HAYWARD, Calif., Feb. 19, 2013 /PRNewswire/ -- Solta Medical, Inc. (NASDAQ: SLTM), a global leader in the medical aesthetics market, today announced results for the fourth quarter ended December 31, 2012. Revenue for the fourth quarter was $39.8 million, an increase of $6.6 million, or 20%, as compared to the fourth quarter of 2011. Revenue from Liposonix, the Company's non-invasive fat reduction system, was $7.6 million, which was generated from shipments of 90 systems and associated consumables. For the full year 2012, revenue of $144.5 million grew year-over-year by $28.6 million or 25%.
"The fourth quarter provided a strong ending to a productive year for Solta," said Stephen J. Fanning, Chairman, President and CEO of Solta. "We completed the integration of the Liposonix acquisition ahead of plan and the first year of the Liposonix commercial launch exceeded our expectations. During the year, we shipped approximately 360 Liposonix systems, generating $32 million in revenue. We also generated double digit revenue growth from our Clear + Brilliant brand. We continued to execute well, extending our broad product portfolio through a large distribution network and focusing on recurring revenue. The increase in the gross margin, and our delivery of positive non-GAAP EBITDA in the fourth quarter and in every quarter over the past three years demonstrate the leverage in our business model. We also generated cash from operations of $1.4 million in the fourth quarter and $4.4 million for the full year ended 2012, and finished the year with $38 million in cash on the balance sheet."
Fourth Quarter Financial HighlightsTotal product revenue from treatment tips and consumables for the quarter was $18.8 million, a year-over-year increase of $2.9 million or 18%, and represented 47% of total revenue. Revenue from North America and international markets rose year-over-year by 17% and 23%, respectively.
GAAP net loss for the quarter was $45,000 as compared to GAAP net income of $1.0 million reported for the fourth quarter of 2011. The prior year net income included the one-time release of a valuation allowance of $6.4 million to offset deferred tax liabilities generated from acquiring Liposonix. Non-GAAP net income for the quarter was $2.3 million, or $0.03 per diluted share, as compared to a non-GAAP net loss of $23,000 for same period last year. Non-GAAP adjusted EBITDA for the quarter was $4.0 million compared to $1.3 million for the same period last year.
The Company's GAAP results for the quarter include $1.8 million of amortization and other acquisition related charges, $1.0 million of non-cash stock based compensation charges, and a $0.5 million credit adjustment for the fair value reassessment of the expected earn out payments associated with the acquisition of Liposonix. The Company provides non-GAAP financial measures that exclude these charges and adjustments. A reconciliation of GAAP to non-GAAP results is provided in the tables included in this release.
Full Year 2012 Financial ResultsTotal product revenue from treatment tips and consumables for the year was $70.6 million, a year-over-year increase of $7.3 million or 11%, and represented 49% of total revenue. Revenue from North America and international markets rose year-over-year by 34% and 17%, respectively.
The GAAP net loss for the year was $38.0 million, or a loss of $0.59 per share, as compared to a net loss of $1.3 million, or a loss of $0.02 per share reported for the full year 2011. Non-GAAP net income for the full year was $6.1 million, or $0.09 per diluted share as compared to non-GAAP net income of $3.6 million, or $0.06 per diluted share reported for the full year 2011. Non-GAAP EBITDA for the full year 2012 was $12.0 million as compared to $7.5 million in the prior year.
Solta Medical's GAAP results for the full year 2012 include charges for the fair value reassessment of the expected earn out payments associated with the acquisition of Liposonix of $32.1 million, non-cash amortization and other acquisition related charges of $7.5 million, and non-cash stock based compensation charges of $4.6 million. The Company provides additional non-GAAP financial measures that exclude these charges and expenses. A reconciliation of GAAP to non-GAAP results is provided in the tables included in this release.
"With the pending acquisition of Sound Surgical, we anticipate continued growth, execution, and operating leverage in 2013. We expect to close the acquisition of Sound Surgical Technologies in the coming weeks and to expeditiously implement our integration plans. With the addition of Sound Surgical's VASER® product line, we look forward to offering our customers an expanded portfolio of innovative, safe, and effective body contouring solutions," said Mr. Fanning.
