Luminex Corporation Reports Fourth Quarter and Full-Year 2019 Results
All amounts in this release are in conformity with U.S. generally accepted accounting principles ("GAAP").
CURRENT HIGHLIGHTS
- Total revenue for the fourth quarter of
$90.5M , a 12% increase over Q4 2018. - Total revenue for the year of
$334.6M , up 6% over 2018; and up 19% without consideration of LabCorp revenue and including the effect of the Flow Cytometry acquisition. - Income and cash flow from operations in the fourth quarter increased to
$3.0M and$5.3M , respectively. - Submitted VERIGENE® II Gastrointestinal Flex Assay to the
FDA in the fourth quarter of 2019. - Expect to submit VERIGENE® II Respiratory Flex Assay to the
FDA in the first quarter of 2020.
CEO COMMENTARY
"Our successful transformation continues. We delivered a strong fourth quarter by growing revenues both sequentially and year-over-year, with a return to profitability," said Nachum "Homi" Shamir, President & CEO. "I am very pleased with the significant progress we are making. Looking forward, exciting new products with unique features and the effective execution we have shown with our current portfolio support a return to accelerated organic growth. We are well positioned to achieve our target of
RESULTS AND REVENUE SUMMARY FOR FOURTH QUARTER AND FULL-YEAR 2019
- Tools (
Flow Cytometry + Licensed Technologies Group ) revenue 5% lower in Q4 2019, but up 2% in full-year 2019 vs. 2018. - Flow Cytometry revenue up 2% to
$12.0M in Q4 and up 11% to$45.2M in full-year 2019 vs. 2018, respectively. Licensed Technologies Group revenue 7% lower to$38.6M in Q4 and unchanged at$149.0M in full-year 2019 vs. 2018, respectively. Consumable revenue was impacted by the timing of purchases. End user sales of our technology and royalty revenue increased 12% and 8% in full-year 2019 vs. 2018, respectively.- Total Molecular Diagnostic (MDx) revenue unchanged at
$38.8M in Q4 2019, and 16% lower to$136.7M in full-year 2019 vs. 2018, primarily driven by the departure of certain sales to LabCorp, which impacted full-year 2019 by$32M . - MDx revenue up 1% and up 4% in Q4 and full-year 2019 vs. 2018, respectively, without consideration of LabCorp revenue. The growth, absent the LabCorp effect, was primarily attributable to increases in sample to answer portfolio revenue.
- Molecular sample-to-answer portfolio revenue up 15% to
$21.0M in Q4 2019 and up 21% to$75.7M in full-year 2019 vs. 2018. - Consolidated gross margins of 55% in the fourth quarter and full-year 2019 were affected primarily by the departure of higher margin LabCorp revenue, as well as growth across all of the company's lower margin items.
REVENUE SUMMARY |
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(in thousands, except percentages) |
|||||||
Three Months Ended |
|||||||
December 31, |
Variance |
||||||
2019 |
2018 |
($) |
(%) |
||||
(unaudited) |
|||||||
System sales |
$ 20,773 |
$ 10,209 |
$10,564 |
103% |
|||
Consumable sales |
11,723 |
15,678 |
(3,955) |
-25% |
|||
Royalty revenue |
13,565 |
13,507 |
58 |
0% |
|||
Assay revenue |
36,374 |
36,952 |
(578) |
-2% |
|||
Service revenue |
5,651 |
3,225 |
2,426 |
75% |
|||
Other revenue |
2,415 |
1,562 |
853 |
55% |
|||
$ 90,501 |
$ 81,133 |
$ 9,368 |
12% |
||||
Twelve Months Ended |
|||||||
December 31, |
Variance |
||||||
