SRDX
$42.16
Surmodics
($.67)
(1.56%)
Earnings Details
Quarter September 2021
Wednesday, November 10, 2021 7:30:00 AM
Tweet Share Watch
Summary

SurModics Guides to a 2022 Loss

Surmodics (SRDX) reported a Quarter September 2021 loss of $0.10 per share on revenue of $24.0 million. The consensus estimate was a loss of $0.25 per share on revenue of $23.1 million. Revenue grew 6.3% on a year-over-year basis.

The company said it expects fiscal a 2022 non-GAAP loss of $1.75 to $1.25 per share on revenue of $97.0 million to $101.0 million. The current consensus estimate is earnings of $0.92 per share on revenue of $118.12 million for the year ending September 30, 2022.

SurModics Inc is a provider of surface modification and in vitro diagnostic technologies to the healthcare industry.

Results
Reported Earnings
($0.10)
Earnings Whisper
-
Consensus Estimate
($0.25)
Reported Revenue
$24.0 Mil
Revenue Estimate
$23.1 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Surmodics Reports Fourth Quarter Fiscal 2021 Results and Issues Fiscal 2022 Revenue and EPS Guidance

EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--Surmodics, Inc. (Nasdaq: SRDX), a leading provider of medical device and in vitro diagnostic technologies to the healthcare industry, today announced results for its fiscal 2021 fourth quarter ended September 30, 2021 and provided its financial outlook for its fiscal 2022.

Summary of Fourth Quarter and Recent Highlights

  • Revenue of $24.0 million, an increase of 6% year-over-year
  • GAAP EPS of $(0.02), non-GAAP EPS of $(0.10)
  • Successful first patient use Sublime™ .018 RX PTA Dilatation Catheter

“We’re extremely pleased to share that the Sublime™ and Pounce™ clinical product evaluations are confirming the meaningful advantages of our radial access and arterial thrombectomy products,” said Gary Maharaj, President and CEO of Surmodics, Inc. “Our fiscal 2022 promises to be an exciting year as we accelerate the commercialization of our innovative radial access, thrombectomy and drug-coated balloon platforms.”

Fourth Quarter Fiscal 2021 Financial Results

Total revenue for the fourth quarter of fiscal 2021 was $24.0 million, compared to $22.5 million in the prior-year period. Medical Device revenue was $17.4 million for the fourth quarter of fiscal 2021, compared to $17.2 million for the prior-year period, an increase of 1%. Medical Device revenue in the fourth quarter of fiscal 2021 includes $1.2 million from our Development and Distribution Agreement with Abbott Vascular, Inc. (“Abbott”) for the SurVeil™ drug-coated balloon, compared to $1.6 million in the prior-year quarter. In Vitro Diagnostics revenue was $6.6 million for the fourth quarter of fiscal 2021, compared to $5.4 million in the same prior-year quarter, an increase of 23%.

Diluted GAAP earnings per share in the fourth quarter of fiscal 2021 was a loss per share of $(0.02), compared to a loss per share of $(0.22) in the prior-year period. On a non-GAAP basis, loss per share in the fourth quarter of fiscal 2021 was $(0.10), compared to a loss per share of $(0.18) in the same prior-year quarter. On a non-GAAP basis, adjusted net loss and adjusted EPS exclude a $2.6 million and $0.19 per share tax-effected benefit, respectively, recorded in the fourth quarter of fiscal 2021 related to the reimbursement of certain expenses under the employee retention credit provisions of the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act").

As of September 30, 2021, Surmodics reported cash and investments totaling $40.9 million and $10 million in outstanding borrowings on its $25 million line of credit. Surmodics reported $0.9 million of cash provided by operating activities and $2.4 million in capital expenditures in the fourth quarter of fiscal 2021. Surmodics completed its acquisition of Vetex Medical Limited during the fourth quarter of fiscal 2021, with the upfront cash payment of $39.9 million funded using cash on hand and $10 million from the Company’s $25 million line of credit.

