10-Q 1 abmd-20220630.htm 10-Q 10-Q
Q12023--03-310000815094false0000815094us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300000815094us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-06-300000815094us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-04-012021-06-3000008150942021-04-012021-06-300000815094us-gaap:RetainedEarningsMember2022-03-310000815094us-gaap:RetainedEarningsMember2021-04-012021-06-300000815094us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-06-300000815094us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-06-3000008150942020-05-3100008150942021-05-310000815094us-gaap:CommonStockMember2022-04-012022-06-300000815094abmd:LongTermInvestmentsMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-06-300000815094abmd:PrecardiaMember2022-04-012022-06-300000815094us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2022-06-300000815094us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberus-gaap:ShortTermInvestmentsMember2022-06-300000815094us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-04-012021-06-300000815094us-gaap:CorporateDebtSecuritiesMemberabmd:LongTermInvestmentsMember2022-06-300000815094us-gaap:TreasuryStockMember2021-06-300000815094us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-04-012022-06-300000815094us-gaap:CrossCurrencyInterestRateContractMember2022-06-300000815094us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberabmd:InternationalMember2022-04-012022-06-300000815094us-gaap:FairValueInputsLevel1Memberabmd:ShockwaveMedicalMember2022-03-310000815094us-gaap:EmployeeStockOptionMember2022-04-012022-06-300000815094srt:MinimumMemberabmd:EcpMember2022-04-012022-06-300000815094abmd:EcpMember2022-03-310000815094abmd:LongTermInvestmentsMember2022-03-310000815094us-gaap:EmployeeStockOptionMember2022-06-300000815094us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberabmd:LongTermInvestmentsMember2022-06-300000815094us-gaap:CommercialPaperMemberus-gaap:ShortTermInvestmentsMember2022-03-310000815094us-gaap:RestrictedStockUnitsRSUMember2022-04-012022-06-300000815094us-gaap:AdditionalPaidInCapitalMember2021-03-3100008150942022-06-300000815094us-gaap:CommonStockMember2021-06-300000815094us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMember2022-03-310000815094us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:OtherAssetsMember2022-06-300000815094us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310000815094srt:MaximumMemberabmd:EcpMember2022-04-012022-06-300000815094abmd:LongTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-03-310000815094us-gaap:RestrictedStockUnitsRSUMember2022-03-310000815094us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-03-310000815094us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300000815094us-gaap:AccumulatedTranslationAdjustmentMember2021-06-300000815094us-gaap:MoneyMarketFundsMember2022-06-300000815094country:JP2022-04-012022-06-300000815094us-gaap:RestrictedStockUnitsRSUMember2022-06-300000815094country:US2021-04-012021-06-300000815094us-gaap:CommonStockMember2022-03-310000815094us-gaap:CashEquivalentsMemberus-gaap:CommercialPaperMember2022-03-310000815094us-gaap:CostOfSalesMember2022-04-012022-06-300000815094us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000815094us-gaap:TreasuryStockMember2021-03-310000815094us-gaap:AccumulatedTranslationAdjustmentMember2022-04-012022-06-300000815094srt:MinimumMemberabmd:BreetheIncAcquisitionMember2022-04-012022-06-300000815094country:US2022-06-300000815094abmd:DevelopedTechnologyMember2022-03-310000815094us-gaap:ShortTermInvestmentsMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-06-300000815094country:JP2021-04-012021-06-300000815094us-gaap:CostOfSalesMember2021-04-012021-06-300000815094us-gaap:FairValueInputsLevel2Memberabmd:LongTermInvestmentsMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-03-310000815094us-gaap:CrossCurrencyInterestRateContractMember2022-03-310000815094us-gaap:AdditionalPaidInCapitalMember2022-06-300000815094us-gaap:CommercialPaperMember2022-03-310000815094abmd:LongTermInvestmentsMