BIOLASE MAINTAINS GROWTH MOMENTUM AS FIRST QUARTER REVENUE INCREASED 25% YEAR OVER YEAR

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    <br /> BIOLASE MAINTAINS GROWTH MOMENTUM AS FIRST QUARTER REVENUE INCREASED 25% YEAR OVER YEAR<br />

    PR Newswire



    LAKE FOREST, Calif.


    ,


    May 12, 2022


    /PRNewswire/ — BIOLASE, Inc. (NASDAQ: BIOL), the global leader in dental lasers, today announced its financial results for the first quarter ended

    March 31, 2022

    .


    2022 First Quarter and Recent Highlights

    • Total revenue was

      $10.2 million

      , up 25% year over year
    • U.S. laser sales increased 43% year over year and U.S. consumable sales increased 35% year over year, driven by increased procedures using BIOLASE lasers
    • International laser sales increased 15% year over year, while international consumable sales remained consistent
    • Higher average selling price and sales volumes resulted in a 47% gross margin for the quarter, an increase of 13 percentage points year over year
    • Continued momentum with new customers and dental specialists with 81% of U.S. Waterlase sales coming from new customers and 65% of U.S. Waterlase sales coming from dental specialists
    • Waterlase Exclusive Trial Program success rate increased to above 50% YTD, highlighting success of this program
    • Maintained a healthy balance sheet with cash and cash equivalents of approximately

      $22 million

      on

      March 31, 2022

    “Our continued strong performance in the first quarter reflects positive momentum on several fronts,” commented

    John Beaver

    , president and chief executive officer. “During the quarter we saw continued progress with our Waterlase Exclusive Trial Program, as our success rate has surpassed 50% year to date. This initiative, along with the launch of our specialist academies for endodontists, periodontists, pediatric dentists, and dental hygienists, generated increased adoption of our laser technology in the U.S. this quarter with 81% of our sales coming from new customers and 65% of sales coming from dental specialists. Additionally, we had 14 territory managers exceed quota this quarter, which is significant given that this is historically our softest quarter.

    “With only between 7% and 8% of the U.S. dental community currently using dental lasers, we are confident that we can leverage the enhanced capabilities of our dental lasers to drive further adoption and become the new standard of care. With every one percentage point increase in market adoption of laser technology in the U.S. alone, we estimate it will generate an additional

    $50 million

    in revenue for BIOLASE, assuming we maintain our current 60% market share. With our strong start to the year, and the continued success of our sales initiatives, we believe we are well positioned for continued revenue growth in 2022.”


    2022 First Quarter Financial Results

    Net revenue for the first quarter of 2022 was

    $10.2 million

    , an increase of 25% year over year. U.S. laser revenue was

    $4.0 million

    for the first quarter of 2022, up 43% when compared to U.S. laser revenue of

    $2.8 million

    for the first quarter of 2021. U.S. consumables and other revenue for the first quarter of 2022, which consists of revenue from consumable products such as disposable tips, increased 35% compared to the first quarter of 2021. Outside the U.S., laser revenue increased 15% to

    $2.3 million

    for the first quarter of 2022 compared to

    $2.0 million

    for the first quarter of 2021, and consumables and other revenue remained consistent year over year at

    $0.9 million

    .

    Gross margin for the first quarter of 2022 improved significantly to 47%, compared to 34% for the first quarter of 2021. The higher gross margin reflects the increase in revenue relative to the Company’s fixed costs as well as higher average U.S. selling prices of its lasers. Total operating expenses were

    $8.9 million

    for the first quarter of 2022 compared to

    $8.8 million

    for the first quarter of 2021. Operating loss for the first quarter of 2022 was

    $4.2 million

    , compared to an operating loss of

    $6.1 million

    in the first quarter of 2021.

    The Company maintained a healthy balance sheet and had cash and cash equivalents of

    $21.6 million

    on

    March 31, 2022

    . The Company believes it has sufficient financial resources to execute its near and long-term growth strategies.


    Net Loss and Adjusted EBITDA

    The reconciliation of GAAP Net Loss to Adjusted EBITDA at the end of this news release provides the details of the Company’s non-GAAP disclosures and the reconciliation of GAAP net loss and net loss per share to the Company’s Adjusted EBITDA and Adjusted EBITDA per share.

