DGAP-News: Oxford Immunotec /
Oxford Immunotec Reports Fourth Quarter and Full Year 2013 Financial
Results
04.03.2014 / 13:00
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-- Fourth Quarter Revenues of $10.2 Million Increased 94% Compared to Prior
Year Period
-- 2013 Revenues of $38.8 Million Increased 87% Compared to Prior Year
-- Successfully Completed Initial Public Offering and Nasdaq Listing in
November 2013
OXFORD, United Kingdom and MARLBOROUGH, Mass., March 4, 2014 (GLOBE NEWSWIRE)
-- Oxford Immunotec Global PLC (Nasdaq:OXFD), a global, commercial-stage
diagnostics company committed to improving patient care by providing advanced,
innovative tests in the field of immunology, today announced fourth quarter and
full year 2013 financial results.
'We are pleased with our revenues in the fourth quarter, which came in ahead of
our expectations,' said Dr. Peter Wrighton-Smith, Chief Executive Officer of
Oxford Immunotec. 'We are starting to invest the proceeds of our IPO and we are
enthusiastic about the opportunities to continue to grow the business in 2014.'
By revenue type, total revenues were, in millions:
Three Months Ended December 31, Full Year Ended December 31,
--------------------------------------------------------------
2013 2012 Change 2013 2012 Change
--------------------------------------------------------------
Product $5.0 $2.3 121% $19.9 $9.1 119%
Service 5.2 3.0 73% 18.9 11.6 63%
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Total Revenues $10.2 $5.3 94% $38.8 $20.7 87%
===================== ====================
By geography, total revenues were, in millions:
Three Months Ended December 31, Full Year Ended December 31,
--------------------------------------------------------------
2013 2012 Change 2013 2012 Change
--------------------------------------------------------------
United States $4.8 $2.5 87% $17.3 $10.4 67%
Europe and ROW 2.0 1.8 13% 7.2 6.5 10%
Asia 3.4 0.9 268% 14.3 3.8 277%
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Total Revenues $10.2 $5.3 94% $38.8 $20.7 87%
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Fourth Quarter 2013 Financial Results
Revenues for the fourth quarter of 2013 were $10.2 million, representing 94%
growth over 2012 fourth quarter revenues of $5.3 million.
2013 fourth quarter product revenues were $5.0 million representing a 121%
increase from product revenues of $2.3 million in the fourth quarter of 2012.
The increase in product revenues was primarily attributable to growth in the
Asia region. Service revenues for the fourth quarter of 2013 were $5.2
million, up 73% from 2012 fourth quarter revenues of $3.0 million. The increase
in service revenues was driven by an increase in the number of customers and an
increase in volume from existing customers.
U.S. revenues were $4.8 million in the fourth quarter of 2013 representing 87%
growth over the same period's revenues of $2.5 million in the prior year.
Growth was driven by an increase in the number of customers and an increase in
volume from existing customers.
Europe and Rest of the World revenues were $2.0 million in the fourth quarter
of 2013 representing 13% growth over 2012 fourth quarter revenues of $1.8
million. Results were reflective of the more fragmented nature of this market
and our investment priorities.
Asia revenues were $3.4 million in the fourth quarter of 2013 representing 268%
growth over revenues in the 2012 fourth quarter of $0.9 million. Revenues in
the Asia region were driven by continued strong growth in China combined with
the addition of revenues from Japan, where we obtained marketing approval in
the fourth quarter of 2012.
Gross profit for the fourth quarter of 2013 was $5.8 million, an increase of
$3.8 million over gross profit of $2.0 million in the same period of 2012.
Gross margin was 56.6% an increase of 19.1 percentage points over the gross
margin of 37.5% in the fourth quarter of 2012. The increase in gross margin was
due to an increase in both product margins and service margins. The increase in
product margins was driven by improvements in kit costs, amortization of fixed
costs over increased volume and a favorable standard cost adjustment in the
quarter. The service margin increase was driven primarily by the consolidation
of all U.S. testing into one lab facility in Memphis, TN, kit cost reductions
and significant operational improvements in workflow in the Memphis facility.
Operating expenses were $7.9 million in the fourth quarter of 2013, an increase
of $1.6 million compared to $6.3 million in the same period last year. The
increase in operating expenses was primarily due to the hiring of additional
sales and marketing personnel, an increase in accounting and audit costs
associated with our initial public offering in November of 2013 and an increase
in administrative costs related to being a public company.
EBITDA for the fourth quarter of 2013 was $(2.7) million compared to $(4.2)
million in the fourth quarter of 2012. Adjusted EBITDA was $(1.4) million for
the fourth quarter of 2013 compared to $(4.1) million in the same period in
2012. EBITDA and Adjusted EBTIDA are non-GAAP financial measures.
Net loss for the fourth quarter of 2013 was $3.3 million or $0.38 per share
compared to $4.3 million or $1.99 per share in the fourth quarter of 2012. Net
loss per share was based on 8,721,880 and 2,153,826 weighted average ordinary
shares outstanding for the fourth quarter of 2013 and 2012, respectively.
