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8-K - FORM 8-K - INSULET CORP | b88859e8vk.htm |
Exhibit 99.1
INSULET REPORTS THIRD QUARTER 2011 RESULTS
Revenue Increases 75% Year over Year
Gross Profit Increases by 60% Year over Year
BEDFORD, MA, November 3, 2011 Insulet Corporation (NASDAQ: PODD), the leader in tubeless insulin
pump technology with its OmniPod® Insulin Management System, today announced financial results for
the three and nine months ended September 30, 2011.
Third quarter 2011 revenue increased 75% to $44.6 million, compared to $25.5 million in the third
quarter of 2010. Gross profit for the third quarter of 2011 improved by 60% to $18.6 million, as
compared to a gross profit of $11.6 million, for the third quarter of 2010. The increase in gross
profit is primarily due to the acquisition of Neighborhood Diabetes in addition to the year over
year growth in our customer base. The financial position and results of operations of Neighborhood
Diabetes have been included in the Companys financial results since the acquisition date of June
1, 2011.
Operating loss for the third quarter of 2011 was $9.8 million, compared to an operating loss of
$8.3 million in the third quarter of 2010. The change in operating loss was primarily due to
increased gross profit of $7.0 million offset by approximately $8.5 million of incremental
operating expenses. These incremental operating expenses include a full quarter of Neighborhood
Diabetes activity, the amortization of acquired intangible assets and incremental R&D expenses.
Demand for the OmniPod insulin pump continued to grow in the third quarter, both in the U.S. and
abroad, said Duane DeSisto, President and Chief Executive Officer of Insulet. In addition to
increased traction by our U.S. salesforce, our international partners continue to drive growth,
including in Canada, where the OmniPod was launched in September. We are working diligently with
the FDA to obtain clearance for the next generation OmniPod in the coming months. The smaller,
lighter OmniPod will be another advance in our mission to improve the lives of people with
diabetes.
Net loss for the third quarter of 2011 was $13.6 million, or $0.29 per share, compared to a net
loss of $12.1 million, or $0.30 per share, for the third quarter of 2010.
Mr. DeSisto continued, Neighborhood Diabetes is proving to be a great strategic fit for Insulet.
As a key distributor for diabetes products, the business complements sales of the OmniPod insulin
pump with an expanded product offering and brings a higher level of customer service to our
approximately 90,000 combined customers.
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For the nine months ended September 30, 2011, revenue increased 52% to $105.1 million from $69.2
million for the first nine months of 2010. Gross profit for the first nine months of
2011 was $46.6 million, or a 44% gross margin, as compared to a gross profit of $29.9 million, or a
43% gross margin, in the first nine months of 2010. Operating loss for the first nine months ended
September 30, 2011 was $32.0 million as compared to an operating loss of $28.9 million in the first
nine months ended September 30, 2010. Net loss for the first nine months of 2011 was $42.8
million, or $0.92 per share, compared to $40.3 million, or $1.04 per share, for the first nine
months of 2010.
As of September 30, 2011, the Company had cash and cash equivalents of $103.8 million compared to
$113.3 million at December 31, 2010 and $106.7 million at June 30, 2011.
Guidance
The Company is updating its estimate for full year 2011 revenues to be in the range of $150 to $154
million primarily reflecting a planned first quarter 2012 launch of the next generation OmniPod in
Europe. The Company expects an operating loss of $39 to $42 million for the full year 2011.
Conference Call
Insulet will host a conference call on Thursday, November 3, 2011 at 5:00PM Eastern time to discuss
the Companys third quarter 2011 results and present information concerning its business,
strategies and outlook. To listen to the conference call, please dial (877) 300-1783 for domestic
callers and (832) 412-1780 for international callers. The passcode is 22374966. A replay of the
conference call will be available two hours after the start of the call through November 10, 2011
by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international), passcode 22374966. An
online archive of the conference call will also be available by accessing the Investor Information
section of the companys website at
http://investors.insulet.com.
