SAN JOSE, CA--(Marketwired - Apr 23, 2015) - Align Technology (
- Q1 revenues of $198 million, up 10% year-over-year, and diluted EPS of $0.44
- Q1 worldwide Clear Aligner shipments of 131 thousand cases, up 17% year-over-year, with North America up 12% and International up 29%
Align Technology, Inc. (
"Our first quarter was a bit stronger than we expected, getting us off to a good start to the year. This progress was driven by continued strong year-over-year growth from our International team and solid improvement in our North American business as well," said Thomas M. Prescott, Align president and CEO. "We are pleased to have delivered better than expected results with strong revenues, margins, and EPS, driven primarily by higher Invisalign volume from our North American orthodontists."
Summary Financial Comparisons (In millions except for shipments and per share amounts)
| Q1'15 | Q4'14 | Q1'14 | Q/Q | Y/Y | ||||||||||||||
| GAAP | ||||||||||||||||||
| Clear Aligner shipments | 130,780 | 126,905 | 112,180 | 3.1 | % | 16.6 | % | |||||||||||
| Net revenues | $ | 198.1 | $ | 198.6 | $ | 180.6 | (0.3 | )% | 9.7 | % | ||||||||
| Clear Aligner | $ | 187.0 | $ | 186.4 | $ | 168.2 | 0.3 | % | 11.2 | % | ||||||||
| Scanner & Services | $ | 11.1 | $ | 12.2 | $ | 12.4 | (9.1 | )% | (10.9 | )% | ||||||||
| Net profit | $ | 36.2 | $ | 39.5 | $ | 32.4 | (8.5 | )% | 11.5 | % | ||||||||
| Diluted EPS | $ | 0.44 | $ | 0.48 | $ | 0.39 | $ | (0.04 | ) | $ | 0.05 | |||||||
Note: Changes and percentages are based on actual values and may effect totals due to rounding
As of March 31, 2015, Align had $613.0 million in cash, cash equivalents and short-term and long-term marketable securities compared to $602.6 million as of December 31, 2014. We repurchased approximately 0.03 million shares of stock for $1.8 million in Q1'15. These repurchases were part of a three-year, $300 million stock repurchase program announced on April 23, 2014 of which the first $100 million of the program was completed in Q1'15.
Q2 2015 Business Outlook For the second quarter of 2015 (Q2'15), Align provides the following guidance:
- Clear Aligner case shipments in a range of 139.5 thousand to 142.0 thousand, up approximately 18% over the same period a year-ago at the mid-point of the range and above our three-year average.
- Net revenues in a range of $206.6 million to $210.4 million.
- Diluted EPS in a range of $0.35 to $0.38.
Align Web Cast and Conference Call Align will host a conference call today, April 23, 2015 at 4:30 p.m. ET, 1:30 p.m. PT, to review its first quarter 2015 results, discuss future operating trends and the business outlook. The conference call will also be web cast live via the Internet. To access the web cast, go to the "Events & Presentations" section under Company Information on Align's Investor Relations web site at http://investor.aligntech.com . To access the conference call, please dial 201-689-8261 approximately fifteen minutes prior to the start of the call. An archived audio web cast will be available beginning approximately one hour after the call's conclusion and will remain available for approximately 12 months. Additionally, a telephonic replay of the call can be accessed by dialing 877-660-6853 with conference number 13605393 followed by #. For international callers, please dial 201-612-7415 and use the same conference number referenced above. The telephonic replay will be available through 5:30 p.m. ET on April 30, 2015.
About Align Technology, Inc. Align Technology is the leader in modern clear aligner orthodontics that designs, manufactures and markets the Invisalign® system, which provides dental professionals with a range of treatment options for adults and teenagers. Align also offers the iTero 3D digital scanning system and services for orthodontic and restorative dentistry. Align was founded in March 1997 and received FDA clearance to market the Invisalign system in 1998. Visit www.aligntech.com for more information.
For additional information about the Invisalign system or to find an Invisalign provider in your area, please visit www.invisalign.com . For additional information about the iTero 3D digital scanning system, please visit www.itero.com .
