8-K
0001661181False00016611812023-08-092023-08-09

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): August 9, 2023

ORGANOGENESIS HOLDINGS INC.

(Exact Name of Registrant as specified in its charter)

Delaware

001-37906

98-1329150

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

85 Dan Road

Canton, MA

02021

(Address of principal executive offices)

(Zip Code)

(781) 575-0775

(Registrant’s telephone number, including area code)

Not Applicable

(Registrant’s name or former address, if change since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A Common Stock, $0.0001 par value

 

ORGO

 

Nasdaq Capital Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐

 


Item 2.02 Results of Operations and Financial Condition.

On August 9, 2023, the Company announced via press release its results for the fiscal second quarter ended June 30, 2023. A copy of the Company’s press release is hereby furnished to the Commission and incorporated herein by reference as Exhibit 99.1.

The information in the press release attached as Exhibit 99.1 is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit

No.

Description

99.1

 

Press Release dated August 9, 2023

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Organogenesis Holdings Inc.

By:

/s/ Lori Freedman

Name:

Lori Freedman

Title:

Chief Administrative and Legal Officer

 

Date: August 9, 2023

 


EX-99.1

Exhibit 99.1

https://cdn.kscope.io/b26f55b035a55712ebb0f2a49ffdcdaa-img36819578_0.jpg

 

FOR IMMEDIATE RELEASE

 

Organogenesis Holdings Inc. Reports Second Quarter 2023 Financial Results; Withdraws Fiscal Year 2023 Guidance

 

CANTON, Mass., (August 9, 2023) -- Organogenesis Holdings Inc. (Nasdaq: ORGO), a leading regenerative medicine company focused on the development, manufacture, and commercialization of product solutions for the Advanced Wound Care and Surgical & Sports Medicine markets, today reported financial results for the second quarter ended June 30th, 2023.

 

Second Quarter 2023 Financial Results Summary:

 

Net revenue of $117.3 million for the second quarter of 2023, a decrease of $4.1 million compared to net revenue of $121.4 million for the second quarter of 2022. Net revenue for the second quarter of 2023 consists of:
o
Net revenue from Advanced Wound Care products of $110.1 million, a decrease of 3% from the second quarter of 2022.
o
Net revenue from Surgical & Sports Medicine products of $7.2 million, a decrease of 5% from the second quarter of 2022.
Net income of $5.3 million for the second quarter of 2023, compared to a net income of $8.7 million for the second quarter of 2022, a decrease of $3.4 million.
Adjusted net income1 of $6.1 million for the second quarter of 2023, compared to an adjusted net income of $11.3 million for the second quarter of 2022, a decrease of $5.2 million.
Adjusted EBITDA of $15.4 million for the second quarter of 2023, compared to Adjusted EBITDA of $18.6 million for the second quarter of 2022, a decrease of $3.2 million.

 

“Second quarter total net revenue came in above the high-end of the guidance range we provided on our first quarter earnings call,” said Gary S. Gillheeney, Sr., President, Chief Executive Officer and Chair of the Board of Organogenesis. “As expected, we leveraged our diversified portfolio and leadership position in Wound Care Centers and physician offices across the U.S. to deliver better-than-expected revenue and profitability performance in Q2.”

Mr. Gillheeney continued: “The recently published local coverage determinations (LCDs) from Novitas, First Coast Services and CGS to limit coverage for treatment of diabetic foot ulcers (DFU) and venous leg ulcers (VLU) to include only Apligraf and Dermagraft, presents a significant amount of uncertainty regarding the revenue outlook for a number of our products in these regions. Further uncertainty remains as it relates to potential impact on demand for our products when used for treatment of non-DFU/VLU wounds. As such, we are withdrawing the fiscal year 2023 guidance, previously provided on May 10, 2023. We believe that the five commercialized products that were listed as ‘not covered’ were improperly excluded from the list of 'covered' products and we are engaging with all relevant parties in advance of the effective date of these LCDs on September 17, 2023.”

