LENSAR Reports Second Quarter 2023 Results and Provides Business Update
Increased ALLY® Adaptive Cataract Treatment System installed base to 28 systems with a backlog of 6 additional systems for installation as of June 30, 2023
“The second quarter was a strong quarter for us, which saw a substantive number of ALLY placements that we had been working on coming to fruition, resulting in a steady expansion of the ALLY installed base over the period. We believe the progress we have made, particularly over the last six months, has established a strong foundation for continued, sustainable long-term growth,” said Nick Curtis, President and CEO of LENSAR. “Our second quarter revenue increased nearly
He added, “The favorable utilization trends we observed in Q1 continued in the second quarter, as ALLY users who transitioned from the previous-generation LLS or added an ALLY performed an average of
Second Quarter 2023 Financial Results
Total revenue for the quarter ended June 30, 2023 was
For the quarters ended June 30, 2023 and 2022, approximately
The following table provides information about procedure volume:
|
Procedure Volume by Quarter |
||
|
2023 |
2022 |
|
Q1 |
31,600 |
38,901 |
|
Q2 |
35,349 |
|
33,359 |
Total |
66,949 |
|
72,260 |
Selling, general and administrative expenses for the quarter ended June 30, 2023 were
Research and development expenses were
Net loss for the quarter ended June 30, 2023, was
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) for the quarter ended June 30, 2023 was
As of June 30, 2023, the Company had cash and cash equivalents of
Conference Call:
LENSAR management will host a conference call and live webcast to discuss the second quarter results and provide a business update today, August 9, 2023, at 8:30 a.m. ET.
To participate by telephone, please dial (888) 259 6580 (Domestic) or (416) 764 8624 (International). The conference ID number is 93649834. The live webcast can be accessed under “Events & Presentations” in the Investor Relations section of the company’s website at https://ir.lensar.com. Please log in approximately 5 to 10 minutes prior to the call to register and to download and install any necessary software. The call and webcast replay will be available until August 23, 2023.
(1) Market Scope Q1 and Q2 2023 Cataract Quarterly Update, Market Scope LLC
About LENSAR
LENSAR is a commercial-stage medical device company focused on designing, developing, and marketing advanced systems for the treatment of cataracts and the management of visually significant astigmatism as an integral aspect of the cataract procedure. LENSAR has developed its next-generation ALLY® Adaptive Cataract Treatment System, the first platform to integrate proprietary imaging and software, with an extremely fast dual-pulse femtosecond laser in a compact, highly ergonomic system. ALLY is designed to transform cataract surgery by utilizing LENSAR’s advanced technologies with the ability to perform the entire procedure in an operating room or in-office surgical suite, delivering operational efficiencies and reduced overhead. ALLY includes LENSAR’s proprietary Streamline® software technology, designed to guide surgeons to achieve better outcomes.
Forward-looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the Company’s business strategies, expected growth, commercialization and production of the ALLY® Adaptive Cataract Treatment System, including new ALLY System installations, the ALLY System’s performance and market adoptions and usage, and the Company’s liquidity and ability to fund operational initiatives. In some cases, you can identify forward-looking statements by terms such as “aim,” “anticipate,” “approach,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “goal,” “intend,” “look,” “may,” “mission,” “plan,” “possible,” “potential,” “predict,” “project,” “pursue,” “should,” “target,” “will,” “would,” or the negative thereof and similar words and expressions.
Forward-looking statements are based on management’s current expectations, beliefs and assumptions and on information currently available to us. Such statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various important factors, including, but not limited to: our history of operating losses and ability to achieve or sustain profitability; our ability to develop, receive and maintain regulatory clearance or certification of and successfully commercialize the ALLY System and to maintain our LENSAR Laser System; the impact to our business, financial condition, results of operations and our suppliers and distributors as a result of the COVID-19 pandemic and global macroeconomic conditions; the willingness of patients to pay the price difference for our products compared to a standard cataract procedure covered by Medicare or other insurance; our ability to grow our
All forward-looking statements are expressly qualified in their entirety by such factors. Except as required by law, the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. These forward-looking statements should not be relied upon as representing LENSAR’s views as of any date subsequent to the date of this press release.
