Surmodics, Inc. (Nasdaq: SRDX), a leading provider of medical
device and in vitro diagnostic technologies to the healthcare
industry, today reported financial results for its fourth quarter
and fiscal year ended September 30, 2023, and introduced its
financial guidance for the fiscal year ending September 30,
2024.
Fourth Quarter Fiscal 2023 Financial Summary
- Total Revenue of $28.0 million, an increase of 8%
year-over-year
- Total Revenue excluding SurVeil™ DCB license fee revenue(1) of
$26.9 million, an increase of 12% year-over-year
- GAAP Diluted EPS of $0.47, compared to $(1.06) in the
prior-year period
- Non-GAAP Diluted EPS of $0.53, compared to $(0.26) in the
prior-year period
Fiscal Year 2023 Financial Summary
- Total Revenue of $132.6 million, an increase of 33%
year-over-year
- Total Revenue excluding SurVeil DCB license fee revenue(1) of
$103.0 million, an increase of 9% year-over-year
- GAAP Diluted EPS of $(0.11), compared to $(1.96) in the
prior-year period
- Non-GAAP Diluted EPS of $0.16, compared to $(0.95) in the
prior-year period
Fourth Quarter and Recent Business Highlights
- On October 31, 2023, Surmodics announced the launch of its
Preside™ medical device coating technology providing
industry-leading lubricity and durability to a broader range of
complex device applications.
- On November 7, 2023, Surmodics announced that 24-month data
from its SWING first-in-human study of the company’s Sundance™
Sirolimus DCB will be presented at the Symposium on Vascular and
Endovascular Issues (“VEITHsymposium”) in New York, NY on November
15, 2023.
- On November 7, 2023, Surmodics announced that 36-month data
from its TRANSCEND clinical trial of the company’s SurVeil DCB will
be presented at the VEITHsymposium in New York, NY on November 15,
2023.
“We are pleased with our revenue performance in the fourth
quarter, which increased 8% year-over-year – 12% excluding SurVeil
DCB license fees(1) – and ultimately exceeded our guidance range,
driven by impressive contributions from both of our business
segments,” said Gary Maharaj, President and CEO of Surmodics, Inc.
“We complemented our fourth quarter revenue performance with
notable operating results, delivering positive Adjusted EBITDA and
generating cash flow from operations. In addition to our financial
accomplishments, we also made strong progress with respect to each
of our key strategic objectives: supporting the future
commercialization of our SurVeil DCB, advancing the initial
commercialization of our Pounce™ arterial thrombectomy and Sublime™
radial access platforms, and driving strong revenue growth and cash
flow from our ‘core’ medical device performance coatings and In
Vitro Diagnostics businesses on a combined basis.”
Mr. Maharaj continued, “Looking back on fiscal 2023, our team
successfully navigated multiple challenges, while ultimately
achieving our stated objectives and delivering solid financial
performance. We believe we are strategically positioned for future
success as a result, with a portfolio and pipeline of key product
growth catalysts, durable and profitable ‘core’ businesses, more
than $45 million of cash and investments to support our operations,
and access to approximately $61 million in available debt capital
to provide additional financial flexibility. In fiscal 2024, we are
committed to executing on our growth strategy efficiently to
maintain a healthy balance sheet while positioning Surmodics for
strong, sustainable, long-term growth and value creation.”
Fourth Quarter Fiscal 2023 Financial
Results
Three Months Ended
September 30,
Increase
2023
2022
$
%
Revenue:
Medical Device
$
21,044
$
19,500
$
1,544
8
%
In Vitro Diagnostics
6,926
6,488
438
7
%
Total revenue
$
27,970
$
25,988
$
1,982
8
%
Total revenue increased $2.0 million, or 8%, to $28.0 million,
compared to $26.0 million in the fourth quarter of fiscal 2022.
Excluding SurVeil DCB license fee revenue,(1) total revenue
increased $3.0 million, or 12%, to $26.9 million, compared to $23.9
million in the fourth quarter of fiscal 2022.
