Procedure Numbers Consistent with 2019
Levels
Cash and Cash Equivalents of $42.7 Million
as of September 30, 2020
LENSAR, Inc. (NASDAQ: LNSR) (“LENSAR” or “the Company”), a
global medical technology company focused on femtosecond laser
surgical solutions for the treatment of cataracts, today announced
financial results for the third quarter ended September 30, 2020
and provided an update on key strategic and operational
initiatives. The distribution of LENSAR common stock to
stockholders of PDL BioPharma, Inc. (“PDL”) (Nasdaq: PDLI) took
place on October 1, 2020, and LENSAR began trading as an
independent public company on October 2, 2020.
“The third quarter was one of continued progress for LENSAR,
during which we took important steps to position the Company for
both near- and longer-term success,” said Nick Curtis, Chief
Executive Officer of LENSAR. “In August, our former parent, PDL,
announced its intention to spin LENSAR off. The spin-off was
completed in October, at which point LENSAR became an independent,
publicly traded company. I would like to thank the members of the
PDL and LENSAR teams whose hard work and dedication made this
transaction possible, as well as our new stockholders for their
ongoing support.”
Mr. Curtis added, “We became an independent company during a
relatively challenging period in our industry. Procedure volumes
were negatively impacted during the first half of the year due to
the COVID-19 pandemic, as elective procedures were shut down in all
of our operating regions. In addition, the pandemic has changed the
way ophthalmic surgeons see and treat patients, affecting
productivity levels and patient flow. I am pleased to report that
activity in the U.S. and Europe rebounded in the third quarter back
to 2019 levels. Through the pandemic, we continue to advance the
development of ALLY™, our next generation system which integrates a
femtosecond laser with a phacoemulsification system in a single,
compact cataract treatment system. We remain on-track to submit a
510(k) application to the Food and Drug Administration (“FDA”) by
the first quarter of 2022 and launch ALLY in 2022. Our
current-generation LENSAR system with Streamline® IV and
IntelliAxis, remains the most advanced system on the market today,
and we look forward to advancing that technology leadership
position with the launch of ALLY. We are confident in our growth
strategy, our team’s ability to execute on that strategy and
believe that we are well-positioned for continued growth and
success.”
Total revenue for the third quarter of 2020 was $7.1 million,
compared to $8.1 million in the third quarter of 2019. The decrease
in revenue in the third quarter of 2020 was attributable to a
period-over-period decline in laser system sales, which is largely
due to the disruption of operations from the pandemic.
In the third quarter of 2020, there was a total of 25,078
procedures sold, compared with 25,154 procedures in the third
quarter of 2019, and as a result, third quarter 2020 recurring
source revenue (all revenue excluding laser system sales) in the
U.S. and Europe essentially returned to 2019 levels. For the three
and nine months ended September 30, 2020, recurring source revenue
represented 82% and 87%, respectively, of our total revenue.
Gross margin for the quarter was $3.9 million (55% of revenue),
compared with $3.3 million (41% of revenue) in the third quarter of
2019. The increase in gross margin was attributable to a favorable
product mix.
Total operating loss for the third quarter of 2020 was $(4.7)
million, compared with $(5.3) million in the third quarter of
2019.
Research and Development (“R&D”) expense was $2.0 million
for the third quarter of 2020, compared with $4.3 million in the
third quarter of 2019. The decrease in R&D expense was
primarily attributable to intellectual property purchased during
the third quarter of 2019, partially offset by increased consulting
and supply expenses associated with the continued development of
ALLY.
Selling, General and Administrative (“SG&A”) expense totaled
$6.3 million during the third quarter of 2020, compared with $4.0
million in the third quarter of 2019. The increase was primarily
attributable to an increase in personnel expense inclusive of
stock-based compensation expense as discussed below, partially
offset by a decrease in expenses allocated from PDL corporate
support functions and a decrease in trade show and travel expenses
related to COVID-19 cancellations and restrictions.
During the third quarter, the Company adopted the LENSAR, Inc.