Financial Outlook for 2013The company provided its preliminary financial outlook for 2013 which includes the pending acquisition of Sound Surgical Technologies as follows:
Non-GAAP PresentationTo supplement the condensed consolidated financial information presented on a GAAP basis, management has provided non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share measures that exclude the impact of acquisition related adjustments, severance costs, acquisition related costs, and stock-based compensation expenses. The Company believes that these non-GAAP financial measures provide investors with insight into what is used by management to conduct a more meaningful and consistent comparison of the Company's ongoing operating results and trends, compared with historical results. This presentation is also consistent with the measures management uses to measure the performance of ongoing operating results against prior periods and against our internally developed targets. There are limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP and the reconciliation of non-GAAP financial measures attached to this release.
Conference Call Information The Company will host a conference call and webcast today, Tuesday, February 19, 2013, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific) to discuss the financial results and current corporate developments. The dial-in number for the conference call is 877-941-0844 for domestic participants and 480-629-9835 for international participants.
About Solta Medical, Inc.Solta Medical, Inc. is a global leader in the medical aesthetics market providing innovative, safe, and effective solutions for patients that enhance and expand the practice of medical aesthetics for physicians. The company offers six aesthetic energy devices to address a range of issues, including skin resurfacing and rejuvenation with Fraxel® and Clear + Brilliant(TM), body contouring and skin tightening with Liposonix® and Thermage® and acne reduction with Isolaz® and CLARO(TM). As the innovator and leader in fractional laser technology, Fraxel delivers minimally invasive clinical solutions to resurface aging and sun damaged skin. Using similar fractional laser technology, Clear + Brilliant is a unique, cost-effective treatment to prevent and improve the early signs of photoaging. For body contouring, Liposonix is a non-surgical treatment to reduce waist circumference with advanced high-intensity focused ultrasound (HIFU) technology to permanently destroy targeted fat beneath the skin. Thermage is an innovative, non-invasive radiofrequency procedure for tightening and contouring skin. Isolaz was the first laser or light based system indicated for the treatment of inflammatory acne, comedonal acne, pustular acne, and mild-to-moderate inflammatory acne. CLARO is a personal care acne system that is the first FDA cleared over-the-counter IPL device that uses a powerful combination of both heat and light to clear skin quickly and naturally. More than two million procedures have been performed with Solta Medical's portfolio of products around the world. For more information about Solta Medical, call 1-877-782-2286 or log on to www.Solta.com.
Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding the ability to improve operating leverage, the close of the Sound Surgical acquisition, and the financial outlook for 2013. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause Solta Medical's actual results to differ materially from the statements contained herein. Factors that might cause such a difference include the risk that physician adoption of the Company's systems does not grow, the risk that customers do not continue to purchase treatment tips, the possibility that the market for the sale of new products does not develop as expected, and the risks relating to Solta Medical's ability to achieve its stated financial goals as a result of, among other things, economic conditions and consumer and physician confidence causing changes in consumer and physician spending habits that affect demand for the Company's products and treatments. Further information on potential risk factors that could affect Solta Medical's business and its financial results are detailed in its Form 10-K for the year ended December 31, 2011, and other reports as filed from time to time with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speaks only as of the date they are made. Solta Medical undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.
