-
GAAP Revenue Growth of 13% to $17.4 Million and GAAP EPS of $0.22
-
Non-GAAP Revenue Up 8% and Non-GAAP EPS of $0.30
-
FDA IDE Approval for Early Feasibility Study of the SurVeil™
Drug-Coated Balloon
-
Increase in Share Repurchase Authorization to $30.0 Million
-
Fiscal 2016 Guidance Outlined
SurModics, Inc. (Nasdaq:SRDX), a leading provider of medical device and
in vitro diagnostic technologies to the healthcare industry, today
announced results for its fiscal 2015 fourth quarter, ended September
30, 2015.
“The SurModics team had an excellent fiscal 2015,” said Gary Maharaj,
president and chief executive officer. “We focused on delivering
outstanding results from our core businesses while strengthening the
transformation for SurModics to become a provider of whole-product
solutions to our medical device customers. We continued this momentum
into fiscal 2016 as we announced the FDA approval of an early
feasibility first-in-human study for the SurModics SurVeil™ drug-coated
balloon (DCB).”
Fourth Quarter Revenue and Earnings Summary
GAAP revenue for the fiscal 2015 fourth quarter totaled $17.4 million,
compared with $15.3 million in the fiscal 2014 fourth quarter. Fiscal
2015 fourth quarter revenue included $0.8 million of hydrophilic royalty
revenue that was deferred because of customer-related contingencies that
were resolved during the quarter. These royalties related to the first
three quarters of fiscal 2015. Excluding this item, revenue rose 8% in
the fiscal 2015 fourth quarter.
Diluted GAAP earnings per share from continuing operations in the fourth
quarter of fiscal 2015 were $0.22 compared with $0.18 a year ago. The
fourth quarter fiscal 2015 earnings include a $0.04 per share benefit
from the contingent royalty revenue items discussed above, offset by a
$0.12 per share reduction from a customer claim settlement. The
prior-year quarter included a $0.08 per share strategic asset impairment
charge. On a non-GAAP comparative basis, earnings per share from
continuing operations were $0.30 in the fourth quarter of fiscal 2015
versus $0.26 last year.
Medical Device Segment
The Medical Device business unit accounts for approximately
three-quarters of the Company’s revenue. This business, which includes
hydrophilic coatings and device drug delivery technologies, posted
revenue of $13.1 million in the fourth quarter of fiscal 2015, an
increase of 17% compared to the year-ago period as a result of the
contingent royalty revenue items noted above, as well as increases in
non-contingent hydrophilic royalties, reagent product sales, and
research and development contract coating services. Fiscal fourth
quarter 2015 hydrophilic coating royalty revenue was $8.9 million, an
increase of 13% compared to the year-earlier period, or 4% net of the
contingent royalty revenue items. The Medical Device business unit
generated $4.7 million of operating income during the fourth quarter, a
24% decline from the year-ago period, with the higher revenue offset by
the $2.5 million pre-tax customer claim settlement in September 2015, as
well as compensation costs.
Drug-Coated Balloon Update
“We are pleased with our recent milestone: obtaining investigational
device exemption (IDE) approval from the FDA to move forward with our SurVeil
DCB clinical trial,” said Maharaj. “We are currently developing plans
for up to three U.S. sites and expect to enroll our first patient in the
second quarter of fiscal 2016.”
In Vitro Diagnostics Segment
The In Vitro Diagnostics (IVD) business unit accounts for approximately
one-quarter of the Company’s revenue. Revenue for the fourth quarter of
fiscal 2015 totaled $4.2 million, an increase of 3% compared to the
year-ago period. The IVD business unit generated $1.3 million of
operating income in the fourth quarter of fiscal 2015, which reflects a
7% improvement from a year ago. Operating income benefited from higher
revenue and lower sales, general and administrative expenses.
Balance Sheet and Cash Flow
As of September 30, 2015, the Company had $55.6 million of cash and
investments and no outstanding debt. SurModics generated cash from
operating activities of $15.1 million in fiscal 2015. Capital
expenditures and share repurchases totaled $1.9 million and $20.0
million, respectively, for fiscal 2015. The $20.0 million of share
repurchases resulted from the first quarter fiscal 2015 accelerated
share repurchase program that was announced in SurModics’ fourth quarter
fiscal 2014 earnings release. The accelerated share repurchase
program was finalized in July 2015 with the retirement of an additional
89,721 common shares. In aggregate, the Company repurchased 847,864
common shares under this program in fiscal 2015.
