DGAP-News: Oxford Immunotec Reports Fourth Quarter and Full

DGAP-News: Oxford Immunotec / Oxford Immunotec Reports Fourth Quarter and Full Year 2013 Financial Results 04.03.2014 / 13:00 --------------------------------------------------------------------- -- Fourth Quarter Revenues of $10.2 Million Increased 94% Compared to Prior Year Period -- 2013 Revenues of $38.8 Million Increased 87% Compared to Prior Year -- Successfully Completed Initial Public Offering and Nasdaq Listing in November 2013 OXFORD, United Kingdom and MARLBOROUGH, Mass., March 4, 2014 (GLOBE NEWSWIRE) -- Oxford Immunotec Global PLC (Nasdaq:OXFD), a global, commercial-stage diagnostics company committed to improving patient care by providing advanced, innovative tests in the field of immunology, today announced fourth quarter and full year 2013 financial results. 'We are pleased with our revenues in the fourth quarter, which came in ahead of our expectations,' said Dr. Peter Wrighton-Smith, Chief Executive Officer of Oxford Immunotec. 'We are starting to invest the proceeds of our IPO and we are enthusiastic about the opportunities to continue to grow the business in 2014.' By revenue type, total revenues were, in millions: Three Months Ended December 31, Full Year Ended December 31, -------------------------------------------------------------- 2013 2012 Change 2013 2012 Change -------------------------------------------------------------- Product $5.0 $2.3 121% $19.9 $9.1 119% Service 5.2 3.0 73% 18.9 11.6 63% --------------------- -------------------- Total Revenues $10.2 $5.3 94% $38.8 $20.7 87% ===================== ==================== By geography, total revenues were, in millions: Three Months Ended December 31, Full Year Ended December 31, -------------------------------------------------------------- 2013 2012 Change 2013 2012 Change -------------------------------------------------------------- United States $4.8 $2.5 87% $17.3 $10.4 67% Europe and ROW 2.0 1.8 13% 7.2 6.5 10% Asia 3.4 0.9 268% 14.3 3.8 277% --------------------- -------------------- Total Revenues $10.2 $5.3 94% $38.8 $20.7 87% ===================== ==================== Fourth Quarter 2013 Financial Results Revenues for the fourth quarter of 2013 were $10.2 million, representing 94% growth over 2012 fourth quarter revenues of $5.3 million. 2013 fourth quarter product revenues were $5.0 million representing a 121% increase from product revenues of $2.3 million in the fourth quarter of 2012. The increase in product revenues was primarily attributable to growth in the Asia region. Service revenues for the fourth quarter of 2013 were $5.2 million, up 73% from 2012 fourth quarter revenues of $3.0 million. The increase in service revenues was driven by an increase in the number of customers and an increase in volume from existing customers. U.S. revenues were $4.8 million in the fourth quarter of 2013 representing 87% growth over the same period's revenues of $2.5 million in the prior year. Growth was driven by an increase in the number of customers and an increase in volume from existing customers. Europe and Rest of the World revenues were $2.0 million in the fourth quarter of 2013 representing 13% growth over 2012 fourth quarter revenues of $1.8 million. Results were reflective of the more fragmented nature of this market and our investment priorities. Asia revenues were $3.4 million in the fourth quarter of 2013 representing 268% growth over revenues in the 2012 fourth quarter of $0.9 million. Revenues in the Asia region were driven by continued strong growth in China combined with the addition of revenues from Japan, where we obtained marketing approval in the fourth quarter of 2012. Gross profit for the fourth quarter of 2013 was $5.8 million, an increase of $3.8 million over gross profit of $2.0 million in the same period of 2012. Gross margin was 56.6% an increase of 19.1 percentage points over the gross margin of 37.5% in the fourth quarter of 2012. The increase in gross margin was due to an increase in both product margins and service margins. The increase in product margins was driven by improvements in kit costs, amortization of fixed costs over increased volume and a favorable standard cost adjustment in the quarter. The service margin increase was driven primarily by the consolidation of all U.S. testing into one lab facility in Memphis, TN, kit cost reductions and significant operational improvements in workflow in the Memphis facility. Operating expenses were $7.9 million in the fourth quarter of 2013, an increase of $1.6 million compared to $6.3 million in the same period last year. The increase in operating expenses was primarily due to the hiring of additional sales and marketing personnel, an increase in accounting and audit costs associated with our initial public offering in November of 2013 and an increase in administrative costs related to being a public company. EBITDA for the fourth quarter of 2013 was $(2.7) million compared to $(4.2) million in the fourth quarter of 2012. Adjusted EBITDA was $(1.4) million for the fourth quarter of 2013 compared to $(4.1) million in the same period in 2012. EBITDA and Adjusted EBTIDA are non-GAAP financial measures. Net loss for the fourth quarter of 2013 was $3.3 million or $0.38 per share compared to $4.3 million or $1.99 per share in the fourth quarter of 2012. Net loss per share was based on 8,721,880 and 2,153,826 weighted average ordinary shares outstanding for the fourth quarter of 2013 and 2012, respectively. Cash and cash equivalents were $76.5 million as of December 31, 2013 compared to $12.6 million as of December 31, 2012. This increase is primarily due to the successful completion of our initial public offering in November 2013, raising net proceeds of $63.9 million. Full Year 2013 Financial Results Revenues for the full year 2013 were $38.8 million, an increase of $18.1 million over 2012 full year revenues of $20.7 million. For the full year 2013, product revenues were $19.9 million representing year-over-year growth of 119% over 2012 revenues of $9.1 million. 