Intricon Corporation (NASDAQ: IIN), an
international company engaged in designing, developing,
engineering, and manufacturing miniature interventional,
implantable and body-worn medical devices, today announced
financial results for its fourth quarter and year ended December
31, 2020.
Fourth Quarter Highlights:
- Revenue of $30.3 million compared to $27.7 million in the prior
year period
- Diabetes revenue was flat compared to the prior year
period
- Other medical revenue increased 74.3% over the prior year
period, which included the contribution from Emerald Medical
Services (“EMS”) acquired in May 2020
- Gross margin of 25.7%, compared to 26.9% in the prior year
period
- Net income of $0.12 per diluted share versus net income of
$0.08 per diluted share in the prior year period
- As of December 31, 2020, the company had approximately $33.5
million of cash and investments
Full Year Financial Highlights:
- Revenue of $102.8 million compared to $113.5 million in the
prior year
- Diabetes revenue declined 13.5% year-over-year
- Other medical revenue increased 46.3% year-over-year, which
included the contribution from the acquisition of EMS
- Gross margin of 25.5%, compared to 27.3% in the prior year
- Net loss per diluted share of $0.28 versus net loss of $0.43
per diluted share in the prior year
"Despite the ongoing impact of COVID-19, we were able to
generate solid fourth quarter results and advance our operational
goals,” said Scott Longval, President and Chief Executive Officer.
“I’m proud of the meaningful progress we’ve made towards expanding
existing key relationships and leveraging our core competencies to
diversify our customer base and medical markets. Our successful
acquisition of Emerald Medical Services last May further supported
our growth while also allowing us to expand into new markets. And,
most recently, we welcomed Ellen Scipta as CFO to further build out
our leadership team.
“To highlight Intricon’s evolution, as well as our renewed
commitment to our corporate vision, we recently completed an
extensive rebranding effort that incorporated an enhanced website
that also includes our Environmental, Social, and Governance (ESG)
policies and disclosures,” added Longval. “We enter 2021 focused
more than ever on our underlying mission to be the leading joint
development manufacturer in micromedical technology.”
Fourth Quarter 2020 Financial ResultsFor the
2020 fourth quarter, the company reported net revenue of $30.3
million versus $27.7 million in the comparable prior-year
period.
Revenue in Intricon’s Medical business was $23.9 million, an
increase from $21.3 million in the comparable prior-year period.
The year-over-year increase was driven primarily by the impact of
EMS, which the company acquired in May 2020.
Hearing Health revenue was $5.1 million in the fourth quarter of
2020 compared to $4.9 million in the prior-year fourth quarter. The
revenue increase was largely attributed to stronger legacy OEM and
indirect-to-end-consumer sales, reflecting pent-up demand from the
early days of the COVID-19 pandemic, partially offset by the
expected decline in direct-to-end-consumer business.
Gross margin in the fourth quarter of 2020 was 25.7%, compared
to 26.9% in the prior-year fourth quarter, primarily due to product
mix.
Operating expenses for the fourth quarter were $6.8 million,
compared to $6.7 million in the comparable prior-year period. The
slight increase was due to $0.5 million in EMS operating expenses
and a $0.4 million expense related to increases in fair value of
the EMS earn-out liability, partially offset by previously
disclosed cost reduction initiatives.
The company posted net income of $1.1 million or $0.12 per
diluted share in the fourth quarter of 2020, versus net income of
$0.77 million or $0.08 per diluted share, for the 2019 fourth
quarter.
Full Year 2020 Financial Results
For 2020, the
company reported net revenue of $102.8 million versus $113.5
million in 2019.
Revenue in Intricon’s Medical business was $79.0 million for
2020, a decrease from $82.1 million in 2019. The year-over-year
decrease was driven primarily by the reduction in orders due to
uncertainty surrounding the COVID-19 pandemic partially offset by
the previously mentioned acquisition of EMS, which contributed $7.4
million in revenue during 2020.
Hearing Health revenue was $19.0 million in 2020 compared to
$24.9 million in 2019. The revenue decrease year-over-year was
largely attributed to the absence of hi Health Innovations revenue
and a reduction in advertising as part of the Hearing Help Express
restructuring efforts, leading to reduced sales.
