Vapotherm, Inc. (NYSE: VAPO), (“Vapotherm” or the “Company”),
today announced fourth quarter and fiscal year 2022 financial
results.
Fourth Quarter 2022 Summary
- Total revenue for the fourth quarter of 2022 was $18.7
million
- Gross margin was 27.5% in the fourth quarter of 2022
- Substantially completed move of manufacturing operations from
New Hampshire to Mexico
Fiscal Year 2022 Summary
- Total revenue for 2022 was $66.8 million
- Launched next generation High Velocity Therapy platform, HVT
2.0
- Cost structure has been streamlined which resulted in a
decrease in non-GAAP cash operating expenses from $100.8 million in
2021 to $83.6 million in 2022
- Worldwide installed base of High Velocity Therapy systems grew
by approximately 1,600 units in 2022, now at over 36,700 units
“2022 was a year of transition as we repositioned the business
given the significant decrease in COVID-related hospitalizations as
compared to 2020 and 2021,” said Joseph Army, President and CEO.
“We executed on our path to profitability initiatives while still
making investments in future growth drivers including the launch of
our next generation platform, HVT 2.0. Recently, we completed a $23
million equity raise which has strengthened our balance sheet. We
believe these initiatives will allow us to achieve our goals in
2023 and beyond. I’d like to thank our Team for all their hard work
in executing on our Path to Profitability initiatives which we
launched in early 2022 in response to a rapidly changing
environment.”
Results for the Three Months December 31, 2022
The following table reflects the Company’s net revenue for the
three months ended December 31, 2022 and 2021:
Three Months Ended December
31,
2022
2021
Change
(in thousands, except
percentages)
Amount
% of Revenue
Amount
% of Revenue
$
%
Revenue
Capital (product & lease revenue)
$
3,039
16.3
%
$
5,357
24.1
%
$
(2,318
)
(43.3
)%
Disposables
14,113
75.6
%
15,007
67.5
%
(894
)
(6.0
)%
Service and other
1,511
8.1
%
1,880
8.4
%
(369
)
(19.6
)%
Total net revenue
$
18,663
100.0
%
$
22,244
100.0
%
$
(3,581
)
(16.1
)%
Net revenue for the fourth quarter of 2022 was $18.7 million,
representing a 16.1% decrease from fourth quarter of 2021. Capital
and disposables revenue were lower in the fourth quarter of 2022
due to lower demand for our products that was driven by a decrease
in patient acuity from COVID infections as COVID variants
transitioned from a lower respiratory disease to an upper
respiratory disease.
Revenue information by geography is summarized as follows:
Three Months Ended December
31,
2022
2021
Change
(in thousands, except
percentages)
Amount
% of Revenue
Amount
% of Revenue
$
%
United States
$
15,531
83.2
%
$
17,798
80.0
%
$
(2,267
)
(12.7
)%
International
3,132
16.8
%
4,446
20.0
%
(1,314
)
(29.6
)%
Total net revenue
$
18,663
100.0
%
$
22,244
100.0
%
$
(3,581
)
(16.1
)%
Gross profit and gross margin for the fourth quarter of 2022 was
$5.1 million and 27.5%, respectively. In the fourth quarter of
2022, gross margin was negatively impacted by increases in our
inventory and equipment reserves, under-absorption of labor and
overhead costs due to lower production levels and non-recurring
charges related to the transfer of our manufacturing operations
from New Hampshire to Mexico.
Total operating expenses were $22.8 million in the fourth
quarter of 2022, a decrease of $2.9 million as compared to the same
period last year. Non-GAAP cash operating expenses, excluding
impairment charges, loss on disposal of property and equipment,
depreciation and amortization, stock-based compensation expense,
severance accruals and loss from deconsolidation were $18.0 million
in the fourth quarter of 2022 compared to $23.8 million in the
fourth quarter of 2021. The decreases in operating expenses and
non-GAAP cash operating expenses were primarily due to cost saving
measures in connection with the Company’s path-to-profitability
initiatives. Operating expenses in the fourth quarter of 2022
include a non-cash impairment charge of $1.5 million related to the
operating lease right-of-use assets and leasehold improvements
recorded in connection with our plan to sublease unused spaced in
New Hampshire as a result of the relocation of manufacturing
operations to Mexico.
