SAN JOSE, CA -- (Marketwired - October 17, 2013) - Align Technology, Inc. (NASDAQ: ALGN)
- Net revenues of $164.5 million were up 20.5% year-over-year
- Invisalign clear aligner net revenues of $153.5 million were up 21.2% year-over-year
- Invisalign clear aligner shipments of 106.9 thousand were up 15.5% year-over-year
- GAAP earnings per diluted share (EPS) of $0.42
Align Technology, Inc. (NASDAQ: ALGN) today reported financial results for the third quarter ended September 30, 2013.
Total net revenues for the third quarter of 2013 (Q3'13) were $164.5 million. This is compared to net revenues of $163.8 million reported in the second quarter of 2013 (Q2'13) and $136.5 million in the third quarter of 2012 (Q3'12). Q3'13 clear aligner net revenues were $153.5 million, compared to $153.3 million in Q2'13 and $126.7 million in Q3'12. Clear aligner case shipments in the third quarter of 2013 were 106.9 thousand, compared to 106.1 thousand in Q2'13 and 92.5 thousand in Q3'12. Q3'13 scanner and CAD/CAM services net revenues were $11.0 million, compared to $10.5 million in Q2'13 and compared to $9.8 million in Q3'12.
"I'm pleased to report another very good quarter for Align with net revenues, gross margin, and EPS higher than our outlook. Further we achieved record levels of net revenues, Invisalign case volume, and North American iTero scanner volume, enabling us to reach the low end of our long term model for operating margin, while generating strong operating cash flow," said Thomas M. Prescott, Align president and CEO. "The third quarter includes a seasonally slower period in Europe and in North America for our GP dentists, along with the peak of the summer season for teenage orthodontic case starts. We're pleased that patient traffic appears to have remained solid for our North American Orthodontist customers this summer, which resulted in strong sequential and year over year growth for Invisalign volume, especially in the important teenage segment."
Net profit for the third quarter of 2013 was $34.5 million, or $0.42 per diluted share, which includes $1.3 million, or $0.02 per diluted share, for a one-time tax benefit related to our fiscal 2012 U.S. federal income taxes. This is compared to net profit of $29.3 million, or $0.36 per diluted share, in Q2'13 and net loss of $0.3 million, or $0.00 per diluted share in Q3'12. In the third quarter last year, net loss included a pre-tax goodwill impairment charge of $24.7 million, as well as other pre-tax acquisition and integration related costs of $0.4 million.
As of September 30, 2013, the Company had $400.4 million in cash, cash equivalents, and short and long-term marketable securities compared to $356.1 million as of December 31, 2012.
To supplement our consolidated financial statements, we provide the following GAAP and non-GAAP financial measures. Detailed reconciliations between GAAP and non-GAAP information are contained in the tables following the financial tables of this release. Starting in fiscal 2013, amortization of acquired intangible assets is no longer excluded as a non-GAAP measure. This expense is included in GAAP gross profit, operating expenses, operating profit and net profit (loss) for the periods presented below and therefore is no longer a reconciling item.
