Second Quarter 2018 Results:
Fulgent Genetics (NASDAQ: FLGT) (“Fulgent Genetics” or the
“company”) today announced financial results for its second quarter
ended June 30, 2018.
Second quarter revenue was $5.4 million, an increase of 16%
sequentially from $4.7 million in the first quarter of 2018 and an
increase of 16% year over year from $4.6 million in the second
quarter of 2017. GAAP loss for the second quarter of 2018 was $1.0
million, or $0.06 per share, and non-GAAP loss was $0.2 million, or
$0.01 per share. Adjusted EBITDA was $0.1 million in the second
quarter of 2018.
Non-GAAP loss and adjusted EBITDA are described below under
“Note Regarding Non-GAAP Financial Measures” and are reconciled to
the most directly comparable GAAP financial measure, GAAP income
(loss), in the accompanying tables.
Ming Hsieh, Chairman and Chief Executive Officer, said, “We are
pleased with our second quarter results, as we continued to see
improving stability in our business. We saw growth in billable test
volume, which reached a new quarterly record high, and drove an
acceleration in year-over-year revenue growth in the quarter. We
are seeing a positive impact from the recent investments we have
made in our business, including the growth of our test menu,
expansion of our facilities for increased capacity, as well as
restructuring of our sales organization. We feel very good about
the progress we have made in recent quarters and look forward to
building on our momentum.”
Paul Kim, Chief Financial Officer, said, “We have continued
making strides towards sustainable growth in recent quarters, and I
am pleased with our progress. In addition to the increased billable
test volume we had in the quarter, we saw meaningful margin
improvements. We were able to lower our cost per test by 26%
sequentially to $446, resulting from increased operational
efficiencies as we begin to scale. We are also gaining momentum
with insurance providers, which is helping to drive revenue growth.
We are encouraged by the progress we are seeing in the business and
believe we remain well positioned to capitalize on our market
opportunity.”
Mr. Kim added, “We will provide an update on our guidance
regarding certain financial measures during our investment
community conference call to shortly follow the issuance of this
press release.”
Conference Call Information
Fulgent Genetics will host a conference call for the investment
community today at 4:30 PM ET (1:30 PM PT) to discuss its second
quarter results. Press and industry analysts are invited to attend
in listen-only mode.
The call can be accessed through a live audio webcast in the
Investor Relations section of the company’s website,
www.fulgentgenetics.com, and through a live conference call by
dialing (855) 321-9535 using the conference ID 5383738. An audio
replay will be available in the Investors section of the company’s
website or by calling (855) 859-2056 using passcode 5383738 through
August 13, 2018.
Note Regarding Non-GAAP Financial Measures
Certain of the information set forth in this press release,
including non-GAAP income (loss) and adjusted EBITDA, are non-GAAP
financial measures. Fulgent Genetics believes this information is
useful to investors because it provides a basis for measuring the
performance of Fulgent’s business excluding certain income or
expense items that management believes are not directly
attributable to the company’s core operating results. Fulgent
Genetics defines non-GAAP income (loss) as income (loss) calculated
in accordance with accounting principles generally accepted in the
United States of America (“GAAP”), plus or minus provisions
(benefits) for income taxes, plus equity-based compensation
expenses, plus or minus equity income (loss) in investee, plus or
minus the effect of a corporate tax rate, and plus or minus other
charges or gains, as identified, that management believes are not
representative of the company’s core operations. Fulgent Genetics
defines adjusted EBITDA as GAAP income (loss) plus or minus
interest expense (income), plus or minus provisions (benefits) for
income taxes, plus depreciation, plus equity-based compensation
expenses, plus or minus equity income (loss) in investee, and plus
or minus other charges or gains, as identified, that management
believes are not representative of the company’s core
operations.
Fulgent Genetics may continue to incur expenses similar to the
items added to or subtracted from GAAP income (loss) to calculate
non-GAAP income (loss) and adjusted EBITDA; accordingly, the
exclusion of these items in the presentation of these non-GAAP
financial measures should not be construed as an inference that
these items are unusual, infrequent or non-recurring. Management
uses these non-GAAP financial measures along with the most directly
comparable GAAP financial measure of income (loss) in evaluating
the company's operating performance. Non-GAAP financial measures
should not be considered in isolation from, or as a substitute for,
financial information presented in conformity with GAAP, and
non-GAAP financial measures as reported by Fulgent Genetics may not
be comparable to similarly titled metrics reported by other
companies.
