Anika Therapeutics(US:ANIK)2024-11-04 21:41Revenue Performance - Revenue for Q3 2024 was $38.75 million, a decrease of 7% compared to $41.47 million in Q3 2023[82] - Revenue for the first nine months of 2024 was $121.20 million, down 2% from $123.69 million in the same period of 2023[82] - Revenue from the OA Pain Management product family decreased by 2% for both Q3 and the first nine months of 2024 compared to the same periods in 2023[84] - Revenue from the Joint Preservation and Restoration product family decreased by 11% in Q3 2024 and by 1% in the first nine months of 2024 compared to the same periods in 2023[85] - Revenue from the Non-Orthopedic product family decreased by 24% and 11% for the three- and nine-month periods ended September 30, 2024, compared to the same periods in 2023[86] Profitability and Loss - Gross profit for Q3 2024 was $1.44 million, a significant decline of 94% from $24.94 million in Q3 2023, resulting in a gross margin of only 4%[82] - Gross profit for the three-month period ended September 30, 2024 decreased by $23.5 million to $1.4 million, and for the nine-month period, it decreased by $23.3 million to $53.4 million[87] - Gross margin for the three- and nine-month periods ended September 30, 2024 was 4% and 44%, respectively, down from 60% and 62% in the same periods of 2023[88] - Net loss for Q3 2024 was $29.92 million, a 355% increase from a net loss of $6.58 million in Q3 2023[82] - Net loss for the three- and nine-month periods ended September 30, 2024 was $29.9 million and $34.5 million, respectively, compared to a net loss of $6.6 million and $19.7 million in the same periods of 2023[94] - Adjusted net loss for the three months ended September 30, 2024, was $3.8 million, a decrease of $7.1 million compared to the same period in 2023[110] Expenses - Operating expenses for Q3 2024 totaled $29.46 million, a decrease of 10% compared to $32.62 million in Q3 2023[82] - Research and development expenses for the three- and nine-month periods ended September 30, 2024 were $7.2 million and $22.8 million, respectively, down from $7.8 million and $25.1 million in the same periods of 2023[89] - Selling, general and administrative expenses for the three- and nine-month periods ended September 30, 2024 were $19.1 million and $60.4 million, respectively, compared to $24.8 million and $75.5 million in the same periods of 2023[91] - A non-cash impairment charge of $3.1 million was recorded in the three-month period ended September 30, 2024, due to the decline in fair value of the Arthrosurface reporting unit[92] Cash Flow and Financial Position - Cash and cash equivalents were $62.4 million as of September 30, 2024, down from $72.9 million at December 31, 2023[113] - Cash provided by operating activities was $3.8 million for the nine-month period ended September 30, 2024, compared to cash used of $5.4 million in the same period in 2023[116] - Cash used in investing activities increased to $7.0 million for the nine months ended September 30, 2024, from $3.6 million in the same period in 2023[117] - Cash used in financing activities was $7.4 million for the nine months ended September 30, 2024, compared to $6.7 million in the same period in 2023[118] - The company has a credit facility of up to $150.0 million, with no outstanding borrowings as of September 30, 2024[114] Strategic Initiatives - The company completed the sale of Arthrosurface for a non-interest bearing promissory note of $7.0 million and potential future revenue payments based on sales performance[77] - The company plans to divest the Parcus Medical business to focus on core HA technology and regenerative solutions[78] - The company is actively engaging with the FDA for regulatory approval of Cingal, a next-generation OA pain management product[79] Adjusted Metrics - Adjusted gross profit for the three- and nine-month periods ended September 30, 2024 decreased to $25.0 million and $77.8 million, respectively, with adjusted gross margins of 65% and 64%[102] - Adjusted EBITDA for the three-month period ended September 30, 2024 increased by $0.7 million compared to the same period in 2023, while for the nine-month period, it increased by $4.5 million[105] - Adjusted diluted EPS for the nine months ended September 30, 2024, decreased by $0.38 to $(0.01) compared to $0.37 in the same period in 2023[112] Accounting Policies - There have been no significant changes to critical accounting policies or estimates since the last annual report[119] - The decrease in adjusted net income was primarily due to lower revenues from strategic ordering patterns with higher margin customers[111] Future Outlook - The company expects cash requirements to increase as operations expand, but believes current cash flows and resources are sufficient for ongoing investments[113]