ADMEDUS LTD ASX Market Announcements Australian Securities Exchange Limited Level 10, 20 Bond Street
SYDNEY NSW 2000
Admedus Limited Quarterly report - Appendix 4C for period to 30 June 2017Please refer to the attached 'Appendix 4C' for details of cash flow results for the fourth quarter to 30 June 2017 for the Admedus Group. Based on interim, unaudited financial results.
HIGHLIGHTS- Quarterly sales of $5.1M taking revenue for first 12 months to $22.0M up ~58% on the prior corresponding period (PCP) and exceeding annual forecast expectations by ~$1.0M.
- Cash balance at end of quarter $11.2M (vs $14.4M as at 31 March, 2017).
- CardioCel ® 3D - first sales and successful human implants conducted. Announcement of expanded access programme ahead of product's commercial introduction.
- New Royal Adelaide Hospital official opening confirmed for 5 September, 2017 - set to positively impact infusion business sales.
- Appointment of David St Denis as Chief Operating Officer.
ADAPT® sales for the quarter reached $1.8M taking year to date (YTD) growth to
~30% PCP. New US sales team structure organized around Single Product Focus with separate and dedicated sales teams focused on VascuCel® and CardioCel® products enhanced by independent channel representation and corporate account sales. Together these are expected to materially impact on ADAPT® revenues in the US over the coming 12 months and beyond. The sales trajectory across all regions (emerging markets, Europe, US) continues to build momentum as our new sales teams, metrics, marketing strategy and management become fully operational.
Team motivation is high and we are actively targeting competitor accounts.
During the quarter, CardioCel® 3D received FDA approval, an important milestone for Admedus as we apply the benefits of ADAPT® processing to more complex applications. We are already working with four key reference centers in the United States and this will increase to ten as we introduce the product in a phased and prudent way in 2017 working closely with physicians.
Our infusion business continued to perform strongly in the quarter with sales of
$3.2M taking YTD growth to ~75% PCP. Record consumable sales (i.e. excluding capital pump sales) have been recorded in June with sales reaching $1.5M as first consumables orders are received for the new Royal Adelaide Hospital (nRAH), due to open early September 2017.
The appointment of experienced healthcare executive David St. Denis as Chief Operating Officer based in Minneapolis provides an important impetus to our commercial expansion efforts. Among his responsibilities, St. Denis will be driving the utilisation of new marketing tools, a sales model, and the CRM implementation and analysis we have recently established.
QUARTERLY FINANCIAL HIGHLIGHTSFourth quarter revenues of $5.1M are ~28% above PCP and take full year revenues to $22.0M, ~60% ahead of PCP, and exceeding full year targets by ~$1.0M.
Cash flow generation during the quarter saw the overall cash position finish at
$11.2M as at 30 June 2017. Improved collections from customers in the quarter and receipt of the R&D refund were offset by higher than anticipated operating expenses as a result of higher R&D spend (3D, TAVR project), manufacturing costs (higher inventory due to lower consumption, back orders and write-offs) and staff costs (new hires). These were partially offset by lower than anticipated advertising and marketing costs.
CHANGE OF FINANCIAL YEARAdmedus intends, subject to regulatory approvals, to change its financial year from 30 June to 31 December effective 1 January 2018.
This change more closely aligns the Company's reporting period with its global business sales cycles, assisting with forecasting, cash flow management and investment decisions.
FULL YEAR RESULTSThe outlook for the full year currently remains unchanged to that provided in the half year results presentation lodged with the ASX on 24 February, 2017.
Yours faithfully
Mark Ziirsen
Chief Financial Officer
For more information, please contact:
Admedus Limited Barb Ferres T: +61 7 3152 3216 E: communications@admedus.com | Signal Leadership Communication Inc. Bob Pickard T: +1 (647) 822 1000 E: bob.pickard@signaleadership.com |
About Admedus Limited
Admedus (ASX:AHZ) is a specialist healthcare company. Our focus is on investing in and developing next generation technologies with world class partners, acquiring strategic assets to grow product and service offerings and expanding revenues from our existing, profitable medical sales and distribution business. The company has assets from research & development through clinical development as well as sales, marketing and distribution.
Twitter: @Admedus
Facebook: www.facebook.com/pages/Admedus Website: www.admedus.com
Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B
Appendix 4C+Rule 4.7B
Quarterly report for entities subject to Listing Rule 4.7BIntroduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16
Name of entity | ||
Admedus Limited | ||
ABN | Quarter ended ("current quarter") | |
35 088 221 078 | 30 June 2017 | |
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (12 months) $A'000 | |
1. | Cash flows from operating activities | 4,524 | 20,150 |
1.1 | Receipts from customers | ||
1.2 | Payments for | (653) | (1,746) |
(a) research and development | |||
(b) product manufacturing and operating costs | (2,082) | (12,421) | |
(c) advertising and marketing | (473) | (1,198) | |
(d) leased assets | (4,357) | (15,956) | |
(e) staff costs | |||
(f) administration and corporate costs | (1,590) | (5,855) | |
1.3 | Dividends received (see note 3) | 26 | 160 |
1.4 | Interest received | ||
1.5 | Interest and other costs of finance paid | (13) | (60) |
1.6 | Income taxes paid | 1,652 | 4,493 |
1.7 | Government grants and tax incentives | ||
1.8 | Other (provide details if material) | (184) | (164) |
1.9 | Net cash from / (used in) operating activities | (3,148) | (12,596) |
- Cash flows from investing activities
Payments to acquire:
property, plant and equipment
(31) (194)
businesses (see item 10) (2,400)
investments
intellectual property (75)
other non-current assets
Proceeds from disposal of:
property, plant and equipment
+ See chapter 19 for defined terms
1 September 2016 Page 1
Admedus Ltd. published this content on 26 July 2017 and is solely responsible for the information contained herein.
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