Itamar Medical Reports First Quarter 2021 Results
Itamar Medical Ltd. (Nasdaq: ITMR) reported a 43% year-over-year revenue increase to $12.0 million for Q1 2021, driven mainly by U.S. WatchPAT™ sales, which rose 38% to $8.4 million. The company gained 725 new WatchPAT ONE customers, averaging 32 per month. However, the gross margin fell to 67% from 76% in Q1 2020, attributed to increased WatchPAT ONE sales and non-recurring expenses of $0.4 million from relocating production. The net loss for the quarter was $5.5 million, compared to $2.0 million in the previous year, with an operating loss of $5.3 million.
- First quarter revenues rose 43% year-over-year to $12.0 million, with U.S. WatchPAT revenues up 38%.
- Total WatchPAT revenues increased 33% to $10.9 million.
- 725 new WatchPAT ONE customers gained since April 1, 2020, averaging 32 per month.
- Strengthened balance sheet, with cash and equivalents of $78.9 million.
- Operating loss increased to $5.3 million from $2.0 million year-over-year.
- Net loss of $5.5 million compared to $2.0 million in the same quarter in 2020.
- Gross margin decreased to 67% from 76% year-over-year.
– First Quarter 2021 Revenues Increase
– U.S. WatchPAT™ Revenues Increase
– Company to Host Conference Call Today at 8:00 am ET, 3:00 pm IT –
CAESAREA, Israel, May 19, 2021 (GLOBE NEWSWIRE) -- Itamar Medical Ltd. (Nasdaq and TASE: ITMR), a leading medical device and digital health company focused on the integration of sleep apnea management into the cardiac patient care pathway, today reported unaudited financial results for the first quarter of 2021.
“We were pleased to see the momentum from the second half of 2020 continue into new year, enabling us to achieve record first quarter revenue. Our U.S. core sleep business was once again the primary growth driver as home-based care continued to drive adoption and our Cardiology tests reached all-time high,” said Gilad Glick, President and Chief Executive Officer. “Overall, demand for WatchPAT is increasing worldwide, reflecting positive reception to our paradigm-shifting technology. Even as COVID restrictions began lifting, providing an opportunity for PSG testing in sleep centers to return, our sales remained strong.”
“Itamar has a number of exciting catalysts ahead and importantly, we have a significantly strengthened balance sheet in place to deliver on these initiatives. Our team remains focused on driving global market share, advancing our product portfolio, and pursuing additional in-organic growth opportunities,” concluded Glick.
First Quarter 2021 Highlights and Recent Achievements
- Total revenues were
$12.0 million , an increase of43% year-over-year.
- U.S. WatchPAT revenues were
$8.4 million , an increase of38% year-over-year.
- Gained a total of 725 WatchPAT ONE customers since April 1, 2020, after continuing to onboard approximately 32 new WatchPAT ONE customers per month on average throughout the first quarter.
- Non-IFRS gross margin was
72% , compared to71% in the fourth quarter of 2020 and77% in the first quarter of 2020. (See “Use of Non-IFRS Measures” below).
- IFRS operating expenses include
$1.1 million relating to non-recurring share-based payments resulting from the extended exercise period of vested service options from five to ten years.
- Announced the expected launch of three additions to the Company’s WatchPAT product line at the upcoming SLEEP 2021 meeting.
First Quarter 2021 Financial Results
Revenues increased
WatchPAT revenues increased
U.S. WatchPAT revenues increased
Gross profit increased to
Operating loss was
| - | ||
| - | Selling and marketing expenses increased | |
| - | Research and development expenses increased | |
| - | General and administrative expenses increased | |
Non-IFRS operating loss (see “Reconciliation of IFRS to Non-IFRS Financial Measures” below) for the first quarter of 2021 was
Net loss for the first quarter of 2021 was
Non-IFRS net loss (see “Reconciliation of IFRS to Non-IFRS Financial Measures” below) for the first quarter of 2021 was
Loss per ADS (basic and diluted) for the first quarter of 2021 was
As of March 31, 2021, the Company had cash, cash equivalents and short-term bank deposits of
Guidance
Full year 2021 revenue is still expected to be in the range of
Lease Agreement - Caesarea Headquarters
The Company entered into a new lease agreement, replacing the current agreement, for the lease of approximately 12,500 square feet of office space, as of January 1, 2022, for the Company’s headquarters, research, development and sales offices, in the Northern Caesarea Business Park, Caesarea, Israel.
