Vericel Reports Fourth Quarter and Full-Year 2021 Financial Results and Provides Full-Year 2022 Financial Guidance
Vericel Corporation (NASDAQ:VCEL) reported a 26% revenue growth in 2021, achieving total net revenue of $156.2 million. For Q4 2021, net revenue was $47.6 million, a 5% increase year-over-year. While MACI revenue reached $111.6 million and Epicel revenue hit $41.5 million, the company reported a net loss of $7.5 million for the year. Looking ahead, Vericel anticipates 2022 revenues between $178 million and $189 million with a gross margin of approximately 70%. A conference call is scheduled for today at 8:30 AM ET.
- 2021 total revenue increased 26% year-over-year.
- Record quarterly revenue for MACI in Q4 2021.
- 51% growth in Epicel revenue year-over-year.
- No debt with approximately $129 million in cash and investments.
- Net loss of $7.5 million for 2021, compared to net income of $2.9 million in 2020.
- Decrease in net income per share from $0.25 to $0.09 in Q4 2021.
- Operating expenses increased to $113.9 million in 2021 from $81.9 million in 2020.
Full-Year 2021 Total Revenue Growth of
Full-Year 2022 Total Revenue Guidance of
Conference Call Today at 8:30am Eastern Time
CAMBRIDGE, Mass., Feb. 24, 2022 (GLOBE NEWSWIRE) -- Vericel Corporation (NASDAQ:VCEL), a leader in advanced therapies for the sports medicine and severe burn care markets, today reported financial results and business highlights for the fourth quarter and year ended December 31, 2021, and provided full-year 2022 financial guidance.
Fourth Quarter 2021 Financial Highlights
- Total net revenue of
$47.6 million , compared to$45.2 million in the fourth quarter of 2020 - MACI® net revenue of
$37.3 million , Epicel® net revenue of$9.7 million , and NexoBrid® revenue of$0.5 million related to the U.S. Biomedical Advanced Research and Development Authority (BARDA) procurement for emergency response preparedness - Gross margin of
72% , compared to74% in the fourth quarter of 2020 - Net income of
$4.5 million , or$0.09 per share, compared to$12.2 million , or$0.25 per share, in the fourth quarter of 2020 - Non-GAAP adjusted EBITDA of
$12.8 million , compared to$16.0 million in the fourth quarter of 2020 - Operating cash flow of
$10.6 million
Full Year 2021 Financial Highlights
- Total net revenue of
$156.2 million , compared to$124.2 million in 2020 - MACI net revenue of
$111.6 million , Epicel net revenue of$41.5 million , and NexoBrid revenue of$3.1 million related to BARDA procurement for emergency response preparedness - Gross margin of
68% , compared to gross margin of68% in 2020 - Net loss of
$7.5 million , or$0.16 per share, compared to net income of$2.9 million , or$0.06 per share, in 2020 - Non-GAAP adjusted EBITDA of
$29.5 million , compared to$18.6 million in 2020 - Operating cash flow of
$29.0 million - As of December 31, 2021, the Company had approximately
$129 million in cash and investments, compared to$100 million as of December 31, 2020, and no debt
Business Highlights and Updates
- Total net revenue growth of
26% for 2021, in line with the Company’s compounded annual revenue growth rate since the launch of MACI in 2017 - Full-year net revenue growth of
18% for MACI, achieving record quarterly revenue in the fourth quarter - Full-year net revenue growth of
51% for Epicel and the fifth straight quarter with revenue over$9.5 million - Achieved
20% growth in surgeons taking MACI biopsies and30% growth in MACI biopsies for the year, with a record quarterly high in the number of biopsies and the number of surgeons taking biopsies in the fourth quarter - Achieved over
30% growth in Epicel biopsies and burn centers treating patients with Epicel compared to 2020 - Announced plans for a new state-of-the-art cell therapy manufacturing facility and corporate headquarters to support long-term growth
“We delivered another strong year of revenue growth and generated record adjusted EBITDA and operating cash flow to end the year in a very strong financial position,” said Nick Colangelo, President and CEO of Vericel. “The Company continues to execute very well across all areas of the business, generating record revenue and biopsies for MACI in the fourth quarter and driving over