Q3'13 Operating Results ($M except for per share amounts and percentages)
============================================================================
Key GAAP Operating Results Q3'13 Q2'13 Q3'12
------ ------ -------
Net Revenues $164.5 $163.8 $136.5
- Clear Aligner $153.5 $153.3 $126.7
- Scanner and CAD/CAM Services $11.0 $10.5 $9.8
Gross Margin 76.0% 75.5% 73.5%
- Clear Aligner 79.9% 78.4% 77.6%
- Scanner and CAD/CAM Services 22.2% 33.9% 20.6%
Operating Expenses $83.6 $85.8 $95.8
Operating Margin 25.2% 23.1% 3.3%
Net Profit (Loss) $34.5 $29.3 ($0.3)
Earnings (Loss) Per Diluted Share (EPS) $0.42 $0.36 ($0.00)
Key Non-GAAP Operating Results Q3'13 Q2'13 Q3'12
------ ------ -------
Non-GAAP Gross Margin 76.0% 75.5% 73.6%
- Non-GAAP Clear Aligner 79.9% 78.4% 77.6%
- Non-GAAP Scanner & CAD/CAM Services 22.2% 33.9% 21.6%
Non-GAAP Operating Expenses $83.6 $85.8 $70.9
Non-GAAP Operating Margin 25.2% 23.1% 21.6%
Non-GAAP Net Profit $34.5 $29.3 $22.2
Non-GAAP Earnings Per Diluted Share (EPS) $0.42 $0.36 $0.26
EBITDA $45.8 $41.4 $8.5
Adjusted EBITDA $45.8 $41.4 $33.6
Stock-based Compensation (SBC) Q3'13 Q2'13 Q3'12
------ ------ -------
Total SBC Expense $7.6 $7.3 $5.4
- SBC included in Gross Margin $0.7 $0.6 $0.5
- SBC included in Operating Expenses $6.9 $6.7 $4.9
Q4 Fiscal 2013 Business Outlook
For the fourth quarter of 2013 (Q4'13), Align Technology provides the following guidance:
- Clear aligner case shipments in a range of 109.7 to 112.1 thousand cases, which reflects a year-over-year increase of 21.2% to 23.9%
- Net revenues in a range of $169.1 million to $173.1 million
- Earnings per diluted share in a range of $0.41 to $0.43
Align Web Cast and Conference Call
Align Technology will host a conference call today, October 17, 2013 at 4:30 p.m. ET, 1:30 p.m. PT, to review its third quarter 2013 results, discuss future operating trends and the business outlook. The conference call will also be web cast live via the Internet. To access the web cast, go to the "Events & Presentations" section under Company Information on Align Technology's Investor Relations web site at http://investor.aligntech.com. To access the conference call, please dial 201-689-8261 approximately fifteen minutes prior to the start of the call. An archived audio web cast will be available beginning approximately one hour after the call's conclusion and will remain available for approximately 12 months. Additionally, a telephonic replay of the call can be accessed by dialing 877-660-6853 with conference number 421424 followed by #. For international callers, please dial 201-612-7415 and use the same conference number referenced above. The telephonic replay will be available through 5:30 p.m. ET on October 25, 2013.
About Align Technology, Inc.
Align Technology designs, manufactures and markets Invisalign, a proprietary method for treating malocclusion, or the misalignment of teeth. Invisalign corrects malocclusion using a series of clear, nearly invisible, removable appliances that gently move teeth to a desired final position. Because it does not rely on the use of metal or ceramic brackets and wires, Invisalign significantly reduces the aesthetic and other limitations associated with braces. Invisalign is appropriate for treating adults and teens. Align Technology was founded in March 1997 and received FDA clearance to market Invisalign in 1998.The Invisalign product family includes Invisalign, Invisalign Teen, Invisalign Assist, Invisalign Express 10, Invisalign Express 5, Invisalign Lite, and Vivera Retainers. To learn more about Invisalign or to find an Invisalign trained doctor in your area, please visit www.invisalign.com.
Cadent Holdings, Inc. is a subsidiary of Align Technology and is a leading provider of 3D digital scanning solutions for orthodontics and dentistry. The Cadent family of products includes the iTero scanning systems, OrthoCAD iCast and OrthoCAD iRecord. For additional information, please visit www.cadentinc.com.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements and our business outlook, we may use from time to time the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating profit, non-GAAP net profit and non-GAAP earnings per share, which exclude, as applicable, acquisition and integration related costs, severance and benefit costs, impairment of goodwill, impairment of long-lived assets and any related income tax-related adjustments, and EBITDA and adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation, or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our "core operating performance." Management believes that "core operating performance" represents Align's performance in the ordinary, on-going and customary course of its operations. Accordingly, management excludes from "core operating performance" certain expenditures and other items that may not be indicative of our operating performance including discrete cash and non-cash charges that are infrequent, or one-time in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management's internal evaluation of period-to-period comparisons. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making, and (2) they are provided to and used by our institutional investors and the analyst community to facilitate comparisons with prior and subsequent reporting periods. A reconciliation of the GAAP and non-GAAP financial measures for the quarter and year and a more detailed explanation of each non-GAAP financial measure and its uses are provided in the footnotes to the table captioned "Reconciliation of GAAP to non-GAAP Key Financial Metrics" and "Business Outlook Summary" included at the end of this release.
