Novadaq Reports 2012 Fourth Quarter and Full Year Financial Results

Marketwired

TORONTO, ONTARIO--(Marketwire - Feb 7, 2013) - Novadaq® Technologies Inc. ("Novadaq" or the "Company") (NDQ.TO)(NVDQ), a developer of clinically-relevant fluorescence imaging solutions for use in surgical procedures, today announced financial results for its fourth quarter and full year ended December 31, 2012. Unless otherwise indicated, all dollar amounts in this press release are expressed in United States (U.S.) dollars.

Novadaq reported total revenues for the fourth quarter and full year 2012 of $6.8 million and $23.0 million, respectively, representing increases of 37% and 50% as compared to the same periods in 2011. Growth was due to increased revenue from SPY Elite® and FIREFLY™ procedures and higher SPY Elite and FIREFLY system sales to end users.

Fourth quarter and full year 2012 SPY product revenues were $5.9 million and $19.3 million, respectively, representing increases of 48% and 84% compared to the same periods in 2011. Fourth quarter SPY product recurring revenue increased by 67% to $3.0 million compared to $1.8 million reported in Q4-2011.

Fourth quarter gross profit of $4.6 million (67% margin), represents an increase of 56% compared with $2.9 million (59% margin) in Q4-2011, and an increase of 18% compared with $3.9 million (65% margin) in Q3-2012.

Fourth quarter of 2012 operating contribution (cash contributed by operating activities before changes in working capital) was $1.1 million compared with an operating burn of $0.06 million in the fourth quarter of 2011. During the fourth quarter, working capital consumed $1.8 million, and $1.4 million was invested in fixed assets, including $0.9 million to build the SPY Elite installed base.

Net earnings of $3.1 million for the fourth quarter of 2012 increased by $5.1 million compared with the $2.0 million net loss in fourth quarter 2011. Fourth quarter 2012 earnings per share were $0.08. Excluding the impact of a non-cash $3.4 million warrants revaluation gain in fourth quarter 2012, loss per share was $0.01.

Cash and cash equivalents were $39.0 million at December 31, 2012, reflecting a decrease of $2.2 million, compared to the cash position as of September 30, 2012.

Novadaq shipped 135 SPY Elite and FIREFLY imaging systems during the fourth quarter of 2012. The combined installed base of SPY technology in the United States now exceeds 700 systems. Penetration into the U.S. breast reconstruction market by the end of Q4-2012 was approximately 13%. 

"Both the installed base and utilization of SPY imaging systems are growing as surgeons representing multiple specialties continue to report reduced rates of post-operative complications, and lower patient care costs following procedures involving our technologies," commented Dr. Arun Menawat, Novadaq''s President and CEO. "To further support Novadaq''s long term growth, the commercial and clinical launches of PINPOINT® and LUNA™ are progressing as planned."

Conference Call

Novadaq is pleased to invite all interested parties to participate in a conference call today, Thursday, February 7, 2013, at 8:30 a.m. Eastern Time during which the results will be discussed.

Those wishing to access the live conference call by telephone should dial 1-877-407-8031 (within Canada and the United States) or 1-201-689-8031 (international callers) several minutes prior to the beginning of the call. A telephonic replay of the conference call will be made available until midnight on March 7, 2013 and can be accessed by dialing 1-877-660-6853 (within Canada and the United States) or 1-201-612-7415 (international callers) and entering the conference identification number 408022 when prompted.

The call will be archived for 90 days on the Company''s website at http://www.novadaq.com under the "Events" tab in the Investors section. In addition, a replay of the call will be available for download to a portable audio player or computer, as an MP3 or podcast file, at the same location on Novadaq''s website.

About Novadaq Technologies Inc.

Enabling surgeons with clinically-relevant, innovative fluorescence imaging solutions to enhance the lives of patients and their surgeons, while reducing health care costs, is Novadaq''s global mission. SPY fluorescence imaging technology provides surgeons with real-time visualization, leading to improved outcomes and reduced costs without exposing the patient to radiation. More than 60 peer-reviewed publications demonstrate that the use of SPY imaging during complex surgery, leads to fewer post-operative complications and lower hospital costs.

