ABMD
$298.48
Abiomed
($21.30)
(6.66%)
Earnings Details
2nd Quarter September 2018
Thursday, November 1, 2018 7:00:00 AM
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Summary

Abiomed Beats

Abiomed (ABMD) reported 2nd Quarter September 2018 earnings of $0.81 per share on revenue of $181.8 million. The consensus earnings estimate was $0.73 per share on revenue of $175.3 million. The Earnings Whisper number was $0.76 per share. Revenue grew 36.9% on a year-over-year basis.

The company said it expects fiscal 2019 revenue of $765.0 million to $770.0 million. The company's previous guidance was revenue of $755.0 million to $770.0 million and the current consensus estimate is revenue of $768.2 million for the year ending March 31, 2019.

Abiomed Inc is engaged in providing mechanical circulatory support devices and it offers a continuum of care in heart recovery to heart failure patients.

Results
Reported Earnings
$0.81
Earnings Whisper
$0.76
Consensus Estimate
$0.73
Reported Revenue
$181.8 Mil
Revenue Estimate
$175.3 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Abiomed Announces Q2 FY 2019 Record Revenue of $182 Million, up 37% Over Prior Year

DANVERS, Mass., Nov. 01, 2018 (GLOBE NEWSWIRE) -- Abiomed, Inc. (NASDAQ: ABMD), a leading provider of breakthrough heart recovery and support technologies, today reported second quarter fiscal 2019 revenue of $181.8 million, an increase of 37% compared to revenue of $132.8 million for the same period of fiscal 2018. Second quarter fiscal 2019 GAAP net income was $50.1 million or $1.09 per diluted share, up 104% compared to GAAP net income of $24.5 million or $0.54 per diluted share for the prior year period.

Recent financial and operating highlights include:

  • Worldwide Impella® heart pump revenue for the quarter totaled $175.3 million, an increase of 38% compared to revenue of $127.4 million during the same period of the prior fiscal year. 
     
  • U.S. Impella heart pump revenue for the quarter totaled $152.2 million, an increase of 34% compared to revenue of $113.6 million during the same period in the prior fiscal year with U.S. patient usage of the Impella heart pumps up 29%.
     
  • Outside the U.S., Impella heart pump revenue for the quarter totaled $23.1 million, an increase of 67% compared to revenue of $13.8 million during the same period in the prior fiscal year.
     
  • Gross margin for the second quarter fiscal 2019 was 83.6% compared to 83.7% during the same period in the prior fiscal year.
     
  • Operating income for the second quarter fiscal 2019 was $50.3 million, or 27.7% operating margin, compared to $31.7 million, or 23.9% operating margin in the prior fiscal year.
     
  • Second quarter fiscal 2019 GAAP net income was $50.1 million, or $1.09 per diluted share, which benefited from $12.9 million, or $0.28 per diluted share, of excess tax benefits related to employee share-based compensation awards. This compared to GAAP net income of $24.5 million or $0.54 per diluted share for the prior fiscal year, which benefited from $4.5 million, or $0.10 per diluted share, of excess tax benefits.
     
  • The Company’s cash and marketable securities balance as of September 30, 2018 was $410.4 million. The Company currently has no debt.
     
  • In September 2018, a data analysis presented at the Transcatheter Cardiovascular Therapeutics (TCT) conference from Abiomed's Impella® Quality (IQ) Database showed that the utilization of best practices, including early placement of Impella, pre-PCI, led to a 24% relative increase in mean survival for acute myocardial infarction (AMI) cardiogenic shock patients since Impella’s cardiogenic shock FDA post-market approval (PMA) in 2016. The percent of Impella hospitals achieving greater than 70% survival now total 39%, up from 25% prior to the FDA approval.
     
  • Separately at TCT, William O’Neill, MD, medical director of the Center for Structural Heart Disease at Henry Ford Hospital in Detroit, presented initial data from the first 104 patients treated with the National Cardiogenic Shock Initiative (NCSI) protocol. After more than 20 years of stagnant shock survival rates at roughly 50%, NCSI has now demonstrated a survival of 77%, with 99% of survivors discharged home with their native heart. The NCSI protocol includes placing Impella pre-PCI, reducing the use of inotropes, and right heart hemodynamic monitoring. NCSI is an independent, physician-led collaboration to improve outcomes in cardiogenic shock.
     
  • The Company announces the STEMI DTU FDA safety and feasibility study will be presented in the Late-Breaking Clinical Trials at 10:00 a.m. CST on November 11th at the American Heart Association (AHA) Scientific Sessions in Chicago.  More information is available at the following link: http://www.abstractsonline.com/pp8/#!/4682/presentation/59042
     
  • Today, the Company announces that it will host a short investor call to discuss the STEMI DTU FDA safety and feasibility study results on Monday, November 12 at 8:00 a.m. EST.

“We have established a strong foundation with our innovation and technology, balance sheet and intellectual property portfolio,” said Michael R. Minogue, Chairman, President and Chief Executive Officer, Abiomed, Inc. “We are executing our plan for sustainable growth while helping to improve patient outcomes focused on native heart recovery.”

FISCAL YEAR 2019 OUTLOOK
The Company is again increasing the low end of its fiscal year 2019 revenue guidance to $765 million to $770 million (up 29% to 30% over the prior fiscal year). This compares to the post fiscal first quarter guidance of $755 million to $770 million (up 27% to 30% over the prior fiscal year) and the Company's initial forecast of $740 million to $770 million (up 25% to 30% from the prior year). The Company is maintaining its fiscal year 2019 guidance for GAAP operating margin in the range of 28% to 30%.

