LumiraDx Reports Third Quarter 2021 Financial Results

LumiraDx Reports Third Quarter 2021 Financial Results

PR Newswire

LONDON, Nov. 10, 2021

Strong Revenue Growth and Strategic Progress on Platform, Products and Pipeline

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.

LumiraDx

 

"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
Colleen.McMillen@lumiradx.com 
+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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