Fiscal 2022 Guidance

Surmodics has the potential to receive a $30 million milestone payment during fiscal 2022 related to premarket approval of the SurVeil DCB pursuant to the Abbott Development and Distribution Agreement. The potential revenue associated with this milestone payment would be approximately $25 million. As has been the Company’s practice with past guidance, revenue from regulatory-related milestones is not included in guidance until they are achieved.

Surmodics expects fiscal year 2022 revenue to range from $97 million to $101 million. The Company expects fiscal 2022 diluted GAAP EPS to range from a loss per share of $(2.05) to $(1.55), which reflects increased investments to accelerate the Company’s strategy. Non-GAAP diluted EPS for fiscal 2022 is expected to range from a loss per share of $(1.75) to $(1.25).

Conference Call Today at 7:30 a.m. CT (8:30 a.m. ET)

Surmodics is hosting a webcast at 7:30 a.m. CT (8:30 a.m. ET) today to discuss fourth quarter results. To access the webcast, go to the investor relations portion of the Company’s website at https://surmodics.gcs-web.com and click on the webcast icon. The webcast will be archived on the Company’s website for 90 days. A replay of the fourth quarter conference call will be available by dialing 888-203-1112 and entering conference call ID passcode 2633660. The audio replay will be available beginning at 10:30 a.m. CT on Wednesday, November 10, 2021, until 10:30 a.m. CT on Wednesday, November 17, 2021.

About Surmodics, Inc.

Surmodics is a leading provider of surface modification technologies for intravascular medical devices and chemical components for in vitro diagnostic immunoassay tests and microarrays. Surmodics is pursuing development and commercialization of highly differentiated medical devices that are designed to address unmet clinical needs and engineered to the most demanding requirements. This key growth strategy leverages the combination of the Company’s expertise in proprietary surface technologies, along with enhanced device design, development, and manufacturing capabilities. The Company mission remains to improve the detection and treatment of disease. Surmodics is headquartered in Eden Prairie, Minnesota. For more information, visit www.surmodics.com. The content of Surmodics’ website is not part of this press release or part of any filings that the Company makes with the Securities and Exchange Commission (“SEC”).

Safe Harbor for Forward-looking Statements

This press release, and disclosures related to it, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements regarding the Company’s revenue and loss expectations for fiscal 2022; expectations regarding acceleration of the commercialization of the Company’s radial access, thrombectomy and drug-coated balloon platforms; expectations regarding design verification, process validation, and manufacturing validation related to the Company’s products; our fiscal 2022 objectives; expectations regarding expansion of the potential range of uses of the Company’s products; the potential market position of the Company’s products; the anticipated fiscal 2022 full-year license revenue associated with the Development and Distribution Agreement with Abbott; expectations regarding FDA premarket review timing and process and the potential approval of our SurVeil DCB; the potential receipt of a premarket approval milestone payment from Abbott; the expected timing of completion and delivery of the SWING first-in-human clinical trial results; the potential of the Company’s products and fiscal 2022 activities to create long-term value; the Company’s strategy; plans for clinical product evaluations; the anticipated reimbursement under CARES Act Employee Retention Credit; expectations regarding revenue from our Sublime and Pounce product portfolios and growth in the value of those portfolios; and expectations regarding fiscal 2022 revenue growth, operating expenses and tax expense, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated, including, without limitation: (1) our ability to successfully develop and commercialize our SurVeil DCB (including realization of the full potential benefits of our agreement with Abbott), Avess™ DCB, Sundance™ DCB, and other proprietary products; (2) whether and when the FDA grants premarket approval to the SurVeil DCB; (3) our reliance on third parties (including our customers and licensees) and their failure to successfully develop, obtain regulatory approval for, market, and sell products incorporating our technologies; (4) possible adverse market conditions and possible adverse impacts on our cash flows; (5) the impacts, duration, and severity of the global COVID-19 pandemic and the effects of responses to it on healthcare systems, the general economy, our business partners, and our operations; (6) our ability to integrate the acquisition of Vetex Medical Limited successfully and realize the anticipated benefits of the acquisition; and (7) the factors identified under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2020 and subsequent SEC filings. These reports are available in the Investors section of our website at https://surmodics.gcs-web.com and at the SEC website at www.sec.gov. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events.

