FOOTHILL RANCH, Calif.,
May 13, 2021 /PRNewswire/
-- BIOLASE, Inc. (NASDAQ: BIOL), the global leader in
dental lasers, today announced its financial results for its first
quarter ended March 31, 2021.
2021 First Quarter Operating Highlights (all
comparisons are on a year over year basis):
- Net revenue grew 70% to $8.1
million with:
-
- 79% of sales from new users, continuing a positive trend
- 36% of sales from dental specialists
- Laser system sales increased 139%
- Consumables and other revenue increased 52%
- U.S. revenue increased 67%
- International revenue increased 75%
- Gross margin was 34%, up 500 basis points
- Maintained strong balance sheet, as cash and cash equivalents
totaled $40.8 million on March 31, 2021, up from $17.6 million on December
31, 2020.
"Our strong first quarter revenue performance reflects increased
awareness and pent up demand for our industry-leading dental lasers
as dental offices in the U.S. and abroad continue to reopen and
patient volumes return to near pre-COVID-19 levels," commented
John Beaver, President and Chief
Executive Officer.
"The high demand for our advanced lasers from new users,
especially dental specialists, reflects the success of our efforts
to educate and train these specialists on the benefits of our
lasers to drive increased adoption. We believe recent launches of
our specialist academies for endodontists, periodontists and
pediatric dentists will drive continued further adoption of our
products as our industry-leading dental lasers provide a new,
improved and better standard of care for dental procedures, while
ensuring a safer environment for dental practitioners and patients
by reducing aerosolization to mitigate the spread of infectious
pathogens, such as COVID-19. Our positive performance to date in
our second quarter, which has already exceeded the entire revenue
we reported in the second quarter last year, gives us confidence
that our products and go-to-market strategy continue to gain
momentum, putting us on a positive growth trajectory.
"We ended the quarter with over $40
million in cash and cash equivalents, representing one of
the strongest balance sheets in BIOLASE's history, which we believe
provides us with the resources to execute our growth strategies for
several years without having to access the capital markets,"
continued Mr. Beaver.
The Company's board of directors has recommended that, at the
Company's annual meeting of stockholders scheduled to be held on
May 26, 2021, the Company's
stockholders vote FOR the amendment to the Company's long-term
incentive plan to increase the number of shares available for
issuance under the plan. This amendment is conditioned on
obtaining stockholder approval for the increase in authorized
shares under the Company's certificate of incorporation. Mr. Beaver
stated, "If the Company's stockholders do not approve both
amendments, we expect to pay employees cash bonuses in lieu of
granting equity awards, which will negatively impact cash and
EBITDA in future periods." The Company's board of
directors urges stockholders to vote FOR the amendment to the
equity incentive plan and FOR the amendment of the Company's
certificate of incorporation to increase the number of authorized
shares.
2021 First Quarter Financial Results
Net revenue for the first quarter of 2021 was $8.1 million, an increase of 70% compared to net
revenue of $4.7 million for the first
quarter of 2020, which was the first quarter impacted by the
COVID-19 pandemic. U.S. laser revenue was $2.9 million for the first quarter of 2021, up
200% when compared to U.S. laser revenue of $1.0 million for the first quarter of 2020. U.S.
consumables and other revenue for the first quarter of 2021, which
consists of revenue from consumable products such as disposable
tips, increased 50% compared to the first quarter of 2020. Outside
the U.S., laser revenue increased 84% to $2.0 million for the first quarter of 2021,
compared to $1.1 million for the
first quarter of 2020, and consumables and other revenue increased
61% year over year as recovery from the pandemic has improved
internationally.
Gross margin for the first quarter of 2021 was 34%, compared to
29% for the first quarter of 2020. The higher gross margin reflects
the impact of the increase in revenues from the COVID-19 pandemic
and increased average selling prices for products sold in the U.S.
during the first quarter. Total operating expenses were
$8.8 million for the first quarter of
2021, compared to $6.7 million for
the first quarter of 2020, an increase of approximately 31%.
Operating loss for the first quarter of 2021, was $6.1 million, compared to an operating loss of
$5.4 million in the first quarter of
2020. Net loss for the first quarter of 2021 was $6.9 million, or $0.06 per share, compared to a net loss of
$6.0 million, or $0.19 per share, for the first quarter of
2020.
