Highlights
Sientra, Inc. (NASDAQ:SIEN) (“Sientra” or the “Company”), a medical
aesthetics company, today announced its financial results for the
second quarter ended June 30, 2016.
Jeffrey M. Nugent, Chairman and Chief Executive
Officer of Sientra, said, “We are extremely encouraged by our
second quarter results and remain on track with our precision
launch. Our sales representatives remain engaged and motivated, and
physician feedback continues to be very positive. Combined with our
separately announced manufacturing partnership with Vesta, we are
poised to build on our position as the leading provider of premium
and innovative breast products to board-certified plastic surgeons.
In addition, we have seen encouraging traction with bioCorneum
sales as we further integrate the product into our commercial
organization and physicians recognize the clinical benefits in
adopting this best-in-class, complementary scar management
solution.”
Second Quarter 2016 Financial
Review
Total net sales for the second quarter ended June
30, 2016 were $6.2 million, compared to total net sales of $14.2
million for the same period in 2015. This decrease was driven by
our voluntary hold on the sale and implanting of all Sientra
devices manufactured by Silimed between October 9, 2015 and March
1, 2016 and as a result of the Company’s controlled market re-entry
designed to optimize the availability of its Breast Product
inventory as the Company establishes its supply options. Net sales
of our Breast Products accounted for 79% of our total net sales for
the three months ended June 30, 2016. Net sales of
bioCorneum®, or our Scar Management Products, accounted for 18% of
our total net sales for the three months ended June 30, 2016.
Gross profit for the second quarter of 2016 was
$4.5 million, or 72.1% of net sales, compared to gross profit of
$10.3 million, or 72.3% of net sales, for the same period in 2015.
This slight decrease was primarily due to an incremental $0.1
million reserve for inventory obsolescence recorded for product
that we estimate to expire prior to being sold, as well as greater
fixed overhead as a percentage of lower net sales.
Operating expenses for the second quarter of 2016
were $14.7 million, an increase of $2.3 million, or 18.7%, compared
to operating expenses of $12.4 million for the same period in
2015. The increase is primarily due to an increase in product
development and legal costs partially offset by a decrease in
marketing costs and the medical device excise tax costs as a result
of the suspension of this tax during calendar years 2016 and
2017.
Net loss for the second quarter of 2016 was $10.2
million, compared to $3.0 million for the same period in 2015.
The Company had $86.2 million in cash and cash
equivalents as of June 30, 2016 with no outstanding debt
obligations.
As of June 30, 2016, our sales organization
included a total of 38 sales representatives.
Manufacturing Supply Update
In a separate press release, Sientra today
announced it has entered into a services agreement with Vesta, a
Lubrizol Company, to establish manufacturing capacity and jointly
secure approval of a PMA supplement for Sientra’s breast implant
products anticipated to be submitted during the first quarter of
2017. Vesta is a leading medical device contract manufacturer
of silicone products headquartered in Franklin, Wisconsin.
Conference Call
Sientra will hold a conference call on Tuesday,
August 9, 2016 at 5:30 a.m. PT / 8:30 a.m. ET to discuss the
results. The dial-in numbers are 844-464-3933 for domestic callers
and 765-507-2612 for international callers. The conference ID is
50422236. A live webcast of the conference call will be
available on the Investor Relations section of the Company's
website at www.sientra.com.
A replay of the call will be available starting on
August 9, 2016 at 6:00 a.m. PT / 9:00 a.m. ET, through August 10,
2016 at 8:59 p.m. PT/11:59 p.m. ET. To access the replay,
dial 855-859-2056 for domestic callers and 404-537-3406 for
international callers, and use the replay conference ID
50422236. The webcast will be available on the Investor
Relations section of the Company’s website for 30 days following
the completion of the call.
About Sientra
Headquartered in Santa Barbara, California, Sientra
is a medical aesthetics company committed to making a difference in
patients’ lives by enhancing their body image, growing their
self-esteem and restoring their confidence. The Company was founded
to provide greater choice to board-certified plastic surgeons and
patients in need of medical aesthetics products. The Company has
developed a broad portfolio of products with technologically
differentiated characteristics, supported by independent laboratory
testing and strong clinical trial outcomes. The Company sells its
breast implants and breast tissue expanders exclusively to
board-certified and board-admissible plastic surgeons and tailors
its customer service offerings to their specific needs. The Company
also offers a range of other aesthetic and specialty products
including bioCorneum®, the professional choice in scar
management.
Forward- looking statementsThis
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,
based on management’s current assumptions and expectations of
future events and trends, which affect or may affect the Company’s
business, strategy, operations or financial performance, and actual
results may differ materially from those expressed or implied in
such statements due to numerous risks and uncertainties.
Forward-looking statements include, but are not limited to,
statements regarding the success of the Company’s market re-entry,
including the market’s confidence in the quality and safety of its
products, the ability of the Company to build on its position in
the Company’s markets, the Company’s development of a long-term
manufacturing solution, and, the integration of the bioCorneum
product line into the Company’s organization. Such statements
are subject to risks and uncertainties, including the dependence on
positive reaction from plastic surgeons and their patients in order
to successfully re-enter the market, future profitability depending
on the success of the Company’s breast products, and risks
associated with contracting with Vesta or any third-party
manufacturer and supplier, including uncertainties that the
development and validation of Vesta’s manufacturing facility will
be timely completed, that a PMA Supplement or other regulatory
requirements will be timely approved by the FDA or other applicable
regulatory authorities. Additional factors that could cause
actual results to differ materially from those contemplated in this
press release can be found in the Risk Factors section of Sientra’s
most recently filed Quarterly Report on Form 10-Q and and its
Annual Report on Form 10-K for the year ended December 31, 2015
which Sientra filed with the Securities and Exchange Commission on
March 10, 2016. All statements other than statements of
historical fact are forward-looking statements. The words
‘‘believe,’’ ‘‘may,’’ ‘‘might,’’ ‘‘could,’’ ‘‘will,’’ ‘‘aim,’’
‘‘estimate,’’ ‘‘continue,’’ ‘‘anticipate,’’ ‘‘intend,’’ ‘‘expect,’’
‘‘plan,’’ or the negative of those terms, and similar expressions
that convey uncertainty of future events or outcomes are intended
to identify estimates, projections and other forward-looking
statements. Estimates, projections and other forward-looking
statements speak only as of the date they were made, and, except to
the extent required by law, the Company undertakes no obligation to
update or review any estimate, projection or forward-looking
statement.