SPY Imaging Systems are United States Food and Drug Administration 510(k) cleared for use in seven surgical specialties. The endoscopic version of SPY called PINPOINT®, combines the capabilities of SPY Imaging with high definition ("HD") visible light visualization offered by conventional endoscopes. Our unique business model of partnering with market-leading companies to drive adoption of our fluorescence imaging technology, while building our own commercial infrastructure is the cornerstone of our corporate strategy for growth.

Forward-Looking Statements

Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on Novadaq''s current beliefs as well as assumptions made by and information currently available to Novadaq and relate to, among other things, the Company''s strategy, strategic goals, research and development activities, research and clinical testing outcomes, taxes, capital expenditures, future operations, future financial position, future revenues/results, projected costs, prospects and plans and objectives of management.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by Novadaq in its public securities filings available at www.sedar.com, actual events may differ materially from current expectations. Novadaq disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

Novadaq Technologies Inc.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(expressed in U.S. dollars, except common shares outstanding)

  As at December 31, 2012   As at December 31, 2011  
ASSETS            
Current assets            
  Cash and cash equivalents $ 38,954,181   $ 9,633,608  
  Accounts receivable   4,056,954     2,018,782  
  Prepaid expenses and other assets   852,674     829,625  
  Inventories   1,713,577     1,166,417  
             
Non-current assets            
  Property and equipment, net   10,717,661     6,623,986  
  Deferred tax assets   170,442     248,640  
  Intangible assets, net   1,121,808     2,272,434  
             
Total Assets $ 57,587,297   $ 22,793,492  
             
LIABILITIES AND SHAREHOLDERS'' EQUITY            
Current liabilities            
  Accounts payable and accrued liabilities $ 3,407,329   $ 2,485,994  
  Provisions   85,260     41,300  
  Deferred revenue   637,864     396,859  
  Deferred partnership fee revenue   1,300,000     1,300,000  
  Repayable government assistance   203,148     197,760  
             
Non-current liabilities            
  Deferred tax liabilities   170,442     248,640  
  Convertible debentures   4,656,746     4,223,454  
  Deferred revenue   144,204     188,883  
  Deferred partnership revenue   3,291,666     4,591,666  
  Repayable government assistance   17,946     214,402  
  Shareholder warrants   13,002,930     8,278,105  
             
Total Liabilities $ 26,917,535   $ 22,167,063  
             
Shareholders'' Equity            
  Share capital $ 139,946,563   $ 98,695,023  
  Contributed surplus   7,908,224     6,772,298  
  Equity component of convertible debentures   1,454,353     1,454,353  
  Deficit   (118,639,378 )   (106,295,245 )
             
Total Shareholders'' Equity $ 30,669,762   $ 626,429  
             
Total Liabilities and Shareholders'' Equity $ 57,587,297   $ 22,793,492  
             
Total number of common shares outstanding   40,226,243     32,769,462  

Novadaq Technologies Inc.

CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

(expressed in U.S. dollars, except per share amounts)

  For the three months ended     For the twelve months ended  
  December 31,
2012
  December 31,
2011
    December 31,
2012
  December 31,
2011
 
                           
Product sales $ 5,770,240   $ 4,404,981     $ 19,037,096   $ 12,925,953  
Royalty revenue   545,523     116,797       1,849,668     395,398  
Partnership fee revenue   325,000     241,667       1,300,000     841,667  
Service revenue   204,918     231,632       802,296     1,129,423  
Total revenues   6,845,681     4,995,077       22,989,060     15,292,441  
Cost of sales   2,281,116     2,072,642       8,537,408     6,634,206  
Gross profit   4,564,565     2,922,435       14,451,652     8,658,235  
                           
Selling and distribution expenses   1,357,015     1,348,328       4,926,376     5,375,612  
Research and development expenses   1,640,963     1,185,349       5,958,499     4,610,694  
Administrative expenses   1,601,586     1,194,632       6,573,484     4,550,971  
Write-down of equipment   -     -       -     314,213  
Write-down of inventory   -     (95 )     57,540     15,287  
Total operating expenses   4,599,564     3,728,214       17,515,899     14,866,777  
                           
Loss from operations   (34,999 )   (805,779 )     (3,064,247 )   (6,208,542 )
                           
Finance costs   (180,405 )   (169,905 )     (707,500 )   (679,079 )
Finance income   20,969     1,841       61,798     15,421  
Warrants revaluation adjustment   3,389,066     (1,029,310 )     (8,558,323 )   (3,306,128 )
Gain on investment                 25,000     25,000  
Loss from operations before income taxes   3,194,631     (2,003,153 )     (12,243,272 )   (10,153,328 )
Income tax expense   (100,861 )   -       (100,861 )   -  
                           
