Establishment Labs Reports Second Quarter 2018 Financial Results
NEW YORK, August 14, 2018 (GLOBE NEWSWIRE) – Establishment Labs Holdings Inc. (NASDAQ: ESTA), a medical technology company focused on improving patient safety and aesthetic outcomes, initially in the breast aesthetics and reconstruction market, reported financial results for the second quarter ended June 30, 2018.
Reported second quarter 2018 revenues of $13.7 million, representing a 59% increase over second quarter 2017
Completed initial public offering (IPO), raising $71.5 million, after deducting underwriting discounts
Experienced strong market adoption outside of the U.S.
Remained on track for the U.S. Food and Drug Administration (FDA) clinical trial
“We are pleased with our performance to date as we continue to meet and exceed our internal expectations. Again this quarter, we saw continued year over year growth, driven by the strong adoption of our Motiva Implants® outside of the U.S.,” said Juan José Chacón-Quirós, Founder and Chief Executive Officer of Establishment Labs. “Our recent IPO provides us the capital to fund future growth and strategic objectives, and we look forward to bringing our differentiated product portfolio to market globally.”
Second Quarter 2018 and Year-to-Date Financial Results
Revenues increased $5.1 million, or 58.9% to $13.7 million for the three months ended June 30, 2018 as compared to $8.6 million for the three months ended June 30, 2017. Revenues for the six months ended June 30, 2018 increased $13.0 million, or 83.5%, to $28.5 million, as compared to $15.5 million for the six months ended June 30, 2017. The revenue increase was driven by the increased sales of Motiva Implants®, the expansion of the Company’s Brazilian commercial operations, greater market penetration in existing geographies and commencement of sales in new geographies.
Gross profit for the second quarter of 2018 was $8.2 million, or 59.9% of revenues, compared to gross profit of $4.1 million, or 47.8% of revenues in the same period in 2017. Gross profit for the six months ended June 30, 2018 was $16.1 million, or 56.6% of revenues, as compared to gross profit of $7.5 million, or 48.5% of revenues in the same period in 2017. The increase in gross margin was primarily due to an increase in production volume that spread the Company’s fixed manufacturing costs over a larger number of units and the addition of direct market revenues with generally higher average selling prices, such as Brazil.
Total operating expenses for the second quarter of 2018 were $14.5 million, compared to operating expenses of $9.6 million in the same period in 2017. Selling, general and administrative expense increased $2.7 million, or 33.3%, to $10.8 million due to the hiring of additional sales and administrative employees, an increase in consulting and audit fees and an increase in sales commissions. Research and development expense increased $2.2 million, or 150.2%, to $3.7 million due to the initiation of the Company’s FDA clinical trial in the United States. Total operating expenses for the six months ended June 30, 2018 were $25.3 million, compared to operating expenses of $17.0 million in the same period in 2017.
Net losses for the second quarter decreased to $5.4 million from $12.1 million in the same period in 2017, while net losses for the six months ended June 30, 2018 decreased to $11.9 million from $17.1 million in the same period in 2017.
The Company’s cash balance as of June 30, 2018 was $11.6 million. On July 23, 2018 the Company completed its initial public offering, whereby it sold a total of 4,272,568 common shares at $18.00 per share, which included 557,291 shares sold to the underwriters following the exercise of their option to purchase additional shares. The Company received net proceeds from the IPO of approximately $71.5 million, after deducting underwriting discounts and commissions of $5.4 million.
The following information was filed by Establishment Labs Holdings Inc. (ESTA) on Tuesday, August 14, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.