LA JOLLA, Calif., Feb. 12 /PRNewswire/ -- Advanced Tissue Sciences, Inc.
(Nasdaq: ATIS) today announced its results for the fourth quarter and year
ended December 31, 2000. The Company reported a loss of 5 cents per share or
$3.3 million for the fourth quarter of 2000, compared to a loss of 15 cents a
share or $8.2 million for the same quarter in 1999. For the year 2000, the
Company lost 41 cents a share or $24.6 million, compared to a loss of 45 cents
or $21.9 million in 1999.
As anticipated, fourth quarter 2000 revenue was $5.8 million, compared to
$8.9 million in the fourth quarter of 1999. For the year 2000, revenue was
$25.3 million, compared to $42.8 million in 1999. In 1999 the Company
received a $15 million milestone payment from Smith & Nephew, the recognition
of which impacted revenues in the fourth quarter and full year 1999.
Separately, the Dermagraft Joint Venture reported sales of TransCyte(TM)
and Dermagraft(R) to customers of $1.2 million for the fourth quarter ended
December 31, 2000 compared to $0.7 million in the fourth quarter ended
December 31, 1999. Combined sales for TransCyte and Dermagraft for the year
ended December 31, 2000 increased to $4.3 million, from sales of $2.6 million
in 1999. TransCyte sales were $3.9 million of the total sales reported for
the year ended December 31, 2000 as compared to $2.2 million for the year
ended December 31, 1999.
"Our focus on cost management programs and the completion of a private
placement last year allowed us to strengthen our balance sheet as we entered
2001," said Arthur J. Benvenuto, Chairman and Chief Executive Officer of
Advanced Tissue Sciences. "Consistent with our business strategy of
developing a broad portfolio of products to enhance human healing, this year
we are focused on the potential U.S. launch of three new products. Pending
FDA approval, these include the launch of Dermagraft for the treatment of
diabetic foot ulcers, and the commercialization of injectable human collagen
for wrinkle revision. In addition, the Company is planning the introduction
of our nutrient solution, Nouricel(TM), as an additive in skin care products."
As of December 31, 2000 the Company had cash, cash equivalents and
short-term investments of approximately $31 million. The management of the
Company believes that existing funds are sufficient to maintain planned
operations into 2002, and that the potential new product introductions,
through various strategic alliances, will accelerate revenues.
As well as releasing the year end results, Advanced Tissue Sciences is
scheduled to present today at the 38th Institutional Investor Conference
sponsored by the Wall Street Analyst Forum. The meeting will be held at the
Roosevelt Hotel in New York City on February 12-16, 2001. Arthur J.
Benvenuto and Nikhil A. Mehta, Chief Financial Officer, will present an
overview of the Company's business strategy at 11:50 a.m. EST.
You may view and listen to the presentation over the Internet by visiting
our web site at http://www.advancedtissue.com. For those who cannot listen to the
live broadcast, a replay will be available on our web site until 8:00 p.m. EST
on Monday, February 19, 2001.
Advanced Tissue Sciences is a tissue engineering company utilizing its
proprietary core technology to develop and manufacture human-based tissue
products for tissue repair and transplantation. The Company has two joint
ventures with Smith & Nephew. The first covers the application of Advanced
Tissue Sciences' tissue engineering technology for skin wounds and includes
Dermagraft for the treatment of diabetic foot ulcers, TransCyte for the
temporary covering of second and third-degree burns, and future developments
for venous ulcers, pressure ulcers, burns and other non-aesthetic wound care
treatments. The second joint venture is developing tissue-engineered
orthopedic cartilage, initially focusing on the repair of cartilage in knee
joints. The Company also has a strategic alliance with Inamed Corporation for
the development and marketing of several of Advanced Tissue Sciences'
human-based, tissue-engineered products for aesthetic and certain
reconstructive applications. In addition, the Company is developing products
for cardiovascular applications. For more information on Advanced Tissue
Sciences visit our web site at http://www.advancedtissue.com.
