AxoGen, Inc. Announces Record First Quarter 2012 Revenues
First Quarter Highlights
- Record revenues of $1.65 million, a 47% increase from first quarter 2011
- Gross profit over first quarter 2011 increased 55% to a record $1.21 million
- Gross profit margins improved to 73% compared to 70% for the same period in 2011
ALACHUA, Fla.-- AxoGen, Inc. (AXGN.OB), a leading regenerative medicine company focused on the commercialization of proprietary products and technologies for peripheral nerve reconstruction and regeneration, today announced revenues for the first quarter ended March 31, 2012 of $1.65 million, a 47% increase over 2011 first quarter revenues of $1.12 million.
“This quarter’s record performance has been the direct result of our increase in sales and marketing activity,” commented Karen Zaderej, Chief Executive Officer of AxoGen, Inc. “During the first quarter we continued to expand our sales force, while continuing to get hospital approval for AxoGen products and training and developing the sales team. Our growing base of sales representatives, combined with increasing surgeon awareness of our technologies and clinical data, creates a strong environment for our continued growth.”
Revenues
Revenues for the period increased to a record $1.65
million, or 47%, compared to $1.12 million in 2011. The improved results
were primarily due to an increase in new accounts as well as stronger
sales penetration into key accounts.
Revenues increased 21% over fourth quarter revenues of $1.36 million.
Gross Profit
Gross profit reached $1.21 million, a 55%
increase, for first quarter 2012 up from $0.78 million reported for the
same period 2011. The higher gross profit reflects lower manufacturing
and labor cost and the absence of one-time manufacturing startup
expenses reported during the first quarter of 2011. The gross profit
margin increased to 73% compared to 70% for the same quarter last year.
Sales and Marketing Expenses
As a result of the Company's
investment in additional sales and marketing resources, sales and
marketing expenses during the first quarter of 2011 increased to $1.63
million, compared to $0.86 million reported during the same period last
year. As of the end of the period, the Company reported 16 direct and 21
independent sales representatives and distributors.
Research and Development Expenses
Research and development
expenses increased to $0.30 million during the first quarter of 2012.
Substantially all of the research and development expenses relate to
expenditures for clinical activity.
General and Administrative Expenses
General and
administrative expenses increased to $1.23 million for the quarter,
compared to $0.72 million reported last year. This increase was largely
driven by payroll and benefit increases and expenses associated with
being a public company.
Operating Loss
The Company reported a net loss of $2.11
million, or $0.19 per common share, compared to a net loss of $2.3
million, or $2.21 per common share, reported during the same period in
2011.
Financial Liquidity
At March 31, 2012, the Company had $5.64
million in cash and cash equivalents, with $5.0 million in total debt
outstanding.
Earnings Call Information
As previously announced, AxoGen,
Inc. management will review first quarter 2012 financials during a
conference call scheduled for May 15, 2012 at 11:00 AM Eastern Time. The
conference call information is as follows:
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Conference dial-in: |
888.715.1397 |
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International dial-in |
913.312.1227 |
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Conference ID: |
6117124 |
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Webcast: |
A webcast replay of the conference call will be available under the “Investor” tab on the Company's website, www.axogeninc.com.
About AxoGen, Inc.
AxoGen (AXGN.OB) is a leading
regenerative medicine company with a portfolio of proprietary products
and technologies for peripheral nerve reconstruction and regeneration.
Every day, people suffer traumatic injuries or undergo surgical
procedures that impact the function of their peripheral nerves.
Peripheral nerves provide the pathways for both motor and sensory
signals throughout the body and their damage can result in the loss of
function and feeling. In order to improve surgical reconstruction and
regeneration of peripheral nerves, AxoGen has developed and licensed
patented and patent-pending technologies, which are used in its
portfolio of products. This portfolio includes Avance® Nerve Graft, the
only commercially available allograft nerve for bridging peripheral
nerve discontinuities (a gap created when the nerve is severed) of up to
70mm in length.
