A replay of the event will be available for two weeks following the conclusion of the call. To access the replay, callers in the United States can call 800-406-7325 and reference the Replay Access Code: 4650552. All international callers can dial 303-590-3030, using the same Replay Access Code. To access the webcast, please visit www.mazorrobotics.com, click ‘Investors.’
Use of Non-GAAP Measures
In addition to disclosing financial results calculated in accordance with generally accepted accounting principles in conformity with International Financial Reporting Standards (GAAP), this press release contains Non-GAAP financial measures for gross profit, operating expenses, operating loss, financing income, net income and basic and diluted earnings per share that exclude the effects of non-cash expense of amortization of intangible assets, stock-based compensation and revaluation of the fair value of the derivative instruments. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance that enhances management's and investors' ability to evaluate the company's net income and earnings per share and to compare them to historical net income and earnings per share.
The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when operating and evaluating the business internally and therefore decided to make these non-GAAP adjustments available to investors.
About Mazor
Mazor Robotics (TASE: MZOR; NASDAQCM: MZOR) is dedicated to the development and marketing of innovative surgical robots and complementary products that provide a safer surgical environment for patients, surgeons, and operating room staff. Mazor Robotics’ flagship product, Renaissance™, is a state-of-the-art surgical robotic system that enables surgeons to conduct spine surgeries in an accurate and secure manner. Mazor Robotics systems have been successfully used in the placement of over 35,000 implants in the United States and Europe. Numerous peer-reviewed publications and presentations at leading scientific conferences have validated the accuracy, usability, and clinical advantages of Mazor Robotics technology. For more information, the content of which is not part of this press release, please visit www.mazorrobotics.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal Securities laws. Forward-looking statements are statements that are not historical facts and may include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. For example, forward-looking statements are used in this press release, when we discuss our belief that our active pipeline will allow us to continue penetrating more hospitals and hospital corporations, or when we discuss expanding our sales and marketing footprint to accelerate adoption of Renaissance systems. These statements are only predictions based on Mazor's current expectations and projections about future events. There are important factors that could cause Mazor's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Those factors include, but are not limited to, the impact of general economic conditions, competitive products, product demand and market acceptance risks, reliance on key strategic alliances, fluctuations in operating results, and other factors indicated in Mazor's filings with the Securities and Exchange Commission (SEC), including those discussed under the heading "Risk Factors" in Mazor’s registration statement on Form F-1 and in subsequent filings with the SEC. For more details, refer to Mazor's SEC filings and the amendments thereto. Mazor undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in our expectations, except as may be required by law.
