STAAR Surgical Reports Second Quarter 2023 Results
- Net sales increased by 14% YoY, reaching $92.3 million.
- Record ICL sales of $93.1 million, up 19% YoY.
- Gross margin decreased to 76.6% from 78.8% in the prior year quarter.
- Net income per share was $0.12, compared to $0.26 in the prior year quarter.
- Cash, cash equivalents, and investments totaled $209.5 million.
- Gross margin decreased by 2.2 percentage points.
- Net income per share decreased by 54%.
- ICL sales growth in EMEA markets was down 23%.
Record ICL Sales of
Second Quarter 2023 Overview
-
Net Sales of
Up$92.3 Million 14% includes a sales reduction related to Other Products$0.7 Million -
Record ICL Sales of
Up$93.1 Million 19% Y/Y and Up20% Y/Y in Constant Currency -
ICL Units Up
21% Y/Y -
Gross Margin at
76.6% vs.78.8% in the Prior Year Quarter -
Net Income of
per Share vs.$0.12 per Share in the Prior Year Quarter$0.26 -
Cash, Cash Equivalents and Investments Available for Sale Ended the Quarter at
$209.5 Million -
Accounting adjustments related to Other Products resulted in Adjusted Net Sales of
; Adjusted Gross Profit Margin of$93.0 Million 79.8% and Adjusted Net Income for ICL of per Share.$0.19
“Record second quarter global ICL sales of
Mr. Frinzi continued, “Given increased conservatism related to the global environment, and a revised near-term outlook for
Financial Overview – Q2 2023
During the quarter, the Company recorded various accounting adjustments related to its Other Products, specifically its non-core Cataract IOL business which the Company had previously announced it will no longer support after fiscal 2023. These adjustments included a
Net sales were
Gross profit margin for the second quarter of 2023 was
Operating expenses for the second quarter of 2023 were
Net income for the second quarter of 2023 was
Cash, cash equivalents, and investments available for sale at June 30, 2023, totaled
1 Refractive Surgery Council, RSC Quarterly Statistical Program, Q2 2023 Report,
Conference Call
The Company will host a conference call and webcast today, Wednesday, August 2 at 4:30 p.m. Eastern / 1:30 p.m. Pacific to discuss its financial results and operational progress. To access the conference call (Conference ID 99981426), please dial 888-259-6580 for domestic participants and 206-962-3782 for international participants. The live webcast can be accessed from the investor relations section of the STAAR website at www.staar.com.
A taped replay of the conference call (Replay Code 981426) will be available beginning approximately one hour after the call’s conclusion for seven days. This replay can be accessed by dialing 877-674-7070 for domestic callers and 416-764-8692 for international callers. An archived webcast will also be available at www.staar.com.
Use of Non-GAAP Financial Measures
This press release includes supplemental Non-GAAP financial information, which STAAR believes investors will find helpful in understanding its operating performance. Non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
“Adjusted Net Income” and “Adjusted Net Income for ICL” exclude the following items that are included in “Net Income” as calculated in accordance with
Management has excluded accounting adjustments related to exiting the Company’s non-core Cataract IOL business. These accounting adjustments include sales returns reserve, excess inventory reserves, an impairment charge related to cataract IOLs and the associated tax benefit of these adjustments. The Company has excluded these items in order to focus on its core ICL business as the Company will continue tapering the manufacturing of cataract IOLs, though it will continue to support these products through the end of 2023, as supplies permit. Management believes that disclosing Adjusted Net Income and Adjusted Net Income for ICL excluding these accounting adjustments is useful to investors in gauging the performance of its core ICL business.
For the reasons referenced above in connection with calculating Adjusted Net Income and Adjusted Net Income for ICL, management also supplements the Company’s GAAP consolidated financial statements and GAAP financial measures with other Non-GAAP financial measures, comprising of Adjusted Net Sales, Adjusted Cost of Sales, Adjusted Gross Profit Margin, Adjusted Operating Expenses, Adjusted Income Tax Provision, which in each case exclude the impact of any accounting adjustments related to the exiting of the Company’s non-core Cataract IOL business. The Company believes that these Non-GAAP financial measures provide additional insight into the ongoing financial results of its business which investors find useful to gauge the performance of its core ICL business.