Conference Call and Webcast Information
The Company will host a conference call today at 8:00 a.m. Eastern Time, 3:00 p.m. Israel Time to review financial results and provide a corporate update.
To listen live via webcast, please visit https://www.itamar-medical.com/, or by clicking here.
To participate via phone, please use the dial in information:
U.S. toll-free: 833-519-1272
International: 914-800-3844
Israel toll-free: 1-809-315-362
Conference ID: 9398218
Please log in approximately 10 minutes prior to the scheduled start time. An archived webcast also will be provided in the Events and Presentations section of the Company’s website.
Use of Non-IFRS Measures
In addition to disclosing financial results prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standard Board (IASB), this press release contains Non-IFRS financial measures for operating loss and net loss, which are adjusted from results based on IFRS to exclude: (i) share-based payments; (ii) depreciation and amortization of property and equipment and intangible assets; (iii) change in provision for doubtful and bad debt; and (iv) non-recurring expenses related to relocating production facilities to a new location. Management believes that the Non-IFRS financial measures provided in this press release are useful to investors’ understanding and assessment of the Company’s performance. Management uses both IFRS and Non-IFRS measures when operating and evaluating the Company’s business internally and therefore decided to make these Non-IFRS adjustments available to investors. The presentation of this Non-IFRS financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. For further details, see a reconciliation of operating loss and net loss on an IFRS basis to a Non-IFRS basis that is provided in the table that accompanies this press release.
About Itamar Medical Ltd.
Itamar Medical is a medical technology company focused on the development and commercialization of non-invasive medical devices and solutions to aid in the diagnosis of respiratory sleep disorders. Itamar Medical commercializes a digital healthcare platform to facilitate the continuum of care for effective sleep apnea management with a focus on the core sleep, cardiology and direct to consumer markets. Itamar Medical offers a Total Sleep Solution to help physicians provide comprehensive sleep apnea management in a variety of clinical environments to optimize patient care and reduce healthcare system costs. The Company’s key product, WatchPAT, is commercially available within major markets including the U.S., Japan and Europe. Itamar Medical is a public company traded on the Nasdaq and on the Tel Aviv Stock Exchanges, and is based in Caesarea, Israel with U.S. headquarters based in Atlanta, GA. For additional information visit www.itamar-medical.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Statements preceded by, followed by, or that otherwise include the words “believes”, “expects”, “anticipates”, “intends”, “estimates”, “plans”, and similar expressions or future or conditional verbs such as “will”, “should”, “would”, “may” and “could” are generally forward-looking in nature and not historical facts. For example, when we discuss the 2021 revenue guidance range, we are using forward-looking statements. Because such statements deal with future events, they are subject to various risks, uncertainties and assumptions, including events and circumstances out of Itamar Medical’s control and actual results, expressed or implied by such forward-looking statements, could differ materially from Itamar Medical’s current expectations. Factors that could cause or contribute to such differences include, but are not limited to, risks, uncertainties and assumptions discussed from time to time by Itamar Medical in reports filed with, or furnished to, the U.S. Securities and Exchange Commission (SEC) and the Israel Securities Authority (ISA), including the Company’s Annual Report on Form 20-F to be filed with the SEC, which is on file with the SEC (accessible at www.sec.gov) and the ISA. Except as otherwise required by law, Itamar Medical undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Itamar Medical Investor Relations Contact (U.S.)
Leigh Salvo
Gilmartin Group
Phone: +1-415-937-5412
investors@itamar-medical.com
* The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release.
