LumiraDx Reports Third Quarter 2021 Financial Results

LONDON, Nov. 10, 2021 /PRNewswire/ — LumiraDx (Nasdaq:LMDX), a next-generation point of care (POC) diagnostics company, today announced financial results for the quarter ended September 30, 2021.

  • Revenue of $109.1M for the three months ended Sept. 30, 2021 and $303.2M for the nine months ended Sept. 30, 2021 rose significantly over revenue of $139.2M for the twelve months ended Dec. 31, 2020 on strong traction for our long-term strategy
  • Platform revenue driven by higher COVID testing rates in all markets, especially U.S.; uptick in Europe for COVID Ag Pool tests enabling high throughput screening
  • Fast Lab Solutions doubled its business enabling fast, accurate testing for laboratory customers
  • Positive market development for INR tests for monitoring patients on oral anticoagulation therapy and D-Dimer for diagnosing deep vein thrombosis and pulmonary embolism
  • Steady progress expanding geographies and testing menu for 30+ common health conditions in our planned pipeline

“LumiraDx’s disruptive next-generation platform is just beginning to drive the transformation of community-based testing,” said Chairman and CEO Ron Zwanziger: “Our first financial results as a public company demonstrate LumiraDx’s tremendous growth potential driven by the need for fast, accurate and comprehensive diagnostic information to healthcare providers at the point of need. Our five platform tests in the market are delivering strong performance and we continue to make progress to expand our testing menu for diagnosing common conditions and improving health outcomes around the world.”

2021 Third Quarter and First Nine Months Financial Highlights

For the first nine months of 2021, LumiraDx delivered $303.2 million in revenue compared to $26.9 million for the same period last year and $139.2 million for full year 2020. The company currently expects full year revenue for 2021 to be substantially in line with the average consensus analyst estimate of $367 million.   

The pandemic accelerated the company’s vision to transform point-of-care diagnostics, enabling more than 19,300 Platforms shipped to customers as of the end of September 2021.  

For the third quarter of 2021, LumiraDx reported $109.1 million in revenue compared to $13.9 million for the same period last year. Covid Ag test strips accounted for $92.0 million of revenue in the third quarter of 2021 driven by higher testing rates in all markets, while Fast Lab Solutions delivered revenue of $10.3 million as adoption of our unique molecular chemistry has been accelerating.

Gross margin for the third quarter of 2021 was 36% and gross margin for the nine months ended September 30, 2021 was 32%. Margins were negatively impacted by non-recurring costs related to our rapid increase in production capacity and capabilities.

Research and development costs were $35.4 million in the third quarter of 2021. This represents an increase of 27% over the third quarter in 2020 as we continued to increase capabilities, opened our new R&D center in Glasgow and further resourced our development teams for continued pipeline delivery. 

SG&A expenses for the third quarter of 2021 of $58.9 million includes an IFRS 2 charge of $22.2 million for the difference in the fair value of the shares deemed to have been issued by LumiraDx in the merger transaction to CA Healthcare shareholders and the net assets of CA Healthcare and $8.6 million of LumiraDx transaction costs as part of LumiraDx’s transaction to go public on Nasdaq. Excluding these items, SG&A expenses were $28.1 million, an increase of $15.9 million from the third quarter in 2020 as we expanded staffing globally to support the commercial growth of LumiraDx’s Platform and Fast Lab Solutions.

Net income for the third quarter of 2021 was $84.8 million, or $0.46 per fully diluted share.  Net income arose from certain accounting gains on the conversion of our debt and equity securities as part of the merger transaction. Our non-IFRS adjusted net loss for the period, excluding merger expenses and excluding amortization, share-based payment expenses and unrealized foreign exchange gains was $29.8 million, or a loss of $0.16 per share.

At September 30, 2021, LumiraDx had $300 million in senior debt and $18 million in other term debt. The company’s cash balance at September 30, 2021 was $217.7 million.

Conference Call

LumiraDx’s senior management team will host a conference call today at 8:00 AM ET to discuss the company’s financial results and business updates. Call in details and a link to view the webcast may be found at https://investors.lumiradx.com/news-and-events/investor-calendar.  A replay of the webcast will be available on the Investor’s section of the company’s website at investors.lumiradx.com shortly after the conclusion of the call. The webcast will be archived for 90 days.

