Accelerate Diagnostics Reports 2018 Fourth Quarter and Full-Year Financial Results

TUCSON, Ariz., Feb. 19, 2019 /PRNewswire/ -- Accelerate Diagnostics, Inc. AXDX today announced financial results for the fourth quarter and fiscal year ended December 31, 2018. 

Accelerate Diagnostics, Inc. (PRNewsfoto/Accelerate Diagnostics)

"I am pleased to report an improvement in our commercial progress during the fourth quarter after a challenging start to 2018," said Lawrence Mehren, President and CEO of Accelerate Diagnostics, Inc. "We worked diligently over the first three quarters of the year to implement significant changes to our commercial strategy in order to improve our access to the hospital market.  These efforts began to bear meaningful fruit during the fourth quarter as we added 133 new commercial contracts, including 117 in the U.S., which more than doubles our number of U.S. commercially contracted instruments. We enter 2019 with renewed confidence and belief that careful and consistent execution will enable us to capitalize on the tremendous opportunity in front of us and bring our life-saving technology to an ever-expanding number of patients around the globe."

Fourth Quarter 2018 Highlights

  • Added 133 commercially contracted instruments, compared to 22 in the fourth quarter of 2017.
  • Net sales of $1.8 million, compared to $2.1 million in the fourth quarter of 2017, a decrease attributable to lower capital sales mix as customers began adopting using reagent rental agreements, an option not available in the prior year period.
  • Gross margin was 29%, which included an unfavorable 24 percentage point reduction due to increased costs arising from investments in service and manufacturing capacity ahead of production demand. Gross margin was 69% in the fourth quarter of 2017, which included a benefit of 16 percentage points due to the sale of pre-FDA manufactured instruments which had previously been written off to research and development.
  • Selling, general, and administrative expenses were $13.4 million, compared to $11.5 million for the fourth quarter of 2017, driven by the expansion of our U.S. sales team and costs related to increased global sales and marketing activity.
  • Research and development (R&D) expense was $6.9 million, compared to $6.1 million in the fourth quarter of 2017, due to continued investment in clinical outcomes studies and costs incurred in preparation for respiratory FDA registration and outcomes studies.
  • Net loss was $22.2 million, or $0.41 per share, which included $2.2 million in non-cash stock-based compensation expense.
  • Net cash used was $14.1 million.

Full Year 2018 Highlights

  • Ended the year with 202 global commercially contracted instruments, compared to 78 at the end of 2017.
  • Net sales of $5.7 million, compared to $4.2 million in 2017, driven by increased Accelerate Pheno instrument placements and the resulting sales of Accelerate PhenoTest™ BC test kits.
  • Gross margin was 44%, which included an unfavorable 9 percentage point reduction due to costs arising from investments in service and manufacturing capacity ahead of production demand. Gross margin was 76% in 2017, which included a benefit of 21 percentage due to the sale of pre-FDA manufactured instruments which had previously been written off to R&D.
  • Selling, general, and administrative expenses were $55.2 million, compared to $45.1 million in 2017, driven by expansion of the U.S. sales team and costs related to increased global sales and marketing activity.
  • Research and development expenses for the year were $27.6 million, compared to $22.3 million in 2017, due to continued investment in clinical outcomes studies and costs incurred in preparation for respiratory FDA registration and outcomes studies.
  • Net loss was $88.3 million, or $1.62 per share. Net loss included $14.7 million in non-cash stock-based compensation expense.
  • Net cash used was $64.1 million. The Company ended the year with total cash, investments, and cash-equivalents from all activities of $166.5 million.

Full financial results for the fourth quarter and full-year 2018 will be filed on Form 10-K through the Securities and Exchange Commission's (SEC) website at http://www.sec.gov. Investors are cautioned not to place undue reliance on these preliminary and unaudited estimates in the event of material changes.

Audio Webcast and Conference Call

The Company will host a conference call at 4:30 p.m. ET today to review its fourth quarter and full-year 2018 results. To participate in this conference call, dial +1.877.883.0383 and enter the conference ID: 3234922. International participants may dial +1.412.902.6506.  Please dial in 10-15 minutes before 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 10128408 until May 21, 2019.