2022 Financial Guidance
- Total net revenue for 2022 expected to be in the range of
$178 t o$189 million - MACI revenue expected to be in the range of
$132 t o$141 million - Epicel revenue expected to be in the range of
$45.5 t o$47.5 million
- MACI revenue expected to be in the range of
- Gross margin expected to be approximately
70% - Adjusted EBITDA margin expected to be approximately
21%
Fourth Quarter 2021 Results
Total net revenue for the quarter ended December 31, 2021 increased
Gross profit for the quarter ended December 31, 2021 was
Total operating expenses for the quarter ended December 31, 2021 were
Net income for the quarter ended December 31, 2021 was
Non-GAAP adjusted EBITDA for the quarter ended December 31, 2021 was
Full-Year 2021 Results
Total net revenue for the year ended December 31, 2021 increased
Gross profit for the year ended December 31, 2021 was
Total operating expenses for the year ended December 31, 2021 were
Net loss for the year ended December 31, 2021 was
Non-GAAP adjusted EBITDA for the year ended December 31, 2021 was
As of December 31, 2021, the Company had approximately
Conference Call Information
Today’s conference call will be available live at 8:30am Eastern Time and can be accessed through the Investor Relations section of the Vericel website at http://investors.vcel.com/events-presentations. A slide presentation with highlights from today’s conference call will be available on the webcast and in the Investor Relations section of the Vericel website. Please access the site at least 15 minutes prior to the scheduled start time in order to download the required audio software, if necessary. To participate in the live call by telephone, please call (877) 312-5881 and reference Vericel Corporation’s fourth quarter 2021 investor conference call. If calling from outside the U.S., please use the international phone number (253) 237-1173.
If you are unable to participate in the live call, the webcast will be available at http://investors.vcel.com/events-presentations until February 24, 2023. A replay of the call will also be available until 11:30am (EDT) on February 28, 2022 by calling (855) 859-2056, or from outside the U.S. by calling (404) 537-3406. The conference ID is 5795764.
About Vericel Corporation
Vericel is a leader in advanced therapies for the sports medicine and severe burn care markets. The Company markets two cell therapy products in the United States. MACI (autologous cultured chondrocytes on porcine collagen membrane) is an autologous cellularized scaffold product indicated for the repair of symptomatic, single or multiple full-thickness cartilage defects of the knee with or without bone involvement in adults. Epicel (cultured epidermal autografts) is a permanent skin replacement for the treatment of patients with deep-dermal or full-thickness burns greater than or equal to
GAAP v. Non-GAAP Measures
Vericel’s reported earnings are prepared in accordance with generally accepted accounting principles in the United States, or GAAP, and represent earnings as reported to the Securities and Exchange Commission. Vericel has provided in this release certain financial information that has not been prepared in accordance with GAAP. Vericel’s management believes that the non-GAAP adjusted EBITDA described in the release, which includes adjustments for specific items that are generally not indicative of our core operations, provides additional information that is useful to investors in understanding Vericel’s underlying performance, business and performance trends, and helps facilitate period-to-period comparisons and comparisons of its financial measures with other companies in Vericel’s industry. However, the non-GAAP financial measures that Vericel uses may differ from measures that other companies may use. Non-GAAP financial measures are not required to be uniformly applied, are not audited and should not be considered in isolation or as substitutes for results prepared in accordance with GAAP.
Epicel® and MACI® are registered trademarks of Vericel Corporation. NexoBrid® is a registered trademark of MediWound Ltd. (MediWound) and is used under license to Vericel Corporation. © 2022 Vericel Corporation. All rights reserved.
