ZELTIQ® (Nasdaq:ZLTQ), a medical technology company focused on
developing and commercializing products utilizing its proprietary
controlled-cooling technology platform, announced today financial
results for the fourth quarter and full year 2016.
Mark Foley, President and Chief Executive
Officer, said, “We are incredibly pleased to announce another year
of record revenue performance, with full-year revenue growth of 39%
and fourth quarter revenue surpassing the $100 million mark for the
first time in the Company’s history. Additionally, we delivered
strong profitability with Q4 net income of $10.3 million, or 9.8%
of revenue, and adjusted EBITDA of $23.1 million, or 21.9% of
revenue, highlighting the leverage in our business model. Our
strong fourth quarter results were driven by a company record 186
new account openings in North America, consumable revenue growth of
54%, continued momentum internationally, and the ongoing successful
introduction of our innovative new applicators, CoolAdvantage® and
CoolAdvantage+®, which have already been adopted in approximately
50% of our North American account base. Our direct to consumer
advertising program continues to exceed our expectations by
delivering greater than a dollar of return for each dollar spent
while continuing to raise consumer awareness and drive new patients
into the aesthetic channel. We continue to be very pleased with the
consumable revenue growth and utilization lift this nationwide
program has delivered.”
Fourth Quarter Financial
Review
Total revenue for the fourth quarter of 2016 was
$105.1 million, consisting of $51.2 million of system revenue and
$53.9 million of consumable revenue. This compares to total revenue
of $78.2 million, consisting of $43.2 million of system revenue and
$35.0 million of consumable revenue, for the fourth quarter 2015.
Total revenue cycles shipped increased 47% to 400,971 for the
fourth quarter of 2016, compared to 273,112 for the fourth quarter
of 2015.
Gross profit was $75.7 million, or 72% of
revenue, for the fourth quarter 2016, compared to gross profit of
$52.4 million, or 67% of revenue for the fourth quarter 2015.
Operating expenses for the fourth quarter of 2016 were $59.5
million, compared to $50.6 million for the fourth quarter 2015.
Income from operations for the fourth quarter
2016 was $16.3 million, compared to income from operations of $1.8
million for the fourth quarter 2015. Net income for the fourth
quarter 2016 was $10.3 million, or 9.8% of revenue and $0.25 per
diluted share, compared to net income of $40.6 million, or 51.9% of
revenue and $0.99 per diluted share for the fourth quarter of 2015.
Weighted average diluted shares outstanding were 41.8 million for
the fourth quarter 2016, compared to weighted average diluted
shares of 41.0 million for the fourth quarter 2015.
On a non-GAAP basis, the company reported
adjusted EBITDA of $23.1 million, or 21.9% of revenue, for the
fourth quarter 2016, compared to $5.5 million, or 7.0% of revenue,
for the fourth quarter 2015. As announced in the company’s third
quarter earnings release, the company moved its headquarters and
vacated its existing facility during the fourth quarter of 2016. As
part of this transition, the company recorded a charge of $1.2
million during fourth quarter 2016 to account for the remaining
lease liability and other related expenses. This charge is an
adjustment from net income to calculate fourth quarter adjusted
EBITDA.
Cash and cash equivalents, short-term
investments, and long-term investments were $58.4 million as of
December 31, 2016, compared to $52.1 million as of December 31,
2015, and $65.0 million, as of September 30, 2016.
Full Year Financial Review
Total revenue for the full year 2016 was $354.2
million, consisting of $158.0 million of system revenue and $196.2
million of consumable revenue. This compares to total revenue of
$255.4 million, consisting of $130.7 million of system revenue and
$124.7 million of consumable revenue for the full year 2015. Total
revenue cycles shipped increased 49% to 1,465,365 for the full year
2016, compared to 980,339 for the full year 2015.
Gross profit was $250.7 million, or 71% of
revenue, for the full year 2016, compared to gross profit of $181.0
million, or 71% of revenue, for the full year 2015. Operating
expenses for the full year 2016 were $237.5 million, compared to
$177.3 million for the full year 2015.