Share Repurchase Program
SurModics also announced today that its Board of Directors has
authorized a $20 million increase to its existing share repurchase
program, bringing the total amount currently authorized and available
under the program to an aggregate of $30 million. Repurchases may be
effected through open market purchases, privately negotiated
transactions, block trades, accelerated share repurchase transactions,
tender offers or by any combination of these methods. The number of
shares to be repurchased and the timing of any repurchases will depend
on factors such as our stock price, economic and market conditions, the
relative attractiveness of corporate development opportunities and other
alternative uses of capital, and corporate and regulatory requirements.
The share repurchase authorization does not have a fixed expiration.
Fiscal 2016 Outlook
“We enter fiscal 2016 with three clear priorities: complete an
acquisition to accelerate our transformation to providing whole-products
solutions to our medical device customers, move ahead with a drug-coated
balloon first-in-human clinical trial, and continue to deliver
differentiated innovation and service in our medical device and in vitro
diagnostics businesses for current and prospective customers,” said
Maharaj.
SurModics estimates GAAP revenue for fiscal 2016 to be in the range of
$56.0 million to $60.0 million. Fiscal 2016 revenue anticipates the
previously disclosed expiration of the U. S. patent protecting the
Company’s third generation hydrophilic coatings. Management anticipates
diluted GAAP earnings to be in the range of $0.70 to $0.80 per share.
The fiscal 2016 earnings per share guidance includes an increase of
approximately 15% to 20% in research and development investment over
fiscal 2015 levels primarily related to drug coated balloon activities,
including paclitaxel and sirolimus applications of the drug-coated
balloon platform. The Company also expects slightly lower SG&A expenses
as compared to fiscal 2015 levels and a 33.0% to 35.0% income tax rate.
The earnings per share and income tax rate guidance exclude the impact
of any investment gains or losses. Capital expenditures for fiscal 2016
are projected to range between $3.0 and $3.5 million. The guidance also
excludes any shares SurModics may repurchase under the $30.0 million
authorization.
Live Webcast
SurModics will host a webcast at 7:30 a.m. CT (8:30 a.m. ET) today to
discuss fourth quarter results. To access the webcast, go to the
investor relations portion of the Company’s website at www.surmodics.com
and click on the webcast icon. A replay of the fourth quarter conference
call will be available by dialing 888-203-1112 and entering conference
call ID passcode 944630. The audio replay will be available beginning at
10:30 a.m. CT on Tuesday, November 10, 2015, until 10:30 a.m. CT on
Tuesday, November 17, 2015.
About SurModics SurVeil™ Drug-Coated Balloon
The SurVeil drug-coated balloon incorporates SurModics’ decades
of experience as a leading supplier of surface modification technologies
to the medical device industry. It includes a SurModics-proprietary
drug-excipient formulation for the balloon coating, and a new and
proprietary manufacturing process for the coating applications. It also
includes the SurModics Serene™ low-friction, low-particulate hydrophilic
coating on the catheter shaft. The SurVeil DCB is not available
for sale in the US and is for investigational use only. We plan to
initiate a first-in-human clinical trial using SurModics SurVeil drug-coated
balloon by the end of the second quarter of fiscal 2016.
About SurModics, Inc.
SurModics partners with the world’s leading and emerging medical device,
diagnostic and life science companies to develop and commercialize
innovative products designed to improve lives by enabling the detection
and treatment of disease. Our mission is to be a trusted partner to our
customers by providing the most advanced surface modification
technologies and in vitro diagnostic chemical components that
help enhance the well-being of patients. The Company’s core offerings
include surface modification coating technologies that impart lubricity,
prohealing, and biocompatibility characteristics and components for in
vitro diagnostic test kits and microarrays. SurModics’ strategy is
to build on the product and technical leadership within these fields,
and expand the core offerings to generate opportunities for longer term
sustained growth. SurModics is headquartered in Eden Prairie, Minnesota.
For more information about the Company, visit www.surmodics.com.
The content of SurModics’ website is not part of this press release or
part of any filings that the Company makes with the SEC.
