BIOLASE REPORTS CONTINUED GROWTH FOR FOURTH QUARTER AND FULL YEAR 2021
BIOLASE, Inc. (NASDAQ: BIOL) reported strong financial results for 2021, with total revenue reaching $39.2 million, a 72% increase year-over-year. The fourth quarter alone saw revenue of $12.4 million, an increase of 46% from the previous year. U.S. laser sales increased 39%, while international laser sales surged 87%. Despite a net loss of $16.7 million for the year, BIOLASE maintains a robust balance sheet, ending 2021 with $30 million in cash. Looking ahead, the company anticipates a 10% revenue growth in 2022.
- Total revenue for 2021 was $39.2 million, a 72% increase YoY.
- Fourth quarter revenue increased 46% YoY to $12.4 million.
- U.S. laser sales rose 39% YoY.
- International laser sales surged 87% YoY.
- Gross margin improved to 42%, compared to 27% in 2020.
- Cash and cash equivalents were $30 million as of December 31, 2021.
- Guidance for 2022 indicates anticipated revenue growth of at least 10%.
- Net loss of $16.7 million for 2021, although improved from $34.2 million in 2020.
- Operating expenses increased by 33% to $33 million in 2021.
- Robust Balance Sheet to Execute Growth Strategies in 2022
- Full Year 2022 Revenue Growth Outlook +
10%
LAKE FOREST, Calif., March 17, 2022 /PRNewswire/ -- BIOLASE, Inc. (NASDAQ: BIOL), the global leader in dental lasers, today announced its financial results for the fourth quarter and full year ended December 31, 2021.
2021 Fourth Quarter and Recent Highlights
- Total revenue was 12.4 million, up
46% year over year - Total revenue also increased
22% over fourth quarter 2019 pre-COVID results - U.S. laser sales increased
39% year over year and U.S. consumable sales increased40% year over year, driven by significantly increased procedures using BIOLASE lasers - International laser sales increased
87% year over year and international consumable sales increased29% year over year, driven by significantly increased procedures using BIOLASE lasers - Higher average selling price and sales volumes resulted in
40% gross margin for the quarter, a significant improvement from a year ago - Continued momentum with new customers and dental specialists
- FDA clearance received for the new EdgePRO laser, which was co-developed with EdgeEndo, a global leader in commercializing products for the endodontics market
- Maintained robust balance sheet with cash and cash equivalents of
$30.0 million on December 31, 2021
"Our strong fourth quarter and full year performance reflects the rising demand for our industry-leading dental lasers," commented John Beaver, President and Chief Executive Officer. "Furthermore, our robust balance sheet and continued business momentum allowed us to enter 2022 in a favorable position to achieve our operating objectives for the year.
"With only about
2021 Fourth Quarter Financial Results
Net revenue for the fourth quarter of 2021 was
Gross margin for the fourth quarter of 2021 was
Full Year 2021 Financial Results
Net revenue for the year ended December 31, 2021 was
Gross margin for the year ended December 31, 2021 was
The Company maintained a robust balance sheet and had cash and cash equivalents of approximately
Net Loss and Adjusted EBITDA
The reconciliation of GAAP Net Loss to Adjusted EBITDA at the end of this news release provides the details of the Company's non-GAAP disclosures and the reconciliation of GAAP net loss and net loss per share to the Company's Adjusted EBITDA and Adjusted EBITDA per share.
Net loss for the fourth quarter of 2021 was
Net loss attributable to common stockholders for the year ended December 31, 2021 was
2022 First Quarter and Full Year Revenue Guidance
Based on currently available information and the continued operating momentum the Company has experienced so far this year, BIOLASE is anticipating first quarter net revenue to exceed
Conference Call Information
BIOLASE, Inc. will host a conference call today at 4:30 p.m. Eastern Time to discuss its operating results for the fourth quarter and full year ended December 31, 2021 and to answer questions. For both "listen-only" participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the U.S. and Canada is (888) 254-3590. For participants outside the U.S. and Canada, the dial-in number is +1 (323) 794-2551. For all callers, refer to the Conference ID 9127979. To access the live webcast, visit the Investor Relations section of the BIOLASE website at www.biolase.com and see "Investor Events".
An audio archive of the webcast will be available for 30 days on the Investor Relations section of the BIOLASE website.
