EX-99.1 2 pen-93016exhibit991.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
image1a02.jpg
Penumbra, Inc. Reports Third Quarter 2016 Financial Results

ALAMEDA, Calif., November 3, 2016 (PR Newswire) - Penumbra, Inc. (NYSE: PEN), a global interventional therapies company, today reported financial results for the third quarter ended September 30, 2016.


•
Revenue of $67.2 million in the third quarter of 2016, an increase of 33.3%, or 32.5% in constant currency1, over the third quarter of 2015.

Third Quarter 2016 Financial Results
Total revenue grew to $67.2 million for the third quarter of 2016 compared to $50.4 million for the third quarter of 2015, an increase of 33.3%, or 32.5% on a constant currency basis. The U.S. represented 66.1% of total revenue and international represented 33.9% of total revenue for the third quarter of 2016. Revenue from sales of neuro products grew to $47.5 million for the third quarter of 2016, an increase of 30.9%, or 29.9% on a constant currency basis. Revenue from sales of peripheral vascular products grew to $19.7 million for the third quarter of 2016, an increase of 39.3%, or 39.4% on a constant currency basis.

Gross profit was $42.9 million, or 63.8% of total revenue, for the third quarter of 2016, compared to $33.5 million, or 66.4% of total revenue, for the third quarter of 2015.

Total operating expenses were $44.2 million, or 65.8% of total revenue, for the third quarter of 2016, compared to $31.3 million, or 62.1% of total revenue, for the third quarter of 2015. R&D expenses were $6.5 million for the third quarter of 2016, compared to $4.6 million for the third quarter of 2015. SG&A expenses were $37.7 million for the third quarter of 2016, compared to $26.8 million for the third quarter of 2015.
    
Net loss for the third quarter of 2016 was $1.1 million, compared to net income of $0.9 million for the third quarter of 2015.

As of September 30, 2016, cash and cash equivalents and marketable investments totaled $141.8 million.

Webcast and Conference Call Information
Penumbra, Inc. will host a conference call to discuss the third quarter 2016 financial results after market close on Thursday, November 3, 2016 at 5:00 PM Eastern Time. The conference call can be accessed live over the phone by dialing (877) 201-0168 for domestic callers or (647) 788-4901 for international callers (conference id: 92689865), or the webcast can be accessed on the “Investors” section of the Company’s website at: www.penumbrainc.com. The webcast will be available on the Company’s website for two weeks following the completion of the call.

About Penumbra
Penumbra, Inc., headquartered in Alameda, California, is a global interventional therapies company that designs, develops, manufactures and markets innovative medical devices. The company has a broad portfolio of products that address challenging medical conditions and significant clinical needs across two major markets, neuro and peripheral vascular. Penumbra sells its products to hospitals primarily through its direct sales organization in the U.S., most of Europe, Canada and Australia, and through distributors in select international markets. Penumbra and the Penumbra logo are trademarks of Penumbra, Inc.

Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company has disclosed the non-GAAP financial measure relating to constant currency revenue in this press release.
 


 
1 Constant currency results are non-GAAP financial measures. Please refer to “Non-GAAP Financial Measures” for important information about our use of constant currency results, including reconciliations to the most comparable GAAP measures.
1



Our constant currency revenue disclosures estimate the impact of changes in foreign currency rates on the translation of the Company’s current period revenue as compared to the applicable comparable period in the prior year. This impact is derived by taking the current local currency revenue and translating it into U.S. Dollars based upon the foreign currency exchange rates used to translate the local currency revenue for the applicable comparable period in the prior year, rather than the actual exchange rates in effect during the current period. It does not include any other effect of changes in foreign currency rates on the Company’s results or business.

Full reconciliation of this non-GAAP measure to the most comparable GAAP measures is set forth in the tables below.

Our management believes the non-GAAP financial measure disclosed in this press release is useful to investors in assessing the operating performance of our business and provides a meaningful comparison to prior periods and thus a more complete understanding of our business than could be obtained absent this disclosure. Specifically, we consider the change in constant currency revenue as a useful metric as it provides an alternative framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations.

