Vapotherm Reports Fourth Quarter and Fiscal Year 2020 Financial Results
Vapotherm, a global medical technology firm, announced its fourth quarter and fiscal year 2020 results, reporting a net revenue of $40.9 million for Q4, a 214.4% increase year-over-year. Fiscal year 2020 net revenue reached $125.7 million, a growth of 161.4% from 2019. Gross margins improved to 50.6% in Q4 and 50.1% for the year. Despite these gains, the company reported a net loss of $17.2 million in Q4 and $51.5 million for the year. The company anticipates revenue between $82 million and $88 million for 2021, reflecting significant post-COVID demand fluctuations.
- Q4 2020 net revenue: $40.9 million, a 214.4% increase year-over-year.
- Fiscal 2020 net revenue: $125.7 million, 161.4% growth from 2019.
- Gross margin improved to 50.6% in Q4 and 50.1% for the fiscal year.
- 72.8% growth in worldwide installed base of Precision Flow Hi-VNI systems in 2020.
- Net loss for Q4 2020 was $17.2 million, up from $12.5 million in Q4 2019.
- Operating expenses increased to $33 million in Q4, up $14.4 million from last year.
- 2021 revenue guidance of $82 million to $88 million reflects a significant decrease from 2020 levels.
Vapotherm, Inc. (NYSE: VAPO), (“Vapotherm” or the “Company”), a global medical technology company focused on the development and commercialization of its proprietary Vapotherm high velocity therapy® products, which are used to treat Patients of all ages suffering from respiratory distress, today announced fourth quarter and fiscal year 2020 financial results.
Fourth Quarter 2020 Summary
-
Net revenue for the fourth quarter of 2020 was
$40.9 million , representing a214.4% increase over the prior year period -
Gross margin was
50.6% in comparison to gross margin of45.1% in the fourth quarter of 2019
Fiscal Year 2020 Summary
-
Net revenue for 2020 was
$125.7 million ,161.4% growth over 2019 -
Disposable revenue in 2020 was
$56.7 million ,61.8% growth over 2019 -
Gross margin was
50.1% in comparison to gross margin of44.3% in 2019 -
Worldwide installed base of Precision Flow Hi-VNI systems grew by
72.8% in 2020
“We are pleased with our progress in 2020, which has positioned us well for continued long-term growth beyond the COVID pandemic. During 2020, we saw increased worldwide awareness of High Velocity Therapy, significant growth in the number of new ED Gold and Silver accounts in the U.S., and
Results for the Three Months Ended December 31, 2020
The following table reflects the Company’s net revenue for the three months ended December 31, 2020 and 2019:
|
|
Three Months Ended December 31, |
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
2020 |
|
|
2019 |
|
|
Change |
|
|||||||||||||||
|
|
(in thousands, except percentages) |
|
|||||||||||||||||||||
|
|
Amount |
|
|
% of Revenue |
|
|
Amount |
|
|
% of Revenue |
|
|
$ |
|
|
% |
|
||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital (product & lease revenue) |
|
$ |
21,582 |
|
|
|
52.8 |
% |
|
$ |
2,920 |
|
|
|
22.4 |
% |
|
$ |
18,662 |
|
|
|
639.1 |
% |
Disposable |
|
|
18,074 |
|
|
|
44.2 |
% |
|
|
9,679 |
|
|
|
74.4 |
% |
|
|
8,395 |
|
|
|
86.7 |
% |
Service and Other |
|
|
1,251 |
|
|
|
3.0 |
% |
|
|
411 |
|
|
|
3.2 |
% |
|
|
840 |
|
|
|
204.4 |
% |
Total net revenue |
|
$ |
40,907 |
|
|
|
100.0 |
% |
|
$ |
13,010 |
|
|
|
100.0 |
% |
|
$ |
27,897 |
|
|
|
214.4 |
% |
Net revenue for the fourth quarter of 2020 was
Revenue information by geography is summarized as follows:
|
|
Three Months Ended December 31, |
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
2020 |
|
|
2019 |
|
|
Change |
|
|||||||||||||||
|
|
(in thousands, except percentages) |
|
|||||||||||||||||||||
|
|
Amount |
|
|
% of Revenue |
|
|
Amount |
|
|
% of Revenue |
|
|
$ |
|
|
% |
|
||||||
United States |
|
$ |
33,612 |
|
|
|
82.2 |
% |
|
$ |
9,821 |
|
|
|
75.5 |
% |
|
$ |
23,791 |
|
|
|
242.2 |
% |
International |
|
|
7,295 |
|
|
|
17.8 |
% |
|
|
3,189 |
|
|
|
24.5 |
% |
|
|
4,106 |
|
|
|
128.8 |
% |
Total net revenue |
|
$ |
40,907 |
|
|
|
100.0 |
% |
|
$ |
13,010 |
|
|
|
100.0 |
% |
|
$ |
27,897 |
|
|
|
214.4 |
% |
Worldwide revenue growth in the fourth quarter of 2020 was driven by an increase in the number of Precision Flow units sold over the prior year period and to a lesser extent an increase in single-use disposable sales due to higher installed bases of Precision Flow units worldwide.