Cash and cash equivalents were $76.5 million as of December 31, 2013 compared
to $12.6 million as of December 31, 2012. This increase is primarily due to the
successful completion of our initial public offering in November 2013, raising
net proceeds of $63.9 million.
Full Year 2013 Financial Results
Revenues for the full year 2013 were $38.8 million, an increase of $18.1
million over 2012 full year revenues of $20.7 million.
For the full year 2013, product revenues were $19.9 million representing
year-over-year growth of 119% over 2012 revenues of $9.1 million. 2013 service
revenues were $18.9 million, a 63% increase over 2012 service revenues of $11.6
million.
Full year 2013 U.S. revenues were $17.3 million, up 67% over 2012 U.S. revenues
of $10.4 million. 2013 revenues in Europe and the Rest of the World region were
$7.2 million, a 10% improvement from the prior year revenues of $6.5 million.
Revenues in Asia were $14.3 million representing growth of 277% on a
year-over-year basis from the 2012 Asia revenues of $3.8 million.
Gross profit was $20.2 million for the full year 2013, an increase of $11.9
million over $8.3 million from the prior year. Gross margin for full year 2013
was 52.0% compared to 39.9% in full year 2012. Margin expansion was primarily
driven by reduction in kit costs, amortization of fixed costs over increased
volume, lab consolidation and operating efficiencies described above.
2013 operating expenses were $27.5 million, an increase of $6.3 million over
the $21.2 million in operating expenses during the 2012 year. The increase in
operating expenses was primarily driven by an increased investment in sales and
marketing personnel, an increase in accounting and audit costs related to our
initial public offering and an increase in administrative costs related to
being a public company.
EBITDA for 2013 was $(6.8) million compared to $(12.7) million in 2012.
Adjusted EBITDA was $(5.7) million for 2013 compared to $(12.1) million in the
prior year. Both EBITDA and Adjusted EBITDA for 2013 include $1.9 million of
accounting and audit costs related to our IPO.
Full year 2013 net loss was $8.7 million or $2.26 per share in comparison to a
$14.9 million net loss or $8.44 per share for full year 2012. Net loss per
share was based on 3,830,837 and 1,763,728 weighted average ordinary shares
outstanding for 2013 and 2012, respectively.
Business Outlook
As previously announced, we expect to report revenues of between $47 and $50
million for the full year 2014. We expect to report revenues of between $11.4
and $11.9 million for the first quarter of 2014, due in part to anticipated
above average stocking orders from outside the U.S. We will continue our focus
on improving our gross margins but we expect that the rate of increase will be
less than in 2013. We expect that operating costs will increase as we invest
proceeds from our IPO. Our investment priorities include expansion of our sales
and marketing resources in the U.S. and outside the U.S., investments in our
product pipeline and investments in infrastructure to support a rapidly growing
public company.
Conference Call
Oxford Immunotec will host a conference call on Tuesday, March 4, 2014 at 8:00
a.m. Eastern Time to discuss its fourth quarter and full year 2013 financial
results. The call will be concurrently webcast. To listen to the conference
call on your telephone please dial, (855) 363-5047 for United States callers
and (484) 365-2897 for international callers and reference confirmation code
2444858, approximately ten minutes prior to start time. To access the live
audio webcast or subsequent archived recording, visit the Investor Relations
section of Oxford Immunotec's website at http://www.oxfordimmunotec.com. The
replay will be available on the Company's website for approximately 90 days.
About Oxford Immunotec
Oxford Immunotec Global PLC is a global, commercial-stage diagnostics company
committed to improving patient care by providing advanced, innovative tests in
the field of immunology. The proprietary T-SPOT(r) technology platform measures
the responses of specific immune cells, known as T cells, to inform the
diagnosis, prognosis and monitoring of patients with immunologically controlled
diseases. T cells are a central component of the human body's immune system,
and are implicated in the control and progression of many medical conditions,
including certain types of infectious diseases, cancers and autoimmune
diseases. The Company's initial product developed using the T-SPOT technology
platform is the T-SPOT.TB test, which is used to test for latent tuberculosis
infection. The T-SPOT.TB test has been approved for sale in over 50 countries,
including the United States, where it has received pre-market approval from the
Food and Drug Administration, Europe, where it has obtained a CE mark, as well
as Japan and China. The Company is headquartered near Oxford, UK and in
Marlborough, MA. Additional information can be found at
www.oxfordimmunotec.com.
T-SPOT and the Oxford Immunotec logo are trademarks of Oxford Immunotec Ltd.
Forward-Looking Statements
This release contains forward-looking statements, including statements
regarding future revenues, expenses and the prospects for sales of our
products. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially. These risks
and uncertainties, includes, among others, decisions by regulatory authorities,
hospitals and other health care institutions, laboratories, physicians,
patients and third party payers, as well as our ability to expeditiously and
successfully expand our sales and distribution networks and the other factors
described under the 'Risk Factors' section in our filings with the Securities
and Exchange Commission. When evaluating Oxford Immunotec's business and
securities, investors should give careful consideration to these risks and
uncertainties.
