Align Technology Announces Record Fourth Quarter and Fiscal 2013 ResultsSAN JOSE, CA -- (Marketwired - January 30, 2014) - Align Technology, Inc. (NASDAQ: ALGN)
- Q4 Net revenues of $178.3 million increased 24.8% year-over-year
- Q4 Invisalign clear aligner net revenues of $166.2 million increased 25.1% year-over-year
- Q4 GAAP Earnings per diluted share (EPS) of $0.51
- 2013 Net revenues of $660.2 million, increased 17.9% year-over-year
- 2013 GAAP diluted EPS was $0.78, non-GAAP diluted EPS was $1.54
Align Technology, Inc. (NASDAQ: ALGN) today reported financial results for the fourth quarter and fiscal year ended December 31, 2013.
Consolidated net revenues and net profit for both the fourth quarter and fiscal year were each records for the Company.
Total net revenues for the fourth quarter of 2013 (Q4'13) was a record $178.3 million. This is compared to net revenues of $164.5 million reported in the third quarter of 2013 (Q3'13) and $142.8 million in the fourth quarter of 2012 (Q4'12). Q4'13 clear aligner net revenues was $166.2 million, compared to $153.5 million in Q3'13 and $132.8 million in Q4'12. Clear aligner case shipments in Q4'13 were 111.1 thousand, compared to 106.9 thousand in Q3'13 and 90.5 thousand in Q4'12. Q4'13 scanner and CAD/CAM services net revenues was a $12.1 million, compared to $11.0 million in Q3'13 and compared to $10.0 million in Q4'12.
For fiscal 2013 (FY'13), net revenues was $660.2 million, an increase of 17.9% from $560.0 million reported for fiscal 2012 (FY'12). FY'13 clear aligner net revenues of $614.6 million increased 19.0% from $516.6 million for FY'12. FY'13 clear aligner case shipments of 422.3 thousand increased 16.2% from 363.5 thousand for FY'12. FY'13 scanner and CAD/CAM services net revenues was $45.6 million compared to $43.5 million in FY'12.
"The fourth quarter was a solid finish to the year for Align and we're pleased to have delivered better than expected revenue, operating margins and earnings, driven by strong Invisalign growth from our international doctors in Europe and Asia Pacific," said Thomas M. Prescott, Align president and CEO. "While North American Invisalign case shipments were sequentially flat, Invisalign case receipts were softer than expected in December, as many Orthodontist and GP Dentist practices had fewer days in office due to the timing of the four major holidays between Thanksgiving and New Year's Day. However, January receipts are improving and it appears that doctors and their patients are getting back to business."
Net profit for Q4'13 was $42.4 million, or $0.51 per diluted share. This is compared to net profit of $34.5 million, or $0.42 per diluted share in Q3'13, and net profit of $9.6 million, or $0.12 per diluted share in Q4'12. Q4'12 net profit included a goodwill impairment charge of $11.9 million.
Net profit for FY'13 was $64.3 million or $0.78 per diluted share. This compares to net profit for FY'12 of $58.7 million or $0.71 per diluted share. Net profit in FY'13 and FY'12 included $63.2 million and $34.7 million, respectively, of various charges, net of tax, related to the impairment of goodwill and intangible assets and other non-recurring items. Excluding these charges, non-GAAP net profit for FY'13 was $127.5 million compared with non-GAAP net profit in FY'12 of $93.4 million (see "About Non-GAAP Financial Measures").
As of December 31, 2013, the Company had $472.0 million in cash, cash equivalents, and short and long-term marketable securities compared to $356.1 million as of December 31, 2012.
To supplement our consolidated financial statements, we provide the following GAAP and non-GAAP financial measures. Detailed reconciliations between GAAP and non-GAAP information are contained in the tables following the financial tables of this release. Starting in fiscal 2013, amortization of acquired intangible assets is no longer excluded as a non-GAAP measure. This expense is included in GAAP gross profit, operating expenses, operating profit and net profit for the periods presented below and therefore is no longer a reconciling item.