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Mazor Robotics Ltd. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME (in thousands, except per share data) (UNAUDITED) |
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| Nine-month period | Three-month period | ||||||||||||||||||||||||||||
| ended September 30, | ended September 30, | ||||||||||||||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
| Revenue | $ | 14,259 | $ | 9,459 | $ | 3,109 | $ | 4,109 | |||||||||||||||||||||
| Cost of revenue | $ | 3,049 | $ | 2,158 | $ | 833 | $ | 818 | |||||||||||||||||||||
| Gross profit | $ | 11,210 | $ | 7,301 | $ | 2,276 | $ | 3,291 | |||||||||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||||||||||
| Research and development | $ | 2,975 | $ | 1,989 | $ | 1,989 | $ | 727 | |||||||||||||||||||||
| Selling and Marketing | $ | 11,253 | $ | 6,487 | $ | 6,487 | $ | 2,353 | |||||||||||||||||||||
| General and administrative | $ | 1,843 | $ | 1,283 | $ | 1,283 | $ | 384 | |||||||||||||||||||||
| Total operating costs and expenses | $ | 16,071 | $ | 9,759 | $ | 5,800 | $ | 3,464 | |||||||||||||||||||||
| Loss from operations | $ | (4,861 | ) | $ | (2,458 | ) | $ | (3,524 | ) | $ | (173 | ) | |||||||||||||||||
| Financing income (expenses), net | $ | (13,475 | ) | $ | (169 | ) | $ | (33 | ) | $ | (84 | ) | |||||||||||||||||
| Loss before taxes on income | $ | (18,336 | ) | $ | (2,627 | ) | $ | (3,558 | ) | $ | (257 | ) | |||||||||||||||||
| Taxes on income | $ | 163 | $ | (20 | ) | $ | 63 | $ | (24 | ) | |||||||||||||||||||
| Net loss | $ | (18,499 | ) | $ | (2,607 | ) | $ | (3,620 | ) | $ | (233 | ) | |||||||||||||||||
| Net loss attributable to ordinary shareholders | $ | (18,499 | ) | $ | (2,607 | ) | $ | (3,620 | ) | $ | (233 | ) | |||||||||||||||||
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Net loss per share – Basic and diluted attributable to ordinary shareholders |
$ | (0.61 | ) | $ | (0.12 | ) | $ | (0.10 | ) | $ | (0.01 | ) | |||||||||||||||||
|
Weighted average common shares outstanding – Basic and diluted |
30,481 | 22,258 | 35,140 | 22,412 | |||||||||||||||||||||||||
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Mazor Robotics Ltd. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (U.S. Dollars in thousands) |
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| September 30, | December 31, | ||||||||||||
| 2013 | 2012 | ||||||||||||
| Unaudited | Audited | ||||||||||||
| Balance Sheet Data: | |||||||||||||
| Current Assets | |||||||||||||
| Cash and cash equivalents | $ | 22,984 | $ | 12,797 | |||||||||
| Investments in marketable securities | $ | 14 | $ | 4,156 | |||||||||
| Trade receivables | $ | 1,386 | $ | 1,147 | |||||||||
| Other accounts receivable | $ | 877 | $ | 680 | |||||||||
| Inventory | $ | 2,301 | $ | 1,257 | |||||||||
| Total Current Assets | $ | 27,562 | $ | 20,037 | |||||||||
| Non-Current Assets | |||||||||||||
| Prepaid lease fees and deferred expenses | $ | 159 | $ | 64 | |||||||||
| Deferred tax assets, net | $ | 95 | $ | 80 | |||||||||
| Property and equipment, net | $ | 827 | $ | 766 | |||||||||
| Intangible assets, net | $ | 167 | $ | 387 | |||||||||
|
Total Non-Current Assets |
$ | 1,248 | $ | 1,297 | |||||||||
| Total assets | $ | 28,810 | $ | 21,334 | |||||||||
| Current liabilities | |||||||||||||
| Trade payables | $ | 2,152 | $ | 1,318 | |||||||||
| Other accounts payable | $ | 3,265 | $ | 2,706 | |||||||||
| Total current liabilities | $ | 5,417 | $ | 4,024 | |||||||||
| Non-Current Liabilities | |||||||||||||
| Derivative liabilities on account of warrants | $ | - | $ | 3,990 | |||||||||
| Employee benefits | $ | 306 | $ | 199 | |||||||||
| Liabilities to the OCS | $ | - | $ | 301 | |||||||||