Forward-looking statements are based on current expectations and assumptions
and currently available data and are neither predictions nor guarantees of
future events or performance. You should not place undue reliance on
forward-looking statements, which speak only as of the date of this
presentation. We do not undertake to update or revise any forward-looking
statements after they are made, whether as a result of new information, future
events, or otherwise, except as required by applicable law.
Oxford Immunotec Global PLC
Condensed consolidated statements of operations
(unaudited)
(in thousands, except per share data)
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-
Quarter ended Year ended December
December 31, 31,
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2013 2012 2013 2012
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Revenue
Product $ 5,017 $ 2,273 $ 19,905 $ 9,080
Service 5,208 3,006 18,879 11,605
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Total revenue 10,225 5,279 38,784 20,685
Cost of revenue
Product 1,708 1,213 8,475 4,329
Service 2,727 2,088 10,125 8,095
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Total cost of revenue 4,435 3,301 18,600 12,424
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Gross profit 5,790 1,978 20,184 8,261
Operating expenses:
Research and development 563 715 2,146 1,947
Sales and marketing 3,713 3,282 13,270 11,177
General and administrative 3,662 2,284 12,119 8,068
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Total operating expenses 7,938 6,281 27,535 21,192
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Loss from operations (2,148) (4,303) (7,351) (12,931)
Other expense:
Interest expense, net (72) (25) (328) (1,477)
Foreign exchange losses (467) (134) (423) (626)
Other expense (584) -- (470)
--
--------------------------------------------
Loss before income taxes (3,271) (4,462) (8,572) (15,034)
Income tax expense (benefit) 57 (172) 92 (151)
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Net loss $ (3,328) $ (4,290) $ (8,664) $ (14,883)
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Net loss per share attributable to $ (0.38) $ (1.99) $ (2.26) $ (8.44)
ordinary shareholders--basic and
diluted
Weighted-average shares used to 8,721,880 2,153,826 3,830,837 1,763,728
compute net loss attributable to
ordinary shareholders--basic and
diluted
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Note: per share amounts have been adjusted to reflect the Company's 1-for-6.705
reverse stock split which occurred in November 2013.
Reconciliation of net loss to adjusted EBITDA
(unaudited)
(in thousands)
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-
Quarter ended Year ended December
December 31, 31,
---------------------------------------------
2013 2012 2013 2012
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Net loss $ (3,328) $ (4,290) $ (8,664) $ (14,883)
Income tax expense (benefit) 57 (172) 92 (151)
Interest income (1) (1) (1) (1)
Interest expense 73 26 329 1,478
Depreciation and amortization 529 221 1,392 801
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EBITDA (2,670) (4,216) (6,852) (12,756)
Reconciling items:
Share-based compensation expense 63 20 140 79
Unrealized exchange losses 346 122 155 546
Loss on change in fair value of 279 -- 279
--
warrants
Loss on change in fair value of 561 -- 561
--
derivative instrument
---------------------------------------------
Adjusted EBITDA $ (1,421) $ (4,074) $ (5,717) $ (12,131)
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Oxford Immunotec Global PLC
(unaudited)
Condensed consolidated balance sheets
(in thousands)
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December 31,
-------------------
2013 2012
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Assets
Current assets:
Cash and cash equivalents $ 76,494 $ 12,578
Restricted cash 87 387
Accounts receivable, net 4,754 5,400
Inventory 5,450 3,073
Prepaid expenses and other 2,242 1,342
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Total current assets 89,027 22,780
Restricted cash, non-current 362 287
Property and equipment, net 2,964 2,249
Intangible assets, net 331 107
Other assets 60 60
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Total assets $ 92,744 $ 25,483
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Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 2,310 $ 1,754
Accrued expenses 6,936 3,962
Deferred income 1,540 908
Revolving line of credit -- 1,548
Current portion of loans payable 170 79
Taxes payable 177 140
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Total current liabilities 11,133 8,391
Long-term portion of loans payable 563 143
Other liabilities 296 --
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Total liabilities 11,992 8,534
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Shareholders' equity:
Convertible preferred ordinary shares -- 83
Ordinary shares. 188 24
Subscription of G preferred ordinary shares -- 8,075
Additional paid-in capital 183,967 103,380
Accumulated deficit (99,655) (90,991)
Accumulated other comprehensive loss (3,748) (3,622)
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Total shareholders' equity 80,752 16,949
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Total liabilities and shareholders' equity $ 92,744 $ 25,483
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For Media Inquiries:
Caroline Crawley
Oxford Immunotec
Tel: +44 1235 442796
ccrawley@oxfordimmunotec.com
For Investor Inquiries:
Rick Altieri
Chief Financial Officer,
Oxford Immunotec
Tel: +1 (508) 481-4648
raltieri@oxfordimmunotec.com
Mark Klausner
Westwicke Partners
Tel: +1 (443) 213-0500
oxfordimmunotec@westwicke.com
News Source: NASDAQ OMX
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Language: English
Company: Oxford Immunotec
United Kingdom
ISIN: GB00BGFBB958
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255623 04.03.2014
DGAP-News: Oxford Immunotec Reports Fourth Quarter and Full Year 2013 Financial Results
| Source: EQS Group AG