2019 |
2018 |
($) |
(%) |
||||
(unaudited) |
|||||||
System sales |
$ 70,276 |
$ 39,986 |
$30,290 |
76% |
|||
Consumable sales |
48,542 |
50,144 |
(1,602) |
-3% |
|||
Royalty revenue |
53,562 |
49,394 |
4,168 |
8% |
|||
Assay revenue |
132,028 |
156,714 |
(24,686) |
-16% |
|||
Service revenue |
22,413 |
12,159 |
10,254 |
84% |
|||
Other revenue |
7,817 |
7,421 |
396 |
5% |
|||
$334,638 |
$315,818 |
$18,820 |
6% |
2020 REVENUE GUIDANCE
The company anticipates its first quarter 2020 revenue to be between
CONFERENCE CALL
Management will host a conference call at
ABOUT
At
USE OF FORWARD-LOOKING STATEMENTS
Statements made in this release that express
Contacts |
Jeff Christensen
|
LUMINEX CORPORATION |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
(in thousands) |
|||
December 31, |
December 31, |
||
2019 |
2018 |
||
(unaudited) |
|||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 59,173 |
$ 76,441 |
|
Accounts receivable, net |
55,815 |
53,396 |
|
Inventories, net |
77,084 |
63,250 |
|
Prepaids and other |
10,398 |
9,657 |
|
Total current assets |
202,470 |
202,744 |
|
Property and equipment, net |
65,515 |
66,288 |
|
Intangible assets, net |
90,336 |
105,148 |
|
Deferred income taxes |
27,702 |
21,470 |
|
Goodwill |
118,145 |
118,127 |
|
Right of use assets |
20,439 |
- |
|
Other |
19,122 |
11,398 |
|
Total assets |
$ 543,729 |
$ 525,175 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable |
$ 17,983 |
$ 14,504 |
|
Accrued liabilities |
31,872 |
26,772 |
|
Deferred revenue - current portion |
8,214 |
10,099 |
|
Total current liabilities |
58,069 |
51,375 |
|
Deferred revenue |
1,633 |
1,079 |
|
Lease liabilities |
17,182 |
- |
|
Other long-term liabilities |
1,985 |
5,065 |
|
Total liabilities |
78,869 |
57,519 |
|
Stockholders' equity: |
|||
Common stock |
44 |
44 |
|
Additional paid-in capital |
380,304 |
365,349 |
|
Accumulated other comprehensive loss |
(1,380) |
(1,127) |
|
Retained earnings |
85,892 |
103,390 |
|
Total stockholders' equity |
464,860 |
467,656 |
|
Total liabilities and stockholders' equity |
$ 543,729 |
$ 525,175 |
LUMINEX CORPORATION |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(in thousands, except per share amounts) |
|||||||
Three Months Ended |
Twelve Months Ended |
||||||
December 31, |
December 31, |
||||||
2019 |
2018 |
2019 |
2018 |
||||
(unaudited) |
(unaudited) |
||||||
Revenue |
$90,501 |
$81,133 |
$ 334,638 |
$315,818 |
|||
Cost of revenue |
40,636 |
32,792 |
151,899 |
120,327 |
|||
Gross profit |
49,865 |
48,341 |
182,739 |
195,491 |
|||
Operating expenses: |
|||||||
Research and development |
12,933 |
13,170 |
56,228 |
47,164 |
|||
Selling, general and administrative |
31,098 |
32,036 |
127,183 |
111,816 |
|||
Amortization of acquired intangible assets |
2,851 |
2,167 |
11,407 |
8,665 |
|||
Total operating expenses |
46,882 |
47,373 |
194,818 |
167,645 |
|||
Income (loss) from operations |
2,983 |
968 |
(12,079) |
27,846 |
|||
Other income (expense), net |
3,196 |
- |
3,100 |
465 |
|||
(Loss) income from equity method investment |
(523) |
- |
(523) |
- |
|||
Income (loss) before income taxes |
5,656 |
968 |
(9,502) |
28,311 |
|||
Income tax benefit (expense) |
(2,273) |
(3,263) |
5,664 |
(9,803) |
|||
Net income (loss) |
$ 3,383 |
$ (2,295) |
$ (3,838) |
$ 18,508 |
|||
Net income (loss) attributable to common stockholders |