Operating Results Summary ($M except for per share amounts and percentages)
Key GAAP Operating Results Q4'13 Q3'13 Q4'12 FY'13 FY'12
------ ------ ------ ------ ------
Net Revenues $178.3 $164.5 $142.8 $660.2 $560.0
- Clear Aligner $166.2 $153.5 $132.8 $614.6 $516.6
- Scanner and CAD/CAM Services $ 12.1 $ 11.0 $ 10.0 $ 45.6 $ 43.4
Gross Margin 76.5% 76.0% 74.5% 75.4% 74.3%
- Clear Aligner 79.8% 79.9% 78.8% 78.9% 78.6%
- Scanner and CAD/CAM Services 31.1% 22.2% 18.5% 29.1% 24.0%
Operating Expenses $ 83.6 $ 83.6 $ 89.4 $403.9 $330.8
Operating Margin 29.7% 25.2% 12.0% 14.3% 15.3%
Net Profit $ 42.2 $ 34.5 $ 9.6 $ 64.3 $ 58.7
EPS $ 0.51 $ 0.42 $ 0.12 $ 0.78 $ 0.71
Key Non-GAAP Operating Results Q4'13 Q3'13 Q4'12 FY'13 FY'12
------ ------ ------ ------ ------
Non-GAAP Gross Margin 76.5% 76.0% 74.5% 75.4% 74.5%
- Non-GAAP Clear Aligner 79.8% 79.9% 78.8% 78.9% 78.6%
- Non-GAAP Scanner and CAD/CAM
Services 31.1% 22.2% 18.5% 29.1% 25.7%
Non-GAAP Operating Expenses $ 83.6 $ 83.6 $ 77.5 $336.9 $292.9
Non-GAAP Operating Margin 29.7% 25.2% 20.3% 24.4% 22.2%
Non-GAAP Net Profit $ 42.2 $ 34.5 $ 21.5 $127.5 $ 93.4
Non-GAAP EPS $ 0.51 $ 0.42 $ 0.26 $ 1.54 $ 1.13
EBITDA $ 56.9 $ 45.8 $ 21.7 $110.0 $102.1
Adjusted EBITDA $ 56.9 $ 45.8 $ 33.6 $177.0 $140.7
Stock-based Compensation (SBC) Q4'13 Q3'13 Q4'12 FY'13 FY'12
------ ------ ------ ------ ------
Total SBC Expense $ 5.2 $ 7.6 $ 6.0 $ 26.5 $ 21.4
- SBC included in Gross Margin $ 0.7 $ 0.7 $ 0.5 $ 2.6 $ 1.8
- SBC included in Operating
Expenses $ 4.5 $ 6.9 $ 5.5 $ 23.9 $ 19.6
Business Highlights
The following list highlights the Company's key strategic announcements over the past year:
- Align announced the new iTero imaging system available as a single hardware platform with software options for restorative or orthodontic procedures.
- Align announced the commercial availability of the Invisalign Outcome Simulator, the Company's first chair-side application designed to preview an Invisalign treatment after creating a digital impression with an iTero scanner.
- Align announced the commercial availability of SmartTrack™, the next generation of Invisalign clear aligner material. SmartTrack is a highly elastic, proprietary new aligner material that delivers a gentle, more constant force to improve control of tooth movements with Invisalign clear aligner treatment.
- Align announced the acquisition of its distributor for Invisalign products in the Asia Pacific region, marking the transitioning of Australia, New Zealand, Hong Kong, Singapore, Macau and Malaysia to a direct sales region.
- Align and Henry Schein Dental announced the introduction of Realine™, an entry level, five-stage clear aligner product designed for very minor crowding and spacing issues.
- Align announced the upcoming release of Invisalign G5 innovations, specifically designed for the treatment of deep bite malocclusions.
Q1 Fiscal 2014 Business Outlook
For the first quarter of 2014 (Q1'14), Align Technology provides the following guidance:
- Net revenues in a range of $175.2 million to $179.6 million, which reflects a year-over-year increase of 14% to 17%.
- Clear aligner case shipments in a range of 110.1 to 113.1 thousand cases.