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements. Statements that
are not historical or current facts, including statements about beliefs
and expectations regarding the Company’s performance in the near- and
long-term, including our revenue, earnings and cash flow expectations
for fiscal 2016, our fiscal 2016 priorities, and our SurVeil drug-coated
balloon, are forward-looking statements. Forward-looking statements
involve inherent risks and uncertainties, and important factors could
cause actual results to differ materially from those anticipated,
including (1) our ability to successfully develop, obtain regulatory
approval for, and commercialize our SurVeil drug-coated balloon
product, including the timing associated with the initiation of our
first-in-human clinical trial; (2) our reliance on third parties
(including our customers and licensees) and their failure to
successfully develop, obtain regulatory approval for, market and sell
products incorporating our technologies; (3) our ability to successfully
identify and acquire target companies or achieve expected benefits from
acquisitions that are consummated; (4) possible adverse market
conditions and possible adverse impacts on our cash flows, and (5) the
factors identified under “Risk Factors” in Part I, Item 1A of our Annual
Report on Form 10-K for the fiscal year ended September 30, 2014, and
updated in our subsequent reports filed with the SEC. These reports are
available in the Investors section of our website at www.surmodics.com
and at the SEC website at www.sec.gov.
Forward-looking statements speak only as of the date they are made, and
we undertake no obligation to update them in light of new information or
future events.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally
accepted accounting principles, or GAAP, SurModics is reporting non-GAAP
financial results including non-GAAP net income, non-GAAP diluted net
income per share, and EBITDA. We believe that these non-GAAP measures
provide meaningful insight into our operating performance excluding
certain event-specific matters, and provide an alternative perspective
of our results of operations. We use non-GAAP measures, including those
set forth in this release, to assess our operating performance and to
determine payout under our executive compensation programs. We believe
that presentation of certain non-GAAP measures allows investors to
review our results of operations from the same perspective as management
and our board of directors and facilitates comparisons of our current
results of operations. The method we use to produce non-GAAP results is
not in accordance with GAAP and may differ from the methods used by
other companies. Non-GAAP results should not be regarded as a substitute
for corresponding GAAP measures but instead should be utilized as a
supplemental measure of operating performance in evaluating our
business. Non-GAAP measures do have limitations in that they do not
reflect certain items that may have a material impact on our reported
financial results. As such, these non-GAAP measures should be viewed in
conjunction with both our financial statements prepared in accordance
with GAAP and the reconciliation of the supplemental non-GAAP financial
measures to the comparable GAAP results provided for the specific
periods presented, which are attached to this release.
|
|
|
|
|
|
|
|
|
|
|
|
SurModics, Inc. and Subsidiaries
|
Condensed Consolidated Statements of Income
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Years Ended September 30,
|
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties and license fees
|
|
|
|
$
|
9,197
|
|
|
$
|
8,098
|
|
|
|
$
|
31,763
|
|
|