Net loss for the fourth quarter of 2022 was $21.4 million, or
$0.78 per share, compared to $18.6 million, or $0.71 per share, in
the fourth quarter of 2021. Net loss per share was based on
27,328,746 and 26,073,243 weighted average shares outstanding for
the fourth quarter of 2022 and 2021, respectively. Net loss for the
fourth quarter of 2022 includes a non-cash impairment charge of
$1.5 million related to the long-lived assets record in connection
with our operating lease and leasehold improvements in New
Hampshire.
Adjusted EBITDA was negative $12.0 million for the fourth
quarter of 2022 as compared to negative $14.9 million for the
fourth quarter of 2021. The decrease in Adjusted EBITDA loss was
primarily due to cost saving measures in connection with the
Company’s path-to-profitability initiatives, partially offset by
lower revenue and gross margin on a year over year basis.
Results for the Year Ended December 31, 2022
The following table reflects the Company’s net revenue for the
years ended December 31, 2022 and 2021:
Year Ended December
31,
2022
2021
Change
(in thousands, except
percentages)
Amount
% of Revenue
Amount
% of Revenue
$
%
Revenue
Capital Equipment (product & lease
revenue)
$
11,650
17.4
%
$
40,096
35.4
%
$
(28,446
)
(70.9
)%
Disposable
46,368
69.4
%
66,631
58.8
%
(20,263
)
(30.4
)%
Service and Other
8,783
13.2
%
6,565
5.8
%
2,218
33.8
%
Net revenue
$
66,801
100.0
%
$
113,292
100.0
%
$
(46,491
)
(41.0
)%
Net revenue for 2022 was $66.8 million, representing a 41.0%
decrease from 2021. Total capital equipment revenue, including
product and lease revenue, decreased 70.9% and total disposables
revenue decreased 30.4%, each on a year over year basis. The
decrease in demand for our products was driven by a decrease in
patient acuity from COVID infections as COVID variants transitioned
from a lower respiratory disease to an upper respiratory
disease.
Revenue information by geography is summarized as follows:
Year Ended December
31,
2022
2021
Change
(in thousands, except
percentages)
Amount
% of Revenue
Amount
% of Revenue
$
%
United States
$
52,591
78.7
%
$
84,147
74.3
%
$
(31,556
)
(37.5
)%
International
14,210
21.3
%
29,145
25.7
%
(14,935
)
(51.2
)%
Net Revenue
$
66,801
100.0
%
$
113,292
100.0
%
$
(46,491
)
(41.0
)%
Gross profit for the year ended December 31, 2022 was $17.2
million, a decrease of $35.9 million from 2021. Gross margin was
25.8% in 2022 in comparison to 46.9% in 2021. Gross margin was
negatively impacted by lower revenue and production levels,
non-recurring charges related to the transfer of certain activities
to our contract manufacturer and our manufacturing facility in
Mexico, increased reserves for excess and obsolete inventory, and
increased termination costs.
Operating expenses were $117.6 million for the year ended
December 31, 2022, an increase of $7.2 million as compared to
$110.4 million in 2021. Operating expenses for 2022 include
non-cash charges of $14.7 million and $7.7 million related to the
impairment of goodwill and long-lived and intangibles, and to a
lesser extent, loss on disposal of property and equipment of $0.6
million. These non-cash charges were record in connection with our
decision to cease future commercial investments in Vapotherm Access
and RespirCare in the third quarter of 2022, and to a lesser extent
relocate our manufacturing operations from New Hampshire to Mexico.
Non-GAAP cash operating expenses, excluding impairment charges,
loss on disposal of property and equipment, depreciation and
amortization, stock-based compensation expense, severance accruals,
loss from deconsolidation and change in the value of contingent
consideration, were $83.6 million for the year ended December 31,
2022 compared to $100.8 million in 2021. The decrease in non-GAAP
cash operating expenses was primarily due to cost saving measures
in connection with the Company’s path-to-profitability
initiatives.