EARNINGS CONFERENCE CALL DETAILS
The Company will host a conference call to discuss the results at 8:00 a.m. EST on Thursday, November 1, 2018. The conference call releasing full quarterly results will be hosted by Michael R. Minogue, Chairman, President and Chief Executive Officer and Todd A. Trapp, Vice President and Chief Financial Officer.

To listen to the call live, please tune into the webcast via http://investor.abiomed.com or dial (855) 212-2361; the international number is (678) 809-1538. A replay of this conference call will be available beginning at 11:00 a.m. EST November 1, 2018 through 10:00 a.m. EST on November 8, 2018. The replay phone number is (855) 859-2056; the international number is (404) 537-3406. The replay access code is 349 3749.

The ABIOMED logo, ABIOMED, IMPELLA, IMPELLA 2.5, IMPELLA 5.0, IMPELLA LD, IMPELLA CP, IMPELLA RP, IMPELLA BTR, IMPELLA 5.5, and IMPELLA ECP are registered marks or trademarks of ABIOMED, Inc., and are registered in the U.S. and certain foreign countries. AB5000 and cVAD REGISTRY, Recovering hearts. Saving lives. are trademarks of ABIOMED, Inc.  

ABOUT ABIOMED
Based in Danvers, Massachusetts, Abiomed, Inc. is a leading provider of medical devices that provide circulatory support.  Our products are designed to enable the heart to rest by improving blood flow and/or performing the pumping of the heart. For additional information, please visit: www.abiomed.com

FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements, including statements regarding development of Abiomed's existing and new products, the Company's progress toward commercial growth, and future opportunities and expected regulatory approvals. The Company's actual results may differ materially from those anticipated in these forward-looking statements based upon a number of factors, including uncertainties associated with development, testing and related regulatory approvals, including the potential for future losses, complex manufacturing, high quality requirements, dependence on limited sources of supply, competition, technological change, government regulation, litigation matters, future capital needs and uncertainty of additional financing, and other risks and challenges detailed in the Company's filings with the Securities and Exchange Commission, including the most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances that occur after the date of this release or to reflect the occurrence of unanticipated events.

For further information please contact: 

Ingrid Goldberg
Director, Investor Relations
978-646-1590
ir@abiomed.com

Tom Langford
Director, Communications & Public Relations
978-882-8408
tlangford@abiomed.com


Abiomed, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(in thousands, except share data)
     
  September 30, 2018 March 31, 2018
ASSETS    
Current assets:    
Cash and cash equivalents $  76,382  $  42,975 
Short-term marketable securities    334,064     319,274 
Accounts receivable, net     74,201     70,010 
Inventories     63,656     50,204 
Prepaid expenses and other current assets    13,296     11,808 
Total current assets    561,599     494,271 
Long-term marketable securities    -     37,502 
Property and equipment, net    134,065     117,167 
Goodwill    33,719     35,808 
In-process research and development    15,730     16,705 
Long-term deferred tax assets, net    116,248     70,746 
Other assets    25,804     14,176 
Total assets $  887,165  $  786,375 
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $  21,884  $  23,565 
Accrued expenses    46,099     46,147 
Deferred revenue    13,996     14,970 
Total current liabilities    81,979     84,682 
Other long-term liabilities    889     776 
Contingent consideration    10,493     10,490 
Long-term deferred tax liabilities    850     903 
Total liabilities    94,211     96,851 
Commitments and contingencies    
Stockholders' equity:    
Class B Preferred Stock, $.01 par value    —     — 
Authorized - 1,000,000 shares; Issued and outstanding - none    
Common stock, $.01 par value    450     444 
Authorized - 100,000,000 shares; Issued - 46,935,424 shares at September 30, 2018 and 46,100,649 shares at March 31, 2018    
Outstanding - 45,038,453 shares at September 30, 2018 and 44,375,337 shares at March 31, 2018    
Additional paid in capital    660,132     619,905 
Retained earnings    280,650     140,457 
Treasury stock at cost - 1,896,971 shares at September 30, 2018 and 1,725,312 shares at March 31, 2018    (136,743)    (67,078)
Accumulated other comprehensive loss    (11,535)    (4,204)
Total stockholders' equity    792,954     689,524 
Total liabilities and stockholders' equity $  887,165  $  786,375 
     

 

Abiomed, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)
            
            
 Three Months Ended
September 30,
 Six Months Ended
September 30,
 2018  2017  2018  2017
Revenue$  181,778   $  132,823   $  361,788   $  265,291
Costs and expenses:           
Cost of product revenue    29,846     21,627     60,696     43,489
Research and development    22,717     19,390     43,990     36,321
Selling, general and administrative    78,895     60,080     160,034     120,677
    131,458     101,097     264,720     200,487
Income from operations   50,320     31,726     97,068     64,804
Other income:           
Investment income, net   1,671     781     3,222     1,416
Other (expense) income, net   (158)    (23)    30     56
    1,513     758     3,252     1,472
Income before income taxes   51,833     32,484     100,320     66,276
Income tax provision (benefit) (1)   1,706     7,981     (39,873)    4,399
Net income$  50,127  $  24,503  $  140,193  $  61,877
            
Basic net income per share$  1.11  $  0.56  $  3.13  $  1.41
Basic weighted average shares outstanding   44,961     44,141     44,754     44,018
            
Diluted net income per share (2)$  1.09   $  0.54  $  3.04  $  1.36
Diluted weighted average shares outstanding   46,153     45,698     46,164     45,655
(1) Income tax benefit includes the effect of the following item:           
Excess tax benefits related to stock-based compensation awards$  12,928  $  4,434  $  66,765  $  21,276
(2) Diluted net income per share includes the effect of the following item:           
Excess tax benefits related to stock-based compensation awards$  0.28  $  0.10  $  1.45  $  0.47
            
            

Abiomed Logo

Source: ABIOMED, Inc.