Gross profit for the fourth quarter of 2020 was
Operating expenses were
Net loss for the fourth quarter of 2020 was
Adjusted EBITDA was negative
Results for the Twelve Months Ended December 31, 2020
The following table reflects the Company’s net revenue for the twelve months ended December 31, 2020 and 2019:
|
|
Year Ended December 31, |
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
2020 |
|
|
2019 |
|
|
Change |
|
|||||||||||||||
|
|
(in thousands, except percentages) |
|
|||||||||||||||||||||
|
|
Amount |
|
|
% of Revenue |
|
|
Amount |
|
|
% of Revenue |
|
|
$ |
|
|
% |
|
||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital (product & lease revenue) |
|
$ |
65,964 |
|
|
|
52.5 |
% |
|
$ |
11,045 |
|
|
|
22.9 |
% |
|
$ |
54,919 |
|
|
|
497.2 |
% |
Disposable |
|
|
56,711 |
|
|
|
45.1 |
% |
|
|
35,055 |
|
|
|
72.9 |
% |
|
|
21,656 |
|
|
|
61.8 |
% |
Service and Other |
|
|
3,058 |
|
|
|
2.4 |
% |
|
|
2,004 |
|
|
|
4.2 |
% |
|
|
1,054 |
|
|
|
52.6 |
% |
Total net revenue |
|
$ |
125,733 |
|
|
|
100.0 |
% |
|
$ |
48,104 |
|
|
|
100.0 |
% |
|
$ |
77,629 |
|
|
|
161.4 |
% |
Net revenue for 2020 was
Revenue information by geography is summarized as follows:
|
|
Year Ended December 31, |
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
2020 |
|
|
2019 |
|
|
Change |
|
|||||||||||||||
|
|
(in thousands, except percentages) |
|
|||||||||||||||||||||
|
|
Amount |
|
|
% of Revenue |
|
|
Amount |
|
|
% of Revenue |
|
|
$ |
|
|
% |
|
||||||
United States |
|
$ |
99,161 |
|
|
|
78.9 |
% |
|
$ |
36,583 |
|
|
|
76.0 |
% |
|
$ |
62,578 |
|
|
|
171.1 |
% |
International |
|
|
26,572 |
|
|
|
21.1 |
% |
|
|
11,521 |
|
|
|
24.0 |
% |
|
|
15,051 |
|
|
|
130.6 |
% |
Total net revenue |
|
$ |
125,733 |
|
|
|
100.0 |
% |
|
$ |
48,104 |
|
|
|
100.0 |
% |
|
$ |
77,629 |
|
|
|
161.4 |
% |
Worldwide revenue growth in 2020 was driven by an increase in the number of Precision Flow units sold year over year and to a lesser extent an increase in single-use disposable sales due to higher installed bases of Precision Flow units.