Management has also excluded from the calculation of Adjusted Net Income gains and losses on foreign currency transactions because of the significant fluctuations that can result from period to period as a result of market driven factors. Stock-based compensation expenses consist of expenses for stock options and restricted stock under the Financial Accounting Standards Board’s Accounting Standards Codification (ASC) 718. Valuation allowance adjustments can occur from time to time based on forecasted changes in operating results until all net operating loss carryforwards are fully utilized. In calculating Adjusted Net Income, STAAR excludes stock-based compensation expenses and valuation allowance adjustments (if any) because they are non-cash expenses and because of the considerable judgment involved in calculating their values. In addition, these expenses tend to be driven by fluctuations in the price of our stock and not by the same factors that generally affect our other business expenses.
The Company also uses Constant Currency as a Non-GAAP financial measure to exclude the effects of currency fluctuations on net sales. The Company conducts a significant part of its activities outside the
About STAAR Surgical
STAAR, which has been dedicated solely to ophthalmic surgery for over 40 years, designs, develops, manufactures and markets implantable lenses for the eye. These lenses are intended to provide visual freedom for patients, lessening or eliminating the reliance on glasses or contact lenses. All of these lenses are foldable, which permits the surgeon to insert them through a small incision. STAAR’s lens used in refractive surgery is called an Implantable Collamer® Lens or “ICL,” which includes the EVO ICL™ product line. More than 2,000,000 ICLs have been sold to date and STAAR markets these lenses in over 75 countries. To learn more about the ICL go to: EVOICL.com. Headquartered in
Safe Harbor
All statements that are not statements of historical fact are forward-looking statements, including statements about any of the following: any financial projections (including sales), plans, strategies, and objectives of management for 2023 or prospects for achieving such plans, expectations for sales, revenue, margin, expenses or earnings, and any statements of assumptions underlying any of the foregoing, including those relating to financial performance in the quarter and fiscal year 2023. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include risks and uncertainties related to the COVID-19 pandemic and related public health measures, as well as the factors set forth in the Company’s Annual Report on Form 10-K for the year ended December 30, 2022 under the caption “Risk Factors,” which is on file with the Securities and Exchange Commission and available in the “Investor Information” section of the company’s website under the heading “SEC Filings.” We disclaim any intention or obligation to update or revise any financial projections or forward-looking statement due to new information or events. These statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties include the following: global economic conditions; the impact of the COVID-19 pandemic on markets; the discretion of regulatory agencies to approve or reject existing, new or improved products, or to require additional actions before approval, or to take enforcement action; international trade disputes; and the willingness of surgeons and patients to adopt a new or improved product and procedure.