Use of Non-GAAP Financial Information

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, or GAAP, Surmodics is reporting non-GAAP financial results including EBITDA and Adjusted EBITDA, non-GAAP operating (loss) income, non-GAAP operating (loss) income percentage, non-GAAP (loss) income before income taxes, non-GAAP net (loss) income, non-GAAP diluted (loss) earnings per share, and the non-GAAP effective income tax rate. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financial statements, provide meaningful insight into our operating performance excluding certain event-specific matters, and provide an alternative perspective of our results of operations. We use non-GAAP measures, including those set forth in this release, to assess our operating performance and to determine payouts under our executive compensation programs. We also are providing guidance on a range of non-GAAP diluted loss per share for fiscal 2022. We believe that presentation of certain non-GAAP measures allows investors to review our results of operations from the same perspective as management and our board of directors and facilitates comparisons of our current results of operations. The method we use to produce non-GAAP results is not in accordance with GAAP and may differ from the methods used by other companies. Non-GAAP results should not be regarded as a substitute for corresponding GAAP measures but instead should be utilized as a supplemental measure of operating performance in evaluating our business. Non-GAAP measures do have limitations in that they do not reflect certain items that may have a material impact on our reported financial results. As such, these non-GAAP measures should be viewed in conjunction with both our financial statements prepared in accordance with GAAP and the reconciliation of the supplemental non-GAAP financial measures to the comparable GAAP results provided for the specific periods presented, which are attached to this release.

 

Surmodics, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(Unaudited)

 

 

Three Months Ended

 

Fiscal Year Ended

 

September 30,

 

September 30,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

$

12,509

 

 

$

10,586

 

 

$

46,478

 

 

$

44,317

 

Royalties and license fees

 

8,874

 

 

 

9,867

 

 

 

47,056

 

 

 

40,634

 

Research, development and other

 

2,588

 

 

 

2,090

 

 

 

11,602

 

 

 

9,913

 

Total revenue

 

23,971

 

 

 

22,543

 

 

 

105,136

 

 

 

94,864

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product costs

 

4,159

 

 

 

3,902

 

 

 

17,177

 

 

 

15,317

 

Research and development

 

10,731

 

 

 

12,787

 

 

 

46,734

 

 

 

50,188

 

Selling, general and administrative

 

7,865

 

 

 

7,300

 

 

 

30,680

 

 

 

28,392

 

Acquired intangible asset amortization

 

1,117

 

 

 

547

 

 

 

2,793

 

 

 

2,218

 

Acquisition transaction, integration and other costs

 

588

 

 

 

 

 

 

1,049

 

 

 

 

Total operating costs and expenses

 

24,460

 

 

 

24,536

 

 

 

98,433

 

 

 

96,115

 

Operating (loss) income

 

(489

)

 

 

(1,993

)

 

 

6,703

 

 

 

(1,251

)

Other expense, net

 

(73

)

 

 

(85

)

 

 

(357

)

 

 

(203

)

(Loss) income before income taxes

 

(562

)

 

 

(2,078

)

 

 

6,346

 

 

 

(1,454

)

Income tax benefit (provision)

 

273

 

 

 

(868

)

 

 

(2,109

)

 

 

2,577

 

Net (loss) income

$

(289

)

 

$

(2,946

)

 

$

4,237

 

 

$

1,123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic (loss) income per share:

$

(0.02

)

 

$

(0.22

)

 

$

0.31

 

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted (loss) income per share:

$

(0.02

)

 

$

(0.22

)

 

$

0.30

 

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

13,851

 

 

 

13,639

 

 

 

13,765

 

 

 

13,552

 

Diluted

 

13,851

 

 

 

13,639

 

 

 

13,989

 

 

 

13,812

 

 
 

Surmodics, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

 

 

 

September 30,

 

 

 

2021

 

 

2020

 

Assets

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

31,153

 

 

$

30,785

 

Available-for-sale securities

 

 

7,717

 

 

 

30,313

 

Accounts receivable, net

 

 

9,169

 

 

 

7,675

 

Contract assets — royalties and license fees

 

 

7,091

 

 

 

6,108

 

Inventories, net

 

 

