FULL YEAR ENDED DECEMBER 31, 2014 FINANCIAL RESULTS ON NON-GAAP BASIS
On a non-GAAP basis, the net loss for 2014 was $13.0 million, or $0.31 per share, compared to a net loss of $5.7 million, or $0.16 per share, in 2013.
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss these results on Wednesday, February 18, 2015, at 8:30 AM EST (3:30 PM IST). Investors within the United States interested in participating are invited to call 877-269-7756. Participants in Israel can use the toll free dial-in number 809 406 247. All other international participants can use the dial-in number 201-689-7817.
A replay of the event will be available for two weeks following the conclusion of the call. To access the replay, callers in the United States can call 877-660-6853 and reference the Replay Access Code: 13600107. All international callers can dial 201-612-7415, using the same Replay Access Code. To access the webcast, please visit www.mazorrobotics.com and select ‘Investor Relations.’
Use of Non-GAAP Measures
In addition to disclosing financial results calculated in accordance with generally accepted accounting principles in conformity with International Financial Reporting Standards (GAAP), this press release contains Non-GAAP financial measures for gross profit, operating expenses, operating loss, financing income (expense), net loss and basic and diluted earnings per share that exclude the effects of non-cash expense of amortization of intangible assets, stock-based payments and revaluation of the fair value of a derivative instrument. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s performance that enhances management's and investors' ability to evaluate the Company's net income and earnings per share and to compare them to historical net income and earnings per share.
The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when operating and evaluating the Company’s business internally and therefore decided to make these non-GAAP adjustments available to investors.
About Mazor
Mazor Robotics is dedicated to the development and marketing of innovative surgical guidance systems and complementary products that provide a safer surgical environment for patients, surgeons, and operating room staff. Mazor Robotics’ flagship product, Renaissance®, is a state-of-the-art surgical guidance system that enables surgeons to conduct spine and brain surgeries in an accurate and secure manner. Mazor Robotics systems have been successfully used in the placement of over 70,000 implants worldwide. Numerous peer-reviewed publications and presentations at leading scientific conferences have validated the accuracy, usability, and clinical advantages of Mazor Robotics technology. For more information, the content of which is not part of this press release, please visit www.mazorrobotics.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Any statements in this release about future expectations, plans or prospects for the Company, including without limitation, statements regarding the greater adoption of and the expansion of the presence of Renaissance, that the Company believes it is positioned to achieve its goals in 2015, the priorities that the Company will focus on to assure its long term success, that the Company believes it will experience growth in 2015 and beyond, and other statements containing the words “believes,” “anticipates,” “plans,” “expects,” “will” and similar expressions are forward-looking statements. These statements are only predictions based on Mazor's current expectations and projections about future events. There are important factors that could cause Mazor's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Those factors include, but are not limited to, the impact of general economic conditions, competitive products, product demand and market acceptance risks, reliance on key strategic alliances, fluctuations in operating results, and other factors indicated in Mazor's filings with the Securities and Exchange Commission (SEC) including those discussed under the heading "Risk Factors" in Mazor’s annual report on Form 20-F filed with the SEC on April 9, 2014 and in subsequent filings with the SEC. For more details, refer to Mazor's SEC filings. Mazor undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in our expectations, except as may be required by law.
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Mazor Robotics Ltd.