Cash, cash equivalents, and restricted cash totaled $41.0 million as of March
31, 2021.
Adjusted EBITDA – Use of Non-GAAP Measures
The Reconciliation of GAAP Net Loss to Adjusted EBITDA at the
end of this news release provides the details of the Company's
non-GAAP disclosures and the reconciliation of GAAP net loss and
net loss per share to the Company's Adjusted EBITDA and Adjusted
EBITDA per share.
Adjusted EBITDA loss for the first quarter of 2021 was
$5.3 million, or $0.05 per share, compared to Adjusted EBITDA loss
of $3.6 million, or $0.11 per share, for the first quarter of
2020.
2021 Second Quarter Revenue Guidance
The Company continues to experience high demand for its dental
lasers and is currently forecasting revenue for the second quarter
ending June 30, 2021 to be
significantly above the year-ago second quarter, which was the
quarter most impacted by COVID-19. Based on currently available
information, the Company has already exceeded 2020 second quarter
total revenue of $2.9 million and is
expecting total revenue for the 2021 second quarter to be
$7.5 million to $8.5 million, which would represent growth of
between 155% and 190% year over year.
Conference Call Information
BIOLASE, Inc. will host a conference call today at 4:30 p.m. Eastern Time to discuss its operating
results for the first quarter ended March
31, 2021, and to answer questions. For both "listen-only"
participants and those participants who wish to take part in the
question-and-answer portion of the call, the dial-in number in the
U.S./Canada is 800-353-6461. For
international participants outside the U.S./Canada, the dial-in number is 334-323-0501.
For all callers, refer to the Conference ID 5287389. To access the
live webcast, visit the Investor Relations section of the BIOLASE
website at www.biolase.com and see "Investor Events".
An audio archive of the webcast will be available for 30 days on
the Investor Relations section of the BIOLASE website.
About BIOLASE
BIOLASE is a medical device company that develops,
manufactures, markets, and sells laser systems in dentistry and
medicine. BIOLASE's products advance the practice of dentistry and
medicine for patients and healthcare professionals. BIOLASE's
proprietary laser products incorporate approximately 271 patented
and 40 patent-pending technologies designed to provide biologically
and clinically superior performance with less pain and faster
recovery times. BIOLASE's innovative products provide cutting-edge
technology at competitive prices to deliver superior results for
dentists and patients. BIOLASE's principal products are
revolutionary dental laser systems that perform a broad range of
dental procedures, including cosmetic and complex surgical
applications. BIOLASE has sold over 41,200 laser systems
to date in over 80 countries around the world. Laser products under
development address BIOLASE's core dental market and other adjacent
medical and consumer applications.
For updates and information on Waterlase iPlus®, Waterlase
Express™, and laser dentistry, find BIOLASE online
at www.biolase.com, Facebook at www.facebook.com/biolase,
Twitter at www.twitter.com/biolaseinc, Instagram
at www.instagram.com/waterlase_laserdentistry, and LinkedIn
at www.linkedin.com/company/biolase.
BIOLASE®, Waterlase® and Waterlase iPlus® are registered
trademarks of BIOLASE, Inc.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements, as that
term is defined in the Private Litigation Reform Act of 1995, that
involve significant risks and uncertainties, including statements,
regarding BIOLASE's expected revenue and revenue growth during the
first quarter of 2021, the anticipated impact of launches of
specialist academies for endodontists, periodontists and pediatric
dentists, anticipated cash needs and the expected use of cash in
lieu of equity awards to compensate employees if the Company's
stockholders do not approve an amendment to the Company's long-term
incentive plan and an amendment to the Company's certificate of
incorporation to increase the number of authorized shares.
Forward-looking statements can be identified through the use of
words such as may," "might," "will," "intend," "should," "could,"
"can," "would," "continue," "expect," "believe," "anticipate,"
"estimate," "predict," "outlook," "guidance," "potential," "plan,"
"seek," and similar expressions and variations or the negatives of
these terms or other comparable terminology. Readers are cautioned
not to place undue reliance on these forward-looking statements,
which reflect BIOLASE's current expectations and speak only as of
the date of this release. Actual results may differ materially from
BIOLASE's current expectations depending upon a number of factors.