6,760

 

 

 

5,966

 

Prepaids and other

 

 

8,365

 

 

 

5,761

 

Total Current Assets

 

 

70,255

 

 

 

86,608

 

Property and equipment, net

 

 

30,090

 

 

 

30,103

 

Available-for-sale securities

 

 

2,002

 

 

 

 

Deferred income taxes

 

 

5,867

 

 

 

7,315

 

Intangible assets, net

 

 

37,054

 

 

 

13,283

 

Goodwill

 

 

45,606

 

 

 

27,185

 

Other assets

 

 

3,718

 

 

 

4,269

 

Total Assets

 

$

194,592

 

 

$

168,763

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Short-term borrowings

 

 

10,000

 

 

 

 

Deferred revenue

 

 

4,647

 

 

 

5,200

 

Other current liabilities

 

 

15,168

 

 

 

13,692

 

Total Current Liabilities

 

 

29,815

 

 

 

18,892

 

Deferred revenue

 

 

10,301

 

 

 

10,796

 

Other long-term liabilities

 

 

14,391

 

 

 

8,020

 

Total Liabilities

 

 

54,507

 

 

 

37,708

 

Total Stockholders’ Equity

 

 

140,085

 

 

 

131,055

 

Total Liabilities and Stockholders’ Equity

 

$

194,592

 

 

$

168,763

 

 

 

 

 

 

 

 

 

 

 

Surmodics, Inc. and Subsidiaries

Supplemental Segment Information

(in thousands)

(Unaudited)

 

 

 

Three Months Ended September 30,

 

 

 

 

 

 

 

2021

 

 

2020

 

 

 

 

 

Revenue:

 

 

 

 

 

% of Total

 

 

 

 

 

 

% of Total

 

 

% Change

 

Medical Device

 

$

17,395

 

 

72.6%

 

 

$

17,179

 

 

76.2%

 

 

1.3%

 

In Vitro Diagnostics

 

 

6,576

 

 

27.4%

 

 

 

5,364

 

 

23.8%

 

 

22.6%

 

Total revenue

 

$

23,971

 

 

 

 

 

 

$

22,543

 

 

 

 

 

 

6.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year Ended September 30,

 

 

 

 

 

 

 

2021

 

 

2020

 

 

 

 

 

Revenue:

 

 

 

 

 

% of Total

 

 

 

 

 

 

% of Total

 

 

% Change

 

Medical Device

 

$

78,253

 

 

74.4%

 

 

$

71,401

 

 

75.3%

 

 

9.6%

 

In Vitro Diagnostics

 

 

26,883

 

 

25.6%

 

 

 

23,463

 

 

24.7%

 

 

14.6%

 

Total revenue

 

$

105,136

 

 

 

 

 

 

$

94,864

 

 

 

 

 

 

10.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Fiscal Year Ended

 

 

 

 

 

September 30,

 

 

September 30,

 

 

 

 

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

Operating (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical Device

 

$

(797

)

 

$

(1,902

)

 

$

4,683

 

 

$

(3,246

)

 

 

 

 

In Vitro Diagnostics

 

 

3,363

 

 

 

2,456

 

 

 

13,770

 

 

 

11,771

 

 

 

 

 

Total segment operating income

 

 

2,566

 

 

 

554

 

 

 

18,453

 

 

 

8,525

 

 

 

 

 

Corporate

 

 

(3,055

)

 

 

(2,547

)

 

 

(11,750

)

 

 

(9,776

)

 

 

 

 

Total (loss) income from operations

 

$

(489

)

 

$

(1,993

)

 

$

6,703

 

 

$

(1,251

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Surmodics, Inc. and Subsidiaries

Reconciliation of GAAP Measures to Non-GAAP Amounts

Schedule of EBITDA, Adjusted EBITDA and Cash Flows from Operations

(in thousands)

(Unaudited)

 

 

Three Months Ended

 

 

Fiscal Year Ended

 

 

September 30,

 

 

September 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net (loss) income

$

(289

)

 

$

(2,946

)

 

$

4,237

 

 

$

1,123

 

Income tax (benefit) provision

 

(273

)

 

 

868

 