Forward-Looking Statement
This news release, including the tables below, contains forward-looking statements, including statements regarding certain business metrics for the fourth quarter of 2013, including anticipated net revenues, gross margin, operating expenses, operating profit, diluted earnings per share, case shipments and cash, cash equivalents and short-term and long-term investments. Forward-looking statements contained in this news release and the tables below relating to expectations about future events or results are based upon information available to Align as of the date hereof. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. As a result, actual results may differ materially and adversely from those expressed in any forward-looking statement. Factors that might cause such a difference include, but are not limited to, difficulties predicting customer and consumer purchasing behavior, the willingness and ability of our customers to maintain and/or increase utilization in sufficient numbers, the possibility that the development and release of new products does not proceed in accordance with the anticipated timeline, the possibility that the market for the sale of these new products may not develop as expected, the risks relating to Align's ability to sustain or increase profitability or revenue growth in future periods while controlling expenses, growth related risks, including capacity constraints and pressure on our internal systems and personnel, our ability to successfully achieve the anticipated benefits from the scanner and the CAD/CAM services business, continued customer demand for our existing and new products, changes in consumer spending habits as a result of, among other things, prevailing economic conditions, levels of employment, salaries and wages and consumer confidence, the timing of case submissions from our doctors within a quarter, acceptance of our products by consumers and dental professionals, foreign operational, political and other risks relating to Align's international manufacturing operations, Align's ability to protect its intellectual property rights, continued compliance with regulatory requirements, competition from existing and new competitors, Align's ability to develop and successfully introduce new products and product enhancements, the loss of key personnel and impairments in the book value of goodwill or other intangible assets. These and other risks are detailed from time to time in Align's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K for the fiscal year ended December 31, 2012, which was filed with the Securities and Exchange Commission on March 1, 2013. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Nine Months Ended
--------------------------- ----------------------------
September 30, September 30, September 30, September 30,
2013 2012 2013 2012
------------- ------------- ------------- -------------
Net revenues $ 164,506 136,496 $ 481,914 417,201
Cost of net
revenues 39,416 36,146 120,284 107,291
------------- ------------- ------------- -------------
Gross profit 125,090 100,350 361,630 309,910
------------- ------------- ------------- -------------
Operating
expenses:
Sales and
marketing 45,224 36,468 135,352 114,272
General and
administrative 27,487 24,762 84,862 71,294
Research and
development 10,915 9,952 33,113 31,158
Impairment of
goodwill - 24,665 40,693 24,665
Impairment of
long-lived
assets - - 26,320 -
------------- ------------- ------------- -------------
Total operating
expenses 83,626 95,847 320,340 241,389
Operating profit 41,464 4,503 41,290 68,521
Interest and
other income
(expense), net 449 (353) (874) (624)
------------- ------------- ------------- -------------
Profit before
income taxes 41,913 4,150 40,416 67,897
Provision for
income taxes 7,376 4,494 18,542 18,765
------------- ------------- ------------- -------------
Net profit (loss) $ 34,537 $ (344) $ 21,874 $ 49,132
============= ============= ============= =============
Net profit (loss)
per share
- basic $ 0.43 $ (0.00) $ 0.27 $ 0.61
============= ============= ============= =============
- diluted $ 0.42 $ (0.00) $ 0.26 $ 0.59
============= ============= ============= =============
Shares used in
computing net
profit (loss)
per share
- basic 79,967 81,437 80,592 80,356
============= ============= ============= =============
- diluted 81,848 81,437 82,549 83,016
============= ============= ============= =============
ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2013 2012
--------------- ---------------
ASSETS
Current assets:
Cash and cash equivalents $ 175,839 $ 306,386
Marketable securities, short-term 147,740 28,485
Accounts receivable, net 109,179 98,992
Inventories 14,662 15,122
Other current assets 34,839 36,808
--------------- ---------------
Total current assets 482,259 485,793
Marketable securities, long-term 76,836 21,252
Property and equipment, net 76,552 79,191
Goodwill and intangible assets, net 86,107 145,013
Deferred tax assets 28,822 21,609
Other long-term assets 8,630 3,454
