SeaSpine Announces Fourth Quarter and Full-Year 2020 Results
SeaSpine Holdings Corporation (NASDAQ: SPNE) reported record financial results for Q4 2020, achieving $46.4 million in revenue, a 6.2% year-over-year increase. U.S. revenue rose to $42.1 million, driven by spinal implants and orthobiologics. However, annual revenue decreased by 3.0% to $154.3 million, alongside a net loss of $43.2 million for 2020. Despite challenges from the pandemic, SeaSpine launched 19 new products in 2020, contributing to a strong Q4, particularly in the spinal implants sector.
- Record Q4 revenue of $46.4 million, up 6.2% year-over-year.
- U.S. revenue increased 7.2% to $42.1 million.
- Spinal implants revenue grew by 7.0% compared to Q4 2019.
- Successful launch of 19 new products in 2020.
- Full-year revenue decreased by 3.0% to $154.3 million.
- Net loss for 2020 increased to $43.2 million from $39.3 million in 2019.
- Operating expenses rose by $0.6 million to $140.9 million.
Reports Record Quarterly Revenue, Driven by U.S. Sales Channel
CARLSBAD, Calif., March 01, 2021 (GLOBE NEWSWIRE) -- SeaSpine Holdings Corporation (NASDAQ: SPNE), a global medical technology company focused on surgical solutions for the treatment of spinal disorders, announced today financial results for the three-months and full-year ended December 31, 2020.
Summary Fourth Quarter 2020 Financial Results and Recent Accomplishments
- Revenue of
$46.4 million , an increase of6.2% year-over-year - U.S. revenue of
$42.1 million , an increase of7.2% year-over-year- U.S. spinal implants revenue of
$20.7 million , an increase of8.3% year-over-year - U.S. orthobiologics revenue of
$21.4 million , an increase of6.2% year-over-year
- U.S. spinal implants revenue of
- Publication in The Journal of Bone and Joint Surgery of results from a preclinical study demonstrating SeaSpine’s OsteoStrand® Plus DBM product outperformed the tested cellular bone matrix products
- Limited commercial launch of the following additions to the product portfolio:
- Admiral™ ACP System, a next-generation system designed to be used as supplemental fixation for ACDF procedures in conjunction with the Company’s interbody offerings
- Meridian™ ALIF System with Reef™ A Interbody, which provides maximum modularity either in standalone No-profile or TruProfile® configurations
- Regatta® Lateral Plate System, designed to bring maximum fixation with minimum profile using the Company’s TruProfile technology
- Full commercial launch of a minimally invasive, pedicle-based TLIF retractor compatible with the Company’s Mariner® system
“Our fourth quarter results reflected record revenue and meaningful growth in both our spinal implants and orthobiologics portfolios, despite the greater impact of the pandemic on surgery volumes compared to the third quarter. Our results were particularly encouraging when compared to the fourth quarter of 2019, which included
Fourth Quarter 2020 Financial Results
Revenue for the fourth quarter of 2020 totaled
Spinal implants revenue totaled
Orthobiologics revenue totaled
Gross margin for the fourth quarter of 2020 was
Operating expenses for the fourth quarter of 2020 totaled
Net loss for the fourth quarter of 2020 was
Cash, cash equivalents and short-term investments at December 31, 2020 totaled
2020 Financial Results
Revenue for the year ended December 31, 2020 totaled
Gross margin for 2020 was
Operating expenses for 2020 totaled
Net loss for 2020 was
Webcast and Conference Call Information
The Company’s management team will host a conference call beginning today at 1:30pm PT/4:30pm ET to discuss the financial results and recent business developments. Individuals interested in listening to the conference call may do so by dialing (877) 418-4766 for domestic callers or (614) 385-1253 for international callers, using Conference ID: 3485218. To listen to a live webcast, please visit the Investors section of the SeaSpine website at: www.seaspine.com.
About SeaSpine
SeaSpine (www.seaspine.com) is a global medical technology company focused on the design, development and commercialization of surgical solutions for the treatment of patients suffering from spinal disorders. SeaSpine has a comprehensive portfolio of orthobiologics and spinal implants solutions to meet the varying combinations of products that neurosurgeons and orthopedic spine surgeons need to perform fusion procedures on the lumbar, thoracic and cervical spine. SeaSpine’s orthobiologics products consist of a broad range of advanced and traditional bone graft substitutes that are designed to improve bone fusion rates following a wide range of orthopedic surgeries, including spine, hip, and extremities procedures. SeaSpine’s spinal implants portfolio consists of an extensive line of products to facilitate spinal fusion in degenerative, minimally invasive surgery (MIS), and complex spinal deformity procedures. Expertise in both orthobiologic sciences and spinal implants product development allows SeaSpine to offer its surgeon customers a differentiated portfolio and a complete solution to meet their patients’ fusion requirements. SeaSpine currently markets its products in the United States and in approximately 30 countries worldwide through a committed network of increasingly exclusive distribution partners.