 

 

2,109

 

 

 

(2,577

)

Depreciation and amortization

 

2,407

 

 

 

1,873

 

 

 

8,017

 

 

 

7,263

 

Investment income, net

 

(28

)

 

 

(72

)

 

 

(123

)

 

 

(656

)

Interest expense

 

132

 

 

 

34

 

 

 

310

 

 

 

133

 

EBITDA

 

1,949

 

 

 

(243

)

 

 

14,550

 

 

 

5,286

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition transaction, integration and other costs (1)

 

588

 

 

 

 

 

 

1,049

 

 

 

 

CARES Act Employee Retention Credit (2)

 

(3,577

)

 

 

 

 

 

(3,577

)

 

 

 

Loss on strategic investment (3)

 

 

 

 

 

 

 

 

 

 

479

 

Adjusted EBITDA

$

(1,040

)

 

$

(243

)

 

$

12,022

 

 

$

5,765

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Provided by Operating Activities

$

889

 

 

$

1,314

 

 

$

15,389

 

 

$

14,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Guidance Reconciliation: Estimated Non-GAAP Diluted Earnings Per Share

For the Fiscal Year Ending September 30, 2022

(Unaudited)

 

 

 

Fiscal 2022 Full-Year Estimate

 

 

 

Low

 

 

 

High

 

GAAP diluted EPS

 

$

(2.05

)

 

 

$

(1.55

)

Amortization of acquired intangibles per diluted share (4)

 

 

0.30

 

 

 

 

0.30

 

Non-GAAP diluted EPS

 

$

(1.75

)

 

 

$

(1.25

)

Surmodics, Inc., and Subsidiaries

Net Loss and Diluted EPS GAAP to Non-GAAP Reconciliation

(in thousands, except per share data)

(Unaudited)

 

 

 

For the Three Months Ended September 30, 2021

 

 

 

Total
Revenue

 

 

Operating
Loss

 

 

Operating
Loss
Percentage

 

 

Loss
Before
Income
Taxes

 

 

Net
Loss
(6)

 

 

Diluted
EPS
(7)

 

 

Effective
tax rate

 

GAAP

 

$

23,971

 

 

$

(489

)

 

 

(2.0

)%

 

$

(562

)

 

$

(289

)

 

$

(0.02

)

 

 

48.6

%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired intangible assets (4)

 

 

 

 

 

1,117

 

 

 

4.7

%

 

 

1,117

 

 

 

1,014

 

 

 

0.07

 

 

 

 

 

Acquisition transaction, integration and other costs (1)

 

 

 

 

 

588

 

 

 

2.4

%

 

 

588

 

 

 

554

 

 

 

0.04

 

 

 

 

 

CARES Act Employee Retention Credit (2)

 

 

 

 

 

(3,577

)

 

 

(14.9

)%

 

 

(3,577

)

 

 

(2,617

)

 

 

(0.19

)

 

 

 

 

Non-GAAP

 

$

23,971

 

 

$

(2,361

)

 

 

(9.8

)%

 

$

(2,434

)

 

$

(1,338

)

 

$

(0.10

)

 

 

45.0

%

 
 

 

 

For the Three Months Ended September 30, 2020

 

 

 

Total
Revenue

 

 

Operating
Loss

 

 

Operating
Loss
Percentage

 

 

Loss
Before
Income
Taxes

 

 

Net
Loss
(6)

 

 

Diluted
EPS
(7)

 

 

Effective
tax rate

 

GAAP

 

$

22,543

 

 

$

(1,993

)

 

 

(8.8

)%

 

$

(2,078

)

 

$

(2,946

)

 

$

(0.22

)

 

 

(41.8

)%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired intangible assets (4)

 

 

 

 

 

547

 

 

 

2.4

%

 

 

547

 

 

 

517

 

 

 

0.04

 

 

 

 

 

Non-GAAP

 

$

22,543

 

 

$

(1,446

)

 

 

(6.4

)%

 

$

(1,531

)

 

$

(2,429

)

 

$

(0.18

)

 

 

(58.7

)%

 