--------------- ---------------
Total assets $ 759,206 $ 756,312
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 19,157 $ 19,549
Accrued liabilities 73,714 74,247
Deferred revenue 70,397 61,975
--------------- ---------------
Total current liabilities 163,268 155,771
Other long term liabilities 20,254 19,224
--------------- ---------------
Total liabilities 183,522 174,995
Total stockholders' equity 575,684 581,317
--------------- ---------------
Total liabilities and stockholders' equity $ 759,206 $ 756,312
=============== ===============
ALIGN TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP KEY FINANCIAL METRICS
Reconciliation of GAAP to Non-GAAP
Gross Profit
(in thousands)
Three Months Ended
-------------------------------------
September 30, June 30, September 30,
2013 2013 2012
------------- --------- -------------
GAAP Gross profit $ 125,090 $ 123,691 $ 100,350
Acquisition and integration costs
related to cost of revenues (1) - - 55
Severance and benefit costs related
to cost of revenues (2) - - 39
------------- --------- -------------
Non-GAAP Gross profit $ 125,090 $ 123,691 $ 100,444
============= ========= =============
Reconciliation of GAAP to Non-GAAP
Gross Profit Scanner and CAD/CAM
Services
(in thousands)
Three Months Ended
-------------------------------------
September 30, June 30, September 30,
2013 2013 2012
------------- --------- -------------
GAAP Scanner and CAD/CAM Services
gross profit $ 2,427 $ 3,567 $ 2,016
Acquisition and integration costs
related to cost of revenues (1) - - 55
Severance and benefit costs related
to cost of revenues (2) - - 39
------------- --------- -------------
Non-GAAP Gross profit $ 2,427 $ 3,567 $ 2,110
============= ========= =============
Reconciliation of GAAP to Non-GAAP
Operating Expenses
(in thousands)
Three Months Ended
-------------------------------------
September 30, June 30, September 30,
2013 2013 2012
------------- --------- -------------
GAAP Operating expenses $ 83,626 $ 85,790 $ 95,847
Acquisition and integration costs
related to operating expenses (1) - - (179)
Severance and benefit costs related
to operating expenses (2) - - (105)
Impairment of goodwill (3) - - (24,665)
Impairment of long-lived assets (4) - - -
------------- --------- -------------
Non-GAAP Operating expenses $ 83,626 $ 85,790 $ 70,898
============= ========= =============
Reconciliation of GAAP to Non-GAAP
Operating Profit
(in thousands)
Three Months Ended
-------------------------------------
September 30, June 30, September 30,
2013 2013 2012
------------- --------- -------------
GAAP Operating profit $ 41,464 $ 37,901 $ 4,503
Acquisition and integration costs
(1) - - 234
Severance and benefit costs (2) - - 144
Impairment of goodwill (3) - - 24,665
Impairment of long-lived assets (4) - - -
------------- --------- -------------
Non-GAAP Operating profit $ 41,464 $ 37,901 $ 29,546
============= ========= =============
Reconciliation of GAAP to Non-GAAP
Net Profit
(in thousands, except per share
amounts)
Three Months Ended
-------------------------------------
September 30, June 30, September 30,
2013 2013 2012
------------- --------- -------------
GAAP Net profit (loss) $ 34,537 $ 29,320 $ (344)
Acquisition and integration costs
(1) - - 234
Severance and benefit costs (2) - - 144
Impairment of goodwill (3) - - 24,665
Impairment of long-lived assets (4) - - -
Income tax-related adjustments (5) - - (2,512)
------------- --------- -------------
Non-GAAP Net profit $ 34,537 $ 29,320 $ 22,187
============= ========= =============
Diluted Net profit (loss) per share:
GAAP $ 0.42 $ 0.36 $ (0.00)
============= ========= =============
Non-GAAP $ 0.42 $ 0.36 $ 0.26
============= ========= =============
Shares used in computing diluted GAAP
Net profit (loss) per share 81,848 82,149 81,437
============= ========= =============
Shares used in computing diluted Non-
GAAP Net profit per share 81,848 82,149 83,906
============= ========= =============
Reconciliation of GAAP Net Profit to
EBITDA and Adjusted EBITDA
(in thousands)
Three Months Ended
-------------------------------------
September 30, June 30, September 30,
2013 2013 2012
------------- --------- -------------
GAAP Net profit (loss) $ 34,537 $ 29,320 $ (344)
Provision for income taxes 7,376 8,246 4,494
Depreciation and amortization 3,858 3,846 4,374
------------- --------- -------------
EBITDA (6) 45,771 41,412 8,524
------------- --------- -------------
Adjustments or charges:
Acquisition and integration related
costs (1) - - 234
Severance and benefit costs (2) - - 144
Impairment of goodwill (3) - - 24,665
Impairment of long-lived assets (4) - - -
------------- --------- -------------
EBITDA after adjustments (6) $ 45,771 $ 41,412 $ 33,567
============= ========= =============
Starting in fiscal 2013, amortization of acquired intangible assets is no longer excluded as a non-GAAP measure. This expense is included in GAAP gross profit, operating expenses, operating profit (loss) and net profit (loss) for the periods presented below and therefore is no longer a reconciling item.
