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Dec 31, 2019
Anika Q4 2019 Earnings Report
Reported financial results with revenue increase and acquisitions completed.
Key Takeaways
Anika Therapeutics reported a 10% year-over-year increase in total revenue for the fourth quarter of 2019. The company completed acquisitions of Parcus Medical and Arthrosurface and expects total revenue growth in the 40% to 44% range for the full year 2020.
Total revenue increased 10% year-over-year for Q4 2019.
Acquisitions of Parcus Medical and Arthrosurface were completed.
Company expects total revenue growth in the 40% to 44% range for full year 2020.
Non-GAAP adjusted EBITDA is expected to be in the high-$40 million to high-$50 million range.
Anika
Anika
Forward Guidance
Anika Therapeutics expects total revenue to be in the range of $160 million to $165 million for the full year of 2020. Total operating expenses are anticipated to be in the $150 million to $155 million range. Non-GAAP adjusted EBITDA is expected to be in the high-$40 million to high-$50 million range, which is based on anticipated U.S. GAAP net income in the $5 million to $12 million range. Non-GAAP adjusted net income is expected to be in the mid-$20 million to low-$30 million range.
Positive Outlook
- Total revenue to be in the range of $160 million to $165 million for the full year of 2020.
- Licensing, milestone and contract revenue is expected to be flat for the year.
- Product gross margin is expected to return to the 70% range in 2021.
- Non-GAAP adjusted EBITDA is expected to be in the high-$40 million to high-$50 million range.
- Capital expenditures are expected to be between $5 million and $7 million for 2020.
Challenges Ahead
- Total operating expenses are anticipated to be in the $150 million to $155 million range.
- Product gross margin is expected to be in the low-60% range due to acquisition related one-time fair-value accounting adjustments.
- Non-GAAP adjusted EBITDA and non-GAAP adjusted net income exclude non-cash charges related to acquisition purchase accounting and non-recurring integration costs currently estimated to be approximately $27 million.
- The final fair value determination of acquisition-related purchase accounting may differ materially from the preliminary estimates.
- This guidance incorporates the Company’s best estimates for the acquired Arthrosurface and Parcus Medical businesses, which closed in late January and early February of 2020.