Luminex Corporation Reports Strong Third Quarter 2020 Results
All amounts in this release are in conformity with
CURRENT FINANCIAL HIGHLIGHTS
- Total revenue for the third quarter of
$106.1M , a 35% increase over Q3 2019, driven primarily by growth associated with the current COVID-19 global pandemic - Strong profitability in Q3 with 60% gross margins, an improvement of 7 percentage points over Q3 2019
- Operating margin of
$11.5M or 11% of revenue, a 300% improvement over Q3 2019 - Net income of
$1.8M , representing 2% of revenue, and$0.04 per share, up 134% over Q3 2019 - Received two BARDA awards --
$5,389,813 to support a future 510(k) filing for an updated NxTAG®Respiratory Pathogen Panel that includes SARS-CoV-2, and$683,500 to support future enhancement ofLuminex's COVID-19 Multiplex Antibody Test
CEO COMMENTARY
"I'm very pleased with the performance of our diversified business during these very challenging times. Our team continues to execute on our key role in addressing the demands of this pandemic. With strong revenue growth, improved gross margins and continued control over operating expenses, we are seeing healthy profitability and cash flow," said Nachum "Homi" Shamir, Chairman, President and CEO of
ADDITIONAL HIGHLIGHTS OF THE QUARTER
Molecular Diagnostics revenue for the quarter of$59.9M , up 98% over Q3 2019Licensed Technologies Group revenue of$34.7M , down 10% from Q3 2019- Flow Cytometry revenue of
$9.9M , up 13% over Q3 2019, but with continued impact from the slowdown in academic research due to COVID-19 - Operating cash flow of
$14.9M and$39.0M for the three and nine months endedSeptember 30, 2020 - Ended the quarter with a total order book of more than
$36M , of which$9M was COVID-19 related - Sold or contracted 87 sample-to-answer systems in the quarter, the majority of which were ARIES®
- Received FDA EUA for the xMAP® SARS-CoV-2 Multi-Antigen IgG Assay on
July 16, 2020
Three Months Ended |
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Variance |
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2020 |
2019 |
($) |
(%) |
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(unaudited) |
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System sales |
$ 19,482 |
$ 15,239 |
$ 4,243 |
28% |
|||
Consumable sales |
11,812 |
13,359 |
(1,547) |
-12% |
|||
Royalty revenue |
9,627 |
12,993 |
(3,366) |
-26% |
|||
Assay revenue |
55,647 |
29,468 |
26,179 |
89% |
|||
Service revenue |
5,951 |
5,349 |
602 |
11% |
|||
Other revenue |
3,541 |
2,265 |
1,276 |
56% |
|||
$ 106,060 |
$ 78,673 |
$ 27,387 |
35% |
REVENUE GUIDANCE
As of the date hereof,
Luminex expects revenue for the full year 2020 to be approximately$410M , with growth of 23% over 2019.Luminex expects 2021 revenue to be at or above$475 million , reflecting more than 15% growth fromLuminex's full year 2020 guidance, with such revenue growth driven primarily by significant expansion of ARIES® assay sales resulting from completion of the manufacturing line expansion and new product launches.
CONFERENCE CALL
Management will host a conference call at
ABOUT
At
USE OF FORWARD-LOOKING STATEMENTS
Statements made in this release that express
The forward-looking statements, including the financial guidance and 2020 and 2021 outlooks, contained herein represent the judgment of
Contacts |
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Media Contact: |
Senior Vice President, |
Investor Relations |
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Chief Financial Officer |
Bioscribe |
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937-469-2120 |
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512-219-8020 |
925-864-5028 |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in thousands) |
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|
|
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2020 |
2019 |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ 308,454 |
$ 59,173 |
|
Accounts receivable, net |
60,454 |
55,815 |
|
Inventories, net |
109,795 |
77,084 |
|
Prepaids and other |
12,743 |
10,398 |
|
Total current assets |
491,446 |
202,470 |
|
Property and equipment, net |
62,667 |
65,515 |
|
Intangible assets, net |
81,714 |
90,336 |
|
Deferred income taxes |
21,175 |
27,702 |
|
|
118,145 |
118,145 |
|
Right of use assets |
18,799 |
20,439 |
|
Other |
16,999 |
19,122 |
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Total assets |
$ 810,945 |
$ 543,729 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
$ 17,201 |
$ 17,983 |
|
Accrued liabilities |
48,849 |
31,872 |
|
Deferred revenue - current portion |
10,192 |
8,214 |
|
Total current liabilities |
76,242 |
58,069 |
|
Deferred revenue |
1,515 |
1,633 |
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Lease liabilities |
14,485 |
17,182 |
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Long-term debt |
200,512 |
- |
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Other long-term liabilities |
2,094 |
1,985 |
|
Total liabilities |
294,848 |
78,869 |
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Stockholders' equity: |
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Common stock |
46 |
44 |
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Additional paid-in capital |
428,628 |
380,304 |
|
Accumulated other comprehensive loss |
(837) |
(1,380) |
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Retained earnings |
88,260 |
85,892 |
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Total stockholders' equity |
516,097 |
464,860 |
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Total liabilities and stockholders' equity |
$ 810,945 |
$ 543,729 |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(in thousands, except per share amounts) |
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Three Months Ended |
Nine Months Ended |
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|
|
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2020 |
2019 |
2020 |
2019 |
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(unaudited) |
(unaudited) |
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Revenue |
$ 106,060 |
$ 78,673 |
$ 306,003 |
$ 244,137 |
|||
Cost of revenue |
42,679 |
36,833 |
122,595 |
111,263 |