Forward-Looking Statements
Vericel cautions you that all statements other than statements of historical fact included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe that we have a reasonable basis for the forward-looking statements contained herein, they are based on current expectations about future events affecting us and are subject to risks, assumptions, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Our actual results may differ materially from those expressed or implied by the forward-looking statements in this press release. These statements are often, but are not always, made through the use of words or phrases such as “anticipates,” “intends,” “estimates,” “plans,” “expects,” “continues,” “believe,” “guidance,” “outlook,” “target,” “future,” “potential,” “goals” and similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” or similar expressions.
Among the factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to, uncertainties associated with our expectations regarding future revenue, growth in revenue, market penetration for MACI and Epicel, growth in profit, gross margins and operating margins, the ability to achieve or sustain profitability, contributions to adjusted EBITDA, the expected target surgeon audience, potential fluctuations in sales and volumes and our results of operations over the course of the year, timing and conduct of clinical trial and product development activities, timing of the resubmission to the Food & Drug Administration (FDA) of a Biologics License Application (BLA) for NexoBrid seeking approval for the treatment of severe burns in the United States following MediWound’s receipt of a complete response letter on June 28, 2021, timing or likelihood of approval by the FDA of the NexoBrid BLA resubmission, the estimate of the commercial growth potential of our products and product candidates, availability of funding from BARDA under its agreement with MediWound for use in connection with NexoBrid development activities, competitive developments, changes in third-party coverage and reimbursement, our ability to supply or meet customer demand for our products, and the ongoing impacts of the COVID-19 pandemic on our business or the economy generally.
With respect to COVID-19, we are currently unable to predict whether the recent spread of the COVID-19 Delta and Omicron variants or a future resurgence of COVID-19 infections that may limit the effectiveness of approved vaccines will result in future restrictions on the performance of elective surgical procedures or affect the availability of physicians and/or their treatment prioritizations, cause healthcare facility staffing shortages, effect the willingness or ability of patients to seek treatment, or heighten the impact of the outbreak on the overall healthcare infrastructure. Other disruptions or potential disruptions include restrictions on the ability of Company personnel to travel and access customers for training, promotion and case support, delays in product development efforts, and additional government-imposed quarantines and requirements to “shelter at home” or other incremental mitigation efforts or initiatives that may impact our ability to source supplies for our operations or our ability or capacity to manufacture, sell and support the use of our products. With respect to NexoBrid, the COVID-19 pandemic may impact the FDA’s response times to future regulatory submissions, its ability to monitor our clinical trials, and/or conduct necessary reviews or inspections of manufacturing facilities involved in the production of NexoBrid, any or all of which may result in timelines being materially delayed, which could affect the development and ultimate commercialization of NexoBrid. The total impact of these disruptions could have a material impact on the Company’s financial condition, cash flows and results of operations.
These and other significant factors are discussed in greater detail in Vericel’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (SEC) on February 24, 2022, and in other filings with the SEC. These forward-looking statements reflect our views as of the date hereof and Vericel does not assume and specifically disclaims any obligation to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this release except as required by law.