Income from operations for the full year 2016
was $13.2 million, compared to income from operations of $3.7
million for the full year 2015. Net income for the full year 2016
was $0.7 million, or 0.2% of revenue and $0.02 per diluted share,
compared to net income of $41.8 million for the full year 2015, or
16.4% of revenue and $1.02 per diluted share. Weighted average
diluted shares outstanding were 41.5 million for the full year
2016, compared to weighted average diluted shares outstanding of
40.8 million for the full year 2015.
On a non-GAAP basis, ZELTIQ reported adjusted
EBITDA of $35.3 million, or 10.0% of revenue, for the full year
2016, compared to $19.3 million, or 7.6% of revenue, for the full
year 2015.
Subsequent Events
On February 13, 2017, ZELTIQ entered into a
definitive agreement with Allergan Holdco US, Inc. (“Allergan US”)
and Blizzard Merger Sub, Inc. (“Merger Sub”), each a subsidiary of
Allergan plc (“Allergan”), pursuant to which, upon the terms and
subject to the conditions set forth therein, Merger Sub will merge
with and into ZELTIQ, with ZELTIQ continuing as the surviving
entity and becoming a wholly-owned, indirect subsidiary of
Allergan. As a result of the merger, each share of ZELTIQ’s
common stock issued and outstanding immediately prior to the
effective time of the merger (other than shares held (1) by ZELTIQ
(or held in ZELTIQ’s treasury), (2) by Allergan US, Merger Sub or
any other wholly owned subsidiary of Allergan US or (3) by
stockholders of ZELTIQ who have validly exercised their dissenters’
rights under Delaware law) will be converted into the right to
receive $56.50 in cash, without interest and subject to any
required tax withholding. Subject to the satisfaction or
waiver of various closing conditions, including the approval of the
merger by ZELTIQ's stockholders and the expiration or termination
of the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, the merger is expected to be completed in
the second half of 2017. ZELTIQ is no longer providing 2017
financial guidance and will not be hosting a fourth quarter
conference call, due to the definitive agreement to be acquired by
Allergan.
Additional information regarding ZELTIQ’s
results can be found in ZELTIQ’s Supplemental Financial and
Operational Information schedule by CLICKING HERE or by
visiting the Investor Relations section of ZELTIQ’s website at
www.zeltiq.com.
Use of Non-GAAP Financial
Measures
ZELTIQ has supplemented its GAAP net income
(loss) with a non-GAAP measure of adjusted EBITDA (and related
adjusted EBITDA margin). 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. Non-GAAP adjusted
EBITDA excludes interest income and other (expense) income, income
tax expense, depreciation, amortization, stock based compensation
expense, and lease termination charges.
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 ZELTIQ’s
consolidated financial statements prepared in accordance with GAAP
and the reconciliation of the non-GAAP financial measure
provided.
About ZELTIQ®
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 expectations for the expected timing of the
closing of the merger with Allergan US, are 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’s sales and
marketing plans may fail to increase sales as ZELTIQ expects; the
closing of the merger is subject to the satisfaction of closing
conditions which, if not met, may cause the closing of the merger
to be delayed or not occur at all; as well as those other risks and
uncertainties set forth in ZELTIQ’s Quarterly Report on Form 10-Q
for the third quarter ended September 30, 2016, filed with the SEC
on November 9, 2016. 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.
Additional Information and Where to Find It
In connection with the proposed transaction,
ZELTIQ Aesthetics, Inc. will be filing documents with the SEC,
including preliminary and definitive proxy statements relating to
the proposed transaction. The definitive proxy statement will
be mailed to ZELTIQ Aesthetics stockholders in connection with the
proposed transaction. INVESTORS AND SECURITY HOLDERS ARE
URGED TO READ THE PRELIMINARY AND DEFINITIVE PROXY STATEMENTS WHEN
THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and
security holders may obtain free copies of these documents (when
they are available) and other related documents filed with the SEC
at the SEC’s web site at www.sec.gov, on ZELTIQ Aesthetics’ website
at www.zeltiq.com and by contacting ZELTIQ Aesthetics Investor
Relations at (925) 474-2422.
