Accelerate Diagnostics Reports Fourth Quarter and Full-Year 2020 Financial Results
TUCSON, Ariz., Feb. 23, 2021 /PRNewswire/ -- Accelerate Diagnostics, Inc. (Nasdaq: AXDX) today announced financial results for the fourth quarter and full year ended December 31, 2020.
"We were pleased with the improvement in our go-live execution over the course of 2020, which drove a material increase in our live instruments in the fourth quarter and led to a 63% increase in our revenue-generating installed base during the year," commented Jack Phillips, Chief Executive Officer of Accelerate Diagnostics, Inc. "We also saw modest improvements in the demand environment during the quarter, although new instrument placements continued to be challenged due to pandemic-related headwinds, including limited salesforce access to potential customer sites and hospital decision-makers' strong focus on COVID-19. Entering 2021, we are optimistic about an improving hospital selling environment as we leverage our improved sales and implementation processes and plan to bring our exciting new product launches to market."
Fourth Quarter 2020 Highlights
-- Added 21 contracted instruments in the quarter and brought 45
instruments live in the U.S.
-- Ended the fourth quarter with 268 U.S. live revenue-generating
instruments, with another 133 U.S. contracted Pheno instruments not yet
live.
-- Net sales of $3.1 million, compared to $3.5 million in the fourth
quarter of 2019, or a 10% decline, due to an international capital deal
in the fourth quarter of 2019 that did not repeat in the current year.
-- Gross margin was 37% for the quarter, compared to 44% in the fourth
quarter of 2019. This decrease was the result of pandemic-related
effects on manufacturing, restructuring charges in EMEA, and dilution
due to capital deals in the quarter.
-- Selling, general, and administrative expenses for the quarter were $11.2
million, compared to $13.6 million in the fourth quarter of 2019. This
decrease was driven by pandemic-related reductions in sales and
marketing spend related to travel and trade shows.
-- Research and development (R&D) costs for the quarter were $5.1 million,
compared to $6.2 million in the fourth quarter of 2019. This decrease
was the result of increased efficiencies and lower external study spend.
-- Net loss was $18.9 million in the fourth quarter, or $0.33 per share,
which included $4.2 million in non-cash stock-based compensation
expense.
-- Net cash used in the quarter was $9.2 million, and the company ended the
quarter with total cash, investments, and cash equivalents of $68.3
million.
2020 Full Year Highlights
-- Net sales were $11.2 million for the year as compared to $9.3 million
from the same period in the prior year, or 20% growth.
-- Gross margin was 40% for the year, compared to 47% for the prior year.
This decrease was the result of pandemic-related effects on
manufacturing, restructuring charges in EMEA, and dilution due to
capital deals during the year.
-- Selling, general, and administrative expenses were $46.9 million for the
year, compared to $51.9 million in 2019. This decrease was driven by
pandemic-related reductions in sales and marketing spend related to
travel and trade shows.
-- Research and development (R&D) costs were $21.3 million year-to-date,
compared to $25.4 million in 2019. This decrease was the result of
increased efficiencies and lower external study spend.
-- Net loss was $78.2 million for the year, or $1.40 per share, which
included $16.5 million in non-cash stock-based compensation expense.
-- Net cash used was $40.2 million, and the company ended the quarter with
total cash, investments, and cash equivalents of $68.3 million.
Full financial results for the year ending December 31, 2020 will be filed on Form 10-K through the Securities and Exchange Commission's (SEC) website at http://www.sec.gov.
Audio Webcast and Conference Call
The company will host a conference call at 4:30PM ET today to review its fourth quarter and full year 2020 results. To listen to the 2020 fourth quarter and full year 2020 financial results call by phone, +1.877.883.0383 and enter the conference ID: 9000762. International participants may dial +1.412.902.6506. Please dial in 10-15 minutes prior to the start of the conference. A replay of the call will be available by telephone at +1.877.344.7529 (U.S.) or +1.412.317.0088 (International) using the replay code 10151395 until March 16, 2021.
This conference call will also be webcast and can be accessed from the "Investors" section of the company's website at axdx.com/investors. A replay of the audio webcast will be available until May 24, 2021.
About Accelerate Diagnostics, Inc.
Accelerate Diagnostics, Inc. is an in vitro diagnostics company dedicated to providing solutions for the global challenges of antibiotic resistance and sepsis. The Accelerate Pheno® system and Accelerate PhenoTest® BC kit combine several technologies aimed at reducing the time clinicians must wait to determine the most optimal antibiotic therapy for deadly infections. The FDA cleared system and kit fully automate the sample preparation steps to report phenotypic antibiotic susceptibility results in approximately 7 hours direct from positive blood cultures. Recent external studies indicate the solution offers results 1-2 days faster than existing methods, enabling clinicians to optimize antibiotic selection and dosage specific to the individual patient days earlier.
