On May 10, 2023 Vericel Corporation (NASDAQ:VCEL), a leader in advanced therapies for the sports medicine and severe burn care markets, reported financial results and business highlights for the first quarter ended March 31, 2023, and provided updated full-year 2023 financial guidance (Press release, Vericel, MAY 10, 2023, View Source [SID1234631405]).
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First Quarter 2023 Financial Highlights
•Total net revenue of $41.0 million
•MACI net revenue of $34.2 million and Epicel net revenue of $6.8 million
•Gross margin of 65%
•Net loss of $7.5 million, or $0.16 per diluted share
•Non-GAAP adjusted EBITDA of $1.7 million
•Operating cash flow of $7.9 million
•As of March 31, 2023, the Company had approximately $139 million in cash and investments, and no debt
Business Highlights and Updates
•Record first quarter total revenue
•Highest first quarter MACI revenue since launch, representing growth of 32% compared to the prior year
•Highest number of surgeons taking MACI biopsies and second highest number of MACI biopsies in a quarter since launch
•11th straight quarter of positive adjusted EBITDA and operating cash flow
•MACI arthroscopic delivery program remains on track for an anticipated 2024 commercial launch
•Tracking ahead of initial goals on NexoBrid Pharmacy and Therapeutics (P&T) committee submissions and approvals at target burn centers
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Exhibit 99.1
•NexoBrid selected for inclusion in the pre-conference healthcare professional educational sessions at the upcoming American Burn Association (ABA) annual meeting with hands-on lab demonstrations by leading burn surgeons
"The Company had a very strong start to the year, delivering record quarterly MACI and total revenue and another quarter of profitability and operating cash flow," said Nick Colangelo, President and CEO of Vericel. "MACI has continued on its high-growth trajectory with first quarter revenue growth of more than 30% and, based on our positive first quarter performance and strong underlying business fundamentals, we have increased our 2023 full-year revenue guidance. We look forward to the upcoming commercial launch of NexoBrid and continue to advance the MACI arthroscopic delivery program, which we believe will drive further growth in the years ahead."
2023 Financial Guidance
•Total net revenue for 2023 now expected to be in the range of $184 to $192 million compared to the previous guidance of $180 to $188 million
•Maintaining profitability guidance of gross margin in the high-60% range and adjusted EBITDA margin in the mid-teens % range
First Quarter 2023 Results
Total net revenue for the quarter ended March 31, 2023 increased 14% to $41.0 million, compared to $36.1 million in the first quarter of 2022. Total net product revenue for the quarter included $34.2 million of MACI (autologous cultured chondrocytes on porcine collagen membrane) net revenue and $6.8 million of Epicel (cultured epidermal autografts) net revenue, compared to $26.0 million of MACI net revenue and $9.9 million of Epicel net revenue, respectively, in the first quarter of 2022.
Gross profit for the quarter ended March 31, 2023 was $26.5 million, or 65% of net revenue, compared to $23.5 million, or 65% of net revenue, for the first quarter of 2022.
Total operating expenses for the quarter ended March 31, 2023 were $34.7 million, compared to $30.7 million for the same period in 2022. The increase in operating expenses was primarily due to an increase in employee-related expenses and higher sales and marketing expenses.
Net loss for the quarter ended March 31, 2023 was $7.5 million, or $0.16 per diluted share, compared to $7.1 million, or $0.15 per diluted share, for the first quarter of 2022.
Non-GAAP adjusted EBITDA for the quarter ended March 31, 2023 was $1.7 million, or 4% of net revenue, compared to $3.2 million, or 9% of net revenue, for the first quarter of 2022. A table reconciling non-GAAP measures is included in this press release for reference.
Exhibit 99.1
As of March 31, 2023, the Company had approximately $139 million in cash and investments, and no debt.
Conference Call Information
Today’s conference call will be available live at 8:30am Eastern Time and can be accessed through the Investor Relations section of the Vericel website at View Source A slide presentation with highlights from today’s conference call will be available on the webcast and in the Investor Relations section of the Vericel website. Please access the site at least 15 minutes prior to the scheduled start time in order to download the required audio software, if necessary. To participate by telephone, please register here to receive dial-in details and your personal passcode. A replay of the webcast will be available on the Vericel website until March 31, 2024.