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Sientra, Inc. (SIEN)

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  • Sientra (SIEN) Reports Q4 Loss, Tops Revenue Estimates
    Zacks

    Sientra (SIEN) Reports Q4 Loss, Tops Revenue Estimates

    Sientra (SIEN) delivered earnings and revenue surprises of -15.15% and 0.20%, respectively, for the quarter ended December 2020. Do the numbers hold clues to what lies ahead for the stock?

  • Sientra Reports Fourth Quarter and Full Year 2020 Financial Results
    GlobeNewswire

    Sientra Reports Fourth Quarter and Full Year 2020 Financial Results

    SANTA BARBARA, Calif., March 11, 2021 (GLOBE NEWSWIRE) -- Sientra, Inc. (NASDAQ: SIEN) (“Sientra” or the “Company”), a medical aesthetics company uniquely focused on plastic surgeons, today announced its audited financial results for the fourth quarter and full year ended December 31, 2020. Ron Menezes, President and Chief Executive Officer of Sientra, stated, “We continue to build on our strong fourth quarter results, which were driven primarily by our investment and market outperformance in our core breast products segment. While the augmentation channel remains a key performance driver, we were also able to gain market share in the hospital channel despite pandemic related challenges faced by the reconstruction market. Ahead of further market normalization in 2021, we remain hyper focused on expanding our hospital account base by continuing to capitalize on customer receptivity to the technical differentiation and compelling safety profile of our tissue expander portfolio, grounded by AlloX2®. We also expect to benefit in 2021 from targeted digital efforts directed towards patients and surgeons, an expanded and more productive sales force, and educational peer to peer initiatives that will add new accounts and drive continued share gains." Mr. Menezes continued, “Our 2021 performance will also be driven by our commitment to establish a culture of focus and accountability, with disciplined investment and execution on commercial, product development and manufacturing initiatives designed to drive revenue and operating leverage. Meanwhile, we expect to reach our goal to achieve break-even contribution margin from miraDry in 2021, as we evaluate the strategic alternatives for the business.” Mr. Menezes concluded, “Given our progress to date on each of these initiatives, we currently expect breast product segment net sales to grow in excess of 30% in the first quarter 2021 compared to the first quarter 2020.” Fourth Quarter 2020 Financial Results Total net sales for the fourth quarter 2020 were $22.6 million, a decrease of 2% compared to total net sales of $23.2 million for the same period in 2019.Net sales for the Breast Products segment totaled $17.9 million in the fourth quarter 2020, an increase of 40% compared to $12.8 million for the same period in 2019 and 17% sequential growth over the quarter ending September 30, 2020. Net sales for the miraDry segment totaled $4.8 million in the fourth quarter 2020, a 54% decrease compared to $10.4 million for the same period in 2019 and 22% sequential growth over the quarter ending September 30, 2020.Gross profit for the fourth quarter 2020 was $11.1 million, or 48.9% of sales, compared to gross profit of $14.2 million, or 61.3% of sales, for the same period in 2019. Operating expenses for the fourth quarter 2020 decreased by 13.1% to $28.2 million from $32.4 million, excluding $1.1 million of restructuring charges related to Sientra’s organizational efficiency initiative, in the same period in 2019. Net loss for the fourth quarter 2020 was ($21.2) million, or ($0.42) per share, compared to a net loss of ($20.2) million, or ($0.41) per share, for the same period in 2019. On a non-GAAP basis, adjusted EBITDA loss for the fourth quarter 2020 decreased by 24.6% to ($10.5) million from ($14.0) million for the same period in 2019. Full Year 2020 Financial Results Total net sales for the full year 2020 were $71.2 million, a decrease of 14.9% compared to total net sales of $83.7 million for the same period in 2019.Net sales for the Breast Products segment totaled $55.0 million in the full year 2020, an increase of 18.6% compared to $46.4 million for the full year 2019.Net sales for the miraDry segment totaled $16.2 million in the full year 