WINNIPEG, March 5, 2013 /CNW/ - IMRIS Inc. (NASDAQ: IMRS; TSX: IM)
("IMRIS" or the "Company") today reported its results for the fourth
quarter and full year of 2012. All figures are reported in US dollars.
Fourth quarter order bookings of $24 million contribute to record full
year 2012 orders of $89 million
Backlog increases 29% in 2012 to $123 million at December 31, 2012
Quarterly revenues of $20 million second highest in Company's history
Operational leadership team strengthened with new appointments
First VISIUS Surgical Theatre in Japan begins clinical operation
During the fourth quarter of 2012, IMRIS received orders for two VISIUS
Surgical Theatres bringing total order bookings in 2012 to $89 million
including ten new VISIUS Surgical Theatre sales and fourteen service
contracts. Revenues were $20.1 million in the quarter compared with
$14.7 million in the fourth quarter of 2011 and for all of 2012 were
$52.4 million compared with $51.8 million in the same period in 2011.
Net loss in the fourth quarter was $6.6 million, compared with $5.0
million in the fourth quarter of 2011. Net loss in 2012 was $27.8
million compared with $20.9 million during the same period in 2011.
($000's except per share amounts)
3 months ended Dec 31
Year ended Dec 31
Gross profit as % of sales
Basic and diluted loss per share
Cash, restricted cash & accounts receivable
Fourth Quarter and Annual Results:
Total revenues increased by 37% to $20.1 million in the fourth quarter
of 2012 compared with $14.7 million in the fourth quarter of 2011.
VISIUS Surgical Theatre delivery activities increased over the same
period in 2011 resulting in a $4.8 million increase in system revenue
compared to the same quarter in 2011. Also contributing to the
improvement in fourth quarter results were service contract revenues
which increased 61% to $1.6 million as a result of an increase in the
installed base of VISIUS Surgical Theatres which have transitioned from
warranty to service programs.
For the year ended December 31, 2012, total revenues were $52.4 million
compared with $51.8 million in 2011. Contributing to the increase in
2012, were service contract revenues which increased by 55% to $5.1
million reflecting a larger installed base of VISIUS Surgical Theatres
in 2012 versus 2011. Revenues for all of 2012 from the installation of
VISIUS Surgical Theatres were slightly lower at $47.3 million compared
with $48.5 million in 2011, reflecting a product mix with a slightly
higher average sale price per project in 2011.
Gross profit was $7.0 million in the fourth quarter compared with $4.8
million in Q4 2011. The fourth quarter 2012 gross profit as a
percentage of sales was 34.8% compared to 32.9% in Q4 2011. The higher
year-over-year gross profit performance in the fourth quarter was
attributable to increased installations and higher margined system
installations. Gross profit for the twelve months ended December 31,
2012 was marginally higher at $17.8 million compared with $17.7 million
during the same period in 2011. As expected, full year 2012 gross
profit as a percentage of sales at 34.0% was comparable to performance
in 2011 which was 34.1%.
Operating expenses continue to focus on investment to grow the business.
Total operating expenses increased by $7.1 million to $45.3 million in
2012. Research and development included higher expenses of $4.4 million
primarily for the commercialization of IMRIS's image guided surgical
robotics system, intraoperative CT and MR guided radiation therapy
product. Restructuring expenses for the relocation of the Company's
operations from Winnipeg to Minneapolis added $1.4 million. Customer
support and operations expense increased from a year earlier, primarily
to support growth in the business. Amortization increased by $0.5
million to $4.1 million, reflecting net additions in fixed assets.
Total operating expenses in the fourth quarter of 2012 increased by
$3.2 million to $13.3 million, with the increase attributable to the
same general factors that resulted in higher full year 2012 operating
Adjusted EBITDA and Operating Loss
Adjusted EBITDA in the fourth quarter of 2012 was negative $4.8 million
compared with negative $4.1 million in the fourth quarter of 2011. For
all of 2012 adjusted EBITDA was negative $21.9 million versus $15.7
million in 2011. Operating loss was $6.3 million in the fourth quarter
of 2012 and $27.5 million for the twelve months ended December 31,
2012. This compares with operating losses of $5.3 million and $20.6
million in the fourth quarter and twelve months of 2011 respectively.