 

 

 

 

1Defined as GAAP net income (loss) adjusted to exclude the effect of amortization, restructuring charges, GPO settlement fee and the resulting income taxes on these items.


 

 

Second Quarter 2023 Financial Results:



 

 

Three Months Ended
June 30,

 

 

Change

 

 

 

2023

 

 

2022

 

 

$

 

 

%

 

 

 

(in thousands, except for percentages)

 

Advanced Wound Care

 

$

110,075

 

 

$

113,791

 

 

$

(3,716

)

 

 

(3

%)

Surgical & Sports Medicine

 

 

7,241

 

 

 

7,610

 

 

 

(369

)

 

 

(5

%)

Net revenue

 

$

117,316

 

 

$

121,401

 

 

$

(4,085

)

 

 

(3

%)

 

Net revenue for the second quarter of 2023 was $117.3 million, compared to $121.4 million for the second quarter of 2022, a decrease of $4.1 million, or 3%. The decrease in net revenue was driven by a decrease of $3.7 million, or 3% in net revenue for Advanced Wound Care products and a decrease of $0.4 million, or 5%, in net revenue for Surgical & Sports Medicine products.

 

Gross profit for the second quarter of 2023 was $91.0 million, or 78% of net revenue, compared to $94.7 million, or 78% of net revenue for the second quarter of 2022, a decrease of $3.7 million.

 

Operating expenses for the second quarter of 2023 were $81.3 million compared to $82.8 million for the second quarter of 2022, a decrease of $1.6 million. R&D expense was $10.9 million for the second quarter of 2023, compared to $10.2 million for the second quarter of 2022, an increase of $0.7 million. Selling, general and administrative expenses were $70.3 million for the second quarter of 2023, compared to $72.6 million for the second quarter of 2022, a decrease of $2.3 million.

 

Operating income for the second quarter of 2023 was $9.7 million, compared to operating income of $11.9 million for the second quarter of 2022, a decrease of $2.2 million.

 

Total other expense, net, for the second quarter of 2023 was $0.6 million, compared to $0.8 million for the second quarter of 2022, a decrease of $0.2 million.

 

Net income for the second quarter of 2023 was $5.3 million, or $0.04 per share, compared to net income of $8.7 million, or $0.07 per share, for the second quarter of 2022, a decrease of $3.4 million, or $0.03 per share.

 

Adjusted net income of $6.1 million for the second quarter of 2023, compared to adjusted net income of $11.3 million for the second quarter of 2022, a decrease of $5.2 million.

 

Adjusted EBITDA was $15.4 million for the second quarter of 2023, compared to $18.6 million for the second quarter of 2022, a decrease of $3.2 million.

 

As of June 30th, 2023, the Company had $89.5 million in cash, cash equivalents and restricted cash and $69.0 million in debt obligations, compared to $103.3 million in cash, cash equivalents and restricted cash and $70.8 million in debt obligations as of December 31, 2022.

 

 

 


 

First Half 2023 Results

The following table represents net revenue by product grouping for the six months ended June 30, 2023 and June 30, 2022, respectively:

 

 

 

Six Months Ended
June 30,

 

 

Change

 

 

 

2023

 

 

2022

 

 

$

 

 

%

 

 

 

(in thousands, except for percentages)

 

Advanced Wound Care

 

$

210,992

 

 

$

203,881

 

 

$

7,111

 

 

 

3

%

Surgical & Sports Medicine

 

 

13,966

 

 

 

14,637

 

 

 

(671

)

 

 

(5

%)

Net revenue

 

$

224,958

 

 

$

218,518

 

 

$

6,440

 

 

 

3

%

 

Net revenue for the six months ended June 30, 2023 was $225.0 million, compared to $218.5 million for the six months ended June 30, 2022, an increase of $6.4 million, or 3%. The increase in net revenue was driven by an increase of $7.1 million, or 3% in net revenue for Advanced Wound Care products. This is partially offset by a decrease of $0.7 million, or 5% in net revenue for Surgical & Sports Medicine products.