About Insulet Corporation
Insulet Corporation is an innovative medical device company dedicated to making the lives of people
with diabetes easier. Through its OmniPod Insulin Management System, Insulet seeks to expand the
use of insulin pump therapy among people with insulin-dependent diabetes. The OmniPod is a
revolutionary and easy-to-use tubeless insulin pump that features just two parts and
fully-automated cannula insertion. Founded in 2000, Insulet Corporation is based in Bedford, Mass.
For more information, please visit: http://www.myomnipod.com.
Forward-Looking Statement
The 2011 financial results contained in this news release are subject to finalization in connection
with the preparation of the Companys Quarterly Report on Form 10-Q for the quarter ended September
30, 2011. This press release contains forward-looking statements concerning Insulets expectations,
anticipations, intentions, beliefs or strategies regarding the future, including those related to
its expected revenue and operating losses, the integration and future operations of the
recently-acquired Neighborhood Diabetes business, planned expansion in the U.S. and abroad,
particularly with respect to its agreement with Ypsomed, product demand, the impact of the OmniPod
System on the insulin pump market, regulatory matters and financial performance. These
forward-looking statements are based on its current expectations and beliefs concerning future
developments and their potential effects on it. There can be no assurance that future developments
affecting it will be those that it has anticipated. These forward-looking statements
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involve a
number of risks, uncertainties (some of which are beyond its control) or other assumptions that may
cause actual results or performance to be materially different from those expressed or implied by
these forward-looking statements. These risks and uncertainties include, but are not limited to:
risks associated
with the Companys dependence on the OmniPod System; Insulets ability to increase customer orders
and manufacturing volumes; adverse changes in general economic conditions; impact of healthcare
reform legislation; Insulets inability to raise additional funds in the future on acceptable terms
or at all; potential supply problems or price fluctuations with sole source or other third-party
suppliers on which Insulet is dependent; international business risks; Insulets inability to
obtain adequate coverage or reimbursement from third-party payors for the OmniPod System and
potential adverse changes in reimbursement rates or policies relating to the OmniPod; potential
adverse effects resulting from competition with competitors; technological innovations adversely
affecting the Companys business; potential termination of Insulets license to incorporate a blood
glucose meter into the OmniPod System; Insulets ability to protect its intellectual property and
other proprietary rights; conflicts with the intellectual property of third parties, including
claims that Insulets current or future products infringe the proprietary rights of others; adverse
regulatory or legal actions relating to the OmniPod System; failure to obtain timely regulatory
approval for the sale of the next generation OmniPod System; failure of Insulets contract
manufacturers or component suppliers to comply with FDAs quality system regulations, the potential
violation of federal or state laws prohibiting kickbacks or protecting patient health
information, or any challenges to or investigations into Insulets practices under these laws;
product liability lawsuits that may be brought against Insulet; reduced retention rates;
unfavorable results of clinical studies relating to the OmniPod System or the products of Insulets
competitors; potential future publication of articles or announcement of positions by physician
associations or other organizations that are unfavorable to Insulets products; the expansion, or
attempted expansion, into foreign markets; the concentration of substantially all of Insulets
manufacturing capacity at a single location in China and substantially all of Insulets inventory
at a single location in Massachusetts; Insulets ability to attract and retain key personnel;
Insulets ability to manage its growth; failure to integrate successfully the Neighborhood Diabetes
business; intense competition among distributors of diabetes supplies impairing Neighborhood
Diabetes business; loss by Neighborhood Diabetes of an opportunity to sell insulin pumps supplied
by Insulets competitors; failure by Neighborhood Diabetes to retain key supplier and payor
partners; failure by Neighborhood Diabetes to retain supplier pricing discounts and achieve
satisfactory gross margins; failure by Neighborhood Diabetes to retain and manage successfully its
Medicare and Medicaid business; existence of unanticipated liabilities arising in connection with
the Neighborhood Diabetes business; fluctuations in quarterly results of operations; risks
associated with potential future acquisitions; Insulets ability to generate sufficient cash to
service all of its indebtedness; the expansion of Insulets distribution network; Insulets ability
to successfully maintain effective internal controls; and other risks and uncertainties described
in its Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on
March 10, 2011 in the section entitled Risk Factors, and in its
other filings from time to time
with the Securities and Exchange Commission. Should one or more of these risks or uncertainties
materialize, or should any of its assumptions prove incorrect, actual results may vary in material
respects from those projected in these forward-looking statements. Insulet undertakes no obligation
to publicly update or revise any forward-looking statements.
