Glaukos Corporation Announces First Quarter 2022 Financial Results
Glaukos Corporation (NYSE: GKOS) reported Q1 2022 financial results, with net sales of $67.7 million, slightly down from $68.0 million in Q1 2021. Glaucoma sales accounted for $51.5 million, while Corneal Health contributed $16.1 million. The gross margin was approximately 75%, and operating expenses increased to $40.8 million. The company reported a net income of $5.4 million ($0.11 per diluted share), compared to a net loss of $16.5 million in the same period last year. Glaukos updated its 2022 net sales guidance to $270 million - $275 million.
- Net sales increased guidance for 2022 to $270 million - $275 million.
- Reported net income of $5.4 million, a significant improvement from a net loss of $16.5 million in Q1 2021.
- Operating income rose to $9.8 million, a recovery from an operating loss of $11.8 million in Q1 2021.
- Successfully settled patent litigation with Ivantis, Inc., receiving $30 million.
- Net sales decreased slightly from $68 million in Q1 2021 to $67.7 million in Q1 2022.
- Gross margin fell from approximately 76% in Q1 2021 to 75% in Q1 2022.
- Operating expenses increased 5% to $40.8 million, impacting profitability.
-
Net sales of
in Q1 2022.$67.7 million -
Glaucoma net sales of
and$51.5 million Corneal Health net sales of in Q1 2022.$16.1 million -
Gross margin of approximately
75% and non-GAAP gross margin of approximately83% in Q1 2022. -
Operating expenses of
and non-GAAP operating expenses of$40.8 million in Q1 2022.$69.8 million -
Updated 2022 net sales guidance of
to$270 million , compared to$275 million to$265 million previously.$275 million
“I’m pleased with our first quarter performance and execution of our strategies despite a challenging global environment,” said
First Quarter 2022 Financial Results
Net sales in the first quarter of 2022 were
Gross margin for the first quarter of 2022 was approximately
Selling, general and administrative (SG&A) expenses for the first quarter of 2022 increased
Research and development (R&D) expenses for the first quarter of 2022 increased
During the first quarter of 2022, the company received a
Income from operations in the first quarter of 2022 was
Net income in the first quarter of 2022 was
The company ended the first quarter of 2022 with approximately
2022 Revenue Guidance
The company expects 2022 net sales to be in the range of
Webcast & Conference Call
The company will host a conference call and simultaneous webcast today at
Quarterly Summary Document
The company has posted a document on its Investor Relations website under the “Financials & Filings – Quarterly Results” section titled “Quarterly Summary.” This Quarterly Summary document is designed to provide the investment community with a summarized and easily accessible reference document that details the key facts associated with the quarter, the state of the company’s business objectives and strategies and any forward statements or guidance the company may make. Going forward, this document will be provided alongside the company’s earnings press release and is designed to be read by investors before the regularly scheduled quarterly conference call. As such, beginning with the first quarter of 2022, the conference call will be in a format primarily consisting of a questions and answers session, during which
About
Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of federal securities laws. All statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. These statements are based on management’s current expectations, assumptions, estimates and beliefs. Although we believe that we have a reasonable basis for forward-looking statements contained herein, we caution you that they are based on current expectations about future events affecting us and are subject to risks, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that may cause our actual results to differ materially from those expressed or implied by forward-looking statements in this press release. These potential risks and uncertainties that could cause actual results to differ materially from those described in forward-looking statements include, without limitation, uncertainties regarding the duration and severity of the COVID-19 pandemic and its impact on our business or the economy generally; the reduced physician fee and ASC facility fee reimbursement rate finalized by CMS for 2022 for procedures utilizing the Company’s iStent family of products and its impact on our
Statement Regarding Use of Non-GAAP Financial Measures
To supplement the consolidated financial results prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), the Company uses certain non-GAAP historical financial measures. Management makes adjustments to the GAAP measures for items (both charges and gains) that (a) do not reflect the core operational activities of the
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(unaudited) | ||||||||
(in thousands, except per share amounts) | ||||||||
Three Months Ended | ||||||||
2022 |
2021 |
|||||||
Net sales | $ |
67,681 |
|
$ |
67,968 |
|
||
Cost of sales |
|
17,063 |
|
|
16,633 |
|
||
Gross profit |
|
50,618 |
|
|
51,335 |
|
||
Operating expenses: | ||||||||
Selling, general and administrative |
|
43,949 |
|
|
41,921 |
|
||
