Highlights
Sientra, Inc. (NASDAQ:SIEN) (“Sientra” or the “Company”), a medical
aesthetics company, today announced its financial results for the
third quarter ended September 30, 2016.
Jeffrey M. Nugent, Chairman and Chief
Executive Officer of Sientra, said, “We have made extraordinary
progress on a number of strategic and operational initiatives in
recent months and remain on track with our previously stated
manufacturing timeline. Together with our partner Vesta, we have
completed the build-out of a manufacturing facility for our breast
implants and we are proceeding with final verification and testing
of product in preparation to submit our PMA supplement by the end
of the first quarter 2017. There is no greater priority at
the Company than for us to have a qualified partner that is FDA
approved and ready to supply our premium implants to the U.S.
board-certified plastic surgery market by the end of
2017.”
Mr. Nugent continued, “We have also
continued our focused business development effort to diversify our
revenue stream and broaden our aesthetics offering. Starting
with our bioCorneum acquisition earlier this year and continuing
with today’s announced acquisition of the Specialty Surgical
Products tissue expander portfolio, we continue to move into
adjacent markets by adding innovative, proven products. We are
making steady progress in transitioning our business back on a path
toward historical levels of revenue and growth and we remain
committed to our long term goal of creating a world class,
diversified aesthetics organization.”
Mr. Nugent concluded, “We are very pleased
to have reached a preliminary settlement of our shareholder class
action lawsuit for $10.9 million where we expect Sientra to be
responsible for only $1.6 million with the balance being paid by
our D&O insurance carriers. This will allow us to move
forward with clarity on a legal matter without a negative overhang
on our operations. Finally, we made a significant addition to
our management team with the addition of a new Chief Financial
Officer. Patrick comes to us with a strong record of
executive leadership with high growth companies and most recently
in the aesthetic field. We are very much looking forward to
his finance, operational and corporate development contributions in
executing our near and long term corporate objectives.”
Third Quarter 2016 Financial
ReviewTotal net sales for the third quarter ended
September 30, 2016 were $6.5 million, compared to total net sales
of $9.9 million for the same period in 2015. This decrease was
driven by the Company’s controlled market re-entry designed to
optimize the availability of its Breast Product inventory as the
Company establishes its supply options following the voluntary hold
on the sale and implanting of all Sientra devices manufactured by
Silimed between October 9, 2015 and March 1, 2016. Net sales of our
Breast Products and net sales of bioCorneum® accounted for 76.9%
and 20.3%, respectively, of our total net sales for the three
months ended September 30, 2016.
Gross profit for the third quarter of 2016
was $4.7 million, or 72.2% of net sales, compared to gross profit
of $7.0 million, or 70.5% of net sales, for the same period in
2015. The increase in gross margin was primarily due to lower
inventory write offs and warranty costs as a percentage of net
sales for the three months ended September 30, 2016.
Operating expenses for the third quarter of
2016 were $14.5 million, an increase of $1.9 million, or 15.3%,
compared to operating expenses of $12.6 million for the same period
in 2015. The increase is primarily due to legal expenses
associated with the class action securities litigation partially
offset by a decrease in sales and marketing costs.
Net loss for the third quarter of 2016 was
$10.0 million, compared to $6.6 million for the same period in
2015.
The Company had $79.3 million in cash and
cash equivalents as of September 30, 2016 with no outstanding debt
obligations.
Additionally, the Company announced it
acquired the tissue expander portfolio from Specialty Surgical
Products, Inc. for $5 million in cash and up to an additional $2
million contingent upon achievement of revenue based
milestones.
Conference CallSientra will
hold a conference call on Tuesday, November 8, 2016 at 1:30 p.m.