Forward-Looking Statement This news release, including the tables below, contains forward-looking statements, including statements regarding certain business metrics for the second quarter of 2015, including, but not limited to, anticipated net revenues, gross margin, operating expenses, operating profit, diluted earnings per share, case shipments, and additional common stock repurchases. Forward-looking statements contained in this news release and the tables below relating to expectations about future events or results are based upon information available to Align as of the date hereof. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. As a result, actual results may differ materially and adversely from those expressed in any forward-looking statement. Factors that might cause such a difference include, but are not limited to, difficulties predicting customer and consumer purchasing behavior, the willingness and ability of our customers to maintain and/or increase product utilization in sufficient numbers, the possibility that the development and release of new products does not proceed in accordance with the anticipated timeline, the possibility that the market for the sale of these new products may not develop as expected, the risks relating to Align's ability to sustain or increase profitability or revenue growth in future periods while controlling expenses, growth related risks, including capacity constraints and pressure on our internal systems and personnel, our ability to successfully achieve the anticipated benefits from the scanner and services business, continued customer demand for our existing and new products, changes in consumer spending habits as a result of, among other things, prevailing economic conditions, levels of employment, salaries and wages and consumer confidence, the timing of case submissions from our doctors within a quarter, acceptance of our products by consumers and dental professionals, foreign operational, political and other risks relating to Align's international manufacturing operations, Align's ability to protect its intellectual property rights, continued compliance with regulatory requirements, competition from existing and new competitors, Align's ability to develop and successfully introduce new products and product enhancements and the loss of key personnel. These and other risks are detailed from time to time in Align's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the Securities and Exchange Commission on February 26, 2015. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
| ALIGN TECHNOLOGY, INC. | ||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (in thousands, except per share data) | ||||||||
| Three Months Ended | ||||||||
| March 31, 2015 | March 31, 2014 | |||||||
| Net revenues | $ | 198,086 | $ | 180,646 | ||||
| Cost of revenues | 46,996 | 43,395 | ||||||
| Gross profit | 151,090 | 137,251 | ||||||
| Operating expenses: | ||||||||
| Selling, general and adminstrative | 88,281 | 82,067 | ||||||
| Research and development | 13,885 | 13,380 | ||||||
| Total operating expenses | 102,166 | 95,447 | ||||||
| Operating profit | 48,924 | 41,804 | ||||||
| Interest and other income (expense), net | (1,452 | ) | 601 | |||||
| Profit before income taxes | 47,472 | 42,405 | ||||||
| Provision for income taxes | 11,295 | 9,961 | ||||||
| Net profit | $ | 36,177 | $ | 32,444 | ||||
| Net profit per share | ||||||||
| - basic | $ | 0.45 | $ | 0.40 | ||||