Non-GAAP Financial Measures
The Company prepares and analyzes operating and financial data and non-GAAP measures to assess the performance of its business, make strategic and offering decisions and build its financial projections. The key non-GAAP measures it uses are EBITDA and Adjusted EBITDA.
EBITDA is defined as net loss before interest expense, interest income, income tax expense, depreciation and amortization expenses. EBITDA is a non-GAAP financial measure. We believe that EBITDA provides meaningful supplemental information for investors regarding the performance of our business and facilitates a meaningful evaluation of actual results on a comparable basis with historical results. Adjusted EBITDA is also a non-GAAP financial measure. We believe Adjusted EBITDA, which excludes stock-based compensation expense and change in fair value of warrant liabilities, provides meaningful supplemental information for investors when evaluating our results and comparing us to peer companies as stock-based compensation expense and change in fair value of warrant liabilities are significant non-cash charges. We use these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance and, therefore, any non-GAAP measures we use may not be directly comparable to similarly titled measures of other companies. Investors should not consider our non-GAAP financial measures in isolation or as a substitute for an analysis of our results as reported under GAAP.
A reconciliation of EBITDA and Adjusted EBITDA to their most comparable GAAP financial measure are set forth below.
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
(Dollars in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net loss |
$ |
(8,753 |
) |
$ |
(6,759 |
) |
$ |
(13,025 |
) |
$ |
(13,433 |
) |
||||
Less: Interest income |
|
(111 |
) |
|
(39 |
) |
|
(200 |
) |
|
(48 |
) |
||||
Add: Depreciation expense |
|
580 |
|
|
569 |
|
|
1,158 |
|
|
1,110 |
|
||||
Add: Amortization expense |
|
275 |
|
|
287 |
|
|
551 |
|
|
596 |
|
||||
EBITDA |
|
(8,009 |
) |
|
(5,942 |
) |
|
(11,516 |
) |
|
(11,775 |
) |
||||
Add: Stock-based compensation expense |
|
1,824 |
|
|
1,637 |
|
|
3,550 |
|
|
3,244 |
|
||||
Add: Change in fair value of warrant liabilities |
|
5,997 |
|
|
— |
|
|
5,997 |
|
|
— |
|
||||
Adjusted EBITDA |
$ |
(188 |
) |
$ |
(4,305 |
) |
$ |
(1,969 |
) |
$ |
(8,531 |
) |
LENSAR, Inc. STATEMENTS OF OPERATIONS (In thousands, except per share amounts) |
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Revenue |
||||||||||||||||
Product |
$ |
9,377 |
|
$ |
5,733 |
|
$ |
15,035 |
|
$ |
12,702 |
|
||||
Lease |
|
1,691 |
|
|
1,415 |
|
|
3,320 |
|
|
2,814 |
|
||||
Service |
|
944 |
|
|
890 |
|
|
1,909 |
|
|
1,862 |
|
||||
Total revenue |
|
12,012 |
|
|
8,038 |
|
|
20,264 |
|
|
17,378 |
|
||||
Cost of revenue (exclusive of amortization) |
||||||||||||||||
Product |
|
3,665 |
|
|
1,765 |
|
|
5,964 |
|
|
4,459 |
|
||||
Lease |
|
496 |
|
|
484 |
|
|
990 |
|
|
958 |
|
||||
Service |
|
1,090 |
|
|
897 |
|
|
2,229 |
|
|
2,377 |
|
||||
Total cost of revenue |
|
5,251 |
|
|