Gross profit for the twelve months of 2020 was
Operating expenses were
Net loss for the year ended December 31, 2020 was
Adjusted EBITDA was negative
Cash Position
Cash and cash equivalents were
Fiscal 2021 Outlook
COVID-19 has driven dramatic increases in our installed base and awareness of the benefits our technology, which will enable us to produce long-term growth post pandemic. Due to the significant and rapid changes in COVID-19 related hospitalizations, forecasting the demand for both our capital and disposables in the near term remains challenging. From an overall business standpoint, we are addressing this variability by positioning ourselves to respond quickly to changes in demand. This was a significant focus during 2020, and we believe we are positioned well to respond quickly to COVID-19 driven increases or decreases in demand. From a financial outlook standpoint, we are providing a range of outcomes based on a set of assumptions derived from the best information available to us at this time.
To start 2021, we saw near peak COVID-19 related hospitalizations across the U.S. and Europe resulting in demand for our capital and disposables at levels we experienced in late 2020. Beginning in mid-January of 2021, we saw a decrease in U.S. hospitalizations from the peak experienced in early January and reduced COVID-19 related demand for our products. In addition, we have not seen meaningful flu related cases or hospitalizations in the U.S. quarter to date which is a trend we expect to continue throughout 2021. Typically, U.S. disposable utilization rates are the highest in the first quarter each year due to the impact of the flu.
Beginning in the second quarter of 2021, we expect that there will be very limited budget dollars available for capital equipment and, as a result, we expect capital sales to decrease significantly year over year given the COVID-19 driven demand we experienced in 2020. In addition, our current expectations are that vaccination efforts will be successful and will result in a declining number of COVID-19 cases and hospitalizations over the last three quarters of the year thereby reducing COVID-19 related demand for our disposables as well. Despite this, we expect that disposables will show year over year growth in the U.S due to an increased installed base and greater awareness of our ability to treat the symptoms of respiratory distress in all patients, including those in Type II respiratory distress. Lastly, given the significant expected year over year decrease in sales and production volumes, especially related to capital equipment, we expect gross margins to decrease in 2021 before improving again in 2022 to levels above 2020.
For fiscal 2021, we expect revenue in the range of
For the first quarter of 2021, we expect revenue in the range of
For fiscal 2021, we expect gross margin to be in the range of
For fiscal 2021, we expect operating expenses to be in the range of
We are still in a highly dynamic environment given the impact of COVID-19 and should our expectations regarding COVID-19 or other aspects of our operating results not play out as anticipated, it could result in materially different financial results than what we are currently expecting.
Conference Call
Management will host a conference call at 4:30 p.m. Eastern Time on February 24th to discuss the results of the quarter and the year with a question and answer session. To listen to the conference call on your telephone, please dial (833) 714-0922 for U.S. callers, or +1 (778) 560-2684 for international callers, approximately ten minutes prior to the start time and reference conference code 5693622. To listen to a live webcast, please visit the Investors section of the Vapotherm website at: http://investors.vapotherm.com/events-and-presentations/events . The webcast replay will be available on the Vapotherm website for 12 months following completion of the call. A replay of this conference call will be available by telephone through March 3, 2021 by dialing (800) 585-8367 in the U.S. or (416) 621-4642 outside of the U.S. The replay access code is 5693622.
Website Information
Vapotherm routinely posts important information for investors on the Investor Relations section of its website, http://investors.vapotherm.com/. Vapotherm intends to use this website as a means of disclosing material, non-public information and for complying with Vapotherm’s disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of Vapotherm’s website, in addition to following Vapotherm’s press releases, Securities and Exchange Commission filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, Vapotherm’s website is not incorporated by reference into, and is not a part of, this document.
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures of EBITDA and Adjusted EBITDA, which differ from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). EBITDA in this press release represents net loss less interest expense, net, taxes and depreciation and amortization. Adjusted EBITDA in this release represents EBITDA as adjusted for the impact of foreign currency loss or gain, stock-based compensation expense, loss on debt extinguishment and gain on legal settlement. The Company has reconciled all historical non-GAAP financial measures with the most directly comparable GAAP financial measures in tables accompanying this release.