We intend to use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included on our website in the ‘Investor Relations’ sections. Accordingly, investors should monitor such portions of our website, in addition to following our press releases, SEC filings and public conference calls and webcasts.
Consolidated Balance Sheets | ||||||||
(in 000's) | ||||||||
Unaudited | ||||||||
|
||||||||
|
June 30, 2023 | December 30, 2022 | ||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
94,695 |
|
$ |
86,480 |
|
||
Investments available for sale |
|
97,312 |
|
|
125,159 |
|
||
Accounts receivable trade, net |
|
94,442 |
|
|
62,447 |
|
||
Inventories, net |
|
25,482 |
|
|
24,161 |
|
||
Prepayments, deposits, and other current assets |
|
16,072 |
|
|
13,476 |
|
||
Total current assets |
|
328,003 |
|
|
311,723 |
|
||
Investments available for sale |
|
17,525 |
|
|
13,902 |
|
||
Property, plant, and equipment, net |
|
55,924 |
|
|
50,921 |
|
||
Finance lease right-of-use assets, net |
|
257 |
|
|
342 |
|
||
Operating lease right-of-use assets, net |
|
31,530 |
|
|
30,270 |
|
||
Intangible assets, net |
|
- |
|
|
173 |
|
||
Goodwill |
|
1,786 |
|
|
1,786 |
|
||
Deferred income taxes |
|
4,672 |
|
|
4,824 |
|
||
Other assets |
|
954 |
|
|
957 |
|
||
Total assets |
$ |
440,651 |
|
$ |
414,898 |
|
||
|
||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
11,441 |
|
$ |
11,576 |
|
||
Obligations under finance leases |
|
162 |
|
|
169 |
|
||
Obligations under operating leases |
|
4,013 |
|
|
3,524 |
|
||
Allowance for sales returns |
|
6,653 |
|
|
5,706 |
|
||
Other current liabilities |
|
31,925 |
|
|
30,741 |
|
||
Total current liabilities |
|
54,194 |
|
|
51,716 |
|
||
Obligations under finance leases |
|
125 |
|
|
210 |
|
||
Obligations under operating leases |
|
28,189 |
|
|
27,136 |
|
||
Deferred income taxes |
|
1,295 |
|
|
1,489 |
|
||
Asset retirement obligations |
|
101 |
|
|
220 |
|
||
Pension liability |
|
3,050 |
|
|
1,935 |
|
||
Total liabilities |
|
86,954 |
|
|
82,706 |
|
||
|
||||||||
Stockholders' equity: |
||||||||
Common stock |
|
485 |
|
|
482 |
|
||
Additional paid-in capital |
|
419,594 |
|
|
404,189 |
|
||
Accumulated other comprehensive income (loss) |
|
(2,521 |
) |
|
156 |
|
||
Accumulated deficit |
|
(63,861 |
) |
|
(72,635 |
) |
||
Total stockholders' equity |
|
353,697 |
|
|
332,192 |
|
||
Total liabilities and stockholders' equity |
$ |
440,651 |
|
$ |
414,898 |
|
Consolidated Statements of Income | ||||||||||||||||||||||||||||||||||||||
(In 000's except for per share data) | ||||||||||||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