Medical Device revenue increased $1.5 million, or 8%, to $21.0
million, compared to $19.5 million in the fourth quarter of fiscal
2022. Excluding SurVeil DCB license fee revenue,(1) Medical Device
revenue increased $2.5 million, or 15% to $20.0 million, compared
to $17.4 million in the fourth quarter of fiscal 2022. Medical
Device revenue growth was primarily driven by increased performance
coating royalties and significant contributions to product sales
from the Pounce thrombectomy device platform, partly offset by a
decrease in proprietary specialty catheter product sales due to the
completion of a customer development program. IVD revenue increased
$0.4 million, or 7%, to $6.9 million, compared to $6.5 million in
the fourth quarter of fiscal 2022, driven primarily by strong
customer demand for microarray slide/surface products, as well as
favorable order timing for distributed antigen products.
Product gross profit (defined as product sales less product
costs) decreased $0.5 million, or 5%, to $8.3 million, compared to
$8.8 million in the fourth quarter of fiscal 2022. Product gross
margin (defined as product gross profit as a percentage of product
sales) was 54.2%, compared to 61.1% in the fourth quarter of fiscal
2022. The decrease in product gross margin was primarily driven by
the adverse mix impact from increased device product sales, which
have lower product gross margins from under-absorption and
production inefficiencies, including expiration of inventory,
associated with low production volumes during the scale-up phase
following initial commercialization.
Operating costs and expenses, excluding product costs, decreased
$3.6 million, or 13%, to $23.4 million, compared to $27.0 million
in the fourth quarter of fiscal 2022. The decrease was driven by
lower research and development and selling, general and
administrative expenses primarily as the result of the spending
reduction plan implemented in the second quarter of fiscal 2023, as
well as by delayed timing of certain investments in product
development.
GAAP net income was $6.7 million, or $0.47 per diluted share,
compared to GAAP net loss of $(14.7) million, or $(1.06) per
diluted share in the fourth quarter of fiscal 2022. Non-GAAP net
income was $7.5 million, or $0.53 per diluted share, compared to
Non-GAAP net loss of $(3.7) million, or $(0.26) per diluted share
in the fourth quarter of fiscal 2022.
Adjusted EBITDA was $1.7 million, compared to Adjusted EBITDA
loss of $(2.5) million in the fourth quarter of fiscal 2022.
Fiscal Year 2023 Financial Results
Fiscal Year Ended
September 30,
Increase (Decrease)
2023
2022
$
%
Revenue:
Medical Device
$
105,783
$
72,389
$
33,394
46
%
In Vitro Diagnostics
26,801
27,562
(761
)
(3
)%
Total revenue
$
132,584
$
99,951
$
32,633
33
%
Total revenue increased $32.6 million, or 33%, to $132.6
million, compared to $100.0 million in fiscal 2022. Excluding
SurVeil DCB license fee revenue,(1) total revenue increased $8.7
million, or 9%, to $103.0 million, compared to $94.3 million in
fiscal 2022.
Medical Device revenue increased $33.4 million, or 46%, to
$105.8 million, compared to $72.4 million in fiscal 2022. Excluding
SurVeil DCB license fee revenue,(1) Medical Device revenue
increased $9.5 million, or 14% to $76.2 million, compared to $66.7
million in fiscal 2022. Medical Device revenue growth was
broad-based across product sales, royalties and license fees, and
research and development services. Medical Device product sales
growth of 22% year-over-year was driven by increased sales of the
Pounce thrombectomy and Sublime radial access platforms,
performance coating reagents, and contract-manufactured balloon
catheters, partly offset by decreased sales of proprietary
specialty catheters due to the completion of a customer development
program. IVD revenue decreased $0.8 million, or 3%, to $26.8
million, compared to $27.6 million in fiscal 2022, driven primarily
by lower research and development and other revenue due to the
completion of a customer development program, as well as by the
impact to product sales of active management of inventory levels by
certain customers.
