SAN JOSE, CA --(Marketwired - November 07, 2016) -
- Q3 revenues up 34.2% year-over-year to $278.6 million
- Q3 results driven by Clear Aligner revenues up 22.9% year-over-year and Scanner revenues up 273.7% year-over-year.
- Q3 Clear Aligner shipments up 20.5% year-over-year to 177.8 thousand cases, international shipments up 33.8% year-over-year
- Diluted EPS $0.63, up $0.29 year-over-year
Align Technology, Inc. (
"Q3 was a solid quarter with revenue, margins and EPS above the high end of our guidance. Our results were driven by record Invisalign case volume, up 20.5% year-over-year reflecting growth across all customer channels and geographies, as well as continued demand for iTero scanners," said Joe Hogan, Align Technology President and CEO.
GAAP Summary Financial Comparisons Third Quarter Fiscal 2016
| Q3'16 | Q2'16 | Q3'15 | Q/Q Change | Y/Y Change | |||||||
| Clear Aligner Shipments | 177,755 | 176,995 | 147,485 | +0.4% | +20.5% | ||||||
| Net Revenues | $278.6M | $269.4M | $207.6M | +3.4% | +34.2% | ||||||
| Clear Aligner | $243.7M | $243.4M | $198.3M | +0.1% | +22.9% | ||||||
| Scanner & Services | $34.9M | $25.90M | $9.3M | +34.7% | +273.7% | ||||||
| Net Profit | $51.4M | $50.1M | $27.6M | +2.4% | +86.0% | ||||||
| Diluted EPS | $0.63 | $0.62 | $0.34 | $0.01 | $0.29 | ||||||
Note: Changes and percentages are based on actual values and may effect totals due to rounding
As of September 30, 2016, Align had $675.8 million in cash, cash equivalents and marketable securities compared to $678.7 million as of December 31, 2015. During Q3'16, Align concluded our previously announced $50 million accelerated stock repurchase (ASR) with final delivery of 143,310 shares and purchased an additional 88,000 shares amounting to $8.2 million in open market repurchases. These repurchases were collectively part of a three-year, $300 million stock repurchase program announced on April 23, 2014 ("the Align 2014 Repurchase Plan") of which the third $100 million was authorized to be purchased through April 2017. In addition to the April 2014 Repurchase Plan, Align also announced on April 28, 2016 a new plan to repurchase up to an additional $300.0 million of the Company's stock. There remains approximately $341.8 million available for repurchases under the two existing stock repurchase authorizations.
Q4 2016 Business Outlook
For the fourth quarter of 2016 (Q4'16), Align provides the following guidance:
- Clear Aligner case shipments in the range of 182.5 thousand to 184.5 thousand, up approximately 13.8% to 15.0% over the same period a year ago.
- Net revenues in the range of $289.2 million to $293.9 million.
- Diluted EPS in the range of $0.64 to $0.67.
Align Web Cast and Conference Call
Align will host a conference call today, November 7, 2016 at 4:30 p.m. ET, 1:30 p.m. PT, to review its third quarter 2016 results, discuss future operating trends and the business outlook. The conference call will also be web cast live via the Internet. To access the webcast, 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. 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 13646649 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 November 21, 2016.
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 fourth quarter of 2016, including, but not limited to, anticipated net revenues, gross margin, operating expenses, operating profit, diluted earnings per share, and case shipments. 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, or that the expected benefits of new or existing business relationships will not be achieved as anticipated, 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, 2015, which was filed with the Securities and Exchange Commission (SEC) on February 25, 2016, and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, which was filed with the SEC on August 4, 2016. 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 | Nine Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||
| Net revenues | $ | 278,589 | $ | 207,636 | $ | 786,671 | $ | 615,210 | |||||
| Cost of net revenues | 69,387 | 50,060 | 191,626 | 147,910 | |||||||||