Statements in this press release that are not strictly historical may be
"forward-looking" statements which involve risks and uncertainties. In
addition, results for interim periods are not necessarily indicative of
results to be expected for the full year. No assurances can be given, for
example, that the Company will successfully implement its business strategy,
develop its current products, or any new products it may pursue, complete
clinical trials, obtain regulatory approvals (or that any such approvals will
be obtained on a timely basis), or be able to manufacture or successfully
commercialize such products. In particular, the Company will need to obtain
FDA approval of its PMA application for Dermagraft in the treatment of
diabetic foot ulcers and regulatory filings for human collagen. Actual
results may differ materially from those described in this press release due
to risks and uncertainties that exist in the Company's operations, including,
without limitation, a history of operating losses and accumulated deficits,
uncertainties related to clinical trials, the ability to obtain the
appropriate regulatory approvals, market acceptance of products, the Company's
reliance on collaborative relationships, patent protection, the ability to
obtain additional financing to continue operations when needed, as well as
other risks detailed from time to time in publicly available filings with the
Securities and Exchange Commission including, without limitation, Advanced
Tissue Sciences' Annual Report on Form 10-Q for the quarter ended September
30, 2000. The Company undertakes no obligation to release publicly the
results of any revision to these forward-looking statements to reflect events
or circumstances arising after the date hereof.
Advanced Tissue Sciences, Inc.
Condensed Consolidated Statements of Operations
(In Millions, except per share amounts)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2000 1999 2000 1999
Revenues:
Product sales to
related parties (1) $3.3 $3.5 $12.8 $13.7
Product sales to others 0.1 -- 0.1 --
Contracts and fees (2) 2.4 5.4 12.4 29.1
Total revenues 5.8 8.9 25.3 42.8
Costs and expenses:
Research and development 2.8 4.0 13.1 16.3
Cost of goods sold (1) 3.3 3.5 12.9 13.7
Selling, general
and administrative (3) 0.5 2.5 11.0 11.1
Total costs and expenses 6.6 10.0 37.0 41.1
Income (loss) from operations
before equity in losses
of joint ventures (0.8) (1.1) (11.7) 1.7
Equity in losses of
joint ventures (2.9) (6.2) (13.3) (21.6)
Loss from operations (3.7) (7.3) (25.0) (19.9)
Other income (expense), net 0.4 (0.8) 0.4 (1.4)
Net loss (3.3) (8.1) (24.6) (21.3)
Dividends on preferred stock -- (0.1) -- (0.6)
Net loss applicable
to common stock $(3.3) $(8.2) $(24.6) $(21.9)
Basic and diluted loss
per common share $(.05) $(.15) $(.41) $(.45)
Weighted average
shares (Millions) 64.172 54.900 60.575 48.507
Condensed Consolidated Balance Sheets
(In Millions)
December 31, December 31,
2000 1999
(Unaudited)
Assets:
Cash, cash equivalents
and short-term
investments $31.0 $26.1
Other current assets 9.1 8.2
Property, net 13.7 16.6
Other assets 5.3 8.5
Total assets $59.1 $59.4
Liabilities and
stockholders' equity:
Current liabilities $15.0 $23.6
Long-term liabilities 8.3 9.4
Redeemable preferred stock -- 5.0
Stockholders' equity 35.8 21.4
Total liabilities and
stockholders' equity $59.1 $59.4
(1) Product sales to related parties include sales of Dermagraft(R) and
TransCyte(TM) to a joint venture between the Company and Smith &
Nephew plc (the "Dermagraft Joint Venture") at cost.
(2) Contracts and fees for the year ended December 31, 1999 include the
recognition of a $15 million milestone payment received from Smith
& Nephew related to the expansion of the Dermagraft Joint Venture.
These payments were recognized into revenue in 1999 as the related
financial commitments were met, and for the fourth quarter of 1999
amounted to $1.4 million. Contracts and fees for the year ended
December 31, 2000 include the recognition of $3.6 million in revenue
related to $5 million in licensing payments previously received from
Inamed Corporation in 1999. This compares to $1.4 million recognized
in 1999. For each of the fourth quarters of 2000 and 1999,
$0.9 million was recognized.
(3) Selling, general and administrative includes a gain of $2.6 million
in the fourth quarter of 2000 related to a variable stock option.
This represents the reversal of a non-cash compensation expense
booked through the first three quarters of 2000 and relates to stock
options, exercised through the issuance of a loan, which are
accounted for as a variable stock option. As a result of the
variable option treatment, variability in the market price of the
Company's common stock can result in significant increases and
decreases in compensation expense from period to period.
SOURCE Advanced Tissue Sciences, Inc.
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Related links:
http://www.advancedtissue.com
Company News On-Call:
http://www.prnewswire.com/comp/532975.html or fax,
800-758-5804, ext. 532975
CONTACT:
Jana Stoudemire, Senior Director, Corporate
Communications of Advanced Tissue Sciences, Inc., 858-713-7802
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