GAAP net loss was $(1.5) million, or $(0.11) per diluted share,
compared to GAAP net loss of $(27.3) million, or $(1.96) per
diluted share in fiscal 2022. Non-GAAP net income was $2.2 million,
or $0.16 per diluted share, compared to Non-GAAP net loss of
$(13.2) million, or $(0.95) per diluted share in fiscal 2022.
Adjusted EBITDA was $21.5 million, compared to Adjusted EBITDA
loss of $(5.8) million in fiscal 2022.
Balance Sheet Summary
As of September 30, 2023, Surmodics reported $45.4 million in
cash and investments, $5.0 million in outstanding borrowings on its
revolving credit facility, and $25.0 million in outstanding
borrowings on its term loan facility. The company had access to
approximately $61.0 million in additional debt capital as of
September 30, 2023 under its revolving credit and term loan
facilities. Surmodics reported $1.3 million of cash provided by
operating activities and $0.7 million in capital expenditures in
the fourth quarter of fiscal 2023.
Fiscal Year 2024 Financial Guidance
Surmodics expects fiscal 2024 total revenue to range from $116
million to $121 million, representing a decrease of (13)% to (9)%
compared to fiscal 2023. Excluding SurVeil DCB license fee
revenue,(1) Surmodics expects fiscal 2024 total revenue to range
from $112 million to $117 million, representing an increase of 9%
to 14% compared to fiscal 2023.
The company expects fiscal 2024 GAAP diluted loss per share to
range from $(1.55) to $(1.20). Non-GAAP diluted loss per share in
fiscal 2024 is expected to range from $(1.32) to $(0.97).
Conference Call Today at 7:00 a.m. CT (8:00 a.m. ET)
Surmodics is hosting a live webcast at 7:00 a.m. CT (8:00 a.m.
ET) today to discuss fourth quarter and fiscal 2023 financial
results and accomplishments, and to host a question-and-answer
session. To access the webcast, please go to “Events &
Presentations” under the “Investors” section of the company’s
website at https://surmodics.gcs-web.com/events-and-presentations,
and click on the webcast icon under “Upcoming Events.” To listen to
the live teleconference, dial 800-267-6316 (international callers
may dial 203-518-9814) and provide event ID SURMODICS.
An audio replay of the conference call will be available
beginning at 11:00 a.m. CT today, until 11:00 a.m. CT on Wednesday,
November 22, and can be accessed by dialing 877-660-6853
(international callers may dial 201-612-7415) and entering access
ID 13741954. In addition, the webcast and transcript will be
archived on the company’s website following the call.
About Surmodics, Inc.
Surmodics, Inc. is a leading provider of performance coating
technologies for intravascular medical devices and chemical and
biological components for in vitro diagnostic immunoassay tests and
microarrays. Surmodics also develops and commercializes highly
differentiated vascular intervention medical devices that are
designed to address unmet clinical needs and engineered to the most
demanding requirements. This key growth strategy leverages the
combination of the company’s expertise in proprietary surface
modification and drug-delivery coating technologies, along with its
device design, development and manufacturing capabilities. The
company’s mission is to improve the detection and treatment of
disease. Surmodics is headquartered in Eden Prairie, Minnesota. For
more information, visit www.surmodics.com. The content of
Surmodics’ website is not part of this press release or part of any
filings that the company makes with the SEC.
