ZELTIQ Announces First Quarter 2014 Financial Results
Increases Full Year 2014 Revenue Guidance
Launches Revolutionary CoolSmooth(TM) Applicator
Receives FDA Clearance for Treatment of Thighs
PLEASANTON, CA--(Marketwired - Apr 29, 2014) - ZELTIQ® (NASDAQ:
ZLTQ)
- Total revenue of $31.0 million, up 55% compared to $20.0
million in Q1 2013
- 179 systems shipped, compared to 112 systems in Q1 2013,
bringing total system installed base to 2,354 systems
- 142,317 cycles shipped, up 83% from Q1 2013
ZELTIQ®, (NASDAQ: ZLTQ) a medical technology company focused on
developing and commercializing products utilizing its proprietary
controlled-cooling technology platform, today announced financial
results for the first quarter 2014.
Mark Foley, President and Chief Executive Officer, said, "After
a transformative 2013, our organization continued to execute
and maintain the momentum generated last year by further building
on key strategic initiatives which we believe will drive our long
term success. We further differentiated our innovative technology,
partnered with physician practices to drive utilization, leveraged
our platform to treat more areas of the body, and achieved deeper
penetration of the large and growing non-invasive body contouring
market. We saw strong year-over-year increases in our consumable
utilization rate which we believe is a direct result of the various
initiatives and programs beginning to gain traction through our
Practice Development Managers, and our Area Sales Managers drove
another strong quarter of system placements while still increasing
the already robust pipeline of system leads in our queue. Our
strong progress on many of our key initiatives and execution by our
sales force led to outstanding 55% year-over-year revenue growth in
the first quarter and the further strengthening of CoolSculpting's
established market leadership position."
Mr. Foley continued, "We also achieved two major milestones that
we believe are significant to our long term growth strategy. In
March, we launched our revolutionary non-suction based, surface
applicator, CoolSmooth, designed to treat expanded areas of the
body without the need to draw tissue away from the body. CoolSmooth
saw strong pre-order demand during the quarter and we began
shipping the product in early April. It is a platform on which we
intend to further build, leveraging our unique technology. In
April, we received FDA clearance across our entire applicator
portfolio for the treatment of thighs. These two developments
further strengthen our ability to drive deeper market penetration,
and we expect a corresponding increase in demand for system sales
over the course of 2014. Accordingly, we made significant
investments in the first quarter in both sales and marketing and in
inventory for both CoolSculpting systems and CoolSmooth
applicators. We have included in today's release as well as on our
website some additional key metrics which we believe will provide
greater transparency in the health and future growth of our
business. We remain excited about the potential in 2014 and
our confidence has led us to increase our full year 2014 revenue
guidance to $137 million to $140 million."
First Quarter Financial
Review Total net revenue for the first quarter 2014 was
$31.0 million, consisting of $14.5 million of system revenue and
$16.5 million of consumable revenue. This compares to total net
revenue of $20.0 million, consisting of $11.1 million of system
revenue and $8.9 million of consumable revenue for the first
quarter 2013. Total cycles shipped increased 83% to 142,317 for the
first quarter 2014, compared to 77,559 for the first quarter
2013.
Gross profit was $22.0 million, or 71% of revenue, for the first
quarter 2014, compared to gross profit of $12.6 million, or 63% of
revenue, for the first quarter 2013. Operating expenses for the
first quarter 2014 were $29.2 million, compared to $20.1 million
for the first quarter 2013.
Loss from operations for the first quarter 2014 was $7.2
million, compared to $7.5 million for the first quarter 2013. Net
loss for the first quarter 2014 was $7.3 million, or $0.20 per
share, compared to $7.5 million for the first quarter 2013, or
$0.21 per share. Weighted average basic and diluted shares
outstanding for the first quarter 2014 and first quarter 2013 was
37.2 million and 35.9 million, respectively.
Cash and cash equivalents, short-term investments, and long-term
investments were $41.2 million as of March 31, 2014 compared to
$51.6 million as of March 31, 2013, and $56.1 million as of
December 31, 2013.