(1) Acquisition costs and integration related. We have incurred acquisition-related and other expenses which include legal, banker, accounting and other advisory fees of third parties, retention bonuses, integration and professional fees. We do not engage in acquisitions in the ordinary course of business. We believe that it is important to understand these charges; however, we do not believe that these charges are indicative of future operating results. We believe that eliminating these expenses from our non-GAAP measures is useful because we generally would not have otherwise incurred such expenses in the periods presented as part of our continuing operations.
(2) Severance and benefits costs. These costs are related to the closure of our New Jersey operations and were realized through the first three quarters of 2012. We have engaged in various restructuring and exit activities in 2011 and 2009 that have resulted in costs associated with severance and benefits. Such activity has been a discrete event based on a unique set of business objectives or circumstances, and each has differed from the others in terms of its operational implementation, business impact and scope. We do not engage in restructuring and/or exit activities in the ordinary course of business. We believe that it is important to understand significant severance and benefits costs from restructuring and exit activities and believe that investors benefit from excluding these charges from our operating results to facilitate a more meaningful evaluation of current operating performance and comparisons to past operating performance.
(3) Impairment of goodwill. These costs represents non-cash write-downs of our goodwill generally related to negative trends in market and economic conditions, termination of relationships with distributors, or the increase in competitive environment related to our Scanner and CAD/CAM Services reporting unit. We remove the impact of these charges to our operating performance to assist in assessing our ability to generate cash from operations. We believe this may be useful information to users of our financial statements; therefore, we have excluded these charges for purposes of calculating these non-GAAP measures to facilitate an evaluation of our current operating performance, particularly in terms of liquidity.
(4) Impairment of long-lived assets. These costs represents non-cash write-downs of our long-lived assets generally related to the increase in competitive environment related to our Scanner and CAD/CAM Services reporting unit. As a result of these conditions, we have assessed that our asset group within the reporting unit was not recoverable and therefore recorded an impairment charge. We remove the impact of these charges to our operating performance to assist in assessing our ability to generate cash from operations. We believe this may be useful information to users of our financial statements; therefore, we have excluded these charges for purposes of calculating these non-GAAP measures to facilitate an evaluation of our current operating performance, particularly in terms of liquidity.
(5) Income tax-related adjustments. Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for discrete tax items and items excluded from GAAP income in calculating the non-GAAP financial measures presented above. Our estimated tax rate on non-GAAP income is determined annually and may be re-calculated during the year to take into account events or trends that we believe materially impact the estimated annual rate.
(6) EBITDA and adjusted EBITDA. We use EBITDA as a performance measure for benchmarking against our peers and competitors. We believe EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to evaluate companies in the medical technology industry. We also use adjusted EBITDA which excludes certain special or non-recurring expenses, net of certain special or non-recurring benefits, detailed in the reconciliation tables that accompany this release, as an internal measure of business operating performance. We believe such financial measures provide a meaningful perspective of the underlying operating performance to our current business. EBITDA and adjusted EBITDA are not recognized terms under GAAP. Because all companies do not calculate EBITDA and similarly titled financial measures in the same way, those measures as used by other companies may not be consistent with the way we calculate such measures and should not be considered as alternative measures of operating or net profit.