The "ACCELERATE DIAGNOSTICS" and "ACCELERATE PHENO" and "ACCELERATE PHENOTEST" and diamond shaped logos and marks are trademarks or registered trademarks of Accelerate Diagnostics, Inc.
For more information about the company, its products and technology, or recent publications, visit axdx.com.
Forward-Looking Statements
Certain of the statements made in this press release are forward looking, such as, among others, Mr. Phillips statements regarding our optimism that our selling environment will improve in 2021, and our plan to bring new products to market. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Information about the risks and uncertainties faced by Accelerate Diagnostics is contained in the section captioned "Risk Factors" in the company's most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 27, 2020, and in any other reports that the company files with the Securities and Exchange Commission. The company's forward-looking statements could be affected by general industry and market conditions. Except as required by federal securities laws, the company undertakes no obligation to update or revise these forward-looking statements to reflect new events, uncertainties or other contingencies.
Source: Accelerate Diagnostics Inc.
ACCELERATE DIAGNOSTICS, INC.
CONSOLIDATED
BALANCE SHEETS
(in thousands, except share data)
December 31,
2020 2019
---
ASSETS
Current assets:
Cash and cash equivalents $
35,781 $
61,014
Investments 32,488 47,437
Trade accounts receivable 1,550 3,222
Inventory 9,216 8,059
Prepaid expenses 1,172 955
Other current assets 1,780 1,165
Total current assets 81,987 121,852
Property and equipment, net 6,135 7,905
Right of use assets 3,183 3,917
Other non-current assets 2,120 750
Total assets $
93,425 $
134,424
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $
1,290 $
2,351
Accrued liabilities 2,991 3,828
Accrued interest 1,262 1,262
Deferred revenue 376 271
Current portion of long-term
debt 553
Current operating lease
liability 497 450
Total current liabilities 6,969 8,162
Non-current operating lease
liability 3,063 3,579
Other non-current liabilities 335 19
Long-term debt 4,659
Convertible notes 141,211 130,043
Total liabilities 156,237 141,803
Commitments and contingencies
Stockholders' equity (deficit):
Preferred shares, $0.001 par value;
5,000,000 preferred shares
authorized and none
outstanding as of December
31, 2020 and 2019 -
Common stock, $0.001 par value;
85,000,000 common shares
authorized with 57,607,939
shares issued and outstanding
on December 31, 2020 and
85,000,000 common shares
authorized with 54,708,792
shares issued and outstanding
on December 31, 2019 58 55
Contributed capital 475,072 452,344
Treasury stock (45,067) (45,067)
Accumulated deficit (492,966) (414,653)
Accumulated other
comprehensive loss 91 (58)
Total stockholders' equity
(deficit) (62,812) (7,379)
Total liabilities and
stockholders' equity
(deficit) $
93,425 $
134,424
ACCELERATE DIAGNOSTICS, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per share data)
Years Ended December 31,
2020 2019 2018
---
Net sales $
11,165 $
9,297 $
5,670
Cost of sales 6,706 4,897 3,187
Gross profit 4,459 4,400 2,483
Costs and expenses:
Research and development 21,255 25,345 27,638
Sales, general and
administrative 46,904 51,886 55,214
Total costs and expenses 68,159 77,231 82,852
Loss from operations (63,700) (72,831) (80,369)
Other income (expense):
Interest expense (15,550) (14,256) (10,113)
Foreign currency exchange
gain (loss) 252 (124) (450)
Interest and dividend
income 855 2,809 2,845
Other expense, net (60) (14) (28)
Total other expense, net (14,503) (11,585) (7,746)
Net loss before income
taxes (78,203) (84,416) (88,115)
Benefit (provision) for
income taxes (5) 111 (211)
Net loss $
(78,208) $
(84,305) $
(88,326)
Basic and diluted net loss
per share $
(1.40) $
(1.55) $
(1.62)
Weighted average shares
outstanding 56,010 54,506 54,494
Other comprehensive loss:
Net loss $
(78,208) $
(84,305) $
(88,326)
Net unrealized (loss) gain
on available-for-sale
investments (2) 193 23
Foreign currency
translation adjustment 151 (102) (172)
Comprehensive loss $
(78,059) $
(84,214) $
(88,475)
ACCELERATE DIAGNOSTICS, INC.