% of | June 30, 2023 | % of | July 1, 2022 | Fav (Unfav) | % of | June 30, 2023 | % of | July 1, 2022 | Fav (Unfav) | |||||||||||||||||||||||||||||
Sales | Sales | Amount | % | Sales | Sales | Amount | % | |||||||||||||||||||||||||||||||
Net sales | 100.0 |
% |
$ |
92,306 |
|
100.0 |
% |
$ |
81,101 |
|
$ |
11,205 |
|
13.8 |
% |
100.0 |
% |
$ |
165,834 |
|
100.0 |
% |
$ |
144,301 |
|
$ |
21,533 |
|
14.9 |
% |
||||||||
Cost of sales | 23.4 |
% |
|
21,580 |
|
21.2 |
% |
|
17,229 |
|
|
(4,351 |
) |
-25.3 |
% |
22.6 |
% |
|
37,546 |
|
21.6 |
% |
|
31,165 |
|
|
(6,381 |
) |
-20.5 |
% |
||||||||
Gross profit | 76.6 |
% |
|
70,726 |
|
78.8 |
% |
|
63,872 |
|
|
6,854 |
|
10.7 |
% |
77.4 |
% |
|
128,288 |
|
78.4 |
% |
|
113,136 |
|
|
15,152 |
|
13.4 |
% |
||||||||
Selling, general and administrative expenses: | ||||||||||||||||||||||||||||||||||||||
General and administrative | 19.6 |
% |
|
18,097 |
|
17.2 |
% |
|
13,983 |
|
|
(4,114 |
) |
-29.4 |
% |
21.8 |
% |
|
36,195 |
|
18.0 |
% |
|
25,923 |
|
|
(10,272 |
) |
-39.6 |
% |
||||||||
Selling and marketing | 35.0 |
% |
|
32,277 |
|
29.9 |
% |
|
24,233 |
|
|
(8,044 |
) |
-33.2 |
% |
35.4 |
% |
|
58,631 |
|
28.8 |
% |
|
41,503 |
|
|
(17,128 |
) |
-41.3 |
% |
||||||||
Research and development | 12.7 |
% |
|
11,755 |
|
10.7 |
% |
|
8,636 |
|
|
(3,119 |
) |
-36.1 |
% |
13.3 |
% |
|
22,065 |
|
11.4 |
% |
|
16,577 |
|
|
(5,488 |
) |
-33.1 |
% |
||||||||
Total selling, general, and administrative expenses | 67.3 |
% |
|
62,129 |
|
57.8 |
% |
|
46,852 |
|
|
(15,277 |
) |
-32.6 |
% |
70.5 |
% |
|
116,891 |
|
58.2 |
% |
|
84,003 |
|
|
(32,888 |
) |
-39.2 |
% |
||||||||
Operating income | 9.3 |
% |
|
8,597 |
|
21.0 |
% |
|
17,020 |
|
|
(8,423 |
) |
-49.5 |
% |
6.9 |
% |
|
11,397 |
|
20.2 |
% |
|
29,133 |
|
|
(17,736 |
) |
-60.9 |
% |
||||||||
Other income (expense), net: | ||||||||||||||||||||||||||||||||||||||
Interest income, net | 1.9 |
% |
|
1,775 |
|
0.1 |
% |
|
43 |
|
|
1,732 |
|
4027.9 |
% |
2.2 |
% |
|
3,597 |
|
0.0 |
% |
|
37 |
|
|
3,560 |
|
9621.6 |
% |
||||||||
Loss on foreign currency transactions | -2.0 |
% |
|
(1,890 |
) |
-2.3 |
% |
|
(1,860 |
) |
|
(30 |
) |
-1.6 |
% |
-1.1 |
% |
|
(1,856 |
) |
-1.9 |
% |
|
(2,775 |
) |
|
919 |
|
33.1 |
% |
||||||||
Royalty income | 0.0 |
% |
|
0 |
|
0.2 |
% |
|
177 |
|
|
(177 |
) |
-100.0 |
% |
0.0 |
% |
|
0 |
|
0.3 |
% |
|
450 |
|
|
(450 |
) |
-100.0 |
% |
||||||||
Other income, net | 0.0 |
% |
|
10 |
|
0.1 |
% |
|
89 |
|
|
(79 |
) |
-88.8 |
% |
0.0 |
% |
|
73 |
|
0.1 |
% |
|
151 |
|
|
(78 |
) |
-51.7 |
% |
||||||||
Total other income (expense), net | -0.1 |
% |
|
(105 |
) |
-1.9 |
% |
|
(1,551 |
) |
|
1,446 |
|
93.2 |
% |
1.1 |
% |
|
1,814 |
|
-1.5 |
% |
|
(2,137 |
) |
|
3,951 |
|
184.9 |
% |
||||||||
Income before provision for income taxes | 9.2 |
% |
|
8,492 |
|
19.1 |
% |
|
15,469 |
|
|
(6,977 |
) |
-45.1 |
% |
8.0 |
% |
|
13,211 |
|
18.7 |
% |
|
26,996 |
|
|
(13,785 |
) |
-51.1 |
% |
||||||||
Provision for income taxes | 2.6 |
% |
|
2,428 |
|
3.0 |
% |
|
2,431 |
|
|
3 |
|
0.1 |
% |
2.7 |
% |
|
4,437 |
|
3.0 |
% |
|
4,356 |
|
|
(81 |
) |
-1.9 |
% |
||||||||
Net income | 6.6 |
% |