AxoGen’s portfolio also includes AxoGuard® Nerve Connector, a coaptation aid allowing for close approximation of severed nerves, and AxoGuard® Nerve Protector, a bioscaffold used to reinforce a coaptation site, wrap a partially severed nerve or isolate and protect nerve tissue. AxoGen is bringing the science of nerve repair to life with thousands of surgical implants of AxoGen products performed in hospitals and surgery centers across the United States, including military hospitals serving U.S. service men and women.
AxoGen is the parent of its wholly owned operating subsidiary, AxoGen Corporation. AxoGen’s principal executive office and operations are located in Alachua, FL.
Cautionary Statements Concerning Forward-Looking Statements
This
Press Release contains “forward-looking” statements as defined in the
Private Securities Litigation Reform Act of 1995. These statements are
based on management’s current expectations or predictions of future
conditions, events or results based on various assumptions and
management’s estimates of trends and economic factors in the markets in
which we are active, as well as our business plans. Words such as
“expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”,
“estimates”, “projects”, “forecasts”, “may”, “should”, variations of
such words and similar expressions are intended to identify such
forward-looking statements. The forward-looking statements may include,
without limitation, statements regarding product development, product
potential or financial performance. The forward-looking statements are
subject to risks and uncertainties, which may cause results to differ
materially from those set forth in the statements. Forward-looking
statements in this release should be evaluated together with the many
uncertainties that affect AxoGen’s business and its market, particularly
those discussed in the risk factors and cautionary statements in
AxoGen’s filings with the Securities and Exchange Commission.
Forward-looking statements are not guarantees of future performance, and
actual results may differ materially from those projected. The
forward-looking statements are representative only as of the date they
are made, and AxoGen assumes no responsibility to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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AxoGen, Inc. |
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Condensed Consolidated Balance Sheets |
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March 31, |
December 31, |
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| Assets | |||||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 5,641,947 | $ | 8,190,781 | |||||||||
| Accounts receivable | 893,983 | 797,654 | |||||||||||
| Inventory | 2,126,336 | 1,760,540 | |||||||||||
| Prepaid expenses and other | 142,257 | 133,500 | |||||||||||
| Total current assets | 8,804,523 | 10,882,475 | |||||||||||
| Property and equipment, net | 221,446 | 247,824 | |||||||||||
| Goodwill | 169,987 | 169,987 | |||||||||||
| Intangible assets | 911,297 | 899,480 | |||||||||||
| Deferred financing costs | 272,563 | 295,276 | |||||||||||
| Other Assets | 97,276 | --- | |||||||||||
| $ | 10,477,092 | $ | 12,495,042 | ||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||
| Current liabilities: | |||||||||||||
| Accounts payable and accrued expenses | $ | 1,506,373 | $ | 1,585,100 | |||||||||
| Current portion of long-term debt | 918,480 | 434,734 | |||||||||||
| Total current liabilities | 2,424,853 | 2,019,834 | |||||||||||
| Long-term debt | 3,932,229 | 4,403,737 | |||||||||||
| Total liabilities | 6,357,082 | 6,423,571 | |||||||||||
| Commitments and contingencies | |||||||||||||
| Stockholders’ equity: | |||||||||||||
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Common stock, $.01 par value; |
110,624 | 110,622 | |||||||||||
| Additional paid-in capital | 54,549,646 | 54,391,784 | |||||||||||
| Accumulated deficit | (50,540,260 | ) | (48,430,935 | ) | |||||||||
| Total stockholders’ equity | 4,120,010 | 6,071,471 | |||||||||||
| $ | 10,477,092 | $ | 12,495,042 | ||||||||||
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AxoGen, Inc. |
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Consolidated Statements of Operations |
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(unaudited) |
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| Three Months Ended | ||||||||||||
| March 31, | March 31, | |||||||||||
| 2012 | 2011 | |||||||||||
| Revenues | $ | 1,653,430 | $ | 1,121,561 | ||||||||
| Cost of goods sold | 439,158 | 338,777 | ||||||||||