These non-GAAP financial measures are presented because the Company believes they are useful indicators of its operating performance. Management uses Adjusted EBITDA principally as a measure of the Company’s operating performance and for planning purposes, including the preparation of the Company’s annual operating budget and financial projections. The Company believes this measure is useful to investors as supplemental information because it is frequently used by analysts, investors and other interested parties to evaluate companies in its industry. The Company believes Adjusted EBITDA is useful to its management and investors as a measure of comparative operating performance from period to period.
These non-GAAP financial measures should not be considered as alternatives to, or superior to, net income or loss as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP. They should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as tax payments, debt service requirements, capital expenditures and certain other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our capital expenditures, cash requirements for working capital needs and cash costs to replace assets being depreciated and amortized. In evaluating Adjusted EBITDA, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in this presentation. The Company’s presentation of Adjusted EBITDA should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using Adjusted EBITDA and other non-GAAP financial measures on a supplemental basis. The Company’s definition of Adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation.
About Vapotherm
Vapotherm, Inc. is a publicly traded developer and manufacturer of advanced respiratory technology based in Exeter, New Hampshire, USA. The Company develops innovative, comfortable, non-invasive technologies for respiratory support of patients with chronic or acute breathing disorders. Over 2.6 million patients have been treated with Vapotherm high velocity therapy. High velocity therapy is mask-free noninvasive ventilatory support for spontaneously breathing patients and is a front-line tool for relieving respiratory distress—including hypercapnia, hypoxemia, and dyspnea. It allows for the fast, safe treatment of undifferentiated respiratory distress with one tool. The Precision Flow system’s mask-free interface delivers optimally conditioned breathing gases, making it comfortable for patients and reducing the risks associated with mask therapies. While being treated, patients can talk, eat, drink and take oral medication. For more information, visit www.vapotherm.com.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements, including statements about our ability to grow our installed base, our ability to educate new customers on the use of Vapotherm’s High Velocity Therapy, especially on hypercapnic patients, increasing our production and our installed base, expanding the limited release of our Oxygen Assist Module, improving our gross margins and expected revenue for the first quarter of 2021 and expected revenue, gross margin and operating expenses for fiscal year 2021. In some cases, you can identify forward-looking statements by terms such as ‘‘expect,’’ “guide” or “typically” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statement. Applicable risks and uncertainties include, but are not limited to the following: Vapotherm has incurred losses in the past and may