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-03-310000815094us-gaap:CommonStockMember2021-04-012021-06-300000815094srt:MaximumMemberabmd:BreetheIncAcquisitionMember2022-06-300000815094abmd:ServiceAndOtherMember2021-04-012021-06-300000815094us-gaap:FairValueInputsLevel2Memberabmd:LongTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-06-3000008150942022-03-310000815094abmd:FourZeroOneKPlanMember2022-04-012022-06-300000815094us-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-06-300000815094srt:MaximumMemberabmd:BreetheIncAcquisitionMember2020-04-300000815094us-gaap:FairValueInputsLevel1Memberabmd:ShockwaveMedicalMember2022-06-3000008150942019-08-310000815094us-gaap:RetainedEarningsMember2022-06-300000815094us-gaap:CommercialPaperMember2022-06-300000815094country:US2022-04-012022-06-300000815094us-gaap:MoneyMarketFundsMember2022-03-310000815094us-gaap:CorporateDebtSecuritiesMemberabmd:LongTermInvestmentsMember2022-03-310000815094us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300000815094us-gaap:CrossCurrencyInterestRateContractMember2022-04-012022-06-300000815094us-gaap:CashEquivalentsMemberus-gaap:MoneyMarketFundsMember2022-06-300000815094us-gaap:FairValueInputsLevel3Member2022-06-300000815094abmd:LongTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-06-300000815094us-gaap:FairValueInputsLevel2Memberus-gaap:CrossCurrencyInterestRateContractMember2022-03-310000815094us-gaap:TreasuryStockMember2022-04-012022-06-300000815094us-gaap:TreasuryStockMember2022-06-300000815094abmd:NonUsNonEuropeNonJapanMember2022-04-012022-06-300000815094us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-04-012022-06-300000815094us-gaap:EmployeeStockOptionMember2021-04-012021-06-300000815094srt:EuropeMember2022-03-310000815094abmd:ShockwaveMedicalMember2022-03-310000815094abmd:BreetheIncAcquisitionMember2022-04-012022-06-300000815094abmd:ShockwaveMedicalMember2022-06-300000815094us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100008150942020-05-012020-05-310000815094abmd:EcpMember2022-04-012022-06-300000815094abmd:PreCARDIAIncMember2021-05-282021-05-280000815094abmd:BreetheIncAcquisitionMember2022-03-310000815094abmd:LongTermInvestmentsMember2022-06-300000815094abmd:InternationalMember2019-10-310000815094abmd:ShockwaveMedicalMemberus-gaap:OtherIncomeMember2021-04-012021-06-300000815094us-gaap:ResearchAndDevelopmentExpenseMember2022-04-012022-06-300000815094us-gaap:CorporateDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2022-06-300000815094srt:EuropeMember2022-06-300000815094us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMember2022-06-300000815094us-gaap:FairValueInputsLevel2Memberus-gaap:CrossCurrencyInterestRateContractMember2022-06-300000815094srt:EuropeMember2022-04-012022-06-300000815094us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberabmd:InternationalMember2021-04-012021-06-300000815094us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-03-310000815094us-gaap:ProductMember2022-04-012022-06-300000815094us-gaap:AccumulatedTranslationAdjustmentMember2022-06-300000815094us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2022-03-310000815094us-gaap:ShortTermInvestmentsMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-03-310000815094us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-04-012022-06-300000815094us-gaap:AdditionalPaidInCapitalMember2022-03-310000815094srt:MinimumMemberabmd:BreetheIncAcquisitionMember2022-06-300000815094us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberabmd:LongTermInvestmentsMember2022-03-310000815094us-gaap:ShortTermInvestmentsMember2022-06-300000815094us-gaap:CorporateDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2022-03-310000815094us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberus-gaap:ShortTermInvestmentsMember2022-03-310000815094abmd:PerformanceAndMarketBasedRestrictedStockUnitsMember2022-06-300000815094abmd:DevelopedTechnologyMember2021-04-012022-03-310000815094us-gaap:FairValueInputsLevel2Memberabmd:LongTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-03-310000815094abmd:NonUsNonEuropeNonJapanMember2021-04-012021-06-300000815094abmd:OutsideTheUSMember2022-04-012022-06-300000815094us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300000815094abmd:EcpMember2014-07-012014-07-310000815094us-gaap:InProcessResearchAndDevelopmentMember2022-06-3000008150942022-07-290000815094us-gaap:ShortTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-03-310000815094us-gaap:TreasuryStockMember2022-03-310000815094us-gaap:ProductMember2021-04-012021-06-300000815094abmd:EcpMember2014-07-310000815094us-gaap:AccumulatedTranslationAdjustmentMember2021-04-012021-06-300000815094us-gaap:CommercialPaperMemberus-gaap:ShortTermInvestmentsMember2022-06-300000815094us-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-03-310000815094us-gaap:CommonStockMember2021-03-310000815094us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-04-012021-06-300000815094us-gaap:ShortTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-06-300000815094us-gaap:CashEquivalentsMember2022-03-310000815094abmd:EcpMember2022-06-300000815094abmd:BreetheIncAcquisitionMember2022-06-300000815094us-gaap:InProcessResearchAndDevelopmentMember2022-03-310000815094us-gaap:CommonStockMember2022-06-3000008150942021-05-012021-05-310000815094abmd:PrecardiaMember2021-04-012021-06-300000815094abmd:FourZeroOneKPlanMember2021-04-012021-06-300000815094us-gaap:RetainedEarningsMember2022-04-012022-06-300000815094us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310000815094currency:EUR2022-06-300000815094us-gaap:EmployeeStockOptionMember2021-05-012021-05-310000815094abmd:OtherLongTermLiabilitiesMemberus-gaap:CrossCurrencyInterestRateContractMember2022-03-310000815094us-gaap:ResearchAndDevelopmentExpenseMember2021-04-012021-06-300000815094us-gaap:RetainedEarningsMember2021-06-300000815094abmd:DevelopedTechnologyMember2022-04-012022-06-3000008150942021-06-300000815094us-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-06-300000815094us-gaap:FairValueInputsLevel2Memberabmd:LongTermInvestmentsMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-06-300000815094us-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-03-310000815094abmd:BreetheIncAcquisitionMember2020-04-012020-04-300000815094currency:EUR2022-04-012022-06-300000815094srt:MaximumMemberabmd:EcpMember2022-06-300000815094us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310000815094abmd:DevelopedTechnologyMember2022-06-300000815094srt:EuropeMember2021-04-012021-06-300000815094us-gaap:CommercialPaperMemberus-gaap:CashEquivalentsMember2022-06-300000815094us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2022-06-300000815094abmd:ServiceAndOtherMember2022-04-012022-06-300000815094us-gaap:CashEquivalentsMemberus-gaap:MoneyMarketFundsMember2022-03-310000815094us-gaap:CashEquivalentsMember2022-06-300000815094exch:CHIJ2022-06-3000008150942022-04-012022-06-300000815094us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300000815094us-gaap:ShortTermInvestmentsMember2022-03-310000815094srt:MinimumMemberabmd:EcpMember2022-06-300000815094us-gaap:RetainedEarningsMember2021-03-310000815094us-gaap:AdditionalPaidInCapitalMember2021-06-300000815094us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-03-310000815094us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2022-03-310000815094srt:MaximumMemberabmd:BreetheIncAcquisitionMember2022-04-012022-06-300000815094abmd:ShockwaveMedicalMemberus-gaap:OtherIncomeMember2022-04-012022-06-300000815094exch:CHIJ2022-03-3100008150942021-03-310000815094us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-03-310000815094us-gaap:TreasuryStockMember2021-04-012021-06-300000815094country:US2022-03-310000815094abmd:PreCARDIAIncMember2021-05-2800008150942020-04-012021-03-310000815094us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-06-300000815094abmd:OutsideTheUSMember2021-04-012021-06-300000815094currency:USD2022-06-300000815094us-gaap:FairValueInputsLevel3Member2022-03-310000815094us-gaap:CrossCurrencyInterestRateContractMember2021-04-012021-06-30iso4217:EURabmd:Segmentxbrli:purexbrli:sharesiso4217:USDxbrli:sharesiso4217:USD