- EPS in a range of $0.32 to $0.34.
Align Web Cast and Conference Call
Align Technology will host a conference call today, January 30, 2014 at 4:30 p.m. ET, 1:30 p.m. PT, to review its fourth 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 13573937 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 February 7, 2014.
About Align Technology, Inc.
Align Technology is the leader in modern clear aligner orthodontics that designs, manufactures and markets the Invisalign system, which provides dental professionals with a range of treatment options for adults and teenagers. The Company also offers the iTero 3D digital scanning system and services for orthodontic and restorative dentistry. Align Technology was founded in March 1997 and received FDA clearance to market Invisalign in 1998. Visit www.aligntech.com for more information.
For additional information about Invisalign or to find an Invisalign provider in your area, please visit www.invisalign.com. For additional information about iTero, please visit www.itero.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 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 first quarter of 2014, including, but not limited to, 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 product 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 Year Ended
-------------------------- --------------------------
December 31, December 31, December 31, December 31,
2013 2012 2013 2012
------------ ------------ ------------ ------------
Net revenues $ 178,292 $ 142,840 $ 660,206 $ 560,041
Cost of net revenues 41,816 36,362 162,100 143,653
------------ ------------ ------------ ------------
Gross profit 136,476 106,478 498,106 416,388
Operating expenses:
Sales and
marketing 44,694 37,769 180,046 152,041
General and
administrative 27,889 28,001 112,752 99,295
Research and
development 10,970 11,711 44,082 42,869
Impairment of
goodwill - 11,926 40,694 36,591
Impairment of
long-lived assets - - 26,320 -
------------ ------------ ------------ ------------
Total operating
expenses 83,553 89,407 403,894 330,796
Operating profit 52,923 17,071 94,212 85,592
Interest and other
income (expense),
net (199) (672) (1,073) (1,296)
------------ ------------ ------------ ------------
Profit before income
taxes 52,724 16,399 93,139 84,296
Provision for income
taxes 10,302 6,840 28,844 25,605
------------ ------------ ------------ ------------
Net profit $ 42,422 $ 9,559 $ 64,295 $ 58,691
============ ============ ============ ============
Net profit per share
- basic $ 0.53 $ 0.12 $ 0.80 $ 0.73
============ ============ ============ ============
- diluted $ 0.51 $ 0.12 $ 0.78 $ 0.71
============ ============ ============ ============
Shares used in
computing net profit
per share
- basic 80,432 81,043 80,551 80,529
============ ============ ============ ============
- diluted 82,438 82,981 82,589 83,040
============ ============ ============ ============
ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2013 2012
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 242,953 $ 306,386
Marketable securities, short-term 127,040 28,485
Accounts receivable, net 113,250 98,992
Inventories 13,968 15,122
Other current assets 47,464 36,808
-------------- --------------
Total current assets 544,675 485,793
Marketable securities, long-term 101,978 21,252
Property and equipment, net 75,743 79,191
Goodwill and intangible assets, net 85,363 145,013
Deferred tax assets 15,766 21,609
Other long-term assets 8,622 3,454
-------------- --------------
Total assets $ 832,147 $ 756,312
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 17,718 $ 19,549
Accrued liabilities 80,345 74,247
Deferred revenue 77,275 61,975
-------------- --------------
Total current liabilities 175,338 155,771
Other long term liabilities 22,839 19,224