Safe Harbor for Forward-looking Statements
This press release, and disclosures related to it, contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements that are not
historical or current facts, including statements regarding: future
success; our foundation for growth and commitment to executing on
our growth strategy efficiently to maintain a healthy balance sheet
while positioning Surmodics for strong, sustainable, long-term
growth and value creation; our ability to make future draws on our
term loan facility; our ability to access dept capital;
expectations about Abbott’s launch and initial commercialization of
the SurVeil DCB; our expected fulfillment of Abbott’s initial
stocking order of the SurVeil DCB products; the potential of the
SurVeil DCB to be a growth catalyst and the market opportunity for
the product; our belief that Abbott is well-positioned to take
advantage of attractive market dynamics for the SurVeil DCB and our
commitment to supporting it; expectations about the three-year
results of the TRANSCEND pivotal trial being presented; our future
prospects; our product pipeline; continuing the sales momentum of
our Sublime radial and Pounce arterial thrombectomy platforms in
fiscal 2024; our expectations regarding our Preside coating
technology; our expectations related to additional limited market
evaluation cases for our Pounce venous thrombectomy system and its
commercial launch; our fiscal 2024 financial guidance and related
assumptions, including assumptions in our revenue guidance provided
for modeling purposes, expected changes in revenues, expected
license fee revenue related to the SurVeil DCB, expected product
gross margins for fiscal 2024 and factors that we expect to impact
product gross margins, expected operating expenses, expected
interest expense, and expected tax expense; expected revenue for
the first quarter of our fiscal 2024; our expected cash balance at
the end of fiscal 2024 and expected uses of cash; expectations
related to further borrowings during fiscal 2024 under our credit
agreement; our fiscal 2024 strategic objectives; and further and
future growth and value creation in the years to come, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties, and important factors could cause
actual results to differ materially from those anticipated,
including, without limitation: (1) our ability to successfully
develop and commercialize our SurVeil DCB (including realization of
the full potential benefits of our agreement with Abbott), Avess™
DCB, Sundance DCB, and other proprietary products; (2) our reliance
on third parties (including our customers and licensees) and their
failure to successfully develop, obtain regulatory approval for,
market, and sell products incorporating our technologies; (3)
possible adverse market conditions and possible adverse impacts on
our cash flows; (4) our ability to successfully and profitably
commercialize our vascular intervention products; (5) supply chain
constraints; (6) whether our operating expenses are effective in
generating profitable revenues; (7) disruptions to our business
from our plan to reduce our use of cash announced in the second
quarter of fiscal 2023, the failure of such plan to achieve its
objectives, or cost and expenses associated with such plan; and (8)
the factors identified under “Risk Factors” in Part I, Item 1A of
our Annual Report on Form 10-K for the fiscal year ended September
30, 2022 and subsequent SEC filings. These reports are available in
the Investors section of our website at
https://surmodics.gcs-web.com and at the SEC website at
www.sec.gov. Forward-looking statements speak only as of the date
they are made, and we undertake no obligation to update them in
light of new information or future events.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with
U.S. generally accepted accounting principles, or GAAP, Surmodics
is reporting non-GAAP financial results including total revenue
excluding SurVeil DCB license fee revenue, Medical Device revenue
excluding SurVeil DCB license fee revenue, EBITDA and Adjusted
EBITDA, non-GAAP operating (loss) income, non-GAAP operating (loss)
income percentage, non-GAAP (loss) income before income taxes,
non-GAAP net income (loss), and non-GAAP income (loss) per diluted
share. We believe that these non-GAAP measures, when read in
conjunction with the company’s GAAP financial statements, provide
meaningful insight into our operating performance excluding certain
event-specific matters, and provide an alternative perspective of
our results of operations. We use non-GAAP measures, including
those set forth in this release, to assess our operating
performance and to determine payouts under our executive
compensation programs. We also are providing guidance on a range of
non-GAAP revenue and loss per diluted share for fiscal 2024. We
believe that presentation of certain non-GAAP measures allows
investors to review our results of operations from the same
perspective as management and our board of directors and
facilitates comparisons of our current results of operations. The
method we use to produce non-GAAP results is not in accordance with
GAAP and may differ from the methods used by other companies.
Non-GAAP results should not be regarded as a substitute for
corresponding GAAP measures but instead should be utilized as a
supplemental measure of operating performance in evaluating our
business. Non-GAAP measures do have limitations in that they do not
reflect certain items that may have a material impact on our
reported financial results. As such, these non-GAAP measures should
be viewed in conjunction with both our financial statements
prepared in accordance with GAAP and the reconciliation of the
supplemental non-GAAP financial measures to the comparable GAAP
results provided for the specific periods presented, which are
attached to this release.
