Educational and Training Programs
Introducing Broader Community of Dentists to Experience
Industry-Leading Dental Lasers for the First Time
LAKE
FOREST, Calif., May 11, 2023
/PRNewswire/ -- BIOLASE, Inc. (NASDAQ: BIOL), the global
leader in dental lasers, today announced its financial results for
the first quarter ended March 31,
2023.
First Quarter Financial Highlights
- Reported revenue of $10.5
million, the ninth consecutive quarter of year-over-year
growth
- Increased international laser sales by 22% year over year
- Record quarter in consumable sales, with U.S. consumable sales
increasing 19% year over year, driven by increased procedures using
BIOLASE laser systems
- Generated increased adoption of its industry-leading laser,
with approximately 58% of U.S. Waterlase sales coming from new
customers and approximately 33% from dental specialists
- Sales conversion success rate continued to rise in the first
quarter, up more than 20% over the year-ago sales conversion
success rate of the Company's Waterlase Exclusive Trial
Program
"Our results for the first quarter were largely in-line with our
prior expectations that we discussed on our 2022 earnings call a
couple of months ago, and it's encouraging that we achieved another
quarter of year-over-year growth despite the comparable periods
being tougher," commented John
Beaver, President and Chief Executive Officer. "I believe
the sales team's enthusiasm, which is being felt throughout the
organization, is a combination of our go-to-market initiatives and
the positive response they are getting from the broader dental
community – especially those new to our award-winning lasers. We
believe the effort and investments we are making today will pay off
in the coming quarters, as evidenced by the rising demand and the
rising number of dentists that are attending our many training
events and those benefitting from our novel educational programs.
For example, the Waterlase Exclusive Trial Program is generating
stellar results and we believe is creating a tailwind that gives us
greater confidence that we can achieve our revenue growth and
profitability outlook for the full year. In addition, our record
quarter in consumable sales represents a historic shift in laser
utilization, and further demonstrates the impact more frequent,
higher quality training and pre-sale training programs such as WETP
can have on our consumable business and achieving margin
growth."
First Quarter Financial Results
Net revenue for the quarter ended March
31, 2023 was $10.5 million, an
increase of 3% compared to net revenue of $10.2 million for the quarter ended March 31, 2022. U.S. laser revenue was
$3.5 million for the quarter ended
March 31, 2023, a decrease of 14%
compared to U.S. laser revenue of $4.0
million for the quarter ended March
31, 2022. U.S. consumables and other revenue for the
quarter ended March 31, 2023, which
consists of revenue from consumable products such as disposable
tips, increased 19% year over year. International laser revenue was
$2.8 million for the quarter ended
March 31, 2023, up 22% compared to
$2.3 million for the quarter ended
March 31, 2022.
Gross margin for the quarter ended March
31, 2023 was 32% compared to 47% for the quarter ended
March 31, 2022. The decrease in gross
profit is primarily due to the impact of supply chain issues we
have encountered requiring us to change to new suppliers, and the
effect of an increase in the percentage of our revenue generated
outside the U.S., where margins are lower than our U.S. business.
Total operating expenses were $8.6
million for the quarter ended March
31, 2023, compared to $8.9
million for the quarter ended March
31, 2022, a 3% decrease year over year. Operating loss for
the quarter ended March 31, 2023 was
$5.3 million, compared to an
operating loss of $4.2 million for
the quarter ended March 31, 2022, an
increase of 26% year over year.
The Company had cash and cash equivalents of approximately
$6.5 million on March 31, 2023.
Net Loss and Adjusted EBITDA
The Non-GAAP Financial Measures at the end of this news release
provides the details of the Company's non-GAAP disclosures and the
reconciliation of GAAP net loss and net loss per share to the
Company's adjusted EBITDA and adjusted EBITDA per share.
Net loss attributable to common stockholders for the quarter
ended March 31, 2023 was $5.8 million, or $0.18 per share, compared to a net loss of
$5.0 million, or $0.81 per share, for the quarter ended
March 31, 2022. Adjusted EBITDA for
the quarter ended March 31, 2023 was
a loss of $4.4 million, or
$0.14 per share, compared with an
adjusted EBITDA loss of $3.9 million,
or $0.64 per share, for the quarter
ended March 31, 2022.
2023 Second Quarter and Full Year Financial Guidance
BIOLASE is anticipating second-quarter net revenue to grow at
least 25% year over year. The Company is also reiterating its 2023
full-year revenue guidance for net revenue to increase at least 25%
year over year and expects to achieve positive adjusted EBITDA
results for the full year of 2023 (adjusted EBITDA is defined as
net loss before interest, taxes, depreciation and amortization,
stock-based and other non-cash compensation, and the change in
allowance for doubtful accounts).