These factors include, among others, the coronavirus (COVID-19) and
the effects of the outbreak and actions taken in connection
therewith, adverse changes in general economic and market
conditions, competitive factors including but not limited to
pricing pressures and new product introductions, uncertainty of
customer acceptance of new product offerings and market changes,
risks associated with managing the growth of the business, and
those other risks and uncertainties that are described in the "Risk
Factors" section of BIOLASE's most recent annual report filed on
Form 10-K and quarterly report filed on Form 10-Q filed with the
Securities and Exchange Commission. Except as required by law,
BIOLASE does not undertake any responsibility to revise or update
any forward-looking statements.
Tables to Follow
BIOLASE,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
(Unaudited, in
thousands, except per share data)
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Net
revenue
|
|
$
|
8,116
|
|
|
$
|
4,783
|
|
Cost of
revenue
|
|
|
5,375
|
|
|
|
3,430
|
|
Gross
profit
|
|
|
2,741
|
|
|
|
1,353
|
|
Operating
expenses:
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
3,553
|
|
|
|
2,704
|
|
General and
administrative
|
|
|
3,447
|
|
|
|
3,010
|
|
Engineering and
development
|
|
|
1,803
|
|
|
|
991
|
|
Total operating
expenses
|
|
|
8,803
|
|
|
|
6,705
|
|
Loss from
operations
|
|
|
(6,062)
|
|
|
|
(5,352)
|
|
Loss on foreign
currency transactions
|
|
|
204
|
|
|
|
84
|
|
Interest expense,
net
|
|
|
575
|
|
|
|
589
|
|
Other (income)
expense, net
|
|
|
—
|
|
|
|
—
|
|
Non-operating loss,
net
|
|
|
779
|
|
|
|
673
|
|
Loss before income
tax provision
|
|
|
(6,841)
|
|
|
|
(6,025)
|
|
Income tax provision
(benefit)
|
|
|
60
|
|
|
|
(19)
|
|
Net loss
|
|
|
(6,901)
|
|
|
|
(6,006)
|
|
Other comprehensive
loss items:
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
(148)
|
|
|
|
(18)
|
|
Comprehensive
loss
|
|
$
|
(7,049)
|
|
|
$
|
(6,024)
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(6,901)
|
|
|
$
|
(6,006)
|
|
Deemed dividend on
convertible preferred stock
|
|
|
(532)
|
|
|
|
—
|
|
Net loss attributable
to common stockholders
|
|
$
|
(7,433)
|
|
|
$
|
(6,006)
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders:
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.06)
|
|
|
$
|
(0.19)
|
|
Diluted
|
|
$
|
(0.06)
|
|
|
$
|
(0.19)
|
|
Shares used in the
calculation of net loss per share:
|
|
|
|
|
|
|
Basic
|
|
|
134,586
|
|
|
|
31,509
|
|
Diluted
|
|
|
134,586
|
|
|
|
31,509
|
|
BIOLASE,
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(Unaudited, in
thousands, except per share data)
|
|
|
March 31,
|
|
|
December 31,
|
|
|
2021
|
|
|
2020
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
40,842
|
|
|
$
|
17,564
|
|
Restricted
cash
|
|
204
|
|
|
|
312
|
|
Accounts receivable,
less allowance of $3,908 and $4,017 in 2021 and 2020,
respectively
|
|
3,266
|
|
|
|
3,059
|
|
Inventory
|
|
11,877
|
|
|
|
11,157
|
|
Prepaid expenses and
other current assets
|
|
1,560
|
|
|
|
3,018
|
|
Total current
assets
|
|
57,749
|
|
|
|
35,110
|
|
Property, plant, and
equipment, net
|
|
693
|
|
|
|
782
|
|
Goodwill
|
|
2,926
|
|
|
|
2,926
|
|
Right of use
asset
|
|
1,890
|
|
|
|
1,976
|
|
Other
assets
|
|
226
|
|
|
|
231
|
|
Total
assets
|
$
|
63,484
|
|
|
$
|
41,025
|
|
LIABILITIES,
REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
3,072
|
|
|
$
|
2,651
|
|
Accrued
liabilities
|
|
6,237
|
|
|
|
6,667
|
|
Deferred revenue,
current portion
|
|
1,961
|
|
|
|
1,905
|
|
Total current
liabilities
|
|
11,270
|
|
|
|
11,223
|
|
Deferred
revenue
|
|
343
|
|
|
|
374
|
|
Warranty
accrual
|
|
297
|
|
|
|
384
|
|
Non current term
loans, net of discount
|
|
16,295
|
|
|
|
16,186
|
|
Non current operating
lease liability
|
|
1,686
|
|
|
|
1,774
|
|
Other
liabilities
|
|
77
|
|
|
|
1,056
|
|
Total
liabilities
|
|
29,968
|
|
|
|
30,997
|
|
Redeemable preferred
stock:
|