2020, a 56.5% decrease compared to $37.3 million for the full year 2019.Gross profit for the full year 2020 was $38.9 million, or 54.7% of sales, compared to gross profit of $50.7 million, or 60.6% of sales, for the full year 2019. Operating expenses for the full year 2020 decreased by 29.2% to $109.2 million from $154.3 million for the full year 2019. Net loss for the full year 2020 was ($89.9) million, or ($1.79) per share, compared to a net loss of ($106.8) million, or ($2.63) per share, for the full year 2019. On a non-GAAP basis, adjusted EBITDA loss for the full year 2020 decreased by 35.4% to ($47.0) million from ($72.8) million for the full year 2019.Net cash and cash equivalents as of December 31, 2020 were $55.0 million, compared to $63.5 million as of September 30, 2020. The cash balance as of December 31, 2020 does not include net proceeds from the closing of the Company’s public offering of common stock on February 11, 2021 of approximately $39.1 million. Full Year 2021 Financial Outlook For full year 2021, the Company expects to achieve total net sales of $78 million to $84 million, representing growth of 10% to 18% compared to net sales of $71.2 million in 2020. Anticipates Breast Products net sales of $70 to $74 million, representing growth of 27% to 35% over 2020; andAnticipates miraDry net sales of $8 to $10 million. Conference Call Sientra will hold a conference call today, March 11, 2021 at 4:30 pm ET to discuss third quarter results. The dial-in numbers are 844-464-3933 for domestic callers and 765-507-2612 for international callers. The conference ID is 3371629. A live webcast of the conference call will be available on the Investor Relations section of the Company's website at www.sientra.com. The webcast will be archived on the website following the completion of the call. Use of Non-GAAP Financial Measures Sientra has supplemented its US GAAP net income (loss) with a non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the Company, facilitates a more meaningful comparison of results for current periods with previous operating results, and assists management in analyzing future trends, making strategic and business decisions and establishing internal budgets and forecasts. A reconciliation of non-GAAP Adjusted EBITDA to GAAP net income (loss), the most directly comparable GAAP measure, is provided in the schedule below. There are limitations in using this non-GAAP financial measure because it is not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. This non-GAAP financial measure should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with Sientra’s financial statements prepared in accordance with GAAP and the reconciliations of the non-GAAP financial measure provided in the schedule below. About Sientra Headquartered in Santa Barbara, California, Sientra is a medical aesthetics company uniquely focused on plastic surgeons. The Company offers a suite of products designed to make a difference in patients' lives by enhancing their body image, growing their self-esteem, and restoring their confidence. Sientra has developed a broad portfolio of products with technologically differentiated characteristics, supported by independent laboratory testing and strong clinical trial outcomes. The Company’s Breast Products Segment includes its Sientra round and shaped breast implants, the first fifth generation breast implants approved by the FDA for sale in the United States, its ground-breaking Allox2® breast tissue expander with patented dual-port and integral drain technology, and BIOCORNEUM® the #1 performing, preferred and recommended scar gel of plastic surgeons(*). The Company’s miraDry Segment, comprised of its miraDry® system, is approved for sale in over 56 international markets and is the only non-surgical, FDA-cleared device indicated for the permanent reduction of underarm sweat and hair and may also reduce odor. Sientra uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Sientra is routinely posted and is accessible on the Company’s investor relations website at www.sientra.com. (*) Data on file Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements are made only as of the date of this release. The words ‘‘believe,’’ ‘‘may,’’ ‘‘might,’’ ‘‘could,’’ ‘‘will,’’ ‘‘aim,’’ ‘‘estimate,’’ ‘‘continue, ‘‘anticipate,’’ ‘‘intend,’’ ‘‘expect,’’ ‘‘plan,’’ ‘‘position,” or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify estimates, projections and other forward-looking statements. Forward-looking statements may include information concerning the impact of the COVID-19 pandemic on the Company and its operations, the Company’s possible or assumed future results of operations, including descriptions of the Company’s revenues, profitability, anticipated growth rates, market outlook, impact of marketing programs and overall business strategy. Such statements are subject to risks and uncertainties, including the scope and duration of the COVID-19 pandemic, the Company’s ability to recapture delayed procedures resulting from the COVID-19 pandemic, the positive reaction from plastic surgeons and their patients to Sientra’s Breast Products, the positive reaction from plastic surgeons and patients to Sientra’s marketing, sales and educational programs, the ability to execute on the Company’s commercial, product development and manufacturing initiatives, the ability of the Company to drive revenue and operating leverage, the ability to meet consumer demand, the growth of the sale of bioTips in its miraDry segment, and the Company’s ability to manage its operating expenses and cash balance. Additional factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of Sientra’s public filings with the Securities and Exchange Commission. All statements other than statements of historical fact are forward-looking statements. The words ‘‘believe,’’ ‘‘may,’’ ‘‘might,’’ ‘‘could,’’ ‘‘will,’’ ‘‘aim,’’ ‘‘estimate,’’ ‘‘continue, ‘‘anticipate,’’ ‘‘intend,’’ ‘‘expect,’’ ‘‘plan,’’ ‘‘position,” or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify estimates, projections and other forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, and such estimates, projections and other forward-looking statements speak only as of the date they were made, and, except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection or forward-looking statement. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business. ContactInvestor Relations805-679-8885 Sientra, Inc. Consolidated Statements of Operations (In thousands, except per share and share amounts) (Unaudited) Three Months Ended Year Ended December 31, December 31, 2020 2019 2020 2019 Net sales $22,644 $23,210 $71,241 $83,699 Cost of goods sold 11,569 8,971 32,302 33,012 Gross profit 11,075 14,239 38,939 50,687 Operating expenses: Sales and marketing 14,939 19,202 52,553 80,189 Research and development 2,564 4,011 10,311 13,537 General and administrative 10,691 9,233 38,191 46,771 Restructuring (87) 1,083 1,762 1,083 Impairment — — 6,432 12,674 Total operating expenses 28,107 33,529 109,249 154,254 Loss from operations (17,032) (19,290) (70,310) (103,567)Other income (expense), net: Interest income 3 323 206 1,406 Interest expense (2,162) (1,292) (9,451) (4,568)Change in fair value of derivative liability (2,050) — (10,470) — Other income (expense), net 37 46 111 (55)Total other income (expense), net (4,172) (923) (19,604) (3,217)Loss before income taxes (21,204) (20,213) (89,914) (106,784)Income tax 33 34 33 34 Net loss $(21,237) $(20,247) $(89,947) $(106,818)Basic and diluted net loss per share attributable to common stockholders $(0.42) $(0.41) $(1.79) $(2.63)Weighted average outstanding common shares used for net loss per share attributable to common stockholders: Basic and diluted 50,462,124 49,506,169 50,233,175 40,654,272 Sientra, Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) December 31, December 31, 2020 2019 Assets Current assets: Cash and cash equivalents $54,967 $87,608 Accounts receivable, net 23,503 27,548 Inventories, net 48,648 39,612 Prepaid expenses and other current assets 2,154 2,489 Total current assets 129,272 157,257 Property and equipment, net 13,106 12,314 Goodwill 9,202 9,202 Other intangible assets, net 9,387 17,390 Other assets 8,011 8,241 Total assets $168,978 $204,404 Liabilities and Stockholders’ Equity Current liabilities: Current portion of long-term debt $4,670 $6,508 Accounts payable 6,504 9,352 Accrued and other current liabilities 32,389 32,551 Customer deposits 17,905 13,943 Sales return liability 9,192 8,116 Total current liabilities 70,660 70,470 Long-term debt, net of current portion 60,500 38,248 Derivative liability 26,570 — Deferred and contingent consideration 