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| Twelve month period | Three month period | ||||||||||||||||||||
| ended December 31, | ended December 31, | ||||||||||||||||||||
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2014
|
2013
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2014
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2013
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||||||||||||||||||
| Revenue | $ | 21,208 | $ | 19,983 | $ | 5,745 | $ | 5,724 | |||||||||||||
| Cost of revenue | $ | 4,396 | $ | 4,280 | $ | 1,243 | $ | 1,231 | |||||||||||||
| Gross profit | $ | 16,812 | $ | 15,703 | $ | 4,502 | $ | 4,493 | |||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||
| Research and development | $ | 5,776 | $ | 4,174 | $ | 1,250 | $ | 1,199 | |||||||||||||
| Selling and Marketing | $ | 21,352 | $ | 15,692 | $ | 5,524 | $ | 4,439 | |||||||||||||
| General and administrative | $ | 4,392 | $ | 2,766 | $ | 1,211 | $ | 923 | |||||||||||||
| Total operating costs and expenses | $ | 31,520 | $ | 22,632 | $ | 7,985 | $ | 6,561 | |||||||||||||
| Loss from operations | $ | (14,708 | ) | $ | (6,929 | ) | $ | (3,483 | ) | $ | (2,068 | ) | |||||||||
| Financing income (expenses), net | $ | (419 | ) | $ | (13,433 | ) | $ | (194 | ) | $ | 42 | ||||||||||
| Loss before taxes on income | $ | (15,127 | ) | $ | (20,362 | ) | $ | (3,677 | ) | $ | (2,026 | ) | |||||||||
| Income tax expense (benefit) | $ | 145 | $ | 167 | $ | )12) | $ | 4 | |||||||||||||
| Net loss | $ | (15,272 | ) | $ | (20,529 | ) | $ | (3,665 | ) | $ | (2,030 | ) | |||||||||
| Net loss per share – Basic and diluted | $ | (0.37 | ) | $ | (0.57 | ) | $ | (0.09 | ) | $ | (0.05 | ) | |||||||||
| Weighted average common shares outstanding – Basic and diluted | 41,808 | 35,781 | 42,111 | 38,694 | |||||||||||||||||
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Mazor Robotics Ltd.
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| December 31, | December 31, | |||||||||
| 2014 | 2013 | |||||||||
| Unaudited | Audited | |||||||||
| Current Assets | ||||||||||
| Cash and cash equivalents | $ | 22,255 | $ | 19,803 | ||||||
| Short-term investment | $ | 24,507 | $ | 45,014 | ||||||
| Trade receivables | $ | 2,797 | $ | 1,974 | ||||||
| Other current assets | $ | 1,110 | $ | 655 | ||||||
| Inventory | $ | 3,050 | $ | 2,480 | ||||||
| Total Current Assets | $ | 53,719 | $ | 69,926 | ||||||
| Non-Current Assets | ||||||||||
| Prepaid lease fee | $ | 79 | $ | 78 | ||||||
| Deferred tax assets | $ | 158 | $ | - | ||||||
| Property and equipment, net | $ | 1,257 | $ | 792 | ||||||
| Long-term investments | $ | 5,473 | $ | - | ||||||
| Intangible assets, net | $ | - | $ | 93 | ||||||
| Total Non-Current Assets | $ | 6,967 | $ | 963 | ||||||
| Total assets | $ | 60,686 | $ | 70,889 | ||||||
| Current liabilities | ||||||||||
| Trade payables | $ | 1,689 | $ | 1,899 | ||||||
| Other current liabilities | $ | 4,452 | $ | 4,565 | ||||||
| Total current liabilities | $ | 6,141 | $ | 6,464 | ||||||
| Non-Current Liabilities | ||||||||||
| Employee benefits | $ | 278 | $ | 311 | ||||||
| Deferred tax liability | $ | - | $ | 21 | ||||||
| Total Non-Current liabilities | $ | 278 | $ | 332 | ||||||
| Total liabilities | $ | 6,419 | $ | 6,796 | ||||||
| Equity | ||||||||||
| Share capital | $ | 110 | $ | 106 | ||||||
| Share premium | $ | 135,182 | $ | 130,472 | ||||||
| Amounts allocated to share options | $ | 77 | $ | 77 | ||||||
| Capital reserve for share-based payment transactions | $ | 4,586 | $ | 3,854 | ||||||
| Foreign currency translation reserve | $ | 2,119 | $ | 2,119 | ||||||
| Accumulated loss | $ | (87,807 | ) | $ | (72,535 | ) | ||||
| Total equity | $ | 54,267 | $ | 64,093 | ||||||
| Total liabilities and equity | $ | 60,686 | $ | 70,889 | ||||||
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Mazor Robotics Ltd.