Surmodics, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (in
thousands, except per share data) (Unaudited)
Three Months Ended September
30,
Fiscal Year Ended September
30,
2023
2022
2023
2022
Revenue:
Product sales
$
15,363
$
14,394
$
60,614
$
54,621
Royalties and license fees
10,051
9,510
62,398
36,248
Research, development and other
2,556
2,084
9,572
9,082
Total revenue
27,970
25,988
132,584
99,951
Operating costs and expenses:
Product costs
7,039
5,597
24,965
20,342
Research and development
9,696
12,259
46,595
50,609
Selling, general and administrative
12,807
13,779
51,884
46,935
Acquired intangible asset amortization
878
966
3,537
4,150
Restructuring expense
—
—
1,282
—
Contingent consideration (gain)
expense
—
—
(829
)
12
Total operating costs and expenses
30,420
32,601
127,434
122,048
Operating (loss) income
(2,450
)
(6,613
)
5,150
(22,097
)
Other expense, net
(339
)
(179
)
(2,663
)
(396
)
(Loss) income before income taxes
(2,789
)
(6,792
)
2,487
(22,493
)
Income tax benefit (expense)
9,483
(7,936
)
(4,023
)
(4,781
)
Net income (loss)
$
6,694
$
(14,728
)
$
(1,536
)
$
(27,274
)
Basic income (loss) per share
$
0.48
$
(1.06
)
$
(0.11
)
$
(1.96
)
Diluted income (loss) per share
$
0.47
$
(1.06
)
$
(0.11
)
$
(1.96
)
Weighted average number of shares
outstanding:
Basic
14,063
13,944
14,031
13,916
Diluted
14,152
13,944
14,031
13,916
Surmodics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (in thousands)
September 30,
2023
2022
Assets
(Unaudited)
(See Note)
Current Assets:
Cash and cash equivalents
$
41,419
$
18,998
Available-for-sale securities
3,933
—
Accounts receivable, net
10,850
10,452
Contract assets — royalties and license
fees
7,796
7,116
Inventories, net
14,839
11,819
Prepaids and other
7,854
9,202
Total Current Assets
86,691
57,587
Property and equipment, net
26,026
27,148
Intangible assets, net
26,206
28,145
Goodwill
42,946
40,710
Other assets
3,864
4,769
Total Assets
$
185,733
$
158,359
Liabilities and Stockholders’
Equity
Current Liabilities:
Short-term borrowings
—
10,000
Deferred revenue
4,378
4,160
Other current liabilities
19,576
17,919
Total Current Liabilities
23,954
32,079
Long-term debt, net
29,405
—
Deferred revenue
2,400
5,088
Other long-term liabilities
10,064
12,800
Total Liabilities
65,823
49,967
Total Stockholders’ Equity
119,910
108,392
Total Liabilities and Stockholders’
Equity
$
185,733
$
158,359
Note: Derived from audited financial
statements as of the date indicated.