Conference Call Information
BIOLASE, Inc. will host a conference call today at 4:30 p.m. Eastern Time to discuss its operating
results for the first quarter ended March
31, 2023, and to answer questions. To access the live call,
dial 1-877-545-0523 (U.S.) or +1 973-528-0016 (International) and
provide the following code: 180082.
A live and archived webcast of the conference call will be
accessible on the BIOLASE Investor Relations page. In addition, a
phone replay will be available approximately two hours following
the end of the call, and it will remain available for one week. To
access the call replay, dial 1-877-481-4010 or +1 919-882-2331
(International) and enter replay passcode: 48342.
About BIOLASE
BIOLASE is a medical device company that develops, manufactures,
markets, and sells laser systems in dentistry and medicine.
BIOLASE's products advance the practice of dentistry and medicine
for patients and healthcare professionals. BIOLASE's proprietary
laser products incorporate approximately 266 actively patented and
25 patent-pending technologies designed to provide biologically and
clinically superior performance with less pain and faster recovery
times. BIOLASE's innovative products provide cutting-edge
technology at competitive prices to deliver superior results for
dentists and patients. BIOLASE's principal products are dental
laser systems that perform a broad range of dental procedures,
including cosmetic and complex surgical applications. From 1998
through December 31, 2022, BIOLASE
has sold over 45,500 laser systems in over 80 countries around the
world. Laser products under development address BIOLASE's core
dental market and other adjacent medical and consumer
applications.
For updates and information on Waterlase iPlus®, Waterlase
Express™, and laser dentistry, find BIOLASE online at
www.biolase.com, Facebook at www.facebook.com/biolase, Twitter at
www.twitter.com/biolaseinc, Instagram at
www.instagram.com/waterlase_laserdentistry, and LinkedIn at
www.linkedin.com/company/biolase.
BIOLASE®, Waterlase® and Waterlase iPlus® are registered
trademarks of BIOLASE, Inc.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements, as that
term is defined in the Private Securities Litigation Reform Act of
1995, that involve significant risks and uncertainties, including
statements, regarding BIOLASE's expected revenue and revenue
growth. Forward-looking statements can be identified through the
use of words such as "may," "might," "will," "intend," "should,"
"could," "can," "would," "continue," "expect," "believe,"
"anticipate," "estimate," "predict," "outlook," "potential,"
"plan," "seek," and similar expressions and variations or the
negatives of these terms or other comparable terminology. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which reflect BIOLASE's current expectations and speak
only as of the date of this release. Actual results may differ
materially from BIOLASE's current expectations depending upon a
number of factors. These factors include, among others, adverse
changes in general economic and market conditions, competitive
factors including, but not limited to, pricing pressures and new
product introductions, uncertainty of customer acceptance of new
product offerings and market changes, risks associated with
managing the growth of the business, substantial doubt regarding
BIOLASE's ability to continue as a going concern, inability to
raise additional capital on terms acceptable to BIOLASE and those
other risks and uncertainties that are described in the "Risk
Factors" section of BIOLASE's most recent annual report on Form
10-K and quarterly report on Form 10-Q filed with the Securities
and Exchange Commission. Except as required by law, BIOLASE does
not undertake any responsibility to revise or update any
forward-looking statements.
For further information, please contact:
EVC Group LLC
Michael Polyviou / Todd Kehrli
(732) 933-2754
mpolyviou@evcgroup.com / tkehrli@evcgroup.com
Tables to Follow
BIOLASE,
INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS (Unaudited, in thousands, except per
share data)
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
|
|
|
|
2023
|
|
|
2022
|
|
Net revenue
|
|
$
|
10,467
|
|
|
$
|
10,166
|
|
Cost of
revenue
|
|
|
7,130
|
|
|
|
5,437
|
|
Gross profit
|
