Sientra Reports Fourth Quarter and Full Year 2017 Financial Results

World News: . []

SANTA BARBARA, Calif., March 13, 2018 (GLOBE NEWSWIRE) -- Sientra, Inc. (NASDAQ:SIEN) (“Sientra” or the “Company”), a medical aesthetics company, today announced its financial results for the fourth quarter and full year ended December 31, 2017.

Jeffrey M. Nugent, Chairman and Chief Executive Officer of Sientra, said, “I am proud of our team’s accomplishments through 2017 that helped Sientra’s progress to become a leading global aesthetics company. Sientra’s base portfolio has been strengthened through diversification and is showing traction in all categories as a result of our continued strong relationships and credibility within our targeted professional sectors. We have completed the majority of the requirements needed for full FDA approval of our breast implant products. Our site-change PMA supplement and two of three smaller submissions for manufacturing process improvements have been approved and shortened the timeline to our relaunch into the breast implant market. We look forward to begin selling our U.S. manufactured silicone gel breast implants and offering our customers and their patients with the well-documented Sientra advantages.”

“As it relates to the final outstanding PMA submission, we provided the FDA with our comprehensive response in late February and have been working interactively with the Agency to gain final approval. Though statutorily the FDA has until the middle of the second quarter of 2018 to respond to the one remaining submission, we continue to believe the questions raised by the FDA should be resolvable before then based on encouraging dialogue over these past few weeks. Finally, on a separate regulatory topic, I am pleased to announce our ISO 13485 certification has been granted. This incremental ISO certification represents a significant milestone as it will allow Sientra to enter select international markets with compelling comparative clinical data as the 3 FDA-approved portfolio of breast implants available OUS.”

Mr. Nugent added, “The acquisition of Miramar Labs, now renamed miraDry, completed in the third quarter of 2017 has significantly strengthened the Sientra portfolio. Through the integration into Sientra, we have attracted a larger group of highly experienced individuals into our commercial organization both domestically and internationally. We have also made a number of improvements to the clinical protocol resulting in positive feedback on treatment efficacy that heightened professional interest and market awareness. Overall, improvements since the acquisition have further validated our confidence in our unique opportunity to deliver a proven long term solution to a significant number of patients with unmet needs.”

Patrick F. Williams, Chief Financial Officer of Sientra, said, “Following our recent shelf registration and subsequent filing of an At-The-Market equity feature, we believe that we have a high degree of financial flexibility with a number of options to strengthen our capital structure. We look forward to having access to an additional $10 million from our existing credit facility upon full and final FDA manufacturing approval and believe that our capital options and associated economics become more favorable upon approval.”

As of the third quarter 2017, the Company has reported results in two segments, Breast Products and miraDry. The Breast Products segment includes the Company’s breast implant portfolio, tissue expander portfolio, and scar management products. The miraDry segment consists of the miraDry business, the acquisition of which was completed on July 25, 2017.

Total net sales for the fourth quarter 2017 were $11.1 million, compared to total net sales of $6.5 million for the same period in 2016. Total net sales for the year ended December 31, 2017 were $36.5 million, compared to total net sales of $20.7 million for the full year 2016.

Net sales for the Breast Products segment totaled $8.2 million in the fourth quarter 2017, a 26% increase compared to $6.5 million for fourth quarter 2016, driven primarily by the continued strong performance of the Company’s breast tissue expanders, particularly the Allox2 dual port product line. For the full year 2017, net sales of the Breast Products increased 52% to $31.5 million from $20.7 million in the prior year period.

Net sales for the miraDry segment totaled $2.9 million in the fourth quarter 2017, and $5.1 million for the full year.

Gross profit for the fourth quarter 2017 was $5.3 million, or 48% of sales, compared to gross profit of $3.9 million, or 61% of sales, for the same period in 2016. Gross profit for the full year 2017 was $22.4 million, or 61% of sales, compared to gross profit of $13.9 million, or 67% of sales, for the full year 2016. The decrease in gross profit margin for both the quarter and year is primarily due to the inclusion of miraDry, which carries a lower margin than Breast Products, and an increase in excess and obsolete inventory reserve in our Breast Products segment.