Forward-Looking Statements
SeaSpine cautions you that statements in this news release that are not a description of historical facts are forward-looking statements based on the Company’s current expectations and assumptions. Such forward-looking statements include, but are not limited to, statements relating to: the Company’s commitment to its mission to deliver cost effective spinal implants and orthobiologics procedural solutions to surgeons and hospitals to improve the quality of patient lives. Among the factors that could cause or contribute to material differences between the Company’s actual results and the expectations indicated by the forward-looking statements are risks and uncertainties that include, but are not limited to: surgeons’ willingness to adopt the Company’s newly launched products; the ability of newly launched products to meet the needs of surgeons and patients, including as a result of the lack of clinical validation of products in limited commercial (or “alpha”) launch; continued pricing pressure and exclusion from major healthcare systems; the risk of supply shortages and associated disruption to product sales, including as a result of the Company’s dependence on a limited number of third-party suppliers for components and raw materials, or otherwise; the Company’s ability to continue to invest in medical education and training, product development, and/or sales and marketing initiatives at levels sufficient to drive future revenue growth; general economic and business conditions in the markets in which the Company does business, both in the U.S. and abroad; and other risks and uncertainties more fully described in the Company’s news releases and periodic filings with the Securities and Exchange Commission. The Company’s public filings with the Securities and Exchange Commission are available at www.sec.gov.
You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date when made. SeaSpine does not intend to revise or update any forward-looking statement in this news release to reflect events or circumstances arising after the date hereof, except as may be required by law.
Investor Relations Contact
Leigh Salvo
(415) 937-5402
ir@seaspine.com
SEASPINE HOLDINGS CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Total revenue, net | $ | 46,436 | $ | 43,739 | $ | 154,345 | $ | 159,083 | |||||||||||
Cost of goods sold | 17,296 | 15,676 | 56,841 | 57,979 | |||||||||||||||
Gross profit | 29,140 | 28,063 | 97,504 | 101,104 | |||||||||||||||
Operating expenses: | |||||||||||||||||||
Selling and marketing | 24,652 | 22,893 | 84,304 | 83,445 | |||||||||||||||
General and administrative | 9,567 | 9,096 | 35,874 | 33,594 | |||||||||||||||
Research and development | 4,472 | 4,130 | 16,258 | 15,125 | |||||||||||||||
Intangible amortization | 792 | 792 | 3,169 | 3,169 | |||||||||||||||
Impairment of intangible assets | — | — | 1,325 | 4,993 | |||||||||||||||
Total operating expenses | 39,483 | 36,911 | 140,930 | 140,326 | |||||||||||||||
Operating loss | (10,343 | ) | (8,848 | ) | (43,426 | ) | (39,222 | ) | |||||||||||
Other (income) expense net | (86 | ) | (351 | ) | (463 | ) | (302 | ) | |||||||||||
Loss before income taxes | (10,257 | ) | (8,497 | ) | (42,963 | ) | (38,920 | ) | |||||||||||
Provision for income taxes | 86 | 91 | 218 | 356 | |||||||||||||||
Net loss | $ | (10,343 | ) | $ | (8,588 | ) | $ | (43,181 | ) | $ | (39,276 | ) | |||||||
Net Loss per share, basic and diluted | $ | (0.37 | ) | $ | (0.45 | ) | $ | (1.59 | ) | $ | (2.07 | ) | |||||||
Weighted average shares used to compute basic and diluted net loss per share | 27,639 | 19,065 | 27,222 | 18,977 |
SEASPINE HOLDINGS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET DATA
(In thousands)
December 31, 2020 | December 31, 2019 | ||||||
Cash and cash equivalents | $ | 76,813 | $ | 20,199 | |||
Trade accounts receivable, net | 26,154 | 24,902 | |||||
Inventories | 54,041 | 47,155 | |||||
Total current liabilities | 30,727 | 30,478 | |||||
Paycheck Protection Program loan payable (long-term portion) | 5,059 | — | |||||
Total stockholders’ equity | 171,718 | 109,760 |
FAQ
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