Net loss for the year ended December 31, 2022 was $113.3
million, or $4.24 per share, compared to $59.8 million, or $2.31
per share, in 2021. Net loss per share was based on 26,732,940 and
25,936,970 weighted average shares outstanding for 2022 and 2021,
respectively. Net loss for the year ended December 31, 2022
includes non-cash impairment charges of $22.4 million primarily
related to the goodwill and long-lived assets recorded in
connection with the acquisitions of HGE and RespirCare.
Adjusted EBITDA was negative $65.2 million for the year ended
December 31, 2022 as compared to negative $43.1 million for 2021.
The increase in Adjusted EBITDA loss was primarily due to lower
revenue and gross margin on a year over year basis, and to a lesser
extent increased termination costs.
Cash Position
Cash and cash equivalents were $15.7 million as of December 31,
2022 compared to $57.1 million as of December 31, 2021. The
decrease in cash in 2022 was due to the net loss, partial offset
from proceeds from our debt facility.
Fiscal 2023 Outlook
For fiscal 2023, the Company expects net revenue to be in the
range of $77 million to $79 million. The Company anticipates that
75% of revenue will come from U.S. revenue and 25% from
International revenue. The Company anticipates that 75% of the
revenue will come from disposables revenue and that the remainder
will come from capital equipment and service.
For fiscal 2023, gross margin is expected to be in the range of
48% and 50%.
For fiscal 2023, operating expenses are expected to be in the
range of $76 million to $78 million.
For fiscal 2023, non-GAAP cash operating expenses excluding
additional items as detailed below are expected to be in the range
of $60 million to $62 million.
Conference Call Information
Management will host a conference call at 4:30 p.m. Eastern Time
on February 23, 2023 to discuss the results of the quarter with a
question and answer session. To listen to the conference call on
your telephone, please dial +1 (888) 330-2391 for U.S. callers, or
+1 (240) 789-2702 for international callers, approximately ten
minutes prior to the start time and reference conference code
6585549. To listen to a live webcast, please visit the Investors
section of the Vapotherm website at:
http://investors.vapotherm.com/events-and-presentations/events. The
webcast replay will be available on the Vapotherm website for 12
months following completion of the call. A replay of this
conference call will be available by telephone through March 2,
2023 by dialing +1 (800) 770-2030 in the U.S. or +1 (647) 362-9199
outside of the U.S. The replay access code is 6585549.
Website Information
Vapotherm routinely posts important information for investors on
the Investor Relations section of its website,
http://investors.vapotherm.com/. Vapotherm intends to use this
website as a means of disclosing material, non-public information
and for complying with Vapotherm’s disclosure obligations under
Regulation FD. Accordingly, investors should monitor the Investor
Relations section of Vapotherm’s website, in addition to following
Vapotherm’s press releases, Securities and Exchange Commission
(“SEC”) filings, public conference calls, presentations and
webcasts. The information contained on, or that may be accessed
through, Vapotherm’s website is not incorporated by reference into,
and is not a part of, this document.
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures,
including EBITDA, Adjusted EBITDA, non-GAAP operating expenses
excluding impairment of long-lived assets, impairment of goodwill
and loss on disposal of property and equipment, and non-GAAP cash
operating expenses excluding additional items, including
stock-based compensation expense, depreciation and amortization,
severance accruals recorded, loss from deconsolidation, and change
in fair value of contingent consideration, which differ from
operating expenses calculated in accordance with U.S. generally
accepted accounting principles (“GAAP”). EBITDA represents net loss
less interest expense, net, income tax provision or benefit, and
depreciation and amortization, and Adjusted EBITDA represents
EBITDA as adjusted for the impact of foreign currency loss or gain,
change in fair value of contingent consideration, stock-based
compensation expense, and impairment of long lived and intangible
assets. Since these adjustments to the GAAP measures are highly
variable, difficult to predict and of a size that could have
substantial impact on Vapotherm’s reported results of operations
for a period, Vapotherm cannot provide without unreasonable effort
a quantitative reconciliation to the most directly comparable GAAP
measures for its 2023 financial guidance regarding non-GAAP cash
operating expenses excluding impairment of goodwill, impairment of
long-lived assets, loss on disposal of property and equipment and
other additional items as detailed below, or non-GAAP cash
operating expenses. The Company has reconciled all historical
non-GAAP financial measures with the most directly comparable GAAP
financial measures in tables accompanying this release.