Surmodics, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (in
thousands) (Unaudited)
Fiscal Year Ended September
30,
2023
2022
Operating Activities:
Net loss
$
(1,536
)
$
(27,274
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
8,522
9,142
Stock-based compensation
7,605
7,057
Deferred taxes
(181
)
5,268
Other
340
860
Change in operating assets and
liabilities:
Accounts receivable and contract
assets
(977
)
(1,522
)
Inventories
(3,020
)
(5,060
)
Prepaids and other
—
(665
)
Accounts payable
(183
)
1,608
Accrued liabilities
(1,024
)
132
Income taxes
3,438
(1,069
)
Deferred revenue
(2,470
)
(5,700
)
Net cash provided by (used in) operating
activities
10,514
(17,223
)
Investing Activities:
Purchases of property and equipment
(2,918
)
(3,370
)
Purchases of available-for-sale
securities
(3,904
)
—
Maturities of available-for-sale
securities
—
9,600
Net cash (used in) provided by investing
activities
(6,822
)
6,230
Financing Activities:
Payments on short-term borrowings
(10,000
)
—
Proceeds from issuance of long-term
debt
29,664
—
Payment of debt issuance costs
(614
)
—
Issuance of common stock
1,252
1,246
Payments for taxes related to net share
settlement of equity awards
(918
)
(1,121
)
Payments for acquisition of in-process
research and development
(978
)
(500
)
Net cash provided by (used in) financing
activities
18,406
(375
)
Effect of exchange rate changes on
cash
323
(787
)
Net change in cash and cash
equivalents
22,421
(12,155
)
Cash and Cash Equivalents:
Beginning of year
18,998
31,153
End of year
$
41,419
$
18,998
Surmodics, Inc. and Subsidiaries
Supplemental Revenue Information (in thousands)
(Unaudited)
Three Months Ended
Fiscal 2023 vs. 2022
Dec 31,
Mar 31,
Jun 30,
Sep 30,
Fiscal
Increase (Decrease)
2022
2023
2023
2023
2023
$
%
Medical Device Revenue
Product sales
$
8,380
$
7,914
$
9,299
$
8,533
$
34,126
$
6,196
22
%
Royalties & license fees – performance
coatings
7,469
8,098
8,286
8,959
32,812
2,265
7
%
License fees – SurVeil DCB(1)
1,296
1,331
25,867
1,092
29,586
23,885
419
%
R&D and other
1,873
2,364
2,562
2,460
9,259
1,048
13
%
Medical Device revenue
19,018
19,707
46,014
21,044
105,783
33,394
46
%
In Vitro Diagnostics Revenue
Product sales
5,854
7,436
6,368
6,830
26,488
(203
)
(1
)%
R&D and other
61
55
101
96
313
(558
)
(64
)%
In Vitro Diagnostics revenue
5,915
7,491
6,469
6,926
26,801
(761
)
(3
)%
Total Revenue
$
24,933
$
27,198
$
52,483
$
27,970
$
132,584
$
32,633
33
%
Medical Device revenue, excluding
SurVeil DCB license fees(1)
$
17,722
$
18,376
$
20,147
$
19,952
$
76,197
$
9,509
14
%
Total Revenue, excluding SurVeil DCB
license fees(1)
$
23,637
$
25,867
$
26,616
$
26,878
$
102,998
$
8,748
9
%
Three Months Ended
Dec 31,
Mar 31,
Jun 30,
Sep 30,
Fiscal
2021
2022
2022
2022
2022
Medical Device Revenue
Product sales
$
6,788
$
6,441
$
6,741
$
7,960
$
27,930
Royalties & license fees – performance
coatings
6,937
8,369
7,827
7,414
30,547
License fees – SurVeil DCB(1)
1,162
1,475
968
2,096
5,701
R&D and other
2,021
2,168
1,992
2,030
8,211
Medical Device revenue
16,908
18,453
17,528
19,500
72,389
In Vitro Diagnostics Revenue
Product sales
5,556
7,523
7,178
6,434
26,691
R&D and other
539
130
148
54
871
In Vitro Diagnostics revenue
6,095
7,653
7,326
6,488
27,562
Total Revenue
$
23,003
$
26,106
$
24,854
$
25,988
$
99,951
Medical Device revenue, excluding
SurVeil DCB license fees(1)
$
15,746
$
16,978
$
16,560
$
17,404
$
66,688
