ATLANTA, Aug. 06, 2024 (GLOBE NEWSWIRE) — Alimera Sciences, Inc. (Nasdaq: ALIM) (“Alimera”), a global pharmaceutical company whose mission is to be invaluable to patients, physicians and partners concerned with retinal health and maintaining better vision longer, today announced financial results for the second quarter of 2024. Alimera will not host a conference call today due to the recently announced agreement to be acquired by ANI Pharmaceuticals, Inc. (“ANI”).
“We are pleased with our strong second quarter results, in line with our expectations, as we completed the integration of YUTIQ into our U.S. business and delivered $50 million in revenue in the first half this year,” said Rick Eiswirth, Alimera’s President and Chief Executive Officer. “Further, we believe the acquisition agreement entered into with ANI Pharmaceuticals late in the second quarter is a testament to the value we have created at Alimera, and we look forward to completing the transaction later this quarter.”
Key Second Quarter Financial Highlights:
Second Quarter Corporate Highlights:
Second Quarter 2024 Financial Results
Net Revenue
Consolidated global net revenue was up 54% to approximately $27 million for Q2 2024, compared to $17.5 million for Q2 2023, driven by the addition of YUTIQ in the U.S. segment, as well as increased sales volumes in the International segment of the business.
U.S. net revenue increased 48% to approximately $17.6 million for Q2 2024 compared to U.S. net revenue of $11.9 million for Q2 2023. The increase was primarily driven by net revenue from YUTIQ, which Alimera acquired in May 2023. U.S. end user demand grew by 6% in Q2 2024 to 2,189 units vs Q2 2023 on a pro-forma basis.
International net revenue increased 65% to approximately $9.4 million in Q2 2024, compared to approximately $5.7 million in Q2 2023. The increase in international net revenue in Q2 2024 was driven both by increased stocking of our international distributors and growth in end user demand. International end user demand grew 6% in Q2 2024 to 1,632 units vs Q2 2023.
Operating Expenses
Total operating expenses were approximately $23.2 million for Q2 2024, compared to approximately $16.3 million for Q2 2023. The increase was primarily attributable to $2.2 million in general and administrative expenses related to the merger agreement with ANI Pharmaceuticals, Inc., $1.8 million of additional sales and marketing expenses driven by expansion of our commercial infrastructure to support selling two products in the U.S., $1.2 million in additional amortization expense attributable to the YUTIQ acquisition in May 2023, and $1.2 million in additional stock-based compensation expense.
Cash and Cash Equivalents
As of June 30, 2024, Alimera had cash and cash equivalents of approximately $10.8 million, compared to $14.3 million at March 31, 2024 and $12.1 million at December 31, 2023. During the second quarter of 2024, the Company made $1.9 million of accrued licensor payments to EyePoint Pharmaceuticals, Inc. related to the acquisition of YUTIQ in May 2023, and $2.4 million of accrued exit fee payments as required by the Company’s existing loan agreements with SLR Capital Partners, LLC due to the achievement of certain revenue milestones.
About Alimera Sciences, Inc.
Alimera Sciences is a global pharmaceutical company whose mission is to be invaluable to patients, physicians and partners concerned with retinal health and maintaining better vision longer. For more information, please visit www.alimerasciences.com.
Non-GAAP Financial Measures
This press release presents Adjusted EBITDA, as defined below, which is a non-GAAP financial measure. Alimera uses this measure to supplement the financial information presented on a GAAP basis. Alimera believes that excluding certain items from its GAAP financial results allows management to better understand its ongoing operations and analyze its financial performance from period to period and provides meaningful supplemental information to its investors.
Alimera defines “Adjusted EBITDA” as earnings before interest, taxes, depreciation, amortization, stock-based compensation expenses, net unrealized gains and losses from foreign currency exchange transactions, gains on extinguishment of debt, preferred stock dividends, severance expenses, expenses incurred with Merger Agreement, and change in fair value of warrant asset.
Alimera believes that Adjusted EBITDA, when taken together with its corresponding GAAP financial measure, provides meaningful supplemental information to its investors regarding its performance by excluding certain items that may not be indicative of its business, results of operations or outlook. Accordingly, Adjusted EBITDA for the three months ended June 30, 2024, and 2023, together with a reconciliation to GAAP net income or loss, its most directly comparable GAAP financial measure, has been presented in the table entitled “Reconciliation of GAAP Loss to Non-GAAP Adjusted EBITDA.”
This non-GAAP financial measure may not be comparable to similarly titled measures reported by other companies, including companies in Alimera’s industry, because not all companies calculate Adjusted EBITDA in an identical manner or may use other financial measures to evaluate their performance. Therefore, this non-GAAP financial measure may be limited in usefulness for comparison between companies.