$
|
30,277
|
|
Product sales
|
|
|
|
|
6,844
|
|
|
|
6,166
|
|
|
|
|
24,925
|
|
|
|
22,798
|
|
Research and development
|
|
|
|
|
1,323
|
|
|
|
1,072
|
|
|
|
|
5,210
|
|
|
|
4,364
|
|
Total revenue
|
|
|
|
|
17,364
|
|
|
|
15,336
|
|
|
|
|
61,898
|
|
|
|
57,439
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product costs
|
|
|
|
|
2,588
|
|
|
|
2,279
|
|
|
|
|
8,619
|
|
|
|
8,016
|
|
Research and development
|
|
|
|
|
4,326
|
|
|
|
4,062
|
|
|
|
|
16,165
|
|
|
|
15,550
|
|
Selling, general and administrative
|
|
|
|
|
3,684
|
|
|
|
3,561
|
|
|
|
|
15,525
|
|
|
|
15,297
|
|
Claim settlement
|
|
|
|
|
2,500
|
|
|
―
|
|
|
|
|
2,500
|
|
|
―
|
|
Total operating costs and expenses
|
|
|
|
|
13,098
|
|
|
|
9,902
|
|
|
|
|
42,809
|
|
|
|
38,863
|
|
Operating income from continuing operations
|
|
|
|
|
4,266
|
|
|
|
5,434
|
|
|
|
|
19,089
|
|
|
|
18,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (loss) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income
|
|
|
|
|
7
|
|
|
|
44
|
|
|
|
|
156
|
|
|
|
238
|
|
Other income
|
|
|
|
―
|
|
|
|
8
|
|
|
|
|
496
|
|
|
|
842
|
|
Impairment loss on investments
|
|
|
|
―
|
|
|
|
(1,184
|
)
|
|
|
―
|
|
|
|
(1,184
|
)
|
Other (loss) income, net
|
|
|
|
|
7
|
|
|
|
(1,132
|
)
|
|
|
|
652
|
|
|
|
(104
|
)
|
Income from continuing operations before income taxes
|
|
|
|
|
4,273
|
|
|
|
4,302
|
|
|
|
|
19,741
|
|
|
|
18,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
|
|
|
|
(1,415
|
)
|
|
|
(1,858
|
)
|
|
|
|
(6,294
|
)
|
|
|
(6,265
|
)
|
Income from continuing operations
|
|
|
|
|
2,858
|
|
|
|
2,444
|
|
|
|
|
13,447
|
|
|
|
12,207
|
|
Loss from discontinued operations, net of taxes
|
|
|
|
―
|
|
|
|
(100
|
)
|
|
|
―
|
|
|
|
(176
|
)
|
Net income
|
|
|
|
$
|
2,858
|
|
|
$
|
2,344
|
|
|
|
$
|
13,447
|
|
|
$
|
12,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
$
|
0.22
|
|
|
$
|
0.18
|
|
|
|
$
|
1.03
|
|
|
$
|
0.90
|
|
Discontinued operations
|
|
|
|
|
(0.00
|
)
|
|
|
(0.01
|
)
|
|
|
|
(0.00
|
)
|
|
|
(0.01
|
)
|
Net income
|
|
|
|
$
|
0.22
|
|
|
$
|
0.17
|
|
|
|
$
|
1.03
|
|
|
$
|
0.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
$
|
0.22
|
|
|
$
|
0.18
|
|
|
|
$
|
1.01
|
|
|
$
|
0.88
|
|
Discontinued operations
|
|
|
|
|
(0.00
|
)
|
|
|
(0.01
|
)
|
|
|
|
(0.00
|
)
|
|
|
(0.01
|
)
|
Net income
|
|
|
|
$
|
0.22
|
|
|
$
|
0.17
|
|
|
|
$
|
1.01
|
|
|
$
|
0.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
12,934
|
|
|
|
13,593
|
|
|
|
|
13,029
|
|
|
|
13,632
|
|
Diluted
|
|
|
|
|
13,190
|
|
|
|
13,829
|
|
|
|
|
13,289
|
|
|
|
13,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SurModics, Inc. and Subsidiaries
|
Condensed Consolidated Balance Sheets
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015
|
|
|
September 30, 2014
|
|
|
|
|
(Unaudited)
|
Assets
|
|
|
|
|
|
|
|
Cash and short-term investments
|
|
|
|
$
|
55,588
|
|
|
$
|
46,551
|
Accounts receivable
|
|
|
|
|
7,478
|
|
|
|
4,751
|
Inventories
|
|
|
|
|
2,979
|
|
|
|
2,817
|
Other current assets
|
|
|
|
|
1,744
|
|
|
|
1,145
|
Current assets of discontinued operations
|
|
|
|
―
|
|
|
|
16
|
Total current assets
|
|
|
|
|
67,789
|
|
|
|
55,280
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
12,968
|
|
|
|
13,133
|
Long-term investments
|
|
|
|
―
|
|
|
|
16,823
|
Other assets
|
|
|
|
|
19,453
|
|
|
|
19,653
|
Total assets
|
|
|
|
$
|
100,210
|
|
|
$
|
104,889
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
$
|
4,700
|
|
|
$
|
4,022
|
Current liabilities of discontinued operations
|
|
|
|
―
|
|
|
|
45
|
Total current liabilities
|
|
|
|
|
4,700
|
|
|
|
4,067
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
|
|
2,137
|
|
|
|
2,071
|
Total stockholders’ equity
|
|
|
|
|
93,373
|
|
|
|
98,751