Investor Contact:
Eric Burns
ir@vcel.com
+1 (734) 418-4411
VERICEL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, amounts in thousands, except per share amounts)
| Three Months Ended December 31, 2021 | Twelve Months Ended December 31, 2021 | |||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Product sales, net | 47,050 | 44,256 | 153,075 | 121,968 | ||||||||
| Other revenue | 541 | 973 | 3,109 | 2,211 | ||||||||
| Total revenue | 47,591 | 45,229 | 156,184 | 124,179 | ||||||||
| Cost of product sales | 13,559 | 11,582 | 50,159 | 39,951 | ||||||||
| Gross profit | 34,032 | 33,647 | 106,025 | 84,228 | ||||||||
| Research and development | 3,924 | 3,118 | 16,287 | 13,020 | ||||||||
| Selling, general and administrative | 25,967 | 18,240 | 97,592 | 68,836 | ||||||||
| Total operating expenses | 29,891 | 21,358 | 113,879 | 81,856 | ||||||||
| Income (loss) from operations | 4,141 | 12,289 | (7,854 | ) | 2,372 | |||||||
| Other income (expense): | ||||||||||||
| Interest income | 61 | 117 | 224 | 691 | ||||||||
| Interest expense | (1 | ) | (1 | ) | (4 | ) | (6 | ) | ||||
| Other income (expense) | 8 | (5 | ) | 52 | (13 | ) | ||||||
| Total other income (expense) | 68 | 111 | 272 | 672 | ||||||||
| Income (loss) before income taxes | 4,209 | 12,400 | (7,582 | ) | 3,044 | |||||||
| Income tax (benefit) expense | (326 | ) | 180 | (111 | ) | 180 | ||||||
| Net income (loss) | 4,535 | 12,220 | (7,471 | ) | 2,864 | |||||||
| Net income (loss) per common share: | ||||||||||||
| Basic | 0.10 | 0.27 | (0.16 | ) | 0.06 | |||||||
| Diluted | 0.09 | 0.25 | (0.16 | ) | 0.06 | |||||||
| Weighted-average common shares outstanding: | ||||||||||||
| Basic | 46,821 | 45,545 | 46,472 | 45,221 | ||||||||
| Diluted | 49,939 | 48,101 | 46,472 | 47,282 | ||||||||
| RECONCILIATION OF REPORTED NET INCOME (LOSS) (GAAP) TO ADJUSTED EBITDA (NON-GAAP MEASURE) - UNAUDITED | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| (In thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net income (loss) | $ | 4,535 | $ | 12,220 | $ | (7,471 | ) | $ | 2,864 | |||||||
| Stock-based compensation expense | 7,841 | 3,024 | 34,322 | 13,843 | ||||||||||||
| Depreciation and amortization | 780 | 734 | 2,965 | 2,383 | ||||||||||||
| Net interest income | (60 | ) | (116 | ) | (220 | ) | (685 | ) | ||||||||
| Income tax (benefit) expense | (326 | ) | 180 | (111 | ) | 180 | ||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 12,770 | $ | 16,042 | $ | 29,485 | $ | 18,585 | ||||||||
VERICEL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, amounts in thousands)
| December 31, | ||||||
| 2021 | 2020 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 68,330 | $ | 33,620 | ||
| Short-term investments | 35,068 | 42,187 | ||||
| Accounts receivable (net of allowance for doubtful accounts of | 37,437 | 34,504 | ||||
| Inventory | 13,381 | 9,356 | ||||
| Other current assets | 4,246 | 3,893 | ||||
| Total current assets | 158,462 | 123,560 | ||||
| Property and equipment, net | 13,308 | 7,633 | ||||
| Restricted cash | 211 | 211 | ||||
| Right-of-use assets | 45,720 | 50,105 | ||||
| Long-term investments | 25,687 | 24,099 | ||||
| Other long-term assets | 317 | — | ||||
| Total assets | $ | 243,705 | $ | 205,608 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 9,016 | $ | 6,755 | ||
| Accrued expenses | 14,045 | 11,293 | ||||
| Current portion of operating lease liabilities | 2,950 | 4,394 | ||||
| Other current liabilities | 41 | 41 | ||||
| Total current liabilities | 26,052 | 22,483 | ||||
| Operating lease liabilities | 47,147 | 48,789 | ||||
| Other long-term liabilities | 44 | 76 | ||||
| Total liabilities | 73,243 | 71,348 | ||||
| Total shareholders’ equity | 170,462 | 134,260 | ||||
| Total liabilities and shareholders’ equity | $ | 243,705 | $ | 205,608 | ||
FAQ
What were Vericel's Q4 2021 results for revenue and earnings?
What is Vericel's revenue guidance for 2022?
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What was Vericel's overall revenue growth for 2021?