2020 Incentive Award Plan (the “2020 Plan”). Under the 2020 Plan,
the Company granted 1,847,298 shares of restricted stock to board
members and employees. Total stock-based compensation expense
recorded for the three months ended September 30, 2020 and 2019 was
$3.8 million and $0.2 million, respectively, and for the nine
months ended September 30, 2020 and 2019 was $3.9 million and $0.4
million, respectively.
Net loss for the quarter was $(4.8) million, compared with
$(5.8) million in the third quarter of 2019.
Earnings Before Interest, Taxes, Depreciation & Amortization
(“EBITDA”) for the third quarter of 2020 was $(4.2) million,
compared with $(4.4) million in the third quarter of 2019. The
improvement in EBITDA between the quarters was related to the
period-over-period declines in net loss explained in our discussion
of individual line items above, offset by lower interest expense
and depreciation expense in the third quarter of 2020, as compared
to the third quarter of 2019. EBITDA is a non-GAAP financial
measure, and a reconciliation of this measure to net loss is set
forth below in this press release.
As of September 30, 2020, the Company had cash and cash
equivalents of $42.7 million. Based on its cash position and
operational forecasts, the Company believes it has sufficient
capital to fund operations through the filing of a 510(k)
application for its ALLY device.
Conference Call and Webcast:
LENSAR management will host a conference call and live webcast
to discuss the third quarter results and provide a business update
today, November 9, 2020 at 4:30 p.m. Eastern Time.
To participate by telephone, please dial (866) 393-4306
(Domestic) or (734) 385-2616 (International). The conference ID
number is 3077696. The live webcast can be accessed under “Events
& Presentations" in the Investor Relations section of the
Company's website at https://ir.lensar.com. Please log in
approximately 5-10 minutes prior to the call to register and to
download and install any necessary software. An archive of the call
will be available on LENSAR’s website, www.lensar.com.
About LENSAR
LENSAR is a commercial-stage medical device company focused on
designing, developing and marketing an advanced femtosecond laser
system for the treatment of cataracts and the management of
pre-existing or surgically induced corneal astigmatism. Its LENSAR
Laser System incorporates a range of proprietary technologies
designed to assist the surgeon in obtaining better visual outcomes,
efficiency and reproducibility by providing advanced imaging,
simplified procedure planning, efficient design and precision.
Forward-looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including as it relates to the Company’s anticipated
development and commercialization of ALLY and its expected cash
runway. Forward-looking statements contained in this press release
may be identified by the use of words such as “may,” “will,”
“should,” “expect,” “plan,” “anticipate,” “could,” “intend,”
“target,” “project,” “contemplate,” “believe,” “estimate,”
“predict,” “potential” or “continue” or the negative of these terms
or other similar expressions. Forward-looking statements are based
on the Company’s current expectations, forecasts and assumptions,
are subject to inherent uncertainties, risks and assumptions that
are difficult to predict, and actual outcomes and results could
differ materially due to a number of factors, including the impact
of the COVID-19 pandemic, changes in the Company’s competitive
landscape, and regulatory developments affecting the Company’s
current or proposed products. These and other risks and
uncertainties include those described more fully in the section
titled “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and elsewhere in the
Company’s Form 10 Registration Statement, as amended, filed with
the Securities and Exchange Commission (the “SEC”) and subsequent
filings with the SEC. All forward-looking statements are expressly
qualified in their entirety by such factors. The Company does not
undertake any duty to update any forward-looking statement except
as required by law.
Non-GAAP Financial Measure
This press release includes EBITDA, a financial measure that is
not presented in accordance with generally accepted accounting
principles in the United States (“GAAP”). The Company prepares and
analyzes operating and financial data and non-GAAP measures to
assess the performance of its business, make strategic and offering
decisions and build its financial projections. EBITDA is defined as
net loss before interest expense, income tax expense, interest
income, depreciation and amortization of intangible assets. EBITDA
is included in this press release because the Company believes that
EBITDA provides meaningful supplemental information for investors
regarding the performance of its business and facilitates a
meaningful evaluation of actual results on a comparable basis with
historical results. The Company’s management uses this non-GAAP
financial measure in order to have comparable financial results to
analyze changes in its underlying business from quarter to quarter.
