Insulet Reports Fourth Quarter and Full Year 2016 Financial Results
Fourth Quarter Revenue of
Fourth Quarter Gross Margin Improves to 58.8%; Full Year 2016 Gross Margin Improves to 57.5%
Insulet Expects Full Year 2017 Revenue Growth of Approximately 17% at
Fourth Quarter Highlights and Recent Developments:
Fourth quarter revenue of
$103.6 millionexceeds the Company's guidance of $99to $102 millionand represents year-over-year growth of 24%.
U.S.Omnipod revenue of $63.1 million, an increase of 17%.
International Omnipod revenue of
$20.8 million, an increase of 35%.
Drug Delivery revenue of
$19.6 million, an increase of 34%.
- Gross margin of 58.8%, up 870 basis points, reflecting improved manufacturing and operational execution.
- Completed Investigational Device Exemptions (IDE) for Omnipod Horizon™ Automated Glucose Control System, including over 50 adults and children (beginning at age six), demonstrating overall excellent glucose control.
U.S.facility in Acton, Massachusetts; will expand pod manufacturing and capacity, and drive increased efficiency and reliability.
- Renewed drug delivery supply agreement with Amgen Inc.
Renewed contract manufacturing agreement with
Insulet'sfirst Investor Day, providing an in-depth business review and a five-year growth outlook.
Full Year Financial Highlights:
Full Year 2016 revenue of
$367.0 millionexceeds the Company's guidance of $362to $365 millionand represents year-over-year growth of 39%.
U.S.Omnipod revenue of $229.8 million, an increase of 21%.
International Omnipod revenue of
$71.9 million, an increase of 78%.
Drug Delivery revenue of
$65.3 million, an increase of 92%.
- Gross margin of 57.5%, up 700 basis points.
- Strengthened leadership team with appointment of key executives across the Company.
Evidence demonstrating Omnipod's improved glycemic control and quality
of life published in the
Journal of Diabetes Technology & Therapeuticsand the Journal of Diabetes Science and Technology.
Completed private placement of
$345.0 millionin principal amount of 1.25% Convertible Senior Notes due in 2021 and repurchase of $134.2 millionin principal amount of the existing 2.00% Convertible Senior Notes due in 2019.
- Divested Neighborhood Diabetes medical supplies distribution business to focus on growth opportunities in insulin and drug delivery.
- Expanded development partnership with Eli Lilly and Company for Omnipod delivery of Humalog 200 concentrated insulin, in addition to the Company's already-existing partnership for Humalog U500.
Joslin Diabetes Centerto implement a unique training certification for Insulet'sclinical team.
"We continue to successfully execute on our strategy as evidenced by our
2016 revenue results, which exceeded our expectations," said
Fourth Quarter 2016 Financial Results:
Fourth quarter 2016 revenue increased 24% to
Operating loss for the fourth quarter of 2016 was
Net loss from continuing operations for the fourth quarter of 2016 was
Full Year 2016 Financial Results:
For the year ended
Operating loss for the year ended
Net loss from continuing operations for the year ended
For the year ending
December 31, 2017, the Company expects to generate revenue in the range of $420to $440 million, compared to 2016 revenue of $367.0 million. This represents year-over-year growth of approximately 17% at the mid-point of the range.
For the quarter ending
March 31, 2017, the Company expects to generate revenue in the range of $96to $99 million, compared to first quarter 2016 revenue of $81.2 million. This represents year-over-year growth of approximately 20% at the mid-point of the range.
Future results may be affected by changes in ongoing assumptions and judgments, and may also be affected by non-recurring, unusual or unanticipated charges, expenses or gains.
The 2016 financial results contained in this news release are subject to
finalization in connection with the preparation of the Company's Form
10-K for the year ended
These forward-looking statements involve a number of risks,
uncertainties (some of which are beyond its control) or other
assumptions that may cause actual results or performance to be
materially different from those expressed or implied by these
forward-looking statements. These risks and uncertainties include, but
are not limited to: risks associated with the Company's dependence on
its principal product, the Omnipod System;
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
(In thousands, except share and per share data)
|Cost of revenue||42,638||41,808||155,903||130,622|
|Research and development||16,034||12,897||55,710||43,208|
|Sales and marketing||25,364||23,382||94,483||78,407|
|General and administrative||23,674||18,331||71,597||60,392|
|Total operating expenses||65,072||54,610||221,790||182,007|
|Other income (expense), net||315||(18||)||825||58|
|Loss on extinguishment of long-term debt||—||—||2,551||—|
|Interest and other expense, net||(4,821||)||(3,163||)||(16,114||)||(12,654||)|
|Loss from continuing operations before income taxes||(8,956||)||(15,780||)||(26,818||)||(61,390||)|
|Income tax expense||197||129||392||212|
|Net loss from continuing operations||$||(9,153||)||$||(15,909||)||$||(27,210||)||$||(61,602||)|
Income (loss) from discontinued operations, net of tax
|Net loss per share basic and diluted:|
|Net loss from continuing operations per share||$||(0.16||)||$||(0.28||)||$||(0.48||)||$||(1.08||)|
|Net loss from discontinued operations per share||$||—||$||(0.20||)||$||(0.03||)||$||(0.21||)|
|Weighted-average number of shares outstanding||57,435,894||56,933,133||57,251,377||56,785,646|
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
|Cash, cash equivalents and short-term investments||$||298,570||$||122,672|
|Accounts receivable, net||28,803||42,530|
|Prepaid expenses and other current assets||7,073||4,283|
|Current assets of discontinued operations||—||9,252|
|Total current assets||369,960||190,761|
|Property and equipment, net||46,266||41,793|
|Intangible assets, net||528||933|
|Long-term assets of discontinued operations||—||1,956|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued expenses and other current liabilities||40,959||36,744|
|Current portion of capital lease obligations||269||5,519|
|Current liabilities of discontinued operations||—||5,319|
|Total current liabilities||55,697||65,156|
|Capital lease obligations||—||269|
|Long-term debt, net||332,768||171,698|
|Other long-term liabilities||5,032||3,952|
|Additional paid-in capital||744,243||686,193|
|Accumulated other comprehensive loss||(726||)||(654||)|
|Total stockholders' equity||63,150||34,051|
|Total liabilities and stockholders' equity||$||456,647||$||275,126|
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