Abiomed Announces Q3 FY 2021 Record Revenue of $232 Million, up 5% Year Over Year, With 31% Operating Margin

DANVERS, Mass.–(BUSINESS WIRE)–Abiomed, Inc. (NASDAQ: ABMD), a leading provider of breakthrough heart support technologies today reported record revenue in the third quarter fiscal 2021 of $231.7 million, a year over year increase of 5% compared to Q3 fiscal year 2020 despite the negative impact of COVID-19. Operating income was $71.4 million up 2%, compared to $70.3 million in the same period of fiscal 2020.

Recent financial and operating highlights include:

  • Worldwide Impella® product revenue for the quarter totaled $220.8 million, an increase of 4% compared to revenue of $212.6 million during Q3 fiscal year 2020.
  • U.S. Impella product revenue for the quarter totaled $179.6 million, an increase of 1% compared to revenue of $177.4 million during Q3 fiscal year 2020 with U.S. patient usage of the Impella heart pumps down 2% over prior fiscal year.
  • Outside the U.S., Impella product revenue for the quarter totaled $41.2 million, an increase of 17% compared to revenue of $35.2 million during Q3 fiscal year 2020. European Impella product revenue increased 11% compared to the prior fiscal year. Japan Impella product revenue and service increased 38% compared to the prior fiscal year.
  • Gross margin for the third quarter fiscal 2021 was 82.3% compared to 82.0% during the same period of fiscal 2020.
  • Operating income for the third quarter fiscal 2021 was $71.4 million, or 30.8% operating margin, compared to $70.3 million, or 31.7% operating margin in the same period of fiscal 2020.
  • Third quarter fiscal 2021 GAAP net income was $61.9 million, or $1.35 per diluted share, which includes a $6.2 million, or $0.14 per diluted share, gain on our investment in Shockwave and a $1.9 million, or $0.04 per diluted share, of excess tax benefits related to employee share-based compensation awards. This compared to GAAP net income of $69.2 million or $1.51 per diluted share for the prior fiscal year.
  • The company generated operating cash flow of $79.1 million in the third quarter. As of December 31, 2020, the company had $787.8 million of cash and marketable securities and no debt.
  • On November 5, the company announced that 1,000 patients have been treated with the Impella 5.5 with SmartAssist heart pump in the first year after the U.S. Food and Drug Administration (FDA) granted Impella 5.5 with SmartAssist its highest level of approval for safety and efficacy. The first 1,000 patients were treated primarily for cardiogenic shock from cardiomyopathy, Acute Myocardial Infarction (AMI), and post-cardiotomy, with an average duration of support of 14 days.
  • On December 15, the company announced the achievement of two milestones in the development of small bore access for the Impella heart pump. The Impella ECP heart pump has completed the first stage in its FDA early feasibility study (EFS). The FDA also granted 510(k) clearance for the Expandable and Recoilable (XR) Sheath for the Impella 2.5.
  • On December 21, the company announced the first two patients in the world have been treated with the Abiomed Breethe OXY-1 System, a compact cardiopulmonary bypass system. The advanced ECMO technology pumps, oxygenates, and removes carbon dioxide from blood for patients whose lungs can no longer provide sufficient end organ oxygenation.
  • On January 7, the company announced it has surpassed more than 1,000 patents worldwide, with more than 850 additional patents pending. Abiomed’s robust intellectual property portfolio protects its current and future pump and catheter designs, along with other product components such as motors, cannulas, sensors, software, and access devices. The portfolio also protects manufacturing processes and future artificial intelligence algorithms.
  • On January 12, the company presented at the 39th Annual J.P. Morgan Healthcare Conference. A replay of the presentation is available on the investor section of our website.
  • On January 27, the company received approval from the FDA to expand the early feasibility study for the Impella ECP based on their review of the results from the first 5 patients.

Abiomed delivered a record revenue quarter as we continue to remain both focused and committed to our mission of recovering hearts and saving lives despite the challenging COVID environment” said Michael R. Minogue, Abiomed’s Chairman, President and Chief Executive Officer. “We are excited to close Q4 as Abiomed 2.0 and enter Fiscal Year 2022 with our best ever clinical outcomes from existing products, existing indications and existing countries.”

FOURTH QUARTER 2021 REVENUE OUTLOOK

The company anticipates fourth quarter fiscal year 2021 global revenue to be in the range of $225 million to $235 million, representing 9% to 14% growth compared to fourth quarter fiscal year 2020.