About LumiraDx

LumiraDx (Nasdaq: LMDX) is a next-generation point of care diagnostics company that is transforming community-based healthcare. Founded in 2014, LumiraDx manufactures and commercializes an innovative diagnostic Platform that supports a broad menu of tests with lab comparable performance at the point of care. LumiraDx diagnostic testing solutions are being deployed by governments and leading healthcare institutions across laboratories, urgent care, physician offices, pharmacies, schools, and workplaces to screen, diagnose, and monitor wellness as well as disease. LumiraDx has, on the market and in development, 30+ tests covering infectious diseases, cardiovascular diseases, diabetes, and coagulation disorders, all on the LumiraDx Platform. In addition, LumiraDx has a comprehensive portfolio of fast, accurate, and cost-efficient COVID-19 testing solutions from the lab to point of need.
LumiraDx is based in the UK with more than 1500 employees worldwide.

Further information on LumiraDx and the LumiraDx Platform is available at www.lumiradx.com

Contact:
Colleen McMillen
[email protected] 
+1.917.344.9360

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding the effectiveness of our strategy, regulatory progress and the advancement of our pipeline of tests, and the benefits and performance of our tests. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements, including, among others, general economic, political and business conditions; the effect of COVID-19 on LumiraDx’s business and financial results; obtaining or maintaining regulatory approval, authorization or clearance for our tests; and those factors discussed under the header “Risk Factors” in the Proxy Statement and Prospectus filed pursuant to Rule 424B(3) with the Securities and Exchange Commission, or SEC on September 10, 2021 and other filings with the SEC. Although LumiraDx believes that it has a reasonable basis for each forward-looking statement contained in this press release, LumiraDx cautions you that these statements are based on a combination of facts and factors currently known by it and its projections of the future, about which it cannot be certain. LumiraDx undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise.

Non-IFRS Financial Measures

We present non-IFRS financial measures because we believe that they and other similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. We also use these measures internally to establish forecasts, budgets and operational goals to manage and monitor our business, as well as evaluate our underlying historical performance, as we believe that these non-IFRS financial measures depict the true performance of the business by encompassing only relevant and controllable events, enabling us to evaluate and plan more effectively for the future. The non-IFRS financial measures may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our operating results as reported under IFRS as issued by the IASB. Non-IFRS financial measures and margins are not measurements of our performance, financial condition or liquidity under IFRS as issued by the IASB and should not be considered as alternatives to [operating loss, gross margin or net income (loss)] or any other performance measures, derived in accordance with IFRS as issued by the IASB or any other generally accepted accounting principles.

We define non-IFRS operating loss and non-IFRS net income (loss) as operating loss and net income (loss), respectively, excluding amortization, share-based payments, IFRS 2 listing expense, change in fair value of financial instruments, foreign exchange (gain)/loss, dividends on preferred shares and non-cash interest.  We recommend that you review the reconciliation of the non-IFRS measure to the most directly comparable IFRS financial measure provided in the financial statement tables included below, and that you not rely on any single financial measure to evaluate our business.

LUMIRADX LIMITED

Unaudited Consolidated Statement of Financial Position

DECEMBER 31, 2020

SEPTEMBER 30, 2021

(in thousands, except share data)

ASSETS

NonCurrent Assets

Other non-current assets

$

241

$

545

Intangibles and goodwill

40,723

38,208

Right-of-Use Assets

10,386

15,258

Property, plant and equipment

87,082

155,084

Total Non-Current Assets

138,432

209,095

Current Assets

Inventories

85,516

178,163

Tax receivable

20,680

13,281

Trade and other receivables

109,295

93,133

Restricted Cash

2,455

2,442

Cash and cash equivalents

158,717

215,285

Total Current Assets

376,663

502,304

TOTAL ASSETS

$

515,095

$

711,399

LIABILITIES AND EQUITY

Liabilities

Non-Current Liabilities

Debt due after more than one year

$

(139,734)

$

(308,399)

Preferred shares

(451,721)

Lease liabilities

(8,991)

(13,432)

Warrant liability

(6,690)