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| Twelve months ended | Three months ended | ||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||
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2014
|
2013
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2014
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2013
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| Cash flows from operating activities: | |||||||||||||||||||||
| Loss for the period | $ | (15,272 | ) | $ | (20,529 | ) | $ | (3,665 | ) | $ | (2,030 | ) | |||||||||
| Adjustments: | |||||||||||||||||||||
| Depreciation and amortization | $ | 540 | $ | 611 | $ | 124 | $ | 162 | |||||||||||||
| Finance (income) expenses, net | $ | 278 | $ | 13,400 | $ | 215 | $ | (74 | ) | ||||||||||||
| Share-based payment | $ | 2,157 | $ | 1,019 | $ | 732 | $ | 340 | |||||||||||||
| Income tax expense (benefit) | $ | 145 | $ | 167 | $ | (12 | ) | $ | 4 | ||||||||||||
| $ | 3,120 | $ | 15,197 | $ | 1,059 | $ | 432 | ||||||||||||||
| Change in inventory | $ | (980 | ) | $ | (1,223 | ) | $ | (104 | ) | $ | (112 | ) | |||||||||
| Change in trade and other accounts receivable | $ | (1,296 | ) | $ | (899 | ) | $ | 1,804 | $ | (363 | ) | ||||||||||
| Change in prepaid lease fees | $ | (1 | ) | $ | (14 | ) | $ | 3 | $ | (5 | ) | ||||||||||
| Change in trade and other accounts payable | $ | 138 | $ | 2,254 | $ | (916 | ) | $ | 769 | ||||||||||||
| Change in employee benefits | $ | (33 | ) | $ | 112 | $ | (52 | ) | $ | 5 | |||||||||||
| $ | (2,172 | ) | $ | 230 | $ | 735 | $ | 294 | |||||||||||||
| Interest received | $ | 85 | $ | 78 | $ | 24 | $ | 20 | |||||||||||||
| Income tax paid | $ | (51 | ) | $ | (26 | ) | $ | (23 | ) | $ | 25 | ||||||||||
| $ | 34 | $ | 52 | $ | 1 | $ | 45 | ||||||||||||||
| Net cash used in operating activities | $ | (14,290 | ) | $ | (5,050 | ) | $ | (1,870 | ) | $ | (1,259 | ) | |||||||||
| Cash flows from investing activities: | |||||||||||||||||||||
| Proceeds from (investments in) short-term investments, net | $ | 22,271 | $ | (40,820 | ) | $ | 209 | $ | (44,997 | ) | |||||||||||
| Long-term investments | $ | (7,237 | ) | $ | - | $ | - | $ | - | ||||||||||||
| Purchase of property and equipment | $ | (503 | ) | $ | (272 | ) | $ | (96 | ) | $ | (49 | ) | |||||||||
| Net cash provided by (used in) investing activities | $ | 14,531 | $ | (41,092 | ) | $ | 113 | $ | (45,046 | ) | |||||||||||
| Cash flows from financing activities: | |||||||||||||||||||||
| Proceeds from exercise of share options and warrants, net | $ | - | $ | 53,198 | $ | - | $ | 42,999 | |||||||||||||
| Issuance expenses | $ | (294 | ) | $ | - | $ | - | $ | - | ||||||||||||
| Proceeds from exercise of share options by employees | $ | 3,042 | $ | 479 | $ | 102 | $ | 77 | |||||||||||||
| Repayment of loans to the Chief Scientist | $ | (324 | ) | $ | (629 | ) | $ | - | $ | 8 | |||||||||||
| Net cash provided by financing activities | $ | 2,424 | $ | 53,048 | $ | 102 | $ | 43,084 | |||||||||||||
| Net increase (decrease) in cash and cash equivalents | $ | 2,665 | $ | 6,906 | $ | (1,655 | ) | $ | (3,221 | ) | |||||||||||
| Cash and cash equivalents at the beginning of the period | $ | 19,803 | $ | 12,797 | $ | 24,014 | $ | 22,984 | |||||||||||||
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Effect of exchange rate differences on balances of cash and cash equivalents |
$ | (213 | ) | $ | 100 | $ | (104 | ) | $ | 40 | |||||||||||
| Cash and cash equivalents at the end of the period | $ | 22,255 | $ | 19,803 | $ | 22,255 | $ | 19,803 | |||||||||||||
| Supplementary cash flows information: | |||||||||||||||||||||
| Transfer of inventory to fixed assets | $ | 410 | $ | 67 | $ | - | $ | - | |||||||||||||
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Mazor Robotics Ltd.