EARNINGS CONFERENCE CALL DETAILS

The company will host a conference call to discuss the quarterly results at 8:00 a.m. ET on Thursday, January 28. The conference call will be hosted by Michael R. Minogue, Chairman, President and Chief Executive Officer and Todd A. Trapp, Vice President and Chief Financial Officer. The slides for the Q3 2021 Earnings Call will be available on the investor section of the company’s website.

To listen to the call live, please tune into the webcast via https://edge.media-server.com/mmc/p/or57h3yj 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. ET January 28, 2021 through 10:00 a.m. ET on February 4, 2021. The replay phone number is (855) 859-2056; the international number is (404) 537-3406. The replay access code is 8012819.

ABOUT ABIOMED

Based in Danvers, Massachusetts, USA, 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. Abiomed, Impella, Impella 2.5, Impella 5.0, Impella LD, Impella CP, Impella RP, Impella 5.5, Impella Connect, and SmartAssist are registered trademarks of Abiomed, Inc., and are registered in the U.S. and certain foreign countries. Impella ECP, Impella XR Sheath, Impella BTR, CVAD, STEMI DTU, Automated Impella Controller and Abiomed Breethe OXY-1 System are pending trademarks of Abiomed, Inc.

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements, including, without limitation, statements regarding development of Abiomed’s existing and new products, the company’s progress toward commercial growth, and future opportunities and expected regulatory approvals. All statements, other than statements of historical facts, may be forward-looking statements. These forward-looking statements may be accompanied by such words as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “target,” “should,” “likely,” “will” and other words and terms of similar meaning. The company’s actual results may differ materially from those anticipated in these forward-looking statements based upon a number of factors, including, without limitation: the scope, scale and duration of the impact of the COVID-19 pandemic, the company’s dependence on Impella® products for all of its revenues; the company’s ability to successfully compete against its existing or potential competitors; the acceptance of the company’s products by cardiac surgeons and interventional cardiologists; long sales and training cycles associated with expansion into new hospital cardiac centers; reduced market acceptance of the company’s products due to lengthy clinician training process; the company’s ability to effectively manage its growth; the company’s ability to successfully commercialize its products; the company’s ability to obtain regulatory approvals and market and sell its products in certain jurisdictions; enforcement actions and product liability suits relating to off-label uses of the company’s products; unsuccessful clinical trials or procedures relating to products under development; the company’s ability to maintain compliance with regulatory requirements; the failure of third-party payers to provide reimbursement of the company’s products; the company’s ability to increase manufacturing capacity to support continued demand for its products; the company or its vendors’ failure to achieve and maintain high manufacturing standards; the failure of the company’s suppliers to provide the components the company requires; the company’s ability to expand its direct sales activities into international markets; the outcome of ongoing securities class action litigation relating to our public disclosures, the company’s ability to integrate acquired companies into its operations and other risks and challenges detailed in the company’s filings with the Securities and Exchange Commission (the “SEC”), including the most recently filed Annual Report on Form 10-K and the filings subsequently filed with or furnished to the SEC. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. Unless otherwise required by law, 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.

 

Abiomed, Inc. and Subsidiaries

 

Consolidated Balance Sheets

 

(Unaudited)

 

(in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

2020

 

 

March 31,

2020

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

181,018

 

 

$

192,341

 

Short-term marketable securities

 

 

305,434

 

 

 

250,775

 

Accounts receivable, net

 

 

92,990

 

 

 

84,650

 

Inventories

 

 

82,448

 

 

 

90,088

 

Prepaid expenses and other current assets

 

 

31,801

 

 

 

18,009

 

Total current assets

 

 

693,691

 

 

 

635,863

 

Long-term marketable securities

 

 

301,315

 

 

 

207,795

 

Property and equipment, net

 

 

179,364

 

 

 

164,931

 

Goodwill

 

 

79,691

 

 

 

31,969

 

Other intangibles, net

 

 

43,327

 

 

 

14,913

 

Deferred tax assets

 

 

21,233

 

 

 

43,336

 

Other assets

 

 

109,813

 

 

 

117,655

 

Total assets

 

$

1,428,434

 

 

$

1,216,462

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

23,594

 

 

$

32,774

 

Accrued expenses

 

 

71,661

 

 

 

75,107

 

Deferred revenues

 

 

21,291

 

 

 

19,147

 

Other current liabilities

 

 

3,854

 