About Fulgent Genetics
Fulgent Genetics is a technology company with a focus on
offering comprehensive genetic testing to provide physicians with
clinically actionable diagnostic information they can use to
improve the quality of patient care. The company has developed a
proprietary technology platform that allows it to offer a broad and
flexible test menu and continually expand and improve its
proprietary genetic reference library, while maintaining accessible
pricing, high accuracy and competitive turnaround times. The
company believes its test menu, which currently offers more genes
for testing than its competitors in today’s market, which enables
it to provide expansive options for test customization and
clinically actionable results.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Examples of forward-looking statements in this press release
include statements about, among other things: anticipated growth of
and increased stability in the company’s business and performance,
including its volume of billable tests delivered, margin
improvements relating to costs per test and increased efficiencies;
the success of the company’s investments in its business, including
its technology platform, operational capabilities and sales
organization, as well as the timing and extent of the impact of
these investments, if any, on the company’s performance; the
timing, commercial success and impact on the company’s results of
new product launches and other initiatives, including its Beacon
carrier screening test and its somatic-based cancer test; and the
company’s ability to capitalize on opportunities to grow its
business.
Forward-looking statements are statements other than historical
facts and relate to future events or circumstances or the company’s
future performance, and they are based on management’s current
assumptions, expectations and beliefs concerning future
developments and their potential effect on the company’s business.
These forward-looking statements are subject to a number of risks
and uncertainties, which may cause the forward-looking events and
circumstances described in this press release to not occur, and
actual results to differ materially and adversely from those
described in or implied by the forward-looking statements. These
risks and uncertainties include, among others: the market potential
for, and the rate and degree of market adoption of, the company’s
tests and genetic testing generally; the company’s ability to
capture a sizable share of the developing market for genetic
testing and compete successfully in this market, including its
ability to continue to develop new tests that are attractive to its
various customer markets and otherwise keep pace with rapidly
changing technology; the company’s ability to maintain the low
internal costs of its business model, particularly as the company
makes investments across its business; the company’s ability to
maintain an acceptable margin on sales of its tests, particularly
in light of increasing competitive pressures and other factors that
may continue to reduce the company’s sale prices for and margins on
its tests; risks related to volatility in the company’s results,
which can fluctuate significantly from period to period; risks
associated with the composition of the company’s customer base,
which can fluctuate from period to period and can be comprised of a
small number of customers that account for a significant portion of
the company’s revenue; the company’s ability to grow and diversify
its customer base and increase demand from existing and new
customers; the company’s investments in its infrastructure,
including its sales organization and operational capabilities, and
the extent to which these investments impact the company’s business
and performance and enable it to manage any growth it may
experience in future periods; the company’s level of success in
obtaining coverage and adequate reimbursement and collectability
levels from third-party payors for its tests; the company’s level
of success in establishing and obtaining the intended benefits from
partnerships, joint ventures or other relationships; the company’s
compliance with the various evolving and complex laws and
regulations applicable to its business and its industry; risks
associated with the company’s international operations; the
company’s ability to protect its proprietary technology platform;
and general industry, economic, political and market conditions. As
a result of these risks and uncertainties, forward-looking
statements should not be relied on or viewed as predictions of
future events.
The forward-looking statements made in this press release speak
only as of the date of this press release, and the company assumes
no obligation to update publicly any such forward-looking
statements to reflect actual results or to changes in expectations,
except as otherwise required by law.
The company’s reports filed with the Securities and Exchange
Commission, including its quarterly report on Form 10-Q for the
three months ended June 30, 2018 and the other reports it files
from time to time, including subsequently filed quarterly and
current reports, are made available on the company’s website upon
their filing with the Securities and Exchange Commission. These
reports contain more information about the company, its business
and the risks affecting its business, as well as its results of
operations for the periods covered by the financial results
included in this press release.