| Gross profit | 209,202 | 157,576 | 595,045 | 467,300 | |||||||||
| Operating expenses: | |||||||||||||
| Selling, general and adminstrative | 126,708 | 101,751 | 360,385 | 290,657 | |||||||||
| Research and development | 20,415 | 17,779 | 54,111 | 47,348 | |||||||||
| Total operating expenses | 147,123 | 119,530 | 414,496 | 338,005 | |||||||||
| Income fom operations | 62,079 | 38,046 | 180,549 | 129,295 | |||||||||
| Interest and other income (expense), net | 1,463 | (1,568) | 1,161 | (2,846) | |||||||||
| Net income before provision for income taxes and equity in losses of investee | 63,542 | 36,478 | 181,710 | 126,449 | |||||||||
| Provision for income taxes | 11,698 | 8,862 | 39,172 | 31,306 | |||||||||
| Equity in losses of investee, net of tax | 477 | - | 477 | - | |||||||||
| Net income | $ | 51,367 | $ | 27,616 | $ | 142,061 | $ | 95,143 | |||||
| Net income per share | |||||||||||||
| Basic | $ | 0.64 | $ | 0.35 | $ | 1.78 | $ | 1.19 | |||||
| Diluted | $ | 0.63 | $ | 0.34 | $ | 1.74 | $ | 1.17 | |||||
| Shares used in computing net income per share | |||||||||||||
| Basic | 79,977 | 79,808 | 79,920 | 80,173 | |||||||||
| Diluted | 81,466 | 81,092 | 81,523 | 81,576 | |||||||||
| ALIGN TECHNOLOGY, INC. | |||||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (in thousands) | |||||||||
| September 30, 2016 | December 31, 2015 | ||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 419,948 | $ | 167,714 | |||||
| Marketable securities, short-term | 193,018 | 359,581 | |||||||
| Accounts receivable, net | 244,992 | 158,550 | |||||||
| Inventories | 26,341 | 19,465 | |||||||
| Prepaid expenses and other current assets | 27,469 | 26,700 | |||||||
| Total current assets | 911,768 | 732,010 | |||||||
| Marketable securities, long-term | 62,820 | 151,370 | |||||||
| Property, plant and equipment, net | 172,658 | 136,473 | |||||||
| Equity method investments | 46,268 | - | |||||||
| Goodwill and intangible assets, net | 82,987 | 79,162 | |||||||
| Deferred tax assets | 68,918 | 51,416 | |||||||
| Other assets | 13,474 | 8,202 | |||||||
| Total assets | $ | 1,358,893 | $ | 1,158,633 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 33,104 | $ | 34,354 | |||||
| Accrued liabilities | 132,538 | 107,765 | |||||||
| Deferred revenues | 177,409 | 129,553 | |||||||
| Total current liabilities | 343,051 | 271,672 | |||||||
| Income tax payable | 42,539 | 37,512 | |||||||
| Other long term liabilities | 993 | 1,523 | |||||||
| Total liabilities | 386,583 | 310,707 | |||||||
| Total stockholders' equity | 972,310 | 847,926 | |||||||
| Total liabilities and stockholders' equity | $ | 1,358,893 | $ | 1,158,633 | |||||
| ALIGN TECHNOLOGY, INC. |
| Q3 2016 FINANCIAL AND BUSINESS METRICS |
| (in thousands except average selling price, utilization and doctors trained) |
| Q1 | Q2 | Q3 | Q4 | Fiscal | Q1 | Q2 | Q3 | |||||||||||||||||||
| 2015 | 2015 | 2015 | 2015 | 2015 | 2016 | 2016 | 2016 | |||||||||||||||||||
| Invisalign Clear Aligner Net Revenues by Geography: | ||||||||||||||||||||||||||
| North America | $ | 118,844 | $ | 126,137 | $ | 124,085 | $ | 129,663 | $ | 498,729 | $ | 135,699 | $ | 143,909 | $ | 143,800 | ||||||||||
| International | 55,920 | 61,896 | 61,265 | 70,980 | 250,061 | 69,850 | 83,703 | 84,304 | ||||||||||||||||||
| Non-case* | 12,265 | 12,784 | 12,942 | 13,405 | 51,396 | 14,149 | 15,824 | 15,564 | ||||||||||||||||||
| Total Clear Aligner Net Revenues | $ | 187,029 | $ | 200,817 | $ | 198,292 | $ | 214,048 | $ | 800,186 | $ | 219,698 | $ | 243,436 | $ | 243,668 | ||||||||||
| YoY % growth | 11.2% | 11.7% | 11.3% | 14.8% | 12.3% | 17.5% | 21.2% | 22.9% | ||||||||||||||||||
| QoQ % growth | 0.3% | 7.4% | -1.3% | 7.9% | 2.6% | 10.8% | 0.1% | |||||||||||||||||||
| *includes Invisalign training, ancillary products, and retainers | ||||||||||||||||||||||||||
| Average Invisalign Selling Price (ASP): | ||||||||||||||||||||||||||
| Worldwide ASP | $ | 1,335 | $ | 1,300 | $ | 1,255 | $ | 1,250 | $ | 1,285 | $ | 1,255 | $ | 1,285 | $ | 1,285 | ||||||||||
| International ASP | $ | 1,410 | $ | 1,380 | $ | 1,325 | $ | 1,315 | $ | 1,355 | $ | 1,315 | $ | 1,345 | $ | 1,365 | ||||||||||