Gross margin in 2020 was 25.5%, compared to 27.3% in 2019,
primarily due to lower revenues volumes, product mix, partially
offset by cost reduction initiatives implemented in the 2020 second
quarter.
Operating expenses for 2020 were $29.3 million, compared to
$33.0 million in 2019. The change in operating expenses
year-over-year was due to cost reduction initiatives, partially
offset by $1.5 million in EMS operating expenses, $0.7 million of
expense related increases in fair value of the EMS earn-out
liability and $0.8 million in costs associated with the CEO
Transition Agreement signed in June 2020.
The company posted a net loss of $2.5 million or $0.28 per
diluted share for 2020, versus net loss of $3.8 million or $0.43
per diluted share, for 2019.
Total cash and investments was $33.5 million as of December 31,
2020, compared to $40.6 million as of December 31, 2019.
GuidanceDue to continued uncertainties
resulting from the COVID-19 global pandemic, the company is not
issuing 2021 financial guidance at this time.
Conference Call Intricon will hold a conference
call today, February 25, 2021, beginning at 4:00 p.m. CT / 5:00
p.m. ET. Investors interested in listening to the conference call
may do so by dialing 866-795-7248 for domestic callers or
470-495-9160 for international callers, using conference ID:
5468087. A live and archived webcast will be available on the
“Investors” sections of the company’s website at:
www.Intricon.com.
Forward-Looking StatementsStatements made in
this release and in Intricon’s other public filings and releases
that are not historical facts or that include forward-looking
terminology, are “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements may be affected by known and unknown
risks, uncertainties and other factors that are beyond Intricon’s
control, including without limitation, the impacts of the COVID-19
pandemic and measures taken in response, and may cause Intricon’s
actual results, performance or achievements to differ materially
from the results, performance and achievements expressed or implied
in the forward-looking statements. These risks, uncertainties and
other factors are detailed from time to time in the company’s
filings with the Securities and Exchange Commission, including the
Annual Report on Form 10-K for the year ended December 31, 2019 and
the Quarterly Report on Form 10-Q for the quarter ended September
30, 2020. The company disclaims any intent or obligation to
publicly update or revise any forward-looking statements,
regardless of whether new information becomes available, future
developments occur or otherwise.
About Intricon CorporationIntricon is a
Joint Development Manufacturer that integrates components and
assemblies to advance micro-medical technology across a range of
device platforms for global customers. Intricon approaches each
engagement with an all-in commitment, working with customers every
step of the way- from the earliest idea stages to ongoing
production - in order to advance program performance and deliver
results. With a focus on key device platforms, Intricon helps
advance clinical outcomes by always looking ahead with proactive
support and resources through integration of its core competencies.
Intricon has facilities in the United States, Asia and Europe. The
company's common stock trades under the symbol "IIN" on the NASDAQ
Global Market.
Investor ContactLeigh Salvo(415)
937-5404 investorrelations@intricon.com