ALIGN TECHNOLOGY
Q3 2013 EARNINGS RELEASE ADDITIONAL DATA
REVENUE PERFORMANCE AND CLEAR ALIGNER METRICS
(in thousands except per share data)
Q1 Q2 Q3 Q4
2012 2012 2012 2012
--------- --------- --------- ---------
Invisalign Clear Aligner Net
Revenues by Geography:
North America $ 86,871 $ 92,997 $ 89,568 $ 91,686
North American Orthodontists 41,688 43,942 43,090 43,812
North American GP Dentists 45,183 49,055 46,478 47,874
International 29,700 32,883 29,700 32,513
Non-case* 6,757 7,789 7,457 8,660
--------- --------- --------- ---------
Total Clear Aligner Net
Revenues $ 123,328 $ 133,669 $ 126,725 $ 132,859
========= -======== ========= =========
*includes Invisalign training,
ancillary products, and
retainers
Invisalign Clear Aligner Net
Revenues by Product:
Invisalign Full $ 82,424 $ 88,617 $ 80,294 $ 87,265
Invisalign Express/Lite 11,806 13,632 12,779 13,269
Invisalign Teen 15,148 16,380 19,144 16,455
Invisalign Assist 7,193 7,251 7,051 7,210
Non-case* 6,757 7,789 7,457 8,660
--------- --------- --------- ---------
Total Clear Aligner Net
Revenues $ 123,328 $ 133,669 $ 126,725 $ 132,859
========= ========= ========= =========
Average Invisalign Selling Price
(ASP):
Worldwide ASP (1) $ 1,370 $ 1,320 $ 1,290 $ 1,375
Worldwide ASP, adjusted (2) $ 1,370 $ 1,320 $ 1,290 $ 1,320
International ASP $ 1,485 $ 1,455 $ 1,355 $ 1,455
(1) Invisalign case net
revenues / Invisalign case
shipments
(2) Adjusted for one-time
adjustments (eg. Q4'12
refinement release and Q1'13
and Q2'13 grandfathered mid-
course correction deferrals)
Invisalign Clear Aligner Cases
Shipped by Geography:
North America 65,280 72,685 70,610 68,140
North American Orthodontists 32,235 35,420 35,885 33,505
North American GP Dentists 33,045 37,265 34,725 34,635
International 19,985 22,595 21,905 22,340
--------- --------- --------- ---------
Total Cases Shipped 85,265 95,280 92,515 90,480
========= ========= ========= =========
Invisalign Clear Aligner Cases
Shipped by Product:
========
Invisalign Full 57,145 62,510 57,400 57,920
Invisalign Express/Lite 12,855 15,300 14,610 15,940
Invisalign Teen 9,935 11,860 15,265 11,255
Invisalign Assist 5,330 5,610 5,240 5,365
--------- --------- --------- ---------
Total Cases Shipped 85,265 95,280 92,515 90,480
========= ========= ========= =========
Number of Invisalign Doctors
Cases Shipped To:
North American Orthodontists 4,460 4,575 4,660 4,615
North American GP Dentists 11,365 12,120 11,925 11,685
International 5,085 5,480 5,400 5,715
--------- --------- --------- ---------
Total Doctors Cases Shipped
To 20,910 22,175 21,985 22,015
========= ========= ========= =========
Invisalign Doctor Utilization
Rates*:
North American Orthodontists 7.2 7.7 7.7 7.3
North American GP Dentists 2.9 3.1 2.9 3.0
International 3.9 4.1 4.1 3.9
--------- --------- --------- ---------
Total Utilization Rates 4.1 4.3 4.2 4.1
--------- --------- --------- ---------
* # of cases shipped/# of
doctors to whom cases were
shipped
Number of Invisalign Doctors
Trained:
North American Orthodontists 90 95 125 75
North American GP Dentists 720 995 675 920
International 715 965 685 780
--------- --------- --------- ---------
Total Doctors Trained
Worldwide 1,525 2,055 1,485 1,775
--------- --------- --------- ---------
Total to Date Worldwide 71,180 73,235 74,720 76,495
========= ========= ========= =========
Scanner and CAD/CAM Services Net
Revenues:
North America Scanner and
CAD/CAM Services $ 11,120 $ 11,752 $ 9,439 $ 9,940