Investor Relations Contacts:The Blueshirt GroupNicole Borsje,
415-217-2633, nborsje@blueshirtgroup.com
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FULGENT
GENETICS, INC. |
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CONDENSED CONSOLIDATED BALANCE SHEET DATA |
|
June 30, 2018
and December 31,
2017 |
|
|
|
|
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|
|
(in
thousands) |
|
|
|
|
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|
|
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|
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|
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|
June 30, 2018 |
|
|
December 31, |
|
ASSETS: |
(unaudited) |
|
|
2017 |
|
Cash and cash
equivalents |
$ |
3,654 |
|
|
$ |
6,490 |
|
Investments in
marketable securities |
|
34,409 |
|
|
|
34,877 |
|
Accounts receivable,
net |
|
5,055 |
|
|
|
4,005 |
|
Property and equipment,
net |
|
7,325 |
|
|
|
7,272 |
|
Other assets |
|
5,105 |
|
|
|
4,540 |
|
Total assets |
$ |
55,548 |
|
|
$ |
57,184 |
|
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|
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|
LIABILITIES &
EQUITY: |
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|
|
|
|
Accounts payable and
accrued liabilities |
$ |
2,987 |
|
|
$ |
3,006 |
|
Total stockholders’
equity |
|
52,561 |
|
|
|
54,178 |
|
Total
liabilities & equity |
$ |
55,548 |
|
|
$ |
57,184 |
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FULGENT
GENETICS, INC. |
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CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
DATA |
|
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|
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|
Three and Six Months Ended June 30, 2018 and
2017 |
(in thousands,
except per share data) |
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(unaudited) |
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Three months ended |
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Six months ended |
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|
June 30, |
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|
June 30, |
|
|
|
2018 |
|
|
|
|
2017 |
|
|
2018 |
|
|
|
|
2017 |
|
Revenue |
|
$ |
5,400 |
|
|
|
|
$ |
4,640 |
|
|
$ |
10,053 |
|
|
|
|
$ |
9,946 |
|
Cost of revenue
(1) |
|
|
2,544 |
|
|
|
|
|
1,879 |
|
|
|
5,316 |
|
|
|
|
|
3,738 |
|
Gross
profit |
|
|
2,856 |
|
|
|
|
|
2,761 |
|
|
|
4,737 |
|
|
|
|
|
6,208 |
|
|
|
|
|
|
|
|
|
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|
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|
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Operating
expenses: |
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|
|
Research and
development (1) |
|
|
1,212 |
|
|
|
|
|
920 |
|
|
|
2,670 |
|
|
|
|
|
1,771 |
|
Selling and
marketing (1) |
|
|
1,279 |
|
|
|
|
|
851 |
|
|
|
2,409 |
|
|
|
|
|
1,742 |
|
General and
administrative (1) |
|
|
1,366 |
|
|
|
|
|
1,140 |
|
|
|
2,853 |
|
|
|
|
|
2,626 |
|
Total operating
expenses |
|
|
3,857 |
|
|
|
|
|
2,911 |
|
|
|
7,932 |
|
|
|
|
|
6,139 |
|
Operating income
(loss) |
|
|
(1,001 |
) |
|
|
|
|
(150 |
) |
|
|
(3,195 |
) |
|
|
|
|
69 |
|
Interest income and
other income |
|
|
98 |
|
|
|
|
|
120 |
|
|
|
193 |
|
|
|
|
|
239 |
|
Income (loss) before
income taxes and equity loss in investee |
|
|
(903 |
) |
|
|
|
|
(30 |
) |
|
|
(3,002 |
) |
|
|
|
|
308 |
|
(Benefit from) income
taxes |
|
|
(100 |
) |
|
|
|
|
(110 |
) |
|
|
(534 |
) |
|
|
|
|
(4 |
) |
Income (loss) before
equity loss in investee |
|
|
(803 |
) |
|
|
|
|
80 |
|
|
|
(2,468 |
) |
|
|
|
|
312 |
|
Equity loss in
investee |
|
|
(246 |
) |
|
|
|
|
(105 |
) |
|
|
(491 |
) |
|
|
|
|
(105 |
) |
Net income (loss) |
|
$ |
(1,049 |
) |
|
|
|
$ |
(25 |
) |
|
$ |
(2,959 |
) |
|
|
|
$ |
207 |
|
Basic and diluted
income (loss) per common share: |
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|
|
|
|
|
|
|
|
|
|
|
|
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|
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Basic |
|
$ |
(0.06 |
) |
|
|
|
$ |
(0.00 |
) |
|
$ |
(0.17 |
) |
|
|
|
$ |
0.01 |
|
Diluted |
|
$ |
(0.06 |
) |
|
|
|
$ |
(0.00 |
) |
|
$ |
(0.17 |
) |
|
|
|
$ |
0.01 |
|
Weighted average common
shares: |
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|