The presentation of this non-GAAP financial measure is not intended to be considered in isolation from or as a substitute for other financial performance measures prepared in accordance with GAAP and should be read only in conjunction with financial information presented on a GAAP basis. The principal limitation of this non-GAAP financial measure is that it excludes significant elements required by GAAP to be recorded in Alimera’s financial statements. In addition, this non-GAAP financial measure is subject to inherent limitations because it reflects the exercise of judgment by management. Investors are encouraged not to rely on any single financial measure to evaluate Alimera’s business.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, Alimera’s expectations with respect to growth opportunities, demand for its product, its business strategy, future operations, future financial position including the timeline for achieving positive Adjusted EBITDA, future revenues, projected costs, prospects, plans and objectives. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “contemplates,” “predict,” “project,” “target,” “likely,” “potential,” “continue,” “ongoing,” “will,” “would,” “should,” “could,” or the negative of these terms and similar expressions or words, identify forward-looking statements. Forward-looking statements are based on current expectations and involve inherent risks and uncertainties (some of which are beyond Alimera’s control), including factors that could delay, divert or change any of them, and could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Alimera’s most recently filed Annual Report on Form 10-K, most recently filed Quarterly Report on Form 10-Q, and any of Alimera’s subsequent filings with the U.S. Securities and Exchange Commission (SEC) and available on the SEC’s website at www.sec.gov.
All forward-looking statements contained in this press release are expressly qualified by the cautionary statements contained or referred to herein. Alimera cautions investors not to rely on the forward-looking statements Alimera makes or that are made on its behalf as predictions of future events. These forward-looking statements speak only as of the date of this press release. Alimera undertakes no obligation to publicly update or revise any of the forward-looking statements made in this press release, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Additional Information and Where to Find It
In connection with the Merger, Alimera has filed a preliminary proxy statement and intends to file a definitive proxy statement. The definitive proxy statement and proxy card will be delivered to Alimera’s stockholders in advance of the special meeting relating to the proposed acquisition. Each of ANI and Alimera also plan to file other relevant materials with the SEC in connection with the Merger. INVESTORS IN AND SECURITY HOLDERS OF ALIMERA ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT IN ITS ENTIRETY WHEN IT BECOMES AVAILABLE, AS WELL AS ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR FURNISHED OR WILL BE FILED OR WILL BE FURNISHED BY EACH OF ANI AND ALIMERA WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER, RELATED MATTERS AND THE PARTIES TO THE MERGER. Materials filed by ANI and Alimera can be obtained free of charge at the SEC’s website, www.sec.gov. In addition, materials filed by ANI can be obtained free of charge at ANI’s website, www.anipharmaceuticals.com, and materials filed by Alimera can be obtained free of charge at Alimera’s website, www.alimerasciences.com.
| For investor inquiries: Scott Gordon for Alimera Sciences scottg@coreir.com |
For media inquiries: Jules Abraham for Alimera Sciences julesa@coreir.com |
| ALIMERA SCIENCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (In thousands, except share and per share data) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 10,828 | $ | 12,058 | ||||
| Restricted cash | 33 | 32 | ||||||
| Accounts receivable, net | 37,079 | 34,545 | ||||||
| Prepaid expenses and other current assets | 4,013 | 3,909 | ||||||
| Inventory | 3,455 | 1,879 | ||||||
| Total current assets | 55,408 | 52,423 | ||||||
| Property and equipment, net | 2,278 | 2,466 | ||||||
| Right-of-use assets, net | 996 | 1,124 | ||||||
| Intangible assets, net | 91,587 | 97,355 | ||||||
| Deferred tax asset | 101 | 104 | ||||||
| Warrant asset | 7 | 52 | ||||||
| Total assets | $ | 150,377 | $ | 153,524 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 10,208 | $ | 8,252 | ||||
| Accrued expenses | 5,708 | 6,192 | ||||||