2013 service revenues were $18.9 million, a 63% increase over 2012 service revenues of $11.6 million. Full year 2013 U.S. revenues were $17.3 million, up 67% over 2012 U.S. revenues of $10.4 million. 2013 revenues in Europe and the Rest of the World region were $7.2 million, a 10% improvement from the prior year revenues of $6.5 million. Revenues in Asia were $14.3 million representing growth of 277% on a year-over-year basis from the 2012 Asia revenues of $3.8 million. Gross profit was $20.2 million for the full year 2013, an increase of $11.9 million over $8.3 million from the prior year. Gross margin for full year 2013 was 52.0% compared to 39.9% in full year 2012. Margin expansion was primarily driven by reduction in kit costs, amortization of fixed costs over increased volume, lab consolidation and operating efficiencies described above. 2013 operating expenses were $27.5 million, an increase of $6.3 million over the $21.2 million in operating expenses during the 2012 year. The increase in operating expenses was primarily driven by an increased investment in sales and marketing personnel, an increase in accounting and audit costs related to our initial public offering and an increase in administrative costs related to being a public company. EBITDA for 2013 was $(6.8) million compared to $(12.7) million in 2012. Adjusted EBITDA was $(5.7) million for 2013 compared to $(12.1) million in the prior year. Both EBITDA and Adjusted EBITDA for 2013 include $1.9 million of accounting and audit costs related to our IPO. Full year 2013 net loss was $8.7 million or $2.26 per share in comparison to a $14.9 million net loss or $8.44 per share for full year 2012. Net loss per share was based on 3,830,837 and 1,763,728 weighted average ordinary shares outstanding for 2013 and 2012, respectively. Business Outlook As previously announced, we expect to report revenues of between $47 and $50 million for the full year 2014. We expect to report revenues of between $11.4 and $11.9 million for the first quarter of 2014, due in part to anticipated above average stocking orders from outside the U.S. We will continue our focus on improving our gross margins but we expect that the rate of increase will be less than in 2013. We expect that operating costs will increase as we invest proceeds from our IPO. Our investment priorities include expansion of our sales and marketing resources in the U.S. and outside the U.S., investments in our product pipeline and investments in infrastructure to support a rapidly growing public company. Conference Call Oxford Immunotec will host a conference call on Tuesday, March 4, 2014 at 8:00 a.m. Eastern Time to discuss its fourth quarter and full year 2013 financial results. The call will be concurrently webcast. To listen to the conference call on your telephone please dial, (855) 363-5047 for United States callers and (484) 365-2897 for international callers and reference confirmation code 2444858, approximately ten minutes prior to start time. To access the live audio webcast or subsequent archived recording, visit the Investor Relations section of Oxford Immunotec's website at http://www.oxfordimmunotec.com. The replay will be available on the Company's website for approximately 90 days. About Oxford Immunotec Oxford Immunotec Global PLC is a global, commercial-stage diagnostics company committed to improving patient care by providing advanced, innovative tests in the field of immunology. The proprietary T-SPOT(r) technology platform measures the responses of specific immune cells, known as T cells, to inform the diagnosis, prognosis and monitoring of patients with immunologically controlled diseases. T cells are a central component of the human body's immune system, and are implicated in the control and progression of many medical conditions, including certain types of infectious diseases, cancers and autoimmune diseases. The Company's initial product developed using the T-SPOT technology platform is the T-SPOT.TB test, which is used to test for latent tuberculosis infection. The T-SPOT.TB test has been approved for sale in over 50 countries, including the United States, where it has received pre-market approval from the Food and Drug Administration, Europe, where it has obtained a CE mark, as well as Japan and China. The Company is headquartered near Oxford, UK and in Marlborough, MA. Additional information can be found at www.oxfordimmunotec.com. T-SPOT and the Oxford Immunotec logo are trademarks of Oxford Immunotec Ltd. Forward-Looking Statements This release contains forward-looking statements, including statements regarding future revenues, expenses and the prospects for sales of our products. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties, includes, among others, decisions by regulatory authorities, hospitals and other health care institutions, laboratories, physicians, patients and third party payers, as well as our ability to expeditiously and successfully expand our sales and distribution networks and the other factors described under the 'Risk Factors' section in our filings with the Securities and Exchange Commission. When evaluating Oxford Immunotec's business and securities, investors should give careful consideration to these risks and uncertainties. Forward-looking statements are based on current expectations and assumptions and currently available data and are neither predictions nor guarantees of future events or performance. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation. We do not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law. Oxford Immunotec Global PLC Condensed consolidated statements of operations (unaudited) (in thousands, except per share data) -------------------------------------------------------------------------------- - Quarter ended Year ended December December 31, 31, -------------------------------------------- 2013 2012 2013 2012 -------------------------------------------------------------------------------- Revenue Product $ 5,017 $ 2,273 $ 19,905 $ 9,080 Service 5,208 3,006 18,879 11,605 -------------------------------------------- Total revenue 10,225 5,279 38,784 20,685 Cost of revenue Product 1,708 1,213 8,475 4,329 Service 2,727 2,088 10,125 8,095 -------------------------------------------- Total cost of revenue 4,435 3,301 18,600 12,424 -------------------------------------------- Gross profit 5,790 1,978 20,184 8,261 Operating expenses: Research and development 563 715 2,146 1,947 Sales and marketing 3,713 3,282 13,270 11,177 General and administrative 3,662 2,284 12,119 8,068 -------------------------------------------- Total operating expenses 7,938 6,281 27,535 21,192 -------------------------------------------- Loss from operations (2,148) (4,303) (7,351) (12,931) Other expense: Interest expense, net (72) (25) (328) (1,477) Foreign exchange losses (467) (134) (423) (626) Other expense (584) -- (470) -- -------------------------------------------- Loss before income taxes (3,271) (4,462) (8,572) (15,034) Income tax expense (benefit) 57 (172) 92 (151) -------------------------------------------- Net loss $ (3,328) $ (4,290) $ (8,664) $ (14,883) -------------------------------------------- Net loss per share attributable to $ (0.38) $ (1.99) $ (2.26) $ (8.44) ordinary shareholders--basic and diluted Weighted-average shares used to 8,721,880 2,153,826 3,830,837 1,763,728 compute net loss attributable to ordinary shareholders--basic and diluted -------------------------------------------------------------------------------- Note: per share amounts have been adjusted to reflect the Company's 1-for-6.705 reverse stock split which occurred in November 2013. Reconciliation of net loss to adjusted EBITDA (unaudited) (in thousands) -------------------------------------------------------------------------------- - Quarter ended Year ended December December 31, 31, --------------------------------------------- 2013 2012 2013 2012 -------------------------------------------------------------------------------- Net loss $ (3,328) $ (4,290) $ (8,664) $ (14,883) Income tax expense (benefit) 57 (172) 92 (151) Interest income (1) (1) (1) (1) Interest expense 73 26 329 1,478 Depreciation and amortization 529 221 1,392 801 --------------------------------------------- EBITDA (2,670) (4,216) (6,852) (12,756) Reconciling items: Share-based compensation expense 63 20 140 79 Unrealized exchange losses 346 122 155 546 Loss on change in fair value of 279 -- 279 -- warrants Loss on change in fair value of 561 -- 561 -- derivative instrument --------------------------------------------- Adjusted EBITDA $ (1,421) $ (4,074) $ (5,717) $ (12,131) -------------------------------------------------------------------------------- Oxford Immunotec Global PLC (unaudited) Condensed consolidated balance sheets (in thousands) ------------------------------------------------------------------ December 31, ------------------- 2013 2012 ----------------------------------------------------------------- Assets Current assets: Cash and cash equivalents $ 76,494 $ 12,578 Restricted cash 87 387 Accounts receivable, net 4,754 5,400 Inventory 5,450 3,073 Prepaid expenses and other 2,242 1,342 ------------------- Total current assets 89,027 22,780 Restricted cash, non-current 362 287 Property and equipment, net 2,964 2,249 Intangible assets, net 331 107 Other assets 60 60 ------------------- Total assets $ 92,744 $ 25,483 ------------------- Liabilities and shareholders' equity Current liabilities: Accounts payable $ 2,310 $ 1,754 Accrued expenses 6,936 3,962 Deferred income 1,540 908 Revolving line of credit -- 1,548 Current portion of loans payable 170 79 Taxes payable 177 140 ------------------- Total current liabilities 11,133 8,391 Long-term portion of loans payable 563 143 Other liabilities 296 -- ------------------- Total liabilities 11,992 8,534 ------------------- Shareholders' equity: Convertible preferred ordinary shares -- 83 Ordinary shares. 188 24 Subscription of G preferred ordinary shares -- 8,075 Additional paid-in capital 183,967 103,380 Accumulated deficit (99,655) (90,991) Accumulated other comprehensive loss (3,748) (3,622) ------------------- Total shareholders' equity 80,752 16,949 ------------------- Total liabilities and shareholders' equity $ 92,744 $ 25,483 ----------------------------------------------------------------- For Media Inquiries: Caroline Crawley Oxford Immunotec Tel: +44 1235 442796 ccrawley@oxfordimmunotec.com For Investor Inquiries: Rick Altieri Chief Financial Officer, Oxford Immunotec Tel: +1 (508) 481-4648 raltieri@oxfordimmunotec.com Mark Klausner Westwicke Partners Tel: +1 (443) 213-0500 oxfordimmunotec@westwicke.com News Source: NASDAQ OMX End of Corporate News --------------------------------------------------------------------- 04.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Oxford Immunotec United Kingdom ISIN: GB00BGFBB958 End of News DGAP News-Service --------------------------------------------------------------------- 255623 04.03.2014