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CST: 11/11/2019 17:10:49   

Alimera Sciences Announces Third Quarter 2019 Financial Results and Provides Corporate Update

13 Days ago

Third Quarter and Recent Company Highlights:

  • Consolidated Net Revenue Up 16% Compared to Third Quarter 2018
  • International Net Revenue Up 62% Compared to Third Quarter 2018
  • Launch of ILUVIEN ® for Non-Infectious Posterior Uveitis in U.K. and Germany
  • Approval of ILUVIEN for Non-Infectious Posterior Uveitis Indication in Portugal

ATLANTA, Oct. 29, 2019 (GLOBE NEWSWIRE) -- Alimera Sciences, Inc. (NASDAQ: ALIM) (Alimera), a leader in the commercialization and development of prescription ophthalmology treatments for the management of retinal diseases, announces financial results for the quarter ended September 30, 2019. Alimera will host a conference call on Wednesday, October 30, 2019 at 9:00 AM ET to review these financial results and provide an update on corporate developments.

“We are pleased to report consolidated revenue of $12.9 million for the third quarter of 2019, a 16% gain over the third quarter of last year and significant growth over the recently reported second quarter of 2019,” said Rick Eiswirth, President and CEO of Alimera. “Our international business contributed greatly to our growth, delivering a 62% increase in revenue on a combined basis, and our U.S. sales team, which was fully staffed, delivered increases in end user demand month-to-month during the quarter.”

Third Quarter 2019 Financial Results

Net Revenue

Consolidated net revenue for the third quarter of 2019 grew 16% to $12.9 million, compared to $11.1 million for the third quarter of 2018. U.S. net revenue was $8.7 million during the third quarter of 2019, up 2% from $8.5 million during the same period in 2018, and up 19% over the second quarter of 2019. End user demand, which represents units purchased by physicians and pharmacies from Alimera’s U.S. distributors, decreased slightly for the third quarter of 2019, to 973 units compared to 978 units from the third quarter of 2018, but increased sequentially from 917 units in the second quarter of 2019 after the sales force was fully staffed.

The discrepancy between GAAP revenue and end user demand in the U.S. is due to the timing of distributor purchases from quarter to quarter. In the third quarter of 2018, Alimera’s distributors purchased approximately 5% more units than they sold to end users, increasing their stock on hand during that quarter. In the third quarter of 2019, Alimera’s distributors purchased approximately 9% more units than they sold to end users, increasing their stock on hand during the quarter.

International net revenue increased 62% to approximately $4.2 million during the third quarter of 2019, compared to approximately $2.6 million for the same period during 2018, driven by increased unit sales across all markets. We expect revenue in the international segment to fluctuate from quarter to quarter depending primarily on the timing and size of our international distributor ordering patterns.

Operating Expenses
Total operating expenses for the third quarter of 2019 increased by $600,000 or 5% to $13.0 million, compared to $12.4 million during the same period of 2018. The increase was primarily attributable to an approximately $900,000 increase in sales and marketing expenses, partially offset by a $300,000 decrease in general and administrative expenses. The increase in sales and marketing expenses was due to increases in personnel costs and marketing costs, including those related to our direct-to-patient campaign. 

Net Loss and Non-GAAP Adjusted EBITDA
For the third quarter of 2019, Alimera reported a net loss of approximately $3.1 million, compared to a net loss of $3.5 million for the same period in 2018. “Adjusted EBITDA,” a non-GAAP financial measure defined below, was a loss of approximately $500,000 for the third quarter of 2019, compared to a similar Adjusted EBITDA loss for the third quarter of 2018.

Net (Loss) Income per Share
Basic and diluted net loss per share for the third quarter of 2019 was $0.04 on approximately 71.0 million weighted average shares outstanding. This compares to basic net income per share for the third quarter of 2018 of $0.40 on approximately 88.0 million weighted average shares outstanding, which includes approximately 17.9 million participating securities. Diluted net income per share for the third quarter of 2018 was $0.39 on approximately 88.5 million weighted average shares outstanding, which includes approximately 18.5 million dilutive and participating securities. Net income available to stockholders for the third quarter of 2018 was primarily attributable to the gain on the extinguishment of Alimera’s Series B Convertible Preferred Stock resulting from its exchange in September 2018 for new Series C Convertible Preferred Stock.

Cash and Cash Equivalents
As of September 30, 2019, Alimera had cash and cash equivalents of approximately $7.9 million, compared to $13.0 million in cash and cash equivalents as of December 31, 2018.

On October 25, 2019, Alimera announced a $20.0 million equity purchase agreement with Lincoln Park Capital Fund, LLC. Under that agreement, Lincoln Park has purchased $1.0 million of Alimera’s registered common stock. This agreement will provide a flexible and efficient option to invest in Alimera’s current business to pursue strategies to leverage its global sales infrastructure and build a leading company focused on the treatment of retinal diseases.