|
Total liabilities and stockholders’ equity
|
|
|
|
$
|
100,210
|
|
|
$
|
104,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SurModics, Inc. and Subsidiaries
|
Condensed Consolidated Statements of Cash Flows
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended September 30,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
(Unaudited)
|
Operating Activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
13,447
|
|
|
|
$
|
12,031
|
|
Loss from discontinued operations
|
|
|
|
―
|
|
|
|
|
176
|
|
Depreciation and amortization
|
|
|
|
|
2,805
|
|
|
|
|
2,715
|
|
Stock-based compensation
|
|
|
|
|
2,381
|
|
|
|
|
3,337
|
|
Gains on sale of available-for-sale securities and strategic
investments
|
|
|
|
|
(492
|
)
|
|
|
|
(842
|
)
|
Impairment loss on strategic investment
|
|
|
|
―
|
|
|
|
|
1,184
|
|
Net other operating activities
|
|
|
|
|
(603
|
)
|
|
|
|
(586
|
)
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(2,727
|
)
|
|
|
|
581
|
|
Accounts payable and accrued liabilities
|
|
|
|
|
373
|
|
|
|
|
(738
|
)
|
Income taxes
|
|
|
|
|
(84
|
)
|
|
|
|
116
|
|
Net change in other operating assets and liabilities
|
|
|
|
|
(34
|
)
|
|
|
|
563
|
|
Net cash provided by operating activities from continuing operations
|
|
|
|
|
15,066
|
|
|
|
|
18,537
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
Net purchases of property and equipment
|
|
|
|
|
(1,877
|
)
|
|
|
|
(2,278
|
)
|
Cash transferred to discontinued operations
|
|
|
|
|
(45
|
)
|
|
|
|
(354
|
)
|
Net other investing activities
|
|
|
|
|
18,616
|
|
|
|
|
25,019
|
|
Net cash provided by investing activities from continuing operations
|
|
|
|
|
16,694
|
|
|
|
|
22,387
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
|
Purchase of common stock to fund employee taxes
|
|
|
|
|
(825
|
)
|
|
|
|
(1,111
|
)
|
Repurchase of common stock
|
|
|
|
|
(20,000
|
)
|
|
|
|
(12,545
|
)
|
Net other financing activities
|
|
|
|
|
1,142
|
|
|
|
|
748
|
|
Net cash used in financing activities from continuing operations
|
|
|
|
|
(19,683
|
)
|
|
|
|
(12,908
|
)
|
Net cash provided by continuing operations
|
|
|
|
|
12,077
|
|
|
|
|
28,016
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
|
|
(45
|
)
|
|
|
|
(354
|
)
|
Net cash provided by financing activities
|
|
|
|
|
45
|
|
|
|
|
354
|
|
Net cash provided by discontinued operations
|
|
|
|
―
|
|
|
|
―
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
|
|
12,077
|
|
|
|
|
28,016
|
|
Cash and Cash Equivalents:
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
|
|
|
43,511
|
|
|
|
|
15,495
|
|
End of year
|
|
|
|
$
|
55,588
|
|
|
|
$
|
43,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SurModics, Inc. and Subsidiaries
|
Supplemental Segment Information
|
(in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
% Change
|
Revenue
|
|
|
|
|
|
% of Total
|
|
|
|
|
% of Total
|
|
|
|
Medical Device
|
|
|
|
$
|
13,118
|
|
75.5
|
%
|
|
|
$
|
11,216
|
|
73.1
|
%
|
|
|
16.9
|
%
|
In Vitro Diagnostics
|
|
|
|
|
4,246
|
|
24.5
|
|
|
|
|
4,120
|
|
26.9
|
|
|
|
3.1
|
|
Total revenue
|
|
|
|
$
|
17,364
|
|
100.0
|
%
|
|
|
$
|
15,336
|
|
100.0
|
%
|
|
|
13.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended September 30,
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
% Change
|
Revenue
|
|
|
|
|
|
% of Total
|
|
|
|
|
% of Total
|
|
|
|
Medical Device
|
|
|
|
$
|
45,944
|
|
74.2
|
%
|
|
|
$
|
43,068
|
|
75.0
|
%
|
|
|
6.7
|
%
|
In Vitro Diagnostics
|
|
|
|
|
15,954
|
|
25.8
|
|
|
|
|
14,371
|
|
25.0
|
|
|
|
11.0
|
|
Total revenue
|
|
|
|
$
|
61,898
|
|
100.0
|
%
|
|
|
$
|
57,439
|
|
100.0
|
%
|
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Years Ended September 30,
