UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: October 23, 2014
(Date of earliest event reported)
Align Technology, Inc.
(Exact name of registrant as specified in its charter)
DE
(State or other jurisdiction
of incorporation)
0-32259
(Commission File Number)
94-3267295
(IRS Employer
Identification Number)
2560 Orchard Parkway, San Jose CA
(Address of principal executive offices)
95131
(Zip Code)
(408) 470-1000
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed 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:
- o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
- o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
- o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
- o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
- o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Item 2.02. Results of Operations and Financial Condition On October 23, 2014 Align Technology, Inc. ("Align") is issuing a press release and holding a conference call regarding its financial results for its third quarter ended September 30, 2014. The full text of the press release is furnished as Exhibit 99.1 to this Form 8-K. This information shall not be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: October 23, 2014 |
ALIGN TECHNOLOGY, INC.
By: /s/ Roger E. George |
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| Exhibit No. | Description |
| 99.1 | Press Release of Align Technology, Inc. dated October 23, 2014 |
SAN JOSE, CA -- (Marketwired - October 23, 2014) - Align Technology, Inc. (NASDAQ: ALGN)
- Revenues of $189.9 million, up 15.4% year-over-year
- Clear Aligner revenues up 16.0% and Scanner and Services revenues up 7.1% year-over-year
- Operating margin of 27.1%, compared to 25.2% in Q3 a year-ago
- Earnings per diluted share (EPS) of $0.47, compared to $0.42 in Q3 a year-ago
Align Technology, Inc. (NASDAQ: ALGN) today reported financial results for the third quarter ended September 30, 2014.
Total revenues for the third quarter of 2014 (Q3'14) were $189.9 million, a 15.4% increase year-over-year from $164.5 million for the third quarter of 2013 (Q3'13). Clear aligner case shipments in Q3'14 were 119.6 thousand, an 11.9% increase year-over-year from 106.9 thousand for Q3'13. Net profit for Q3'14 was $38.2 million, or $0.47 per diluted share, versus $34.5 million, or $0.42 per diluted share for Q3'13.
"I am pleased to report solid third quarter results with year-over-year growth driven by higher Invisalign volume across all customer channels and geographies, especially from International doctors. Third quarter results also reflect continued growth in the number of teenagers starting orthodontic treatment with Invisalign during the summer season," said Thomas M. Prescott, Align president and CEO. "As a result of solid revenue growth, better than expected gross margin and management of operating expenses, EPS was $0.03 above the high-end range of our outlook."
Summary Financial Comparisons
(In millions except for shipments and per share amounts)
Q3'14 Q2'14 Q3'13 Q/Q Y/Y
------------------------- --------- --------- --------- -------- --------
GAAP
------------------------- --------- --------- --------- -------- --------
Clear Aligner Shipments 119,615 119,300 106,900 +0.3% +11.9%
Net Revenues $ 189.9 $ 192.5 $ 164.5 (1.4)% +15.4%
Clear Aligner $ 178.1 $ 179.7 $ 153.6 (0.9)% +16.0%
Scanner and Services $ 11.7 $ 12.8 $ 11.0 (8.3)% +7.1%
Net Profit $ 38.2 $ 35.6 $ 34.5 +7.4% +10.7%
Earnings Per Share $ 0.47 $ 0.43 $ 0.42 +$0.04 +$0.05
Note: Changes and percentages are based on actual values and may effect
totals due to rounding
As of September 30, 2014, Align had $561.5 million in cash, cash equivalents and short-term and long-term marketable securities compared to $472.0 million as of December 31, 2013. During Q3'14, the Company repurchased 500,000 shares of stock, including 364,000 shares related to the completion of the Company's previously announced $70 million accelerated stock repurchase (ASR) and 136,000 shares amounting to $7.4 million in open market repurchases. The repurchases are part of Align's three-year, $300 million stock repurchase program announced on April 23, 2014, with $100 million of that amount authorized to be purchased through April 2015. Year-to-date, the Company repurchased 1.5 million shares for $77.4 million. The Company anticipates repurchasing the remaining $22.6 million of the first $100 million of the authorization over the next six months.
Q4 Fiscal 2014 Business Outlook
For the fourth quarter of 2014 (Q4'14), Align provides the following guidance:
- Clear aligner case shipments in a range of 125.1 thousand to 127.6 thousand, which reflects a year-over-year increase of 12.6% to 14.8%.
- Net revenues in a range of $194.9 million to $199.1 million, which reflects a year-over-year increase of 9.3% to 11.7%.
- Diluted EPS in a range of $0.47 to $0.50.
