NASDAQ$VCEL

Vericel Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported product revenues of $20.0 million for the second quarter.

Vericel Corporation reported a total net product revenue of $20.0 million for Q2 2020, a decrease compared to $26.2 million in Q2 2019. The company experienced a net loss of $8.3 million, or $0.18 per share, compared to a net loss of $19.8 million, or $0.45 per share, in the same quarter of the previous year. As of June 30, 2020, the company's cash and investments totaled $80.9 million with no debt.

  • Total net product revenues were $20.0 million, compared to $26.2 million in the second quarter of 2019.
  • MACI® net revenue was $15.1 million, while Epicel® net revenue reached $4.9 million.
  • Gross margin was 57%, compared to 66% in the second quarter of 2019.
  • Net loss was $8.3 million, or $0.18 per share, compared to $19.8 million, or $0.45 per share, in the second quarter of 2019, including a $17.5 million upfront license payment.

Headline financials

Total Revenue

$20M

Previous: $26.2M-23.5%
EPS (adj)

-$0.18

Previous: -$0.05-260.0%
Capital Expenditures

-$1.19M

Previous: -$1.22M+3.1%
Free Cash Flow

-$9.46M

Previous: -$21M+55.0%
Net Income

-$8.27M

Previous: -$19.8M+58.2%
Operating Income

-$8.36M

Previous: -$20.2M+58.6%
Gross Profit

$11.4M

Previous: $17.1M-33.7%
Cash & Equivalents

$55.7M

Previous: $14M+299.0%
Total Assets

$147M

Previous: $126M+16.6%
Stock-Based Comp

$4.38M

Previous: $4.18M+4.6%

Revenue & EPS history

Vericel · Revenue · Quarterly

$20M

Q2 2020-23.5%vs Q2 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Vericel · $20M total across 2 segments · Q2 2020

  • MACI
    $15.1M-27.4%
  • Epicel
    $4.9M-7.5%

Forward guidance

Vericel anticipates MACI revenue growth over Q3 2019, sequential Epicel revenue increase over Q2 2020 to recent historical levels, and revenue recognition from the first NexoBrid delivery under the BARDA contract in Q3 2020.

Tailwinds

  • MACI revenue growth expected over the third quarter of 2019.
  • Epicel revenue is anticipated to increase sequentially over the second quarter of 2020.
  • Epicel revenue expected to return to recent historical levels.
  • Revenue recognition is expected in connection with the first delivery of NexoBrid under the BARDA procurement contract.
  • The delivery of NexoBrid is scheduled to take place later this quarter.

Headwinds

  • Uncertainties remain due to the ongoing pandemic.
  • COVID-19 restrictions on elective surgeries may impact results.
  • Potential fluctuations in sales and volumes may affect results of operations.
  • The pace with which state and local governments lift restrictions on the performance of elective surgical procedures is uncertain.
  • Patients who have cancelled or postponed surgeries may not reschedule cases in a timely fashion, or at all.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+1.4%

Avg return

Earnings day

+2.8%

Avg return

5 days after

+2.2%

Avg return

30 days after

47%

30 / 64 earnings

Positive

+48.1%

Q3 2018

Best reaction

-30.0%

Q2 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.6%-10.4%-1.4%
Q4 2025+1.7%-7.3%-20.9%
Q3 2025+4.6%+10.3%-2.6%
Q1 2025+3.2%+7.8%+7.0%
Q4 2024-6.1%-3.2%-15.8%
Q3 2024+12.4%+16.3%+17.3%
Q2 2024-5.7%-7.5%+2.2%
Q1 2024-1.8%-2.0%-10.4%
Q4 2023-6.5%-7.0%+8.8%
Q3 2023-11.2%-7.0%-7.3%
Q2 2023-8.9%-9.2%-3.5%
Q1 2023+0.5%+2.8%+6.5%
Q4 2022+6.9%+6.6%+1.6%
Q3 2022-2.8%+0.2%-0.3%
Q2 2022-4.3%-6.2%-28.7%
Q1 2022-9.1%-18.9%-13.1%
Q4 2021+21.9%+26.4%+11.2%
Q3 2021-2.7%-3.0%-10.6%
Q2 2021-2.1%-4.5%+9.0%
Q1 2021-10.2%-15.9%-5.8%
Q4 2020+0.4%+1.7%+9.0%
Q3 2020+6.0%+17.7%+18.5%
Q2 2020-9.8%-5.0%-5.5%
Q1 2020+5.6%+8.3%+3.9%
Q4 2019-20.4%-18.3%-46.9%
Q3 2019+15.3%+15.7%+12.9%
Q2 2019+2.4%+1.9%-8.3%
Q1 2019-2.5%-3.6%-16.8%
Q4 2018-7.4%-3.5%-13.6%
Q3 2018+48.1%+39.6%+53.3%
Q2 2018+25.6%+27.1%+36.5%
Q1 2018+6.0%+5.6%+0.4%
Q4 2017+40.1%+38.3%+33.5%
Q3 2017-7.0%-5.8%+14.0%
Q2 2017+11.7%+21.7%+48.3%
Q1 2017+0.0%+3.9%+5.9%
Q4 2016-1.7%+0.0%-6.9%
Q3 2016-2.3%+4.7%+9.3%
Q2 2016-5.5%-7.7%-5.5%
Q1 2016+11.5%
Q4 2015+4.8%
Q3 2015-9.7%
Q2 2015+4.3%
Q1 2015-2.5%
Q4 2014+2.9%
Q3 2014+3.6%
Q2 2014-0.3%
Q1 2014+0.5%
Q4 2013-12.7%
Q3 2013-2.2%
Q2 2013-30.0%
Q1 2013+0.0%
Q4 2012-6.3%
Q3 2012-4.0%
Q2 2012-6.5%
Q1 2012-0.8%
Q4 2011+1.0%
Q3 2011+3.1%
Q2 2011+8.3%
Q1 2011+4.7%
Q4 2009+4.7%
Q3 2010+35.3%
Q2 2010+0.0%
Q1 2010+1.3%

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