These non-GAAP financial measures are presented because the
Company believes they are useful indicators of its operating
performance. Management uses these non-GAAP financial measures, as
measures of the Company’s operating performance and for planning
purposes, including the preparation of the Company’s annual
operating budget and financial projections. The Company believes
these measures are useful to investors as supplemental information
because they are frequently used by analysts, investors and other
interested parties to evaluate companies in its industry. The
Company believes Adjusted EBITDA is useful to its management and
investors as a measure of comparative operating performance from
period to period.
These non-GAAP financial measures should not be considered
alternatives to, or superior to, net income or loss as a measure of
financial performance or cash flows from operations as a measure of
liquidity, or any other performance measure derived in accordance
with GAAP. They should not be construed to imply that the Company’s
future results will be unaffected by unusual or non-recurring
items. In addition, Adjusted EBITDA is not intended to be a measure
of free cash flow for management’s discretionary use, as it does
not reflect certain cash requirements such as tax payments, debt
service requirements, capital expenditures and certain other cash
costs that may recur in the future. Adjusted EBITDA contains
certain other limitations, including the failure to reflect our
capital expenditures, cash requirements for working capital needs
and cash costs to replace assets being depreciated and amortized.
In evaluating Adjusted EBITDA, you should be aware that in the
future the Company may incur expenses that are the same as or
similar to some of the adjustments in this presentation. The
Company’s presentation of Adjusted EBITDA should not be construed
to imply that its future results will be unaffected by any such
adjustments. Management compensates for these limitations by
primarily relying on the Company’s GAAP results in addition to
using Adjusted EBITDA and other non-GAAP financial measures on a
supplemental basis. The Company’s definitions of Adjusted EBITDA
and non-GAAP operating expenses excluding impairment of long-lived
assets, impairment of goodwill and loss on disposal of property and
equipment and non-GAAP cash operating expenses excluding the
additional items detailed below, are not necessarily comparable to
other similarly titled captions of other companies due to different
methods of calculation.
About Vapotherm
Vapotherm, Inc. (NYSE: VAPO) is a publicly traded developer and
manufacturer of advanced respiratory technology based in Exeter,
New Hampshire, USA. The Company develops innovative, comfortable,
non-invasive technologies for respiratory support of patients with
chronic or acute breathing disorders. Over 3.8 million patients
have been treated with the use of Vapotherm high velocity therapy®
systems. For more information, visit www.vapotherm.com.
Vapotherm high velocity therapy is mask-free non-invasive
ventilatory support and is a front-line tool for relieving
respiratory distress—including hypercapnia, hypoxemia, and dyspnea.
It allows for the fast, safe treatment of undifferentiated
respiratory distress with one tool. The HVT 2.0 and Precision Flow
systems’ mask-free interface delivers optimally conditioned
breathing gases, making it comfortable for patients and reducing
the risks and care complexities associated with mask therapies.