Contact:
Stephanie Marks for Insulet Corporation
ir@insulet.com
877-PODD-IR1 (877-763-3471)
Stephanie Marks for Insulet Corporation
ir@insulet.com
877-PODD-IR1 (877-763-3471)
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INSULET CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||
Revenue |
$ | 44,594 | $ | 25,455 | $ | 105,063 | $ | 69,199 | ||||||||
Cost of revenue |
26,033 | 13,826 | 58,431 | 39,299 | ||||||||||||
Gross profit |
18,561 | 11,629 | 46,632 | 29,900 | ||||||||||||
Operating expenses: |
||||||||||||||||
Research and
development |
4,638 | 3,698 | 16,059 | 12,128 | ||||||||||||
General and
administrative |
11,379 | 7,230 | 31,585 | 20,379 | ||||||||||||
Sales and
marketing |
12,312 | 8,979 | 30,943 | 26,301 | ||||||||||||
Total
operating
expenses |
28,329 | 19,907 | 78,587 | 58,808 | ||||||||||||
Operating loss |
(9,768 | ) | (8,278 | ) | (31,955 | ) | (28,908 | ) | ||||||||
Other expense, net |
(3,794 | ) | (3,822 | ) | (10,876 | ) | (11,393 | ) | ||||||||
Net loss |
$ | (13,562 | ) | $ | (12,100 | ) | $ | (42,831 | ) | $ | (40,301 | ) | ||||
Net loss per share
basic and diluted |
$ | (0.29 | ) | $ | (0.30 | ) | $ | (0.92 | ) | $ | (1.04 | ) | ||||
Weighted average
number of shares
used in calculating
basic and diluted
net loss per share |
47,321,989 | 40,155,277 | 46,442,236 | 38,784,692 | ||||||||||||
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INSULET CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
CONDENSED CONSOLIDATED BALANCE SHEET
As of | As of | |||||||
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
(In thousands, except share data) | ||||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 103,812 | $ | 113,274 | ||||
Accounts receivable, net |
17,269 | 16,841 | ||||||
Inventories |
13,123 | 11,430 | ||||||
Prepaid expenses and other current assets |
3,653 | 912 | ||||||
Total current assets |
137,857 | 142,457 | ||||||
Property and equipment, net |
18,295 | 12,522 | ||||||
Intangible assets, net |
30,673 | | ||||||
Goodwill |
26,164 | | ||||||
Other assets |
2,791 | 1,254 | ||||||
Total assets |
$ | 215,780 | $ | 156,233 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current Liabilities |
||||||||
Accounts payable |
$ | 8,604 | $ | 4,895 | ||||
Accrued expenses |
12,762 | 9,808 | ||||||
Deferred revenue |
2,193 | 4,247 | ||||||
Other current liabilities |
1,202 | | ||||||
Total current liabilities |
24,761 | 18,950 | ||||||
Long-term debt |
106,319 | 69,433 | ||||||
Other long-term liabilities |
1,260 | 1,619 | ||||||
Total liabilities |
132,340 | 90,002 | ||||||
Stockholders Equity |
||||||||
Preferred stock, $.001 par value: |
||||||||
Authorized: 5,000,000 shares at
September 30, 2011
and December 31,
2010. Issued and
outstanding: zero
shares at September
30, 2011 and
December 31, 2010,
respectively |
| | ||||||
Common stock, $.001 par value: |
||||||||
Authorized: 100,000,000 shares
at September 30,
2011 and December
31, 2010. Issued
and outstanding: 47,386,448 and
45,440,839 shares at
September 30, 2011
and December 31,
2010, respectively |
47 | 45 | ||||||
Additional paid-in capital |
510,077 | 450,039 | ||||||
Accumulated deficit |
(426,684 | ) | (383,853 | ) | ||||
Total stockholders equity |
83,440 | 66,231 | ||||||
Total liabilities and
stockholders equity |
$ | 215,780 | $ | 156,233 | ||||
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