    Net loss for the first quarter of 2022 was

    $4.8 million

    compared to a net loss of

    $6.9 million

    for the first quarter of 2021. When adjusted for the reverse stock split, net loss per share for the quarter was

    $0.77

    compared to

    $1.28

    for the first quarter of 2021. Adjusted EBITDA loss for the first quarter of 2022 was

    $3.9 million

    compared with Adjusted EBITDA loss of

    $5.3 million

    for the first quarter of 2021. When adjusted retrospectively for the reverse stock split, adjusted EBITDA per share for the quarter was

    $0.64

    compared to

    $0.97

    for the first quarter of 2021.


    2022 Second Quarter and Full Year Revenue Guidance

    Based on currently available information and the continued operating momentum the Company has experienced in the first quarter, BIOLASE is anticipating second quarter net revenue to exceed

    $10.5 million

    , which would represent growth of at least 15% year over year. The Company continues to expect full year net revenue to increase at least 10% from 2021 levels.


    Conference Call Information

    BIOLASE, Inc. will host a conference call today at

    4:30 p.m. Eastern Time

    to discuss its operating results for the first quarter ended

    March 31, 2022

    and to answer questions. To access the live call, dial 1-877-317-6789 (U.S.) or +1 412-317-6789 (International) and ask to join the BIOLASE earnings call.

    A live and archived webcast of the conference call will be accessible on the BIOLASE Investor Relations page. In addition, a phone replay will be available approximately two hours following the end of the call, and it will remain available for one week. To access the call replay dial 1-877-344-7529 or +1 412-317-0088 (International) and enter replay passcode: 3445539.


    About BIOLASE

    BIOLASE is a medical device company that develops, manufactures, markets, and sells laser systems in dentistry and medicine. BIOLASE’s products advance the practice of dentistry and medicine for patients and healthcare professionals. BIOLASE’s proprietary laser products incorporate approximately 301 patented and 32 patent-pending technologies designed to provide biologically and clinically superior performance with less pain and faster recovery times. BIOLASE’s innovative products provide cutting-edge technology at competitive prices to deliver superior results for dentists and patients. BIOLASE’s principal products are dental laser systems that perform a broad range of dental procedures, including cosmetic and complex surgical applications. BIOLASE has sold over 43,300 laser systems to date in over 80 countries around the world. Laser products under development address BIOLASE’s core dental market and other adjacent medical and consumer applications.

    For updates and information on Waterlase iPlus®, Waterlase Express™, and laser dentistry, find BIOLASE online at

    www.biolase.com

    , Facebook at

    www.facebook.com/biolase

    , Twitter at

    www.twitter.com/biolaseinc

    , Instagram at

    www.instagram.com/waterlase_laserdentistry

    , and LinkedIn at

    www.linkedin.com/company/biolase

    .

    BIOLASE®, Waterlase® and Waterlase iPlus® are registered trademarks of BIOLASE, Inc.


    Cautionary Statement Regarding Forward-Looking Statements

    This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties, including statements, regarding BIOLASE’s expected revenue and revenue growth and beliefs regarding its financial resources. Forward-looking statements can be identified through the use of words such as “may,” “might,” “will,” “intend,” “should,” “could,” “can,” “would,” “continue,” “expect,” “believe,” “anticipate,” “estimate,” “predict,” “outlook,” “potential,” “plan,” “seek,” and similar expressions and variations or the negatives of these terms or other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect BIOLASE’s current expectations and speak only as of the date of this release. Actual results may differ materially from BIOLASE’s current expectations depending upon a number of factors. These factors include, among others, the coronavirus (COVID-19) and the effects of the outbreak and actions taken in connection therewith, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business, and those other risks and uncertainties that are described in the “Risk Factors” section of BIOLASE’s most recent annual report filed on Form 10-K filed with the Securities and Exchange Commission. Except as required by law, BIOLASE does not undertake any responsibility to revise or update any forward-looking statements.


    Tables to Follow



    BIOLASE, INC.



    CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS



    (Unaudited, in thousands, except per share data)




    Three Months Ended




    March 31,



    2022



    2021


    Net revenue


    $


    10,166


    $


    8,116


    Cost of revenue


    5,437


    5,375


    Gross profit


    4,729


    2,741


    Operating expenses:


    Sales and marketing


    4,814


    3,553


    General and administrative


    2,577


    3,358


    Engineering and development


    1,544


    1,803


    Loss on patent litigation settlement


    —


    89


    Total operating expenses


    8,935


    8,803


    Loss from operations


    (4,206)


    (6,062)


    Loss on foreign currency transactions


    (120)


    (204)


    Interest expense, net


    (433)


    (575)


    Non-operating loss, net


    (553)


    (779)


    Loss before income tax provision


    (4,759)


    (6,841)


    Income tax provision


    (17)


    (60)


    Net loss


    (4,776)


    (6,901)


    Other comprehensive loss items:


    Foreign currency translation adjustments


    (41)


    (148)


    Comprehensive loss


    $


    (4,817)


    $


    (7,049)


    Net loss


    $


    (4,776)


    $


    (6,901)


    Deemed dividend on convertible preferred stock


    (217)


    (532)


    Net loss attributable to common stockholders


    $


    (4,993)


    $


    (7,433)


    Net loss per share attributable to common stockholders:


    Basic and Diluted


    $


    (0.81)


    $


    (1.38)


    Shares used in the calculation of net loss per share:


    Basic and Diluted


    6,159


    5,383



    BIOLASE, INC.



    CONSOLIDATED BALANCE SHEETS



    (Unaudited, in thousands, except per share data)




    March 31,




    December 31,



    2022



    2021




    ASSETS


    Current assets:


    Cash and cash equivalents


    $


    21,606


    $


    29,972


    Restricted cash


    203


    203


    Accounts receivable, less allowance of $2,236 and $2,154 as of March 31, 2022 and

    December 31, 2021, respectively


    5,180


    4,238


    Inventory


    14,611


    12,929


    Prepaid expenses and other current assets


    2,183


    2,012


    Total current assets


    43,783


    49,354


    Property, plant, and equipment, net


    1,244


    1,067


    Goodwill


    2,926


    2,926


    Right of use asset


    2,058


    1,717


    Other assets


    231


    220


    Total assets


    $


    50,242


    $


    55,284




    LIABILITIES, REDEEMABLE PREFERRED STOCK AND

    STOCKHOLDERS’ EQUITY


    Current liabilities:


    Accounts payable


    $


    4,643


    $


    3,309


    Accrued liabilities


    6,027


    8,276


    Deferred revenue, current portion


    2,442


    2,259


    Total current liabilities


    13,112


    13,844


    Deferred revenue


    303


    329


    Warranty accrual


    512


    521


    Non current term loans, net of discount


    13,666


    13,603


    Non current operating lease liability


    1,662


    1,449


    Other liabilities


    387


    330


    Total liabilities


    29,642


    30,076


    Redeemable preferred stock:


    Series G Preferred stock, par value $0.001 per share


    —


    —


    Total redeemable preferred stock


    —


    —


    Stockholders’ equity:


    Series F Preferred stock, par value $0.001 per share


    —


    34


    Common stock, par value $0.001 per share


    155


    154


    Additional paid-in capital


    293,419


    293,177


    Accumulated other comprehensive loss


    (664)


    (623)


    Accumulated deficit


    (272,310)


    (267,534)


    Total stockholders’ equity


    20,600


    25,208


    Total liabilities, redeemable preferred stock and stockholders’ equity


    $


    50,242


    $


    55,284



    BIOLASE, INC.



    CONSOLIDATED STATEMENTS OF CASH FLOWS



    (Unaudited, in thousands)




    Three Months Ended




    March 31,



    2022



    2021




    Cash Flows from Operating Activities:


    Net loss


    $


    (4,776)


    $


    (6,901)


    Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:


    Depreciation and amortization


    117


    85


    Provision for bad debts


    84


    (106)


    Provision for sales returns


    60


    90


    Inventory write-offs and disposals


    —


    (20)


    Amortization of discount on lines of credit


    24


    42


    Amortization of debt issuance costs


    43


    95


    Patent litigation mark-to-market


    —


    89


    Stock-based compensation


    209


    928


    Changes in operating assets and liabilities:


    Accounts receivable


    (1,085)