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-09585

 

img17694102_0.jpg 

ABIOMED, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

04-2743260

(State or other jurisdiction of incorporation or organization)

 

(IRS Employer Identification No.)

22 CHERRY HILL DRIVE

Danvers, Massachusetts 01923

(Address of principal executive offices, including zip code)

(978) 646-1400

(Registrant’s telephone number, including area code)

 

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

Title of each class

Trading symbol

Name of each exchange on which registered

Common Stock, $0.01 par value

ABMD

The NASDAQ Stock Market LLC

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

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 provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of July 29, 2022, 45,460,884 shares of the registrant’s common stock, $.01 par value, were outstanding.

 

 

 


 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION:

Page

 

 

 

Item 1.

Condensed Consolidated Financial Statements (unaudited)

3

 

 

 

 

Condensed Consolidated Balance Sheets as of June 30, 2022 and March 31, 2022

3

 

 

 

 

Condensed Consolidated Statements of Operations for the three months ended June 30, 2022 and 2021

4

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended June 30, 2022 and 2021

5

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the three months ended June 30, 2022 and 2021

6

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 2022 and 2021

7

 

 

 

 

Notes to Condensed Consolidated Financial Statements (unaudited)

8

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

23

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

31

 

 

 

Item 4.

Controls and Procedures

31

 

 

 

PART II - OTHER INFORMATION:

 

 

 

 

Item 1.

Legal Proceedings

32

 

 

 

Item 1A.

Risk Factors

32

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

32

 

 

 

Item 3.

Defaults Upon Senior Securities

32

 

 

 

Item 4.

Mine Safety Disclosures

32

 

 

 

Item 5.

Other Information

32

 

 

 

Item 6.

Exhibits

33

 

 

 

Signatures

34

 

 

EXPLANATORY NOTES

Pending Trademarks and Registered Marks

Throughout this quarterly report on Form 10-Q (“this Report”), we refer to various trademarks, service marks and trade names that we use in our business. Abiomed, Impella, Impella 2.5, Impella 5.0, Impella LD, Impella CP, Impella RP, Impella 5.5, Impella Connect, and SmartAssist are registered trademarks of Abiomed, Inc., and are registered in the U.S. and certain foreign countries. Impella ECP, Impella BTR, CVAD STUDY, STEMI DTU, Automated Impella Controller, Abiomed Breethe OXY-1 System and preCARDIA are pending trademarks of ABIOMED, Inc. Other trademarks and service marks appearing in this Report are the property of their respective holders.

Company References

Throughout this Report, unless the context otherwise requires, “ABIOMED, Inc.,” the “Company,” “we,” “us” and “our” refer to ABIOMED, Inc. and its consolidated subsidiaries.

Where You Can Find More Information

We make available, free of charge on our website located at www.abiomed.com, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports, as soon as reasonably practicable after filing such reports with or furnishing such reports to the U.S. Securities and Exchange Commission (“SEC”). We also use our website for the distribution of Company information. The information we post on our website may be deemed to be material information. Accordingly, investors should monitor our website, in addition to following our press releases, SEC reports and other filings and public conference calls and webcasts. The contents of our website are not incorporated by reference into this Report.

2


 

PART I. FINANCIAL INFORMATION

ITEM 1: Condensed Consolidated Financial Statements

ABIOMED, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

 

 

 

June 30, 2022

 

 

March 31, 2022

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

180,492

 

 

$

132,818

 

Short-term marketable securities

 

 

663,829

 

 

 

625,789

 

Accounts receivable, net

 

 

91,102

 

 

 

90,608

 

Inventories, net

 

 

95,373

 

 

 

93,981

 

Prepaid expenses and other current assets

 

 

29,563

 

 

 

33,277

 

Total current assets

 

 

1,060,359

 

 

 

976,473

 

Long-term marketable securities

 

 

159,876

 

 

 

220,089

 

Property and equipment, net

 

 

198,478

 

 

 

202,490

 

Goodwill

 

 

74,855

 

 

 

76,786

 

Other intangibles, net

 

 

38,168

 

 

 

39,518

 

Deferred tax assets

 

 

17,096

 

 

 

10,552

 

Other assets

 

 

154,804

 

 

 

147,485

 

Total assets

 

$

1,703,636

 

 

$

1,673,393

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

34,797

 

 

$

35,346

 

Accrued expenses

 

 

79,011

 

 

 

72,629

 

Deferred revenue

 

 

23,624

 

 

 

26,362

 

Other current liabilities

 

 