The year over year changes in fourth quarter adjusted EBITDA and
operating losses are due higher operating expenses partially offset by
higher gross profit. The increase in negative adjusted EBITDA and
operating losses in full year 2012 is due to higher operating expenses
primarily related to research and development, relocation and higher
customer support and operations expense.
Net loss for the fourth quarter of 2012 was $6.6 million, compared with
$5.0 million in the fourth quarter of 2011. The higher net losses in
the fourth quarter reflect increased operating expenses, partially
offset by higher gross profit arising from increased installation
activity in the Q4 2012 period. For all of 2012, net loss was $27.8
million compared with $20.9 million in 2011. The higher net losses in
full year 2012 are attributable to increased operating expenses.
Liquidity and Capital Resources
Cash and restricted cash at December 31, 2012 totaled $21.0 million. In
addition, the Company had accounts receivable of $11.1 million. These
funds, together with ongoing operating cash flow, will be used to fund
the Company's working capital and general corporate purposes.
During the fourth quarter of 2012, $24.4 million in new orders were
received and $20.1 million of backlog was converted into revenues. The
change in the US dollar versus the foreign currencies of the orders in
backlog resulted in a $0.3 million increase in the value of the
backlog. Backlog at December 31, 2012 was $122.5 million and comprised
of $69.2 million of system orders and $53.3 million in service
Maurice Holloman appointed Executive Vice President Operations - In December 2012, Maurice Holloman joined IMRIS as Executive Vice
President Operations. He has extensive leadership background in Project
Engineering, Site Operations Management, Plant Management, Supply Chain
Management and Operations. Prior to joining IMRIS he was with Medtronic
since 2005 in senior operational leadership positions, and Novartis
Nutrition Corporation as Director, Supply Chain Operations.
Mike Fritts appointed Executive Vice President Global Customer Service - In February 2013, Mike Fritts joined IMRIS as Executive Vice President
Global Service. Mr. Fritts comes to IMRIS with over 25 years of medical
device industry experience, most of which were in senior leadership
roles at GE Healthcare, including head of interventional MR for GE.
Prior to joining IMRIS Mike was the Vice President of Technical
Operations for Medicis.
Japan's University of Tsukuba Hospital Performs Initial Cases Using VISIUS®
Surgical Theatre - Earlier this year, neurosurgeons at University of Tsukuba Hospital
performed initial tumor removal cases in the hospital's recently
completed VISIUS Surgical Theatre. In the first case, following
initial resection, an intraoperative scan performed within the VISIUS
Surgical Theatre identified residual tumor which was then removed. In
the second case, the intraoperative scan confirmed that the tumor
resection was complete. The VISIUS Surgical Theatre at Tsukuba
University Hospital is the first installation in Japan and an important
milestone for IMRIS's growth and expansion in this important medical
For 2013, the Company's expectation is for another year of improved
order bookings, with the strongest performance coming from the United
States and the Asia-Pacific markets. Annual revenues, comprised of
both systems and service, are expected to be in the range of $65
million to $72 million. The Company anticipates that Q1 2013 revenues
will be in the $5 million to $7 million range, and similar to prior
years, the strongest quarterly revenue performance will once again
occur in the second half of 2013.
Strong increases in gross profit are expected in 2013, including
significantly higher gross profit as a percentage of sales, which is
forecast to be above 40%. Quarterly gross profit as a percentage of
sales will vary depending on the underlying system installations in the
Carefully managing expenses is a priority in 2013, and departmental cash
operating expenses are targeted to decrease by $4 million from 2012
levels to approximately $34 million. Not included in this amount is
$4 million associated with the relocation of the Company's facility
from Winnipeg to Minneapolis and a charge of approximately $7 million
to research and development which is described further below.