|
|
3,337
|
|
|
|
4,729
|
|
Operating
expenses:
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
4,622
|
|
|
|
4,814
|
|
General and
administrative
|
|
|
2,459
|
|
|
|
2,577
|
|
Engineering and
development
|
|
|
1,547
|
|
|
|
1,544
|
|
Total operating
expenses
|
|
|
8,628
|
|
|
|
8,935
|
|
Loss from
operations
|
|
|
(5,291)
|
|
|
|
(4,206)
|
|
Gain (loss) on foreign
currency transactions
|
|
|
20
|
|
|
|
(120)
|
|
Interest expense,
net
|
|
|
(577)
|
|
|
|
(433)
|
|
Non-operating loss,
net
|
|
|
(557)
|
|
|
|
(553)
|
|
Loss before income tax
provision
|
|
|
(5,848)
|
|
|
|
(4,759)
|
|
Income tax
provision
|
|
|
(1)
|
|
|
|
(17)
|
|
Net loss
|
|
|
(5,849)
|
|
|
|
(4,776)
|
|
Other comprehensive
loss items:
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
80
|
|
|
|
(41)
|
|
Comprehensive
loss
|
|
$
|
(5,769)
|
|
|
$
|
(4,817)
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(5,849)
|
|
|
$
|
(4,776)
|
|
Deemed dividend on
convertible preferred stock
|
|
|
—
|
|
|
|
(217)
|
|
Net loss attributable
to common stockholders
|
|
$
|
(5,849)
|
|
|
$
|
(4,993)
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders:
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$
|
(0.18)
|
|
|
$
|
(0.81)
|
|
Shares used in the
calculation of net loss per share:
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
32,806
|
|
|
|
6,159
|
|
BIOLASE,
INC. CONSOLIDATED BALANCE SHEETS (Unaudited,
in thousands, except per share data)
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
6,532
|
|
|
$
|
4,181
|
|
Accounts receivable,
less allowance of $2,124 and $2,164 as of March 31, 2023
and
December 31, 2022, respectively
|
|
|
5,158
|
|
|
|
5,841
|
|
Inventory
|
|
|
17,775
|
|
|
|
15,884
|
|
Prepaid expenses and
other current assets
|
|
|
2,499
|
|
|
|
3,053
|
|
Total current
assets
|
|
|
31,964
|
|
|
|
28,959
|
|
Property, plant, and
equipment, net
|
|
|
4,719
|
|
|
|
4,278
|
|
Goodwill
|
|
|
2,926
|
|
|
|
2,926
|
|
Right of use
asset
|
|
|
2,078
|
|
|
|
1,768
|
|
Other
assets
|
|
|
257
|
|
|
|
255
|
|
Total
assets
|
|
$
|
41,944
|
|
|
$
|
38,186
|
|
LIABILITIES,
REDEEMABLE PREFERRED STOCK AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
7,540
|
|
|
$
|
5,786
|
|
Accrued
liabilities
|
|
|
7,977
|
|
|
|
9,210
|
|
Deferred revenue,
current portion
|
|
|
2,082
|
|
|
|
2,111
|
|
Term loan, net of
discount
|
|
|
1,400
|
|
|
|
700
|
|
Total current
liabilities
|
|
|
18,999
|
|
|
|
17,807
|
|
Deferred
revenue
|
|
|
355
|
|
|
|
418
|
|
Warranty
accrual
|
|
|
426
|
|
|
|
360
|
|
Non current term
loans, net of discount
|
|
|
12,496
|
|
|
|
13,091
|
|
Non current operating
lease liability
|
|
|
1,432
|
|
|
|
1,259
|
|
Other
liabilities
|
|
|
78
|
|
|
|
362
|
|
Total
liabilities
|
|
|
33,786
|
|
|
|
33,297
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Common stock, par
value $0.001 per share
|
|
|
26
|
|
|
|
8
|
|
Additional paid-in
capital
|
|
|
310,802
|
|
|
|
301,782
|
|
Accumulated other
comprehensive loss
|
|
|
(653)
|
|
|
|
(733)
|
|
Accumulated
deficit
|
|
|
(302,017)
|
|
|
|
(296,168)
|
|
Total stockholders'
equity
|
|
|
8,158
|
|
|
|
4,889
|
|
Total liabilities,
redeemable preferred stock and stockholders' equity
|
|
$
|
41,944
|
|
|
$
|
38,186
|
|
BIOLASE,
INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
|
|
|
|
2023
|
|
|
2022
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(5,849)
|
|
|
$
|
(4,776)
|
|
Adjustments to
reconcile net loss to net cash and cash equivalents used in
operating activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
149
|
|
|
|
117
|
|
Provision (recoveries)
for bad debts
|
|
|
(17)
|
|
|
|
84
|
|
Provision for sales
returns
|
|
|
—
|
|
|
|
60
|
|
Amortization of debt
issuance costs
|
|
|
107
|
|
|
|
67
|
|
Stock-based
compensation
|
|
|
691
|
|
|
|
209
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
700
|
|
|
|
(1,085)
|
|
Inventory
|
|
|
(1,890)
|
|
|
|
(1,682)
|
|
Prepaid expenses and
other current assets
|
|
|
240
|
|
|
|
(186)
|
|
Accounts payable and
accrued liabilities
|
|
|
303
|
|
|
|
(986)
|
|
Deferred
revenue
|
|
|
(92)
|
|
|
|
157
|
|
Net cash and cash
equivalents used in operating activities
|
|
|
(5,658)
|
|
|
|
(8,021)
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
Purchases of property,
plant, and equipment
|
|
|
(587)
|
|
|
|
(304)
|
|
Net cash and cash