| Total Non-Current liabilities | $ | 306 | $ | 4,490 | |||||||||
| Total liabilities | $ | 5,723 | $ | 8,514 | |||||||||
| Equity | |||||||||||||
| Share capital | $ | 90 | $ | 73 | |||||||||
| Share premium | $ | 87,754 | $ | 58,910 | |||||||||
| Amounts allocated to share options | $ | 77 | $ | 554 | |||||||||
| Capital reserve for share-based payment transactions | $ | 3,551 | $ | 3,170 | |||||||||
| Foreign currency translation reserve | $ | 2,119 | $ | 2,119 | |||||||||
| Accumulated loss | $ | (70,505 | ) | $ | (52,006 | ) | |||||||
| Total equity | $ | 23,086 | $ | 12,820 | |||||||||
| Total liabilities and equity | $ | 28,809 | $ | 21,334 | |||||||||
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Mazor Robotics Ltd. Reconciliation of GAAP to Non-GAAP Financial Measures (U.S. Dollars in thousands, except per share data) (UNAUDITED) |
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| Nine-month period | Three-month period | ||||||||||||||||||||||||||
|
ended September 30, |
ended September 30, |
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| 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
| GAAP gross profit | $ | 11,210 | $ | 7,301 | $ | 2,276 | $ | 3,291 | |||||||||||||||||||
| Amortization of intangible assets | $ | 221 | $ | 224 | $ | 75 | $ | 73 | |||||||||||||||||||
| Stock-based compensation: | $ | 14 | $ | 7 | $ | 9 | $ | 4 | |||||||||||||||||||
| Non-GAAP gross profit | $ | 11,445 | $ | 7,532 | $ | 2,360 | $ | 3,368 | |||||||||||||||||||
| GAAP gross profit as percentage of revenues | 79 | % | 77 | % | 73 | % | 80 | % | |||||||||||||||||||
| Non-GAAP gross profit as percentage of revenues | 80 | % | 80 | % | 76 | % | 82 | % | |||||||||||||||||||
| GAAP operating expenses | $ | 16,071 | $ | 9,759 | $ | 5,800 | $ | 3,464 | |||||||||||||||||||
| Stock-based compensation: | |||||||||||||||||||||||||||
| Research and development | $ | 89 | $ | 31 | $ | 40 | $ | 20 | |||||||||||||||||||
| Selling and Marketing | $ | 326 | $ | 289 | $ | 178 | $ | 96 | |||||||||||||||||||
| General and administrative | $ | 250 | $ | 110 | $ | 90 | $ | 36 | |||||||||||||||||||
| Non-GAAP operating expenses | $ | 15,406 | $ | 9,329 | $ | 5,492 | $ | 3,313 | |||||||||||||||||||
| GAAP operating loss | $ | (4,861 | ) | $ | (2,458 | ) | $ | (3,524 | ) | $ | (173 | ) | |||||||||||||||
| Non-GAAP operating loss | $ | (4,196 | ) | $ | (2,028 | ) | $ | (3,216 | ) | $ | (22 | ) | |||||||||||||||
| GAAP Financing income (expenses), net | $ | (13,475 | ) | $ | (169 | ) | $ | 58 | $ | (84 | ) | ||||||||||||||||
| Change in fair value of derivative instruments | $ | 13,510 | $ | (1 | ) | $ | - | $ | (1 | ) | |||||||||||||||||
| Non-GAAP Financing income (expenses), net | $ | 35 | $ | (170 | ) | $ | 58 | $ | (85 | ) | |||||||||||||||||
| GAAP net loss | $ | (18,499 | ) | $ | (2,607 | ) | $ | (3,529 | ) | $ | (233 | ) | |||||||||||||||
| Stock-based compensation | $ | 679 | $ | 437 | $ | 317 | $ | 156 | |||||||||||||||||||
| Change in fair value of derivative instruments | $ | 13,510 | $ | (1 | ) | $ | - | $ | (1 | ) | |||||||||||||||||
| Non-GAAP net loss | $ | (4,089 | ) | $ | (1,947 | ) | $ | (3,137 | ) | $ | (6 | ) | |||||||||||||||
| GAAP basic and diluted loss per share | $ | (0.61 | ) | $ | (0.12 | ) | $ | (0.10 | ) | $ | (0.01 | ) | |||||||||||||||
| Non-GAAP basic and diluted loss per share | $ | (0.13 | ) | $ | (0.09 | ) | $ | (0.09 | ) | $ | (0.00 | ) | |||||||||||||||
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Mazor Robotics Ltd. CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENTS (U.S. Dollars in thousands) (UNAUDITED) |
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| Nine month period |