| Accrued licensor payment | 3,677 | 7,275 | ||||||
| Finance lease obligations | 245 | 194 | ||||||
| Total current liabilities | 19,838 | 21,913 | ||||||
| Non-current liabilities: | ||||||||
| Notes payable, net of discount | 69,731 | 64,489 | ||||||
| Accrued licensor payments | 16,111 | 15,136 | ||||||
| Other non-current liabilities | 5,909 | 5,816 | ||||||
| Total liabilities | 111,589 | 107,354 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, $.01 par value — 10,000,000 shares authorized at June 30, 2024 and December 31, 2023, none issued | — | — | ||||||
| Common stock, $.01 par value — 150,000,000 shares authorized, 52,387,763 shares issued and outstanding at June 30, 2024 and 52,354,450 shares issued and outstanding at December 31, 2023 | 524 | 524 | ||||||
| Common stock warrants | 4,396 | 4,396 | ||||||
| Additional paid-in capital | 464,825 | 462,446 | ||||||
| Accumulated deficit | (428,052 | ) | (418,490 | ) | ||||
| Accumulated other comprehensive loss | (2,905 | ) | (2,706 | ) | ||||
| Total stockholders’ equity | 38,788 | 46,170 | ||||||
| Total liabilities and stockholders’ equity | $ | 150,377 | $ | 153,524 | ||||
| ALIMERA SCIENCES, INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) |
||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (In thousands, except share and per share data) | ||||||||||||||||
| Net revenue | $ | 27,000 | $ | 17,538 | $ | 50,011 | $ | 31,084 | ||||||||
| Cost of goods sold, excluding depreciation and amortization | (3,831 | ) | (2,425 | ) | (7,184 | ) | (4,453 | ) | ||||||||
| Gross profit | 23,169 | 15,113 | 42,827 | 26,631 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research, development and medical affairs expenses | 4,263 | 3,648 | 8,624 | 7,812 | ||||||||||||
| General and administrative expenses | 7,379 | 4,373 | 12,811 | 8,544 | ||||||||||||
| Sales and marketing expenses | 8,511 | 6,434 | 17,593 | 12,238 | ||||||||||||
| Depreciation and amortization | 3,093 | 1,866 | 6,178 | 2,547 | ||||||||||||
| Total operating expenses | 23,246 | 16,321 | 45,206 | 31,141 | ||||||||||||
| Loss from operations | (77 | ) | (1,208 | ) | (2,379 | ) | (4,510 | ) | ||||||||
| Interest expense and other, net | (3,153 | ) | (1,694 | ) | (6,892 | ) | (3,361 | ) | ||||||||
| Unrealized foreign currency loss, net | (125 | ) | (7 | ) | (321 | ) | (20 | ) | ||||||||
| Loss on extinguishment of debt | — | (1,079 | ) | — | (1,079 | ) | ||||||||||
| Change in fair value of common stock warrant | — | (105 | ) | — | (91 | ) | ||||||||||
| Change in fair value of warrant asset | 1 | (5,911 | ) | (45 | ) | (5,911 | ) | |||||||||
| Net loss before income taxes | (3,354 | ) | (10,004 | ) | (9,637 | ) | (14,972 | ) | ||||||||
| Income tax benefit (provision) | 43 | (25 | ) | 75 | (25 | ) | ||||||||||
| Net loss | (3,311 | ) | (10,029 | ) | (9,562 | ) | (14,997 | ) | ||||||||
| Preferred stock dividends | — | (669 | ) | — | (683 | ) | ||||||||||
| Net loss applicable to common stockholders | $ | (3,311 | ) | $ | (10,698 | ) | $ | (9,562 | ) | $ | (15,680 | ) | ||||
| Net loss per share — basic and diluted | $ | (0.06 | ) | $ | (1.32 | ) | $ | (0.18 | ) | $ | (2.07 | ) | ||||
| Weighted average shares outstanding — basic and diluted | 54,383,604 | 8,093,640 | 54,370,216 | 7,565,868 | ||||||||||||
| ALIMERA SCIENCES, INC. RECONCILIATION OF U.S. GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (UNAUDITED) |
||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (In thousands) | ||||||||||||||||
| U.S. GAAP net loss | $ | (3,311 | ) | $ | (10,029 | ) | $ | (9,562 | ) | $ | (14,997 | ) | ||||
| Adjustments to U.S. GAAP net loss: | ||||||||||||||||
| Interest expense and other, net | 3,153 | 1,694 | 6,892 | 3,361 | ||||||||||||
| Expenses incurred with Merger Agreement | 2,226 | — | 2,226 | — | ||||||||||||
| Income tax (benefit) provision | (43 | ) | 25 | (75 | ) | 25 | ||||||||||
| Depreciation and amortization | 3,093 | 1,866 | 6,178 | 2,547 | ||||||||||||
| Stock-based compensation | 1,457 | 217 | 2,302 | 442 | ||||||||||||
| Foreign currency exchange losses | 125 | 7 | 321 | 20 | ||||||||||||
| Extinguishment of debt | — | 1,079 | — | 1,079 | ||||||||||||
| Change in fair value of warrant asset | (1 | ) | 5,911 | 45 | 5,911 | |||||||||||
| Change in fair value of common stock warrant | — | 105 | — | 91 | ||||||||||||
| Severance expenses | 15 | — | 191 | — | ||||||||||||
| Non-GAAP adjusted EBITDA | $ | 6,714 | $ | 875 | $ | 8,518 | $ | (1,521 | ) | |||||||
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