I was mistaken about ATIS earnings! already announced.... I was curious about the move Wednesday....
Advanced Tissue Sciences Announces 1999 Third Quarter Financial Results
Wednesday, November 10, 1999 05:00 PM
LA JOLLA, Calif., Nov. 10 /PRNewswire/ -- Advanced Tissue Sciences, Inc. (Nasdaq: ATIS, news, msgs) today announced its financial results for the three and nine months ended September 30, 1999. Total revenues were $11.9 million for the three months ended September 30, 1999 as compared to $4.5 million for the three months ended September 30, 1998. Revenues for the nine months ended September 30, 1999 and 1998 were $33.9 million and $14.2 million, respectively. Revenues in the three and nine month periods ended September 30, 1999 include the recognition of $4.8 million and $14.2 million, respectively, related to payments previously received relating to the expansion of the Company's Dermagraft Joint Venture with Smith & Nephew and the acquisition of licensing rights by Inamed Corporation for certain aesthetic and reconstructive surgery applications.
The Company reported a net loss to common stockholders for the quarter ended September 30, 1999 of $3.0 million or $0.06 per common share as compared to $11.9 million or $0.30 per common share for the quarter ended September 30, 1998. The net loss to common shareholders for the nine months ended September 30, 1999 was $13.7 million or $0.29 per common share compared to $34.9 million or $0.89 per common share for the same period in 1998.
Separately, the Dermagraft Joint Venture reported total sales of TransCyte(TM) and Dermagraft(R) to customers for the three and nine months ended September 30, 1999 of $875,000 and $1,903,000, respectively, which compares to sales of $619,000 and $1,265,000 in the corresponding periods of 1998. TransCyte sales were $801,000 for the three months ended September 30, 1999 compared to $556,000 for the three months ended September 30, 1998. Total TransCyte sales for the nine months ended September 30, 1999 and 1998 were $1,693,000 and $1,079,000, respectively.
As of September 30, 1999, the Company had cash, cash equivalents and short-term investments of approximately $22.1 million. In addition, the Company received $15 million on completion of a public offering in November 1999, $5 million of which is reserved to redeem any of the Company's Series B Preferred Stock submitted for conversion at or below $3.58 per share. The Company also terminated its equity line agreement with a separate group of investors prior to its February 2000 expiration date.
"The $15 million received in November from the State of Wisconsin Investment Board in connection with our public offering as well as the $4 million we received from Inamed Corporation during the quarter relating to the acquisition of additional licensing rights has helped to strengthen the Company's financial position," said Arthur J. Benvenuto, Chairman and Chief Executive Officer of Advanced Tissue Sciences. "In addition, we are continuing to pursue strategic alliances as an additional source of funding."
Advanced Tissue Sciences is a tissue engineering company utilizing its proprietary core technology to develop and manufacture human-based tissue products for tissue repair and transplantation. The Company has two joint ventures with Smith & Nephew. The first covers the application of Advanced Tissue Sciences' tissue engineering technology for skin wounds and includes Dermagraft(R) for the treatment of diabetic foot ulcers, TransCyte(TM) for the temporary covering of second and third-degree burns and future developments for venous ulcers, pressure ulcers, burns and other non-aesthetic wound care treatments. The second joint venture is developing tissue-engineered orthopedic cartilage, initially focusing on the repair of cartilage in knee joints. The Company also has a strategic alliance with Inamed Corporation for the development and marketing of several of Advanced Tissue Sciences' human-based, tissue-engineered products for aesthetic and certain reconstructive applications. The Company is also developing products for cardiovascular applications.
Statements in this press release that are not strictly historical may be "forward-looking" statements which involve risks and uncertainties. No assurances can be given that the Company will successfully develop or commercialize its products, complete clinical trials, obtain regulatory approvals (or that any such approvals will be obtained on a timely basis), be able to manufacture or successfully commercialize such products. In particular, the Company will need to successfully complete an additional controlled clinical trial for Dermagraft in the treatment of diabetic foot ulcers and submit a revised premarket approval application to the FDA. Actual results may differ from those described in this press release due to risks and uncertainties that exist in the Company's operations, including, without limitation, the ability to obtain additional financing to continue operations when needed, a history of operating losses and accumulated deficits, the Company's reliance on collaborative relationships, and uncertainties related to clinical trials, the ability to obtain the appropriate regulatory approvals, patent protection, and market acceptance, as well as other risks detailed from time to time in publicly available filings with the Securities and Exchange Commission such as Advanced Tissue Sciences' Annual Report on Form 10-K for the year ended December 31, 1998 and Advanced Tissue Sciences' most recent Registration Statement on Form S-3 filed on July 12, 1999, as amended. Actual results may differ materially from those currently anticipated as a result of such risks, and results for interim periods are not necessarily indicative of results to be expected for the full year. The Company undertakes no obligation to release publicly the results of any revision to these forward-looking statements to reflect events or circumstances arising after the date hereof.