$ |
6,064 |
|
16.1 |
% |
$ |
13,038 |
|
$ |
(6,974 |
) |
-53.5 |
% |
5.3 |
% |
$ |
8,774 |
|
15.7 |
% |
$ |
22,640 |
|
$ |
(13,866 |
) |
-61.2 |
% |
||||||||
Net income per share - basic | $ |
0.13 |
|
$ |
0.27 |
|
$ |
0.18 |
|
$ |
0.47 |
|
||||||||||||||||||||||||||
Net income per share - diluted | $ |
0.12 |
|
$ |
0.26 |
|
$ |
0.18 |
|
$ |
0.46 |
|
||||||||||||||||||||||||||
Weighted average shares outstanding - basic |
|
48,418 |
|
|
47,889 |
|
|
48,333 |
|
|
47,822 |
|
||||||||||||||||||||||||||
Weighted average shares outstanding - diluted |
|
49,516 |
|
|
49,223 |
|
|
49,524 |
|
|
49,264 |
|
Consolidated Statements of Cash Flows | ||||||||||||||||
(in 000's) | ||||||||||||||||
Unaudited | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2023 | July 1, 2022 | June 30, 2023 | July 1, 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ |
6,064 |
|
$ |
13,038 |
|
$ |
8,774 |
|
$ |
22,640 |
|
||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||
Depreciation of property and equipment |
|
1,285 |
|
|
1,030 |
|
|
2,398 |
|
|
2,024 |
|
||||
Amortization of long-lived intangibles |
|
164 |
|
|
7 |
|
|
171 |
|
|
15 |
|
||||
Accretion/Amortization of investments available for sale |
|
(841 |
) |
|
- |
|
|
(1,824 |
) |
|
- |
|
||||
Deferred income taxes |
|
18 |
|
|
- |
|
|
75 |
|
|
- |
|
||||
Change in net pension liability |
|
(614 |
) |
|
11 |
|
|
(627 |
) |
|
52 |
|
||||
Stock-based compensation expense |
|
8,423 |
|
|
5,754 |
|
|
14,488 |
|
|
9,648 |
|
||||
Change in asset retirement obligation |
|
(107 |
) |
|
- |
|
|
(107 |
) |
|
- |
|
||||
Loss on disposal of property and equipment |
|
24 |
|
|
- |
|
|
24 |
|
|
- |
|
||||
Provision for sales returns and bad debts |
|
1,381 |
|
|
994 |
|
|
1,004 |
|
|
800 |
|
||||
Inventory provision |
|
3,016 |
|
|
994 |
|
|
3,630 |
|
|
1,428 |
|
||||
Changes in working capital: | ||||||||||||||||
Accounts receivable |
|
(31,234 |
) |
|
(16,210 |
) |
|
(32,344 |
) |
|
(20,137 |
) |
||||
Inventories |
|
(462 |
) |
|
(342 |
) |
|
(4,382 |
) |
|
(1,825 |
) |
||||
Prepayments, deposits and other current assets |
|
1,584 |
|
|
2,245 |
|
|
(2,665 |
) |
|
(2,260 |
) |
||||
Accounts payable |
|
1,721 |
|
|
575 |
|
|
(1,447 |
) |
|
3,243 |
|
||||
Other current liabilities |
|
3,272 |
|
|
5,150 |
|
|
1,432 |
|
|
(6,992 |
) |
||||
Net cash provided by (used in) operating activities |
|
(6,306 |
) |
|
13,246 |
|
|
(11,400 |
) |
|
8,636 |
|
||||
Cash flows from investing activities: | ||||||||||||||||
Acquisition of property and equipment |
|
(3,014 |
) |
|
(5,271 |
) |
|
(5,915 |
) |
|
(7,810 |
) |
||||
Purchase of investments available for sale |
|
(15,157 |
) |
|
- |
|
|
(42,602 |
) |
|
- |
|
||||
Proceeds from sale or maturity of investments available for sale |
|
28,343 |
|
|
- |
|
|
68,622 |
|
|
- |
|
||||
Net cash provided by (used in) investing activities |
|
10,172 |
|
|
(5,271 |
) |
|
20,105 |
|
|
(7,810 |
) |
||||
Cash flows from financing activities: | ||||||||||||||||
Repayment of finance lease obligations |
|
(40 |
) |
|
(27 |
) |
|
(82 |
) |
|
(45 |
) |
||||