Gross profit for the six months ended June 30, 2023 was $172.0 million, or 76% of net revenue, compared to $166.8 million, or 76% of net revenue, for the six months ended June 30, 2022, an increase of $5.2 million.

Operating expenses for the six months ended June 30, 2023 were $166.3 million, compared to $155.0 million for the six months June 30, 2022, an increase of $11.3 million. R&D expense was $22.1 million for the six months ended June 30, 2023, compared to $18.8 million in the six months ended June 30, 2022, an increase of $3.3 million. Selling, general and administrative expenses were $144.2 million for the six months ended June 30, 2023, compared to $136.2 million in the six months ended June 30, 2022, an increase of $8.0 million.

Operating income for the six months ended June 30, 2023 was $5.7 million, compared to operating income of $11.8 million for the six months ended June 30, 2022, a decrease of $6.1 million.

Total other expenses, net, for the six months ended June 30, 2023 were $1.2 million, compared to $1.5 million for the six months ended June 30, 2022, a decrease of $0.3 million.

Net income of $2.3 million for the six months ended June 30, 2023 or $0.02 per share, compared to net income of $7.8 million, or $0.06 per share for the six months ended June 30, 2022, a decrease of $5.5 million, or $0.04, per share.

Adjusted net income for the six months ended June 30, 2023 was $5.4 million compared to $12.2 million, for the six months ended June 30, 2022, a decrease of $6.7 million.

Adjusted EBITDA of $19.2 million for the six months ended June 30, 2023, compared to an Adjusted EBITDA of $23.6 million, for the six months ended June 30, 2022, a decrease of $4.4 million.

 

 

 

 

 

 

 

 


 

Fiscal Year 2023 Guidance:

 

The Company is withdrawing its previously announced fiscal year 2023 guidance, originally issued on May 10, 2023, due to the uncertainty resulting from the potential impact of the recently published local coverage determinations from Novitas, First Coast Services and CGS to limit coverage for treatment of diabetic foot ulcers (DFU) and venous leg ulcers (VLU) to include only Apligraf and Dermagraft. The Company is currently unable to predict the impact that the recently published local coverage determinations will have on its financial position and operating results.

 

Second Quarter Earnings Conference Call:

 

Financial results for the second fiscal quarter of 2023 will be reported after the market closes on August, 9th. Management will host a conference call at 5:00 p.m. Eastern Time on August 9th to discuss the results of the quarter, and provide a corporate update with a question and answer session. Those who would like to participate may access the live webcast here, or access the teleconference here. The live webcast can also be accessed via the company's website at investors.organogenesis.com. The webcast will be archived on the company website for one year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

ORGANOGENESIS HOLDINGS INC.

UNAUDITED CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share and per share data)

 

 

 

June 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

88,917

 

 

$

102,478

 

Restricted cash

 

 

591

 

 

 

812

 

Accounts receivable, net

 

 

93,615

 

 

 

89,450

 

Inventory, net

 

 

25,364

 

 

 

24,783

 

Prepaid expenses and other current assets

 

 

7,948

 

 

 

5,086

 

Total current assets

 

 

216,435

 

 

 

222,609

 

Property and equipment, net

 

 

111,825

 

 

 

102,463

 

Intangible assets, net

 

 

18,330

 

 

 

20,789

 

Goodwill

 

 

28,772

 

 

 

28,772

 

Operating lease right-of-use assets, net

 

 

43,544

 

 

 

43,192

 

Deferred tax asset, net

 

 

30,014

 

 

 

30,014

 

Other assets

 

 

1,393

 

 

 

1,520

 

Total assets

 

$

450,313

 

 

$

449,359

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Current portion of term loan, net of debt issuance costs

 

$

5,480

 

 

$

4,538

 

Current portion of finance lease obligations

 

 

209

 

 

 

-

 

Current portion of operating lease obligations

 

 

12,592

 

 

 

11,708

 

Accounts payable

 

 

27,390

 

 

 

32,330

 

Accrued expenses and other current liabilities

 

 

27,784

 

 

 

26,447

 

Total current liabilities

 

 

73,455

 