 

 

4,857

 

Total current liabilities

 

 

120,400

 

 

 

131,885

 

Contingent consideration

 

 

25,316

 

 

 

9,000

 

Deferred tax liabilities

 

 

4,303

 

 

 

806

 

Other long-term liabilities

 

 

16,974

 

 

 

9,305

 

Total liabilities

 

 

166,993

 

 

 

150,996

 

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

 

 

452

 

 

 

451

 

Authorized – 100,000,000 shares; Issued 47,882,615 shares at December 31, 2020 and 47,542,061 shares at March 31, 2020

 

 

 

 

 

 

 

 

Outstanding 45,224,596 shares at December 31, 2020 and 45,008,687 shares at March 31, 2020

 

 

 

 

 

 

 

 

Additional paid in capital

 

 

781,903

 

 

 

739,133

 

Retained earnings

 

 

771,151

 

 

 

602,482

 

Treasury stock at cost 2,658,019 shares at December 31, 2020 and 2,533,374 shares at March 31, 2020

 

 

(287,896

)

 

 

(265,411

)

Accumulated other comprehensive loss

 

 

(4,169

)

 

 

(11,189

)

Total stockholders’ equity

 

 

1,261,441

 

 

 

1,065,466

 

Total liabilities and stockholders’ equity

 

$

1,428,434

 

 

$

1,216,462

 

 
 

Abiomed, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

(Unaudited)

 

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

Ended December 31,

 

 

For the Nine Months

Ended December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue

 

$

231,663

 

 

$

221,584

 

 

$

606,277

 

 

$

634,225

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

41,110

 

 

 

39,996

 

 

 

115,829

 

 

 

111,937

 

Research and development

 

 

33,004

 

 

 

25,655

 

 

 

89,886

 

 

 

73,413

 

Selling, general and administrative

 

 

86,198

 

 

 

85,674

 

 

 

233,809

 

 

 

257,708

 

 

 

 

160,312

 

 

 

151,325

 

 

 

439,524

 

 

 

443,058

 

Income from operations

 

 

71,351

 

 

 

70,259

 

 

 

166,753

 

 

 

191,167

 

Other income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income, net

 

 

1,449

 

 

 

3,086

 

 

 

5,668

 

 

 

9,066

 

Other income, net

 

 

7,935

 

 

 

23,671

 

 

 

42,305

 

 

 

17,279

 

 

 

 

9,384

 

 

 

26,757

 

 

 

47,973

 

 

 

26,345

 

Income before income taxes

 

 

80,735

 

 

 

97,016

 

 

 

214,726

 

 

 

217,512

 

Income tax provision

 

 

18,867

 

 

 

27,799

 

 

 

46,057

 

 

 

46,301

 

Net income (A)

 

$

61,868

 

 

$

69,217

 

 

$

168,669

 

 

$

171,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$

1.37

 

 

$

1.53

 

 

$

3.74

 

 

$

3.79

 

Basic weighted average shares outstanding

 

 

45,201

 

 

 

45,140

 

 

 

45,105

 

 

 

45,225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share (B)

 

$

1.35

 

 

$

1.51

 

 

$

3.69

 

 

$

3.73

 

Diluted weighted average shares outstanding

 

 

45,706

 

 

 

45,695

 

 

 

45,653

 

 

 

45,935

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A) Net income includes the following items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess tax benefits on stock-based compensation awards

 

$

(1,909

)

 

$

(485

)

 

$

(10,363

)

 

$

(13,775

)

Gain on investment in Shockwave Medical

 

 

(6,237

)

 

 

(17,775

)

 

 

(32,338

)

 

 

(13,272

)

 

 

$

(8,146

)

 

$

(18,260

)

 

$

(42,701

)

 

$

(27,047

)

(B) Diluted net income per share includes the following items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess tax benefits on stock-based compensation awards

 

$

(0.04

)

 

$

(0.01

)

 

$

(0.23

)

 

$

(0.30

)

Gain on investment in Shockwave Medical

 

 

(0.14

)

 

 

(0.39

)

 

 

(0.71

)

 

 

(0.29

)

 

 

$

(0.18

)

 

$

(0.40

)

 

$

(0.94

)

 

$

(0.59

)

 

Contacts

Todd Trapp

Vice President and Chief Financial Officer

978-646-1680

ttrapp@abiomed.com

Sarah Karr

Communications Manager

978-882-8211

skarr@abiomed.com