International Scanner and
CAD/CAM Services 631 205 332 41
--------- --------- --------- ---------
Total Scanner and CAD/CAM
Net Revenues $ 11,751 $ 11,957 $ 9,771 $ 9,981
========= ========= ========= =========
Scanner Net Revenues $ 5,361 $ 6,032 $ 4,023 $ 4,643
CAD/CAM Services Net Revenues 6,390 5,925 5,748 5,338
--------- --------- --------- ---------
Total Scanner and CAD/CAM
Services Net Revenues $ 11,751 $ 11,957 $ 9,771 $ 9,981
========= ========= ========= =========
Total Net Revenues by Geography:
Total North America Net
Revenues $ 97,991 $ 104,749 $ 99,007 $ 101,626
Total International Net
Revenues 30,331 33,088 30,032 32,554
Total Non-case Net Revenues 6,757 7,789 7,457 8,660
--------- --------- --------- ---------
Total Worldwide Net Revenues $ 135,079 $ 145,626 $ 136,496 $ 142,840
========= ========= ========= =========
YoY% growth 28.8% 21.3% 8.4% 10.8%
QoQ% growth 4.8% 7.8% -6.3% 4.6%
Note: Historical public data may differ due to rounding. Additionally,
rounding may effect totals.
ALIGN TECHNOLOGY
Q3 2013 EARNINGS RELEASE ADDITIONAL DATA
REVENUE PERFORMANCE AND CLEAR ALIGNER METRICS
(in thousands except per share data)
FISCAL Q1 Q2 Q3
2012 2013 2013 2013
--------- --------- --------- ---------
Invisalign Clear Aligner Net
Revenues by Geography:
North America $ 361,122 $ 97,045 $ 102,217 $ 103,888
North American Orthodontists 172,532 48,859 50,476 52,504
North American GP Dentists 188,590 48,186 51,741 51,384
International 124,796 31,818 40,320 38,983
Non-case* 30,663 12,709 10,766 10,679
--------- --------- --------- ---------
Total Clear Aligner Net
Revenues $ 516,581 $ 141,572 $ 153,303 $ 153,550
=-======== ========= ========= =========
*includes Invisalign training,
ancillary products, and
retainers
Invisalign Clear Aligner Net
Revenues by Product:
Invisalign Full $ 338,600 $ 85,914 $ 95,762 $ 93,945
Invisalign Express/Lite 51,486 16,083 19,158 17,702
Invisalign Teen 67,127 18,573 19,937 23,779
Invisalign Assist 28,705 8,293 7,680 7,445
Non-case* 30,663 12,709 10,766 10,679
--------- --------- --------- ---------
Total Clear Aligner Net
Revenues $ 516,581 $ 141,572 $ 153,303 $ 153,550
========= ========= ========= =========
Average Invisalign Selling Price
(ASP):
Worldwide ASP (1) $ 1,340 $ 1,315 $ 1,345 $ 1,335
Worldwide ASP, adjusted (2) $ 1,325 $ 1,340 $ 1,355 $ 1,335
International ASP $ 1,435 $ 1,355 $ 1,480 $ 1,455
(1) Invisalign case net
revenues / Invisalign case
shipments
(2) Adjusted for one-time
adjustments (eg. Q4'12
refinement release and Q1'13
and Q2'13 grandfathered mid-
course correction deferrals)
Invisalign Clear Aligner Cases
Shipped by Geography:
North America 276,715 74,730 78,865 80,130
North American Orthodontists 137,045 38,000 39,545 41,610
North American GP Dentists 139,670 36,730 39,320 38,520
International 86,825 23,445 27,270 26,770
--------- --------- --------- ---------
Total Cases Shipped 363,540 98,175 106,135 106,900
========= ========= ========= =========
Invisalign Clear Aligner Cases
Shipped by Product:
Invisalign Full 234,975 61,245 65,525 64,600
Invisalign Express/Lite 58,705 18,940 21,285 19,230
Invisalign Teen 48,315 12,580 13,920 17,740
Invisalign Assist 21,545 5,410 5,405 5,330
--------- --------- --------- ---------
Total Cases Shipped 363,540 98,175 106,135 106,900
========= ========= ========= =========
Number of Invisalign Doctors
Cases Shipped To:
North American Orthodontists 5,665 4,760 4,940 4,970
North American GP Dentists 19,285 12,520 13,130 13,170