Repurchase of employee common stock for taxes withheld |
|
(135 |
) |
|
- |
|
|
(1,984 |
) |
|
- |
|
||||
Proceeds from vested restricted stock and exercise of stock options |
|
1,477 |
|
|
2,234 |
|
|
2,007 |
|
|
3,146 |
|
||||
Net cash provided by (used in) financing activities |
|
1,302 |
|
|
2,207 |
|
|
(59 |
) |
|
3,101 |
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
(441 |
) |
|
(759 |
) |
|
(431 |
) |
|
(1,143 |
) |
||||
Increase in cash and cash equivalents |
|
4,727 |
|
|
9,423 |
|
|
8,215 |
|
|
2,784 |
|
||||
Cash and cash equivalents, at beginning of the period |
|
89,968 |
|
|
193,067 |
|
|
86,480 |
|
|
199,706 |
|
||||
Cash and cash equivalents, at end of the period | $ |
94,695 |
|
$ |
202,490 |
|
$ |
94,695 |
|
$ |
202,490 |
|
Reconciliation of Non-GAAP Financial Measure | ||||||||||||||||||||||||||||||||||||
Financial Metrics Excluding Other Product Cataract IOL Adjustments | ||||||||||||||||||||||||||||||||||||
(in 000's) | ||||||||||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||
% of Sales | June 30, 2023 | % of Sales | July 1, 2022 | Fav (Unfav) | % of Sales | June 30, 2023 | % of Sales | July 1, 2022 | Fav (Unfav) | |||||||||||||||||||||||||||
Amount | % | Amount | % | |||||||||||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||||||||||||
Net sales, GAAP | 100.0 |
% |
$ |
92,306 |
|
100.0 |
% |
$ |
81,101 |
$ |
11,205 |
|
13.8 |
% |
100.0 |
% |
$ |
165,834 |
|
100.0 |
% |
$ |
144,301 |
$ |
21,533 |
|
14.9 |
% |
||||||||
Add: Cataract IOL sales return reserve |
|
742 |
|
|
- |
|
742 |
|
|
742 |
|
|
- |
|
742 |
|
||||||||||||||||||||
Adjusted Net sales, Non-GAAP | 100.0 |
% |
$ |
93,048 |
|
100.0 |
% |
$ |
81,101 |
$ |
11,947 |
|
14.7 |
% |
100.0 |
% |
$ |
166,576 |
|
100.0 |
% |
$ |
144,301 |
$ |
22,275 |
|
15.4 |
% |
||||||||
Cost of sales: | ||||||||||||||||||||||||||||||||||||
Cost of sales, GAAP | 23.4 |
% |
$ |
21,580 |
|
21.2 |
% |
$ |
17,229 |
$ |
(4,351 |
) |
-25.3 |
% |
22.6 |
% |
$ |
37,546 |
|
21.6 |
% |
$ |
31,165 |
$ |
(6,381 |
) |
-20.5 |
% |
||||||||
Less: Cataract IOL inventory reserve |
|
(2,800 |
) |
|
- |
|
2,800 |
|
|
(2,800 |
) |
|
- |
|
2,800 |
|
||||||||||||||||||||
Adjusted Cost of sales, Non-GAAP | 20.2 |
% |
$ |
18,780 |
|
21.2 |
% |
$ |
17,229 |
$ |
(1,551 |
) |
-9.0 |
% |
20.9 |
% |
$ |
34,746 |
|
21.6 |
% |
$ |
31,165 |
$ |
(3,581 |
) |
-11.5 |
% |
||||||||
Gross profit and gross profit margin: | ||||||||||||||||||||||||||||||||||||
Gross profit and gross profit margin, GAAP | 76.6 |
% |
$ |
70,726 |
|
78.8 |
% |
$ |
63,872 |
$ |
6,854 |
|
10.7 |
% |
77.4 |
% |
$ |
128,288 |
|
78.4 |
% |
$ |
113,136 |
$ |
15,152 |
|
13.4 |
% |
||||||||
Add: Cataract IOL sales return reserve |
|
742 |
|
|
- |
|
742 |
|
|
742 |
|
|
- |
|
742 |
|
||||||||||||||||||||
Add: Cataract IOL inventory reserve |
|
2,800 |
|
|
- |
|
2,800 |
|
|
2,800 |
|
|
- |
|
2,800 |
|
||||||||||||||||||||
Adjusted Gross profit and gross profit margin, Non-GAAP | 79.8 |
% |
$ |
74,268 |
|
78.8 |
% |
$ |
63,872 |
$ |
10,396 |
|
16.3 |
% |
79.1 |
% |
$ |
131,830 |
|
78.4 |
% |
$ |
113,136 |
$ |
18,694 |
|
16.5 |
% |