-------------- --------------
Total liabilities 198,177 174,995
Total stockholders' equity 633,970 581,317
-------------- --------------
Total liabilities and stockholders' equity $ 832,147 $ 756,312
============== ==============
ALIGN TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP KEY FINANCIAL METRICS
Reconciliation of GAAP to Non-GAAP Operating Expenses
(in thousands) Three Months Ended
--------------------------------------------
December 31, September 31, December 31,
2013 2013 2012
-------------- -------------- --------------
GAAP Operating expenses $ 83,553 $ 83,626 $ 89,407
Impairment of goodwill (3) - - (11,926)
-------------- -------------- --------------
Non-GAAP Operating expenses $ 83,553 $ 83,626 $ 77,481
============== ============== ==============
Reconciliation of GAAP to Non-
GAAP Operating Profit
(in thousands) Three Months Ended
--------------------------------------------
December 31, September 31, December 31,
2013 2013 2012
-------------- -------------- --------------
GAAP Operating profit $ 52,923 $ 41,464 $ 17,071
Impairment of goodwill (3) - - 11,926
-------------- -------------- --------------
Non-GAAP Operating profit $ 52,923 $ 41,464 $ 28,997
============== ============== ==============
Reconciliation of GAAP to Non-
GAAP Net Profit
(in thousands, except per
share amounts) Three Months Ended
--------------------------------------------
December 31, September 31, December 31,
2013 2013 2012
-------------- -------------- --------------
GAAP Net profit $ 42,422 $ 34,537 $ 9,559
Impairment of goodwill (3) - - 11,926
Income tax-related
adjustments (5) - - 42
-------------- -------------- --------------
Non-GAAP Net profit $ 42,422 $ 34,537 $ 21,527
-------------- -------------- --------------
Diluted Net profit per share:
GAAP $ 0.51 $ 0.42 $ 0.12
============== ============== ==============
Non-GAAP $ 0.51 $ 0.42 $ 0.26
============== ============== ==============
Shares used in computing
diluted GAAP Net profit per
share 82,438 81,848 82,981
============== ============== ==============
Shares used in computing
diluted Non-GAAP Net profit
per share 82,438 81,848 82,981
============== ============== ==============
Reconciliation of GAAP Net
Profit to EBITDA and Adjusted
EBITDA
(in thousands) Three Months Ended
--------------------------------------------
December 31, September 31, December 31,
2013 2013 2012
-------------- -------------- --------------
GAAP Net profit $ 42,422 $ 34,537 $ 9,559
Provision for income taxes 10,302 7,376 6,840
Depreciation and amortization 4,178 3,858 5,278
-------------- -------------- --------------
EBITDA (6) $ 56,902 $ 45,771 $ 21,677
Adjustments or charges:
Impairment of goodwill (3) - - 11,926
-------------- -------------- --------------
EBITDA after adjustments (6) $ 56,902 $ 45,771 $ 33,603
============== ============== ==============
ALIGN TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP KEY FINANCIAL METRICS
Reconciliation of GAAP to Non-GAAP Gross
Profit
(in thousands) Year Ended
------------------------------
December 31, December 31,
2013 2012
-------------- --------------
GAAP Gross profit $ 498,106 $ 416,388
Acquisition and integration costs related
to cost of revenues (1) - 261
Severance and benefit costs related to
cost of revenues (2) - 474
-------------- --------------
Non-GAAP Gross profit $ 498,106 $ 417,123
============== ==============
Reconciliation of GAAP to Non-GAAP Gross
Profit Scanner and CAD/CAM Services
(in thousands) Year Ended
------------------------------
December 31, December 31,
2013 2012
-------------- --------------
GAAP Scanner and CAD/CAM Services gross
profit $ 13,271 $ 10,418
Acquisition and integration costs related
to cost of revenues (1) - 261
Severance and benefit costs related to