ITAMAR MEDICAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
| March 31, 2021 | December 31, 2020 | |||||||
| U.S. dollars in thousands | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 51,869 | $ | 9,670 | ||||
| Short-term bank deposits | 27,000 | 30,000 | ||||||
| Trade receivables | 8,269 | 8,354 | ||||||
| Other receivables | 2,693 | 2,251 | ||||||
| Inventories | 7,146 | 7,164 | ||||||
| Total current assets | 96,977 | 57,439 | ||||||
| Non-current assets | ||||||||
| Long-term restricted deposits and prepaid expenses | 563 | 547 | ||||||
| Long-term trade receivables | 278 | 412 | ||||||
| Property and equipment | 3,245 | 2,904 | ||||||
| Intangible assets | 3,206 | 1,037 | ||||||
| Right-of-use assets | 1,554 | 1,801 | ||||||
| Total non-current assets | 8,846 | 6,701 | ||||||
| Total assets | $ | 105,823 | $ | 64,140 | ||||
| Liabilities | ||||||||
| Current liabilities | ||||||||
| Short-term bank loan | $ | 5,000 | $ | 5,000 | ||||
| Current maturities of long-term loan | 135 | 135 | ||||||
| Current maturities of lease liabilities | 665 | 700 | ||||||
| Trade payables | 4,499 | 4,418 | ||||||
| Other payables | 4,266 | 5,973 | ||||||
| Accrued expenses | 1,726 | 1,091 | ||||||
| Provisions | 333 | 321 | ||||||
| Short-term employee benefits | 613 | 354 | ||||||
| Total current liabilities | 17,237 | 17,992 | ||||||
| Non-current liabilities | ||||||||
| Long-term loan | 117 | 154 | ||||||
| Long-term lease liabilities | 1,106 | 1,380 | ||||||
| Recognized liability for defined benefit plan, net | 261 | 271 | ||||||
| Other long-term liabilities | 1,271 | 1,271 | ||||||
| Total non-current liabilities | 2,755 | 3,076 | ||||||
| Total liabilities | 19,992 | 21,068 | ||||||
| Equity | ||||||||
| Ordinary share capital | 1,340 | 1,140 | ||||||
| Additional paid-in capital | 207,469 | 161,006 | ||||||
| Accumulated deficit | (122,978 | ) | (119,074 | ) | ||||
| Total equity | 85,831 | 43,072 | ||||||
| Total liabilities and equity | $ | 105,823 | $ | 64,140 | ||||
ITAMAR MEDICAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| U.S. dollars in thousands (except per share and ADS data) | ||||||||
| Revenues | $ | 11,977 | $ | 8,378 | ||||
| Cost of revenues | 3,968 | 2,050 | ||||||
| Gross profit | 8,009 | 6,328 | ||||||
| Operating expenses: | ||||||||
| Selling and marketing | 7,325 | 5,263 | ||||||
| Research and development | 2,889 | 1,302 | ||||||
| General and administrative | 3,091 | 1,720 | ||||||
| Total operating expenses | 13,305 | 8,285 | ||||||
| Operating loss | (5,296 | ) | (1,957 | ) | ||||
| Financial income (expenses): | ||||||||
| Financial income | 146 | 235 | ||||||
| Financial expenses | (327 | ) | (234 | ) | ||||
| Financial income (expenses), net | (181 | ) | 1 | |||||
| Loss before taxes on income | (5,477 | ) | (1,956 | ) | ||||
| Taxes on income | (46 | ) | (42 | ) | ||||
| Net loss | $ | (5,523 | ) | $ | (1,998 | ) | ||
| Loss per share – basic and diluted (in U.S. dollars) | $ | (0.01 | ) | $ | (0.01 | ) | ||
| Weighted average number of shares used in computation of loss per shares – basic and diluted (in thousands) | 463,250 | 389,927 | ||||||
| Loss per ADS – basic and diluted (in U.S. dollars) | $ | (0.36 | ) | $ | (0.15 | ) | ||
| Weighted average number of ADSs used in computation of loss per ADS – basic and diluted (in thousands) | 15,442 | 12,998 | ||||||
ITAMAR MEDICAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| U.S. dollars in thousands | ||||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (5,523 | ) | $ | (1,998 | ) | ||
| Adjustments for: | ||||||||
| Depreciation and amortization | 758 | 410 | ||||||
| Share-based payment | 1,620 | 362 | ||||||
| Change in provision for doubtful and bad debt | (3 | ) | 32 | |||||
| Net financial cost (income) | 167 | (97 | ) | |||||
| Decrease in trade receivables | 222 | 1,184 | ||||||