EBITDA is reconciled to net loss, the most directly comparable
measure calculated and presented in accordance with GAAP,
below:
Three Months Ended September
30,
Nine Months Ended September
30,
(in thousands)
2020
2019
2020
2019
Net loss
$(4,763
)
$(5,818
)
$(12,946
)
$(12,189
)
Add: Interest expense
65
494
1,340
1,447
Less: Interest income
14
13
48
41
Add: Depreciation expense
227
596
1,035
2,091
Add: Amortization expense
313
317
944
910
EBITDA
$(4,172
)
$(4,424
)
$(9,675
)
$(7,782
)
LENSAR, Inc.
CONDENSED STATEMENTS OF
OPERATIONS
(Unaudited)
(In thousands, except share
and per share amounts)
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
Revenue
Product
$
5,264
$
6,127
$
13,360
$
16,560
Lease
1,073
1,113
2,519
3,173
Service
808
828
2,219
2,335
Total revenue
7,145
8,068
18,098
22,068
Cost of revenue (exclusive of
amortization)
Product
2,356
3,551
5,824
9,357
Lease
209
520
905
1,787
Service
684
722
1,959
2,360
Total cost of revenue
3,249
4,793
8,688
13,504
Operating expenses
Selling, general and administrative
expenses
6,290
3,964
15,110
12,278
Research and development expenses
2,005
4,331
5,010
6,159
Amortization of intangible assets
313
317
944
910
Operating loss
(4,712
)
(5,337
)
(11,654
)
(10,783
)
Other income (expense)
Interest expense
(65
)
(494
)
(1,340
)
(1,447
)
Other income, net
14
13
48
41
Net loss
$
(4,763
)
$
(5,818
)
$
(12,946
)
$
(12,189
)
Cumulative dividends in excess of interest
expense on Series A Preferred Stock
-
-
-
-
Net loss attributable to common
stockholders
$
(4,763
)
$
(5,818
)
$
(12,946
)
$
(12,189
)
Net loss per share attributable to
common stockholders
Basic and diluted
$
(0.64
)
$
(5.44
)
$
(4.04
)
$
(11.39
)
Weighted-average number of shares used
in calculation of net loss per share:
Basic and diluted
7,464,949
1,070,000
3,201,650
1,070,000
LENSAR, Inc.
CONDENSED BALANCE
SHEETS
(Unaudited)
(In thousands, except share
and per share amounts)
September 30, 2020
December 31, 2019
Assets
Current assets:
Cash
$
42,701
$
4,615
Accounts receivable, net of allowance of
$23 and $0, respectively
2,429
3,384
Notes receivable, net of allowance of $9
and $0, respectively
451
502
Inventories
13,685
8,064
Prepaid and other current assets
742
618
Total current assets
60,008
17,183
Property and equipment, net
793
720
Equipment under lease, net
3,038
1,431
Notes and other receivables, long-term,
net of allowance of $11 and $0, respectively
538
827
Intangible assets, net
12,422
13,366
Other assets
3,911
1,009
Total assets
$
80,710
$
34,536
Liabilities and stockholders’ equity
(deficit)
Current liabilities:
Accounts payable
$
2,349
$
1,577
Accrued liabilities
3,586
4,778
Deferred revenue
836
777
Other current liabilities
1,502
697
Total current liabilities
8,273
7,829
Long-term operating lease liabilities
3,440
333
Note payable due to related party
-
20,200
Series A Preferred Stock
-
36,417
Other long-term liabilities
51
310
Total liabilities
11,764
65,089
Stockholders’ equity (deficit):
Common stock, par value $0.01 per share,
150,000,000 shares and 1,070,000 shares authorized at September 30,
2020 and December 31, 2019, respectively; 10,634,566 shares and
1,070,000 shares issued and outstanding at September 30, 2020
and December 31, 2019, respectively
106
11
Additional paid-in capital
120,005
7,621
Accumulated deficit
(51,165
)
(38,185
)
Total stockholders’ equity (deficit)
68,946
(30,553
)
Total liabilities and stockholders’
equity (deficit)
$
80,710
$
34,536
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201109006092/en/
Thomas R. Staab, II, CFO ir.contact@lensar.com
Lee Roth / Cameron Radinovic Burns McClellan for LENSAR
lroth@burnsmc.com / cradinovic@burnsmc.com
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