Total Revenue, excluding SurVeil DCB
license fees(1)
$
21,841
$
24,631
$
23,886
$
23,892
$
94,250
Surmodics, Inc. and Subsidiaries
Supplemental Segment Information (in thousands)
(Unaudited)
Three Months Ended September
30,
Fiscal Year Ended September
30,
2023
2022
2023
2022
Operating (Loss) Income:
Medical Device
$
(2,399
)
$
(6,211
)
$
5,084
$
(22,923
)
In Vitro Diagnostics
3,187
2,811
12,637
13,073
Total segment operating income (loss)
788
(3,400
)
17,721
(9,850
)
Corporate
(3,238
)
(3,213
)
(12,571
)
(12,247
)
Total (Loss) Income from
Operations
$
(2,450
)
$
(6,613
)
$
5,150
$
(22,097
)
Surmodics, Inc. and Subsidiaries
Reconciliation of GAAP Measures to Non-GAAP Amounts
Schedule of EBITDA and Adjusted EBITDA (in thousands)
(Unaudited)
Three Months Ended September
30,
Fiscal Year Ended September
30,
2023
2022
2023
2022
Net Income (Loss)
$
6,694
$
(14,728
)
$
(1,536
)
$
(27,274
)
Income tax (benefit) expense
(9,483
)
7,936
4,023
4,781
Depreciation and amortization
2,157
2,240
8,522
9,142
Interest expense, net
895
188
3,489
598
Investment income, net
(546
)
(26
)
(1,077
)
(99
)
EBITDA
(283
)
(4,390
)
13,421
(12,852
)
Adjustments:
Stock-based compensation expense
1,943
1,859
7,605
7,057
Restructuring expense(2)
—
—
1,282
—
Contingent consideration fair value
adjustment(3)
—
—
(829
)
—
Adjusted EBITDA
$
1,660
$
(2,531
)
$
21,479
$
(5,795
)
Surmodics, Inc. and Subsidiaries Net
Income (Loss) and Diluted EPS GAAP to Non-GAAP Reconciliation
(in thousands, except per share data) (Unaudited)
For the Three Months Ended
September 30, 2023
Operating Loss
Loss Before
Income Taxes
Net Income(6)
Diluted EPS
GAAP
$
(2,450
)
(8.8
)%
$
(2,789
)
$
6,694
$
0.47
Adjustments:
Amortization of acquired intangible
assets(4)
878
3.2
%
878
812
0.06
Non-GAAP
$
(1,572
)
(5.6
)%
$
(1,911
)
$
7,506
$
0.53
Diluted weighted average shares
outstanding(7)
14,152
For the Three Months Ended
September 30, 2022
Operating Loss
Loss Before
Income Taxes
Net Loss(6)
Diluted EPS
GAAP
$
(6,613
)
(25.4
)%
$
(6,792
)
$
(14,728
)
$
(1.06
)
Adjustments:
Amortization of acquired intangible
assets(4)
966
3.7
%
966
906
0.07
Tax expense from full valuation allowance
against U.S. deferred tax assets(5)
—
—
—
10,151
0.73
Non-GAAP
$
(5,647
)
(21.7
)%
$
(5,826
)
$
(3,671
)
$
(0.26
)
Diluted weighted average shares
outstanding(7)
13,944
Fiscal Year Ended September
30, 2023
Operating Income
Income Before
Income Taxes
Net (Loss)
Income(6)
Diluted EPS
GAAP
$
5,150
3.9
%
$
2,487
$
(1,536
)
$
(0.11
)
Adjustments:
Amortization of acquired intangible
assets(4)
3,537
2.6
%
3,537
3,279
0.24
Restructuring expense(2)
1,282
1.0
%
1,282
1,282
0.09
Contingent consideration fair value
adjustment(3)
(829
)
(0.6
)%
(829
)
(829
)
(0.06
)
Non-GAAP
$
9,140
6.9
%
$
6,477
$
2,196
$
0.16
Diluted weighted average shares
outstanding(7)
14,071
Fiscal Year Ended September
30, 2022
Operating Loss
Loss Before
Income Taxes
Net Loss(6)
Diluted EPS
GAAP
$
(22,097
)
(22.1
)%
$
(22,493
)
$
(27,274
)
$
(1.96
)
Adjustments:
Amortization of acquired intangible
assets(4)
4,150
4.1
%
4,150
3,888
0.28
Tax expense from full valuation allowance
against U.S. deferred tax assets(5)
—
—
—
10,151
0.73
Non-GAAP
$
(17,947
)
(18.0
)%
$
(18,343
)
$
(13,235
)
$
(0.95
)
Diluted weighted average shares
outstanding(7)
13,916
Surmodics, Inc. and Subsidiaries
Guidance Reconciliation: Estimated Revenue For the Fiscal