| Invisalign Clear Aligner Cases Shipped by Geography: | ||||||||||||||||||||||||||
| North America | 91,110 | 99,630 | 101,260 | 106,390 | 398,390 | 110,500 | 114,855 | 115,900 | ||||||||||||||||||
| International | 39,670 | 44,940 | 46,225 | 54,010 | 184,845 | 53,195 | 62,140 | 61,855 | ||||||||||||||||||
| Total Cases Shipped | 130,780 | 144,570 | 147,485 | 160,400 | 583,235 | 163,695 | 176,995 | 177,755 | ||||||||||||||||||
| YoY % growth | 16.6% | 28.9% | 23.6% | 26.4% | 22.0% | 25.2% | 22.4% | 20.5% | ||||||||||||||||||
| QoQ % growth | 3.1% | 10.5% | 2.0% | 8.8% | 2.1% | 8.1% | 0.4% | |||||||||||||||||||
| Number of Invisalign Doctors Cases Shipped To: | ||||||||||||||||||||||||||
| North America | 20,165 | 21,335 | 21,160 | 21,835 | 31,710 | 22,355 | 22,575 | 22,570 | ||||||||||||||||||
| International | 9,050 | 9,790 | 10,150 | 10,865 | 16,460 | 11,280 | 12,485 | 12,720 | ||||||||||||||||||
| Total Doctors Cases Shipped To | 29,215 | 31,125 | 31,310 | 32,700 | 48,170 | 33,635 | 35,060 | 35,290 | ||||||||||||||||||
| Invisalign Doctor Utilization Rates*: | ||||||||||||||||||||||||||
| North America | 4.5 | 4.7 | 4.8 | 4.9 | 12.6 | 4.9 | 5.1 | 5.1 | ||||||||||||||||||
| North American Orthodontists | 9.0 | 9.5 | 9.9 | 9.9 | 31.8 | 10.4 | 10.7 | 11.1 | ||||||||||||||||||
| North American GP Dentists | 2.9 | 3.0 | 2.9 | 3.1 | 7.4 | 3.0 | 3.1 | 3.0 | ||||||||||||||||||
| International | 4.4 | 4.6 | 4.6 | 5.0 | 11.2 | 4.7 | 5.0 | 4.9 | ||||||||||||||||||
| Total Utilization Rates | 4.5 | 4.6 | 4.7 | 4.9 | 12.1 | 4.9 | 5.1 | 5.0 | ||||||||||||||||||
| * # of cases shipped/# of doctors to whom cases were shipped | ||||||||||||||||||||||||||
| Number of Invisalign Doctors Trained: | ||||||||||||||||||||||||||
| North America | 870 | 1,120 | 1,060 | 1,270 | 4,320 | 875 | 1,125 | 1,300 | ||||||||||||||||||
| International | 1,540 | 1,335 | 1,200 | 1,400 | 5,475 | 1,605 | 1,760 | 1,315 | ||||||||||||||||||
| Total Doctors Trained Worldwide | 2,410 | 2,455 | 2,260 | 2,670 | 9,795 | 2,480 | 2,885 | 2,615 | ||||||||||||||||||
| Total to Date Worldwide | 96,405 | 98,860 | 101,120 | 103,790 | 103,790 | 106,270 | 109,155 | 111,770 | ||||||||||||||||||
| Total Net Revenues: | ||||||||||||||||||||||||||
| Clear Aligner Net Revenues | $ | 187,029 | $ | 200,817 | $ | 198,292 | $ | 214,048 | $ | 800,186 | $ | 219,698 | $ | 243,436 | $ | 243,668 | ||||||||||
| Scanner & Services Net Revenues | 11,057 | 8,671 | 9,344 | 16,228 | 45,300 | 19,022 | 25,926 | 34,921 | ||||||||||||||||||
| Total Worldwide Net Revenues | $ | 198,086 | $ | 209,488 | $ | 207,636 | $ | 230,276 | $ | 845,486 | $ | 238,720 | $ | 269,362 | $ | 278,589 | ||||||||||
| YoY % growth | 9.7% | 8.8% | 9.4% | 15.9% | 11.0% | 20.5% | 28.6% | 34.2% | ||||||||||||||||||
| QoQ % growth | -0.3% | 5.8% | -0.9% | 10.9% | 3.7% | 12.8% | 3.4% | |||||||||||||||||||
| Stock-based Compensation (SBC) | ||||||||||||||||||||||||||
| SBC included in Gross Profit | $ | 980 | $ | 970 | $ | 984 | $ | 1,008 | $ | 3,942 | $ | 961 | $ | 932 | $ | 995 | ||||||||||
| SBC included in Operating Expenses | 10,670 | 11,860 | 13,677 | 12,799 | 49,006 | 11,563 | 12,767 | 12,716 | ||||||||||||||||||
| Total SBC Expense | $ | 11,650 | $ | 12,830 | $ | 14,661 | $ | 13,807 | $ | 52,948 | $ | 12,524 | $ | 13,699 | $ | 13,711 | ||||||||||
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) | |
| Q4'16 Guidance | |
| GAAP | |
| Net Revenues | $289.2 - $293.9 |
| Gross Margin | 74.7% - 75.1% |
| Operating Expenses | $149.6 - $150.6 |
| Operating Margin | 23.0% - 23.9% |
| Net Income per Diluted Share | $0.64 - $0.67 |
| Business Metrics: | Q4'16 |
| Case Shipments | 182.5K - 184.5K |
| Capital Expenditure | $63M - $68M |
| Depreciation & Amortization | $7.0M - $7.5M |
| Diluted Shares Outstanding | 81.5M* |
| Stock Based Compensation Expense | $14.7M |
| Tax Rate | 22.0% |
| * Excludes any stock repurchases during the quarter | |
Investor Relations Contact Shirley Stacy Align Technology, Inc. (408) 470-1150 sstacy@aligntech.com Press Contact Shannon Mangum Henderson Ethos Communication, Inc. (678) 261-7803 align@ethoscommunication.com