SIENTRA, INC. |
Condensed Statements of Operations |
(In thousands, except per share and share
amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
June 30, |
|
|
June 30, |
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
|
2015 |
|
|
|
|
2016 |
|
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
|
|
$ |
|
6,244 |
|
|
$ |
|
14,206 |
|
|
$ |
|
7,715 |
|
|
$ |
|
26,640 |
|
Cost of
goods sold |
|
|
1,745 |
|
|
|
|
3,937 |
|
|
|
|
2,506 |
|
|
|
|
7,174 |
|
|
|
|
|
|
Gross
profit |
|
|
4,499 |
|
|
|
|
10,269 |
|
|
|
|
5,209 |
|
|
|
|
19,466 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
|
6,287 |
|
|
|
|
6,951 |
|
|
|
|
11,396 |
|
|
|
|
13,805 |
|
|
Research
and development |
|
|
3,062 |
|
|
|
|
1,497 |
|
|
|
|
5,317 |
|
|
|
|
2,753 |
|
|
General and
administrative |
|
|
5,357 |
|
|
|
|
3,943 |
|
|
|
|
10,642 |
|
|
|
|
7,664 |
|
|
|
|
|
|
Total
operating expenses |
|
|
14,706 |
|
|
|
|
12,391 |
|
|
|
|
27,355 |
|
|
|
|
24,222 |
|
|
|
|
|
|
Loss from
operations |
|
|
(10,207 |
) |
|
|
|
(2,122 |
) |
|
|
|
(22,146 |
) |
|
|
|
(4,756 |
) |
Other
income (expense), net: |
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
16 |
|
|
|
|
7 |
|
|
|
|
31 |
|
|
|
|
7 |
|
|
Interest
expense |
|
|
(12 |
) |
|
|
|
(671 |
) |
|
|
|
(13 |
) |
|
|
|
(1,339 |
) |
|
Other
expense, net |
|
|
10 |
|
|
|
|
(206 |
) |
|
|
|
(2 |
) |
|
|
|
(288 |
) |
|
|
|
|
|
Total other
income (expense), net |
|
|
14 |
|
|
|
|
(870 |
) |
|
|
|
16 |
|
|
|
|
(1,620 |
) |
|
|
|
|
|
Loss before
income taxes |
|
|
(10,193 |
) |
|
|
|
(2,992 |
) |
|
|
|
(22,130 |
) |
|
|
|
(6,376 |
) |
Income
taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
Net
loss |
$ |
|
(10,193 |
) |
|
$ |
|
(2,992 |
) |
|
$ |
|
(22,130 |
) |
|
$ |
|
(6,376 |
) |
Basic and
diluted net loss per share attributable to common stockholders |
$ |
|
(0.56 |
) |
|
$ |
|
(0.20 |
) |
|
$ |
|
(1.23 |
) |
|
$ |
|
(0.43 |
) |
Weighted
average outstanding common shares used for net loss per |
|
|
|
|
|
|
|
|
|
|
share
attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
|
18,075,010 |
|
|
|
|
14,931,931 |
|
|
|
|
18,062,803 |
|
|
|
|
14,927,558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIENTRA, INC. |
|
Condensed Balance Sheets |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
|
|
|
2016 |
|
|
2015 |
|
|
Assets |
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
86,159 |
|
$ |
112,801 |
|
|
|
Accounts
receivable, net |
|
2,403 |
|
|
4,249 |
|
|
|
Inventories, net |
|
18,906 |
|
|
20,602 |
|
|
|
Prepaid
expenses and other current assets |
|
1,958 |
|
|
1,473 |
|
|
|
|
Total
current assets |
|
109,426 |
|
|
139,125 |
|
|
Property
and equipment, net |
|
1,995 |
|
|
1,404 |
|
|
Goodwill |
|
|
|
|
3,273 |
|
|
— |
|
|
Other
intangible assets, net |
|
3,796 |
|
|
53 |
|
|
Other
assets |
|
|
|
219 |
|
|
223 |
|
|
|
|
Total
assets |
$ |
118,709 |
|
$ |
140,805 |
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
|
Accounts
payable |
$ |
3,412 |
|
$ |
4,069 |
|
|
|
Accrued and
other current liabilities |
|
7,416 |
|
|
6,959 |
|
|
|
Customer
deposits |
|
6,958 |
|
|
9,488 |
|
|
|
|
Total
current liabilities |
|
17,786 |
|
|
20,516 |
|
|
Warranty
reserve and other long-term liabilities |
|
2,031 |
|
|
1,418 |
|
|
|
|
Total
liabilities |
|
19,817 |
|
|
21,934 |
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Total
stockholders’ equity |
|
98,892 |
|
|
118,871 |
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
118,709 |
|
$ |
140,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Contacts:
The Ruth Group
Nick Laudico / Zack Kubow
(646) 536-7030 / (646) 536-7020
IR@Sientra.com
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