GAAP gross
margin, non-GAAP operating income (loss), non-GAAP adjusted EBITDA,
non-GAAP net income (loss) and non-GAAP earnings (loss) per share
measures that exclude the impact of acquisition related
adjustments, severance costs, acquisition related costs, and
stock-based compensation expenses. The Company believes that
these non-GAAP financial measures provide investors with insight
into what is used by management to conduct a more meaningful and
consistent comparison of the Company's ongoing operating results
and trends, compared with historical results. This
presentation is also consistent with the measures management uses
to measure the performance of ongoing operating results against
prior periods and against our internally developed targets.
There are limitations in using these non-GAAP financial measures
because they are not prepared in accordance with GAAP and may be
different from non-GAAP financial measures used by other
companies. These non-GAAP financial measures should not be
considered in isolation or as a substitute for GAAP financial
measures. Investors and potential investors should consider
non-GAAP financial measures only in conjunction with the Company's
consolidated financial statements prepared in accordance with GAAP
and the reconciliation of non-GAAP financial measures attached to
this release.
Conference Call Information
The Company will host a conference call and webcast today,
Tuesday, February 19, 2013, at
4:30 p.m. Eastern Time (1:30 p.m. Pacific) to discuss the financial
results and current corporate developments. The dial-in number for
the conference call is 877-941-0844 for domestic participants and
480-629-9835 for international participants.
To access the live webcast of the call, go to Solta Medical's
website at www.solta.com and click on Investor Relations. An
archived webcast will also be available at www.solta.com.
About Solta Medical, Inc.
Solta Medical, Inc. is a global leader in the medical aesthetics
market providing innovative, safe, and effective solutions for
patients that enhance and expand the practice of medical aesthetics
for physicians. The company offers six aesthetic energy devices to
address a range of issues, including skin resurfacing and
rejuvenation with Fraxel® and Clear + Brilliant(TM), body
contouring and skin tightening with Liposonix® and Thermage® and
acne reduction with Isolaz® and CLARO(TM). As the innovator and
leader in fractional laser technology, Fraxel delivers minimally
invasive clinical solutions to resurface aging and sun damaged
skin. Using similar fractional laser technology, Clear + Brilliant
is a unique, cost-effective treatment to prevent and improve the
early signs of photoaging. For body contouring, Liposonix is a
non-surgical treatment to reduce waist circumference with advanced
high-intensity focused ultrasound (HIFU) technology to permanently
destroy targeted fat beneath the skin. Thermage is an innovative,
non-invasive radiofrequency procedure for tightening and contouring
skin. Isolaz was the first laser or light based system indicated
for the treatment of inflammatory acne, comedonal acne, pustular
acne, and mild-to-moderate inflammatory acne. CLARO is a personal
care acne system that is the first FDA cleared over-the-counter IPL
device that uses a powerful combination of both heat and light to
clear skin quickly and naturally. More than two million procedures
have been performed with Solta Medical's portfolio of products
around the world. For more information about Solta Medical, call
1-877-782-2286 or log on to www.Solta.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995, including statements regarding the ability to improve
operating leverage, the close of the Sound Surgical acquisition,
and the financial outlook for 2013. Forward-looking statements are
based on management's current, preliminary expectations and are
subject to risks and uncertainties, which may cause Solta Medical's
actual results to differ materially from the statements contained
herein. Factors that might cause such a difference include the risk
that physician adoption of the Company's systems does not grow, the
risk that customers do not continue to purchase treatment tips, the
possibility that the market for the sale of new products does not
develop as expected, and the risks relating to Solta Medical's
ability to achieve its stated financial goals as a result of, among
other things, economic conditions and consumer and physician
confidence causing changes in consumer and physician spending
habits that affect demand for the Company's products and
treatments. Further information on potential risk factors that
could affect Solta Medical's business and its financial results are
detailed in its Form 10-K for the year ended December 31, 2011, and other reports as filed
from time to time with the Securities and Exchange Commission.
Undue reliance should not be placed on forward-looking statements,
especially guidance on future financial performance, which speaks
only as of the date they are made. Solta Medical undertakes no
obligation to update publicly any forward-looking statements to
reflect new information, events or circumstances after the date
they were made, or to reflect the occurrence of unanticipated
events.
Web Site: http://www.Solta.com
Solta
Medical, Inc.