equivalents used in investing activities
|
|
|
(587)
|
|
|
|
(304)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
Proceeds from the sale
of common stock and pre-funded warrants
|
|
|
8,503
|
|
|
|
—
|
|
Proceeds from the
exercise of common stock warrants
|
|
|
14
|
|
|
|
—
|
|
Net cash and cash
equivalents provided by financing activities
|
|
|
8,517
|
|
|
|
—
|
|
Effect of exchange
rate changes
|
|
|
79
|
|
|
|
(41)
|
|
(Decrease) increase in
cash, cash equivalents and restricted cash
|
|
|
2,351
|
|
|
|
(8,366)
|
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
|
4,181
|
|
|
|
30,175
|
|
Cash, cash equivalents
and restricted cash, end of period
|
|
$
|
6,532
|
|
|
$
|
21,809
|
|
Supplemental cash flow
disclosure:
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
470
|
|
|
$
|
377
|
|
Cash received for
interest
|
|
$
|
2
|
|
|
$
|
10
|
|
Cash paid (received)
for income taxes
|
|
$
|
(14)
|
|
|
$
|
26
|
|
Cash paid for
operating leases
|
|
$
|
68
|
|
|
$
|
66
|
|
Non-cash right-of-use
assets obtained in exchange for lease obligation
|
|
$
|
464
|
|
|
$
|
444
|
|
Deemed dividend on
preferred stock
|
|
$
|
—
|
|
|
$
|
217
|
|
Non-GAAP Financial Measures
In addition to the financial information prepared in conformity
with generally accepted accounting principles in the U.S. ("GAAP"),
this press release includes certain
historical non-GAAP financial information. Management
believes that these non-GAAP financial measures assist
investors in making comparisons
of period-to-period operating results and that, in some
respects, these non-GAAP financial measures are more
indicative of the Company's ongoing core operating performance than
their GAAP equivalents.
Adjusted EBITDA is defined as net loss before interest, taxes,
depreciation and amortization, stock-based and other non-cash
compensation, and the change in allowance for doubtful accounts.
Management uses adjusted EBITDA in its evaluation of the Company's
core results of operations and trends between fiscal periods and
believes that these measures are important components of its
internal performance measurement process. Therefore, investors
should consider non-GAAP financial measures in addition
to, and not as a substitute for, or as superior to, measures of
financial performance prepared in accordance with GAAP. Further,
the non-GAAP financial measures presented by the Company
may be different from similarly named non-GAAP financial
measures used by other companies.
BIOLASE,
INC. Reconciliation of GAAP Net Loss to Adjusted EBITDA
and GAAP Net Loss Per Share to Adjusted EBITDA Per
Share (Unaudited, in thousands, except per share
data)
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
|
|
|
|
2023
|
|
|
2022
|
|
GAAP net loss
attributable to common stockholders
|
|
$
|
(5,849)
|
|
|
$
|
(4,993)
|
|
Deemed dividend on
convertible preferred stock
|
|
|
—
|
|
|
|
217
|
|
GAAP net
loss
|
|
$
|
(5,849)
|
|
|
$
|
(4,776)
|
|
Adjustments:
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
577
|
|
|
|
433
|
|
Income tax
provision
|
|
|
1
|
|
|
|
17
|
|
Depreciation and
amortization
|
|
|
149
|
|
|
|
117
|
|
Change in allowance for
doubtful accounts
|
|
|
(17)
|
|
|
|
84
|
|
Stock-based and other
non-cash compensation
|
|
|
691
|
|
|
|
209
|
|
Adjusted
EBITDA
|
|
$
|
(4,448)
|
|
|
$
|
(3,916)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
attributable to common stockholders
per share, basic and diluted
|
|
$
|
(0.18)
|
|
|
$
|
(0.81)
|
|
Deemed dividend on
convertible preferred stock
|
|
|
—
|
|
|
|
0.04
|
|
GAAP net loss per
share, basic and diluted
|
|
$
|
(0.18)
|
|
|
$
|
(0.77)
|
|
Adjustments:
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
0.02
|
|
|
|
0.07
|
|
Income tax
provision
|
|
|
—
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
—
|
|
|
|
0.02
|
|
Change in allowance for
doubtful accounts
|
|
|
—
|
|
|
|
0.01
|
|
Stock-based and other
non-cash compensation
|
|
|
0.02
|
|
|
|
0.03
|
|
Adjusted EBITDA per
share, basic and diluted
|
|
$
|
(0.14)
|
|
|
$
|
(0.64)
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/biolase-maintains-momentum-and-reports-ninth-consecutive-quarter-of-year-over-year-growth-reiterates-full-year-guidance-of-at-least-25-revenue-growth-and-profitability-for-full-year-2023-301822780.html
SOURCE BIOLASE, Inc.