|
|
|
|
|
Series E Preferred
stock, par value $0.001 per share
|
|
—
|
|
|
|
—
|
|
Total redeemable
preferred stock
|
|
—
|
|
|
|
—
|
|
Stockholders'
equity:
|
|
|
|
|
|
Series F Preferred
stock, par value $0.001 per share
|
|
36
|
|
|
|
118
|
|
Common stock, par
value $0.001 per share
|
|
149
|
|
|
|
98
|
|
Additional paid-in
capital
|
|
292,141
|
|
|
|
261,573
|
|
Accumulated other
comprehensive loss
|
|
(533)
|
|
|
|
(385)
|
|
Accumulated
deficit
|
|
(258,277)
|
|
|
|
(251,376)
|
|
Total stockholders'
equity
|
|
33,516
|
|
|
|
10,028
|
|
Total liabilities,
redeemable preferred stock and stockholders' equity
|
$
|
63,484
|
|
|
$
|
41,025
|
|
BIOLASE,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited, in
thousands)
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2021
|
|
|
2020
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
Net loss
|
$
|
(6,901)
|
|
|
$
|
(6,006)
|
|
Adjustments to
reconcile net loss to net cash and cash equivalents used in
operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
85
|
|
|
|
177
|
|
Provision for bad
debts
|
|
(106)
|
|
|
|
987
|
|
Provision for sales
returns
|
|
90
|
|
|
|
—
|
|
Inventory write-offs
and disposals
|
|
(20)
|
|
|
|
10
|
|
Amortization of
discount on lines of credit
|
|
42
|
|
|
|
46
|
|
Amortization of debt
issuance costs
|
|
95
|
|
|
|
50
|
|
Patent litigation
mark-to-market
|
|
89
|
|
|
|
—
|
|
Stock-based
compensation
|
|
928
|
|
|
|
719
|
|
Deferred income
taxes
|
|
—
|
|
|
|
(32)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
(193)
|
|
|
|
3,024
|
|
Inventory
|
|
(700)
|
|
|
|
(1,207)
|
|
Prepaid expenses and
other current assets
|
|
558
|
|
|
|
(142)
|
|
Accounts payable and
accrued liabilities
|
|
(488)
|
|
|
|
(1,541)
|
|
Deferred
revenue
|
|
22
|
|
|
|
(219)
|
|
Net cash and cash
equivalents used in operating activities
|
|
(6,499)
|
|
|
|
(4,134)
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
Purchases of
property, plant, and equipment
|
|
(8)
|
|
|
|
(9)
|
|
Net cash and cash
equivalents used in investing activities
|
|
(8)
|
|
|
|
(9)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
Proceeds from the
issuance of common stock, net of offering costs
|
|
13,292
|
|
|
|
—
|
|
Payments of equity
offering costs
|
|
(6)
|
|
|
|
(117)
|
|
Proceeds from the
exercise of common stock warrants
|
|
16,539
|
|
|
|
—
|
|
Net cash and cash
equivalents provided by (used in) financing activities
|
|
29,825
|
|
|
|
(117)
|
|
Effect of exchange
rate changes
|
|
(148)
|
|
|
|
(18)
|
|
Increase (decrease)
in cash, cash equivalents and restricted cash
|
|
23,170
|
|
|
|
(4,278)
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
17,876
|
|
|
|
6,101
|
|
Cash, cash
equivalents and restricted cash, end of period
|
$
|
41,046
|
|
|
$
|
1,823
|
|
Supplemental cash
flow disclosure:
|
|
|
|
|
|
Cash paid for
interest
|
$
|
448
|
|
|
$
|
485
|
|
Cash received for
interest
|
$
|
14
|
|
|
$
|
—
|
|
Cash paid for income
taxes
|
$
|
10
|
|
|
$
|
28
|
|
Cash paid for
operating leases
|
$
|
66
|
|
|
$
|
192
|
|
Non-cash accrual for
capital expenditures
|
$
|
—
|
|
|
$
|
7
|
|
Non-cash settlement
of liability
|
$
|
510
|
|
|
$
|
—
|
|
Non-GAAP Financial Measures
In addition to the financial information prepared in conformity
with generally accepted accounting principles in the U.S. ("GAAP"),
this press release includes certain
historical non-GAAP financial information. Management
believes that these non-GAAP financial measures assist
investors in making comparisons
of period-to-period operating results and that, in some
respects, these non-GAAP financial measures are more
indicative of the Company's ongoing core operating performance than
their GAAP equivalents. In 2019, the Company revised its non-GAAP
financial measures to include the change in allowance for doubtful
accounts in an effort to better align its Adjusted EBITDA with its
loan covenants and how management evaluates business
performance.