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
Operating Income
|
|
|
|
|
|
|
|
|
|
Medical Device
|
|
$
|
4,687
|
|
|
$
|
6,170
|
|
|
|
$
|
21,192
|
|
|
$
|
22,636
|
|
In Vitro Diagnostics
|
|
|
1,264
|
|
|
|
1,182
|
|
|
|
|
4,484
|
|
|
|
3,459
|
|
Corporate
|
|
|
(1,685
|
)
|
|
|
(1,918
|
)
|
|
|
|
(6,587
|
)
|
|
|
(7,519
|
)
|
Total operating income
|
|
$
|
4,266
|
|
|
$
|
5,434
|
|
|
|
$
|
19,089
|
|
|
$
|
18,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SurModics, Inc. and Subsidiaries
|
Supplemental Non-GAAP Information
|
For the Three Months Ended September 30, 2015
|
(in thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported GAAP(1)
|
|
|
Adjustments
|
|
|
|
Adjusted Non-GAAP(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Royalties and license fees
|
|
|
|
$
|
9,197
|
|
|
$
|
(763
|
)
|
|
|
|
$
|
8,434
|
Product sales
|
|
|
|
|
6,844
|
|
|
|
|
|
|
|
6,844
|
Research and development
|
|
|
|
|
1,323
|
|
|
|
|
|
|
|
1,323
|
Total revenue
|
|
|
|
$
|
17,364
|
|
|
$
|
(763
|
)
|
|
|
|
$
|
16,601
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
$
|
4,266
|
|
|
$
|
1,737
|
|
|
(3
|
)
|
|
$
|
6,003
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
$
|
2,858
|
|
|
$
|
1,124
|
|
|
(4
|
)
|
|
$
|
3,982
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share (5)
|
|
|
|
$
|
0.22
|
|
|
|
|
|
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Reflects operating results in accordance with U.S. generally
accepted accounting principles (GAAP).
|
(2)
|
|
Adjusted Non-GAAP amount considers a $763 reduction in revenue
related to pre-fourth quarter fiscal 2015 royalties recognized
during the quarter as two customer-related contingencies were
resolved; and a $2,500 adjustment reducing expense, and increase
operating income for a customer claim settlement. These adjustments
resulted in a net tax expense of $613.
|
(3)
|
|
Adjusted to reflect the pre-tax adjustments discussed in note (2)
above.
|
(4)
|
|
Adjusted to reflect the after-tax impact of the adjustments
discussed in note (2) above.
|
(5)
|
|
Diluted earnings per share from continuing operations is calculated
using the diluted weighted average shares outstanding for the period
presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SurModics, Inc. and Subsidiaries
|
Supplemental Non-GAAP Information
|
For the Three Months Ended September 30, 2014
|
(in thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported GAAP(1)
|
|
|
Adjustments
|
|
|
|
Adjusted Non-GAAP(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Royalties and license fees
|
|
|
|
$
|
8,098
|
|
|
|
|
|
|
$
|
8,098
|
Product sales
|
|
|
|
|
6,166
|
|
|
|
|
|
|
|
6,166
|
Research and development
|
|
|
|
|
1,072
|
|
|
|
|
|
|
|
1,072
|
Total revenue
|
|
|
|
$
|
15,336
|
|
|
|
|
|
|
$
|
15,336
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income from continuing operations
|
|
|
|
$
|
5,434
|
|
|
|
|
|
|
$
|
5,434
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
$
|
2,444
|
|
|
$
|
1,184
|
|
(3
|
)
|
|
$
|
3,628
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations(4)
|
|
|
|
$
|
0.18
|
|
|
|
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Reflects operating results in accordance with U.S. generally
accepted accounting principles (GAAP).
|
(2)
|
|
Adjusted Non-GAAP amounts consider adjustments to increase net
investment income by $1,184 associated with an investment impairment
charge associated with the strategic investment in ThermopeutiX. The
adjustment to increase net investment income did not generate an
income tax expense as there was an offsetting release of a capital
loss valuation reserve allowance.
|
(3)
|
|
Adjusted to reflect the adjustment discussed in note (2) above.