Align Web Cast and Conference Call
Align Technology will host a conference call today, October 23, 2014 at 4:30 p.m. ET, 1:30 p.m. PT, to review its third quarter 2014 results, discuss future operating trends and the business outlook. The conference call will also be web cast live via the Internet. To access the web cast, go to the "Events & Presentations" section under Company Information on Align's Investor Relations web site at http://investor.aligntech.com. To access the conference call, please dial 201-689-8261 approximately fifteen minutes prior to the start of the call. An archived audio web cast will be available beginning approximately one hour after the call's conclusion and will remain available for approximately 12 months. Additionally, a telephonic replay of the call can be accessed by dialing 877-660-6853 with conference number 13591983 followed by #. For international callers, please dial 201-612-7415 and use the same conference number referenced above. The telephonic replay will be available through 5:30 p.m. ET on October 30, 2014.
About Align Technology, Inc.
Align Technology is the leader in modern clear aligner orthodontics that designs, manufactures and markets the Invisalign® system, which provides dental professionals with a range of treatment options for adults and teenagers. Align also offers the iTero 3D digital scanning system and services for orthodontic and restorative dentistry. Align was founded in March 1997 and received FDA clearance to market the Invisalign system in 1998. Visit www.aligntech.com for more information.
For additional information about the Invisalign system or to find an Invisalign provider in your area, please visit www.invisalign.com. For additional information about the iTero 3D digital scanning system, please visit www.itero.com.
About Non-GAAP Financial Measures
While there are no non-GAAP adjustments to the three months ended September 30, 2014, we may use from time to time the following non-GAAP financial measures to supplement our consolidated financial statements: non-GAAP net profit and non-GAAP earnings per share, which exclude, as applicable, impairment of goodwill, impairment of long-lived assets, and any related income tax adjustments. The presentation of this financial information is not intended to be considered in isolation, or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our "core operating performance." Management believes that "core operating performance" represents Align's performance in the ordinary, on-going and customary course of its operations. Accordingly, management excludes from "core operating performance" certain expenditures and other items that may not be indicative of our operating performance including discrete cash and non-cash charges that are infrequent, or one-time in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management's internal evaluation of period-to-period comparisons. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making, and (2) they are provided to and used by our institutional investors and the analyst community to facilitate comparisons with prior and subsequent reporting periods. A reconciliation of the GAAP and non-GAAP financial measures for the nine months ended September 30, 2013 and a more detailed explanation of each non-GAAP financial measure and its uses are provided in the footnotes to the table captioned "Reconciliation of GAAP to non-GAAP Key Financial Metrics" included at the end of this release.
Forward-Looking Statement
This news release, including the tables below, contains forward-looking statements, including statements regarding certain business metrics for the fourth quarter of 2014, including, but not limited to, anticipated net revenues, gross margin, operating expenses, operating profit, diluted earnings per share, case shipments, additional common stock repurchases and cash, cash equivalents and short-term and long-term investments. Forward-looking statements contained in this news release and the tables below relating to expectations about future events or results are based upon information available to Align as of the date hereof. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. As a result, actual results may differ materially and adversely from those expressed in any forward-looking statement. Factors that might cause such a difference include, but are not limited to, difficulties predicting customer and consumer purchasing behavior, the willingness and ability of our customers to maintain and/or increase product utilization in sufficient numbers, the possibility that the development and release of new products does not proceed in accordance with the anticipated timeline, the possibility that the market for the sale of these new products may not develop as expected, the risks relating to Align's ability to sustain or increase profitability or revenue growth in future periods while controlling expenses, growth related risks, including capacity constraints and pressure on our internal systems and personnel, our ability to successfully achieve the anticipated benefits from the scanner and services business, continued customer demand for our existing and new products, changes in consumer spending habits as a result of, among other things, prevailing economic conditions, levels of employment, salaries and wages and consumer confidence, the timing of case submissions from our doctors within a quarter, acceptance of our products by consumers and dental professionals, foreign operational, political and other risks relating to Align's international manufacturing operations, Align's ability to protect its intellectual property rights, continued compliance with regulatory requirements, competition from existing and new competitors, Align's ability to develop and successfully introduce new products and product enhancements and the loss of key personnel. These and other risks are detailed from time to time in Align's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K for the fiscal year ended December 31, 2013, which was filed with the Securities and Exchange Commission on February 28, 2014. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Nine Months Ended