While being treated, patients can talk, eat, drink and take oral
medication.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements under the
Private Securities Litigation Reform Act of 1995, including
statements about the Company’s expected net revenue, gross margin,
operating expenses and non-GAAP cash operating expenses for fiscal
year 2023 and its expectations to execute on its
path-to-profitability initiative, which the Company believes will
allow it to achieve its goals in 2023 and beyond. In some cases,
you can identify forward-looking statements by terms such as
“expect,” “continue,” “plan,” “intend,” “will,” “outlook,”
“guidance,” or “typically,” or the negative of these terms or other
similar expressions, although not all forward-looking statements
contain these words, and the use of future dates. Each
forward-looking statement is subject to risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied in such statement. Applicable risks and
uncertainties include, but are not limited to the following:
Vapotherm has incurred losses in the past and may be unable to
achieve or sustain profitability in the future or achieve its 2023
financial guidance; risks associated with the move of its
manufacturing operations to Mexico; Vapotherm’s ability to raise
additional capital to fund its existing commercial operations,
develop and commercialize new products, and expand its operations;
Vapotherm’s ability to comply with its $5 million minimum cash
covenant, execute on its path-to-profitability initiative, convert
$17 million of excess inventory into cash, fund its business
through 2023 and get it to Adjusted EBITDA positive in the fourth
quarter of 2023; Vapotherm’s dependence on sales generated from its
High Velocity Therapy systems, competition from multi-national
corporations who have significantly greater resources than
Vapotherm and are more established in the respiratory market; the
ability for Precision Flow systems to gain increased market
acceptance; Vapotherm’s inexperience directly marketing and selling
its products; the potential loss of one or more suppliers and
dependence on its new third party manufacturer; Vapotherm’s
susceptibility to seasonal fluctuations; Vapotherm’s failure to
comply with applicable United States and foreign regulatory
requirements; the failure to obtain U.S. Food and Drug
Administration or other regulatory authorization to market and sell
future products or its inability to secure, maintain or enforce
patent or other intellectual property protection for its products;
the impact of COVID on its business, including its supply chain,
and the other risks and uncertainties included under the heading
“Risk Factors” in Vapotherm’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2022, as filed with the SEC on
February 23, 2023, and in any subsequent filings with the SEC. The
forward-looking statements contained in this press release reflect
Vapotherm’s views as of the date hereof, and Vapotherm does not
assume and specifically disclaims any obligation to update any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required by law.
Financial Statements:
VAPOTHERM, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
December 31,
2022
2021
Assets
Current assets
Cash and cash equivalents
$
15,738
$
57,071
Accounts receivable, net
9,102
10,909
Inventories
32,980
36,562
Prepaid expenses and other current
assets
2,081
5,205
Total current assets
59,901
109,747
Property and equipment, net
26,636
22,157
Operating lease right-of-use assets
5,805
7,045
Restricted cash
1,109
253
Goodwill
536
15,300
Intangible assets, net
-
4,398
Deferred income tax assets
96
78
Other long-term assets
2,112
1,107
Total assets
$
96,195
$
160,085
Liabilities and Stockholders’ (Deficit)
Equity
Current liabilities
Accounts payable
$
2,739
$
5,923
Contract liabilities
1,216
2,081
Accrued expenses and other current
liabilities
15,609
28,559
Revolving loan facility
-
6,608
Total current liabilities
19,564
43,171
Long-term loans payable, net
96,994
39,726
Other long-term liabilities
7,827
10,521
Total liabilities
124,385
93,418
Commitments and contingencies
Stockholders’ (deficit) equity
Preferred stock ($0.001 par value)
25,000,000 shares authorized; no shares issued and outstanding as
of December 31, 2022 and 2021
-
-
Common stock ($0.001 par value)
175,000,000 shares authorized as of December 31, 2022 and 2021,
28,516,047 and 26,126,253 shares issued and outstanding as of
December 31, 2022 and 2021, respectively
29
26
Additional paid-in capital
461,940
443,358
Accumulated other comprehensive (loss)
income
(157
)
26
Accumulated deficit
(490,002
)