This conference call will also be webcast and can be accessed from the "Investors" section of the Company's website at ir.axdx.com. A replay of the audio webcast will be available until May 21, 2019.

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 serious infections. The FDA-cleared system and kit fully automate sample preparation steps, enabling phenotypic antibiotic susceptibility results in about 7 hours directly from positive blood cultures. Recent external studies indicate the solution offers results 1 to 2 days faster than existing methods, enabling clinicians to optimize antibiotic selection and dosage specific to the individual patient's infection, 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 and the related conference call and webcast are forward-looking, such as those, among others, about our projections as to when certain key business milestones may be achieved, the potential of our products or technology, the growth of the market, our estimates as to the size of our market opportunity and potential pricing, our competitive position and estimates of time reduction to results, and our future development plans and growth strategy. 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, Inc. 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 March 1, 2018, and in any other subsequent reports that we file with the Securities and Exchange Commission from time to time. 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.

ACCELERATE DIAGNOSTICS, INC.

CONSOLIDATED

BALANCE SHEETS

(Unaudited)

(in thousands, except share data)





December 31,



2018

2017

ASSETS

Current assets:





Cash and cash equivalents

$

66,260



$

28,513



Investments

100,218



80,648



Trade accounts receivable

1,860



1,946



Inventory

7,746



8,063



Prepaid expenses

980



850



Other current assets

576



468



Total current assets

177,640



120,488



Property and equipment, net

7,303



4,890



Intellectual property, net

114



134



Other non-current assets

208





Total assets

$

185,265



$

125,512









LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:





Accounts payable

$

1,322



$

2,080



Accrued liabilities

4,962



3,636



Accrued Interest

1,262





Deferred revenue and income

217



1,071



Total current liabilities

7,763



6,787



Other long term liabilities

53



21



Convertible notes

120,074





Total liabilities

127,890



6,808









Commitments and contingencies











Stockholders' equity:





Preferred shares, $0.001 par value;





5,000,000 preferred shares authorized and none outstanding as of December 31, 2018 and 2017





Common stock, $0.001 par value;





75,000,000 common shares authorized with 54,231,876 shares issued and outstanding on December 31, 2018 and 75,000,000 authorized with 55,673,810 shares issued and outstanding on December 31, 2017

54



56



Contributed capital

432,885



360,620



Treasury stock

(45,067)





Accumulated deficit

(330,348)



(241,972)



Accumulated other comprehensive income (loss)

(149)





Total stockholders' equity

57,375



118,704



Total liabilities and stockholders' equity

$

185,265



$

125,512





See accompanying notes to consolidated financial statements.

 

ACCELERATE DIAGNOSTICS, INC.

CONSOLIDATED

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(in thousands, except per share data)





Years Ended December 31,



2018

2017

2016

Net sales

$

5,670



$

4,177



$

246











Cost of sales

3,187



1,002





Gross profit

2,483



3,175



246











Costs and expenses:







Research and development

27,638



22,301



29,564



Sales, general and administrative

55,214



45,058



37,183



Total costs and expenses

82,852



67,359



66,747











Loss from operations

(80,369)



(64,184)



(66,501)











Other income (expense):







Interest expense

(10,113)







Foreign currency exchange loss

(450)



(75)



(77)



Interest and dividend income

2,845



908



494



Other expense, net

(28)



(184)



(23)



Total other income (expense), net

(7,746)



649



394











Net loss before income taxes

(88,115)



(63,535)



(66,107)



Provision for income taxes

(211)



(493)



(267)



Net loss

$

(88,326)



$

(64,028)



$

(66,374)











Basic and diluted net loss per share

$

(1.62)



$

(1.18)



$

(1.29)



Weighted average shares outstanding

54,494



54,073



51,276











Other comprehensive loss:







Net loss

$

(88,326)



$

(64,028)



$

(66,374)



Net unrealized gain (loss) on available-for-sale investments

23



(117)



(64)



Foreign currency translation adjustment

(172)



321



(128)



Comprehensive loss

$

(88,475)



$

(63,824)



$

(66,566)





See accompanying notes to consolidated financial statements.