cost of revenues (2) - 474
-------------- --------------
Non-GAAP Gross profit $ 13,271 $ 11,153
============== ==============
Reconciliation of GAAP to Non-GAAP Operating
Expenses
(in thousands) Year Ended
------------------------------
December 31, December 31,
2013 2012
-------------- --------------
GAAP Operating expenses $ 403,894 $ 330,796
Acquisition and integration costs related
to operating expenses (1) - (1,010)
Severance and benefit costs related to
operating expenses (2) - (306)
Impairment of goodwill (3) (40,694) (36,591)
Impairment of long-lived assets (4) (26,320) -
-------------- --------------
Non-GAAP Operating expenses $ 336,880 $ 292,889
============== ==============
Reconciliation of GAAP to Non-GAAP Operating
Profit
(in thousands) Year Ended
------------------------------
December 31, December 31,
2013 2012
-------------- --------------
GAAP Operating profit $ 94,212 $ 85,592
Acquisition and integration costs (1) - 1,271
Severance and benefit costs (2) - 780
Impairment of goodwill (3) 40,694 36,591
Impairment of long-lived assets (4) 26,320 -
-------------- --------------
Non-GAAP Operating profit $ 161,226 $ 124,234
============== ==============
Reconciliation of GAAP to Non-GAAP Net
Profit
(in thousands, except per share amounts) Year Ended
------------------------------
December 31, December 31,
2013 2012
-------------- --------------
GAAP Net profit $ 64,295 $ 58,691
Acquisition and integration costs (1) - 1,271
Severance and benefit costs (2) - 780
Impairment of goodwill (3) 40,694 36,591
Impairment of long-lived assets (4) 26,320 -
Income tax-related adjustments (5) (3,788) (3,900)
-------------- --------------
Non-GAAP Net profit $ 127,521 $ 93,433
============== ==============
Diluted Net profit per share:
GAAP $ 0.78 $ 0.71
============== ==============
Non-GAAP $ 1.54 $ 1.13
============== ==============
Shares used in computing diluted GAAP Net
profit per share 82,589 83,040
============== ==============
Shares used in computing diluted Non-GAAP
Net profit per share 82,589 83,040
============== ==============
Reconciliation of GAAP Net Profit to EBITDA
and Adjusted EBITDA
(in thousands) Year Ended
------------------------------
December 31, December 31,
2013 2012
-------------- --------------
GAAP Net profit $ 64,295 $ 58,691
Provision for income taxes 28,844 25,605
Depreciation and amortization 16,825 17,811
-------------- --------------
EBITDA (6) 109,964 102,107
Adjustments or charges:
Acquisition and integration related costs
(1) - 1,271
Severance and benefit costs (2) - 780
Impairment of goodwill (3) 40,694 36,591
Impairment of long-lived assets (4) 26,320 -
-------------- --------------
EBITDA after adjustments (6) $ 176,978 $ 140,749
============== ==============
Notes:
(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. This closure resulted in us incurring various restructuring and exit activities in 2011 and costs associated with severance and benefits. Such activity was 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
Q4 and FISCAL 2013 EARNINGS RELEASE ADDITIONAL DATA
REVENUE PERFORMANCE AND CLEAR ALIGNER METRICS
(in thousands except per share data)
---------
Q4 FISCAL
2012 2012
Invisalign Clear Aligner
Net Revenues by
Geography:
North America $ 91,686 $361,122
North American
Orthodontists 43,812 172,532
North American GP
Dentists 47,874 188,590
International 32,513 124,796
Non-case* 8,660 30,663
-------- --------
Total Clear Aligner
Net Revenues $132,859 $516,581
======== ========
*includes Invisalign
training, ancillary
products, and retainers
Invisalign Clear Aligner
Net Revenues by Product:
Invisalign Full $ 87,265 $338,600
Invisalign Express/Lite 13,269 51,486
Invisalign Teen 16,455 67,127
Invisalign Assist 7,210 28,705
Non-case* 8,660 30,663