Research and development |
|
26,877 |
|
|
21,219 |
|
||
Litigation-related settlement |
|
(30,000 |
) |
|
- |
|
||
Total operating expenses |
|
40,826 |
|
|
63,140 |
|
||
Income (loss) from operations |
|
9,792 |
|
|
(11,805 |
) |
||
Non-operating expense: | ||||||||
Interest income |
|
287 |
|
|
383 |
|
||
Interest expense |
|
(3,416 |
) |
|
(3,229 |
) |
||
Other expense, net |
|
(960 |
) |
|
(1,539 |
) |
||
Total non-operating expense |
|
(4,089 |
) |
|
(4,385 |
) |
||
Income (loss) before taxes |
|
5,703 |
|
|
(16,190 |
) |
||
Income tax provision |
|
326 |
|
|
279 |
|
||
Net income (loss) | $ |
5,377 |
|
$ |
(16,469 |
) |
||
Basic net income (loss) per share | $ |
0.11 |
|
$ |
(0.36 |
) |
||
Diluted net income (loss) per share | $ |
0.11 |
|
$ |
(0.36 |
) |
||
Weighted average shares used to compute | ||||||||
basic net income (loss) per share |
|
47,050 |
|
|
45,709 |
|
||
Weighted average shares used to compute | ||||||||
diluted net income (loss) per share |
|
49,506 |
|
|
45,709 |
|
||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except par values) | ||||||||
2022 |
2021 |
|||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ |
106,202 |
|
$ |
100,708 |
|
||
Short-term investments |
|
309,211 |
|
|
313,343 |
|
||
Accounts receivable, net |
|
34,804 |
|
|
33,438 |
|
||
Inventory |
|
24,708 |
|
|
23,011 |
|
||
Prepaid expenses and other current assets |
|
16,278 |
|
|
15,626 |
|
||
Total current assets |
|
491,203 |
|
|
486,126 |
|
||
Restricted cash |
|
9,416 |
|
|
9,416 |
|
||
Property and equipment, net |
|
74,708 |
|
|
68,969 |
|
||
Operating lease right-of-use asset |
|
26,539 |
|
|
28,142 |
|
||
Finance lease right-of-use asset |
|
48,417 |
|
|
49,022 |
|
||
Intangible assets, net |
|
326,553 |
|
|
332,781 |
|
||
|
66,134 |
|
|
66,134 |
|
|||
Deposits and other assets |
|
9,100 |
|
|
9,108 |
|
||
Total assets | $ |
1,052,070 |
|
$ |
1,049,698 |
|
||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ |
7,998 |
|
$ |
7,333 |
|
||
Accrued liabilities |
|
47,598 |
|
|
56,027 |
|
||
Total current liabilities |
|
55,596 |
|
|
63,360 |
|
||
Convertible senior notes |
|
280,370 |
|
|
280,026 |
|
||
Operating lease liability |
|
29,304 |
|
|
29,650 |
|
||
Finance lease liability |
|
72,594 |
|
|
72,699 |
|
||
Deferred tax liability, net |
|
7,312 |
|
|
7,318 |
|
||
Other liabilities |
|
9,330 |
|
|
9,494 |
|
||
Total liabilities |
|
454,506 |
|
|
462,547 |
|
||
Stockholders' equity: | ||||||||
Preferred stock, |
||||||||
issued and outstanding |
|
- |
|
|
- |
|
||
Common stock, |
||||||||
and 46,993 shares issued and 47,089 and 46,965 shares outstanding | ||||||||
at |
|
47 |
|
|
47 |
|
||
Additional paid-in capital |
|
960,870 |
|
|
952,432 |
|
||
Accumulated other comprehensive (loss) income |
|
(3,387 |
) |
|
15 |
|
||
Accumulated deficit |
|
(359,834 |
) |
|
(365,211 |
) |
||
Less treasury stock (28 shares as of |
||||||||
|
(132 |
) |
|
(132 |
) |
|||
Total stockholders' equity |
|
597,564 |
|
|
587,151 |
|
||
Total liabilities and stockholders' equity | $ |
1,052,070 |
|
$ |
1,049,698 |
|
||
GAAP to Non-GAAP Reconciliations | ||||||||||||||||||||||||||||
(in thousands, except per share amounts and percentage data) | ||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||
Q1 2022 | Q1 2021 | |||||||||||||||||||||||||||
GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||||||
Cost of sales | $ |
17,063 |
|
$ |
(5,551 |
) |
(a) | $ |
11,512 |
|
$ |
16,633 |
|
$ |
(5,600 |
) |
(a) | $ |
11,033 |
|
||||||||
Gross Margin |
|
74.8 |
% |
|
8.2 |
% |
|
83.0 |
% |
|
75.5 |
% |
|
8.3 |
% |
|
83.8 |
% |
||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Selling, general and administrative | $ |
43,949 |
|
$ |
(892 |
) |
(b) | $ |
43,057 |
|
$ |
41,921 |
|
$ |
(1,220 |
) |
(b)(e) | $ |
40,701 |
|
||||||||
Research and development | $ |
26,877 |
|
$ |
(127 |
) |
(c) | $ |
26,750 |
|
$ |
21,219 |
|
$ |
(150 |
) |
(c) | $ |
21,069 |
|
||||||||
Litigation-related settlement | $ |
(30,000 |
) |
$ |
30,000 |
|
(d) | $ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|||||||||
Income (loss) from operations | $ |
9,792 |
|
$ |
(23,430 |
) |
$ |
(13,638 |
) |
$ |
(11,805 |
) |
$ |
6,970 |
|
$ |
(4,835 |
) |
||||||||||
Net income (loss) | $ |
5,377 |
|
$ |
(23,430 |
) |
(f) | $ |
(18,053 |
) |
$ |
(16,469 |
) |
$ |
6,970 |
|
(f) | $ |
(9,499 |
) |
||||||||
Basic net income (loss) per share | $ |
0.11 |
|
$ |
(0.49 |
) |
$ |
(0.38 |
) |
$ |
(0.36 |
) |
$ |
0.15 |
|
$ |
(0.21 |
) |
||||||||||
Diluted net income (loss) per share | $ |
0.11 |
|
$ |
(0.49 |
) |
$ |
(0.38 |
) |
$ |
(0.36 |
) |
$ |
0.15 |
|
$ |
(0.21 |
) |
(a) | Cost of sales adjustments related to the acquisition of |
|
(b) | ||
(c) | Stock-based compensation expense related to replacement awards from the acquisition of |
|
(d) | Settlement proceeds received related to the Company's patent infringement litigation. | |
(e) | Expenses related to the Company's patent infringement litigation and related matters of |
|
(f) | Includes total tax effect for non-GAAP pre-tax adjustments. For non-GAAP adjustments associated with the |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220504005480/en/
Vice President, Investor Relations & Corporate Affairs
(949) 481-0510
clewis@glaukos.com
Source:
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