be unable to achieve or sustain profitability in the future, Vapotherm may need to raise additional capital to fund its existing commercial operations, develop and commercialize new products, and expand its operations, Vapotherm’s dependence on sales generated from its Precision Flow systems, competition from multi-national corporations who have significantly greater resources than Vapotherm and are more established in the respiratory market, the ability for Precision Flow systems to gain increased market acceptance, its inexperience directly marketing and selling its products, the potential loss of one or more suppliers, Vapotherm’s susceptibility to seasonal fluctuations, Vapotherm’s failure to comply with applicable United States and foreign regulatory requirements, the failure to obtain U.S. Food and Drug Administration or other regulatory authorization to market and sell future products or its inability to secure, maintain, or enforce patent or other intellectual property protection for its products, the impact of the COVID-19 pandemic on its business, including its supply chain, and the other risks and uncertainties included under the heading “Risk Factors” in Vapotherm’s Annual Report on Form 10-K for the fiscal year ended December, 31, 2020, as filed with the Securities and Exchange Commission on February 24, 2021, and in any subsequent filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release reflect Vapotherm’s views as of the date hereof, and Vapotherm does not assume and specifically disclaims any obligation to update any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Financial Statements:
VAPOTHERM, INC. |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands, except share amounts) |
||||||||
|
|
December 31, |
|
|||||
|
|
2020 |
|
|
2019 |
|
||
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
113,683 |
|
|
$ |
71,655 |
|
Accounts receivable, net |
|
|
23,488 |
|
|
|
8,243 |
|
Inventories |
|
|
19,873 |
|
|
|
9,137 |
|
Prepaid expenses and other current assets |
|
|
5,041 |
|
|
|
4,066 |
|
Total current assets |
|
|
162,085 |
|
|
|
93,101 |
|
Property and equipment, net |
|
|
20,573 |
|
|
|
15,086 |
|
Operating lease right-of-use assets |
|
|
8,260 |
|
|
|
- |
|
Restricted cash |
|
|
1,853 |
|
|
|
1,852 |
|
Goodwill |
|
|
16,226 |
|
|
|
588 |
|
Intangible assets, net |
|
|
5,694 |
|
|
|
353 |
|
Deferred income tax assets |
|
|
- |
|
|
|
66 |
|
Other long-term assets |
|
|
967 |
|
|
|
844 |
|
Total assets |
|
$ |
215,658 |
|
|
$ |
111,890 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
4,967 |
|
|
$ |
3,375 |
|
Contract liabilities |
|
|
459 |
|
|
|
137 |
|
Accrued expenses and other liabilities |
|
|
36,551 |
|
|
|
9,187 |
|
Short-term line of credit |
|
|
- |
|
|
|
3,491 |
|
Total current liabilities |
|
|
41,977 |
|
|
|
16,190 |
|
Long-term loans payable, net |
|
|
39,653 |
|
|
|
41,787 |
|
Revolving loan facility |
|
|
4,888 |
|
|
|
- |
|
Deferred income tax liabilities |
|
|
6 |
|
|
|
- |
|
Other long-term liabilities |
|
|
15,229 |
|
|
|
174 |
|
Total liabilities |
|
|
101,753 |
|
|
|
58,151 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
|
Preferred stock ($.001 par value) 25,000,000 shares authorized; no shares
|
|
|
- |
|
|
|
- |
|
Common stock ($.001 par value) 175,000,000 shares authorized as of
|
|
|
26 |
|
|
|
21 |
|
Additional paid-in capital |
|
|
430,781 |
|
|
|
319,115 |
|
Accumulated other comprehensive income |