Net loss and comprehensive loss for the year $ 3,093,770   $ (2,003,153 )   $ (12,344,133 ) $ (10,153,328 )
                           
Basic income (loss) and comprehensive income (loss) per share for the period   0.08     (0.05 )   $ (0.32 ) $ (0.32 )
Diluted loss and comprehensive loss per share for the period   -     (0.05 )   $ (0.32 ) $ (0.32 )

Novadaq Technologies Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(expressed in U.S dollars)

  For the three months ended     For the twelve months ended  
  December 31,
2012
  December 31,
2011
    December 31,
2012
  December 31,
2011
 
OPERATING ACTIVITIES                          
  Loss and comprehensive loss for the year $ 3,093,770   $ (2,003,153 )   $ (12,344,133 ) $ (10,153,328 )
  Items not affecting cash                          
    Depreciation of property and equipment   640,432     331,761       2,142,633     1,050,929  
    Amortization of intangible assets   284,191     294,753       1,150,626     1,119,691  
    Stock-based compensation   395,306     212,314       1,316,683     876,767  
    Imputed interest on convertible debentures   112,335     100,875       433,292     398,448  
    Warrants revaluation adjustment   (3,389,066 )   1,029,310       8,558,323     3,306,128  
    Write-down of equipment   -   $ 0       -     314,213  
    Write-down of inventory   -     (95 )     57,540     15,287  
    Gain on investment   -     (25,000 )     (25,000 )   (25,000 )
      1,136,968     (59,235 )     1,289,964     (3,096,865 )
  Changes in non-cash working capital                          
    Increase in accounts receivable   (1,160,376 )   (85,114 )     (2,038,172 )   (583,818 )
    Increase in inventories   161,195     (127,569 )     (604,700 )   (857,810 )
    Decrease in prepaid expenses and other assets   3,658     261,516       55,149     259,614  
    Increase (decrease) in accounts payable   (1,059,141 )   (1,222,116 )     839,696     (588,099 )
    Increase in deferred revenue   262,083     328,949       263,336     346,994  
  Net change in non-cash working capital balances related to operations   (1,792,581 )   (844,334 )     (1,484,691 )   (1,423,119 )
                             
    (Decrease) increase in long-term deferred revenue   (316,902 )   2,350,419       (1,325,602 )   1,656,607  
Cash used in operating activities   (972,515 )   1,446,850       (1,520,329 )   (2,863,377 )
                           
INVESTING ACTIVITIES                          
  Purchase of property and equipment   (1,592,361 )   (2,163,850 )     (6,511,829 )   (6,545,062 )
  Disposal of property and equipment   185,666     65,538       275,521     213,492  
  Purchase of Transmyocardial Revascularization ("TMR") business   -     -       -     (1,000,000 )
  Redemption of long-term investment   -     25,000       25,000     25,000  
Cash used in investing activities   (1,406,695 )   (2,073,312 )     (6,211,308 )   (7,306,570 )
                           
FINANCING ACTIVITIES                          
  Proceeds from issuance of common shares and warrants   -     -       40,336,250     15,273,401  
  Transaction costs paid relating to issuance of common shares and warrants   -     -       (3,389,352 )   (998,207 )
  Repayable government assistance   (53,726 )   (135,677 )     (191,068 )   (95,513 )
  Proceeds from exercise of options   10,209     64,412       87,492     42,664  
  Proceeds from exercise of warrants   202,895     -       202,895     -  
Cash provided by financing activities   159,378     (71,265 )     37,046,217     14,222,345  
                           
Net increase in cash and cash equivalents   (2,219,832 )   (697,727 )     29,314,580     4,052,398  
Net foreign exchange difference   (4,011 )   27,587       5,993     (16,197 )
Cash and cash equivalents at beginning of year   41,178,024     10,303,748       9,633,608     5,597,407  
                           
Cash and cash equivalents at end of year $ 38,954,181   $ 9,633,608     $ 38,954,181   $ 9,633,608  
Contact:
Novadaq Investor and Media Relations
Novadaq Technologies Inc.
David C. Martin
Vice President, Corporate Development and Investor Relations
905-629-3822 ext: 218
dmartin@novadaq.com

Rates

View Comments (0)