ZELTIQ Aesthetics, Allergan plc and their
respective directors and executive officers may be deemed
participants in the solicitation of proxies from the stockholders
of ZELTIQ Aesthetics in connection with the proposed
transaction. Information regarding the special interests of
ZELTIQ Aesthetics’ directors and executive officers in the proposed
transaction will be included in the proxy statement described
above. These documents are available free of charge at the
SEC’s web site at www.sec.gov and from ZELTIQ Aesthetics
Investor Relations as described above. Information about Allergan’s
directors and executive officers can be found in Allergan’s
definitive proxy statement filed with the SEC on March 25, 2016.
You can obtain a free copy of this document at the SEC’s website at
www.sec.gov or by accessing Allergan’s website at
www.allergan.com and clicking on the “Investor Relations” link
and then clicking on the “SEC Filings” link.
ZELTIQ Aesthetics, Inc. |
Condensed Consolidated Balance Sheets |
(In thousands) |
(Unaudited) |
|
|
|
December 31, 2016 |
|
December 31,2015 |
ASSETS |
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
54,815 |
|
|
$ |
35,710 |
|
Short-term investments |
|
1,603 |
|
|
12,867 |
|
Accounts
receivable, net of allowance of $1,109 in 2016 and $1,183 in 2015
|
|
55,269 |
|
|
33,359 |
|
Inventory, net |
|
37,963 |
|
|
28,095 |
|
Prepaid
expenses and other current assets |
|
15,614 |
|
|
11,771 |
|
Total
current assets |
|
165,264 |
|
|
121,802 |
|
Long-term
investments |
|
1,961 |
|
|
3,490 |
|
Restricted cash |
|
822 |
|
|
452 |
|
Property
and equipment, net |
|
12,140 |
|
|
6,969 |
|
Intangible asset, net |
|
4,442 |
|
|
5,092 |
|
Long-term
deferred tax assets |
|
29,093 |
|
|
40,475 |
|
Other
assets |
|
623 |
|
|
547 |
|
Total
assets |
|
$ |
214,345 |
|
|
$ |
178,827 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Accounts
payable |
|
$ |
16,935 |
|
|
$ |
10,903 |
|
Accrued
compensation |
|
18,798 |
|
|
14,887 |
|
Deferred
revenue |
|
9,142 |
|
|
7,682 |
|
Accrued
expenses and other current liabilities |
|
27,884 |
|
|
19,928 |
|
Total
current liabilities |
|
72,759 |
|
|
53,400 |
|
Non-current
liabilities |
|
3,859 |
|
|
1,125 |
|
Total
liabilities |
|
$ |
76,618 |
|
|
$ |
54,525 |
|
STOCKHOLDERS’
EQUITY: |
|
|
|
|
Total
stockholders’ equity |
|
137,727 |
|
|
124,302 |
|
Total
liabilities and stockholders’ equity |
|
$ |
214,345 |
|
|
$ |
178,827 |
|
ZELTIQ Aesthetics, Inc. |
Condensed Consolidated Statement of
Operations |
(In thousands, except share and per share
data) |
(Unaudited) |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Revenue |
|
$ |
105,110 |
|
|
$ |
78,225 |
|
|
$ |
354,201 |
|
|
$ |
255,416 |
|
Cost of revenue |
|
29,370 |
|
|
25,840 |
|
|
103,527 |
|
|
74,375 |
|
Gross
profit |
|
75,740 |
|
|
52,385 |
|
|
250,674 |
|
|
181,041 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Sales and
marketing |
|
42,885 |
|
|
38,204 |
|
|
174,169 |
|
|
125,458 |
|
General
and administrative |