About BIOLASE
BIOLASE is a medical device company that develops, manufactures, markets, and sells laser systems in dentistry and medicine. BIOLASE's products advance the practice of dentistry and medicine for patients and healthcare professionals. BIOLASE's proprietary laser products incorporate approximately 301 patented and 38 patent-pending technologies designed to provide biologically and clinically superior performance with less pain and faster recovery times. BIOLASE's innovative products provide cutting-edge technology at competitive prices to deliver superior results for dentists and patients. BIOLASE's principal products are dental laser systems that perform a broad range of dental procedures, including cosmetic and complex surgical applications. BIOLASE has sold over 43,300 laser systems to date in over 80 countries around the world. Laser products under development address BIOLASE's core dental market and other adjacent medical and consumer applications.
For updates and information on Waterlase iPlus®, Waterlase Express™, and laser dentistry, find BIOLASE online at www.biolase.com, Facebook at www.facebook.com/biolase, Twitter at www.twitter.com/biolaseinc, Instagram at www.instagram.com/waterlase_laserdentistry, and LinkedIn at www.linkedin.com/company/biolase.
BIOLASE®, Waterlase® and Waterlase iPlus® are registered trademarks of BIOLASE, Inc.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties, including statements, regarding BIOLASE's expected revenue and revenue growth during the first quarter of 2022, expected revenue growth during 2022 and beliefs regarding its financial resources. Forward-looking statements can be identified through the use of words such as may," "might," "will," "intend," "should," "could," "can," "would," "continue," "expect," "believe," "anticipate," "estimate," "predict," "outlook," "potential," "plan," "seek," and similar expressions and variations or the negatives of these terms or other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect BIOLASE's current expectations and speak only as of the date of this release. Actual results may differ materially from BIOLASE's current expectations depending upon a number of factors. These factors include, among others, the coronavirus (COVID-19) and the effects of the outbreak and actions taken in connection therewith, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business, and those other risks and uncertainties that are described in the "Risk Factors" section of BIOLASE's most recent annual report filed on Form 10-K and quarterly report filed on Form 10-Q filed with the Securities and Exchange Commission. Except as required by law, BIOLASE does not undertake any responsibility to revise or update any forward-looking statements.
BIOLASE, INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||||||
(Unaudited, in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net revenue | $ | 12,407 | $ | 8,520 | $ | 39,188 | $ | 22,780 | ||||||||
Cost of revenue | 7,501 | 6,915 | 22,659 | 16,607 | ||||||||||||
Gross profit | 4,906 | 1,605 | 16,529 | 6,173 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 5,024 | 3,767 | 15,339 | 11,242 | ||||||||||||
General and administrative | 2,644 | 2,326 | 11,258 | 9,772 | ||||||||||||
Engineering and development | 1,542 | 1,051 | 6,048 | 3,695 | ||||||||||||
Loss on patent litigation settlement | 125 | — | 315 | — | ||||||||||||
Total operating expenses | 9,335 | 7,144 | 32,960 | 24,709 | ||||||||||||
Loss from operations | (4,429) | (5,539) | (16,431) | (18,536) | ||||||||||||
Gain (Loss) on foreign currency transactions | (280) | 47 | (452) | (21) | ||||||||||||
Interest expense, net | (498) | (577) | (2,224) | (2,359) | ||||||||||||
Gain on debt forgiveness | — | — | 3,014 | — | ||||||||||||
Other income, net | — | 6 | — | 4,215 | ||||||||||||
Non-operating gain (loss), net | (778) | (524) | 338 | 1,835 | ||||||||||||
Loss before income tax provision | (5,207) | (6,063) | (16,093) | (16,701) | ||||||||||||
Income tax provision | (72) | (79) | (65) | (128) | ||||||||||||
Net loss | (5,279) | (6,142) | (16,158) | (16,829) | ||||||||||||
Net loss | $ | (5,279) | $ | (6,142) | $ | (16,158) | $ | (16,829) | ||||||||
Deemed dividend on convertible preferred stock | — | — | (546) | (17,378) | ||||||||||||
Net loss attributable to common stockholders | $ | (5,279) | $ | (6,142) | $ | (16,704) | $ | (34,207) | ||||||||
Net loss per share attributable to common stockholders: | ||||||||||||||||
Basic and Diluted | $ | (0.03) | $ | (0.07) | $ | (0.11) | $ | (0.56) | ||||||||
Shares used in the calculation of net loss per share: | ||||||||||||||||
Basic and Diluted | 153,491 | 93,211 | 147,746 | 61,136 | ||||||||||||
BIOLASE, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited, in thousands, except per share data) | ||||||||
December 31, | ||||||||
2021 | 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 29,972 | $ | 17,564 | ||||
Restricted cash | 203 | 312 | ||||||
Accounts receivable, less allowance of | 4,238 | 3,059 | ||||||
Inventory | 12,929 | 11,157 | ||||||
Prepaid expenses and other current assets | 2,012 | 3,018 | ||||||
Total current assets | 49,354 | 35,110 | ||||||
Property, plant, and equipment, net | 1,067 | 782 | ||||||
