$PEN Penumbra, Inc. Reports First Quarter 2021 Financial Results

on May 4, 2021 News and Tags: , , , with 0 comments

ALAMEDA, Calif., May 4, 2021 /PRNewswire/ -- Penumbra, Inc. (NYSE: PEN), a global healthcare company focused on innovative therapies, today reported financial results for the first quarter ended March 31, 2021.

Revenue of $169.2 million in the first quarter of 2021, an increase of 23.2%, or 21.5% in constant currency1, compared to the first quarter of 2020.

First Quarter 2021 Financial Results

Total revenue increased to $169.2 million for the first quarter of 2021 compared to $137.3 million for the first quarter of 2020, an increase of 23.2%, or 21.5% on a constant currency basis. The United States represented 71% of total revenue and international represented 29% of total revenue for the first quarter of 2021. Revenue from sales of vascular products grew to $89.2 million for the first quarter of 2021, an increase of 50.5%, or 49.1% on a constant currency basis. Revenue from sales of neuro products grew to $80.0 million for the first quarter of 2021, an increase of 2.5%, or 0.6% on a constant currency basis.

Gross profit was $111.3 million, or 65.8% of total revenue, for the first quarter of 2021, compared to $88.0 million, or 64.1% of total revenue, for the first quarter of 2020.

Total operating expenses for the first quarter of 2021 were $97.9 million, or 57.8% of total revenue. This compares to total operating expenses of $87.4 million, or 63.6% of total revenue, for the first quarter of 2020. R&D expenses were $18.1 million for the first quarter of 2021, compared to $12.9 million for the first quarter of 2020. SG&A expenses were $79.8 million for the first quarter of 2021, compared to $74.5 million for the first quarter of 2020.

Operating income for the first quarter of 2021 was $13.5 million. This compares to an operating income of $0.6 million for the first quarter of 2020.

1 See "Non-GAAP Financial Measures" for important information about our use of non-GAAP measures.

Updated Full Year 2021 Financial Outlook

The Company is increasing its guidance for 2021 total revenue to be in the range of $695 million to $705 million, which represents growth of 24% to 26% over 2020 revenue of $560.4 million. This new range compares to the previous range of $675 million to $685 million.

Webcast and Conference Call Information

Penumbra, Inc. will host a conference call to discuss the first quarter 2021 financial results after market close on Tuesday, May 4, 2021 at 4:30 PM Eastern Time. The conference call can be accessed live over the phone by dialing (833) 350-1434 for domestic and international callers (conference id: 6645719), or the webcast can be accessed on the "Events" section under the "Investors" tab of the Company's website at: www.penumbrainc.com. The webcast will be available on the Company's website for at least two weeks following the completion of the call.

About Penumbra

Penumbra, Inc., headquartered in Alameda, California, is a global healthcare company focused on innovative therapies. Penumbra designs, develops, manufactures and markets novel products and has a broad portfolio that addresses challenging medical conditions in markets with significant unmet need. Penumbra sells its products to hospitals and healthcare providers primarily through its direct sales organization in the United States, most of Europe, Canada and Australia, and through distributors in select international markets. The Penumbra logo is a trademark of Penumbra, Inc. For more information, visit www.penumbrainc.com.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company uses the following non-GAAP financial measures in this press release: a) non-GAAP net income (loss) and non-GAAP diluted earnings per share ("EPS") and b) constant currency.

Non-GAAP net income (loss) and non-GAAP diluted EPS. The Company defines non-GAAP net income (loss) as net income attributable to Penumbra, Inc. excluding the effects of the excess tax benefits associated with share-based compensation arrangements. The Company defines non-GAAP diluted EPS as GAAP diluted EPS, excluding the effects of the same item above.

Constant Currency. The Company's 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 these non-GAAP measures to the most comparable GAAP measures is set forth in the tables below.

Our management believes the non-GAAP financial measures disclosed in this press release are useful to investors in assessing the operating performance of our business and provide meaningful comparisons to prior periods and thus a more complete understanding of our business than could be obtained absent this disclosure. In addition, non-GAAP financial measures enable comparison of the Company's financial results with other public companies.

The non-GAAP financial measures included in this press release may be different from, and therefore may not be comparable to, similarly titled measures used by other companies. These non-GAAP measures should not be considered in isolation or as alternatives to GAAP measures. We urge investors to review the reconciliation of these non-GAAP financial measures 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: the impact of the COVID-19 pandemic on our business, results of operations and financial condition; 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 on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 23, 2021. 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.

