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Penumbra, Inc. Reports First Quarter 2021 Financial Results

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ALAMEDA, Calif., May 4, 2021 /PRNewswire/ -- Penumbra, Inc. (NYSE: PEN), a global healthcare company focused on innovative therapies, today reported financial results for the first quarter ended March 31, 2021.

Penumbra, Inc. Logo (PRNewsFoto/Penumbra, Inc.)
Penumbra, Inc. Logo (PRNewsFoto/Penumbra, Inc.)
  • Revenue of $169.2 million in the first quarter of 2021, an increase of 23.2%, or 21.5% in constant currency1, compared to the first quarter of 2020.

First Quarter 2021 Financial Results

Total revenue increased to $169.2 million for the first quarter of 2021 compared to $137.3 million for the first quarter of 2020, an increase of 23.2%, or 21.5% on a constant currency basis. The United States represented 71% of total revenue and international represented 29% of total revenue for the first quarter of 2021. Revenue from sales of vascular products grew to $89.2 million for the first quarter of 2021, an increase of 50.5%, or 49.1% on a constant currency basis. Revenue from sales of neuro products grew to $80.0 million for the first quarter of 2021, an increase of 2.5%, or 0.6% on a constant currency basis.

Gross profit was $111.3 million, or 65.8% of total revenue, for the first quarter of 2021, compared to $88.0 million, or 64.1% of total revenue, for the first quarter of 2020.

Total operating expenses for the first quarter of 2021 were $97.9 million, or 57.8% of total revenue. This compares to total operating expenses of $87.4 million, or 63.6% of total revenue, for the first quarter of 2020. R&D expenses were $18.1 million for the first quarter of 2021, compared to $12.9 million for the first quarter of 2020. SG&A expenses were $79.8 million for the first quarter of 2021, compared to $74.5 million for the first quarter of 2020.

Operating income for the first quarter of 2021 was $13.5 million. This compares to an operating income of $0.6 million for the first quarter of 2020.

1 See "Non-GAAP Financial Measures" for important information about our use of non-GAAP measures.

Updated Full Year 2021 Financial Outlook

The Company is increasing its guidance for 2021 total revenue to be in the range of $695 million to $705 million, which represents growth of 24% to 26% over 2020 revenue of $560.4 million. This new range compares to the previous range of $675 million to $685 million.

Webcast and Conference Call Information

Penumbra, Inc. will host a conference call to discuss the first quarter 2021 financial results after market close on Tuesday, May 4, 2021 at 4:30 PM Eastern Time. The conference call can be accessed live over the phone by dialing (833) 350-1434 for domestic and international callers (conference id: 6645719), or the webcast can be accessed on the "Events" section under the "Investors" tab of the Company's website at: www.penumbrainc.com. The webcast will be available on the Company's website for at least two weeks following the completion of the call.

About Penumbra

Penumbra, Inc., headquartered in Alameda, California, is a global healthcare company focused on innovative therapies. Penumbra designs, develops, manufactures and markets novel products and has a broad portfolio that addresses challenging medical conditions in markets with significant unmet need. Penumbra sells its products to hospitals and healthcare providers primarily through its direct sales organization in the United States, most of Europe, Canada and Australia, and through distributors in select international markets. The Penumbra logo is a trademark of Penumbra, Inc. For more information, visit www.penumbrainc.com.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company uses the following non-GAAP financial measures in this press release: a) non-GAAP net income (loss) and non-GAAP diluted earnings per share ("EPS") and b) constant currency.

Non-GAAP net income (loss) and non-GAAP diluted EPS. The Company defines non-GAAP net income (loss) as net income attributable to Penumbra, Inc. excluding the effects of the excess tax benefits associated with share-based compensation arrangements. The Company defines non-GAAP diluted EPS as GAAP diluted EPS, excluding the effects of the same item above.

Constant Currency. The Company's constant currency revenue disclosures estimate the impact of changes in foreign currency rates on the translation of the Company's current period revenue as compared to the applicable comparable period in the prior year. This impact is derived by taking the current local currency revenue and translating it into U.S. dollars based upon the foreign currency exchange rates used to translate the local currency revenue for the applicable comparable period in the prior year, rather than the actual exchange rates in effect during the current period. It does not include any other effect of changes in foreign currency rates on the Company's results or business.

Full reconciliation of these non-GAAP measures to the most comparable GAAP measures is set forth in the tables below.

Our management believes the non-GAAP financial measures disclosed in this press release are useful to investors in assessing the operating performance of our business and provide meaningful comparisons to prior periods and thus a more complete understanding of our business than could be obtained absent this disclosure. In addition, non-GAAP financial measures enable comparison of the Company's financial results with other public companies.

The non-GAAP financial measures included in this press release may be different from, and therefore may not be comparable to, similarly titled measures used by other companies. These non-GAAP measures should not be considered in isolation or as alternatives to GAAP measures. We urge investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate our business.

