OpSens Announces Fourth Quarter and Fiscal Year 2020 Financial Results
QUEBEC CITY, Nov. 19, 2020 /CNW/ - OpSens Inc. ("OpSens" or the "Company") (TSX: OPS) (OTCQX: OPSSF) today reported its results for the fourth quarter and fiscal year 2020 ended August 31, 2020.
Financial Highlights
-- Sales of product at $29.5 million in FY 2020 compared to prior FY 2019;
-- Delivered Q4 2020 a $2.2 million improvement in profitability compared
with Q4 2019;
-- The Company ended fourth quarter with a cash balance of $10.9 million
compared to $10.0 million as of May 31, 2020.
Recent Developments
-- Awarded 3-year contract with major American group purchasing
organization ("GPO") to provide access to the OptoWire to their members
across the United States;
-- Progress in the development of a guidewire for transcatheter aortic
valve replacement (TAVI or TAVR) procedures.
Management Commentary
"I am pleased with the way the company is successfully navigating the COVID-19 pandemic," said Louis Laflamme, President and CEO of OpSens. "Despite the temporary closure of several cardiology laboratories, we continued to achieve progress in our commercial activities, including the signing of our first GPO contract to further increase our U.S. coronary artery stenosis measurement business."
"As we look ahead to fiscal 2021, we are cautiously optimistic about continued improvement in access to our commercial customers as hospital protocols for managing the pandemic are being implemented. In addition to continued traction in our currently commercialized products, we are accelerating the development of our new guidewire for TAVR procedures, a $4 billion global market which is growing in excess of 40% per year."
"Our continued progress over the past few years to create, manufacture and deliver world-class products, that contribute to health through our expertise in innovative medical products was highlighted during the last quarter. I congratulate the OpSens team for their determination to provide customers with continued access to our technology under these unusual circumstances," concluded Mr. Laflamme.
Financial Results - Year Ended August 31, 2020
Sales of product were stable at $29.5 million in fiscal 2020 compared with fiscal 2019.
Sales of products for the measurement of coronary artery stenosis (Fractional Flow Reserve ("FFR") and diastolic pressure ratio ("dPR")) were $18.7 million in FY 2020 compared with $20.0 million in FY 2019. The $1.3 million decrease in OptoWire sales was primarily related to the temporary closure of several cardiology laboratories brought on by COVID-19.
Sales of optical medical systems, including the Company's partnership for ventricular assist device sensors, were $8.3 million in FY 2020 compared with $7.0 million in FY 2019.
Operating expenses in fiscal 2020 were $19.3 million compared with $20.5 million in fiscal 2019. The improvement in operating expenses is attributable to savings on sales and marketing expenses offset by continued investment in research and development.
Net loss was $2.6 million during fiscal 2020 compared with a net loss of $2.0 million in fiscal 2019. This variation is mainly explained by a decrease of $3.3 million in non-recurring licensing revenue offset by a decrease in sales and marketing expenses and by a grant of $1.7 M from the Canadian government.
EBITDAO(1) (see table B) was $0.1 million in fiscal 2020 compared with $(0.4) million in fiscal 2019.
OpSens had a cash position of $10.9 million as of August 31, 2020.
Financial Results - Three-Month Period Ended August 31, 2020
Total revenue was $7.6 million in the fourth quarter of 2020 compared with $7.9 million in the fourth quarter of 2019.
Sales of products for the measurement of coronary artery stenosis (FFR and dPR) were $4.8 million in Q4 2020 compared with $5.3 million in Q4 2019. The $0.5 million decrease in OptoWire sales was primarily related to the temporary closure of several cardiology laboratories brought on by COVID-19.
Sales of optical medical systems including the Company's partnership for ventricular assist device sensors were $2.2 million in Q4 2020 compared with $1.8 million in Q4 2019.
Operating expenses in the fourth quarter of 2020 were $3.8 million compared with $5.5 million in the fourth quarter of 2019. The improvement in operating expenses is attributable to savings on sales and marketing expenses.
Net income was $0.6 million during the fourth quarter of 2020 compared with a net loss of $1.6 million in the fourth quarter of 2019. The $2.2 million improvement in net earnings is the result of a reduction in sales and marketing expenses and the recognition of a grant of $0.9 M from the Canadian government.
EBITDAO(1) (see table B) was $1.4 million in the fourth quarter of 2020 compared with $(1.1) million in the fourth quarter of 2019.