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(in
thousands of dollars, except share and per share
data)
|
(unaudited)
|
|
|
|
|
|
Three
Months Ended
|
|
Twelve
Months Ended
|
|
December 31,
|
|
December 31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Net
revenue
|
$39,801
|
|
$33,168
|
|
$144,545
|
|
$115,984
|
Cost of
revenue
|
15,630
|
|
14,064
|
|
55,368
|
|
42,364
|
|
|
|
|
|
|
|
|
Gross
margin
|
24,171
|
|
19,104
|
|
89,177
|
|
73,620
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Sales and
marketing
|
13,643
|
|
12,244
|
|
53,665
|
|
46,761
|
Research
and development
|
5,382
|
|
5,246
|
|
20,549
|
|
16,124
|
General
and administrative
|
4,805
|
|
5,440
|
|
18,637
|
|
17,443
|
Remeasurement of contingent consideration
liability
|
(500)
|
|
1,200
|
|
32,100
|
|
322
|
|
|
|
|
|
|
|
|
Total
operating expenses
|
23,330
|
|
24,130
|
|
124,951
|
|
80,650
|
|
|
|
|
|
|
|
|
Income
(loss) from operations
|
841
|
|
(5,026)
|
|
(35,774)
|
|
(7,030)
|
Interest
income
|
6
|
|
7
|
|
14
|
|
59
|
Interest
expense
|
(936)
|
|
(119)
|
|
(2,014)
|
|
(209)
|
Other
income and expense, net
|
77
|
|
(121)
|
|
(24)
|
|
(309)
|
|
|
|
|
|
|
|
|
Loss
before income taxes
|
(12)
|
|
(5,259)
|
|
(37,798)
|
|
(7,489)
|
Income tax
provision (benefit)
|
33
|
|
(6,306)
|
|
210
|
|
(6,160)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
($45)
|
|
$1,047
|
|
($38,008)
|
|
($1,329)
|
|
|
|
|
|
|
|
|
Net income
(loss) per share:
|
|
|
|
|
|
|
|
Basic
|
($0.00)
|
|
$0.02
|
|
($0.59)
|
|
($0.02)
|
Diluted
|
($0.00)
|
|
$0.02
|
|
($0.59)
|
|
($0.02)
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding used in calculating net income
(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
68,636,725
|
|
60,959,189
|
|
64,437,427
|
|
60,573,428
|
Diluted
|
68,636,725
|
|
62,044,555
|
|
64,437,427
|
|
60,573,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Solta
Medical, Inc.
|
NON-GAAP RECONCILIATION OF GROSS MARGIN, OPERATING
INCOME (LOSS), EBITDA, NET INCOME (LOSS) AND NET INCOME (LOSS) PER
SHARE
|
(in thousands, except share and per
share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Twelve
Months Ended
|
|
December 31,
|
|
December 31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
GAAP Gross
margin
|
$24,171
|
|
$19,104
|
|
$89,177
|
|
$73,620
|
GAAP gross
margin as % of sales
|
61%
|
|
58%
|
|
62%
|
|
63%
|
Non-GAAP
adjustments to gross margin:
|
|
|
|
|
|
|
|
GAAP Gross
margin
|
$24,171
|
|
$19,104
|
|
$89,177
|
|
$73,620
|
Amortization and other non-cash acquisition related
charges
|
1,375
|
|
1,418
|
|
5,782
|
|
3,951
|
Stock-based compensation
|
133
|
|
173
|
|
499
|
|
442
|
Non-GAAP
gross margin
|
$25,679
|
|
$20,695
|
|
$95,458
|
|
$78,013
|
Non-GAAP
gross margin as % of sales
|
65%
|
|
62%
|
|
66%
|
|
67%
|
|
|
|
|
|
|
|
|
GAAP
income (loss) from operations
|
$841
|
|
($5,026)
|
|
($35,774)
|
|
($7,030)
|
Non-GAAP
adjustments to net income (loss) from operations:
|
|
|
|
|
|
|
|
Amortization and other non-cash acquisition related
charges
|
1,730
|
|
1,745
|
|
7,205
|
|
5,075
|
Remeasurement of contingent consideration
liability
|
(500)
|
|
1,200
|
|
32,100
|
|
322
|
Acquisition-related expenses
|
101
|
|
1,120
|
|
268
|
|
2,355
|
Severance
expenses
|
-
|
|
260
|
|
1
|
|
260
|
Stock-based compensation
|
1,010
|
|
1,016
|
|
4,563
|
|
3,297
|
Non-GAAP
income from operations
|
$3,182
|
|
$315
|
|
$8,363
|
|
$4,279
|
Depreciation expenses
|
847
|
|
991
|
|
3,665
|
|
3,269
|
Non-GAAP
Adjusted EBITDA
|
$4,029
|
|
$1,306
|
|
$12,028
|
|
$7,548
|
|
|
|
|
|
|
|
|
GAAP net
income
(loss)
|
($45)
|
|
$1,047
|
|
($38,008)
|
|
($1,329)
|
Non-GAAP
adjustments to net income (loss):
|
|
|
|
|
|
|
|
Amortization and other non-cash acquisition related
charges
|
1,730
|
|
1,745
|
|
7,205
|