2,350 5,177 Warranty reserve and other long-term liabilities 9,455 8,627 Total liabilities 169,535 122,522 Stockholders’ equity: Total stockholders’ equity (557) 81,882 Total liabilities and stockholders’ equity $168,978 $204,404 Sientra, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Year Ended December 31, 2020 2019 Cash flows from operating activities: Net loss $(89,947) $(106,818)Adjustments to reconcile net loss to net cash used in operating activities: Impairment 6,432 12,674 Depreciation and amortization 4,094 3,524 Provision for doubtful accounts 4,423 2,298 Provision for warranties 1,271 929 Provision for inventory 3,601 2,626 Fair value adjustments to derivative liability 10,470 — Fair value adjustments of other liabilities held at fair value 96 969 Amortization of debt discount and issuance costs 4,347 359 Stock-based compensation expense 8,344 12,478 Payments of contingent consideration liability in excess of acquisition-date fair value — (1,968)Other non-cash adjustments 375 290 Changes in assets and liabilities: Accounts receivable (378) (7,320)Inventories (12,808) (10,921)Prepaid expenses, other current assets and other assets 935 (8,513)Accounts payable, accrueds, and other liabilities (6,420) 6,694 Customer deposits 3,961 4,008 Sales return liability 1,077 2,068 Legal settlement payable — (410)Net cash used in operating activities (60,127) (87,033)Cash flows from investing activities: Purchase of property and equipment (4,037) (4,071)Business acquisitions, net of cash and restricted cash acquired — (17,943)Net cash used in investing activities (4,037) (22,014)Cash flows from financing activities: Proceeds from option exercises and employee stock purchase plan 865 1,341 Net proceeds from issuance of common stock 263 107,734 Payments related to tax witholding on vested restricted stock units (RSUs) (1,791) (3,064)Gross borrowings under the Term Loan — 5,000 Repayments under the Term Loan (25,000) — Gross borrowings under the PPP loan 6,652 — Gross borrowings under the Revolving Loan — 22,296 Repayment of the Revolving Loan (6,508) (15,788)Net proceeds from issuance of the Convertible Note 60,000 — Payments of contingent consideration up to acquisition-date fair value — (5,766)Deferred financing costs (2,958) (1,997)Net cash provided by financing activities 31,523 109,756 Net increase (decrease) in cash, cash equivalents and restricted cash (32,641) 709 Cash, cash equivalents and restricted cash at: Beginning of period 87,951 87,242 End of period $55,310 $87,951 Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets Cash and cash equivalents $54,967 $87,608 Restricted cash included in other assets 343 343 Total cash, cash equivalents and restricted cash $55,310 $87,951 Sientra, Inc. Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA (Unaudited) Three Months Ended Year Ended December 31, December 31, Dollars, in thousands 2020 2019 2020 2019 Net loss, as reported $(21,237) $(20,247) $(89,947) $(106,818)Adjustments to net loss: Interest (income) expense and other, net 2,122 923 9,134 3,217 Provision for income taxes 33 34 33 34 Depreciation and amortization 1,098 986 4,094 3,524 Fair value adjustments to contingent consideration 68 454 135 1,044 Fair value adjustments to derivative liability 2,050 — 10,470 — Stock-based compensation 2,879 2,797 8,344 12,478 Restructuring (87) 1,083 1,762 1,083 One-time severance charges 2,539 — 2,539 — Impairment — — 6,432 12,674 Total adjustments to net loss 10,702 6,277 42,943 34,054 Adjusted EBITDA $(10,535) $(13,970) $(47,004) $(72,764) Three Months Ended Year Ended December 31, December 31, As a Percentage of Revenue** 2020 2019 2020 2019 Net loss, as reported (93.8%) (87.2%) (126.3%) (127.6%)Adjustments to net loss: Interest (income) expense and other, net 9.4% 4.0% 12.8% 3.8%Provision for income taxes 0.1% 0.1% 0.0% 0.0%Depreciation and amortization 4.8% 4.2% 5.7% 4.2%Fair value adjustments to contingent consideration 0.3% 2.0% 0.2% 1.2%Fair value adjustments to derivative liability 9.1% 0.0% 14.7% 0.0%Stock-based compensation 12.7% 12.1% 11.7% 14.9%Restructuring (0.4%) 4.7% 2.5% 1.3%One-time severance charges 11.2% 0.0% 3.6% 0.0%Impairment 0.0% 0.0% 9.0% 15.1%Total adjustments to net loss 47.3% 27.0% 60.3% 40.7%Adjusted EBITDA (46.5%) (60.2%) (66.0%) (86.9%) ** Adjustments may not add to the total figure due to rounding