|
10,169 |
|
|
6,824 |
|
|
37,759 |
|
|
28,980 |
|
Research
and development |
|
6,428 |
|
|
5,557 |
|
|
25,522 |
|
|
22,909 |
|
Total
operating expenses |
|
59,482 |
|
|
50,585 |
|
|
237,450 |
|
|
177,347 |
|
Income from
operations |
|
16,258 |
|
|
1,800 |
|
|
13,224 |
|
|
3,694 |
|
Interest income
(expense), net |
|
4 |
|
|
18 |
|
|
(45 |
) |
|
58 |
|
Other income (expense),
net |
|
(954 |
) |
|
87 |
|
|
1,599 |
|
|
(420 |
) |
Income before income
taxes |
|
15,308 |
|
|
1,905 |
|
|
14,778 |
|
|
3,332 |
|
Provision for (benefit
from) income taxes |
|
5,031 |
|
|
(38,701 |
) |
|
14,084 |
|
|
(38,470 |
) |
Net income |
|
$ |
10,277 |
|
|
$ |
40,606 |
|
|
$ |
694 |
|
|
$ |
41,802 |
|
Net income per
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.26 |
|
|
$ |
1.04 |
|
|
$ |
0.02 |
|
|
$ |
1.08 |
|
Diluted |
|
$ |
0.25 |
|
|
$ |
0.99 |
|
|
$ |
0.02 |
|
|
$ |
1.02 |
|
Shares used to compute
net income per share: |
|
|
|
|
|
|
|
|
Basic |
|
40,045 |
|
|
39,094 |
|
|
39,645 |
|
|
38,755 |
|
Diluted |
|
41,834 |
|
|
40,967 |
|
|
41,461 |
|
|
40,796 |
|
ZELTIQ Aesthetics, Inc. |
Condensed Consolidated Statement of Cash
Flows |
(In thousands) |
(Unaudited) |
|
|
|
Years Ended |
|
|
December 31, |
|
|
2016 |
|
2015 |
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
Net
income |
|
$ |
694 |
|
|
$ |
41,802 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
Depreciation and amortization |
|
3,627 |
|
|
2,423 |
|
Stock-based compensation |
|
17,234 |
|
|
13,219 |
|
Deferred
income tax provision (benefit) |
|
11,382 |
|
|
(40,405 |
) |
Tax
benefits from employee stock plans |
|
1,172 |
|
|
1,357 |
|
Excess
tax benefits from stock-based compensation |
|
(1,172 |
) |
|
(1,357 |
) |
Amortization of investment premium, net |
|
20 |
|
|
89 |
|
Provision
for doubtful accounts receivable |
|
1,147 |
|
|
859 |
|
Provision
for excess and obsolete inventory |
|
1,909 |
|
|
270 |
|
Loss on
disposal and write-off of property and equipment |
|
216 |
|
|
6 |
|
Gain on
foreign currency exchange rates |
|
(693 |
) |
|
— |
|
Changes
in operating assets and liabilities: |
|
|
|
|
Accounts
receivable |
|
(23,492 |
) |
|
(12,920 |
) |
Inventory |
|
(12,548 |
) |
|
(12,941 |
) |
Other
current and non-current assets |
|
(4,111 |
) |
|
(5,338 |
) |
Accounts
payable |
|
6,334 |
|
|
4,485 |
|
Deferred
revenue |
|
1,705 |
|
|
2,254 |
|
Other
current and non-current liabilities |
|
12,949 |
|
|
13,940 |
|
Net cash
provided by operating activities |
|
16,373 |
|
|
7,743 |
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
Purchase
of investments |
|
(3,208 |
) |
|
(16,024 |
) |
Proceeds
from sale of investments |
|
8,683 |
|
|
— |
|
Proceeds
from maturity of investments |
|
7,317 |
|
|
20,654 |
|
Purchase
of property and equipment |
|
(7,065 |
) |
|
(4,279 |
) |
Change in
restricted cash |
|
(421 |
) |
|
94 |
|
Net cash
provided by investing activities |
|
5,306 |
|
|
445 |
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
Principal