 

 

75,023

 

Term loan, net of current portion and debt issuance costs

 

 

63,489

 

 

 

66,231

 

Finance lease obligations, net of current portion

 

 

402

 

 

 

-

 

Operating lease obligations, net of current portion

 

 

40,495

 

 

 

41,314

 

Other liabilities

 

 

1,190

 

 

 

1,122

 

Total liabilities

 

 

179,031

 

 

 

183,690

 

Commitments and contingencies (Note 18)

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued

 

 

-

 

 

 

-

 

Common stock, $0.0001 par value; 400,000,000 shares authorized; 132,040,400 and 131,647,677 shares issued; 131,311,852 and 130,919,129 shares outstanding at June 30, 2023 and December 31, 2022, respectively.

 

 

13

 

 

 

13

 

Additional paid-in capital

 

 

314,838

 

 

 

310,957

 

Accumulated deficit

 

 

(43,569

)

 

 

(45,301

)

Total stockholders’ equity

 

 

271,282

 

 

 

265,669

 

Total liabilities and stockholders’ equity

 

$

450,313

 

 

$

449,359

 

 

 


 

ORGANOGENESIS HOLDINGS INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except share and per share data)

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net revenue

 

$

117,316

 

 

$

121,401

 

 

$

224,958

 

 

$

218,518

 

Cost of goods sold

 

 

26,316

 

 

 

26,652

 

 

 

52,923

 

 

 

51,732

 

Gross profit

 

 

91,000

 

 

 

94,749

 

 

 

172,035

 

 

 

166,786

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

70,317

 

 

 

72,609

 

 

 

144,151

 

 

 

136,187

 

Research and development

 

 

10,938

 

 

 

10,205

 

 

 

22,140

 

 

 

18,792

 

Total operating expenses

 

 

81,255

 

 

 

82,814

 

 

 

166,291

 

 

 

154,979

 

Income from operations

 

 

9,745

 

 

 

11,935

 

 

 

5,744

 

 

 

11,807

 

Other expense, net:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(594

)

 

 

(730

)

 

 

(1,243

)

 

 

(1,467

)

Other income (expense), net

 

 

28

 

 

 

(21

)

 

 

51

 

 

 

(24

)

Total other expense, net

 

 

(566

)

 

 

(751

)

 

 

(1,192

)

 

 

(1,491

)

Net income before income taxes

 

 

9,179

 

 

 

11,184

 

 

 

4,552

 

 

 

10,316

 

Income tax expense

 

 

(3,863

)

 

 

(2,440

)

 

 

(2,205

)

 

 

(2,485

)

Net income

 

$

5,316

 

 

$

8,744

 

 

$

2,347

 

 

$

7,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income, per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.04

 

 

$

0.07

 

 

$

0.02

 

 

$

0.06

 

Diluted

 

$

0.04

 

 

$

0.07

 

 

$

0.02

 

 

$

0.06

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

131,293,398

 

 

 

129,635,682

 

 

 

131,189,405

 

 

 

129,214,541

 

Diluted

 

 

133,066,010

 

 

 

132,600,579

 

 

 

132,475,908

 

 

 

132,705,206

 

 

 

 


 

ORGANOGENESIS HOLDINGS INC. UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

(amounts in thousands, except share and per share data)

 

 

 

Six Months Ended
June 30,

 

 

 

2023

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

Net Income

 

$

2,347

 

 

$

7,831

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation

 

 

4,922

 

 

 

2,875

 

Amortization of intangible assets

 

 

2,459

 

 

 

2,442

 

Reduction in the carrying value of right-of-use assets

 

 

3,893

 

 

 

3,649

 

Non-cash interest expense

 

 

215

 

 

 

217

 

Deferred interest expense

 

 

245

 

 

 

291

 

Provision recorded for credit losses

 

 

190

 

 

 

122

 

Loss on disposal of property and equipment

 

 

65

 

 

 

196

 

Adjustment for excess and obsolete inventories

 

 

3,464

 

 

 

5,228

 