Three-month period |
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| ended September 30, | ended September 30, | |||||||||||||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||||||||||
| Loss for the period | $ | (18,499 | ) | $ | (2,607 | ) | $ | (3,530 | ) | $ | (233 | ) | ||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||
| Depreciation and amortization | $ | 449 | $ | 368 | $ | 157 | $ | 119 | ||||||||||||||||||||
| Change in fair value of derivative liability on account of warrants | $ | 13,510 | $ | - | $ | - | $ | - | ||||||||||||||||||||
| Finance (income) expenses, net | $ | (36 | ) | $ | 126 | $ | (22 | ) | $ | 221 | ||||||||||||||||||
| Share-based payment | $ | 679 | $ | 437 | $ | 317 | $ | 155 | ||||||||||||||||||||
| Taxes on income | $ | 163 | $ | (20 | ) | $ | 63 | $ | (24 | ) | ||||||||||||||||||
| $ | 14,765 | $ | 911 | $ | 515 | $ | 471 | |||||||||||||||||||||
| Change in inventory | $ | (1,111 | ) | $ | 13 | $ | (721 | ) | $ | (87 | ) | |||||||||||||||||
| Change in trade and other accounts receivable | $ | (536 | ) | $ | (1,115 | ) | $ | 1,854 | $ | (529 | ) | |||||||||||||||||
| Change in prepaid lease fees | $ | (9 | ) | $ | - | $ | (3 | ) | $ | (2 | ) | |||||||||||||||||
| Change in trade and other accounts payable | $ | 1,485 | $ | 877 | $ | (96 | ) | $ | 663 | |||||||||||||||||||
| Change in employee benefits | $ | 107 | $ | 55 | $ | (2 | ) | $ | 25 | |||||||||||||||||||
| $ | (64 | ) | $ | (170 | ) | $ | 1,032 | $ | 70 | |||||||||||||||||||
| Interest received | $ | 58 | $ | 401 | $ | - | $ | 1 | ||||||||||||||||||||
| Income tax paid | $ | (51 | ) | $ | (4 | ) | $ | (16 | ) | $ | (4 | ) | ||||||||||||||||
| $ | 7 | $ | 397 | $ | (16 | ) | $ | (3 | ) | |||||||||||||||||||
| Net cash (used in) provided by operating activities | $ | (3,791 | ) | $ | (1,469 | ) | $ | (1,999 | ) | $ | 305 | |||||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||||||||||
| Proceeds from short-term investments and deposits, net | $ | 4,177 | $ | 5,047 | $ | 2 | $ | 1,006 | ||||||||||||||||||||
| Purchase of property and equipment | $ | (223 | ) | $ | (266 | ) | $ | (72 | ) | $ | (109 | ) | ||||||||||||||||
| Net cash provided by (used in) investing activities | $ | 3,954 | $ | 4,781 | $ | (70 | ) | $ | 897 | |||||||||||||||||||
| Cash flows used in financing activities: | ||||||||||||||||||||||||||||
| Proceeds from exercise of share options and warrants, net | $ | 10,199 | $ | 7,298 | $ | 6,916 | $ | 7,298 | ||||||||||||||||||||
| Proceeds from exercise of share options by employees | $ | 402 | $ | 3 | $ | 143 | $ | - | ||||||||||||||||||||
| Repayment of loans to the OCS | $ | (637 | ) | $ | (309 | ) | $ | (896 | ) | $ | (312 | ) | ||||||||||||||||
| Net cash provided by financing activities | $ | 9,964 | $ | 6,992 | $ | 6,163 | $ | 6,968 | ||||||||||||||||||||
| Net increase in cash and cash equivalents | $ | 10,127 | $ | 10,304 | $ | 4,600 | $ | 8,314 | ||||||||||||||||||||
| Cash and cash equivalents at the beginning of the period | $ | 12,797 | $ | 1,655 | $ | 18,332 | $ | 3,689 | ||||||||||||||||||||
| Effect of exchange rate differences on balances of cash and cash equivalents | $ | 59 | $ | 89 | $ | 51 | $ | 45 | ||||||||||||||||||||
| Effect of translation from functional to presentation | $ | - | $ | 107 | $ | - | $ | - | ||||||||||||||||||||
| Cash and cash equivalents at the end of the period | $ | 22,983 | $ | 12,155 | $ | 22,983 | $ | 12,155 | ||||||||||||||||||||
| Supplementary cash flows information: | ||||||||||||||||||||||||||||
| Transfer of inventory to fixed assets | $ | 67 | $ | 85 | $ | - | $ | 59 | ||||||||||||||||||||