|
5,075
|
Remeasurement of contingent consideration
liability
|
(500)
|
|
1,200
|
|
32,100
|
|
322
|
Acquisition-related expenses
|
101
|
|
1,120
|
|
268
|
|
2,355
|
Severance
expenses
|
-
|
|
260
|
|
1
|
|
260
|
Stock-based compensation
|
1,010
|
|
1,016
|
|
4,563
|
|
3,297
|
Acquisition-related income tax benefit
|
-
|
|
(6,411)
|
|
-
|
|
(6,411)
|
Non-GAAP
net income (loss)
|
$2,296
|
|
($23)
|
|
$6,129
|
|
$3,569
|
|
|
|
|
|
|
|
|
GAAP basic
net income (loss) per share
|
($0.00)
|
|
$0.02
|
|
($0.59)
|
|
($0.02)
|
Non-GAAP
adjustments to basic income (loss) per share:
|
|
|
|
|
|
|
|
Amortization and other non-cash acquisition related
charges
|
$0.03
|
|
$0.03
|
|
$0.11
|
|
$0.08
|
Remeasurement of contingent consideration
liability
|
($0.01)
|
|
$0.02
|
|
$0.51
|
|
$0.01
|
Acquisition-related expenses
|
$0.00
|
|
$0.02
|
|
$0.00
|
|
$0.05
|
Severance
expenses
|
$0.00
|
|
$0.00
|
|
$0.00
|
|
$0.00
|
Stock-based compensation
|
$0.01
|
|
$0.02
|
|
$0.07
|
|
$0.05
|
Acquisition-related income tax benefit
|
$0.00
|
|
($0.11)
|
|
$0.00
|
|
($0.11)
|
Non-GAAP
basic net income (loss) per share
|
$0.03
|
|
($0.00)
|
|
$0.10
|
|
$0.06
|
|
|
|
|
|
|
|
|
Non-GAAP
diluted net income (loss) per share
|
$0.03
|
|
($0.00)
|
|
$0.09
|
|
$0.06
|
|
|
|
|
|
|
|
|
GAAP
weighted average shares outstanding used in calculating basic net
income (loss) per share
|
68,636,725
|
|
60,959,189
|
|
64,437,427
|
|
60,573,428
|
|
|
|
|
|
|
|
|
GAAP
weighted average shares outstanding used in calculating diluted net
income (loss) per share
|
68,636,725
|
|
62,044,555
|
|
64,437,427
|
|
60,573,428
|
Adjustments for dilutive potential common
stock
|
4,778,891
|
|
1,806,441
|
|
5,170,881
|
|
3,555,057
|
Weighted
average shares outstanding used in calculating non-GAAP diluted net
income (loss) per share
|
73,415,616
|
|
63,850,996
|
|
69,608,308
|
|
64,128,485
|
Solta
Medical, Inc.
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(in
thousands of dollars, except share and per share
data)
|
(unaudited)
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
2012
|
|
2011
|
|
|
|
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
$38,097
|
|
$17,417
|
Accounts
receivable
|
20,570
|
|
13,282
|
Inventories
|
16,611
|
|
16,524
|
Prepaid
expenses and other current assets
|
8,476
|
|
8,626
|
|
|
|
|
Total
current assets
|
83,754
|
|
55,849
|
Property
and equipment, net
|
6,401
|
|
6,818
|
Purchased
intangible assets, net
|
42,428
|
|
49,352
|
Goodwill
|
96,620
|
|
96,620
|
Other
assets
|
520
|
|
659
|
|
|
|
|
Total
assets
|
$229,723
|
|
$209,298
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
Liabilities:
|
|
|
|
Accounts
payable
|
$7,283
|
|
$5,767
|
Accrued
liabilities
|
17,343
|
|
16,126
|
Current
portion of contingent consideration liability
|
21,400
|
|
—
|
Current
portion of deferred revenue
|
3,985
|
|
4,521
|
Short-term
borrowings
|
8,345
|
|
7,441
|
Customer
deposits
|
637
|
|
610
|
|
|
|
|
Total
current liabilities
|
58,993
|
|
34,465
|
Deferred
revenue, net of current portion
|
683
|
|
824
|
Term loan,
net of current portion
|
18,063
|
|
16,959
|
Non-current tax liabilities
|
2,478
|
|
2,975
|
Contingent
consideration liability
|
38,500
|
|
27,800
|
Other liabilities
|
899
|
|
92
|
|
|
|
|
Total
liabilities
|
119,616
|
|
83,115
|
|
|
|
|
Stockholders' equity:
|
|
|
|
Common
stock, $0.001 par value:
|
|
|
|
100,000,000 shares authorized
|
|
|
|
68,795,987
and 61,130,740 shares issued and outstanding at December 31, 2012
and December 31, 2011
|
69
|
|
61
|
Additional
paid-in capital
|
220,489
|
|
198,565
|
Accumulated deficit
|
(110,451)
|
|
(72,443)
|
|
|
|
|
Total
stockholders' equity
|
110,107
|
|
126,183
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$229,723
|
|
$209,298
|
SOURCE Solta Medical, Inc.