|
(4)
|
|
Diluted earnings per share from continuing operations is calculated
using the diluted weighted average shares outstanding for the period
presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SurModics, Inc. and Subsidiaries
|
Supplemental Non-GAAP Information
|
For the Year Ended September 30, 2015
|
(in thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported GAAP(1)
|
|
|
Adjustments
|
|
|
|
Adjusted Non-GAAP(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Royalties and license fees
|
|
|
|
$
|
31,763
|
|
|
$
|
(560
|
)
|
|
|
|
$
|
31,203
|
Product sales
|
|
|
|
|
24,925
|
|
|
|
|
|
|
|
24,925
|
Research and development
|
|
|
|
|
5,210
|
|
|
|
|
|
|
|
5,210
|
Total revenue
|
|
|
|
$
|
61,898
|
|
|
$
|
(560
|
)
|
|
|
|
$
|
61,338
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
$
|
19,089
|
|
|
$
|
1,940
|
|
|
(3
|
)
|
|
$
|
21,029
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
$
|
13,447
|
|
|
$
|
531
|
|
|
(4
|
)
|
|
$
|
13,978
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share (5)
|
|
|
|
$
|
1.01
|
|
|
|
|
|
|
$
|
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Reflects operating results in accordance with U.S. generally
accepted accounting principles (GAAP).
|
(2)
|
|
Adjusted to reflect a reduction in revenue by $560 for the portion
of a one-time customer royalty payment related to periods prior to
fiscal 2015, a $523 reduction in net investment income associated
with the sale of Intersect ENT shares and a $2,500 increase to
operating income related to a customer claim settlement. The
adjustments to reduce royalty revenues and increase operating income
related to a claim settlement reflects a net tax expense of $685.
The reduction for net investment income did not generate a tax
benefit as there was an offsetting establishment of a capital loss
valuation reserve. Finally, the income tax provision is increased to
reflect a discrete income tax benefits of $201 associated with the
December 2014 signing of the Tax Increase Prevention Act of 2014
which retroactively reinstated federal R&D income tax credits for
calendar 2014.
|
(3)
|
|
Adjusted to reflect the pre-tax impact of the royalty revenue and
customer claim settlement adjustments discussed in note (2) above.
|
(4)
|
|
Adjusted to reflect the after-tax impact of the adjustments
discussed in note (2) above.
|
(5)
|
|
Diluted net income per share is calculated using the diluted
weighted average shares outstanding for the period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SurModics, Inc. and Subsidiaries
|
Supplemental Non-GAAP Information
|
For the Year Ended September 30, 2014
|
(in thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported GAAP(1)
|
|
|
Adjustments
|
|
|
|
Adjusted Non-GAAP(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Royalties and license fees
|
|
|
|
$
|
30,277
|
|
|
|
|
|
|
$
|
30,277
|
Product sales
|
|
|
|
|
22,798
|
|
|
|
|
|
|
|
22,798
|
Research and development
|
|
|
|
|
4,364
|
|
|
|
|
|
|
|
4,364
|
Total revenue
|
|
|
|
$
|
57,439
|
|
|
|
|
|
|
$
|
57,439
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
$
|
18,576
|
|
|
$
|
914
|
|
(3
|
)
|
|
$
|
19,490
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
$
|
12,207
|
|
|
$
|
1,055
|
|
(4
|
)
|
|
$
|
13,262
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations(5)
|
|
|
|
$
|
0.88
|
|
|
|
|
|
|
$
|
0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Reflects operating results in accordance with U.S. generally
accepted accounting principles (GAAP).
|
(2)
|
|
Adjusted Non-GAAP amounts consider adjustments to reduce operating
expenses by $914 associated with acceleration of Board of Director
stock-based compensation awards, a $709 reduction in net investment
income associated with contingent milestone payments related to the
sale of Vessix Vascular shares which were sold in fiscal 2014 and a
$1,184 increase in net investment income associated with an
investment impairment charge associated with the strategic
investment in ThermopeutiX. The income tax provision includes a $334
expense associated with the Board of Director stock-based
compensation expense reduction. The adjustments to increase net
investment income did not generate an income tax expense as there
was an offsetting release of a capital loss valuation reserve
allowance.
|
(3)
|
|
Adjusted to reflect the pre-tax impact of the operating expense
adjustment discussed in note (2) above.
|
(4)
|
|
Adjusted to reflect the after-tax impact of the adjustments
discussed in note in (2) above.
|
(5)
|
|
Diluted earnings per share from continuing operations is calculated
using the diluted weighted average shares outstanding for the period
presented.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151110005593/en/
Copyright Business Wire 2015