International 9,285 5,840 6,355 6,510
--------- --------- --------- ---------
Total Doctors Cases Shipped
To 34,235 23,120 24,425 24,650
========= ========= ========= =========
Invisalign Doctor Utilization
Rates*:
North American Orthodontists 24.2 8.0 8.0 8.4
North American GP Dentists 7.2 2.9 3.0 2.9
International 9.4 4.0 4.3 4.1
--------- --------- --------- ---------
Total Utilization Rates 10.6 4.3 4.4 4.3
--------- --------- --------- ---------
* # of cases shipped/# of
doctors to whom cases were
shipped
Number of Invisalign Doctors
Trained:
North American Orthodontists 385 65 115 90
North American GP Dentists 3,310 690 1,015 705
International 3,145 905 1,020 840
--------- --------- --------- ---------
Total Doctors Trained
Worldwide 6,840 1,660 2,150 1,635
--------- --------- --------- ---------
Total to Date Worldwide 76,495 78,155 80,305 81,940
========= ========= ========= =========
Scanner and CAD/CAM Services Net
Revenues:
North America Scanner and
CAD/CAM Services $ 42,251 $ 11,952 $ 10,454 $ 10,875
International Scanner and
CAD/CAM Services 1,209 56 71 81
--------- --------- ---------
Total Scanner and CAD/CAM
Net Revenues $ 43,460 $ 12,008 $ 10,525 $ 10,956
========= ========= ========= =========
Scanner Net Revenues $ 20,059 $ 6,625 $ 5,027 $ 5,538
CAD/CAM Services Net Revenues 23,401 5,383 5,498 5,418
--------- --------- --------- ---------
Total Scanner and CAD/CAM
Services Net Revenues $ 43,460 $ 12,008 $ 10,525 $ 10,956
========= ========= ========= =========
Total Net Revenues by Geography:
Total North America Net
Revenues $ 403,373 $ 108,997 $ 112,671 $ 114,763
Total International Net
Revenues 126,005 31,874 40,391 39,064
Total Non-case Net Revenues 30,663 12,709 10,766 10,679
--------- --------- --------- ---------
Total Worldwide Net Revenues $ 560,041 $ 153,580 $ 163,828 $ 164,506
========= ========= ========= =========
YoY% growth 16.7% 13.7% 12.5% 20.5%
QoQ% growth 7.5% 6.7% 0.4%
----------
Note: Historical public data may differ due to rounding. Additionally,
rounding may effect totals.
ALIGN TECHNOLOGY, INC.
BUSINESS OUTLOOK SUMMARY
(unaudited)
The outlook figures provided below and elsewhere in this press release are
approximate in nature since Align's business outlook is difficult to
predict. Align's future performance involves numerous risks and
uncertainties and the company's results could differ materially from the
outlook provided. Some of the factors that could affect Align's future
financial performance and business outlook are set forth under "Forward
Looking Information" above in this press release.
Financial Outlook
(in millions, except per share amounts and percentages)
Q4'13 Guidance
--------------------
GAAP
--------------------
Net Revenues $169.1 - $173.1
Gross Margin 74.7% - 75.3%
Operating Expenses $83.8 - $85.4
Operating Margin 25.2% - 26.0%
Net Income per Diluted Share $0.41 - $0.43
Stock Based Compensation Expense:
Cost of Net Revenues $0.8
Operating Expenses $7.1
--------------------
Total Stock Based Compensation Expense $7.9
Business Metrics:
Q4'13
--------------------
Case Shipments 109.7K - 112.1K
Cash, Cash Equivalents, and Marketable Securities $434M - $444M
Capex $3.3M - $4.8M
Depreciation & Amortization $3.8M - $4.3M
Diluted Shares Outstanding 82.2M
Investor Relations Contact Shirley Stacy Align Technology, Inc. (408) 470-1150 sstacy@aligntech.com Press Contact Shannon Mangum Henderson Ethos Communication, Inc. (678) 261-7803 align@ethoscommunication.com