  • Sientra Announces Departure of CFO and Appointment of Interim CFO
    GlobeNewswire

    Sientra Announces Departure of CFO and Appointment of Interim CFO

    SANTA BARBARA, Calif., March 11, 2021 (GLOBE NEWSWIRE) -- Sientra, Inc. (NASDAQ: SIEN) (“Sientra” or the “Company”), a medical aesthetics company uniquely focused on plastic surgeons, today announced that Paul Little is stepping down from his position as Chief Financial Officer, Senior Vice President and Treasurer, to pursue other opportunities effective March 12, 2021. Valerie Miller, current Vice President, Corporate Controller, will serve as interim Chief Financial Officer effective upon Mr. Little’s resignation as the Company completes its search for a permanent replacement. “We thank Paul for his diligent work and greatly appreciate all his contributions to our team through his tenure at Sientra,” said Ron Menezes, President and Chief Executive Officer of Sientra. “He was integral in positioning our company for durable future growth by strengthening our balance sheet and driving efficiencies to accelerate our path to revenue growth and we wish him well in his future endeavors.” “It has been a privilege to work alongside the entire Sientra team and to have been a part of the company’s growth story,” said Mr. Little. “While stepping down was a difficult decision, and one based solely on personal reasons, I am confident that Sientra will remain on a solid path forward under Ron’s leadership.” Mr. Menezes added, "Given her strong knowledge of our business and financial reporting standards I have great confidence in Ms. Miller’s ability to lead the finance team on an interim basis as we recruit a new Chief Financial Officer. We expect that the transition will have no material impact on our operations, and we remain confident in our near-term growth prospects as we remain well capitalized with a highly efficient team." Ms. Miller joined Sientra in September 2017 as Vice President, Corporate Controller and has since been responsible for the accounting and finance functions of the Company. Prior to joining Sientra, Ms. Miller served as Corporate Controller at The Trade Desk, Inc. and as Senior Director of Finance & Accounting at LinkedIn. Previously, she served as a Vice President on the finance team of Mentor Worldwide, a subsidiary of Johnson & Johnson. Ms. Miller holds a Bachelor’s in Economics from the University of California, Santa Barbara. Mr. Little’s departure is not related to any disagreement with the company’s accounting principles or practices or financial statement disclosures. About Sientra Headquartered in Santa Barbara, California, Sientra is a medical aesthetics company uniquely focused on plastic surgeons. The Company offers a suite of products designed to make a difference in patients' lives by enhancing their body image, growing their self-esteem, and restoring their confidence. Sientra has developed a broad portfolio of products with technologically differentiated characteristics, supported by independent laboratory testing and strong clinical trial outcomes. The Company’s Breast Products Segment includes its Sientra round and shaped breast implants, the first fifth generation breast implants approved by the FDA for sale in the United States, its ground-breaking Allox2® breast tissue expander with patented dual-port and integral drain technology, and BIOCORNEUM® the #1 performing, preferred and recommended scar gel of plastic surgeons(*). The Company’s miraDry Segment, comprised of its miraDry® system, is approved for sale in over 56 international markets and is the only non-surgical, FDA-cleared device indicated for the permanent reduction of underarm sweat and hair and may also reduce odor. Sientra uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Sientra is routinely posted and is accessible on the Company’s investor relations website at www.sientra.com. (*) Data on file Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements regarding the CFO transition and employment matters related thereto and the Company’s growth prospects. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include risks described in the section entitled “Risk Factors” and elsewhere in our filings made with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. Sientra disclaims any obligation to update these forward-looking statements. ContactInvestor Relations805-679-8885