Surmodics, Inc., and Subsidiaries

Net Income and Diluted EPS GAAP to Non-GAAP Reconciliation

(in thousands, except per share data)

(Unaudited)

 

 

 

Fiscal Year Ended September 30, 2021

 

 

 

Total
Revenue

 

 

Operating
Income

 

 

Operating
Income
Percentage

 

 

Income
Before
Income
Taxes

 

 

Net
Income
(6)

 

 

Diluted
EPS

 

 

Effective
tax rate

 

GAAP

 

$

105,136

 

 

$

6,703

 

 

 

6.4

%

 

$

6,346

 

 

$

4,237

 

 

$

0.30

 

 

 

33.2

%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired intangible assets (4)

 

 

 

 

 

2,793

 

 

 

2.7

%

 

 

2,793

 

 

 

2,600

 

 

 

0.19

 

 

 

 

 

Acquisition transaction, integration and other costs (1)

 

 

 

 

 

1,049

 

 

 

1.0

%

 

 

1,049

 

 

 

1,015

 

 

 

0.07

 

 

 

 

 

CARES Act Employee Retention Credit (2)

 

 

 

 

 

(3,577

)

 

 

(3.5

)%

 

 

(3,577

)

 

 

(2,617

)

 

 

(0.19

)

 

 

 

 

Non-GAAP

 

$

105,136

 

 

$

6,968

 

 

 

6.6

%

 

$

6,611

 

 

$

5,235

 

 

$

0.37

 

 

 

20.8

%

 

 

 

Fiscal Year Ended September 30, 2020

 

 

 

Total
Revenue

 

 

Operating
(Loss)
Income

 

 

Operating
(Loss)
Income
Percentage

 

 

(Loss)
Income
Before
Income
Taxes

 

 

Net
Income
(6)

 

 

Diluted
EPS

 

 

Effective
tax rate

 

GAAP

 

$

94,864

 

 

$

(1,251

)

 

 

(1.3

)%

 

$

(1,454

)

 

$

1,123

 

 

$

0.08

 

 

 

177.2

%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired intangible assets (4)

 

 

 

 

 

2,218

 

 

 

2.3

%

 

 

2,218

 

 

 

2,076

 

 

 

0.15

 

 

 

 

 

Loss on strategic investment (3)

 

 

 

 

 

 

 

 

 

 

 

479

 

 

 

378

 

 

 

0.03

 

 

 

 

 

Discrete tax impact of CARES Act (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,768

)

 

 

(0.13

)

 

 

 

 

Non-GAAP

 

$

94,864

 

 

$

967

 

 

 

1.0

%

 

$

1,243

 

 

$

1,809

 

 

$

0.13

 

 

 

(45.5

)%

 

(1)

Represents expenses specifically associated with the business acquisition of Vetex Medical Limited and associated tax impact. A significant proportion of the acquisition expenses are not tax deductible.

 

(2)

Represents the benefit recorded as a result of the employee retention credit that the Company filed for under the provisions of the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") enacted in March 2020. The estimated tax impact reflects the combined impact of the statutory tax rate of 21% and a reduction in research and development tax credits.

 

(3)

In fiscal 2020, represents the loss recognized on the impairment of a strategic investment and associated tax impact.

 

(4)

Amortization of business acquisition-related intangible assets and associated tax impact. A significant portion of the business acquisition-related amortization is not tax deductible.

 

(5)

Represents the discrete income tax benefit recognized in fiscal 2020 from the carryback of net operating losses under the provisions of the CARES Act.

 

(6)

Net (loss) income includes the effect of the above adjustments on the income tax benefit (provision), taking into account deferred taxes and non-deductible items. Income tax impacts were estimated using the applicable statutory rate (21% in the U.S. and 12.5% in Ireland).

 

(7)

Potentially dilutive common shares resulting from dilutive common stock options and non-vested stock relating to restricted stock awards and restricted stock units have been excluded from the calculation of GAAP net loss per share as their effect was antidilutive for three months ended September 30, 2021 and 2020 as a result of the GAAP net loss for these periods.

 

Surmodics, Inc.
Tim Arens, 952-500-7000
ir@surmodics.com

Source: Surmodics, Inc.