Forward-Looking Statements

Except for historical information, certain statements in this press release are forward-looking in nature and are subject to risks, uncertainties and assumptions about us. Our business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may differ materially from those projected by any forward-looking statements. Factors that could cause actual results to differ from those projected include, but are not limited to: the impact of the COVID-19 pandemic on our business, results of operations and financial condition; failure to sustain or grow profitability or generate positive cash flows; failure to effectively introduce and market new products; delays in product introductions; significant competition; inability to further penetrate our current customer base, expand our user base and increase the frequency of use of our products by our customers; inability to achieve or maintain satisfactory pricing and margins; manufacturing difficulties; permanent write-downs or write-offs of our inventory; product defects or failures; unfavorable outcomes in clinical trials; inability to maintain our culture as we grow; fluctuations in foreign currency exchange rates; and potential adverse regulatory actions. These risks and uncertainties, as well as others, are discussed in greater detail in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 23, 2021. There may be additional risks of which we are not presently aware or that we currently believe are immaterial which could have an adverse impact on our business. Any forward-looking statements are based on our current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. We make no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change.

Penumbra, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

(in thousands)




March 31, 2021


December 31, 2020

Assets





Current assets:





Cash and cash equivalents


$

55,632



$

69,670


Marketable investments


186,977



195,162


Accounts receivable, net


126,415



114,608


Inventories


245,321



219,527


Prepaid expenses and other current assets


20,782



18,735


Total current assets


635,127



617,702


Property and equipment, net


50,314



48,169


Operating lease right-of-use assets


40,691



41,192


Finance lease right-of-use assets


37,697



38,065


Intangible assets, net


10,097



10,639


Goodwill


8,006



8,372


Deferred taxes


48,978



50,139


Other non-current assets


9,914



8,705


Total assets


$

840,824



$

822,983


Liabilities and Stockholders' Equity





Current liabilities:





Accounts payable


$

15,389



$

14,109


Accrued liabilities


90,214



85,795


Current operating lease liabilities


4,822



4,697


Current finance lease liabilities


1,437



1,331


Total current liabilities


111,862



105,932


Non-current operating lease liabilities


43,525



44,183


Non-current finance lease liabilities


27,000



27,066


Other non-current liabilities


7,966



8,014


Total liabilities


190,353



185,195


Stockholders' equity:





Common stock


36



36


Additional paid-in capital


603,022



598,299


Accumulated other comprehensive (loss) income


(425)



2,541


Retained earnings


52,458



40,622


Total Penumbra, Inc. stockholders' equity


655,091



641,498


Non-controlling interest


(4,620)



(3,710)


Total stockholders' equity


650,471



637,788


Total liabilities and stockholders' equity


$

840,824



$

822,983







Penumbra, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

(in thousands, except share and per share amounts)




Three Months Ended March 31,



2021


2020

Revenue


$

169,204



$

137,329


Cost of revenue


57,867



49,320


Gross profit


111,337



88,009


Operating expenses:





Research and development


18,076



12,946


Sales, general and administrative


79,798



74,453


Total operating expenses


97,874



87,399


Income from operations


13,463



610


Interest income, net


480



299


Other income, net


(1,476)



(1,655)


Income (loss) before income taxes


12,467



(746)


Provision for (benefit from) income taxes


1,541



(1,634)


Consolidated net income


$

10,926



$

888


Net loss attributable to non-controlling interest


(910)



(537)


Net income attributable to Penumbra, Inc.


$

11,836



$

1,425







Net income attributable to Penumbra, Inc. per share:





Basic


$

0.32



$

0.04


Diluted


$

0.32



$

0.04


Weighted average shares outstanding:





Basic


36,455,712



35,042,912


Diluted


37,533,520



36,362,726


Penumbra, Inc.

Reconciliation of GAAP Net Income and GAAP Diluted EPS to Non-GAAP Net Income (Loss) and Non-GAAP Diluted EPS1

(unaudited)

(in thousands, except per share amounts)




Three Months Ended

March 31, 2021


Three Months Ended

March 31, 2020



Net (loss) income


Diluted EPS


Net income


Diluted EPS

GAAP net income


$

11,836



$

0.32



$

1,425



$

0.04


GAAP net income includes the effect of the following items:









Excess tax benefits related to stock compensation awards


(1,784)



(0.05)



(1,482)



(0.04)


Non-GAAP net income (loss)


$

10,052



$

0.27



$

(57)



$

0.00


Penumbra, Inc.

Reconciliation of Revenue Growth by Geographic Regions to Constant Currency Revenue Growth1

(unaudited)

(in thousands)




Three Months Ended March 31,


Reported Change


FX Impact


Constant Currency Change



2021


2020


$


%


$


$


%

United States


$

120,070



$

95,774



$

24,296



25.4

%


$



$

24,296



25.4

%

International


49,134



41,555



7,579



18.2

%


(2,299)



5,280



12.7

%

Total


$

169,204



$

137,329



$

31,875



23.2

%


$

(2,299)



$

29,576



21.5

%

Penumbra, Inc.

Reconciliation of Revenue Growth by Product Categories to Constant Currency Revenue Growth1

(unaudited)

(in thousands)




Three Months Ended March 31,


Reported Change


FX Impact


Constant Currency Change



2021


2020


$


%


$


$


%

Vascular


$

89,165



$

59,253



$

29,912



50.5

%


$

(813)



$

29,099



49.1

%

Neuro


80,039



78,076



1,963



2.5

%


(1,486)



477



0.6

%

Total


$

169,204



$

137,329



$

31,875



23.2

%


$

(2,299)



$

29,576



21.5

%


1See "Non-GAAP Financial Measures" above for important information about our use of non-GAAP measures and further information about our non-GAAP net income (loss) and non-GAAP diluted EPS measures and our use of constant currency.

Investor Relations
Penumbra, Inc.
510-995-2461
investors@penumbrainc.com


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SOURCE Penumbra, Inc.