Revised Full Year 2014
Financial Guidance ZELTIQ is updating its previously stated
financial guidance for the full year 2014, provided on its fourth
quarter and full year 2013 earnings conference call:
- Revenue guidance in the range of $137 million to $140
million; up from prior guidance of $134 to $137 million
- Consumable revenue of approximately 50% of total revenue;
unchanged from prior guidance
- Gross profit of approximately 70%; unchanged from prior
guidance
- Operating expenses of approximately 80% of total revenue;
unchanged from prior guidance
- Adjusted EBITDA margin of approximately (3%); new metric
from prior guidance
Additional information regarding our results and guidance can be
found in our Supplemental Financial and Operational Information
schedule by CLICKING HERE or by visiting the Investor
Relations section of our website at www.zeltiq.com.
Use of Non-GAAP
Financial Measures ZELTIQ has supplemented its GAAP net loss
with a non-GAAP measure of Adjusted EBITDA. Management believes
that this non-GAAP financial measure provides useful supplemental
information to management and investors regarding the performance
of ZELTIQ, facilitates a more meaningful comparison of results for
current periods with previous operating results, and assists
management in analyzing future trends, making strategic and
business decisions and establishing internal budgets and forecasts.
A reconciliation of non-GAAP Adjusted EBITDA to GAAP net loss in
the most directly comparable GAAP measure is provided in the
schedule below.
There are limitations in using this non-GAAP financial measure
because it is not prepared in accordance with GAAP and may be
different from non-GAAP financial measures used by other
companies. This non-GAAP financial measure 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 ZELTIQ's
consolidated financial statements prepared in accordance with GAAP
and the reconciliations of the non-GAAP financial measure provided
in the schedule below.
Conference Call
ZELTIQ will hold a conference call on Tuesday, April 29, 2014 at
4:30 p.m. ET to discuss the results. The dial-in numbers are (877)
280-7291 for domestic callers and (707) 287-9361 for international
callers. A live webcast of the conference call will be available
online from the investor relations page of ZELTIQ's corporate
website at www.coolsculpting.com.
After the live webcast, the call will remain available on
ZELTIQ's website, www.coolsculpting.com, until ZELTIQ releases
its second quarter 2014 financial results. In addition, a
telephonic replay of the call will be available until May 6, 2014.
The replay dial-in numbers are (855) 859-2056 for domestic callers
and (404) 537-3406 for international callers. Please use the
replay conference ID number 29315879.
About
ZELTIQ®
Aesthetics ZELTIQ
is a medical technology company focused on developing and
commercializing products utilizing its proprietary
controlled-cooling technology platform. ZELTIQ's first
commercial product, the CoolSculpting System, is designed to
selectively reduce stubborn fat bulges. CoolSculpting is based
on the scientific principle that fat cells are more sensitive to
cold than the overlying skin and surrounding tissues. It
utilizes patented technology of precisely controlled cooling to
reduce the temperature of fat cells in the treated area, which is
intended to cause fat cell elimination through a natural biological
process known as apoptosis. ZELTIQ developed CoolSculpting to
safely, noticeably, and measurably reduce the fat layer.
Forward-Looking
Statements The statements made in this press release
regarding ZELTIQ's belief that continued building on key strategic
initiatives will drive its long term success, its expectation of an
increase in demand for system sales over the course of 2014, its
belief regarding the potential for 2014 and its financial guidance
for 2014 are forward-looking statements. The words "believe,"
"expect," "potential" and "guidance" and similar words that denote
future events or results identify these forward-looking
statements. You should not place undue reliance on these
forward-looking statements because they involve known and unknown
risks, uncertainties and other factors that are, in some cases,
beyond ZELTIQ's control and that could materially affect
ZELTIQ's actual business operations and financial performance and
condition. Factors that could materially affect ZELTIQ's business
operations and financial performance and condition include, but are
not limited to: less than anticipated growth in the number of
physicians electing to purchase CoolSculpting Systems; patient
demand for CoolSculpting procedures may be lower than ZELTIQ
expects; product or procedure announcements by competitors may
decrease demand for CoolSculpting procedures; ZELTIQ
may incorrectly estimate or control its future expenditures;
ZELTIQ's sales and marketing plans may fail to increase sales as
ZELTIQ expects; as well as those other risks and uncertainties set
forth in ZELTIQ's Current Report on Form 10-K for the fiscal year
ended December 31, 2013, filed with the SEC on February 26, 2014.