Definition of Non-GAAP Financial Measure
For purposes of this press release, “Adjusted EBITDA” is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation expenses, net unrealized gains and losses from foreign currency exchange transactions, losses on extinguishment of debt and severance expenses. Please refer to the sections of this press release entitled “Non-GAAP Financial Measure” and “Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA.”

Conference Call to Be Held October 30, 2019
A live conference call will be hosted on October 30, 2019 at 9:00am eastern time by Rick Eiswirth, president and chief executive officer, and Phil Jones, chief financial officer, to discuss Alimera’s financial results. Please refer to the information below for conference call dial-in information and webcast registration.

Conference date: Wednesday, October 30, 2019, 9:00 AM ET
Conference dial-in: 866-777-2509
International dial-in: 412-317-5413
Conference Call Name: Alimera Sciences (Nasdaq: ALIM) Third Quarter 2019 Financial Results and Corporate Update Conference Call
Conference Call Pre-registration: 
Participants can register for the conference by navigating to http://dpregister.com/10136395
Please note that registered participants will receive their dial in number upon registration and will dial directly into the call without delay.
Live Webcast URL: https://services.choruscall.com/links/alimera191030.html

A replay will be available on Alimera’s website, www.alimerasciences.com, under “Investor Relations” one hour following the live call.
Conference Call replay: US Toll Free: 1-877-344-7529
International Toll: 1-412-317-0088
Canada Toll Free: 855-669-9658
Replay Access Code: 10136395
End Date: November 13, 2019

About Alimera Sciences, Inc.

www.alimerasciences.com

Alimera, founded in June 2003, is a pharmaceutical company that specializes in the commercialization and development of prescription ophthalmic pharmaceuticals. Alimera is presently focused on diseases affecting the back of the eye, or retina, because these diseases are not well treated with current therapies and affect millions of people in our aging populations.  For more information, please visit www.alimerasciences.com.

Non-GAAP Financial Measure

This press release contains a discussion of a non-GAAP financial measure, as defined in Regulation G promulgated under the Securities Exchange Act of 1934, as amended. Alimera reports its financial results in compliance with GAAP but believes that the non-GAAP measure of Adjusted EBITDA provides useful information to investors regarding Alimera’s operating performance.  Alimera uses Adjusted EBITDA in the management of its business. Accordingly, Adjusted EBITDA for the three and nine months ended September 30, 2019 and 2018 has been presented in certain instances excluding items identified in the reconciliations provided in the table entitled “Reconciliation of GAAP Net Loss to non-GAAP Adjusted EBITDA.” GAAP net loss is the most directly comparable GAAP financial measure to Adjusted EBITDA. 

Adjusted EBITDA, as presented, may not be comparable to similarly titled measures reported by other companies because not all companies may calculate Adjusted EBITDA in an identical manner. Therefore, Adjusted EBITDA is not necessarily an accurate measure of comparison between companies.

The presentation of Adjusted EBITDA is not intended to be considered in isolation or as a substitute for guidance prepared in accordance with GAAP. The principal limitation of this non-GAAP financial measure is that it excludes significant elements required by GAAP to be recorded in Alimera’s financial statements. In addition, Adjusted EBITDA is subject to inherent limitations as it reflects the exercise of judgments by management in determining this non-GAAP financial measure.

Forward Looking Statements

This press release contains “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, regarding, among other things, Alimera’s expectation regarding its use of the Lincoln Park purchase agreement to obtain capital and Alimera’s expectation that revenue in its international segment will fluctuate from quarter to quarter depending primarily on the timing and size of its international distributor ordering patterns. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change them, and could cause actual results to differ materially from those projected in the forward-looking statements. Meaningful factors that could cause actual results to differ include, but are not limited to, (a) Alimera’s ability to satisfy the conditions in the purchase agreement to direct Lincoln Park to make purchases of common stock, (b) the possible negative effects on the market liquidity of Alimera’s common stock of the reverse stock split that Alimera expects to implement if its stockholders approve it at the upcoming special stockholders meeting on November 4, 2019, (c) changes in Alimera’s international sales due to a reduction in end user demand, unanticipated competition, regulatory issues, including delays in obtaining reimbursement approval in various countries in the EU for the treatment of non-infectious posterior uveitis, or other unexpected circumstances, and (d) other factors discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Alimera’s Annual Report on Form 10-K for the year ended December 31, 2018, and Alimera’s Quarterly Reports on Form 10-Q for the first and second quarters of 2019, which are on file with the Securities and Exchange Commission (SEC) and available on the SEC’s website at http://www.sec.gov. Additional factors will also be described in those sections of Alimera’s Quarterly Report on Form 10-Q for the third quarter of 2019, to be filed with the SEC soon.