|
|
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Basic |
|
|
17,919 |
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|
|
|
|
17,711 |
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|
|
17,891 |
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|
|
|
|
17,694 |
|
Diluted |
|
|
17,919 |
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|
17,711 |
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|
17,891 |
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|
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|
18,156 |
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(1) Equity-based
compensation expense was allocated as follows: |
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|
Cost of revenue |
|
$ |
151 |
|
|
|
|
$ |
62 |
|
|
$ |
275 |
|
|
|
|
$ |
208 |
|
Research and
development |
|
|
171 |
|
|
|
|
|
197 |
|
|
|
303 |
|
|
|
|
|
408 |
|
Selling and
marketing |
|
|
113 |
|
|
|
|
|
51 |
|
|
|
221 |
|
|
|
|
|
120 |
|
General and
administrative |
|
|
138 |
|
|
|
|
|
114 |
|
|
|
319 |
|
|
|
|
|
253 |
|
Total equity-based
compensation expense |
|
$ |
573 |
|
|
|
|
$ |
424 |
|
|
$ |
1,118 |
|
|
|
|
$ |
989 |
|
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|
FULGENT
GENETICS, INC. |
|
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|
Non-GAAP Income
(Loss) Reconciliation |
|
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|
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|
|
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|
Three and Six Months Ended June 30, 2018 and
2017 |
(in thousands,
except per share data) |
|
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|
Three months ended |
|
|
Six months ended |
|
|
June 30, |
|
|
June 30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Net income (loss) |
$ |
(1,049 |
) |
|
$ |
(25 |
) |
|
$ |
(2,959 |
) |
|
$ |
207 |
|
(Benefit from) income
taxes |
|
(100 |
) |
|
|
(110 |
) |
|
|
(534 |
) |
|
|
(4 |
) |
Equity-based
compensation expense |
|
573 |
|
|
|
424 |
|
|
|
1,118 |
|
|
|
989 |
|
Non-GAAP tax effect
(1) |
|
127 |
|
|
|
(110 |
) |
|
|
523 |
|
|
|
(453 |
) |
Equity loss in
investee |
|
246 |
|
|
|
105 |
|
|
|
491 |
|
|
|
105 |
|
Non-GAAP income
(loss) |
$ |
(203 |
) |
|
$ |
284 |
|
|
$ |
(1,361 |
) |
|
$ |
844 |
|
Basic and diluted
income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.06 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.17 |
) |
|
$ |
0.01 |
|
Diluted |
$ |
(0.06 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.17 |
) |
|
$ |
0.01 |
|
Non-GAAP income (loss)
per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
(0.08 |
) |
|
$ |
0.05 |
|
Diluted |
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
(0.08 |
) |
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
17,919 |
|
|
|
17,711 |
|
|
|
17,891 |
|
|
$ |
17,694 |
|
Diluted |
|
17,919 |
|
|
|
17,711 |
|
|
|
17,891 |
|
|
$ |
18,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tax rates as
follows: |
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Corporate
tax rate of 22% for the three and six months ended June 30,
2018.Corporate tax rate of 38% for the three and six months ended
June 30, 2017. |
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FULGENT
GENETICS, INC. |
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|
|
Non-GAAP
Adjusted EBITDA Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three and Six Months Ended June 30, 2018 and
2017 |
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
June 30, |
|
|
June 30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Net income (loss) |
$ |
(1,049 |
) |
|
$ |
(25 |
) |
|
$ |
(2,959 |
) |
|
$ |
207 |
|
Interest (income) |
|
(133 |
) |
|
|
(114 |
) |
|
|
(259 |
) |
|
|
(233 |
) |
(Benefit from) income
taxes |
|
(100 |
) |
|
|
(110 |
) |
|
|
(534 |
) |
|
|
(4 |
) |
Equity-based
compensation expense |
|
573 |
|
|
|
424 |
|
|
|
1,118 |
|
|
|
989 |
|
Depreciation |
|
562 |
|
|
|
405 |
|
|
|
1,078 |
|
|
|
817 |
|
Equity loss in
investee |
|
246 |
|
|
|
105 |
|
|
|
491 |
|
|
|
105 |
|
Adjusted EBITDA |
$ |
99 |
|
|
$ |
685 |
|
|
$ |
(1,065 |
) |
|
$ |
1,881 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fulgent Genetics (NASDAQ:FLGT)
過去 株価チャート
から 7 2024 まで 8 2024
Fulgent Genetics (NASDAQ:FLGT)
過去 株価チャート
から 8 2023 まで 8 2024