Deferred tax liabilities

(1,230)

(910)

Total Non-Current Liabilities

(601,676)

(329,431)

Current Liabilities

Debt due within one year

(147,238)

(557)

Trade and other payables

(138,783)

(191,143)

Lease liabilities due within one year

(2,114)

(4,874)

Total Current Liabilities

(288,135)

(196,574)

Equity

Share capital and share premium

(152,732)

(769,217)

Foreign currency translation reserve

19,905

17,532

Other reserves

(99,821)

(123,383)

Accumulated deficit

607,157

690,211

Total equity attributable to equity holders of the
parent

374,509

(184,857)

Non-controlling interests

207

(537)

Total Equity

374,716

(185,394)

TOTAL EQUITY AND LIABILITIES

$

(515,095)

$

(711,399)

 

LUMIRADX LIMITED

Unaudited Consolidated Statement of Profit and Loss and Comprehensive Income

THREE MONTHS ENDED
SEPTEMBER 30,

NINE MONTHS ENDED
SEPTEMBER 30,

2021

2020

2021

2020

(in thousands, except share

and per share data)

Revenue

Products

$

108,131

$

12,688

$

300,064

$

23,318

Services

950

1,240

3,111

3,560

Total Revenue

109,081

13,928

303,175

26,878

Cost of sales

Products

70,066

12,397

205,326

18,915

Services

175

482

829

1,425

Total Cost of Sales

70,241

12,879

206,155

20,340

Gross Profit

38,840

1,049

97,020

6,538

   Gross Profit Margin

36

%

8

%

32

%

24

%

Research and development expenses

35,396

27,919

96,399

79,843

Selling, marketing and administrative expenses

58,920

12,227

123,918

30,314

Operating Loss

(55,476)

(39,097)

(123,297)

(103,619)

Finance income

178,832

264

118,610

774

Finance expense

(37,589)

(27,970)

(103,949)

(75,596)

Net finance expense

141,243

(27,706)

14,661

(74,822)

Gain/(Loss) before Tax

85,767

(66,803)

(108,636)

(178,441)

Tax (provision)/credit for the period

(994)

4,473

(2,551)

9,143

Gain/(Loss) for the period

$

84,773

$

(62,330)

$

(111,187)

$

(169,298)

Loss attributable to non-controlling interest

34

36

322

(213)

Net gain/(loss) attributable to equity
holders of parent
basic and diluted

$

84,739

$

(62,366)

$

(111,509)

$

(169,085)

Net gain/(loss) per share attributable to equity
holders of parent—basic

$

0.63

$

(0.47)

$

(0.84)

$

(1.28)

Net gain/(loss) per share attributable to equity
holders of parent—diluted

$

0.46

$

(0.47)

$

(0.84)

$

(1.28)

Weighted-average number of Ordinary Shares
used in loss per share—basic

135,546,183

132,191,196

132,649,878

132,192,865

Weighted-average number of Ordinary Shares
used in loss per share—diluted

183,227,228

132,191,196

132,649,878

132,192,865

 

LUMIRADX LIMITED

Unaudited Consolidated Statement of Cash Flows

THREE MONTHS
ENDED SEPTEMBER 30,

NINE MONTHS ENDED
SEPTEMBER 30,

2021

2020

2021

2020

(in thousands, except share

and per share data)

Cash Flows from Operating Activities

Income/(Loss) for the period

$

84,773

$

(62,330)

$

(111,187)

$

(169,298)

Adjustments to reconcile loss for the period to net cash
used in operating activities:

Depreciation

7,134

1,948

14,673

4,935

Amortization

587

589

1,755

1,750

Net finance (income)/expenses

(146,807)

22,261

(30,748)

58,607

Share based payment expense

4,096

696

29,377

2,265

Increase in tax receivable

(1,466)

(4,666)

(2,839)

(9,208)

Accrued preferred shares dividends

5,445

5,445

16,156

16,215

IFRS 2 charge for difference in fair value of shares
deemed issued

22,214

22,214

Changes to working capital:

   Inventories

(4,188)

(20,531)

(92,995)

(31,824)

   Trade and other receivables

(26,093)

(18,477)

27,526

(12,534)