 

ACCELERATE DIAGNOSTICS, INC.

CONSOLIDATED

STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

(in thousands)





Shares

Common

Stock

Amount

Contributed

Capital

Accumulated

Deficit

Treasury

stock

Accumulated

Other

Comprehensive

Income (Loss)

Total

Stockholders'

Equity

Balances, January 1, 2016

51,191



$

51



$

243,894



$

(110,915)



$



$

(12)



$

133,018



Net loss







(66,374)







(66,374)



Exercise of options and warrants

314



1



1,496









1,497



Issuance of common stock under employee purchase plan

11





226









226



Short swing profits (net of costs)





866









866



Unrealized loss on available-for-sale securities











(64)



(64)



Foreign currency translation adjustment











(128)



(128)



Equity-based compensation





8,775









8,775



Balances, December 31, 2016

51,516



52



255,257



(177,289)





(204)



77,816



Net loss







(64,028)







(64,028)



Issuance of common stock

3,085



3



83,221









83,224



Exercise of options and warrants

1,045



1



6,605









6,606



Issuance of common stock under employee purchase plan

28





597









597



Unrealized loss on available-for-sale securities











(117)



(117)



Foreign currency translation adjustment











321



321



Cumulative impact of accounting change







(655)







(655)



Equity-based compensation





14,940









14,940



Balances, December 31, 2017

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 loss 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





See accompanying notes to consolidated financial statements.

 

ACCELERATE DIAGNOSTICS, INC.

CONSOLIDATED

STATEMENT OF CASH FLOWS

(Unaudited)

(in thousands)





Years Ended December 31,



2018

2017

2016

Cash flows from operating activities:







Net loss

$

(88,326)



$

(64,028)



$

(66,374)



Adjustments to reconcile net loss to net cash used in operating activities:







Depreciation and amortization

2,561



2,196



2,351



Amortization of investment discount

(621)



326



374



Equity-based compensation

14,650



13,933



8,775



Amortization of debt discount and issuance costs

6,849







Realized gain on available-for-sale securities





(6)



Loss on disposal of property and equipment

678



240



23



(Increase) decrease in assets:







Accounts receivable

86



(1,912)



43



Inventory

(4,451)



(7,759)





Prepaid expense and other assets

(250)



(459)



1,121



Increase (decrease) in liabilities:







Accounts payable

(748)



1,064



(1,242)



Accrued liabilities

1,426



596



1,619



Accrued interest

1,262







Deferred revenue and income

(904)



36



(92)



Deferred compensation

32



21





Net cash used in operating activities

(67,756)



(55,746)



(53,408)



Cash flows from investing activities:







Purchases of equipment

(998)



(2,966)



(2,409)



Purchase of marketable securities

(120,556)



(82,333)



(74,075)



Proceeds from sales of marketable securities

3,000



11,522



9,716



Maturities of marketable securities

98,416



48,049



17,200



Net cash used in investing activities

(20,138)



(25,728)



(49,568)



Cash flows from financing activities:







Proceeds from exercise of warrants and options

3,749



6,606



1,497



Common stock issuance cost





(814)



Proceeds from issuance of common stocks and warrants

583



83,821



226



Recovery of related party short-swing profits





866



Payments on capital lease obligations





(13)



Proceeds from issuance of convertible note

171,500







Prepayment of forward stock repurchase transaction

(45,069)







Payment of debt issuance costs

(4,992)







Net cash provided by financing activities

125,771



90,427



1,762











Effect of exchange rate on cash

(130)



316



(127)











Increase (decrease) in cash and cash equivalents

37,747



9,269



(101,341)



Cash and cash equivalents, beginning of period

28,513



19,244



120,585



Cash and cash equivalents, end of period

$

66,260



$

28,513



$

19,244





See accompanying notes to consolidated financial statements.

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/accelerate-diagnostics-reports-2018-fourth-quarter-and-full-year-financial-results-300798211.html

SOURCE Accelerate Diagnostics, Inc.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsPress ReleasesConference Call Announcements
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!