3,330

 

 

 

4,120

 

Total current liabilities

 

 

140,762

 

 

 

138,457

 

Other long-term liabilities

 

 

7,792

 

 

 

9,319

 

Contingent consideration

 

 

18,151

 

 

 

21,510

 

Deferred tax liabilities

 

 

735

 

 

 

781

 

Total liabilities

 

 

167,440

 

 

 

170,067

 

Commitments and contingencies (Note 15)

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Class B Preferred Stock, $.01 par value

 

 

 

 

 

 

1,000 shares authorized; issued and outstanding - none

 

 

 

 

 

 

Common stock, $.01 par value

 

 

456

 

 

 

455

 

100,000 shares authorized; 48,382 and 48,258 shares issued as of June 30, 2022 and March 31, 2022, respectively

 

 

 

 

 

 

45,567 and 45,545 shares outstanding as of June 30, 2022 and March 31, 2022, respectively

 

 

 

 

 

 

Additional paid in capital

 

 

884,965

 

 

 

870,074

 

Retained earnings

 

 

1,019,066

 

 

 

964,512

 

Treasury stock at cost - 2,815 and 2,713 shares as of June 30, 2022 and March 31, 2022, respectively

 

 

(330,020

)

 

 

(304,555

)

Accumulated other comprehensive loss

 

 

(38,271

)

 

 

(27,160

)

Total stockholders' equity

 

 

1,536,196

 

 

 

1,503,326

 

Total liabilities and stockholders' equity

 

$

1,703,636

 

 

$

1,673,393

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements (unaudited)

3


 

ABIOMED, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

 

 

 

For the Three Months Ended June 30,

 

 

 

2022

 

 

2021

 

Revenue

 

$

277,149

 

 

$

252,585

 

Cost of revenue and operating expenses:

 

 

 

 

 

 

Cost of revenue

 

 

52,626

 

 

 

45,188

 

Research and development

 

 

40,477

 

 

 

37,708

 

Selling, general and administrative

 

 

117,996

 

 

 

103,484

 

Acquired in-process research and development

 

 

 

 

 

115,490

 

 

 

 

211,099

 

 

 

301,870

 

Income (loss) from operations

 

 

66,050

 

 

 

(49,285

)

Interest and other income, net

 

 

3,772

 

 

 

39,935

 

Income (loss) before income taxes

 

 

69,822

 

 

 

(9,350

)

Income tax provision

 

 

15,268

 

 

 

17,175

 

Net income (loss)

 

$

54,554

 

 

$

(26,525

)

 

 

 

 

 

 

 

Net income (loss) per share - basic

 

$

1.20

 

 

$

(0.59

)

Weighted average shares outstanding - basic

 

 

45,575

 

 

 

45,311

 

 

 

 

 

 

 

 

Net income (loss) per share - diluted

 

$

1.19

 

 

$

(0.59

)

Weighted average shares outstanding - diluted

 

 

45,922

 

 

 

45,311

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements (unaudited)

 

4


 

ABIOMED, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

(in thousands)

 

 

 

For the Three Months Ended June 30,

 

 

 

2022

 

 

2021

 

Net income (loss)

 

$

54,554

 

 

$

(26,525

)

Other comprehensive loss:

 

 

 

 

 

 

Foreign currency translation (losses) gains

 

 

(8,729

)

 

 

83

 

Unrealized losses on derivative instrument

 

 

(384

)

 

 

(217

)

Net unrealized losses on marketable securities, net of tax

 

 

(1,998

)

 

 

(632

)

Other comprehensive loss

 

 

(11,111

)

 

 

(766

)

 

 

 

 

 

 

 

Comprehensive income (loss)

 

$

43,443

 

 

$

(27,291

)

 

The accompanying notes are an integral part of the condensed consolidated financial statements (unaudited)

 

5


 

ABIOMED, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

(in thousands, except share data)

 

 

 

Common Stock

 

 

Treasury Stock

 

 

Additional Paid

 

 

Retained

 

 

Accumulated Other

 

 

Total Stockholders'

 

 

 

Shares

 

 

Par value

 

 

Shares

 

 

Amount

 

 

in Capital

 

 