Table A
Consolidated
statement of
results For the year ended For the year ended
August 31, 2020 August 31, 2019*
(In thousands
of Canadian
dollars,
except for
information
per share)
$
$
---
Revenues
Sales
Medical 26,996 27,032
Industrial 2,457 2,418
29,453 29,450
Licensing 3,302
29,453 32,752
Cost of Sales 13,834 14,037
Gross margin 15,619 18,715
Gross margin
(%) 53% 57%
Operating
Expenses
Administration 5,041 4,593
Sales and
marketing 8,780 11,116
R&D 5,441 4,801
19,262 20,510
Other income (1,683)
Financial
expenses 684 157
Net loss and
comprehensive
loss (2,644) (1,952)
Net loss per
share - Basic
and diluted (0.03) (0.02)
*Comparative figures have not been
adjusted to reflect the adoption
of IFRS 16 - Leases as set out in
the accounting policy
Table B
Reconciliation of net earnings (loss) to EBITDAO
The Earnings Before Interest, Taxes, Depreciation, Amortisation and Stock-based compensation costs (EBITDAO) has no normalized sense prescribed by IFRS. It is not very probable that this measure is comparable with measures of the same type presented by other issuers. EBITDAO is defined by the Company as the addition of net loss, financial expenses (income), depreciation and amortisation and stock-based compensation costs. The Company uses EBITDAO for the purposes of evaluating its historical and prospective financial performance. This measure also helps the Company to plan and forecast for future periods as well as to make operational and strategic decisions. The Company believes that providing this information to investors, in addition to IFRS measures, allows them to see the Company's results through the eyes of management, and to better understand its historical and future financial performance.
Reconciliation
of
consolidated
Net
loss
to
EBITDAO For the year ended For the year ended
August 31, 2020 August 31, 2019*
(In
thousands
of
Canadian
dollars)
---
$
$
---
Net
loss (2,644) (1,952)
Financial
expenses 684 157
Depreciation
of
PP&E
and
right-
of-
use-
assets 1,548 802
Amortization
of
intangible
assets 120 91
Stock-
based
compensation
cost 438 489
EBITDAO 146 (413)
Reconciliation
of
consolidated
Net
Earnings
(loss)
to
EBITDAO For the quarter ended For the quarter ended
August 31, 2020 August 31, 2019*
(In
thousands
of
Canadian
dollars)
$
$
---
Net
earnings
(loss) 558 (1,618)
Financial
expenses 356 160
Depreciation
of
PP&E
and
right-
of-
use-
assets 386 205
Amortization
of
intangible
assets 24 25
Stock-
based
compensation
cost 78 121
EBITDAO 1,402 (1,107)
*Comparative figures have not been
adjusted to reflect the adoption
of IFRS 16 - Leases as set out in
the accounting policy
Table C
CONSOLIDATED BALANCE SHEET HIGHLIGHTS As at As at
(in thousands of Canadian dollars)
August 31, 2020 August 31,
2019*
---
$
$
---
Cash and cash equivalents 10,884 14,856
Trade and other receivables 4,041 5,115
Inventories 6,505 5,133
Total Current Assets 22,543 26,099
Property, plant, and equipment 3,230 2,962
Intangible assets 1,622 1,027
Right-of-use assets 4,513
Total Assets 31,908 30,088
Current liabilities 5,655 4,787
Long-term debt 6,608 7,135
Lease liabilities 4,298
Total Liabilities 16,561 12,648
Shareholders' equity 15,347 17,441
*Comparative figures have not been
adjusted to reflect the adoption
of IFRS 16 - Leases as set out in
the accounting policy
About OpSens Inc. (www.OpSens.com or www.OpSensmedical.com)
OpSens focuses mainly on coronary physiology products in interventional cardiology. OpSens offers an advanced optical-based pressure guidewire that aims at improving the clinical outcome of patients with coronary artery disease. Its flagship product, the OptoWire, is a second-generation fiber optic pressure guidewire designed to provide the lowest drift in the industry and excellent lesions access. The OptoWire has been used in the diagnosis and treatment of over 100,000 patients in more than 30 countries. It is approved for sale in the United States, European Union, Japan, and Canada.
OpSens is also involved in industrial activities in developing, manufacturing, and installing innovative fiber optic sensing solutions for critical applications.
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance, and achievements of OpSens to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.
Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
________________________
1 This non-IFRS measure is presented for additional
information and should be used in conjunction with
the IFRS financial measures presented. Definition of
non-IFRS measures is explained at table B to provide
the reader with a better understanding of the metrics
used by management. Comparative figures have not been
restated to reflect the adoption of IFRS 16 -
Leases, as set out in the accounting policy.
SOURCE OPSENS Inc.