The forward-looking statements in this press release speak only as of the date of this press release (unless another date is indicated). Alimera undertakes no obligation, and specifically declines any obligation, to publicly update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

   
For investor inquiries: 
Scott Gordon 
for Alimera Sciences 
scottg@coreir.com
For media inquiries:
Jules Abraham
for Alimera Sciences
julesa@coreir.com
   



ALIMERA SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

  September 30,
2019
  December 31,
2018
  (unaudited)    
CURRENT ASSETS:      
Cash and cash equivalents $ 7,903     $ 13,043  
Restricted cash 31     32  
Accounts receivable, net 16,377     17,259  
Prepaid expenses and other current assets 2,155     2,109  
Inventory 1,642     2,405  
Total current assets 28,108     34,848  
NON-CURRENT ASSETS:      
Property and equipment, net 1,060     1,355  
Right of use assets, net 1,162      
Intangible asset, net 15,272     16,723  
Deferred tax asset 1,127     1,182  
TOTAL ASSETS $ 46,729     $ 54,108  
CURRENT LIABILITIES:      
Accounts payable $ 6,728     $ 6,355  
Accrued expenses 3,916     3,643  
Note payable 3,333      
Finance lease obligations 258     236  
Total current liabilities 14,235     10,234  
NON-CURRENT LIABILITIES:      
Note payable 35,166     37,873  
Finance lease obligations — less current portion 132     305  
Other non-current liabilities 3,672     2,974  
COMMITMENTS AND CONTINGENCIES      
STOCKHOLDERS’ (DEFICIT) EQUITY:      
Preferred stock:      
Series A Convertible Preferred Stock 19,227     19,227  
Series C Convertible Preferred Stock 11,117     11,117  
Common stock 710     701  
Additional paid-in capital 348,035     346,108  
Common stock warrants 3,707     3,707  
Accumulated deficit (388,068 )   (377,127 )
Accumulated other comprehensive loss (1,204 )   (1,011 )
TOTAL STOCKHOLDERS’ (DEFICIT) EQUITY (6,476 )   2,722  
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY $ 46,729     $ 54,108  
               



ALIMERA SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018
(in thousands, except share and per share data)

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2019   2018   2019   2018
   
  (Unaudited)
                               
NET REVENUE $ 12,850     $ 11,137     $ 36,595     $ 31,484  
COST OF GOODS SOLD, EXCLUDING DEPRECIATION AND AMORTIZATION (1,579 )   (965 )   (4,353 )   (2,982 )
GROSS PROFIT 11,271     10,172     32,242     28,502  
               
RESEARCH, DEVELOPMENT AND MEDICAL AFFAIRS EXPENSES 2,761     2,799     8,322     8,398  
GENERAL AND ADMINISTRATIVE EXPENSES 3,121     3,446     10,189     10,530  
SALES AND MARKETING EXPENSES 6,437     5,480     18,458     17,375  
DEPRECIATION AND AMORTIZATION 668     642     1,974     1,941  
OPERATING EXPENSES 12,987     12,367     38,943     38,244  
NET LOSS FROM OPERATIONS (1,716 )   (2,195 )   (6,701 )   (9,742 )
               
INTEREST EXPENSE AND OTHER (1,232 )   (1,211 )   (3,696 )   (3,540 )
UNREALIZED FOREIGN CURRENCY (LOSS) GAIN, NET (115     (16     (135     18  
LOSS ON EARLY EXTINGUISHMENT OF DEBT             (1,766 )
NET LOSS BEFORE TAXES (3,063 )   (3,422 )   (10,532 )   (15,030 )
PROVISION FOR TAXES (77 )   (28 )   (409 )   (104 )
NET LOSS   (3,140 )     (3,450 )     (10,941 )     (15,134 )
GAIN ON EXTINGUISHMENT OF PREFERRED STOCK         38,330             38,330  
NET (LOSS) INCOME AVAILABLE TO STOCKHOLDERS $ (3,140     $ 34,880     $  (10,941     $ 23,196  
NET (LOSS) INCOME PER SHARE — Basic $ (0.04 )   $ 0.40     $ (0.15 )   $ 0.26  
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING — Basic   71,002,307       70,038,411       70,912,124       69,981,744  
WEIGHTED AVERAGE PARTICIPATING SHARES – Basic         17,934,164             17,604,533  
TOTAL WEIGHTED AVERAGE SHARES OUTSTANDING — Basic 71,002,307     87,972,575      70,912,124     87,586,277  
NET (LOSS) INCOME PER SHARE — Diluted $ (0.04 )   $ 0.39     $ (0.15 )   $ 0.26  
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING — Diluted   71,002,307       70,038,411       70,912,124       69,981,744  
WEIGHTED AVERAGE PARTICIPATING AND DILUTIVE SHARES – Diluted         18,445,093             18,126,536  
TOTAL WEIGHTED AVERAGE SHARES OUTSTANDING — Diluted 71,002,307     88,483,504      70,912,124     88,108,280  
                       