(376,743
)
Total stockholders’ (deficit) equity
(28,190
)
66,667
Total liabilities and stockholders’
(deficit) equity
$
96,195
$
160,085
VAPOTHERM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share
amounts)
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
(unaudited)
Net revenue
$
18,663
$
22,244
$
66,801
$
113,292
Cost of revenue
13,540
14,455
49,558
60,104
Gross profit
5,123
7,789
17,243
53,188
Operating expenses
Research and development
4,561
4,944
20,802
18,410
Sales and marketing
9,476
12,971
46,091
60,140
General and administrative
7,042
7,427
27,796
31,375
Impairment of goodwill
-
-
14,701
-
Impairment of long-lived and intangible
assets
1,501
323
7,676
323
Loss on disposal of property and
equipment
247
105
568
105
Total operating expenses
22,827
25,770
117,634
110,353
Loss from operations
(17,704
)
(17,981
)
(100,391
)
(57,165
)
Other (expense) income
Interest expense
(3,771
)
(635
)
(11,643
)
(2,595
)
Interest income
26
17
139
91
Foreign currency loss
(51
)
(37
)
(239
)
(225
)
Loss on extinguishment of debt
-
-
(1,114
)
-
Other
-
-
-
18
Net loss before income taxes
$
(21,500
)
$
(18,636
)
$
(113,248
)
$
(59,876
)
(Benefit) provision for income taxes
(63
)
(76
)
11
(76
)
Net loss
$
(21,437
)
$
(18,560
)
$
(113,259
)
$
(59,800
)
Other comprehensive loss:
Foreign currency translation
adjustments
229
7
(183
)
(15
)
Total other comprehensive loss
229
7
(183
)
(15
)
Total comprehensive loss
$
(21,208
)
$
(18,553
)
$
(113,442
)
$
(59,815
)
Net loss per share basic and diluted
$
(0.78
)
$
(0.71
)
$
(4.24
)
$
(2.31
)
Weighted-average number of shares used in
calculating net loss per share, basic and diluted
27,328,746
26,073,243
26,732,940
25,936,970
VAPOTHERM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December
31,
2022
2021
Cash flows from operating
activities
Net loss
$
(113,259
)
$
(59,800
)
Adjustments to reconcile net loss to net
cash used in operating activities
Stock-based compensation expense
10,385
9,766
Depreciation and amortization
5,180
5,648
Provision for bad debts
224
(161
)
Provision for inventory valuation
3,083
70
Non-cash lease expense
2,127
1,764
Change in fair value of contingent
consideration
(3,351
)
(1,813
)
Impairment of goodwill
14,701
-
Impairment of long-lived and intangible
assets
7,676
323
Loss on disposal of property and
equipment
568
105
Placed unit reserve
646
155
Amortization of discount on debt
686
128
Loss from deconsolidation
35
-
Deferred income taxes
11
(76
)
Loss on extinguishment of debt
1,114
-
Changes in operating assets and
liabilities:
Accounts receivable
1,162
12,400
Inventories
449
(16,759
)
Prepaid expenses and other assets
(1,771
)
1,458
Accounts payable
(3,347
)
798
Contract liabilities
(844
)
(892
)
Accrued expenses and other liabilities
(3,285
)
(6,724
)
Operating lease liabilities, current and
long-term
(2,347
)
(1,761
)
Net cash used in operating activities
(80,157
)
(55,371
)
Cash flows from investing
activities
Purchases of property and equipment
(11,610
)
(5,895
)
Acquisition of business, net of cash
acquired
-
(1,304
)
Net cash used in investing activities
(11,610
)
(7,199
)
Cash flows from financing
activities
Proceeds from loans, net of discount
99,094
-
Proceeds from revolving loan facility
-
4,882
Repayment of loans
(40,000
)
-
Payments of debt extinguishment costs
(817
)
-
Payment of debt issuance costs
(1,567
)
-
Repayments on revolving loan facility
(6,608
)
(3,162
)
Payment of contingent consideration
(135
)
-
Proceeds from issuance of common stock in
connection with at-the-market offerings, net
1,064
-
Proceeds from issuance of common stock
under Employee Stock Purchase Plan
228
1,139
Proceeds from exercise of stock
options
65
1,511
Net cash provided by financing
activities
51,324
4,370
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(34
)
(12
)
Net decrease in cash, cash equivalents and
restricted cash
(40,477
)
(58,212
)
Cash, cash equivalents and restricted
cash
Beginning of period
57,324
115,536
End of period
$
16,847
$
57,324
Supplemental disclosures of cash flow
information
Interest paid during the period
$
8,834
$
2,466
Property and equipment purchases in
accounts payable and accrued expenses
$
702
$
422
Issuance of common stock to satisfy
contingent consideration
$
5,630
$
-
Issuance of common stock warrants in
conjunction with long term debt
$
1,201
$
-
Issuance of common stock for services
$
360
$
413
Issuance of common stock upon vesting of
restricted stock units
$
12
$
161
Non-GAAP Financial Measures
The following tables contain a
reconciliation of net loss to Adjusted EBITDA for the three months
and years ended December 31, 2022 and 2021, respectively.