Earnings

 

 

Comprehensive Loss

 

 

Equity

 

Balance, March 31, 2022

 

 

45,545,438

 

 

 

455

 

 

 

2,713,125

 

 

 

(304,555

)

 

 

870,074

 

 

 

964,512

 

 

 

(27,160

)

 

 

1,503,326

 

Restricted stock units issued

 

 

105,701

 

 

 

2

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

1

 

Stock options exercised

 

 

18,136

 

 

 

1

 

 

 

 

 

 

 

 

 

1,530

 

 

 

 

 

 

 

 

 

1,531

 

Return of common stock to pay withholding taxes on restricted stock units

 

 

(42,046

)

 

 

(1

)

 

 

42,046

 

 

 

(10,949

)

 

 

 

 

 

 

 

 

 

 

 

(10,950

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,362

 

 

 

 

 

 

 

 

 

13,362

 

Stock repurchase program

 

 

(60,282

)

 

 

(1

)

 

 

60,282

 

 

 

(14,516

)

 

 

 

 

 

 

 

 

 

 

 

(14,517

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,111

)

 

 

(11,111

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

54,554

 

 

 

 

 

 

54,554

 

Balance, June 30, 2022

 

 

45,566,947

 

 

$

456

 

 

 

2,815,453

 

 

$

(330,020

)

 

$

884,965

 

 

$

1,019,066

 

 

$

(38,271

)

 

$

1,536,196

 

 

 

 

 

Common Stock

 

 

Treasury Stock

 

 

Additional Paid

 

 

Retained

 

 

Accumulated Other

 

 

Total Stockholders'

 

 

 

Shares

 

 

Par value

 

 

Shares

 

 

Amount

 

 

in Capital

 

 

Earnings

 

 

Comprehensive Loss

 

 

Equity

 

Balance, March 31, 2021

 

 

45,270,948

 

 

$

453

 

 

 

2,658,454

 

 

$

(288,030

)

 

$

800,690

 

 

$

828,007

 

 

$

(11,445

)

 

$

1,329,675

 

Restricted stock units issued

 

 

85,284

 

 

 

1

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Stock options exercised

 

 

55,757

 

 

 

1

 

 

 

 

 

 

 

 

 

2,119

 

 

 

 

 

 

 

 

 

2,120

 

Return of common stock to pay withholding taxes on restricted stock units

 

 

(34,274

)

 

 

(1

)

 

 

34,274

 

 

 

(9,589

)

 

 

 

 

 

 

 

 

 

 

 

(9,590

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,608

 

 

 

 

 

 

 

 

 

12,608

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(766

)

 

 

(766

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(26,525

)

 

 

 

 

 

(26,525

)

Balance, June 30, 2021

 

 

45,377,715

 

 

$

454

 

 

 

2,692,728

 

 

$

(297,619

)

 

$

815,416

 

 

$

801,482

 

 

$

(12,211

)

 

$

1,307,522

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements (unaudited)

6


 

ABIOMED, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

 

 

 

For the Three Months Ended June 30,

 

 

 

2022

 

 

2021

 

Operating activities:

 

 

 

 

 

 

Net income (loss)

 

$

54,554

 

 

$

(26,525

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

6,620

 

 

 

6,907

 

Acquired in-process research & development

 

 

 

 

 

115,490

 

Bad debt expense (recoveries)

 

 

11

 

 

 

(59

)

Stock-based compensation

 

 

13,362

 

 

 

12,608

 

Write-down of inventory and other

 

 

2,570

 

 

 

3,508

 

Accretion on marketable securities

 

 

587

 

 

 

918

 

Change in fair value of other investments

 

 

(278

)

 

 

(17,648

)

Gain on previously held interest in preCARDIA

 

 

 

 

 

(20,980

)

Deferred tax provision

 

 

(6,373

)

 

 

6,299

 

Change in fair value of contingent consideration

 

 

(3,359

)

 

 

871

 

Other non-cash operating activities

 

 

1,080

 

 

 

751

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(1,881

)

 

 

8,763

 

Inventories

 

 

(6,510

)

 

 

(5,770

)

Prepaid expenses and other assets

 

 

3,117

 

 