|
|
41 |
|
|
|
44 |
|
Accumulated deficit |
|
|
(316,943 |
) |
|
|
(265,441 |
) |
Total stockholders' equity |
|
|
113,905 |
|
|
|
53,739 |
|
Total liabilities and stockholders’ equity |
|
$ |
215,658 |
|
|
$ |
111,890 |
|
Vapotherm, Inc. |
||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(In thousands, except share and per share amounts) |
||||||||
|
|
Three Months Ended December 31, |
|
|||||
|
|
2020 |
|
|
2019 |
|
||
Net revenue |
|
$ |
40,907 |
|
|
$ |
13,010 |
|
Cost of goods sold |
|
|
20,196 |
|
|
|
7,147 |
|
Gross profit |
|
|
20,711 |
|
|
|
5,863 |
|
Operating expenses |
|
|
|
|
|
|
|
|
Research and development |
|
|
4,954 |
|
|
|
3,656 |
|
Sales and marketing |
|
|
20,958 |
|
|
|
9,903 |
|
General and administrative |
|
|
7,114 |
|
|
|
5,021 |
|
Total operating expenses |
|
|
33,026 |
|
|
|
18,580 |
|
Loss from operations |
|
|
(12,315 |
) |
|
|
(12,717 |
) |
Other (expense) income |
|
|
|
|
|
|
|
|
Foreign currency gain |
|
|
77 |
|
|
|
81 |
|
Interest income |
|
|
30 |
|
|
|
202 |
|
Gain on litigation settlement |
|
|
- |
|
|
|
1,151 |
|
Interest expense |
|
|
(813 |
) |
|
|
(1,313 |
) |
Loss on extinguishment of debt |
|
|
(4,163 |
) |
|
|
- |
|
Net loss before income taxes |
|
$ |
(17,184 |
) |
|
$ |
(12,596 |
) |
Benefit for income taxes |
|
|
- |
|
|
|
(146 |
) |
Net loss |
|
$ |
(17,184 |
) |
|
$ |
(12,450 |
) |
Other comprehensive income |
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
38 |
|
|
|
114 |
|
Total other comprehensive income |
|
$ |
38 |
|
|
|
114 |
|
Total comprehensive loss |
|
$ |
(17,146 |
) |
|
$ |
(12,336 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share - basic and diluted |
|
$ |
(0.67 |
) |
|
$ |
(0.60 |
) |
Weighted-average number of shares used in calculating net loss per share,
|
|
|
25,682,098 |
|
|
|
20,830,169 |
|
Vapotherm, Inc. |
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(In thousands, except share and per share amounts) |
||||||||
|
|
Year Ended December 31, |
|
|||||
|
|
2020 |
|
|
2019 |
|
||
Net revenue |
|
$ |
125,733 |
|
|
$ |
48,104 |
|
Cost of revenue |
|
|
62,687 |
|
|
|
26,793 |
|
Gross profit |
|
|
63,046 |
|
|
|
21,311 |
|
Operating expenses |
|
|
|
|
|
|
|
|
Research and development |
|
|
16,956 |
|
|
|
13,376 |
|
Sales and marketing |
|
|
65,065 |
|
|
|
37,689 |
|
General and administrative |
|
|
24,039 |
|
|
|
18,410 |
|
Total operating expenses |
|
|
106,060 |
|
|
|
69,475 |
|
Loss from operations |
|
|
(43,014 |
) |
|
|
(48,164 |
) |
Other (expense) income |
|
|
|
|
|
|
|
|
Foreign currency gain |
|
|
114 |
|
|
|
44 |
|
Interest income |
|
|
257 |
|
|
|
860 |
|
Gain on litigation settlement |
|
|
15 |
|
|
|
1,151 |
|
Interest expense |
|
|
(4,711 |
) |
|
|
(5,096 |
) |
Loss on extinguishment of debt |
|
|
(4,163 |
) |
|
|
- |
|
Net loss before income taxes |
|
|
(51,502 |
) |
|
|
(51,205 |
) |
Benefit for income taxes |
|
|
- |
|
|
|
(146 |
) |
Net loss |
|
|
(51,502 |
) |
|
|
(51,059 |
) |
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
(3 |
) |
|
|
44 |
|
Total other comprehensive income (loss) |
|
|
(3 |
) |
|
|
44 |
|
Total comprehensive loss |
|
$ |
(51,505 |
) |
|
$ |
(51,015 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share - basic and diluted |
|
$ |
(2.16 |
) |
|
$ |
(2.74 |
) |
Weighted-average number of shares used in calculating net loss per share,
|
|
|
23,818,447 |
|
|
|
18,604,707 |
|
Vapotherm, Inc. |
|
|
|