| - diluted | $ | 0.44 | $ | 0.39 | ||||
| Shares used in computing net profit per share | ||||||||
| - basic | 80,459 | 81,120 | ||||||
| - diluted | 81,824 | 82,817 | ||||||
| ALIGN TECHNOLOGY, INC. | ||||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands) | ||||||||
| March 31, | December 31, | |||||||
| 2015 | 2014 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 189,978 | $ | 199,871 | ||||
| Marketable securities, short-term | 254,823 | 254,787 | ||||||
| Accounts receivable, net | 138,159 | 129,751 | ||||||
| Inventories | 14,572 | 15,928 | ||||||
| Prepaid expenses and other current assets | 59,780 | 56,823 | ||||||
| Total current assets | 657,312 | 657,160 | ||||||
| Marketable securities, long-term | 168,171 | 147,892 | ||||||
| Property, plant and equipment, net | 99,764 | 90,125 | ||||||
| Goodwill and intangible assets, net | 81,274 | 82,056 | ||||||
| Deferred tax assets | 14,630 | 3,099 | ||||||
| Other assets | 7,254 | 7,665 | ||||||
| Total assets | $ | 1,028,405 | $ | 987,997 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 24,996 | $ | 23,247 | ||||
| Accrued liabilities | 81,711 | 87,880 | ||||||
| Deferred revenues | 93,868 | 90,684 | ||||||
| Total current liabilities | 200,575 | 201,811 | ||||||
| Other long term liabilities | 34,296 | 33,415 | ||||||
| Total liabilities | 234,871 | 235,226 | ||||||
| Total stockholders' equity | 793,534 | 752,771 | ||||||
| Total liabilities and stockholders' equity | $ | 1,028,405 | $ | 987,997 | ||||
| ALIGN TECHNOLOGY, INC. |
| Q1 2015 FINANCIAL AND BUSINESS METRICS |
| (in thousands except average selling price, utilization and doctors trained) |
| Q1 | Q2 | Q3 | Q4 | Fiscal | Q1 | ||||||||||||||||||||||
| 2014 | 2014 | 2014 | 2014 | 2014 | 2015 | ||||||||||||||||||||||
| Invisalign Clear Aligner Net Revenues by Geography: | |||||||||||||||||||||||||||
| North America | $ | 107,910 | $ | 111,648 | $ | 113,349 | $ | 113,670 | $ | 446,577 | $ | 118,844 | |||||||||||||||
| International | 49,848 | 55,988 | 53,439 | 60,467 | 219,742 | 55,920 | |||||||||||||||||||||
| Non-case* | 10,481 | 12,099 | 11,350 | 12,300 | 46,230 | 12,265 | |||||||||||||||||||||
| Total Clear Aligner Net Revenues | $ | 168,239 | $ | 179,735 | $ | 178,138 | $ | 186,437 | $ | 712,549 | $ | 187,029 | |||||||||||||||
| YoY % growth | 18.8 | % | 17.2 | % | 16.0 | % | 12.2 | % | 15.9 | % | 11.2 | % | |||||||||||||||
| QoQ % growth | 1.2 | % | 6.8 | % | -0.9 | % | 4.7 | % | 0.3 | % | |||||||||||||||||
| *includes Invisalign training, ancillary products, and retainers | |||||||||||||||||||||||||||
| Average Invisalign Selling Price (ASP): | |||||||||||||||||||||||||||
| Worldwide ASP | $ | 1,405 | $ | 1,405 | $ | 1,395 | $ | 1,370 | $ | 1,395 | $ | 1,335 | |||||||||||||||
| International ASP | $ | 1,620 | $ | 1,625 | $ | 1,560 | $ | 1,510 | $ | 1,575 | $ | 1,410 | |||||||||||||||
| Invisalign Clear Aligner Cases Shipped by Geography: | |||||||||||||||||||||||||||
| North America | 81,420 | 84,850 | 85,405 | 86,855 | 338,530 | 91,110 | |||||||||||||||||||||
| International | 30,760 | 34,450 | 34,210 | 40,050 | 139,470 | 39,670 | |||||||||||||||||||||
| Total Cases Shipped | 112,180 | 119,300 | 119,615 | 126,905 | 478,000 | 130,780 | |||||||||||||||||||||
| Number of Invisalign Doctors Cases Shipped To: | |||||||||||||||||||||||||||
| North America | 19,015 | 19,505 | 19,550 | 19,745 | 29,890 | 20,165 | |||||||||||||||||||||
| International | 7,185 | 7,685 | 7,950 | 8,945 | 13,450 | 9,050 | |||||||||||||||||||||