 

(8,697

)

Accounts payable

 

 

1,438

 

 

 

(4,762

)

Accrued expenses and other liabilities

 

 

5,583

 

 

 

(16,037

)

Deferred revenue

 

 

(2,418

)

 

 

(278

)

Net cash provided by operating activities

 

 

68,103

 

 

 

55,359

 

Investing activities:

 

 

 

 

 

 

Purchases of marketable securities

 

 

(121,897

)

 

 

(139,021

)

Proceeds from the sale and maturity of marketable securities and other

 

 

141,385

 

 

 

123,823

 

Purchases of other investments

 

 

(4,591

)

 

 

(3,866

)

Acquisition of preCARDIA, net of cash acquired

 

 

 

 

 

(82,821

)

Purchases of property and equipment

 

 

(6,783

)

 

 

(7,170

)

Net cash provided by (used for) investing activities

 

 

8,114

 

 

 

(109,055

)

Financing activities:

 

 

 

 

 

 

Proceeds from the exercise of stock options

 

 

1,531

 

 

 

2,120

 

Taxes paid related to net share settlement upon vesting of stock awards

 

 

(10,950

)

 

 

(9,590

)

Repurchase of common stock

 

 

(14,517

)

 

 

 

Net cash used for financing activities

 

 

(23,936

)

 

 

(7,470

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(4,607

)

 

 

3,910

 

Net increase (decrease) in cash and cash equivalents

 

 

47,674

 

 

 

(57,256

)

Cash and cash equivalents at beginning of period

 

 

132,818

 

 

 

232,710

 

Cash and cash equivalents at end of period

 

$

180,492

 

 

$

175,454

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid for income taxes, net of refunds

 

$

3,542

 

 

$

14,998

 

Supplemental disclosure of non-cash activities:

 

 

 

 

 

 

Property and equipment in accounts payable and accrued expenses

 

 

564

 

 

 

1,014

 

Right-of-use assets obtained in exchange for lease liabilities

 

 

188

 

 

 

283

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements (unaudited)

7


 

ABIOMED, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(In thousands, except share data)

 

 

Note 1. Nature of Operations

ABIOMED, Inc. (the “Company” or “ABIOMED”) is a leading provider of medical technology that provides circulatory support and oxygenation. The Company's products are designed to enable the heart to rest by improving blood flow and/or performing the pumping of the heart. The Company’s products are used in the cardiac catheterization lab, or cath lab, by interventional cardiologists and in the heart surgery suite by cardiac surgeons for patients who are in need of hemodynamic support prophylactically or emergently before, during or after angioplasty or heart surgery procedures.
 

Note 2. Basis of Presentation and Summary of Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial reporting as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”) and in accordance with Article 10 of Regulation S-X. Accordingly, they do not include all of the information and note disclosures required by GAAP for complete financial statements. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022 that has been filed with the SEC.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all normal and recurring adjustments that are necessary for a fair presentation of results for the interim periods presented. The results of operations for any interim period may not be indicative of results for the full fiscal year or any other subsequent period. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results may differ from these estimates.

There have been no changes in the Company’s significant accounting policies for the three months ended June 30, 2022 as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022 that has been filed with the SEC.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results may differ from these estimates.

COVID-19 Pandemic

The Company is subject to additional risks and uncertainties as a result of the ongoing novel coronavirus (“COVID-19”) pandemic. Since March 2020, the ongoing COVID-19 pandemic has adversely impacted and is likely to further adversely impact the Company’s business and markets, including the Company’s workforce and the operations of its customers, suppliers, and business partners. While the COVID-19 (including new variants of COVID-19) pandemic remains fluid and continues to evolve differently across various geographies, the Company believes it is likely to continue to experience variable impacts on its business.

To ensure the health and safety of its global employees, the Company continues to offer onsite COVID-19 testing and vaccinations in order to maintain a safe working environment. The Company’s proactive testing and vaccination programs have reduced exposure with early detection and enabled its manufacturing facilities to operate at full capacity.