Adjusted EBITDA is defined as net income (loss) before interest,
taxes, depreciation and amortization, loss on patent litigation
settlement, stock-based and other non-cash compensation, and
allowance for doubtful accounts. Management uses Adjusted EBITDA in
its evaluation of the Company's core results of operations and
trends between fiscal periods and believes that these measures are
important components of its internal performance measurement
process. Therefore, investors should
consider non-GAAP financial measures in addition to, and
not as a substitute for, or as superior to, measures of financial
performance prepared in accordance with GAAP. Further,
the non-GAAP financial measures presented by the Company
may be different from similarly named non-GAAP financial
measures used by other companies.
BIOLASE,
INC.
|
Reconciliation of
GAAP Net Loss to Adjusted EBITDA and
|
GAAP Net Loss Per
Share to Adjusted EBITDA Per Share
|
(Unaudited, in
thousands, except per share data)
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
|
|
|
|
2021
|
|
|
2020
|
|
GAAP net loss
attributable to common stockholders
|
|
$
|
(7,433)
|
|
|
$
|
(6,006)
|
|
Deemed dividend on
convertible preferred stock
|
|
|
532
|
|
|
|
—
|
|
GAAP net
loss
|
|
$
|
(6,901)
|
|
|
$
|
(6,006)
|
|
Adjustments:
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
575
|
|
|
|
589
|
|
Income tax provision
(benefit)
|
|
|
60
|
|
|
|
(19)
|
|
Depreciation and
amortization
|
|
|
85
|
|
|
|
177
|
|
Change in allowance
for doubtful accounts
|
|
|
(106)
|
|
|
|
987
|
|
Loss on patent
litigation settlement
|
|
|
89
|
|
|
|
—
|
|
Stock-based and other
non-cash compensation
|
|
|
928
|
|
|
|
719
|
|
Adjusted
EBITDA
|
|
$
|
(5,270)
|
|
|
$
|
(3,553)
|
|
|
|
|
|
|
|
|
GAAP net loss
attributable to common stockholders per share, basic and
diluted
|
|
$
|
(0.06)
|
|
|
$
|
(0.19)
|
|
Deemed dividend on
convertible preferred stock
|
|
|
—
|
|
|
|
—
|
|
GAAP net loss per
share, basic and diluted
|
|
$
|
(0.06)
|
|
|
$
|
(0.19)
|
|
Adjustments:
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
—
|
|
|
|
0.02
|
|
Income tax provision
(benefit)
|
|
|
—
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
—
|
|
|
|
0.01
|
|
Change in allowance
for doubtful accounts
|
|
|
—
|
|
|
|
0.03
|
|
Loss on patent
litigation settlement
|
|
|
—
|
|
|
|
—
|
|
Stock-based and other
non-cash compensation
|
|
|
0.01
|
|
|
|
0.02
|
|
Adjusted EBITDA per
share, basic and diluted
|
|
$
|
(0.05)
|
|
|
$
|
(0.11)
|
|
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SOURCE BIOLASE, Inc.