-------- --------
Total Clear Aligner
Net Revenues $132,859 $516,581
======== ========
Average Invisalign Selling
Price (ASP):
Worldwide ASP (1) $ 1,375 $ 1,340
Worldwide ASP, adjusted
(2) $ 1,320 $ 1,325
International ASP $ 1,455 $ 1,435
(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 68,140 276,715
North American
Orthodontists 33,505 137,045
North American GP
Dentists 34,635 139,670
International 22,340 86,825
-------- --------
Total Cases Shipped 90,480 363,540
======== ========
Invisalign Clear Aligner
Cases Shipped by Product:
Invisalign Full 57,920 234,975
Invisalign Express/Lite 15,940 58,705
Invisalign Teen 11,255 48,315
Invisalign Assist 5,365 21,545
-------- --------
Total Cases Shipped 90,480 363,540
======== ========
Number of Invisalign
Doctors Cases Shipped To:
North American
Orthodontists 4,615 5,665
North American GP
Dentists 11,685 19,285
International 5,715 9,285
-------- --------
Total Doctors Cases
Shipped To 22,015 34,235
======== ========
Invisalign Doctor
Utilization Rates*:
North American
Orthodontists 7.3 24.2
North American GP
Dentists 3.0 7.2
International 3.9 9.4
-------- --------
Total Utilization
Rates 4.1 10.6
======== ========
* # of cases shipped/#
of doctors to whom
cases were shipped
Number of Invisalign
Doctors Trained:
North American
Orthodontists 75 385
North American GP
Dentists 920 3,310
International 780 3,145
-------- --------
Total Doctors Trained
Worldwide 1,775 6,840
======== ========
Total to Date
Worldwide 76,495 76,495
======== ========
Scanner and CAD/CAM
Services Net Revenues:
North America Scanner
and CAD/CAM Services $ 9,940 $ 42,251
International Scanner
and CAD/CAM Services 41 1,209
-------- --------
Total Scanner and
CAD/CAM Net Revenues $ 9,981 $ 43,460
======== ========
Scanner Net Revenues $ 4,643 $ 20,059
CAD/CAM Services Net
Revenues 5,338 23,401
-------- --------
Total Scanner and
CAD/CAM Services Net
Revenues $ 9,981 $ 43,460
======== ========
Total Net Revenues by
Geography:
Total North America Net
Revenues $101,626 $403,373
Total International Net
Revenues 32,554 126,005
Total Non-case Net
Revenues 8,660 30,663
-------- --------
Total Worldwide Net
Revenues $142,840 $560,041
======== ========
YoY % growth 10.8% 16.7%
QoQ % growth 4.6%
---------
Note: Historical public
data may differ due to
rounding. Additionally,
rounding may effect
totals.
---------
Q1 Q2 Q3 Q4 FISCAL
2013 2013 2013 2013 2013
Invisalign Clear Aligner
Net Revenues by
Geography:
North America $ 97,045 $102,217 $103,888 $105,059 $408,209
North American
Orthodontists 48,859 50,476 52,504 52,104 203,943
North American GP
Dentists 48,186 51,741 51,384 52,955 204,266
International 31,818 40,320 38,983 50,595 161,716
Non-case* 12,709 10,766 10,679 10,570 44,724
-------- -------- -------- -------- --------
Total Clear Aligner
Net Revenues $141,572 $153,303 $153,550 $166,224 $614,649
======== ======== ======== ======== ========
*includes Invisalign
training, ancillary
products, and retainers
Invisalign Clear Aligner
Net Revenues by Product:
Invisalign Full $ 85,914 $ 95,762 $ 93,945 $106,433 $382,054
Invisalign Express/Lite 16,083 19,158 17,702 19,475 72,418
Invisalign Teen 18,573 19,937 23,779 22,561 84,850
Invisalign Assist 8,293 7,680 7,445 7,185 30,603
Non-case* 12,709 10,766 10,679 10,570 44,724
-------- -------- -------- -------- --------
Total Clear Aligner
Net Revenues $141,572 $153,303 $153,550 $166,224 $614,649
======== ======== ======== ======== ========
Average Invisalign Selling
Price (ASP):
Worldwide ASP (1) $ 1,315 $ 1,345 $ 1,335 $ 1,400 $ 1,350
Worldwide ASP, adjusted
(2) $ 1,340 $ 1,355 $ 1,335 $ 1,400 $ 1,360
International ASP $ 1,355 $ 1,480 $ 1,455 $ 1,630 $ 1,490
(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 74,730 78,865 80,130 80,120 313,845
North American
