Full Press Release Details
Therapeutics Reports Fourth Quarter and Full Year 2013 Financial Results
Achieves FDA Approval
Increases 42% to $0.44 in Quarter and 70% to $1.39 for Year
Phase III Clinical Trial Enrollment Complete
Revenue for 2013 Grows to $75.1 Million
BEDFORD, Mass.--(BUSINESS WIRE)--February 26, 2014--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 31, 2013.
Management Commentary
"Anika concluded a record year for revenue and earnings, driven by solid
demand for our viscosupplementation products as well as productivity
improvements in operations and manufacturing," said Charles H. Sherwood,
Ph.D., President and Chief Executive Officer. "Our top-line results for
the fourth quarter were measured against a strong set of financial
comparatives in the fourth quarter of 2012, which reflected a
significant and temporary increase in product shipments in that
year-earlier period."
"Growth in 2013 continued to be fueled primarily by increased sales of
our flagship product, Orthovisc , in both domestic and
international markets," Sherwood said. "We also made good progress this
year in lowering our cost structure and improving the efficiency of our
underlying operations. As a result, despite an increase in R&D spending
due mainly to our multinational Phase III clinical study in support of
our CE Mark application for CingalTM, Anika's profitability
for 2013 improved substantially year-over-year."
"We are beginning 2014 in a strong position. Demand for our
viscosupplementation products is growing, both in the U.S. and
internationally. The FDA approval of Monovisc in the
U.S. enhances our strength and flexibility in that market which should
allow us to significantly increase market share. We are encouraged by
the potential from our product pipeline, including CingalTM
and Hyalofast . In addition, we are making good progress
in building the internal capabilities that we need to expand beyond
viscosupplementation and deliver on Anika's potential in regenerative
therapies. We believe that Anika is well-positioned for continued growth
and profitability in the quarters ahead," concluded Sherwood.
Total revenue for the fourth quarter of 2013 was $21.3 million, compared
with $22.6 million in the fourth quarter of 2012. For the full year
2013, total revenue grew 5% to $75.1 million, from $71.4 million a year
earlier despite an approximately $4 million anticipated decline in
Ophthalmic revenue. Anika's non-ophthalmic revenue increased 13% which
continues to be largely driven by increased domestic and international
viscosupplementation product sales. The comparison with the fourth
quarter of 2012 reflected higher product sales in that period. This was
the result of a temporary scale-up issue at Anika's Bedford
manufacturing facility during the third quarter of 2012, which was
rectified quickly and resulted in uneven revenue distributions for the
last two quarters of that year.
Product Gross Margin
Product gross margin for the fourth quarter of 2013 improved to 69%,
from 66% in the fourth quarter of 2012. For the 12 months ended December
31, 2013, product gross margin increased to 68%, compared with 57% for
full year 2012. This improvement reflected the company's ongoing
initiatives to realize the planned operational efficiencies, as well as
more favorable product mix, the elimination of dual manufacturing
facilities in Massachusetts in mid-2012, and the elimination of the
company's unprofitable tissue engineering operations in Italy since the
Research and development expenses for the fourth quarter of 2013 rose
52% from the fourth quarter a year earlier. The increase reflected
expenses for the company's CingalTM clinical trial and
other planned product pipeline initiatives. Selling, general and
administrative expenses decreased 35% from the fourth quarter of 2012,
primarily reflecting a cash settlement received related to a legal
dispute as well as the company's ongoing cost reduction initiatives.
Operating and Net Income
Operating income for the fourth quarter of 2013 was $10.4 million,
compared with $7.8 million in the same period in 2012. For the 12 months
ended December 31, 2013, operating income increased to $32.6 million
from $19.7 million a year earlier. Net income for the fourth quarter of
2013 was $6.7 million, or $0.44 per diluted share, compared with $4.5
million, or $0.31 per diluted share, in the fourth quarter last year.
For full year 2013, net income grew to $20.6 million, or $1.39 per
diluted share, from $11.8 million, or $0.82 per diluted share, in 2012.
Operating income, net income and earnings per share were higher,
year-over-year, primarily due to the improvement in product gross profit.
Cash and Cash Equivalents
Anika's cash and cash equivalents at December 31, 2013 increased to
$63.3 million, from $44.1 million at December 31, 2012. The
approximately $19 million increase in cash and cash equivalents
reflected an $8.4 million prepayment of long-term debt in November 2013.
The overall cash balance increase was driven primarily by higher income
from operations, increased cash collections on accounts receivable and
option exercises during the year.
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook tomorrow, Thursday, February 27, 2013 at
9:00 a.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 855-468-0611 (international
callers dial 484-756-4332) and use the conference ID number 57118538.
Please call approximately 10 minutes before the starting time and
reference Anika Therapeutics. In addition, the conference call will be
available through a live audio webcast in the "Investor Relations"
section of the Anika Therapeutics website, www.anikatherapeutics.com.
An accompanying slide presentation also can be accessed via the Anika
Therapeutics website. The conference call will be archived and
accessible on the same website shortly after the conclusion of the call.