The non-GAAP financial measure included in this press release may be different from, and therefore may not be comparable to, similarly titled measures used by other companies. Non-GAAP measures should not be considered in isolation or as alternatives to GAAP measures. We urge investors to review the reconciliation of the non-GAAP financial measure to the comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate our business.

Forward-Looking Statements
Except for historical information, certain statements in this press release are forward-looking in nature and are subject to risks, uncertainties and assumptions about us. Our business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may differ materially from those projected by any forward-looking statements. Factors that could cause actual results to differ from those projected include, but are not limited to: failure to sustain or grow profitability or generate positive cash flows; failure to effectively introduce and market new products; delays in product introductions; significant competition; inability to further penetrate our current customer base, expand our user base and increase the frequency of use of our products by our customers; inability to achieve or maintain satisfactory pricing and margins; manufacturing difficulties; permanent write-downs or write-offs of our inventory; product defects or failures; unfavorable outcomes in clinical trials; inability to maintain our culture as we grow; fluctuations in foreign currency exchange rates; and potential adverse regulatory actions. These risks and uncertainties, as well as others, are discussed in greater detail in our filings with the Securities and Exchange Commission, including our Annual Report Form 10-K for the year ended December 31, 2015 filed with the SEC on March 8, 2016. There may be additional risks of which we are not presently aware or that we currently believe are immaterial which could have an adverse impact on our business. Any forward-looking statements are based on our current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. We make no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change.











2


Penumbra, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
 
 
September 30,
2016
 
December 31,
2015
Assets
 
 
 
 
Current assets:
 
 
 
 
     Cash and cash equivalents
 
$
15,856

 
$
19,547

     Marketable investments
 
125,975

 
129,257

Accounts receivable, net
 
36,635

 
29,444

     Inventories
 
70,092

 
56,761

     Prepaid expenses and other current assets
 
18,665

 
9,352

          Total current assets
 
267,223

 
244,361

Property and Equipment, net
 
16,224

 
8,951

Deferred taxes
 
13,394

 
10,143

Other non-current assets
 
438

 
393

         Total assets
 
$
297,279

 
$
263,848

Liabilities and Stockholders’ Equity
 
 
 
 
Current Liabilities:
 
 
 
 
     Accounts payable
 
$
3,584

 
$
2,567

     Accrued liabilities
 
33,760

 
25,581

          Total current liabilities
 
37,344

 
28,148

Other non-current liabilities
 
6,081

 
3,178

          Total liabilities
 
43,425

 
31,326

Stockholders’ Equity:
 
 
 
 
Common stock
 
31

 
30

Additional paid-in capital
 
275,031

 
252,087

Notes receivable from stockholders
 
—

 
(5
)
Accumulated other comprehensive loss
 
(3,592
)
 
(2,115
)
Accumulated deficit
 
(17,616
)
 
(17,475
)
     Total stockholders’ equity
 
253,854

 
232,522

          Total liabilities and stockholders’ equity
 
$
297,279

 
$
263,848






3


Penumbra, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except share and per share amounts)
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2016
 
2015
 
2016
 
2015
Revenue
 
$
67,187

 
$
50,416

 
$
190,212

 
$
131,679

Cost of revenue
 
24,313

 
16,919

 
65,963

 
44,079

Gross profit
 
42,874

 
33,497

 
124,249

 
87,600

Operating expenses:
 
 
 
 
 
 
 
 
Research and development
 
6,497

 
4,560

 
17,762

 
12,543

Sales, general and administrative
 
37,740

 
26,755

 
106,685

 
72,698

Total operating expenses
 
44,237

 
31,315

 
124,447

 
85,241

(Loss) Income from operations
 
(1,363
)
 
2,182

 
(198
)
 
2,359

Interest income, net
 
631

 
17

 
1,700

 
402

Other expense, net
 
(360
)
 
(115
)
 
(856
)
 
(613
)
(Loss) Income before provision for income taxes
 
(1,092
)
 
2,084

 
646

 
2,148

Provision for income taxes
 
14

 
1,183

 
787

 
1,416

Net (loss) income
 
$
(1,106
)
 