These forward-looking statements speak only as of the date of this
press release. ZELTIQ expressly disclaims any obligation to update
information contained in these forward-looking statements whether
as a result of new information, future events or otherwise.
| |
|
|
|
|
| ZELTIQ Aesthetics, Inc. |
| Consolidated Balance Sheets |
| (In Thousands) |
| (Unaudited) |
| |
|
|
|
|
| |
|
March 31, 2014 |
|
December 31, 2013 |
| ASSETS |
|
|
|
|
|
|
| CURRENT ASSETS: |
|
|
|
|
|
|
| |
Cash and cash equivalents |
|
$ |
14,546 |
|
$ |
25,798 |
| |
Short-term investments |
|
|
18,442 |
|
|
18,840 |
| |
Accounts receivable, net |
|
|
12,318 |
|
|
10,221 |
| |
Inventory |
|
|
15,231 |
|
|
8,406 |
| |
Prepaid expenses and other current assets |
|
|
3,676 |
|
|
4,368 |
| |
|
Total
current assets |
|
|
64,213 |
|
|
67,633 |
| |
Long-term investments |
|
|
8,234 |
|
|
11,442 |
| |
Restricted cash |
|
|
332 |
|
|
331 |
| |
Property and equipment, net |
|
|
2,340 |
|
|
2,158 |
| |
Intangible asset, net |
|
|
6,306 |
|
|
6,481 |
| |
Other assets |
|
|
103 |
|
|
9 |
| |
|
Total
assets |
|
$ |
81,528 |
|
$ |
88,054 |
| |
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
| CURRENT LIABILITIES: |
|
|
|
|
|
|
| |
Accounts payable |
|
$ |
6,195 |
|
$ |
5,165 |
| |
Accrued liabilities |
|
|
17,127 |
|
|
18,364 |
| |
Deferred revenue |
|
|
2,532 |
|
|
1,674 |
| |
|
Total
current liabilities |
|
|
25,854 |
|
|
25,203 |
| Other non-current liabilities |
|
|
204 |
|
|
275 |
| |
|
Total
liabilities |
|
$ |
26,058 |
|
$ |
25,478 |
| STOCKHOLDERS' EQUITY: |
|
|
|
|
|
|
| |
|
Total
stockholders' equity |
|
|
55,470 |
|
|
62,576 |
| |
|
Total
liabilities and stockholders' equity |
|
$ |
81,528 |
|
$ |
88,054 |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| ZELTIQ Aesthetics, Inc. |
|
| Consolidated Statement of Operations |
|
| (In Thousands) |
|
| (Unaudited) |
|
| |
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| |
|
March 31, |
|
|
March 31, |
|
| |
|
2014 |
|
|
2013 |
|
| Revenue |
|
$ |
30,975 |
|
|
$ |
19,982 |
|
| Cost of revenue |
|
|
9,016 |
|
|
|
7,348 |
|
| |
Gross profit |
|
|
21,959 |
|
|
|
12,634 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
| |
Research and development |
|
|
4,270 |
|
|
|
3,749 |
|
| |
Sales and marketing |
|
|
20,187 |
|
|
|
12,542 |
|
| |
General and administrative |
|
|
4,713 |
|
|
|
3,808 |
|
| |
|
Total
operating expenses |
|
|
29,170 |
|
|
|
20,099 |
|
| Loss from operations |
|
|
(7,211 |
) |
|
|
(7,465 |
) |
| Interest income, net |
|
|
19 |
|
|
|
24 |
|
| Other expense, net |
|
|
(66 |
) |
|
|
(34 |
) |
| Loss before provision for income taxes |
|
|
(7,258 |
) |
|
|
(7,475 |
) |
| Provision for income taxes |
|
|
79 |
|
|
|
7 |
|
| Net loss |
|
|
(7,337 |
) |
|
|
(7,482 |
) |
| Net loss per share, basic and diluted |
|
$ |
(0.20 |
) |
|
$ |
(0.21 |
) |
| Weighted average shares of common stock outstanding
used in computing net loss per share, basic and diluted |
|
|
37,215,697 |
|
|
|
35,890,084 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| ZELTIQ Aesthetics, Inc. |
|
| Consolidated Statement of Cash Flows |
|
| (In Thousands) |
|
| (Unaudited) |
|
| |
|
Three Months Ended |
|
| |
|
March 31, |
|
| |
|
2014 |
|
|
2013 |
|
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
| |
Net loss |
|
$ |
(7,337 |
) |
|
$ |
(7,482 |
) |