The depth and extent to which the COVID-19 pandemic may directly or indirectly impact the Company’s business, results of operations, financial condition and individual markets is dependent upon various factors, including the spread of additional variants; the availability of vaccinations, personal protective equipment, intensive care unit (“ICU”) and operating room capacity, and medical staff; and government interventions to reduce the spread of the virus. When COVID-19 infection rates spike in a particular region, the Company’s patient utilization volumes have generally been negatively impacted as hospitals face capacity limitations, staffing shortages and some in-patient treatments have been deferred.

While patient utilization increased in the first quarter of fiscal year 2023, sales were impacted by slower than expected improvements in hospital staffing shortages. The Company continues to closely monitor the impact of COVID-19 on all aspects of its business and geographies, including any impact on the Company’s customers, including the ongoing hospital labor shortages, employees, suppliers, vendors, business partners and distribution channels, as well as on procedures and the demand for its products by keeping apprised of local, regional, and global COVID-19 surges (including new variants of the virus).

While the Company cannot reliably estimate the extent to which the COVID-19 pandemic may impact patient utilization and revenues of its products, the Company's focus is to increase patient utilization of its Impella devices. As of the date of issuance of
these financial statements, the extent to which the COVID-19 pandemic may materially adversely affect the Company’s financial condition, liquidity or results of operations is uncertain.

8


 

Recently Adopted Accounting Pronouncements

In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” an amendment focused on increasing transparency of government assistance including the disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. The Company adopted ASU 2021-10 as of April 1, 2022, on a prospective basis, and the adoption did not have a material impact on the Company’s condensed consolidated financial statements.

Recently Issued Accounting Pronouncements Not Yet Effective

No new accounting pronouncements issued or effective during the period had, or are expected to have, a material impact on the consolidated financial statements.

Note 3. Acquisitions

Acquisition of preCARDIA, Inc.

The Company acquired 100% interest in preCARDIA , Inc. (“preCARDIA”) on May 28, 2021. preCARDIA is a developer of a proprietary catheter and controller that is expected to complement the Company’s product portfolio to expand options for patients with acute decompensated heart failure (“ADHF”). The preCARDIA system is uniquely designed to rapidly treat ADHF-related volume overload by effectively reducing cardiac filling pressures and promoting decongestion to improve overall cardiac and renal function. The Company determined that substantially all of the fair value was concentrated in the acquired in-process research and development asset in accordance with ASC 805 Business Combinations. As such, the acquisition was accounted for as an asset acquisition.

The Company acquired preCARDIA for a purchase price of $115.2 million. The purchase price included cash consideration of $82.8 million for the remaining interest in preCARDIA, paid to the selling shareholders and for transaction costs associated with the acquisition, and $32.4 million representing the Company’s previously owned minority interest in preCARDIA. The Company recognized a gain of $21.0 million related to its previously owned minority interest in preCARDIA within the condensed consolidated statement of operations for the three months ended June 30, 2021.

In connection with the acquisition, the Company acquired net assets of $115.2 million, which included $115.5 million related to the fair value of the in-process research and development asset and $0.3 million for net liabilities assumed. Since the acquired technology platform is pre-commercial and has not reached technical feasibility, the cost of the in-process research and development asset was expensed, resulting in a charge of $115.5 million to the condensed consolidated statement of operations for the three months ended June 30, 2021. In connection with the acquisition, the Company acquired a license agreement, under which there is a potential payout of $5 million based on the achievement of a commercial milestone.

Note 4. Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the treasury stock method by dividing net income by the weighted average number of dilutive common shares outstanding during the period. Diluted shares outstanding is calculated by adding to the weighted average shares outstanding any potential dilutive securities outstanding for the period. Potential dilutive securities include stock options, restricted stock units, performance-based stock awards and shares to be purchased under the Company’s employee stock purchase plan.

For purposes of the diluted net income (loss) per share calculation, potential dilutive securities are excluded from the calculation if their effect would be anti-dilutive. As such, basic and diluted net loss per share are the same for periods with a net loss.

The Company’s basic and diluted net income (loss) per share were as follows:


 

 

 

For the Three Months Ended June 30,

 

 

 

2022

 

 

2021

 

Net income (loss) per share – basic

 

(in thousands, except per share data)

 

Net income (loss)

 

$

54,554

 

 

$

(26,525

)