Stock-based compensation

 

 

4,213

 

 

 

2,995

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(4,970

)

 

 

(6,485

)

Inventory

 

 

(4,045

)

 

 

(3,441

)

Prepaid expenses and other current assets

 

 

(2,874

)

 

 

(1,839

)

Operating leases

 

 

(4,178

)

 

 

(3,472

)

Accounts payable

 

 

(3,535

)

 

 

2,671

 

Accrued expenses and other current liabilities

 

 

1,091

 

 

 

(1,697

)

Other liabilities

 

 

67

 

 

 

23

 

Net cash provided by operating activities

 

 

3,569

 

 

 

11,606

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(15,061

)

 

 

(12,840

)

Net cash used in investing activities

 

 

(15,061

)

 

 

(12,840

)

Cash flows from financing activities:

 

 

 

 

 

 

Payments of term loan under the 2021 Credit Agreement

 

 

(1,875

)

 

 

(938

)

Payments of withholding taxes in connection with RSUs vesting

 

 

(332

)

 

 

(646

)

Proceeds from the exercise of stock options

 

 

-

 

 

 

2,042

 

Principal repayments of finance lease obligations

 

 

(83

)

 

 

(200

)

Payment of deferred acquisition consideration

 

 

-

 

 

 

(608

)

Net cash used in financing activities

 

 

(2,290

)

 

 

(350

)

Change in cash, cash equivalents and restricted cash

 

 

(13,782

)

 

 

(1,584

)

Cash, cash equivalents, and restricted cash, beginning of period

 

 

103,290

 

 

 

114,528

 

Cash, cash equivalents, and restricted cash, end of period

 

$

89,508

 

 

$

112,944

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid for interest

 

$

2,608

 

 

$

1,041

 

Cash paid for income taxes

 

$

3,022

 

 

$

974

 

Supplemental disclosure of non-cash investing and financing activities:

 

 

 

 

 

 

Purchases of property and equipment included in accounts payable and accrued expenses

 

$

1,882

 

 

$

6,546

 

Right-of-use assets obtained through lease obligations

 

$

4,253

 

 

$

364

 

Shares issued for deferred acquisition consideration

 

$

-

 

 

$

828

 

 

 

 

 


 

Non-GAAP Financial Measures

Our management uses financial measures that are not in accordance with generally accepted accounting principles in the United States, or GAAP, in addition to financial measures in accordance with GAAP to evaluate our operating results. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP. Our management uses Adjusted EBITDA and adjusted net income to evaluate our operating performance and trends and make planning decisions. Our management believes Adjusted EBITDA and adjusted net income help identify underlying trends in our business that could otherwise be masked by the effect of the items that we exclude. Accordingly, we believe that Adjusted EBITDA and adjusted net income provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and prospects, and allowing for greater transparency with respect to key financial metrics used by our management in its financial and operational decision-making.

The following table presents a reconciliation of GAAP net income to non-GAAP EBITDA and non-GAAP Adjusted EBITDA, for the periods presented:

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(Unaudited) (in thousands)

 

Net Income

 

$

5,316

 

 

$

8,744

 

 

$

2,347

 

 

$

7,831

 

Interest expense, net

 

 

594

 

 

 

730

 

 

 

1,243

 

 

 

1,467

 

Income tax expense

 

 

3,863

 

 

 

2,440

 

 

 

2,205

 

 

 

2,485

 

Depreciation

 

 

2,228

 

 

 

1,528

 

 

 

4,922

 

 

 

2,875

 

Amortization

 

 

1,229

 

 

 

1,221

 

 

 

2,459

 

 

 

2,442

 

EBITDA

 

 

13,230

 

 

 

14,663

 

 

 

13,176

 

 

 

17,100

 

Stock-based compensation expense

 

 

2,299

 

 

 

1,692

 

 

 

4,213

 

 

 

2,995

 

Restructuring charge (adjustment) (1)

 

 

(126

)

 

 

643

 

 

 

1,782

 

 

 

907

 

Settlement fee (2)

 

 

-

 

 

 

1,600

 

 

 

-

 

 

 

2,600

 

Adjusted EBITDA

 

$

15,403

 

 

$

18,598

 

 

$

19,171

 

 

$

23,602

 

(1)
Amounts reflect employee severance, retention and benefits as well as other exit costs associated with the Company’s restructuring activities.
(2)
Amounts reflect the fee the Company paid to a GPO to settle previously disputed GPO fees.