| Gross profit | 1,214,272 | 782,784 | ||||||||||
| Costs and expenses: | ||||||||||||
| Sales and marketing | 1,628,608 | 856,976 | ||||||||||
| Research and development | 296,131 | 105,591 | ||||||||||
| General and administrative | 1,230,608 | 722,165 | ||||||||||
| Total costs and expenses | 3,155,347 | 1,684,732 | ||||||||||
| Loss from operations | (1,941,075 | ) | (901,948 | ) | ||||||||
| Other income (expense): | ||||||||||||
| Interest expense | (125,125 | ) | (202,799 | ) | ||||||||
| Interest expense – deferred financing costs | (34,951 | ) | (1,059,167 | ) | ||||||||
| Change in fair value of warrant liability | --- | (119,460 | ) | |||||||||
| Other income (expense) | (8,174 | ) | (7,900 | ) | ||||||||
| Total other income (expense) | (168,250 | ) | (1,389,326 | ) | ||||||||
| Net loss | (2,109,325 | ) | (2,291,274 | ) | ||||||||
| Preferred Stock dividends (assumes all paid) | --- | 375,779 | ||||||||||
| Net loss available to common shareholders | $ | (2,109,325 | ) | $ | (2,667,053 | ) | ||||||
| Weighted Average Common Shares outstanding – basic and diluted | 11,062,339 | 1,205,600 | ||||||||||
| Loss Per Common share – basic and diluted | $ | (0.19 | ) | $ | (2.21 | ) | ||||||
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AxoGen, Inc. |
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Consolidated Statements Of Cash Flows |
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(Unaudited) |
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Three Months Ended March 31, |
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| 2012 | 2011 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss | $ | (2,109,325 | ) | $ | (2,291,274 | ) |
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Adjustments to reconcile net loss to net cash used for operating activities: |
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| Depreciation | 55,691 | 75,129 | ||||||||||
| Amortization of intangible assets | 29,419 | 10,676 | ||||||||||
| Amortization of deferred financing costs | 22,713 | 1,059,167 | ||||||||||
| Amortization of debt discount | 12,238 | 8,578 | ||||||||||
| Stock-based compensation | 157,860 | 30,000 | ||||||||||
| Change in fair value of warrant liability | --- | 119,460 | ||||||||||
| Change in assets and liabilities: | ||||||||||||
| Accounts receivable | (96,329 | ) | (85,251 |
) |
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| Inventory | (365,796 | ) | 30,429 | |||||||||
| Prepaid expenses and other | (106,033 | ) | 32,973 | |||||||||
| Accounts payable and accrued expenses | (78,727 | ) | (146,867 |
) |
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| Net cash used for operating activities | (2,478,289 | ) | (1,156,980 |
) |
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| Cash flows from investing activities: | ||||||||||||
| Purchase of property and equipment | (29,313 | ) | --- | |||||||||
| Acquisition of intangible assets | (41,236 | ) | (17,981 |
) |
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| Net cash used for investing activities | (70,549 | ) | (17,981 |
) |
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| Cash flows from financing activities: | ||||||||||||
| Debt issuance costs | --- | (37,346 |
) |
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| Proceeds from exercise of stock options | 63 | --- | ||||||||||
| Payment of fractional shares from Merger | (59 | ) | --- | |||||||||
| Net cash provided by (used for) financing activities | 4 | (37,346 |
) |
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| Net decrease in cash and cash equivalents | (2,548,834 | ) | (1,212,307 |
) |
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| Cash and cash equivalents, beginning of year | 8,190,781 | 1,799,048 | ||||||||||
| Cash and cash equivalents, end of period | $ | 5,641,947 | $ | 586,741 | ||||||||
| Supplemental disclosures of cash flow activity: | ||||||||||||
| Cash paid for interest | $ | 125,125 | $ | 184,051 | ||||||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||||||
| Accretion of dividends of Series B preferred stock | $ | --- | $ | 110,849 | ||||||||
| Accretion of dividends of Series C preferred stock | --- | 187,601 | ||||||||||
| Accretion of dividends of Series D preferred stock | --- | 77,329 | ||||||||||
COCKRELL GROUP
Rich Cockrell, 404-942-3369
President
Investorrelations@thecockrellgroup.com
www.cockrellgroup.com
or
AxoGen,
Inc.
Greg Freitag, 386-462-6856
Chief Financial Officer
InvestorRelations@AxoGenInc.com
www.axogeninc.com
Source: AxoGen, Inc.
Released May 14, 2012