(unaudited)
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
(in thousands)
Net loss
$
(21,437
)
$
(18,560
)
$
(113,259
)
$
(59,800
)
Interest expense, net
3,745
618
11,504
2,504
(Benefit) provision for income taxes
(63
)
(76
)
11
(76
)
Depreciation and amortization
1,174
1,467
5,180
5,648
EBITDA
$
(16,581
)
$
(16,551
)
$
(96,564
)
$
(51,724
)
Foreign currency
51
37
239
225
Loss on extinguishment of debt
-
-
1,114
-
Change in fair value of contingent
consideration
-
(1,356
)
(3,351
)
(1,813
)
Stock-based compensation
2,760
2,569
10,385
9,766
Impairment of goodwill
-
-
14,701
-
Impairment of long-lived and intangible
assets
1,501
323
7,676
323
Loss on disposal of property and
equipment
247
105
568
105
Adjusted EBITDA
$
(12,022
)
$
(14,873
)
$
(65,232
)
$
(43,118
)
The following tables contain a
reconciliation of operating expenses to non-GAAP operating expenses
and non-GAAP cash operating expenses for the three months and years
ended December 31, 2022 and 2021, respectively.
(unaudited)
Three Months Ended December
31,
Years Ended December
31,
2022
2021
2022
2021
(in thousands)
GAAP operating expenses
$
22,827
$
25,770
$
117,634
$
110,353
Impairment of goodwill
-
-
(14,701
)
-
Impairment of long-lived and intangible
assets
(1,501
)
(323
)
(7,676
)
(323
)
Loss on disposal of property and
equipment
(247
)
(105
)
(568
)
(105
)
Non-GAAP operating expenses
21,079
25,342
94,689
109,925
Stock-based compensation
(2,663
)
(2,377
)
(9,668
)
(9,037
)
Depreciation and amortization
(342
)
(484
)
(1,709
)
(1,915
)
Termination benefits
(30
)
-
(3,060
)
-
Loss from deconsolidation
(35
)
-
(35
)
-
Change in fair value of contingent
consideration
-
1,356
3,351
1,813
Non-GAAP cash operating expenses
$
18,009
$
23,837
$
83,568
$
100,786
Supplemental Operating Metrics
December 31,
2022
2021
Change
Amount
Amount
Amount
%
HVT 2.0 and precision flow units
installed base
United States
24,327
23,368
959
4.1
%
International
12,439
11,848
591
5.0
%
Total
36,766
35,216
1,550
4.4
%
Three Months Ended December
31,
2022
2021
Change
Amount
Amount
Amount
%
HVT 2.0 and precision flow units sold
and leased
United States
239
419
(180
)
(43.0
)%
International
75
194
(119
)
(61.3
)%
Total
314
613
(299
)
(48.8
)%
Disposable patient circuits
sold
United States
104,302
108,200
(3,898
)
(3.6
)%
International
24,551
34,395
(9,844
)
(28.6
)%
Total
128,853
142,595
(13,742
)
(9.6
)%
Year Ended December
31,
2022
2021
Change
Amount
Amount
Amount
%
HVT 2.0 and precision flow units sold
and leased
United States
813
3,600
(2,787
)
(77.4
)%
International
531
2,972
(2,441
)
(82.1
)%
Total
1,344
6,572
(5,228
)
(79.5
)%
Disposable patient circuits
sold
United States
331,044
452,605
(121,561
)
(26.9
)%
International
118,226
200,901
(82,675
)
(41.2
)%
Total
449,270
653,506
(204,236
)
(31.3
)%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230223005397/en/
Investor Relations: Mark Klausner or Mike Vallie,
Westwicke, an ICR Company, ir@vtherm.com, +1 (603) 658-0011
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