Web Site: http://www.Solta.com
Solta Medical, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands of dollars, except share and per share data)(unaudited)Three Months EndedTwelve Months EndedDecember 31,December 31,2012201120122011Net revenue
$39,801$33,168$144,545$115,984Cost of revenue
24,17119,10489,17773,620Operating expenses:Sales and marketing
13,64312,24453,66546,761Research and development
5,3825,24620,54916,124General and administrative
4,8055,44018,63717,443Remeasurement of contingent consideration liability
(500)1,20032,100322Total operating expenses
23,33024,130124,95180,650Income (loss) from operations
(936)(119)(2,014)(209)Other income and expense, net
77(121)(24)(309)Loss before income taxes
(12)(5,259)(37,798)(7,489)Income tax provision (benefit)
33(6,306)210(6,160)Net income (loss)
($45)$1,047($38,008)($1,329)Net income (loss) per share:Basic
($0.00)$0.02($0.59)($0.02)Weighted average shares outstanding used in calculating net income (loss) per share:Basic
68,636,72562,044,55564,437,42760,573,428Solta Medical, Inc.NON-GAAP RECONCILIATION OF GROSS MARGIN, OPERATING INCOME (LOSS), EBITDA, NET INCOME (LOSS) AND NET INCOME (LOSS) PER SHARE (in thousands, except share and per share data)(unaudited)Three Months EndedTwelve Months EndedDecember 31,December 31,2012201120122011GAAP Gross margin
$24,171$19,104$89,177$73,620GAAP gross margin as % of sales
61%58%62%63%Non-GAAP adjustments to gross margin:GAAP Gross margin
$24,171$19,104$89,177$73,620Amortization and other non-cash acquisition related charges
133173499442Non-GAAP gross margin
$25,679$20,695$95,458$78,013Non-GAAP gross margin as % of sales
65%62%66%67%GAAP income (loss) from operations
$841($5,026)($35,774)($7,030)Non-GAAP adjustments to net income (loss) from operations:Amortization and other non-cash acquisition related charges
1,7301,7457,2055,075Remeasurement of contingent consideration liability
1,0101,0164,5633,297Non-GAAP income from operations
8479913,6653,269Non-GAAP Adjusted EBITDA
$4,029$1,306$12,028$7,548GAAP net income (loss)($45)$1,047($38,008)($1,329)Non-GAAP adjustments to net income (loss):Amortization and other non-cash acquisition related charges
1,7301,7457,2055,075Remeasurement of contingent consideration liability
1,0101,0164,5633,297Acquisition-related income tax benefit
-(6,411)-(6,411)Non-GAAP net income (loss)
$2,296($23)$6,129$3,569GAAP basic net income (loss) per share
($0.00)$0.02($0.59)($0.02)Non-GAAP adjustments to basic income (loss) per share:Amortization and other non-cash acquisition related charges
$0.03$0.03$0.11$0.08Remeasurement of contingent consideration liability
$0.01$0.02$0.07$0.05Acquisition-related income tax benefit
$0.00($0.11)$0.00($0.11)Non-GAAP basic net income (loss) per share
$0.03($0.00)$0.10$0.06Non-GAAP diluted net income (loss) per share
$0.03($0.00)$0.09$0.06GAAP weighted average shares outstanding used in calculating basic net income (loss) per share
68,636,72560,959,18964,437,42760,573,428GAAP weighted average shares outstanding used in calculating diluted net income (loss) per share
68,636,72562,044,55564,437,42760,573,428Adjustments for dilutive potential common stock
4,778,8911,806,4415,170,8813,555,057Weighted average shares outstanding used in calculating non-GAAP diluted net income (loss) per share
73,415,61663,850,99669,608,30864,128,485 Solta Medical, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands of dollars, except share and per share data)(unaudited)December 31,December 31,20122011ASSETSCurrent assets:Cash and cash equivalents
16,61116,524Prepaid expenses and other current assets
8,4768,626Total current assets
83,75455,849Property and equipment, net
6,4016,818Purchased intangible assets, net
$229,723$209,298LIABILITIES AND STOCKHOLDERS' EQUITYLiabilities:Accounts payable
17,34316,126Current portion of contingent consideration liability
21,400—Current portion of deferred revenue
637610Total current liabilities
58,99334,465Deferred revenue, net of current portion
683824Term loan, net of current portion
18,06316,959Non-current tax liabilities
2,4782,975Contingent consideration liability
119,61683,115Stockholders' equity:Common stock, $0.001 par value:100,000,000 shares authorized68,795,987 and 61,130,740 shares issued and outstanding at December 31, 2012 and December 31, 2011
6961Additional paid-in capital
(110,451)(72,443)Total stockholders' equity
110,107126,183Total liabilities and stockholders' equity
|SOURCE Solta Medical, Inc.|
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