Operating expenses for the fourth quarter 2017 were $22.7 million, up 89% from $12.0 million for the same period in 2016. Full year 2017 operating expenses were $85.3 million, up 58% from $53.9 million in 2016. Operating expenses in the fourth quarter 2017 were driven higher primarily due to the increase in employee related costs and the inclusion of miraDry operating expenses subsequent to the acquisition.  

Net loss for the fourth quarter 2017 was ($17.8) million, compared to ($8.1) million for the same period in 2016. Overall, the net loss for the year ending December 31, 2017 was ($64.0) million, compared to ($40.2) million in 2016.

On a non-GAAP basis, the Company reported adjusted EBITDA loss of ($14.2) million for the fourth quarter 2017, compared to an adjusted EBITDA loss of ($7.0) million for the fourth quarter 2016. For the full year 2017, adjusted EBITDA loss was ($42.1) million, versus ($35.6) million in the previous year.

Net cash and cash equivalents as of December 31, 2017 were $26.6 million compared to $37.6 million at the end of the third quarter 2017.

Additional information on the Company’s financial results can be found in Sientra’s Supplemental Financial and Operational Information schedule by visiting the Investor Relations section of Sientra’s website at .

Sientra will hold a conference call today, Tuesday, March 13, 2018 at 1:30 p.m. PT/4:30 p.m. ET to discuss the results.

The dial-in numbers are (844) 464-3933 for domestic callers and (765) 507-2612 for international callers. The conference ID is 3166619.  A live webcast of the conference call will be available on the Investor Relations section of the Company's website at .

Sientra has supplemented its US GAAP net sales and net loss with a Pro Forma net sales and non-GAAP measure of Adjusted EBITDA. Management believes that these Pro Forma and non-GAAP financial measures provide 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. Tables showing Pro Forma net sales and a reconciliation of non-GAAP Adjusted EBITDA to GAAP net loss, the most directly comparable GAAP measure, are provided in the schedules below.

There are limitations in using non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. These non-GAAP financial measures 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 measures provided in the schedules below.

Headquartered in Santa Barbara, California, Sientra is a medical aesthetics company committed to making a difference in patients’ lives by enhancing their body image, growing their self-esteem and restoring their confidence. The Company was founded to provide greater choice to board-certified plastic surgeons and patients in need of medical aesthetics products. The Company has developed a broad portfolio of products with technologically differentiated characteristics, supported by independent laboratory testing and strong clinical trial outcomes. The Company sells its breast implants and breast tissue expanders exclusively to board-certified and board-admissible plastic surgeons and tailors its customer service offerings to their specific needs. The Company also offers a range of other aesthetic and specialty products including BIOCORNEUM, the professional choice in scar management, and miraDry, the only FDA cleared device to reduce underarm sweat, odor and permanently reduce hair of all colors.

Investor Contacts:Patrick F. WilliamsSientra, Chief Financial Officer (619) 675-1047

Tram Bui / Brian JohnstonThe Ruth Group(646) 536-7035 / (646) 536-7028

More news and information about Sientra, Inc.

Published By:

Globe Newswire: 20:01 GMT Tuesday 13th March 2018

Published: .

Search for other references to "sientra" on SPi News

Previous StoryNext Story

SPi News is published by Sector Publishing Intelligence Ltd.
© Sector Publishing Intelligence Ltd 2018. [Admin Only]
Sector Publishing Intelligence Ltd.
Ground Floor Offices, Little Keep Gate, Barrack Road, Dorchester, Dorset DT1 1AH
Registered in England and Wales number 0751938.
Privacy Policy | Terms and Conditions | Contact Us

Advertising on SPi News: Information For Advertisers