payments on capital leases |
|
(125 |
) |
|
(120 |
) |
Proceeds
from issuance of common stock upon exercise of stock options |
|
1,911 |
|
|
4,136 |
|
Proceeds
from stock issued under employee stock purchase plan |
|
3,160 |
|
|
2,492 |
|
Income
tax withholdings related to vested RSUs |
|
(7,187 |
) |
|
(8,283 |
) |
Excess
tax benefits from stock-based compensation |
|
1,172 |
|
|
1,357 |
|
Net cash
used in financing activities |
|
(1,069 |
) |
|
(418 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
|
(1,505 |
) |
|
(709 |
) |
NET INCREASE IN CASH
AND CASH EQUIVALENTS |
|
19,105 |
|
|
7,061 |
|
CASH AND CASH
EQUIVALENTS—Beginning of period |
|
35,710 |
|
|
28,649 |
|
CASH AND CASH
EQUIVALENTS—End of period |
|
$ |
54,815 |
|
|
$ |
35,710 |
|
ZELTIQ Aesthetics, Inc. |
Reconciliation of Net Income (Loss) to Adjusted
Earnings Before Interest, Taxes, Depreciation, |
Amortization and Stock-Based Compensation (Adjusted
EBITDA) |
(In thousands, except for percentages) |
(Unaudited) |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
Dollars |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net income, as
reported |
|
$ |
10,277 |
|
|
$ |
40,606 |
|
|
$ |
694 |
|
|
$ |
41,802 |
|
Adjustments to net
income: |
|
|
|
|
|
|
|
|
Interest
(income) expense and other, net |
|
950 |
|
|
(105 |
) |
|
(1,554 |
) |
|
362 |
|
Provision
for income taxes |
|
5,031 |
|
|
(38,701 |
) |
|
14,084 |
|
|
(38,470 |
) |
Depreciation and amortization |
|
1,159 |
|
|
711 |
|
|
3,627 |
|
|
2,423 |
|
Stock-based compensation expense |
|
4,429 |
|
|
2,958 |
|
|
17,234 |
|
|
13,219 |
|
Lease
termination charge |
|
1,213 |
|
|
— |
|
|
1,213 |
|
|
— |
|
Total
adjustments to net income |
|
12,782 |
|
|
(35,137 |
) |
|
34,604 |
|
|
(22,466 |
) |
Adjusted EBITDA |
|
$ |
23,059 |
|
|
$ |
5,469 |
|
|
$ |
35,298 |
|
|
$ |
19,336 |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
As a Percentage
of Revenue |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net income |
|
9.8 |
% |
|
51.9 |
% |
|
0.2 |
% |
|
16.4 |
% |
Adjustments to net
income: |
|
|
|
|
|
|
|
|
Interest
(income) expense and other, net |
|
0.9 |
% |
|
(0.1 |
)% |
|
(0.4 |
)% |
|
0.1 |
% |
Provision
for income taxes |
|
4.7 |
% |
|
(49.5 |
)% |
|
4.0 |
% |
|
(15.1 |
)% |
Depreciation and amortization |
|
1.1 |
% |
|
0.9 |
% |
|
1.0 |
% |
|
1.0 |
% |
Stock-based compensation expense |
|
4.2 |
% |
|
3.8 |
% |
|
4.9 |
% |
|
5.2 |
% |
Lease
termination charge |
|
1.2 |
% |
|
— |
% |
|
0.3 |
% |
|
— |
% |
Total
adjustments to net income |
|
12.1 |
% |
|
(44.9 |
)% |
|
9.8 |
% |
|
(8.8 |
)% |
Adjusted EBITDA
margin |
|
21.9 |
% |
|
7.0 |
% |
|
10.0 |
% |
|
7.6 |
% |
CONTACTS:
Investor Relations:
Taylor C. Harris
ZELTIQ, Senior Vice President and CFO
925-474-2500
Nick Laudico
The Ruth Group
646-536-7030
nlaudico@theruthgroup.com
Zeltiq Aesthetics, Inc. (NASDAQ:ZLTQ)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Zeltiq Aesthetics, Inc. (NASDAQ:ZLTQ)
Gráfica de Acción Histórica
De May 2023 a May 2024