| Total Doctors Cases Shipped To | 26,200 | 27,190 | 27,500 | 28,690 | 43,340 | 29,215 | |||||||||||||||||||||
| Invisalign Doctor Utilization Rates*: | |||||||||||||||||||||||||||
| North America | 4.3 | 4.4 | 4.4 | 4.4 | 11.3 | 4.5 | |||||||||||||||||||||
| North American Orthodontists | 8.1 | 8.4 | 8.8 | 8.6 | 27.7 | 9.0 | |||||||||||||||||||||
| North American GP Dentists | 2.9 | 2.9 | 2.8 | 2.9 | 6.9 | 2.9 | |||||||||||||||||||||
| International | 4.3 | 4.5 | 4.3 | 4.5 | 10.4 | 4.4 | |||||||||||||||||||||
| Total Utilization Rates | 4.3 | 4.4 | 4.4 | 4.4 | 11.0 | 4.5 | |||||||||||||||||||||
| * # of cases shipped/# of doctors to whom cases were shipped | |||||||||||||||||||||||||||
| Number of Invisalign Doctors Trained: | |||||||||||||||||||||||||||
| North America | 700 | 1,150 | 1,125 | 1,170 | 4,145 | 870 | |||||||||||||||||||||
| International | 1,255 | 1,380 | 1,400 | 1,255 | 5,290 | 1,540 | |||||||||||||||||||||
| Total Doctors Trained Worldwide | 1,955 | 2,530 | 2,525 | 2,425 | 9,435 | 2,410 | |||||||||||||||||||||
| Total to Date Worldwide | 86,515 | 89,045 | 91,570 | 93,995 | 93,995 | 96,405 | |||||||||||||||||||||
| Total Net Revenues: | |||||||||||||||||||||||||||
| Clear Aligner Net Revenues | $ | 168,239 | $ | 179,735 | $ | 178,138 | $ | 186,437 | $ | 712,549 | $ | 187,029 | |||||||||||||||
| Scanner & Services Net Revenues | 12,407 | 12,796 | 11,738 | 12,163 | 49,104 | 11,057 | |||||||||||||||||||||
| Total Worldwide Net Revenues | $ | 180,646 | $ | 192,531 | $ | 189,876 | $ | 198,600 | $ | 761,653 | $ | 198,086 | |||||||||||||||
| YoY % growth | 17.6 | % | 17.5 | % | 15.4 | % | 11.4 | % | 15.4 | % | 9.7 | % | |||||||||||||||
| QoQ % growth | 1.3 | % | 6.6 | % | -1.4 | % | 4.6 | % | -0.3 | % | |||||||||||||||||
| Stock-based Compensation (SBC) | |||||||||||||||||||||||||||
| SBC included in Gross Profit | $ | 800 | $ | 940 | $ | 865 | $ | 965 | $ | 3,570 | $ | 980 | |||||||||||||||
| SBC included in Operating Expenses | 8,300 | 9,370 | 9,045 | 9,510 | 36,225 | 10,670 | |||||||||||||||||||||
| Total SBC Expense | $ | 9,100 | $ | 10,310 | $ | 9,910 | $ | 10,475 | $ | 39,795 | $ | 11,650 | |||||||||||||||
Note: Historical public data may differ due to rounding. Additionally, rounding may effect totals.
| ALIGN TECHNOLOGY, INC. | |
| BUSINESS OUTLOOK SUMMARY | |
| (unaudited) | |
| The outlook figures provided below and elsewhere in this press release are approximate in nature since Align's business outlook is difficult to predict. Align's future performance involves numerous risks and uncertainties and the company's results could differ materially from the outlook provided. Some of the factors that could affect Align's future financial performance and business outlook are set forth under "Forward Looking Information" above in this press release. | |
| Financial Outlook | |
| (in millions, except per share amounts and percentages) | |
| Q2'15 Guidance | |
| GAAP | |
| Net Revenues | $206.6 - $210.4 |
| Gross Margin | 75.0% - 75.7% |
| Operating Expenses | $117.3 - $118.3 |
| Operating Margin | 18.3% - 19.5% |
| Net Income per Diluted Share | $0.35 - $0.38 |
| Business Metrics: | Q2'15 |
| Case Shipments | 139.5K - 142.0K |
| Capital Expenditure | $20M - $25M |
| Depreciation & Amortization | $4.5M - $5.0M |
| Diluted Shares Outstanding | 82.0M* |
| Stock Based Compensation Expense | $13.7M |
| Tax Rate | 24.0% |
| * Excludes any stock repurchases during the quarter | |