 

 


 

The following table presents a reconciliation of GAAP net income to non-GAAP adjusted net income, for the periods presented:

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(Unaudited) (in thousands)

 

 

(in thousands)

 

Net Income

 

$

5,316

 

 

$

8,744

 

 

$

2,347

 

 

$

7,831

 

Amortization

 

 

1,229

 

 

 

1,221

 

 

 

2,459

 

 

 

2,442

 

Restructuring charge (adjustment) (1)

 

 

(126

)

 

 

643

 

 

 

1,782

 

 

 

907

 

Settlement fee (2)

 

 

-

 

 

 

1,600

 

 

 

-

 

 

 

2,600

 

Tax on above

 

 

(298

)

 

 

(935

)

 

 

(1,145

)

 

 

(1,606

)

Adjusted net income

 

$

6,121

 

 

$

11,273

 

 

$

5,443

 

 

$

12,174

 

(1)
Amounts reflect employee severance, retention and benefits as well as other exit costs associated with the Company’s restructuring activities.
(2)
Amounts reflect the fee the Company paid to a GPO to settle previously disputed GPO fees.

 

 

 


 

Forward-Looking Statements

 

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include statements relating to the Company’s expected revenue, net income, adjusted net income, EBITDA, and Adjusted EBITDA for fiscal 2023 and the breakdown of expected revenue in both its Advanced Wound Care and Surgical & Sports Medicine categories. Forward-looking statements with respect to the operations of the Company, strategies, prospects, and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. These factors include, but are not limited to: (1) the impact of any changes to the reimbursement levels for the Company’s products (including as a result of the recently published LCDs); (2) the Company faces significant and continuing competition, which could adversely affect its business, results of operations and financial condition; (3) rapid technological change could cause the Company’s products to become obsolete and if the Company does not enhance its product offerings through its research and development efforts, it may be unable to effectively compete; (4) to be commercially successful, the Company must convince physicians that its products are safe and effective alternatives to existing treatments and that its products should be used in their procedures; (5) the Company may owe rebates to the federal government prospectively on certain of its products if more than a certain percentage of the product is not administered to a patient and is discarded (wasted) by providers; (6) the Company’s ability to raise funds to expand its business; (7) the Company has incurred losses in prior years and may incur losses in the future; (8) changes in applicable laws or regulations; (9) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (10) the Company’s ability to maintain production of Affinity in sufficient quantities to meet demand; (11) any resurgence of the COVID-19 pandemic and its impact, if any, on the Company’s fiscal condition and results of operations; (12) the impact of the suspension of commercialization of: (a) ReNu and NuCel in connection with the expiration of the FDA’s enforcement grace period for HCT/Ps on May 31, 2021 and (b) Dermagraft in the second quarter of 2022 pending transition of manufacturing to a new manufacturing facility or a third-party manufacturer; and (13) other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including Item 1A (Risk Factors) of the Company’s Form 10-K for the year ended December 31, 2022 and its subsequently filed periodic reports. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the Company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

 

 

 

 

 

 

 

 


 

About Organogenesis Holdings Inc.

Organogenesis Holdings Inc. is a leading regenerative medicine company focused on the development, manufacture and commercialization of solutions for the advanced wound care and surgical and sports medicine markets. Organogenesis offers a comprehensive portfolio of innovative regenerative products to address patient needs across the continuum of care. For more information, visit www.organogenesis.com.

 

Investor Inquiries:
Westwicke Partners
Mike Piccinino, CFA
OrganoIR@westwicke.com
443-213-0500

 

Press and Media Inquiries:
Organogenesis

Ron O’Brien

communications@organo.com