| Decrease (increase) in other receivables | (469 | ) | 228 | |||||
| Increase in inventories | (133 | ) | (761 | ) | ||||
| Increase in trade payables | 95 | 429 | ||||||
| Decrease in other payables | (1,718 | ) | (1,292 | ) | ||||
| Increase in provisions | 12 | 51 | ||||||
| Increase in employee benefits | 249 | 79 | ||||||
| Income tax expenses | 46 | 42 | ||||||
| Taxes paid during the period | (16 | ) | (1 | ) | ||||
| Interest paid during the period | (159 | ) | (147 | ) | ||||
| Interest received during the period | 54 | 73 | ||||||
| Net cash used in operating activities | (4,798 | ) | (1,406 | ) | ||||
| Cash flows from investing activities | ||||||||
| Redemption of short-term bank deposits | 3,000 | - | ||||||
| Purchase of property and equipment, intangible assets, and capitalization of development expenditure | (2,274 | ) | (231 | ) | ||||
| Net cash provided by (used in) investing activities | 726 | (231 | ) | |||||
| Cash flows from financing activities | ||||||||
| Proceeds from issuance of shares, net of share issuance costs | 46,660 | 37,061 | ||||||
| Repayment of principal of lease liabilities | (248 | ) | (225 | ) | ||||
| Repayment of long-term loan | (33 | ) | - | |||||
| Issuance of shares due to the exercise of stock options | 4 | - | ||||||
| Net cash provided by financing activities | 46,383 | 36,836 | ||||||
| Increase in cash and cash equivalents | 42,311 | 35,199 | ||||||
| Cash and cash equivalents at beginning of period | 9,670 | 15,115 | ||||||
| Effect of exchange rate fluctuations on balances of cash and cash equivalents | (112 | ) | 128 | |||||
| Cash and cash equivalent balance at end of period | $ | 51,869 | $ | 50,442 | ||||
| Non-cash investing activity – acquisition of intangible assets | $ | 600 | $ | - | ||||
| Non-cash financing activity – share issuance costs | $ | - | $ | 511 | ||||
ITAMAR MEDICAL LTD.
RECONCILIATIONS OF IFRS TO NON-IFRS FINANCIAL MEASURES
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| U.S. dollars in thousands (except per ADS data) | ||||||||
| IFRS operating loss | $ | (5,296 | ) | $ | (1,957 | ) | ||
| IFRS net loss | $ | (5,523 | ) | $ | (1,998 | ) | ||
| Cost of revenues: | ||||||||
| Share-based payment | 43 | 2 | ||||||
| Depreciation and amortization of property and equipment and intangible assets | 165 | 102 | ||||||
| Non-recurring expenses related to relocating the Company’s production facilities to a new location | 376 | - | ||||||
| 584 | 104 | |||||||
| Operating expenses: | ||||||||
| Selling and marketing: | ||||||||
| Share-based payment | 643 | 119 | ||||||
| Depreciation and amortization of property and equipment and intangible assets | 34 | 31 | ||||||
| 677 | 150 | |||||||
| Research and development: | ||||||||
| Share-based payment | 327 | 71 | ||||||
| Depreciation and amortization of property and equipment and intangible assets | 294 | 19 | ||||||
| 621 | 90 | |||||||
| General and administrative: | ||||||||
| Share-based payment | 607 | 164 | ||||||
| Depreciation and amortization of property and equipment and intangible assets | 23 | 16 | ||||||
| Change in provision for doubtful and bad debt | (3 | ) | 32 | |||||
| 627 | 212 | |||||||
| Financial income (expenses), net: | ||||||||
| Share-based payment | - | 6 | ||||||
| - | 6 | |||||||
| Non-IFRS operating loss | $ | (2,787 | ) | $ | (1,401 | ) | ||
| Non-IFRS net loss | $ | (3,014 | ) | $ | (1,436 | ) | ||
| IFRS loss per ADS – basic and diluted (in U.S. dollars) | $ | (0.36 | ) | $ | (0.15 | ) | ||
| Non-IFRS loss per ADS – basic and diluted (in U.S. dollars) | $ | (0.20 | ) | $ | (0.11 | ) | ||
FAQ
What were Itamar Medical's Q1 2021 revenues?
How much did U.S. WatchPAT revenues grow in Q1 2021?
What is the net loss reported by Itamar Medical for Q1 2021?
What is the operating loss for Itamar Medical in Q1 2021?
What is the forecasted revenue range for full year 2021?