||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||
Operating expenses, GAAP | 67.3 |
% |
$ |
62,129 |
|
57.8 |
% |
$ |
46,852 |
$ |
(15,277 |
) |
-32.6 |
% |
70.5 |
% |
$ |
116,891 |
|
58.2 |
% |
$ |
84,003 |
$ |
(32,888 |
) |
-39.2 |
% |
||||||||
Less: Cataract IOL intangible impairment |
|
(154 |
) |
|
- |
|
154 |
|
|
(154 |
) |
|
- |
|
154 |
|
||||||||||||||||||||
Adjusted Operating expenses, Non-GAAP | 66.6 |
% |
$ |
61,975 |
|
57.8 |
% |
$ |
46,852 |
$ |
(15,123 |
) |
-32.3 |
% |
70.1 |
% |
$ |
116,737 |
|
58.2 |
% |
$ |
84,003 |
$ |
(32,734 |
) |
-39.0 |
% |
||||||||
Provision for income taxes: | ||||||||||||||||||||||||||||||||||||
Provision for income taxes, GAAP | 2.6 |
% |
$ |
2,428 |
|
3.0 |
% |
$ |
2,431 |
$ |
3 |
|
0.1 |
% |
2.7 |
% |
$ |
4,437 |
|
3.0 |
% |
$ |
4,356 |
$ |
(81 |
) |
-1.9 |
% |
||||||||
Add: Income tax benefit on Cataract IOL |
|
405 |
|
|
- |
|
(405 |
) |
|
405 |
|
|
- |
|
(405 |
) |
||||||||||||||||||||
Adjusted Provision for income taxes, Non-GAAP | 3.0 |
% |
$ |
2,833 |
|
3.0 |
% |
$ |
2,431 |
$ |
(402 |
) |
-16.5 |
% |
2.9 |
% |
$ |
4,842 |
|
3.0 |
% |
$ |
4,356 |
$ |
(486 |
) |
-11.2 |
% |
Reconciliation of Non-GAAP Financial Measure | ||||||||||||
Adjusted Net Income and Net Income Per Share | ||||||||||||
(in 000's) | ||||||||||||
Unaudited | Three Months Ended | Six Months Ended | ||||||||||
June 30, 2023 | July 1, 2022 | June 30, 2023 | July 1, 2022 | |||||||||
Net income (as reported) | $ |
6,064 |
|
$ |
13,038 |
$ |
8,774 |
|
$ |
22,640 |
||
Less | ||||||||||||
Cataract IOL sales return reserve |
|
742 |
|
|
- |
|
742 |
|
|
- |
||
Cataract IOL inventory reserve |
|
2,800 |
|
|
- |
|
2,800 |
|
|
- |
||
Cataract IOL intangible impairment |
|
154 |
|
|
- |
|
154 |
|
|
- |
||
Income tax benefit on Cataract IOL |
|
(405 |
) |
|
- |
|
(405 |
) |
|
- |
||
Adjusted net income for ICL |
|
9,355 |
|
|
13,038 |
|
12,065 |
|
|
22,640 |
||
Less: | ||||||||||||
Foreign currency impact |
|
1,890 |
|
|
1,860 |
|
1,856 |
|
|
2,775 |
||
Stock-based compensation expense |
|
8,423 |
|
|
5,754 |
|
14,488 |
|
|
9,648 |
||
Net income (adjusted) | $ |
19,668 |
|
$ |
20,652 |
$ |
28,409 |
|
$ |
35,063 |
||
Net income per share, basic (as reported) | $ |
0.13 |
|
$ |
0.27 |
$ |
0.18 |
|
$ |
0.47 |
||
Cataract IOL sales return reserve |
|
0.02 |
|
|
- |
|
0.02 |
|
|
- |
||
Cataract IOL inventory reserve |
|
0.06 |
|
|
- |
|
0.06 |
|
|
- |
||
Cataract IOL intangible impairment |
|
- |
|
|
- |
|
- |
|
|
- |
||
Income tax benefit on Cataract IOL |
|
(0.01 |
) |
|
- |
|
(0.01 |
) |
|
- |
||
Adjusted net income for ICL per share, basic |
|
0.19 |
|
|
0.27 |
|
0.25 |
|
|
0.47 |
||
Foreign currency impact |
|
0.04 |
|
|
0.04 |
|
0.04 |
|
|
0.06 |
||
Stock-based compensation expense |
|
0.17 |
|
|
0.12 |
|
0.30 |
|
|
0.20 |
||
Net income per share, basic (adjusted) | $ |
0.41 |
|
$ |
0.43 |
$ |
0.59 |
|
$ |
0.73 |
||
Net income per share, diluted (as reported) | $ |
0.12 |
|
$ |
0.26 |
$ |
0.18 |
|
$ |
0.46 |
||
Cataract IOL sales return reserve |
|
0.01 |
|
|
- |
|
0.01 |
|
|
- |
||
Cataract IOL inventory reserve |