   Trade payables and other liabilities

29,825

8,294

43,688

14,426

Net Cash used in Operating Activities

(24,480)

(66,771)

(82,380)

(124,666)

Cash Flows from Investing Activities

Purchases of property, plant, equipment

(19,678)

(9,120)

(81,419)

(35,655)

Purchases of intangible assets

(23)

(45)

Cash paid for business investments

(1,968)

Cash received from merger

38,244

38,244

Net Cash generated from/(used in) Investing
Activities

18,566

(9,143)

(45,143)

(35,700)

Cash Flows from Financing Activities

Proceeds from issuance of convertible notes, net of
issuance costs

70,917

70,917

Proceeds from debt issuance, net of issuance costs

361,729

Proceeds from shares issued on the exercise of share
options

15

15

Repayment of principal portion of lease liabilities

(2,572)

(925)

(4,830)

(2,028)

Cash interest paid, net of interest received

(9,035)

(4,026)

(23,662)

(7,894)

Fee on early extinguishment of debt

(37)

(2,387)

Repayments of debt

(66)

(52)

(140,286)

(244)

Net Cash (used in)/generated from Financing
Activities

(11,710)

65,929

190,564

60,766

Net (Decrease)/Increase in Cash and Cash
Equivalents

(17,624)

(9,985)

63,041

(99,600)

Movement in Cash and Cash Equivalents

Cash and cash equivalents at the beginning of the
period

246,455

47,013

161,172

139,387

Exchange gain/(loss) on cash and cash equivalents

(11,104)

521

(6,486)

(2,238)

Net increase/(decrease) in cash and cash equivalents

(17,624)

(9,985)

63,041

(99,600)

Cash and Cash Equivalents at the end of the period

$

217,727

$

37,549

$

217,727

$

37,549

 

LUMIRADX LIMITED

Reconciliation of IFRS Financial Measures to Non-IFRS Financial Measures

THREE MONTHS ENDED SEPTEMBER 30,

Operating Loss

Net Income/(Loss)

Diluted EPS

2021

2020

2021

2020

2021

2020

(in thousands except share and per share data)

IFRS Financial Measure

$

(55,476)

$

(39,097)

$

84,773

$

(62,330)

$

0.46

$

(0.47)

Amortization

717

609

717

609

Share-based payments

4,097

784

4,097

784

0.02

0.01

SPAC merger transaction costs1

30,809

30,809

0.17

Change in fair value of financial instruments

(162,317)

29,740

(0.88)

0.22

Foreign exchange (gain)/loss

18,095

(15,198)

0.10

(0.11)

Dividends on preferred shares

(61,002)

5,445

(0.33)

0.04

Non-cash interest

55,009

3,877

0.30

0.03

Non-IFRS Adjusted Financial Measure

$

(19,853)

$

(37,704)

$

(29,819)

$

(37,073)

$

(0.16)

$

(0.28)

NINE MONTHS ENDED SEPTEMBER 30,

Operating Loss

Net Income/(Loss)

Diluted EPS

2021

2020

2021

2020

2021

2020

(in thousands except share and per share data)

IFRS Financial Measure

$

(123,297)

$

(103,619)

$

(111,187)

$

(169,298)

$

(0.84)

$

(1.28)

Amortization

1,885

1,769

1,885

1,769

0.02

0.01

Share-based payments

26,904

2,353

26,904

2,353

0.20

0.02

SPAC merger transaction costs1

30,809

30,809

0.23

Change in fair value of financial instruments

(102,065)

29,740

(0.77)

0.23

Foreign exchange (gain)/loss

13,267

11,058

0.10

0.08

Dividends on preferred shares

(50,291)

16,215

(0.38)

0.12

Non-cash interest

96,594

9,782

0.73

0.08

Non-IFRS Adjusted Financial Measure

$

(63,699)

$

(99,497)

$

(94,084)

$

(98,381)

$

(0.71)

$

(0.74)

1 – Includes an IFRS 2 charge of $22.2 million for the difference in the fair value of the shares deemed to have
been issued by LumiraDx in the merger transaction to CA Healthcare shareholders and the net assets of CA
Healthcare and $8.6 million of LumiraDx transaction costs.

 

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SOURCE LumiraDx

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