Full Press Release Details
Therapeutics Reports 25% Increase in Fourth-Quarter Revenue
More Than Double to 21 per Share
S.r.l. Achieves Breakeven Operations for Fourth Quarter
BEDFORD, Mass.--(BUSINESS WIRE)--February 29, 2012--Anika Therapeutics,
Inc. (Nasdaq: ANIK), a leader in products for tissue protection,
healing, and repair, based on hyaluronic acid ("HA") technology, today
reported financial results for the quarter and full year ended December
Anika's total revenue increased 25% to $18.4 million in the fourth
quarter of 2011, from $14.7 million in the fourth quarter of 2010. For
the full year 2011, total revenue grew 17% to $64.8 million, from $55.6
million a year earlier. The company's revenue growth for both periods
was primarily driven by strong domestic and international sales of its
flagship product, Orthovisc . Growing
international sales of Monovisc as well
as shipments of orthopedic and surgical products from Anika S.r.l. also
contributed to these increases.
Operating and Net Income
Income from operations for the fourth quarter of 2011 increased to $4.9
million, from $2.5 million in the same period in 2010. Net income rose
to $2.9 million, or $0.21 per diluted share, from $1.4 million, or $0.10
per diluted share, in the fourth quarter of 2010. For the 12 months
ended December 31, 2011, income from operations rose to $14.0 million,
from $7.5 million a year earlier. This growth was driven by a
combination of increased revenue, higher gross margin, lower R&D
spending related to clinical studies, and cost savings initiatives
implemented during the period. Anika's net income for full-year 2011
grew 96% to $8.5 million, or $0.62 per diluted share, from $4.3 million,
or $0.32 per diluted share, in 2010. Due to the improved performance of
its Italian operations, the company's effective tax rate for 2011
declined to 38.6% from 41.2% in the prior year.
Product Gross Margin
Product gross margin for the fourth quarter of 2011 improved by 700
basis points to 59.8%, from 52.8% in the fourth quarter last year. For
the 12 months ended December 31, 2011, product gross margin increased to
56.8%, compared with 54.8% a year earlier. The improvement for both the
quarter and year was driven by a more profitable product mix.
Research and development expenses for the fourth quarter of 2011 were
$1.5 million, compared with $1.4 million in the fourth quarter last
year. For full year 2011, R&D expenses decreased slightly to $6.2
million, from $6.9 million in 2010 due to operational streamlining and a
decline in clinical study spending. Anika expects R&D expense to
increase modestly in the second half of 2012 on a year-over-year basis
due to the anticipated initiation of new clinical studies.
Selling, general and administrative expenses in the fourth quarter of
2011 increased to $4.9 million, from $4.2 million in the fourth quarter
of 2010. For full year 2011, SG&A expenses were $17.9 million, compared
with $17.3 million in 2010. The increases for both periods was primarily
due to foreign exchange losses on euro denominated assets caused by the
strengthening of the U.S. dollar in the second half of 2011. We continue
to benefit from lower SG&A costs at Anika S.r.l., but these savings were
offset by increased professional fees in the U.S.
Cash and Cash Equivalents
Anika's cash and cash equivalents at December 31, 2011 were $35.8
million, compared with $28.2 million at December 31, 2010. The increase
was the result of increased profits as well as the receipt of $2.5
million in December of the upfront fee from Mitek in connection with the
new deal for licensing Monovisc in the U.S. This fee was initially
recorded as deferred revenue and will be recognized over the 15 year
term of the agreement.
Management Commentary
"The fourth quarter was a strong conclusion to an excellent year for
Anika," said Charles H. Sherwood, Ph.D., president and chief executive
officer. "The revenue increase of 25% from last year's fourth quarter
was driven primarily by strong domestic and international sales of
Orthovisc in our Orthobiologics franchise. Increased international
demand for Monovisc and our orthopedic, and surgical products from Anika
S.r.l. also contributed to our revenue growth this quarter."
"This was a solid quarter on the bottom line as well," Sherwood said.
"Compared with the fourth quarter of 2010, Anika's net income rose 113%,
and earnings doubled to 21 cents per share. Our product gross margin
improved to nearly 60%, expenses for R&D and SG&A remained tightly
controlled company-wide, and Anika S.r.l. achieved a profit for the
"We also made solid operational progress this quarter, highlighted by
our receiving approvals from the FDA to manufacture Orthovisc and Hyvisc
at our Bedford facility for sale in the United States," said Sherwood.
"These approvals are an important step forward toward the consolidation
of all of our manufacturing in Bedford, a process that we expect to
complete by midyear 2012."
"Looking forward, we expect demand for Orthovisc, Monovisc and our Anika
S.r.l. orthopedic products to continue to grow, as does the scope of our
international Orthobiologics distribution network," Sherwood said. "In
addition, we remain optimistic about the prospects for U.S. approval of
Monovisc. Anika S.r.l. is operating profitably and seeing growth in
demand for its products. We are developing new opportunities in our
Ophthalmic franchise, moving closer to completing our manufacturing
consolidation in Bedford, and making good progress in product
development. As a result, we believe Anika is well-positioned to report
another year of milestone accomplishments and strong financial
performance in 2012."
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook today, Thursday, March 1, 2012 at 1:00
p.m. ET. In addition, the company will answer questions concerning
business and financial developments and trends, and other business and
financial matters affecting the company, some of the responses to which
may contain information that has not been previously disclosed.
To listen to the conference call, dial 866.700.6293 (international
callers dial 617-213-8835) and use the passcode 99866093. Please call
approximately 10 minutes before the starting time and reference Anika
Therapeutics. In addition, the conference call will be available through