|||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In thousands) |
||||||||
|
Year Ended December 31, |
|||||||
|
|
2020 |
|
|
2019 |
|
||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(51,502 |
) |
|
$ |
(51,059 |
) |
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
6,430 |
|
|
|
3,836 |
|
Depreciation and amortization |
|
|
4,769 |
|
|
|
3,078 |
|
Loss on extinguishment of debt |
|
|
4,163 |
|
|
|
- |
|
Non-cash lease expense |
|
|
1,140 |
|
|
|
- |
|
Loss on disposal of property and equipment |
|
|
250 |
|
|
|
101 |
|
Amortization of discount on debt |
|
|
222 |
|
|
|
234 |
|
Provision for bad debts |
|
|
72 |
|
|
|
104 |
|
Deferred income taxes |
|
|
70 |
|
|
|
(147 |
) |
Provision for inventory valuation |
|
|
(534 |
) |
|
|
(543 |
) |
Gain on litigation settlement |
|
|
- |
|
|
|
(1,151 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(14,810 |
) |
|
|
(833 |
) |
Inventories |
|
|
(10,157 |
) |
|
|
5,606 |
|
Prepaid expenses and other assets |
|
|
(483 |
) |
|
|
(1,218 |
) |
Accounts payable |
|
|
1,461 |
|
|
|
720 |
|
Contract liabilities |
|
|
322 |
|
|
|
58 |
|
Accrued expenses and other liabilities |
|
|
20,273 |
|
|
|
1,552 |
|
Operating lease liabilities, current and long-term |
|
|
(1,154 |
) |
|
|
- |
|
Net cash used in operating activities |
|
|
(39,468 |
) |
|
|
(39,662 |
) |
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(9,797 |
) |
|
|
(4,747 |
) |
Acquisition of business, net of cash acquired |
|
|
(8,372 |
) |
|
|
(1,560 |
) |
Net cash used in investing activities |
|
|
(18,169 |
) |
|
|
(6,307 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock in connection with public offering, net |
|
|
94,155 |
|
|
|
48,669 |
|
Proceeds from issuance of common stock in connection with at-the-market offering,
|
|
|
9,927 |
|
|
|
- |
|
Proceeds from issuance of common stock under Employee Stock Purchase Plan |
|
|
824 |
|
|
|
- |
|
Proceeds from exercise of stock options and purchase of restricted stock awards |
|
|
593 |
|
|
|
386 |
|
Common stock offering costs |
|
|
(471 |
) |
|
|
(393 |
) |
Proceeds from loans |
|
|
40,000 |
|
|
|
10,500 |
|
Repayment of loans |
|
|
(42,500 |
) |
|
|
- |
|
Payments of debt extinguishment costs |
|
|
(3,765 |
) |
|
|
- |
|
Debt issuance costs |
|
|
(475 |
) |
|
|
(29 |
) |
Proceeds from short-term line of credit and revolving loan facility |
|
|
5,883 |
|
|
|
7,500 |
|
Repayments on short-term line of credit |
|
|
(4,495 |
) |
|
|
(7,184 |
) |
Net cash provided by financing activities |
|
|
99,676 |
|
|
|
59,449 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(10 |
) |
|
|
5 |
|
Net increase in cash, cash equivalents, and restricted cash |
|
|
42,029 |
|
|
|
13,485 |
|
Cash, cash equivalents and restricted cash |
|
|
|
|
|
|
|
|
Beginning of year |
|
|
73,507 |
|
|
|
60,022 |
|
End of year |
|
$ |
115,536 |
|
|
$ |
73,507 |
|
Supplemental disclosures of cash flow information |
|
|
|
|
|
|
|
|
Interest paid during the period |
|
$ |
4,439 |
|
|
$ |
4,793 |
|
Property and equipment purchases in accrued expenses |
|
$ |
145 |
|
|
$ |
135 |
|
Issuance of common stock upon vesting of restricted stock units and awards |
|
$ |
213 |
|
|
$ |
402 |
|
Issuance of warrants in conjunction with debt draw down |
|
$ |
- |
|
|
$ |
293 |
|
Non-GAAP Financial Measures
The following tables contain a reconciliation of net loss to Adjusted EBITDA for the three and twelve months ended December 31, 2020 and 2019, respectively.