Orthodontists 38,000 39,545 41,610 40,420 159,575
North American GP
Dentists 36,730 39,320 38,520 39,700 154,270
International 23,445 27,270 26,770 31,010 108,495
-------- -------- -------- -------- --------
Total Cases Shipped 98,175 106,135 106,900 111,130 422,340
======== ======== ======== ======== ========
Invisalign Clear Aligner
Cases Shipped by Product:
Invisalign Full 61,245 65,525 64,600 70,985 262,355
Invisalign Express/Lite 18,940 21,285 19,230 19,525 78,980
Invisalign Teen 12,580 13,920 17,740 15,350 59,590
Invisalign Assist 5,410 5,405 5,330 5,270 21,415
-------- -------- -------- -------- --------
Total Cases Shipped 98,175 106,135 106,900 111,130 422,340
======== ======== ======== ======== ========
Number of Invisalign
Doctors Cases Shipped To:
North American
Orthodontists 4,760 4,940 4,970 5,060 6,040
North American GP
Dentists 12,520 13,130 13,170 13,435 21,290
International 5,840 6,355 6,510 6,925 10,800
-------- -------- -------- -------- --------
Total Doctors Cases
Shipped To 23,120 24,425 24,650 25,420 38,130
======== ======== ======== ======== ========
Invisalign Doctor
Utilization Rates*:
North American
Orthodontists 8.0 8.0 8.4 8.0 26.4
North American GP
Dentists 2.9 3.0 2.9 3.0 7.3
International 4.0 4.3 4.1 4.5 10.0
-------- -------- -------- -------- --------
Total Utilization
Rates 4.3 4.4 4.3 4.4 11.1
======== ======== ======== ======== ========
* # of cases shipped/#
of doctors to whom
cases were shipped
Number of Invisalign
Doctors Trained:
North American
Orthodontists 65 115 90 105 375
North American GP
Dentists 690 1,015 705 1,355 3,765
International 970 1,020 875 1,060 3,925
-------- -------- -------- -------- --------
Total Doctors Trained
Worldwide 1,725 2,150 1,670 2,520 8,065
======== ======== ======== ======== ========
Total to Date
Worldwide 78,220 80,370 82,040 84,560 84,560
======== ======== ======== ======== ========
Scanner and CAD/CAM
Services Net Revenues:
North America Scanner
and CAD/CAM Services $ 11,952 $ 10,454 $ 10,875 $ 11,980 $ 45,261
International Scanner
and CAD/CAM Services 56 71 81 88 296
-------- -------- -------- -------- --------
Total Scanner and
CAD/CAM Net Revenues $ 12,008 $ 10,525 $ 10,956 $ 12,068 $ 45,557
======== ======== ======== ======== ========
Scanner Net Revenues $ 6,625 $ 5,027 $ 5,538 $ 6,508 $ 23,698
CAD/CAM Services Net
Revenues 5,383 5,498 5,418 5,560 21,859
-------- -------- -------- -------- --------
Total Scanner and
CAD/CAM Services Net
Revenues $ 12,008 $ 10,525 $ 10,956 $ 12,068 $ 45,557
======== ======== ======== ======== ========
Total Net Revenues by
Geography:
Total North America Net
Revenues $108,997 $112,671 $114,763 $117,039 $453,470
Total International Net
Revenues 31,874 40,391 39,064 50,683 162,012
Total Non-case Net
Revenues 12,709 10,766 10,679 10,570 44,724
-------- -------- -------- -------- --------
Total Worldwide Net
Revenues $153,580 $163,828 $164,506 $178,292 $660,206
======== ======== ======== ======== ========
YoY % growth 13.7% 12.5% 20.5% 24.8% 17.9%
QoQ % growth 7.5% 6.7% 0.4% 8.4%
---------
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)
Q1'14 Guidance
-------------------
GAAP
-------------------
Net Revenues $175.2 - $179.6
Gross Margin 73.9% - 74.5%
Operating Expenses $94.5 - $96.9
Operating Margin approximately 20.5%
Net Income per Diluted Share $0.32 - $0.34
Stock Based Compensation Expense:
Cost of Net Revenues $0.9
Operating Expenses $8.9
-------------------
Total Stock Based Compensation Expense $9.8
Business Metrics: Q1'14
-------------------
Case Shipments 110.1K - 113.1K
Cash, Cash Equivalents, and Marketable Securities $488M - $498M
Capex $6.1M - $7.6M
Depreciation & Amortization $4.3M - $4.8M
Diluted Shares Outstanding 82.8M
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