Penumbra, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

(in thousands)

March 31, 2021

December 31, 2020

Assets

Current assets:

Cash and cash equivalents

$

55,632

$

69,670

Marketable investments

186,977

195,162

Accounts receivable, net

126,415

114,608

Inventories

245,321

219,527

Prepaid expenses and other current assets

20,782

18,735

Total current assets

635,127

617,702

Property and equipment, net

50,314

48,169

Operating lease right-of-use assets

40,691

41,192

Finance lease right-of-use assets

37,697

38,065

Intangible assets, net

10,097

10,639

Goodwill

8,006

8,372

Deferred taxes

48,978

50,139

Other non-current assets

9,914

8,705

Total assets

$

840,824

$

822,983

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

15,389

$

14,109

Accrued liabilities

90,214

85,795

Current operating lease liabilities

4,822

4,697

Current finance lease liabilities

1,437

1,331

Total current liabilities

111,862

105,932

Non-current operating lease liabilities

43,525

44,183

Non-current finance lease liabilities

27,000

27,066

Other non-current liabilities

7,966

8,014

Total liabilities

190,353

185,195

Stockholders' equity:

Common stock

36

36

Additional paid-in capital

603,022

598,299

Accumulated other comprehensive (loss) income

(425)

2,541

Retained earnings

52,458

40,622

Total Penumbra, Inc. stockholders' equity

655,091

641,498

Non-controlling interest

(4,620)

(3,710)

Total stockholders' equity

650,471

637,788

Total liabilities and stockholders' equity

$

840,824

$

822,983

Penumbra, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

(in thousands, except share and per share amounts)

Three Months Ended March 31,

2021

2020

Revenue

$

169,204

$

137,329

Cost of revenue

57,867

49,320

Gross profit

111,337

88,009

Operating expenses:

Research and development

18,076

12,946

Sales, general and administrative

79,798

74,453

Total operating expenses

97,874

87,399

Income from operations

13,463

610

Interest income, net

480

299

Other income, net

(1,476)

(1,655)

Income (loss) before income taxes

12,467

(746)

Provision for (benefit from) income taxes

1,541

(1,634)

Consolidated net income

$

10,926

$

888

Net loss attributable to non-controlling interest

(910)

(537)

Net income attributable to Penumbra, Inc.

$

11,836

$

1,425

Net income attributable to Penumbra, Inc. per share:

Basic

$

0.32

$

0.04

Diluted

$

0.32

$

0.04

Weighted average shares outstanding:

Basic

36,455,712

35,042,912

Diluted

37,533,520

36,362,726

Penumbra, Inc.

Reconciliation of GAAP Net Income and GAAP Diluted EPS to Non-GAAP Net Income (Loss) and Non-GAAP Diluted EPS1

(unaudited)

(in thousands, except per share amounts)

Three Months Ended

March 31, 2021

Three Months Ended

March 31, 2020

Net (loss) income

Diluted EPS

Net income

Diluted EPS

GAAP net income

$

11,836

$

0.32

$

1,425

$

0.04

GAAP net income includes the effect of the following items:

Excess tax benefits related to stock compensation awards

(1,784)

(0.05)

(1,482)

(0.04)

Non-GAAP net income (loss)

$

10,052

$

0.27

$

(57)

$

0.00

Penumbra, Inc.

Reconciliation of Revenue Growth by Geographic Regions to Constant Currency Revenue Growth1

(unaudited)

(in thousands)

Three Months Ended March 31,

Reported Change

FX Impact

Constant Currency Change

2021

2020

$

%

$

$

%

United States

$

120,070

$

95,774

$

24,296

25.4

%

$

$

24,296

25.4

%

International

49,134

41,555

7,579

18.2

%

(2,299)

5,280

12.7

%

Total

$

169,204

$

137,329

$

31,875

23.2

%

$

(2,299)

$

29,576

21.5

%

Penumbra, Inc.

Reconciliation of Revenue Growth by Product Categories to Constant Currency Revenue Growth1

(unaudited)

(in thousands)

Three Months Ended March 31,

Reported Change

FX Impact

Constant Currency Change

2021

2020

$

%

$

$

%

Vascular

$

89,165

$

59,253

$

29,912

50.5

%

$

(813)

$

29,099

49.1

%

Neuro

80,039

78,076

1,963

2.5

%

(1,486)

477

0.6

%

Total

$

169,204

$

137,329

$

31,875

23.2

%

$

(2,299)

$

29,576

21.5

%

1See "Non-GAAP Financial Measures" above for important information about our use of non-GAAP measures and further information about our non-GAAP net income (loss) and non-GAAP diluted EPS measures and our use of constant currency.

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

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SOURCE Penumbra, Inc.

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