|
|
Three Months Ended December 31, |
|
|||||
|
|
Amount |
|
|||||
|
|
2020 |
|
|
2019 |
|
||
|
|
(in thousands) |
|
|||||
Net loss |
|
$ |
(17,184 |
) |
|
$ |
(12,450 |
) |
Interest expense, net |
|
|
783 |
|
|
|
1,111 |
|
Benefit for income taxes |
|
|
- |
|
|
|
(146 |
) |
Depreciation and amortization |
|
|
1,398 |
|
|
|
859 |
|
EBITDA |
|
$ |
(15,003 |
) |
|
$ |
(10,626 |
) |
Foreign currency |
|
|
(77 |
) |
|
|
(81 |
) |
Loss on extinguishment of debt |
|
|
4,163 |
|
|
|
- |
|
Gain on litigation settlement |
|
|
- |
|
|
|
(1,151 |
) |
Stock-based compensation |
|
|
1,850 |
|
|
|
1,081 |
|
Adjusted EBITDA |
|
$ |
(9,067 |
) |
|
$ |
(10,777 |
) |
|
|
Year Ended December 31, |
|
|||||
|
|
Amount |
|
|||||
|
|
2020 |
|
|
2019 |
|
||
|
|
(in thousands) |
|
|||||
Net loss |
|
$ |
(51,502 |
) |
|
$ |
(51,059 |
) |
Interest expense, net |
|
|
4,454 |
|
|
|
4,236 |
|
Benefit for income taxes |
|
|
- |
|
|
|
(146 |
) |
Depreciation and amortization |
|
|
4,769 |
|
|
|
3,078 |
|
EBITDA |
|
$ |
(42,279 |
) |
|
$ |
(43,891 |
) |
Foreign currency |
|
|
(114 |
) |
|
|
(44 |
) |
Loss on extinguishment of debt |
|
|
4,163 |
|
|
|
- |
|
Gain on litigation settlement |
|
|
(15 |
) |
|
|
(1,151 |
) |
Stock based compensation |
|
|
6,430 |
|
|
|
3,836 |
|
Adjusted EBITDA |
|
$ |
(31,815 |
) |
|
$ |
(41,250 |
) |
Supplemental Operating Metrics
|
December 31, |
|
|
|
|
|
|
|
|
|
|||||
|
2020 |
|
|
2019 |
|
|
Change |
|
|||||||
|
Amount |
|
|
Amount |
|
|
Amount |
|
|
% |
|
||||
Precision Flow Units Installed Base |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
19,884 |
|
|
|
11,882 |
|
|
|
8,002 |
|
|
|
67.3 |
% |
International |
|
8,766 |
|
|
|
4,698 |
|
|
|
4,068 |
|
|
|
86.6 |
% |
Total |
|
28,650 |
|
|
|
16,580 |
|
|
|
12,070 |
|
|
|
72.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
|
|
|
|
|
|
|
|||||
|
2020 |
|
|
2019 |
|
|
Change |
|
|||||||
|
Amount |
|
|
Amount |
|
|
Amount |
|
|
% |
|
||||
Precision Flow Units Sold and Leased |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
2,406 |
|
|
|
353 |
|
|
|
2,053 |
|
|
|
581.6 |
% |
International |
|
1,114 |
|
|
|
251 |
|
|
|
863 |
|
|
|
343.8 |
% |
Total |
|
3,520 |
|
|
|
604 |
|
|
|
2,916 |
|
|
|
482.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposable Patient Circuits Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
136,106 |
|
|
|
73,276 |
|
|
|
62,830 |
|
|
|
85.7 |
% |
International |
|
40,386 |
|
|
|
22,975 |
|
|
|
17,411 |
|
|
|
75.8 |
% |
Total |
|
176,492 |
|
|
|
96,251 |
|
|
|
80,241 |
|
|
|
83.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
|
|
|
|||||
|
2020 |
|
|
2019 |
|
|
Change |
|
|||||||
|
Amount |
|
|
Amount |
|
|
Amount |
|
|
% |
|
||||
Precision Flow Units Sold and Leased |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
7,706 |
|
|
|
1,311 |
|
|
|
6,395 |
|
|
|
487.8 |
% |
International |
|
3,475 |
|
|
|
843 |
|
|
|
2,632 |
|
|
|
312.2 |
% |
Total |
|
11,181 |
|
|
|
2,154 |
|
|
|
9,027 |
|
|
|
419.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposable Patient Circuits Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
414,068 |
|
|
|
263,092 |
|
|
|
150,976 |
|
|
|
57.4 |
% |
International |
|
157,173 |
|
|
|
88,944 |
|
|
|
68,229 |
|
|
|
76.7 |
% |
Total |
|
571,241 |
|
|
|
352,036 |
|
|
|
219,205 |
|
|
|
62.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210224005370/en/
FAQ
What were Vapotherm's revenue results for Q4 2020?
How much did Vapotherm grow in fiscal year 2020?
What is Vapotherm's expected revenue for fiscal year 2021?
What was Vapotherm's gross margin in Q4 2020?
What was Vapotherm's net loss for fiscal year 2020?