PT/4:30 p.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 1318597. 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 November 8, 2016 at 4:30 p.m. PT/7:30 p.m. ET, through
November 9, 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
1318597. 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 SientraHeadquartered
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, its ability to transition the business back to
historical revenue and growth levels and create a world class,
diversified aesthetics organization, the ability of the Company to
diversify its product portfolio to target adjacent markets, the
Company’s development of a long-term manufacturing solution,
including the ability and timing to submit a PMA supplement for the
Vesta manufacturing facility and to qualify a manufacturing
facility for the manufacture of product for the Company’s
customers, the integration of the bioCorneum and SSP tissue
expander product lines into the Company’s organization, the
expectation of obtaining court approvals and executing a final
settlement agreement related the Company’s class action shareholder
litigation and the estimated amounts expected to be paid by the
Company and the Company’s D&O insurance, and the integration of
and expected contributions from new additions to the Company’s
management team. 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, and that the integration of recently acquired product
lines will not achieve the anticipated benefits or will divert
attention of management from the operation of the existing
business. 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 |
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|
September 30, |
|
|
September 30, |
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
|
|
$ |
|
6,531 |
|
$ |
|
9,929 |
|
|
$ |
|
14,246 |
|
$ |
|
36,569 |
|
Cost of
goods sold |
|
|
1,814 |
|
|
|
2,933 |
|
|
|
|
4,319 |
|
|
|
10,107 |
|
|
|
|
|
|
Gross
profit |
|
|
4,717 |
|
|
|
6,996 |
|
|
|
|
9,927 |
|
|
|
26,462 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
|
5,137 |
|
|
|
6,282 |
|
|
|
|
16,533 |
|
|
|
20,087 |
|
|
Research
and development |
|
|
2,052 |
|
|
|
2,143 |
|
|
|
|
7,370 |
|
|
|
4,896 |
|
|
General and
administrative |
|
|
7,302 |
|
|
|
4,140 |
|
|
|
|
17,945 |
|
|
|
11,804 |
|
|
|
|
|
|
Total
operating expenses |
|
|
14,491 |
|
|
|
12,565 |
|
|
|
|
41,848 |
|
|
|
36,787 |
|
|
|
|
|
|
Loss from
operations |
|
|
(9,774 |
) |
|
|
(5,569 |
) |
|
|
|
(31,921 |
) |
|
|
(10,325 |
) |
Other
income (expense), net |
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
16 |
|
|
|
12 |
|
|
|
|
47 |
|
|
|
19 |
|
|
Interest
expense |
|
|
(105 |
) |
|
|
(1,608 |
) |
|
|
|
(118 |
) |
|
|
(2,947 |
) |
|
Other
expense, net |
|
|
(52 |
) |
|
|
561 |
|
|
|
|
(54 |
) |
|
|
273 |
|
|
|
|
|
|
Total other
income (expense), net |
|
|
(141 |
) |
|
|
(1,035 |
) |
|
|
|
(125 |
) |
|
|
(2,655 |
) |
|
|
|
|
|
Loss before
income taxes |
|
|
(9,915 |
) |
|
|
(6,604 |
) |
|
|
|
(32,046 |
) |
|
|
(12,980 |
) |
Income
taxes |
|
|
|
48 |
|
|
— |
|
|
|
48 |
|
|
— |
|
|
|
|
|
Net
loss |
$ |
|
(9,963 |
) |
$ |
|
(6,604 |
) |
|
$ |
|
(32,094 |
) |
$ |
|
(12,980 |
) |
Basic and
diluted net loss per share attributable to common stockholders |
$ |
|
(0.55 |
) |
$ |
|
(0.43 |
) |
|
$ |
|
(1.77 |
) |
$ |
|
(0.86 |
) |
Weighted
average outstanding common shares used for net loss per |
|
|
|
|
|
|
|
|
|
|
share
attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
|
18,208,112 |
|
|
|
15,207,870 |
|
|
|
|
18,111,593 |
|
|
|
15,022,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIENTRA, INC. |
|
Condensed Balance Sheets |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
2016 |
|
2015 |
|
|
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
79,282 |
$ |
112,801 |
|
|
|
Accounts
receivable, net |
|
2,812 |
|
4,249 |
|
|
|
Inventories, net |
|
19,048 |
|
20,602 |
|
|
|
Insurance
recovery receivable |
|
9,282 |
|
— |
|
|
|
Prepaid
expenses and other current assets |
|
1,429 |
|
1,473 |
|
|
|
|
Total
current assets |
|
111,853 |
|
139,125 |
|
|
Property
and equipment, net |
|
2,076 |
|
1,404 |
|
|
Goodwill |
|
|
|
|
3,273 |
|
— |
|
|
Other
intangible assets, net |
|
3,586 |
|
53 |
|
|
Other
assets |
|
|
|
231 |
|
223 |
|
|
|
|
Total
assets |
$ |
121,019 |
$ |
140,805 |
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
$ |
3,201 |
$ |
4,069 |
|
|
|
Accrued and
other current liabilities |
|
7,507 |
|
6,959 |
|
|
|
Legal
settlement payable |
|
10,900 |
|
— |
|
|
|
Customer
deposits |
|
6,200 |
|
9,488 |
|
|
|
|
Total
current liabilities |
|
27,808 |
|
20,516 |
|
|
Warranty
reserve and other long-term liabilities |
|
2,141 |
|
1,418 |
|
|
|
|
Total
liabilities |
|
29,949 |
|
21,934 |
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Total
stockholders’ equity |
|
91,070 |
|
118,871 |
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
121,019 |
$ |
140,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Contacts:
Patrick F. Williams
Sientra, Chief Financial Officer
(619) 675-1047
patrick.williams@sientra.com
Nick Laudico / Brian Johnston
The Ruth Group
(646) 536-7030 / (646) 536-7028
IR@Sientra.com
Sientra (NASDAQ:SIEN)
Historical Stock Chart
From Mar 2024 to May 2024
Sientra (NASDAQ:SIEN)
Historical Stock Chart
From May 2023 to May 2024