| |
Adjustments to reconcile net loss to net cash used in
operating activities: |
|
|
|
|
|
|
|
|
| |
|
Depreciation and amortization |
|
|
455 |
|
|
|
428 |
|
| |
|
Stock-based compensation |
|
|
2,105 |
|
|
|
1,119 |
|
| |
|
Deferred income tax provision (benefit) |
|
|
30 |
|
|
|
(20 |
) |
| |
|
Amortization (accretion) of investment premium
(discount), net |
|
|
67 |
|
|
|
94 |
|
| |
|
Provision for doubtful accounts receivable |
|
|
- |
|
|
|
25 |
|
| |
|
Provision for excess and obsolete inventory |
|
|
105 |
|
|
|
82 |
|
| |
|
Loss on disposal and write-off of property and
equipment |
|
|
17 |
|
|
|
2 |
|
| |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| |
|
|
Accounts receivable |
|
|
(2,088 |
) |
|
|
1,100 |
|
| |
|
|
Inventory |
|
|
(6,291 |
) |
|
|
1,284 |
|
| |
|
|
Prepaid expenses and other assets |
|
|
570 |
|
|
|
(776 |
) |
| |
|
|
Deferred revenue, net of deferred costs |
|
|
853 |
|
|
|
(359 |
) |
| |
|
|
Accounts payable, accrued and other non-current liabilities |
|
|
(829 |
) |
|
|
(2,506 |
) |
| |
|
|
Net
cash used in operating activities |
|
|
(12,343 |
) |
|
|
(7,009 |
) |
| CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
| |
Purchase of investments |
|
|
(2,249 |
) |
|
|
(7,319 |
) |
| |
Sale of investments |
|
|
1,000 |
|
|
|
3,750 |
|
| |
Proceeds from maturity of investments |
|
|
4,791 |
|
|
|
4,448 |
|
| |
Purchase of property and equipment |
|
|
(559 |
) |
|
|
(68 |
) |
| |
Change in restricted cash |
|
|
(1 |
) |
|
|
107 |
|
| |
|
|
Net
cash provided by investing activities |
|
|
2,982 |
|
|
|
918 |
|
| CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
| |
Proceeds from issuance of common stock upon exercise of
stock options |
|
|
640 |
|
|
|
68 |
|
| |
Tax payments related to shares withheld for vested
restricted stock units |
|
|
(2,546 |
) |
|
|
(7 |
) |
| |
|
|
Net
cash (used in) provided by financing activities |
|
|
(1,906 |
) |
|
|
61 |
|
| Effect of exchange rate on cash and cash
equivalents |
|
|
15 |
|
|
|
- |
|
| NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS |
|
|
(11,252 |
) |
|
|
(6,030 |
) |
| CASH AND CASH EQUIVALENTS-Beginning of period |
|
|
25,798 |
|
|
|
22,876 |
|
| CASH AND CASH EQUIVALENTS-End of period |
|
$ |
14,546 |
|
|
$ |
16,846 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| ZELTIQ Aesthetics, Inc. |
|
| Reconciliation of Net Loss to Adjusted Earnings Before
Interest, Taxes, Depreciation, |
|
| Amortization and Stock-Based Compensation (Adjusted
EBITDA) |
|
| (In Thousands) |
|
| (Unaudited) |
|
| |
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| |
|
March 31, 2014 |
|
|
March 31, 2013 |
|
| Net loss, as reported |
|
$ |
(7,337 |
) |
|
$ |
(7,482 |
) |
| |
|
|
|
|
|
|
|
|
| Adjustments to net loss: |
|
|
|
|
|
|
|
|
| |
Interest income and other expense, net |
|
|
47 |
|
|
|
10 |
|
| |
Provision for income taxes |
|
|
79 |
|
|
|
7 |
|
| |
Depreciation and amortization |
|
|
455 |
|
|
|
428 |
|
| |
Stock-based compensation expense |
|
|
2,105 |
|
|
|
1,119 |
|
| |
|
Total
adjustments to net loss |
|
|
2,686 |
|
|
|
1,564 |
|
| |
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
(4,651 |
) |
|
$ |
(5,918 |
) |
| Adjusted EBITDA as a percentage of revenue |
|
|
-15 |
% |
|
|
-30 |
% |
| |
|
|
|
|
|
|
|
|
| |
|
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