CONSOLIDATED
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
(in thousands)
Shares Common Contributed Accumulated Treasury Accumulated Total
Deficit
Stock Capital stock Other Stockholders'
Amount Comprehensive Equity (Deficit)
Income (Loss)
---
Balances, January 1,
2018 55,674 $
56 $
360,620 $
(241,972)
$
$ $
118,704
Net loss - (88,326) (88,326)
Exercise of options
and restricted
stock awards issued 382 3,749 3,749
Issuance of common
stock under
employee purchase
plan 35 583 583
Unrealized gain on
available-for-
sale securities - 23 23
Foreign currency
translation
adjustment - (172) (172)
Repurchase of common
stock under Prepaid
Forward contract (1,859) (2) (45,067) (45,069)
Issuance of
convertible note - 53,283 53,283
Cumulative impact of
accounting change - (50) (50)
Equity-based
compensation - 14,650 14,650
Balances, December
31, 2018 54,232 54 432,885 (330,348) (45,067) (149) 57,375
Net loss - (84,305) (84,305)
Issuance of common
stock 56 1,000 1,000
Exercise of options
and restricted
stock awards issued 396 1 5,364 5,365
Issuance of common
stock under
employee purchase
plan 25 458 458
Unrealized gain on
available-for-
sale securities - 193 193
Foreign currency
translation
adjustment - (102) (102)
Equity-based
compensation - 12,637 12,637
Balances, December
31, 2019 54,709 55 452,344 (414,653) (45,067) (58) (7,379)
Net loss - (78,208) (78,208)
Exercise of options
and restricted
stock awards issued 2,858 3 6,059 6,062
Issuance of common
stock under
employee purchase
plan 41 359 359
Unrealized loss on
available-for-
sale securities - (2) (2)
Foreign currency
translation
adjustment - 151 151
Cumulative impact of
accounting change - (105) (105)
Equity-based
compensation - 16,310 16,310
Balances, December
31, 2020 $
57,608 $
58 $
475,072 $
(492,966) $
(45,067) $
91 $
(62,812)
ACCELERATE DIAGNOSTICS, INC.
CONSOLIDATED
STATEMENT OF CASH FLOWS
(in thousands)
Years Ended December 31,
2020 2019 2018
---
Cash flows from operating activities:
Net loss $
(78,208) $
(84,305) $
(88,326)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and
amortization 2,997 2,602 2,561
Amortization of investment
discount 99 (427) (621)
Equity-based compensation
expense 16,464 12,618 14,422
Amortization of debt
discount and issuance
costs 11,168 9,969 6,849
Realized loss on
available-for-sale
securities 3
Loss on disposal of
property and equipment 785 837 678
Contributions to deferred
compensation plan (357)
(Increase) decrease in assets:
Accounts receivable 1,592 (1,362) 86
Inventory (1,356) (3,655) (4,223)
Prepaid expense and other
assets (2,087) (752) (250)
Increase (decrease) in liabilities:
Accounts payable (1,006) 988 (748)
Accrued liabilities (909) (1,327) 1,426
Accrued interest - 1,262
Deferred revenue and
income 105 54 (904)
Deferred compensation 316 (34) 32
Net cash used in operating
activities (50,394) (64,794) (67,756)
Cash flows from investing activities:
Purchases of equipment (1,362) (330) (998)
Purchase of marketable
securities (46,933) (50,226) (120,556)
Proceeds from sales of
marketable securities - 14,500 3,000
Maturities of marketable
securities 61,901 88,867 98,416
Net cash provided by (used
in) investing activities 13,606 52,811 (20,138)
Cash flows from financing activities:
Proceeds from issuance of
common stock 362 1,458 583
Proceeds from exercise of
options and warrants 6,059 5,365 3,749
Proceeds from issuance of
convertible note - 171,500
Proceeds from debt 5,578
Payment of debt (366)
Prepayment of forward
stock repurchase
transaction - (45,069)
Payment of debt issuance
costs - (4,992)
Net cash provided by
financing activities 11,633 6,823 125,771
Effect of exchange rate on
cash (78) (86) (130)
Increase (decrease) in
cash and cash equivalents (25,233) (5,246) 37,747
Cash and cash equivalents,
beginning of period 61,014 66,260 28,513
Cash and cash equivalents,
end of period $
35,781 $
61,014 $
66,260
ACCELERATE DIAGNOSTICS, INC.
CONSOLIDATED
STATEMENT OF CASH FLOWS (CONTINUED)
(in thousands)
Years Ended December 31,
2020 2019 2018
---
Non-cash investing activities:
Transfer of
instruments from
inventory to
property and
equipment $
1,525 $
3,361 $
4,767
Supplemental cash flow information:
Interest paid $
4,288 $
4,288 $
2,001
Income taxes paid,
net of refunds $
43 $
41 $
651
See accompanying notes to consolidated financial statements.
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SOURCE Accelerate Diagnostics, Inc.
