Organogenesis Holdings Inc. Reports Preliminary Financial Results for Fourth Quarter and Fiscal Year 2020

Rhea-AI Summary

Organogenesis Holdings (Nasdaq: ORGO) reported preliminary financial results for Q4 and fiscal year 2020. Q4 net revenue is projected between $104.6 million and $106.0 million, marking a 40% to 42% increase year-over-year. Advanced Wound Care revenues rose by 45% to 47%, while Surgical & Sports Medicine grew by 12% to 14%. For the full year, revenue reached $336.1 million to $337.5 million, up 29% from 2019. The company anticipates reporting positive GAAP net income and adjusted EBITDA for both periods.

Positive

• Q4 net revenue expected between $104.6 million and $106.0 million, up 40% to 42% YoY.
• Advanced Wound Care revenue increased by 45% to 47% YoY.
• Full-year revenue projected at $336.1 million to $337.5 million, up 29% from 2019.
• Positive GAAP net income and Adjusted EBITDA expected for Q4 2020 and FY 2020.

Negative

• None.

CANTON, Mass., Jan. 13, 2021 (GLOBE NEWSWIRE) -- Organogenesis Holdings Inc. (Nasdaq: ORGO), a leading regenerative medicine company focused on the development, manufacture, and commercialization of product solutions for the Advanced Wound Care and Surgical & Sports Medicine markets, today reported preliminary financial results for the three months and twelve months ended December 31, 2020.

Fourth Quarter 2020 Preliminary Financial Results Summary:

• Net revenue of between $104.6 million and $106.0 million for the three months ended December 31, 2020, up 40% to 42% compared to net revenue of $74.6 million for the three months ended December 31, 2019.
  Net revenue is based upon:
  ○  Net revenue from Advanced Wound Care products of between $92.0 million and $93.2 million, up 45% to 47% year-over-year.
  ○  Net revenue from Surgical & Sports Medicine products of between $12.6 million and $12.8 million, up 12% to 14% year-over-year.
• Net revenue from the sale of PuraPly products of between $43.8 million and $44.6 million for the three months ended December 31, 2020, up 10% to 12% year-over-year.
• The Company expects to report positive GAAP net income and positive Adjusted EBITDA for the three months ended December 31, 2020.
  

Fiscal Year 2020 Preliminary Financial Results Summary:

• Net revenue of between $336.1 million and $337.5 million for the twelve months ended December 31, 2020, up approximately 29% compared to net revenue of $261 million for the twelve months ended December 31, 2019.
  Net revenue is based upon:
  ○  Net revenue from Advanced Wound Care products of between $293.0 million and $294.2 million, up approximately 33% year-over-year.
  ○  Net revenue from Surgical & Sports Medicine products of between $43.1 million and $43.3 million, up 7% to 8% year-over-year.
• Net revenue from the sale of PuraPly products of between $145.8 million and $146.6 million for the twelve months ended December 31, 2020, up 15% to 16% year-over-year.
• The Company expects to report positive GAAP net income and positive Adjusted EBITDA for the full fiscal year 2020 period.

Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include statements relating to the Company’s expected revenue for the three and twelve months ended December 31, 2020 and the breakdown of such revenue in both its Advanced Wound Care and Surgical & Sports Medicine categories as well as the estimated revenue contribution of its PuraPly products. Forward-looking statements with respect to the operations of the Company, strategies, prospects and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. These factors include, but are not limited to: (1) the Company has incurred significant losses since inception and may incur losses in the future; (2) the Company faces significant and continuing competition, which could adversely affect its business, results of operations and financial condition; (3) rapid technological change could cause the Company’s products to become obsolete and if the Company does not enhance its product offerings through its research and development efforts, it may be unable to effectively compete; (4) to be commercially successful, the Company must convince physicians that its products are safe and effective alternatives to existing treatments and that its products should be used in their procedures; (5) the Company’s ability to raise funds to expand its business; (6) the impact of any changes to the reimbursement levels for the Company’s products and the impact to the Company of the loss of preferred “pass through” status for PuraPly AM and PuraPly on October 1, 2020; (7) changes in applicable laws or regulations; (8) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (9) the Company’s ability to complete the relaunch of Affinity and to maintain production in sufficient quantities to meet demand; (10) the COVID-19 pandemic and its impact, if any, on the Company’s fiscal condition and results of operations; and (11) other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including Item 1A (Risk Factors) of the Company’s Form 10-K for the year ended December 31, 2019 and its subsequently filed periodic reports. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the Company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

About Organogenesis Holdings Inc.
Organogenesis Holdings Inc. is a leading regenerative medicine company offering a portfolio of bioactive and acellular biomaterials products in advanced wound care and surgical biologics, including orthopedics and spine. Organogenesis’s comprehensive portfolio is designed to treat a variety of patients with repair and regenerative needs. For more information, visit www.organogenesis.com.

FAQ

What are Organogenesis Holdings' preliminary Q4 2020 financial results?

Organogenesis expects Q4 2020 net revenue between $104.6 million and $106.0 million, a 40% to 42% increase from Q4 2019.

How did Organogenesis perform in fiscal year 2020?

For fiscal year 2020, Organogenesis reported preliminary net revenue of approximately $336.1 million to $337.5 million, up 29% from 2019.

What is the expected revenue from Advanced Wound Care products?

The expected Q4 revenue from Advanced Wound Care products is between $92.0 million and $93.2 million, a 45% to 47% increase year-over-year.

Will Organogenesis report a profit for Q4 2020?

Yes, Organogenesis expects to report positive GAAP net income and positive Adjusted EBITDA for Q4 2020.