Advanced Tissue Sciences, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Revenues:
Product sales
Related parties (1) $3,496 $2,207 $10,184 $6,685
Others (2) -- 515 -- 1,035
Contracts and fees (3) 8,415 1,736 23,719 6,477
Total revenues 11,911 4,458 33,903 14,197
Costs and expenses:
Research and development 4,165 4,025 12,292 11,790
Selling, general and
administrative 2,457 3,947 8,628 12,163
Cost of goods sold (1) 3,496 4,135 10,184 11,095
Total costs and expenses 10,118 12,107 31,104 35,048
Income (loss) from operations
before equity in losses
of joint ventures 1,793 (7,649) 2,799 (20,851)
Equity in losses of
joint ventures (4,894) (3,817) (15,349) (12,706)
Loss from operations (3,101) (11,466) (12,550) (33,557)
Other expense, net 163 (186) (620) (1,037)
Net loss (2,938) (11,652) (13,170) (34,594)
Dividends on preferred stock (63) (281) (494) (281)
Net loss applicable
to common stock $(3,001) $(11,933) $(13,664) $(34,875)
Basic and diluted
loss per share $(.06) $(.30) $(.29) $(.89)
Weighted average shares 52,451 39,324 46,352 39,194
Condensed Consolidated Balance Sheets
(In thousands)
September 30, December 31,
1999 1998
(Unaudited)
Assets:
Cash, cash equivalents
and short-term investments(4) $22,109 $23,054
Other current assets 6,173 5,776
Property, net 17,576 20,624
Other assets 4,974 4,531
Total assets $50,832 $53,985
Liabilities and stockholders' equity:
Current liabilities $21,797 $8,388
Long-term liabilities 9,976 28,070
Redeemable preferred stock 5,040 5,000
Stockholders' equity (4) 14,019 12,527
Total liabilities and
stockholders' equity $50,832 $53,985
(1) Product sales to related parties include sales of Dermagraft(R) and
TransCyte(TM) to a joint venture between the Company and Smith &
Nephew plc (the "Dermagraft Joint Venture") at cost.
(2) Product sales to others include sales of TransCyte to outside
customers in the United States by the Company in the three and nine
months ended September 30, 1998. Since October 1998, TransCyte has
been sold to outside customers exclusively through the Dermagraft
Joint Venture and, accordingly, sales since that time have been
reflected in the joint venture's separate financial statements and
not included herein.
(3) Contract revenues include the recognition of $4.3 million and
$13.6 million, respectively, in the three and nine month periods
ended September 30, 1999 related to a $15 million payment received in
January 1999 in conjunction with an expansion of the Company's
Dermagraft Joint Venture with Smith & Nephew. The payment is being
recognized into revenues as costs are incurred in support of the
joint venture. In addition, the Company also recognized $542,000 in
the three and nine-month periods ending September 30, 1999 relating
to $4.5 million received from Inamed Corporation in conjunction with
the acquisition of licensing rights for certain aesthetic and
reconstructive surgery applications.
(4) In November 1999, the Company received $15 million in connection with
the completion of a public offering of 3,750,000 units at $4.00 per
unit. The units separated immediately upon issuance into 3,750,000
shares of Advanced Tissue Sciences' common stock (one share per unit)
and warrants to purchase up to an additional 1,750,000 shares of
common stock at $4.00 per share. The warrants can be exercised at
any time over the next three years. $5 million of the proceeds is
reserved to redeem any of the Company's Series B Preferred Stock
submitted for conversion at or below $3.58 per share.
SOURCE Advanced Tissue Sciences, Inc.
CONTACT: Jana Stoudemire, Senior Director, Corporate Communications, of Advanced Tissue Sciences, Inc., 858-713-7802 |
