2017 Q2 Form 10-Q Financial Statement

#000114519717000009 Filed on May 09, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2017 Q1 2016 Q1
Revenue $109.8M $101.7M $81.21M
YoY Change 25.68% 25.24% 68.67%
Cost Of Revenue $45.12M $42.32M $37.16M
YoY Change 22.36% 13.87% 96.05%
Gross Profit $64.64M $59.40M $44.05M
YoY Change 28.11% 34.84% 50.9%
Gross Profit Margin 58.89% 58.4% 54.24%
Selling, General & Admin $49.97M $47.21M $38.76M
YoY Change 28.81% 21.79% 37.2%
% of Gross Profit 77.3% 79.47% 87.99%
Research & Development $18.03M $17.50M $12.99M
YoY Change 39.19% 34.73% 58.27%
% of Gross Profit 27.89% 29.46% 29.49%
Depreciation & Amortization $3.390M $3.323M $3.422M
YoY Change -1.17% -2.89% -0.32%
% of Gross Profit 5.24% 5.59% 7.77%
Operating Expenses $68.00M $64.71M $51.75M
YoY Change 31.41% 25.04% 41.94%
Operating Profit -$3.358M -$5.308M -$7.699M
YoY Change 160.71% -31.06% 5.96%
Interest Expense -$4.300M -$4.600M -$2.900M
YoY Change 43.33% 58.62% -9.38%
% of Operating Profit
Other Income/Expense, Net -$4.308M -$4.573M -$2.926M
YoY Change 43.7% 56.29% -7.17%
Pretax Income -$7.666M -$9.881M -$10.63M
YoY Change 78.86% -7.0% 1.99%
Income Tax $101.0K $96.00K $100.0K
% Of Pretax Income
Net Earnings -$7.767M -$9.977M -$12.48M
YoY Change 85.02% -20.06% 5.47%
Net Earnings / Revenue -7.08% -9.81% -15.37%
Basic Earnings Per Share
Diluted Earnings Per Share -$134.5K -$173.3K -$219.3K
COMMON SHARES
Basic Shares Outstanding 57.92M shares 57.65M shares 57.02M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q2 2017 Q1 2016 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $258.6M $254.0M $111.6M
YoY Change 132.35% 127.6% -23.35%
Cash & Equivalents $73.49M $76.04M $111.6M
Short-Term Investments $185.1M $178.0M
Other Short-Term Assets $8.400M $8.200M $5.700M
YoY Change 23.53% 43.86% 54.05%
Inventory $33.96M $34.33M $14.02M
Prepaid Expenses
Receivables $37.75M $40.65M $40.47M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $338.7M $337.2M $171.8M
YoY Change 86.85% 96.2% -16.35%
LONG-TERM ASSETS
Property, Plant & Equipment $75.88M $65.28M $41.70M
YoY Change 84.48% 56.56% -6.54%
Goodwill $39.76M $39.70M $39.76M
YoY Change -0.01% -0.16% 5.93%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $1.559M $605.0K $588.0K
YoY Change 1671.59% 2.89% -88.21%
Total Long-Term Assets $120.6M $107.8M $82.93M
YoY Change 47.49% 29.98% -17.31%
TOTAL ASSETS
Total Short-Term Assets $338.7M $337.2M $171.8M
Total Long-Term Assets $120.6M $107.8M $82.93M
Total Assets $459.3M $445.0M $254.8M
YoY Change 74.62% 74.65% -16.66%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $12.24M $6.413M $13.48M
YoY Change -43.33% -52.43% -5.36%
Accrued Expenses $34.65M $31.84M $30.39M
YoY Change 15.73% 4.79% 20.26%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $4.400M
YoY Change -26.67%
Total Short-Term Liabilities $48.02M $39.38M $49.78M
YoY Change -12.98% -20.89% 5.06%
LONG-TERM LIABILITIES
Long-Term Debt $340.8M $336.8M $173.7M
YoY Change 94.0% 93.9% 1.81%
Other Long-Term Liabilities $5.748M $5.231M $4.922M
YoY Change 21.52% 6.28% 62.01%
Total Long-Term Liabilities $346.6M $342.0M $178.6M
YoY Change 92.1% 91.48% 2.86%
TOTAL LIABILITIES
Total Short-Term Liabilities $48.02M $39.38M $49.78M
Total Long-Term Liabilities $346.6M $342.0M $178.6M
Total Liabilities $394.6M $381.4M $228.4M
YoY Change 67.49% 66.99% 1.51%
SHAREHOLDERS EQUITY
Retained Earnings -$698.2M -$690.4M -$664.0M
YoY Change 4.48% 3.97% 12.57%
Common Stock $58.00K $58.00K $57.00K
YoY Change 1.75% 1.75% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $64.73M $63.59M $26.40M
YoY Change
Total Liabilities & Shareholders Equity $459.3M $445.0M $254.8M
YoY Change 74.62% 74.65% -16.66%