    (193)


    Inventory


    (1,682)


    (700)


    Prepaid expenses and other current assets


    (186)


    558


    Accounts payable and accrued liabilities


    (986)


    (488)


    Deferred revenue


    157


    22


    Net cash and cash equivalents used in operating activities


    (8,021)


    (6,499)




    Cash Flows from Investing Activities:


    Purchases of property, plant, and equipment


    (304)


    (8)


    Net cash and cash equivalents used in investing activities


    (304)


    (8)




    Cash Flows from Financing Activities:


    Proceeds from the issuance of common stock, net of offering costs


    —


    13,292


    Payments of equity offering costs


    —


    (6)


    Proceeds from the exercise of common stock warrants


    —


    16,539


    Net cash and cash equivalents provided by financing activities


    —


    29,825


    Effect of exchange rate changes


    (41)


    (148)


    (Decrease) increase in cash, cash equivalents and restricted cash


    (8,366)


    23,170


    Cash, cash equivalents and restricted cash, beginning of period


    30,175


    17,876


    Cash, cash equivalents and restricted cash, end of period


    $


    21,809


    $


    41,046


    Supplemental cash flow disclosure:


    Cash paid for interest


    $


    377


    $


    448


    Cash received for interest


    $


    10


    $


    14


    Cash paid for income taxes


    $


    26


    $


    10


    Cash paid for operating leases


    $


    66


    $


    66


    Non-cash settlement of liability


    $


    —


    $


    510


    Non-cash right-of-use assets obtained in exchange for lease obligation


    $


    444


    $


    —


    Deemed dividend on preferred stock


    $


    217


    $


    532


    Non-GAAP Financial Measures

    In addition to the financial information prepared in conformity with generally accepted accounting principles in the U.S. (“GAAP”), this press release includes certain historical non-GAAP financial information. Management believes that these non-GAAP financial measures assist investors in making comparisons of period-to-period operating results and that, in some respects, these non-GAAP financial measures are more indicative of the Company’s ongoing core operating performance than their GAAP equivalents.

    Adjusted EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization, loss on patent litigation settlement, stock-based and other non-cash compensation, and allowance for doubtful accounts. Management uses Adjusted EBITDA in its evaluation of the Company’s core results of operations and trends between fiscal periods and believes that these measures are important components of its internal performance measurement process. Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Further, the non-GAAP financial measures presented by the Company may be different from similarly named non-GAAP financial measures used by other companies.



    BIOLASE, INC.



    Reconciliation of GAAP Net Loss to Adjusted EBITDA and



    GAAP Net Loss Per Share to Adjusted EBITDA Per Share



    (Unaudited, in thousands, except per share data)




    Three Months Ended




    March 31,



    2022



    2021


    GAAP net loss attributable to common stockholders


    $


    (4,993)


    $


    (7,433)


    Deemed dividend on convertible preferred stock


    217


    532


    GAAP net loss


    $


    (4,776)


    $


    (6,901)


    Adjustments:


    Interest expense, net


    433


    575


    Income tax provision


    17


    60


    Depreciation and amortization


    117


    85


    Change in allowance for doubtful accounts


    84


    (106)


    Loss on patent litigation settlement


    —


    89


    Stock-based and other non-cash compensation


    209


    928


    Adjusted EBITDA


    $


    (3,916)


    $


    (5,270)


    GAAP net loss attributable to common stockholders

    per share, basic and diluted


    $


    (0.81)


    $


    (1.38)


    Deemed dividend on convertible preferred stock


    0.04


    0.10


    GAAP net loss per share, basic and diluted


    $


    (0.77)


    $


    (1.28)


    Adjustments:


    Interest expense, net


    0.07


    0.11


    Income tax provision


    —


    0.01


    Depreciation and amortization


    0.02


    0.02


    Change in allowance for doubtful accounts


    0.01


    (0.02)


    Loss on patent litigation settlement


    —


    0.02


    Stock-based and other non-cash compensation


    0.03


    0.17


    Adjusted EBITDA per share, basic and diluted


    $


    (0.64)


    $


    (0.97)

    Cision
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    SOURCE BIOLASE, Inc.

    PR Newswire
    May 12, 2022 – 1:05 PM PDT