Goodwill | 2,926 | 2,926 | ||||||
Right of use asset | 1,717 | 1,976 | ||||||
Other assets | 220 | 231 | ||||||
Total assets | $ | 55,284 | $ | 41,025 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,309 | $ | 2,651 | ||||
Accrued liabilities | 8,276 | 6,667 | ||||||
Deferred revenue, current portion | 2,259 | 1,905 | ||||||
Term loan, net of discount | — | — | ||||||
Total current liabilities | 13,844 | 11,223 | ||||||
Deferred revenue | 329 | 374 | ||||||
Warranty accrual | 521 | 384 | ||||||
Non current term loans, net of discount | 13,603 | 16,186 | ||||||
Non current operating lease liability | 1,449 | 1,774 | ||||||
Other liabilities | 330 | 1,056 | ||||||
Total liabilities | 30,076 | 30,997 | ||||||
Stockholders' equity: | ||||||||
Series F Preferred stock, par value | 34 | 118 | ||||||
Common stock, par value | 154 | 98 | ||||||
Additional paid-in capital | 293,177 | 261,573 | ||||||
Accumulated other comprehensive loss | (623) | (385) | ||||||
Accumulated deficit | (267,534) | (251,376) | ||||||
Total stockholders' equity | 25,208 | 10,028 | ||||||
Total liabilities and stockholders' equity | $ | 55,284 | $ | 41,025 | ||||
BIOLASE, INC. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited, in thousands) | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2021 | 2020 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | (16,158) | $ | (16,829) | ||||
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities: | ||||||||
Depreciation and amortization | 400 | 499 | ||||||
Provision for bad debts | (202) | 1,328 | ||||||
Provision for sales returns | — | 87 | ||||||
Provision for inventory excess and obsolescence | (275) | (591) | ||||||
Inventory disposals and recoveries, net | (122) | 1,300 | ||||||
Amortization of discount on lines of credit | 159 | 165 | ||||||
Amortization of debt issuance costs | 356 | 331 | ||||||
Patent litigation mark-to-market | 315 | — | ||||||
Change in fair value of warrants | — | (5,850) | ||||||
Issuance of restricted shares | 164 | — | ||||||
Issuance costs for common stock warrants | — | 1,641 | ||||||
Stock-based compensation | 1,662 | 3,370 | ||||||
Gain on debt forgiveness | (3,014) | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (978) | 4,286 | ||||||
Inventory | (1,375) | (871) | ||||||
Prepaid expenses and other current assets | 285 | 825 | ||||||
Accounts payable and accrued liabilities | 1,765 | (2,107) | ||||||
Deferred revenue | 308 | (379) | ||||||
Net cash and cash equivalents used in operating activities | (16,710) | (12,795) | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchases of property, plant, and equipment | (707) | (96) | ||||||
Net cash and cash equivalents used in investing activities | (707) | (96) | ||||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from the issuance of common stock and June 2020 Warrants, net | 14,420 | 6,912 | ||||||
Proceeds from the issuance of Series F Convertible Preferred Stock | — | 2,700 | ||||||
Proceeds from the issuance of July 2020 Warrants | — | 15,300 | ||||||
Payments of equity offering costs | (1,135) | (1,281) | ||||||
Payment of July 2020 Warrant issuance costs | — | (1,640) | ||||||
Borrowings on other long-term loans | — | 3,140 | ||||||
Principal payment on term loan | — | (700) | ||||||
Borrowings on credit facility | — | 3,000 | ||||||
Payments of credit facility | — | (3,000) | ||||||
Payments of debt issuance costs | (25) | (128) | ||||||
Proceeds from the exercise of common stock warrants | 16,562 | 46 | ||||||
Proceeds from exercise of stock options | 132 | — | ||||||
Net cash and cash equivalents provided by financing activities | 29,954 | 24,349 | ||||||
Effect of exchange rate changes | (238) | 317 | ||||||
Increase in cash and cash equivalents | 12,299 | 11,775 | ||||||
Cash, cash equivalents and restricted cash, beginning of year | 17,876 | 6,101 | ||||||
Cash, cash equivalents and restricted cash, end of year | $ | 30,175 | $ | 17,876 | ||||
Supplemental cash flow disclosure: | ||||||||
Cash paid for interest | $ | 1,771 | $ | 1,881 | ||||
Cash received for interest | $ | 56 | $ | 11 | ||||
Cash paid for income taxes | $ | 171 | $ | 22 | ||||
Cash paid for operating leases | $ | 246 | $ | 489 | ||||
Non-cash settlement of liability | $ | 510 | $ | 151 | ||||
Non-cash right-of-use assets obtained in exchange for lease obligations | $ | 48 | $ | 2,037 | ||||
Equity financing costs in accounts payable | $ | — | $ | 74 | ||||
Deemed dividend on preferred stock | $ | 546 | $ | 17,378 | ||||
Forgiveness of debt | $ | — | $ | 10 | ||||
Receivable from warrants exercised and included in prepaid and other current assets | $ | (1,498) | $ | 1,498 | ||||
Warrants issued in connection with debt instruments | $ | — | $ | 67 | ||||
Non-GAAP Financial Measures
In addition to the financial information prepared in conformity with generally accepted accounting principles in the U.S. ("GAAP"), this press release includes certain historical non-GAAP financial information. Management believes that these non-GAAP financial measures assist investors in making comparisons of period-to-period operating results and that, in some respects, these non-GAAP financial measures are more indicative of the Company's ongoing core operating performance than their GAAP equivalents.
