Full Press Release Details
Reports First Quarter 2019 Financial Results
Revenue Increased 16% Year-over-Year
Bottom Line Performance with $0.31 Diluted EPS
Leadership Added to Accelerate Innovation and Expand Commercial Reach
$50 Million Share Repurchase Program
BEDFORD, Mass.--(BUSINESS WIRE)--May 2, 2019--Anika Therapeutics, Inc.
(NASDAQ: ANIK), a global, integrated orthopedic and regenerative
medicines company specializing in therapeutics based on its proprietary
hyaluronic acid ("HA") technology, today reported financial results for
the first quarter ended March 31, 2019, and provided an update on its
business progress in the period.
"Anika is off to a strong start in 2019, with double-digit revenue
growth year-over-year in all product franchises and solid earnings in
the first quarter," said Joseph Darling, President and Chief Executive
Officer of Anika Therapeutics. "We have made continued progress
transforming Anika into a global commercial company positioned to
deliver a continuum of orthopedic and regenerative medicine therapies.
We strengthened our executive leadership team with the appointment of a
Vice President of Research and Development and a Vice President of U.S.
Sales, expanded our international commercial team and remain on track to
launch our first surgically-delivered therapy for bone repair procedures
in the U.S. under our hybrid commercial model in the second half of
2019. Additionally, we are pleased to return capital to shareholders
through our $50 million share repurchase program."
First Quarter Financial Results
Total revenue for the first quarter of 2019 increased 16%
year-over-year to $24.7 million, compared to $21.3 million for the
first quarter of 2018. The increase was due primarily to higher global
revenue from the Company's Viscosupplement franchise and HYAFF-based
U.S. and international Viscosupplement revenue each increased by 11%
in the quarter as compared to 2018. The increase in U.S.
Viscosupplement revenue was due primarily to the timing and volume of
orders placed in the quarter, while the increase in International
Viscosupplement revenue was driven principally by an 18%
year-over-year increase in international revenue from single injection
Total operating expenses for the first quarter of 2019 were $19.2
million, compared to $29.1 million for the first quarter of 2018. The
decrease in total operating expenses was due primarily to a one-time
charge of $8.4 million in the first quarter of 2018, which consisted
mainly of non-cash stock-based compensation expense associated with
the retirement of Anika's former Chief Executive Officer.
Net income for the first quarter of 2019 was $4.5 million, or $0.31
per diluted share, compared to a net loss of $6.7 million, or ($0.46)
per diluted share, for the first quarter of 2018. The increase in net
income was due primarily to the increase in total revenue and decrease
in operating expenses previously discussed.
Adjusted EBITDA (see description below) for the first quarter of 2019
was $8.3 million, compared to $1.2 million for the first quarter of
2018. The improvement resulted from the same factors as previously set
forth for the increase in net income.
Cash, cash equivalents and investments were $166.7 million as of March
31, 2019, compared to $159.0 million as of December 31, 2018. Cash
provided by operating activities was $8.5 million for the first
Recent Business Highlights
Strengthened the executive leadership team with the appointments of
Robert Richard, Ph.D., as Vice President of Research and Development,
and Stephen Goldy, as Vice President of U.S. Sales.
Executed commercial expansion plans, including the enhancement of
international business development and marketing capabilities and the
acceleration of planning activities associated with the launch of its
first surgically-delivered regenerative therapy for bone repair
procedures in the U.S. utilizing the Company's hybrid commercial model
in the second half of 2019.
Announced a $50 million share repurchase program, which will include a
$30 million accelerated share repurchase program and up to an
additional $20 million of common stock purchased on the open market.
Continued to evaluate the clinical and regulatory path forward for
CINGAL U.S. Food and Drug Administration approval, and refreshing
primary market research ahead of Anika's final decision on go forward
path. The Company will provide an update on its complete assessment by
the time it reports financial results for the second quarter of 2019.
On schedule to complete a 5-year strategic plan in the third quarter
of 2019, which Anika intends to unveil at its 2019 Analyst and
Investor Day this fall.
Non-GAAP Information
To supplement the financial measures
prepared in accordance with U.S. generally accepted accounting
principles (GAAP), the Company is reporting Adjusted EBITDA, which is a
non-GAAP financial measure and should not be considered an alternative
to net income or other measurements under GAAP. The Company believes
that Adjusted EBITDA provides additional useful information to investors
as it is a metric routinely used by the Company to evaluate its
operating performance and to establish goals for managing its business.
Adjusted EBITDA is not calculated identically by all companies, and
therefore the Company's measurements of Adjusted EBITDA may not be
comparable to similarly titled measures reported by other companies.
Adjusted EBITDA is defined by the Company as GAAP net income excluding
depreciation and amortization, interest and other income (expense),
income taxes and stock-based compensation expense. A reconciliation of
Adjusted EBITDA to net income, the most directly comparable financial
measure calculated and presented in accordance with GAAP, is shown in
the table below for the three months ended March 31, 2019 and 2018 (in
| For the Three Months Ended March 31, | ||||||||||
| 2019 | 2018 | |||||||||
| Net income | $ | 4,507 | $ | (6,686 | ) | |||||
| Interest and other income, net | (498 | ) | (95 | ) | ||||||
| Provision for income taxes | 1,473 | (1,051 | ) | |||||||
| Depreciation and amortization | 1,477 | 1,473 | ||||||||
| Stock-based compensation | 1,386 | 7,565 | ||||||||
| Adjusted EBITDA | $ | 8,345 | $ | 1,206 |
Conference Call Information
Anika's management will hold a
conference call and webcast to discuss its financial results and
business highlights today, Thursday, May 2 at 5:00 pm ET. The conference
call can be accessed by dialing 1-855-468-0611 (toll-free domestic) or
1-484-756-4332 (international). A live audio webcast will be available
in the "Investor Relations" section of Anika's website, www.anikatherapeutics.com.