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| Twelve month period | Three month period | ||||||||||||||||||||
| ended December 31, | ended December 31, | ||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
| GAAP gross profit | $ | 16,812 | $ | 15,703 | $ | 4,502 | $ | 4,493 | |||||||||||||
| Amortization of intangible assets | $ | 93 | $ | 294 | $ | - | $ | 73 | |||||||||||||
| Share-based payments | $ | 71 | $ | 20 | $ | 35 | $ | 6 | |||||||||||||
| Non-GAAP gross profit | $ | 16,976 | $ | 16,017 | $ | 4,537 | $ | 4,572 | |||||||||||||
| GAAP gross profit as percentage of revenues | 79.3 | % | 78.6 | % | 78.4 | % | 78.5 | % | |||||||||||||
| Non-GAAP gross profit as percentage of revenues | 80.0 | % | 80.2 | % | 79.0 | % | 79.9 | % | |||||||||||||
| GAAP operating expenses | $ | 31,520 | $ | 22,632 | $ | 7,985 | $ | 6,561 | |||||||||||||
| Share-based payments: | |||||||||||||||||||||
| Research and development | $ | 302 | $ | 127 | $ | 118 | $ | 38 | |||||||||||||
| Selling and marketing | $ | 1,084 | $ | 523 | $ | 301 | $ | 197 | |||||||||||||
| General and administrative | $ | 700 | $ | 349 | $ | 278 | $ | 99 | |||||||||||||
| Non-GAAP operating expenses | $ | 29,434 | $ | 21,633 | $ | 7,288 | $ | 6,227 | |||||||||||||
| GAAP operating loss | $ | (14,708 | ) | $ | (6,929 | ) | $ | (3,483 | ) | $ | (2,068 | ) | |||||||||
| Non-GAAP operating loss | $ | (12,458 | ) | $ | (5,616 | ) | $ | (2,751 | ) | $ | (1,655 | ) | |||||||||
| GAAP Financing income (expense), net | $ | (419 | ) | $ | (13,433 | ) | $ | (194 | ) | $ | 42 | ||||||||||
| Change in fair value of derivative instruments | |||||||||||||||||||||
| On account of warrants | $ | - | $ | 13,510 | $ | - | $ | - | |||||||||||||
| Non-GAAP Financing income (expenses), net | $ | (419 | ) | $ | 77 | $ | (194 | ) | $ | 42 | |||||||||||
| GAAP net loss | $ | (15,272 | ) | $ | (20,529 | ) | $ | (3,665 | ) | $ | (2,030 | ) | |||||||||
| Share-based payments | $ | 2,157 | $ | 1,019 | $ | 732 | $ | 340 | |||||||||||||
| Amortization of intangible assets | $ | 93 | $ | 294 | $ | - | $ | 73 | |||||||||||||
| Change in fair value of derivative instruments | $ | - | $ | 13,510 | $ | - | $ | - | |||||||||||||
| Non-GAAP net loss | $ | (13,022 | ) | $ | (5,706 | ) | $ | (2,933 | ) | $ | (1,617 | ) | |||||||||
| GAAP basic and diluted loss per share | $ | (0.37 | ) | $ | (0.57 | ) | $ | (0.09 | ) | $ | (0.05 | ) | |||||||||
| Non-GAAP basic and diluted loss per share | $ | (0.31 | ) | $ | (0.16 | ) | $ | (0.07 | ) | $ | (0.04 | ) | |||||||||