Cashflow Statement

Concept 2017 Q2 2017 Q1 2016 Q1
OPERATING ACTIVITIES
Net Income -$7.767M -$9.977M -$12.48M
YoY Change 85.02% -20.06% 5.47%
Depreciation, Depletion And Amortization $3.390M $3.323M $3.422M
YoY Change -1.17% -2.89% -0.32%
Cash From Operating Activities $17.97M -$21.84M -$10.52M
YoY Change 388.32% 107.62% 201.52%
INVESTING ACTIVITIES
Capital Expenditures -$13.39M $25.68M $3.160M
YoY Change 386.91% 712.63% -27.29%
Acquisitions
YoY Change
Other Investing Activities -$8.590M -$16.61M $4.610M
YoY Change -75.09% -460.3%
Cash From Investing Activities -$21.98M -$42.29M $1.454M
YoY Change -40.98% -3008.25% -133.46%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $6.335M $796.0K
YoY Change 695.85% -83.68%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.260M $2.927M -$2.184M
YoY Change -152.28% -234.02% -197.11%
NET CHANGE
Cash From Operating Activities 17.97M -$21.84M -$10.52M
Cash From Investing Activities -21.98M -$42.29M $1.454M
Cash From Financing Activities 1.260M $2.927M -$2.184M
Net Change In Cash -2.750M -$61.19M -$11.25M
YoY Change -92.35% 444.09% 101.38%
FREE CASH FLOW
Cash From Operating Activities $17.97M -$21.84M -$10.52M
Capital Expenditures -$13.39M $25.68M $3.160M
Free Cash Flow $31.36M -$47.51M -$13.68M
YoY Change 387.71% 247.4% 74.59%

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CY2016Q4 us-gaap Nature Of Operations
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Nature of the Business </font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Insulet Corporation, the "Company," is primarily engaged in the development, manufacturing and sale of its proprietary Omnipod Insulin Management System (&#8220;Omnipod System&#8221;), an innovative, discreet and easy-to-use continuous insulin delivery system for people with insulin-dependent diabetes. The Omnipod System features a small, lightweight, self-adhesive disposable tubeless Omnipod device which is worn on the body for approximately three days at a time and its wireless companion, the handheld Personal Diabetes Manager ("PDM"). Conventional insulin pumps require people with insulin-dependent diabetes to learn to use, manage and wear a number of cumbersome components, including up to </font><font style="font-family:Arial;font-size:10pt;color:#000000;text-decoration:none;">42</font><font style="font-family:Arial;font-size:10pt;"> inches of tubing. In contrast, the Omnipod System features only two discreet, easy-to-use devices that eliminate the need for a bulky pump, tubing and separate blood glucose meter, provides for virtually pain-free automated cannula insertion, communicates wirelessly and integrates a blood glucose meter. The Company believes that the Omnipod System&#8217;s unique proprietary design and features allow people with insulin-dependent diabetes to manage their diabetes with unprecedented freedom, comfort, convenience, and ease. </font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Commercial sales of the Omnipod System began in the United States in 2005. The Company sells the Omnipod System in the United States through direct sales to customers or through its distribution partners. The Omnipod System is currently available in multiple countries in Europe, as well as in Canada and Israel.</font></div><div style="line-height:120%;padding-top:6px;text-indent:30px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In addition to using the Omnipod System for insulin delivery, the Company also partners with global pharmaceutical and biotechnology companies to tailor the Omnipod System technology platform for the delivery of subcutaneous drugs across multiple therapeutic areas.&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The Company acquired Neighborhood Holdings, Inc. and its wholly-owned subsidiaries (collectively, &#8220;Neighborhood Diabetes&#8221;) in </font><font style="font-family:Arial;font-size:10pt;">June 2011</font><font style="font-family:Arial;font-size:10pt;">. Through Neighborhood Diabetes, the Company provided customers with blood glucose testing supplies, traditional insulin pumps, pump supplies and pharmaceuticals and had the ability to process claims as either durable medical equipment or through pharmacy benefits. In February 2016, the Company sold Neighborhood Diabetes to Liberty Medical LLC ("Liberty Medical"). Additional information regarding the disposition and treatment of the Neighborhood Diabetes business as discontinued operations is provided in Note </font><font style="font-family:Arial;font-size:10pt;">3</font><font style="font-family:Arial;font-size:10pt;"> to these consolidated financial statements.</font></div></div>
CY2017Q1 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Reclassification of Prior Period Balances</font></div><div style="line-height:120%;padding-top:6px;text-indent:30px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation including reclassifying internal-use capitalized software from&#160;property and equipment to&#160;other intangible assets for the year ended December 31, 2016 upon adoption of ASU&#160;2016-19,&#160;</font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Technical Corrections and Improvements</font><font style="font-family:Arial;font-size:10pt;">.</font></div></div>
CY2017Q1 us-gaap Use Of Estimates
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates in Preparation of Financial Statements</font></div><div style="line-height:120%;padding-top:6px;text-indent:30px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in the application of certain of its significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue and expenses. The most significant estimates used in these financial statements include the valuation of stock-based compensation expense, acquired businesses, accounts receivable, inventories, goodwill, deferred revenue, equity instruments, convertible debt, the lives of property and equipment and intangible assets, as well as warranty and doubtful accounts allowance reserve calculations. Actual results may differ from those estimates.</font></div></div>

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