|||||||
Basic |
$ 3,322 |
$ (2,257) |
$ (3,773) |
$ 18,196 |
|||
Diluted |
$ 3,322 |
$ (2,258) |
$ (3,775) |
$ 18,197 |
|||
Net income (loss) per share attributable to common stockholders |
|||||||
Basic |
$ 0.08 |
$ (0.05) |
$ (0.09) |
$ 0.42 |
|||
Diluted |
$ 0.07 |
$ (0.05) |
$ (0.09) |
$ 0.41 |
|||
Weighted-average shares used in computing net income per share |
|||||||
Basic |
44,263 |
43,867 |
44,148 |
43,727 |
|||
Diluted |
44,503 |
44,563 |
44,148 |
44,291 |
|||
Dividends declared per share |
$ 0.09 |
$ 0.06 |
$ 0.30 |
$ 0.24 |
LUMINEX CORPORATION |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(in thousands) |
|||||||
Three Months Ended |
Twelve Months Ended |
||||||
December 31, |
December 31, |
||||||
2019 |
2018 |
2019 |
2018 |
||||
(unaudited) |
(unaudited) |
||||||
Cash flows from operating activities: |
|||||||
Net income (loss) |
$ 3,383 |
$ (2,295) |
$ (3,838) |
$18,508 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Depreciation and amortization |
7,358 |
5,937 |
28,529 |
23,674 |
|||
Stock-based compensation |
3,554 |
3,766 |
13,198 |
12,226 |
|||
Deferred income tax (benefit) expense |
3,526 |
(491) |
(7,444) |
8,159 |
|||
Loss on sale or disposal of assets |
409 |
287 |
641 |
730 |
|||
(Earnings) loss on equity method investment |
(2,719) |
- |
(2,719) |
- |
|||
Other |
203 |
(83) |
(329) |
(1,369) |
|||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable, net |
(10,004) |
(11,192) |
(2,440) |
(1,569) |
|||
Inventories, net |
(956) |
(1,243) |
(13,559) |
(6,827) |
|||
Other assets |
819 |
1,424 |
4,789 |
(3,319) |
|||
Accounts payable |
(1,170) |
1,712 |
3,370 |
4 |
|||
Accrued liabilities |
1,326 |
6,543 |
(5,630) |
103 |
|||
Deferred revenue |
(421) |
(74) |
(1,031) |
579 |
|||
Net cash provided by (used in) operating activities |
5,308 |
4,291 |
13,537 |
50,899 |
|||
Cash flows from investing activities: |
|||||||
Purchase of property and equipment |
(3,133) |
(7,028) |
(16,249) |
(21,292) |
|||
Business acquisition consideration, net of cash acquired |
- |
(65,381) |
- |
(65,381) |
|||
Proceeds from net working capital adjustments related to business acquisition |
- |
- |
1,915 |
- |
|||
Issuance of note receivable |
- |
- |
- |
(1,000) |
|||
Purchase of equity method investment |
(6,980) |
- |
(6,980) |
- |
|||
Proceeds from (payments to) cost method investment |
735 |
- |
735 |
(1,782) |
|||
Proceeds from sale of assets |
- |
2 |
- |
2 |
|||
Acquired technology rights |
(40) |
- |
(40) |
(4,000) |
|||
Net cash used in investing activities |
(9,418) |
(72,407) |
(20,619) |
(93,453) |
|||
Cash flows from financing activities: |
|||||||
Proceeds from issuance of common stock |
1,269 |
588 |
3,750 |
4,570 |
|||
Shares surrendered for tax withholding |
(6) |
(278) |
(2,095) |
(2,312) |
|||
Dividends paid |
(4,055) |
(2,676) |
(12,153) |
(10,654) |
|||
Net cash used in financing activities |
(2,792) |
(2,366) |
(10,498) |
(8,396) |
|||
Effect of foreign currency exchange rate on cash |
24 |
29 |
312 |
279 |
|||
Change in cash and cash equivalents |
(6,878) |
(70,453) |
(17,268) |
(50,671) |
|||
Cash and cash equivalents, beginning of period |
66,051 |
146,894 |
76,441 |
127,112 |
|||
Cash and cash equivalents, end of period |
$59,173 |
$76,441 |
$ 59,173 |
$76,441 |
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