|
0.06 |
|
|
- |
|
0.06 |
|
|
- |
||
Cataract IOL intangible impairment |
|
- |
|
|
- |
|
- |
|
|
- |
||
Income tax benefit on Cataract IOL |
|
(0.01 |
) |
|
- |
|
(0.01 |
) |
|
- |
||
Adjusted net income for ICL per share, diluted |
|
0.19 |
|
|
0.26 |
|
0.24 |
|
|
0.46 |
||
Foreign currency impact |
|
0.04 |
|
|
0.04 |
|
0.04 |
|
|
0.06 |
||
Stock-based compensation expense |
|
0.17 |
|
|
0.12 |
|
0.29 |
|
|
0.19 |
||
Net income per share, diluted (adjusted) | $ |
0.40 |
|
$ |
0.42 |
$ |
0.57 |
|
$ |
0.71 |
||
Weighted average shares outstanding - Basic |
|
48,418 |
|
|
47,889 |
|
48,333 |
|
|
47,822 |
||
Weighted average shares outstanding - Diluted |
|
49,516 |
|
|
49,223 |
|
49,524 |
|
|
49,264 |
||
Note: Net income per share (adjusted), basic and diluted, may not add due to rounding |
STAAR Surgical Company | ||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measure | ||||||||||||||||||||||||
Constant Currency Sales | ||||||||||||||||||||||||
(in 000's) | ||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
June 30, 2023 | Effect of | Constant | July 1, 2022 | As Reported | Constant Currency | |||||||||||||||||||
Sales | Currency | Currency | $ Change | % Change | $ Change | % Change | ||||||||||||||||||
ICL | $ |
93,112 |
|
$ |
390 |
|
$ |
93,502 |
|
$ |
77,922 |
$ |
15,190 |
|
19.5 |
% |
$ |
15,580 |
|
20.0 |
% |
|||
Cataract IOL |
|
40 |
|
|
2 |
|
|
42 |
|
|
2,547 |
|
(2,507 |
) |
-98.4 |
% |
|
(2,505 |
) |
-98.4 |
% |
|||
Other |
|
(846 |
) |
|
(15 |
) |
|
(861 |
) |
|
632 |
|
(1,478 |
) |
-233.9 |
% |
|
(1,493 |
) |
-236.2 |
% |
|||
Other Products |
|
(806 |
) |
|
(13 |
) |
|
(819 |
) |
|
3,179 |
|
(3,985 |
) |
-125.4 |
% |
|
(3,998 |
) |
-125.8 |
% |
|||
Total Sales | $ |
92,306 |
|
$ |
377 |
|
$ |
92,683 |
|
$ |
81,101 |
$ |
11,205 |
|
13.8 |
% |
$ |
11,582 |
|
14.3 |
% |
|||
Six Months Ended | ||||||||||||||||||||||||
June 30, 2023 | Effect of | Constant | July 1, 2022 | As Reported | Constant Currency | |||||||||||||||||||
Sales | Currency | Currency | $ Change | % Change | $ Change | % Change | ||||||||||||||||||
ICL | $ |
163,737 |
|
$ |
2,116 |
|
$ |
165,853 |
|
$ |
136,597 |
$ |
27,140 |
|
19.9 |
% |
$ |
29,256 |
|
21.4 |
% |
|||
Cataract IOL |
|
1,516 |
|
|
159 |
|
|
1,675 |
|
|
5,449 |
|
(3,933 |
) |
-72.2 |
% |
|
(3,774 |
) |
-69.3 |
% |
|||
Other |
|
581 |
|
|
112 |
|
|
693 |
|
|
2,255 |
|
(1,674 |
) |
-74.2 |
% |
|
(1,562 |
) |
-69.3 |
% |
|||
Other Products |
|
2,097 |
|
|
271 |
|
|
2,368 |
|
|
7,704 |
|
(5,607 |
) |
-72.8 |
% |
|
(5,336 |
) |
-69.3 |
% |
|||
Total Sales | $ |
165,834 |
|
$ |
2,387 |
|
$ |
168,221 |
|
$ |
144,301 |
$ |
21,533 |
|
14.9 |
% |
$ |
23,920 |
|
16.6 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230802056490/en/
Investors and Media
Brian Moore
Vice President, Investor, Media Relations and Corporate Development
(626) 303-7902, Ext. 3023
bmoore@staar.com
Source: STAAR Surgical Company
FAQ
What were STAAR Surgical's net sales for Q2 2023?
How much were the ICL sales for Q2 2023?
What was the gross margin for Q2 2023?
What was the net income per share for Q2 2023?