$
901

 
$
(141
)
 
$
732

Net (loss) income attributable to common stockholders
 
$
(1,106
)
 
$
276

 
$
(141
)
 
$
175

Net (loss) income per share attributable to common stockholders
—Basic
 
$
(0.04
)
 
$
0.04

 
$
0.00

 
$
0.03

—Diluted
 
$
(0.04
)
 
$
0.03

 
$
0.00

 
$
0.02

Weighted average shares used to compute net (loss) income per share attributable to common stockholders
—Basic
 
30,604,384

 
7,853,730

 
30,269,463

 
5,962,031

—Diluted
 
30,604,384

 
10,189,248

 
30,269,463

 
8,494,651







4


Penumbra, Inc.
Reconciliation of Revenue Growth by Geographic Regions to Constant Currency Revenue Growth1 
(unaudited)
(in thousands)
 
 
Three Months Ended September 30,
 
Reported Change
 
 FX Impact
 
Constant Currency Change
 
 
2016
 
2015
 
$
 
%
 
 $
 
$
 
%
United States
 
$
44,380

 
$
35,394

 
$
8,986

 
25.4
%
 
$
—

 
$
8,986

 
25.4
%
International
 
22,807

 
15,022

 
$
7,785

 
51.8
%
 
(374
)
 
$
7,411

 
49.3
%
 
 
$
67,187

 
$
50,416

 
$
16,771

 
33.3
%
 
$
(374
)
 
$
16,397

 
32.5
%
Penumbra, Inc.
Reconciliation of Revenue Growth by Product Categories to Constant Currency Revenue Growth1 
(unaudited)
(in thousands)
 
 
Three Months Ended September 30,
 
Reported Change
 
 FX Impact
 
Constant Currency Change
 
 
2016
 
2015
 
$
 
%
 
 $
 
$
 
%
Neuro
 
$
47,534

 
$
36,309

 
$
11,225

 
30.9
%
 
$
(384
)
 
$
10,841

 
29.9
%
Peripheral Vascular
 
19,653

 
14,107

 
$
5,546

 
39.3
%
 
10

 
$
5,556

 
39.4
%
Total
 
$
67,187

 
$
50,416

 
$
16,771

 
33.3
%
 
$
(374
)
 
$
16,397

 
32.5
%
Penumbra, Inc.
Reconciliation of Revenue Growth by Geographic Regions to Constant Currency Revenue Growth1 
(unaudited)
(in thousands)
 
 
Nine Months Ended September 30,
 
Reported Change
 
 FX Impact
 
Constant Currency Change
 
 
2016
 
2015
 
$
 
%
 
 $
 
$
 
%
United States
 
$
127,484

 
$
89,364

 
$
38,120

 
42.7
%
 
$
—

 
$
38,120

 
42.7
%
International
 
62,728

 
42,315

 
$
20,413

 
48.2
%
 
236

 
$
20,649

 
48.8
%
 
 
$
190,212

 
$
131,679

 
$
58,533

 
44.5
%
 
$
236

 
$
58,769

 
44.6
%
Penumbra, Inc.
Reconciliation of Revenue Growth by Product Categories to Constant Currency Revenue Growth1 
(unaudited)
(in thousands)
 
 
Nine Months Ended September 30,
 
Reported Change
 
 FX Impact
 
Constant Currency Change
 
 
2016
 
2015
 
$
 
%
 
 $
 
$
 
%
Neuro
 
134,180

 
102,363

 
$
31,817

 
31.1
%
 
$
94

 
$
31,911

 
31.2
%
Peripheral Vascular
 
56,032

 
29,316

 
$
26,716

 
91.1
%
 
142

 
$
26,858

 
91.6
%
Total
 
$
190,212

 
$
131,679

 
$
58,533

 
44.5
%
 
$
236

 
$
58,769

 
44.6
%
1See “Non-GAAP Financial Measures” above for important information about our use of this non-GAAP measure and further information about our calculation of constant currency results.

Investor Relations
Penumbra, Inc.
510-995-2461
investors@penumbrainc.com 
Source: Penumbra, Inc. 





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