Adjusted EBITDA is defined as net loss before interest, taxes, depreciation and amortization, allowance for doubtful accounts, loss on patent litigation settlement, stock-based and other non-cash compensation, debt forgiveness, and other income, net. Management uses Adjusted EBITDA in its evaluation of the Company's core results of operations and trends between fiscal periods and believes that these measures are important components of its internal performance measurement process. Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Further, the non-GAAP financial measures presented by the Company may be different from similarly named non-GAAP financial measures used by other companies.
BIOLASE, INC. | ||||||||||||||||
Reconciliation of GAAP Net Loss to Adjusted EBITDA and | ||||||||||||||||
GAAP Net Loss Per Share to Adjusted EBITDA Per Share | ||||||||||||||||
(Unaudited, in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
GAAP net loss attributable to common stockholders | $ | (5,279) | $ | (6,142) | $ | (16,704) | $ | (34,207) | ||||||||
Deemed dividend on convertible preferred stock | — | — | 546 | 17,378 | ||||||||||||
GAAP net loss | $ | (5,279) | $ | (6,142) | $ | (16,158) | $ | (16,829) | ||||||||
Adjustments: | ||||||||||||||||
Interest expense, net | 498 | 577 | 2,224 | 2,359 | ||||||||||||
Income tax provision | 72 | 79 | 65 | 128 | ||||||||||||
Depreciation and amortization | 116 | (28) | 400 | 499 | ||||||||||||
Change in allowance for doubtful accounts | (44) | 65 | (202) | 1,328 | ||||||||||||
Loss on patent litigation settlement | 125 | — | 315 | — | ||||||||||||
Stock-based and other non-cash compensation | 174 | 1,003 | 1,662 | 3,370 | ||||||||||||
Gain on debt forgiveness | — | — | (3,014) | — | ||||||||||||
Other income, net | — | (6) | — | (4,215) | ||||||||||||
Adjusted EBITDA | $ | (4,338) | $ | (4,452) | $ | (14,708) | $ | (13,360) | ||||||||
GAAP net loss attributable to common stockholders per share, basic and diluted | $ | (0.03) | $ | (0.07) | $ | (0.11) | $ | (0.56) | ||||||||
Deemed dividend on convertible preferred stock | — | — | — | 0.28 | ||||||||||||
GAAP net loss per share, basic and diluted | $ | (0.03) | $ | (0.07) | $ | (0.11) | $ | (0.28) | ||||||||
Adjustments: | ||||||||||||||||
Interest expense, net | — | 0.01 | 0.02 | 0.04 | ||||||||||||
Income tax provision | — | — | — | — | ||||||||||||
Depreciation and amortization | — | — | — | 0.01 | ||||||||||||
Change in allowance for doubtful accounts | — | — | — | 0.02 | ||||||||||||
Loss on patent litigation settlement | — | — | — | — | ||||||||||||
Stock-based and other non-cash compensation | — | 0.01 | 0.01 | 0.06 | ||||||||||||
Gain on debt forgiveness | — | — | (0.02) | — | ||||||||||||
Other income, net | — | — | — | (0.07) | ||||||||||||
Adjusted EBITDA per share, basic and diluted | $ | (0.03) | $ | (0.05) | $ | (0.10) | $ | (0.22) | ||||||||
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SOURCE BIOLASE, Inc.
FAQ
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