INTRICON CORPORATIONMARKET REVENUE(Unaudited)
|
FOURTH QUARTER |
|
YEAR TO DATE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
000's) |
2020 |
|
2019 |
|
Change |
|
2020 |
|
2019 |
|
Change |
|
Diabetes |
$ |
17,742 |
|
$ |
17,769 |
|
-0.2 |
% |
|
$ |
59,311 |
|
$ |
68,606 |
|
-13.5 |
% |
|
Other Medical |
|
6,170 |
|
|
3,540 |
|
74.3 |
% |
|
|
19,726 |
|
|
13,487 |
|
46.3 |
% |
|
Value Hearing Health - Direct-to-End-Consumer |
|
917 |
|
|
1,244 |
|
-26.3 |
% |
|
|
4,430 |
|
|
6,120 |
|
-27.6 |
% |
|
Value Hearing Health - Indirect-to-End-Consumer |
|
1,546 |
|
|
1,491 |
|
3.7 |
% |
|
|
5,558 |
|
|
8,910 |
|
-37.6 |
% |
|
Hearing Health - Legacy OEM |
|
2,648 |
|
|
2,144 |
|
23.5 |
% |
|
|
8,968 |
|
|
9,892 |
|
-9.3 |
% |
|
Professional Audio Communications |
|
1,278 |
|
|
1,506 |
|
-15.1 |
% |
|
|
4,780 |
|
|
6,478 |
|
-26.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
30,301 |
|
$ |
27,694 |
|
9.4 |
% |
|
$ |
102,773 |
|
$ |
113,493 |
|
-9.4 |
% |
|
INTRICON CORPORATIONCONSOLIDATED STATEMENT OF
OPERATIONS(In Thousands, Except Per Share Amounts)
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, net |
$ |
30,301 |
|
|
$ |
27,694 |
|
|
$ |
102,773 |
|
|
$ |
113,493 |
|
|
Cost of goods sold |
|
22,502 |
|
|
|
20,254 |
|
|
|
76,598 |
|
|
|
82,507 |
|
|
Gross profit |
|
7,799 |
|
|
|
7,440 |
|
|
|
26,175 |
|
|
|
30,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
1,633 |
|
|
|
2,428 |
|
|
|
6,671 |
|
|
|
11,498 |
|
|
General and administrative |
|
3,334 |
|
|
|
3,382 |
|
|
|
15,007 |
|
|
|
13,933 |
|
|
Research and development |
|
1,380 |
|
|
|
928 |
|
|
|
5,248 |
|
|
|
3,830 |
|
|
Restructuring charges |
|
- |
|
|
|
- |
|
|
|
1,171 |
|
|
|
- |
|
|
Impairment loss |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,765 |
|
|
Other operating expenses |
|
407 |
|
|
|
- |
|
|
|
1,153 |
|
|
|
- |
|
|
Total operating expenses |
|
6,754 |
|
|
|
6,738 |
|
|
|
29,250 |
|
|
|
33,026 |
|
|
Operating income (loss) |
|
1,045 |
|
|
|
702 |
|
|
|
(3,075 |
) |
|
|
(2,040 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
9 |
|
|
|
217 |
|
|
|
331 |
|
|
|
920 |
|
|
Other income (expense),
net |
|
23 |
|
|
|
(284 |
) |
|
|
316 |
|
|
|
(743 |
) |
|
Income (loss) from continuing
operations before income taxes and discontinued operations |
|
1,077 |
|
|
|
635 |
|
|
|
(2,428 |
) |
|
|
(1,863 |
) |
|
Income tax expense
(benefit) |
|
(33 |
) |
|
|
(133 |
) |
|
|
61 |
|
|
|
201 |
|
|
Income (loss) from continuing
operations before discontinued operations |
|
1,110 |
|
|
|
768 |
|
|
|
(2,489 |
) |
|
|
(2,064 |
) |
|
Loss on disposal of
discontinued operations |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,116 |
) |
|
Loss from discontinued
operations |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(597 |
) |
|
Net income (loss) |
|
1,110 |
|
|
|
768 |
|
|
|
(2,489 |
) |
|
|
(3,777 |
) |
|
Less: Income allocated to
non-controlling interest |
|
18 |
|
|
|
- |
|
|
|
35 |
|
|
|
- |
|
|
Net income (loss) attributable
to Intricon shareholders |
$ |
1,092 |
|
|
$ |
768 |
|
|
$ |
(2,524 |
) |
|
$ |
(3,777 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per share
attributable to Intricon shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
$ |
0.12 |
|
|
$ |
0.09 |
|
|
$ |
(0.28 |
) |
|
$ |
(0.23 |
) |
|
Discontinued operations |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.20 |
) |
|
Net income (loss) per
share: |
$ |
0.12 |
|
|
$ |
0.09 |
|
|
$ |
(0.28 |
) |
|
$ |
(0.43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per