Total research and development expenses are anticipated to be
approximately $17 million, including an exceptional research and
development charge of $7 million arising from the completion of the
collaborative arrangement we entered into with Princess Margaret
Hospital in October 2011 for their clinical MR-guided radiation therapy
system. The MR-guided radiation therapy system will be used to
conduct research at the hospital in order to clinically validate the
system and develop a commercially viable version of the platform. The
$7 million charge includes $5 million of deferred costs incurred in
prior year periods as part of the development of the clinical site and
has been recorded in prepaid expenses and other assets. These costs
will be deferred until the installation is complete and then charged as
research and development when clinical validation can begin.
Research and development will continue to be a priority in 2013 in
support of commercializing the SYMBIS Surgical System, the MR Guided
Radiation Therapy System, as well as continued enhancements to the
VISIUS Surgical Theatre.
Taken together, total cash and non-cash operating expenses in 2013 are
expected to be approximately $51 million, as summarized in the table
Cash operating expenses
Minneapolis relocation costs
Research & Development charge
Research & Development charge (non-cash)
Stock Based Compensation (non-cash)
Total operating expenses
Cash requirements in 2013 include funding for operations, capital
investments related to robotics, VISIUS iCT and MRgRT test labs, the
costs related to the U.S. relocation and prepaid development costs
associated with collaborative arrangements. Total capital
expenditures for the year are expected to be in the range of $6 million
to $8 million this year.
The Company's full financial statements as well as management's
discussion and analysis will be available at www.sedar.com, www.sec.gov and www.imris.com.
Management will host a conference call to discuss the results at 5:00 pm ET today, Tuesday, March 5, 2012. Following management's presentation, there will be a
question-and-answer session for analysts and institutional investors.
To participate in the teleconference, please call 416-644-3415 or 877-974-0445. To access the live audio webcast, please visit IMRIS's website at www.imris.com. A taped rebroadcast will be available to listeners following the call
until midnight (ET) on March 12, 2013. To access the rebroadcast,
please call 416-640-1917 or 877-289-8525 and enter passcode 4592325#.
The webcast will also be archived on IMRIS's website.
IMRIS (NASDAQ: IMRS; TSX: IM) is a global leader in providing image
guided therapy solutions through its VISIUS Surgical Theatre - a
revolutionary, multifunctional surgical environment that provides
unmatched intraoperative vision to clinicians to assist in decision
making and enhance precision in treatment. VISIUS Surgical Theatres
serve the neurosurgical, cardiovascular and cerebrovascular markets and
have been selected by leading medical institutions around the world.
For more information, visit www.imris.com.
This press release may contain or refer to forward-looking information
based on current expectations. In some cases, forward-looking
statements can be identified by terminology such as "anticipate",
"may", "expect", "believe", "prospective", "continue" or the negative
of these terms or other similar expressions concerning matters that are
not historical facts. These statements should not be understood as
guarantees of future performance or results. Such statements involve
known and unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements to be materially different
from those implied by such statements. Although such statements are
based on management's reasonable assumptions, there can be no assurance
that actual results will be consistent with such statements.
Forward-looking statements are subject to significant risks and
uncertainties, and other factors that could cause actual results to
differ materially from expected results. These forward-looking
statements are made as of the date hereof and we assume no
responsibility to update or revise them to reflect new events or
1 Not meaningful.
2 Adjusted EBITDA is defined as earnings before interest income, stock
based compensation, gain on asset sale, foreign exchange, embedded
derivatives, income taxes, and amortization.
3 See "Non-GAAP Financial Measures" in the Company's 2012 MD&A for
further information on backlog.
PDF available at: http://stream1.newswire.ca/media/2013/03/05/20130305_C2511_DOC_EN_24310.pdf
PDF available at: http://stream1.newswire.ca/media/2013/03/05/20130305_C2511_DOC_EN_24311.pdf
SOURCE: IMRIS Inc.
For further information:
Executive Vice President Finance and
Administration and Chief Financial Officer
Director Investor Relations
& Corporate Communications