3,146 |
|
|
9,183 |
|
|
7,794 |
|
||||
Operating expenses |
||||||||||||||||
Selling, general and administrative expenses |
|
7,854 |
|
|
7,569 |
|
|
14,609 |
|
|
13,847 |
|
||||
Research and development expenses |
|
1,499 |
|
|
3,834 |
|
|
3,149 |
|
|
8,622 |
|
||||
Amortization of intangible assets |
|
275 |
|
|
287 |
|
|
551 |
|
|
596 |
|
||||
Operating loss |
|
(2,867 |
) |
|
(6,798 |
) |
|
(7,228 |
) |
|
(13,481 |
) |
||||
Other income |
||||||||||||||||
Change in fair value of warrant liabilities |
|
(5,997 |
) |
|
— |
|
|
(5,997 |
) |
|
— |
|
||||
Other income, net |
|
111 |
|
|
39 |
|
|
200 |
|
|
48 |
|
||||
Net loss |
$ |
(8,753 |
) |
$ |
(6,759 |
) |
$ |
(13,025 |
) |
$ |
(13,433 |
) |
||||
Net loss per common share: |
||||||||||||||||
Basic and diluted |
$ |
(0.81 |
) |
$ |
(0.67 |
) |
$ |
(1.21 |
) |
$ |
(1.34 |
) |
||||
Weighted-average number of common shares used in calculation of net loss per share: |
||||||||||||||||
Basic and diluted |
|
10,820 |
|
|
10,073 |
|
|
10,768 |
|
|
10,020 |
|
LENSAR, Inc. BALANCE SHEETS (In thousands, except per share amounts) |
||||||||
June 30, 2023 |
December 31, 2022 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
25,466 |
|
$ |
14,674 |
|
||
Accounts receivable, net of allowance of |
|
3,223 |
|
|
6,040 |
|
||
Notes receivable, net of allowance of |
|
595 |
|
|
200 |
|
||
Inventories |
|
18,152 |
|
|
11,740 |
|
||
Prepaid and other current assets |
|
1,728 |
|
|
1,062 |
|
||
Total current assets |
|
49,164 |
|
|
33,716 |
|
||
Property and equipment, net |
|
605 |
|
|
563 |
|
||
Equipment under lease, net |
|
6,159 |
|
|
6,316 |
|
||
Notes and other receivables, long-term, net of allowance of |
|
1,221 |
|
|
442 |
|
||
Intangible assets, net |
|
11,571 |
|
|
12,122 |
|
||
Other assets |
|
2,476 |
|
|
2,685 |
|
||
Total assets |
$ |
71,196 |
|
$ |
55,844 |
|
||
Liabilities and stockholders’ equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
4,619 |
|
$ |
5,422 |
|
||
Accrued liabilities |
|
4,321 |
|
|
4,700 |
|
||
Deferred revenue |
|
1,067 |
|
|
768 |
|
||
Operating lease liabilities |
|
549 |
|
|
531 |
|
||
Total current liabilities |
|
10,556 |
|
|
11,421 |
|
||
Long-term operating lease liabilities |
|
2,033 |
|
|
2,272 |
|
||
Warrant liabilities |
|
11,602 |
|
|
— |
|
||
Other long-term liabilities |
|
568 |
|
|
167 |
|
||
Total liabilities |
|
24,759 |
|
|
13,860 |
|
||
Series A Convertible Preferred Stock, par value |
|
13,747 |
|
|
— |
|
||
Stockholders’ equity: |
||||||||
Preferred stock, par value |
|
— |
|
|
— |
|
||
Common stock, par value |
|
112 |
|
|
111 |
|
||
Additional paid-in capital |
|
143,111 |
|
|
139,381 |
|
||
Accumulated deficit |
|
(110,533 |
) |
|
(97,508 |
) |
||
Total stockholders’ equity |
|
32,690 |
|
|
41,984 |
|
||
Total liabilities and stockholders’ equity |
$ |
71,196 |
|
$ |
55,844 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230808989755/en/
Thomas R. Staab, II, CFO
ir.contact@lensar.com
Lee Roth / Cameron Radinovic
Burns McClellan for LENSAR
lroth@burnsmc.com /
cradinovic@burnsmc.com
Source: LENSAR, Inc.