ALIMERA SCIENCES, INC.
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018
(in thousands)

  Three Months Ended
September 30, 2019
  Three Months Ended
September 30, 2018
  U.S.   International   Other
  Consolidated
  U.S.   International
  Other   Consolidated
   
  (unaudited)
                                                               
NET REVENUE $ 8,692     $ 4,158     $     $ 12,850     $ 8,492     $ 2,645     $     $ 11,137  
COST OF GOODS SOLD, EXCLUDING DEPRECIATION AND AMORTIZATION (1,001 )   (578 )       (1,579 )   (715 )     (250 )       (965 )
GROSS PROFIT 7,691     3,580         11,271     7,777       2,395         10,172  
                                 
RESEARCH, DEVELOPMENT AND MEDICAL AFFAIRS EXPENSES 1,573     1,100     88     2,761     1,684       904     211     2,799  
GENERAL AND ADMINISTRATIVE EXPENSES 2,032     768     321     3,121     2,050       786     610     3,446  
SALES AND MARKETING EXPENSES 4,502     1,840     95     6,437     3,913       1,356     211     5,480  
DEPRECIATION AND AMORTIZATION         668     668               642     642  
OPERATING EXPENSES 8,107     3,708     1,172     12,987     7,647       3,046     1,674     12,367  
SEGMENT (LOSS) INCOME FROM OPERATIONS (416 )   (128 )   (1,172 )   (1,716 )   130       (651 )   (1,674 )   (2,195 )
OTHER INCOME AND EXPENSES, NET         (1,347 )   (1,347 )             (1,227 )   (1,227 )
                                         
NET LOSS BEFORE TAXES             $ (3,063 )                 $ (3,422 )


 
                                                               
  Nine Months Ended
September 30, 2019
  Nine Months Ended
September 30, 2018
  U.S.   International   Other   Consolidated   U.S.   International   Other   Consolidated
   
  (unaudited)
                                                               
NET REVENUE $ 22,778     $ 13,817     $     $ 36.595     $ 23,096     $ 8,388     $     $ 31,484  
COST OF GOODS SOLD, EXCLUDING DEPRECIATION AND AMORTIZATION (2,494 )   (1,859 )       (4,353 )   (2,084 )   (898 )       (2,982 )
GROSS PROFIT 20,284     11,958         32,242     21,012     7,490         28,502  
                                                               
RESEARCH, DEVELOPMENT AND MEDICAL AFFAIRS EXPENSES 4,629     3,361     332     8,322     4,926     2,808     664     8,398  
GENERAL AND ADMINISTRATIVE EXPENSES 6,116     2,876     1,197     10,189     6,209     2,416     1,905     10,530  
SALES AND MARKETING EXPENSES 12,760     5,324     374     18,458     12,427     4,127     821     17,375  
DEPRECIATION AND AMORTIZATION         1,974     1,974             1,941     1,941  
OPERATING EXPENSES 23,505     11,561     3,877     38,943     23,562     9,351     5,331     38,244  
SEGMENT (LOSS) INCOME FROM OPERATIONS (3,221 )   397     (3,877 )   (6,701 )   (2,550 )   (1,861 )   (5,331 )   (9,742 )
OTHER INCOME AND EXPENSES, NET         (3,831 )   (3,831 )           (5,288 )   (5,288 )
                                       
NET LOSS BEFORE TAXES             $ (10,532 )               $ (15,030 )
                                       



RECONCILIATION OF GAAP MEASURES TO NON-GAAP ADJUSTED MEASURES
GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA
(in thousands)

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2019   2018   2019   2018
   
  (Unaudited)
                               
GAAP NET LOSS $ (3,140 )   $ (3,450 )   $ (10,941 )   $ (15,134 )
Adjustments to net loss:              
Interest expense and other 1,232     1,211     3,696     3,540  
Provision for taxes 77     28     409     104  
Depreciation and amortization 668     642     1,974     1,941  
Stock-based compensation expenses 504     1,032     1,903     3,390  
Unrealized foreign currency exchange losses (gains)   115     16     135     (18 )
Loss on early extinguishment of debt             1,766  
Severance expenses 23         198      
                               
NON-GAAP ADJUSTED EBITDA $ (521 )   $ (521 )   $   (2,626 )   $ (4,411 )

 

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