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Gross profit |
63,381 |
41,840 |
183,408 |
132,874 |
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Operating expenses: |
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Research and development |
14,074 |
13,262 |
39,855 |
43,295 |
|||
Selling, general and administrative |
34,862 |
31,448 |
102,987 |
96,085 |
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Amortization of acquired intangible assets |
2,919 |
2,852 |
8,623 |
8,556 |
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Total operating expenses |
51,855 |
47,562 |
151,465 |
147,936 |
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Income (loss) from operations |
11,526 |
(5,722) |
31,943 |
(15,062) |
|||
Interest and other expense, net |
(4,506) |
2 |
(6,889) |
(96) |
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Loss from equity method investment |
(457) |
- |
(1,350) |
- |
|||
Income (loss) before income taxes |
6,563 |
(5,720) |
23,704 |
(15,158) |
|||
Income tax (expense) benefit |
(4,796) |
470 |
(8,773) |
7,937 |
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Net income (loss) |
$ 1,767 |
$ (5,250) |
$ 14,931 |
$ (7,221) |
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Net income (loss) attributable to common stockholders |
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Basic |
$ 1,734 |
$ (5,224) |
$ 14,637 |
$ (7,187) |
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Diluted |
$ 1,733 |
$ (5,224) |
$ 14,638 |
$ (7,189) |
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Net income (loss) per share attributable to common stockholders |
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Basic |
$ 0.04 |
$ (0.12) |
$ 0.33 |
$ (0.16) |
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Diluted |
$ 0.04 |
$ (0.12) |
$ 0.32 |
$ (0.16) |
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Weighted-average shares used in computing net income (loss) per share |
|||||||
Basic |
45,459 |
44,216 |
44,920 |
44,109 |
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Diluted |
46,343 |
44,216 |
45,777 |
44,109 |
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Dividends declared per share |
$ 0.09 |
$ 0.09 |
$ 0.27 |
$ 0.21 |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(in thousands) |
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Three Months Ended |
Nine Months Ended |
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|
|
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2020 |
2019 |
2020 |
2019 |
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(unaudited) |
(unaudited) |
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Cash flows from operating activities: |
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Net income (loss) |
$ 1,767 |
$ (5,250) |
$ 14,931 |
$ (7,221) |
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Adjustments to reconcile net income (loss) to net |
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Depreciation and amortization |
7,690 |
7,177 |
22,771 |
21,170 |
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Amortization of debt issuance costs |
2,565 |
- |
3,910 |
- |
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Stock-based compensation |
4,072 |
3,565 |
10,781 |
9,644 |
|||
Deferred income tax (benefit) expense |
2,310 |
(2,316) |
4,635 |
(10,970) |
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(Gain) loss on sale or disposal of assets |
(40) |
59 |
346 |
231 |
|||
Loss on equity method investment |
457 |
- |
1,351 |
- |
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Other |
833 |
(510) |
835 |
(532) |
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Changes in operating assets and liabilities: |
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Accounts receivable, net |
228 |
13,459 |
(4,636) |
7,563 |
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Inventories, net |
(17,366) |
(6,617) |
(32,660) |
(12,602) |
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Other assets |
(1,530) |
567 |
(339) |
3,971 |
|||
Accounts payable |
1,170 |
372 |
(322) |
4,540 |
|||
Accrued liabilities |
13,223 |
600 |
15,500 |
(6,956) |
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Deferred revenue |
(435) |
(1,661) |
1,901 |
(610) |
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Net cash provided by (used in) operating activities |
14,944 |
9,445 |
39,004 |
8,228 |
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Cash flows from investing activities: |
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Purchase of property and equipment |
(3,515) |
(4,993) |
(11,614) |
(13,115) |
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Proceeds from business acquisition consideration, |
- |
- |
- |
1,915 |
|||
Acquired technology rights |
- |
- |
22 |
- |
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Net cash used in investing activities |
(3,515) |
(4,993) |
(11,592) |
(11,200) |
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Cash flows from financing activities: |
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Proceeds from issuance of convertible note, net of |
- |
- |
252,247 |
- |
|||
Purchase of convertible notes bond hedge |
- |
- |
(54,626) |
- |
|||
Proceeds from issuance of warrants |
- |
- |
19,968 |
- |
|||
Proceeds from issuance of common stock |
9,924 |
695 |
19,366 |
2,481 |
|||
Shares surrendered for tax withholding |
(32) |
(4) |
(2,365) |
(2,089) |
|||
Dividends paid |
(4,137) |
(2,703) |
(12,297) |
(8,098) |
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Net cash provided by (used in) financing activities |
5,755 |
(2,012) |
222,293 |
(7,706) |
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Effect of foreign currency exchange rate on cash |
(395) |
286 |
(424) |
288 |
|||
Change in cash and cash equivalents |
16,789 |
2,726 |
249,281 |
(10,390) |
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Cash and cash equivalents, beginning of period |
291,665 |
63,325 |
59,173 |
76,441 |
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Cash and cash equivalents, end of period |
$ 308,454 |
$ 66,051 |
$ 308,454 |
$ 66,051 |
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