share attributable to Intricon shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
$ |
0.12 |
|
|
$ |
0.08 |
|
|
$ |
(0.28 |
) |
|
$ |
(0.23 |
) |
|
Discontinued operations |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.20 |
) |
|
Net income (loss) per
share: |
$ |
0.12 |
|
|
$ |
0.08 |
|
|
$ |
(0.28 |
) |
|
$ |
(0.43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
8,945 |
|
|
|
8,779 |
|
|
|
8,894 |
|
|
|
8,748 |
|
|
Diluted |
|
9,447 |
|
|
|
9,398 |
|
|
|
8,894 |
|
|
|
8,748 |
|
|
INTRICON CORPORATIONCONSOLIDATED BALANCE SHEET(In
Thousands, Except Per Share Amounts)
|
|
December 31, |
|
|
December 31, |
|
|
2020 |
|
|
2019 |
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
8,608 |
|
|
$ |
8,523 |
|
Restricted cash |
|
672 |
|
|
|
639 |
|
Short-term investment
securities |
|
19,793 |
|
|
|
23,451 |
|
Accounts receivable, less
provision for doubtful accounts of $210 at December 31, 2020 and
$325 at December 31, 2019 |
|
10,115 |
|
|
|
8,993 |
|
Inventories |
|
19,513 |
|
|
|
16,377 |
|
Contract assets |
|
9,107 |
|
|
|
10,237 |
|
Other current assets |
|
1,466 |
|
|
|
1,975 |
|
Current assets of discontinued
operations |
|
- |
|
|
|
80 |
|
Total current assets |
|
69,274 |
|
|
|
70,275 |
|
|
|
|
|
|
|
Machinery and equipment |
|
45,661 |
|
|
|
41,073 |
|
Less: Accumulated depreciation |
|
31,484 |
|
|
|
27,522 |
|
Net machinery and equipment |
|
14,177 |
|
|
|
13,551 |
|
|
|
|
|
|
|
Goodwill |
|
13,714 |
|
|
|
9,551 |
|
Intangible assets |
|
10,785 |
|
|
|
5,545 |
|
Operating lease right-of-use
assets, net |
|
6,701 |
|
|
|
4,372 |
|
Investment in partnerships |
|
570 |
|
|
|
1,160 |
|
Long-term investment
securities |
|
5,085 |
|
|
|
8,629 |
|
Other assets, net |
|
990 |
|
|
|
510 |
|
Total assets |
$ |
121,296 |
|
|
$ |
113,593 |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Current financing leases |
$ |
21 |
|
|
$ |
101 |
|
Current operating leases |
|
2,156 |
|
|
|
1,729 |
|
Accounts payable |
|
8,670 |
|
|
|
9,876 |
|
Accrued salaries, wages and
commissions |
|
3,581 |
|
|
|
2,274 |
|
Other accrued liabilities |
|
4,235 |
|
|
|
2,869 |
|
Liabilities of discontinued
operations |
|
- |
|
|
|
77 |
|
Total current liabilities |
|
18,663 |
|
|
|
16,926 |
|
|
|
|
|
|
|
Noncurrent financing leases |
|
- |
|
|
|
30 |
|
Noncurrent operating leases |
|
4,726 |
|
|
|
2,937 |
|
Other postretirement benefit
obligations |
|
385 |
|
|
|
382 |
|
Accrued pension liabilities |
|
907 |
|
|
|
655 |
|
Deferred tax liabilities,
net |
|
1,018 |
|
|
|
- |
|
Other long-term liabilities |
|
4,398 |
|
|
|
2,171 |
|
Total liabilities |
|
30,097 |
|
|
|
23,101 |
|
Commitments and
contingencies |
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
Common stock, $1.00 par value per
share; 20,000 shares authorized; 8,951 and 8,781 shares issued and
outstanding at December 31, 2020 and December 31, 2019,
respectively |
|
8,951 |
|
|
|
8,781 |
|
Additional paid-in capital |
|
89,702 |
|
|
|
86,770 |
|
Accumulated deficit |
|
(6,810 |
) |
|
|
(4,286 |
) |
Accumulated other comprehensive
loss |
|
(679 |
) |
|
|
(520 |
) |
Total shareholders' equity |
|
91,164 |
|
|
|
90,745 |
|
Non-controlling interest |
|
35 |
|
|
|
(253 |
) |
Total equity |
|
91,199 |
|
|
|
90,492 |
|
Total liabilities and equity |
$ |
121,296 |
|
|
$ |
113,593 |
|
Intricon (NASDAQ:IIN)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Intricon (NASDAQ:IIN)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024