Year Ending September 30, 2024 (in millions) (Unaudited)
Fiscal 2024 Full-Year
Estimate
Increase (Decrease)
Low
High
Low
High
Fiscal 2023
Total Revenue
$
116
$
121
(13
)%
(9
)%
$
133
License fees – SurVeil DCB(1)
(4
)
(4
)
(86
)%
(86
)%
(30
)
Total Revenue, excluding SurVeil DCB
license fees(1)
$
112
$
117
9
%
14
%
$
103
Surmodics, Inc. and Subsidiaries
Guidance Reconciliation: Estimated Non-GAAP Diluted EPS
For the Fiscal Year Ending September 30, 2024 (shares in
thousands) (Unaudited)
Fiscal 2024 Full-Year
Estimate
Low
High
GAAP Diluted EPS
$
(1.55
)
$
(1.20
)
Amortization of acquired intangibles per
diluted share(4)
0.23
0.23
Non-GAAP Diluted EPS
$
(1.32
)
$
(0.97
)
Diluted weighted average shares
outstanding
14,150
(1)
SurVeil DCB license fee revenue represents
revenue recognition on milestone payments received under the
company’s Development and Distribution Agreement with Abbott
(“Abbott Agreement”).
(2)
Restructuring expense consists of
severance and related costs specifically associated with a
workforce restructuring implemented in the second quarter of fiscal
2023.
(3)
Represents accounting adjustments to state
acquisition-related contingent consideration liabilities at their
estimated fair value as of the period end date, including
adjustments to the liabilities’ fair values related to changes in
the timing and/or probability of achieving milestones and accretion
expense for the passage of time.
(4)
Represents amortization of business
acquisition-related intangible assets and associated tax impact. A
significant portion of the business acquisition-related
amortization is not tax deductible.
(5)
Represents the non-cash charge to income
tax expense that resulted from the establishment of a full
valuation allowance against U.S. net deferred tax assets in the
fourth quarter of fiscal 2022. A valuation allowance is required to
be recognized against deferred tax assets if, based on the
available evidence, it is more likely than not (defined as a
likelihood of more than 50%) that all or a portion of such assets
will not be realized. The relevant guidance weighs available
evidence such as historical cumulative taxable losses more heavily
than future profitability. The valuation allowance has no impact on
the availability of U.S. net deferred tax assets to offset future
tax liabilities.
(6)
Net income (loss) includes the effect of
the above adjustments on income tax benefit (expense), taking into
account deferred taxes net of valuation allowances, as well as
non-deductible items. Income tax impacts were estimated using the
applicable statutory rate (21% in the U.S. and 12.5% in
Ireland).
(7)
Diluted weighted average shares
outstanding used in the calculation of EPS was the same for GAAP
EPS and Non-GAAP EPS for the three months ended September 30, 2023
and 2022 and the fiscal year ended September 30, 2022. For the
fiscal year ended September 30, 2023, diluted weighted average
shares outstanding used in the calculation of EPS was 14,031 for
GAAP EPS due to the net loss in the period, and 14,071 for Non-GAAP
EPS corresponding to the Non-GAAP net income in the period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231108361238/en/
Surmodics Investor Inquiries Jack Powell, Investor Relations
ir@surmodics.com
SurModics (NASDAQ:SRDX)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
SurModics (NASDAQ:SRDX)
Gráfica de Acción Histórica
De May 2023 a May 2024