---------------------------- ----------------------------
September 30, September 30, September 30, September 30,
2014 2013 2014 2013
------------- ------------- ------------- -------------
Net revenues $ 189,876 $ 164,506 $ 563,053 $ 481,914
Cost of revenues 44,822 39,416 135,272 120,284
------------- ------------- ------------- -------------
Gross profit 145,054 125,090 427,781 361,630
------------- ------------- ------------- -------------
Operating
expenses:
Sales and
marketing 52,368 45,224 161,642 135,352
General and
administrative 28,285 27,487 84,533 84,862
Research and
development 12,854 10,915 39,523 33,113
Impairment of
goodwill - - - 40,693
Impairment of
long-lived
assets - - - 26,320
------------- ------------- ------------- -------------
Total operating
expenses 93,507 83,626 285,698 320,340
Operating profit 51,547 41,464 142,083 41,290
Interest and
other income
(expense), net (1,999) 449 (1,491) (874)
------------- ------------- ------------- -------------
Profit before
income taxes 49,548 41,913 140,592 40,416
Provision for
income taxes 11,301 7,376 34,301 18,542
------------- ------------- ------------- -------------
Net profit $ 38,247 $ 34,537 $ 106,291 $ 21,874
============= ============= ============= =============
Net profit per
share
- basic $ 0.47 $ 0.43 $ 1.31 $ 0.27
============= ============= ============= =============
- diluted $ 0.47 $ 0.42 $ 1.29 $ 0.26
============= ============= ============= =============
Shares used in
computing net
profit per share
- basic 80,629 79,967 80,924 80,592
============= ============= ============= =============
- diluted 82,014 81,848 82,443 82,549
============= ============= ============= =============
ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2014 2013
------------------- -------------------
ASSETS
Current assets:
Cash and cash equivalents $ 180,676 $ 242,953
Marketable securities, short-term 244,820 127,040
Accounts receivable, net 130,047 113,250
Inventories 15,983 13,968
Prepaid expenses and other current
assets 44,146 47,465
------------------- -------------------
Total current assets 615,672 544,676
Marketable securities, long-term 136,017 101,978
Property, plant and equipment, net 86,447 75,743
Goodwill and intangible assets, net 82,926 85,362
Deferred tax assets 19,714 15,766
Other assets 7,513 8,622
------------------- -------------------
Total assets $ 948,289 $ 832,147
=================== ===================
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 24,517 $ 17,718
Accrued liabilities 86,600 80,345
Deferred revenues 87,443 77,275
------------------- -------------------
Total current liabilities 198,560 175,338
Other long term liabilities 27,273 22,839
------------------- -------------------
Total liabilities 225,833 198,177
Total stockholders' equity 722,456 633,970
------------------- -------------------
Total liabilities and
stockholders' equity $ 948,289 $ 832,147
=================== ===================
ALIGN TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP KEY FINANCIAL METRICS
Reconciliation of GAAP to Non-GAAP Operating Expenses
(in thousands)
Nine Months Ended
-------------------------------------------
September 30, 2014 September 30, 2013
--------------------- ---------------------
GAAP Operating expenses $ 285,698 $ 320,340
Impairment of goodwill (1) - (40,693)
Impairment of long-lived
assets (2) - (26,320)
--------------------- ---------------------
Non-GAAP Operating expenses $ 285,698 $ 253,327
===================== =====================
Reconciliation of GAAP to Non-GAAP Operating Profit
(in thousands)
Nine Months Ended
-------------------------------------------
September 30, 2014 September 30, 2013
--------------------- ---------------------
GAAP Operating profit $ 142,083 $ 41,290
Impairment of goodwill (1) - 40,693
Impairment of long-lived
assets (2) - 26,320
--------------------- ---------------------
Non-GAAP Operating profit $ 142,083 $ 108,303
===================== =====================
Reconciliation of GAAP to Non-GAAP Net Profit
(in thousands, except per share amounts)
Nine Months Ended
-------------------------------------------
September 30, 2014 September 30, 2013
--------------------- ---------------------
GAAP Net profit $ 106,291 $ 21,874
Impairment of goodwill (1) - 40,693
Impairment of long-lived
assets (2) - 26,320
Income tax-related
adjustments (3) - (3,788)
--------------------- ---------------------
Non-GAAP Net profit $ 106,291 $ 85,099
===================== =====================
Diluted Net profit per share:
GAAP $ 1.29 $ 0.26
===================== =====================
Non-GAAP $ 1.29 $ 1.03
===================== =====================
Shares used in computing
diluted GAAP Net profit (loss)
per share 82,443 82,549
===================== =====================
Shares used in computing
diluted Non-GAAP Net profit
per share 82,443 82,549
===================== =====================
Notes:
There were no Non-GAAP adjustments for the three months ended September 30, 2014 or 2013.
(1) Impairment of goodwill. These costs represent non-cash write-downs of our goodwill generally related to negative trends in market and economic conditions, termination of relationships with distributors, or the increase in competitive environment related to our Scanner and Services reporting unit. We remove the impact of these charges to our operating performance to assist in assessing our ability to generate cash from operations. We believe this may be useful information to users of our financial statements; therefore, we have excluded these charges for purposes of calculating these non-GAAP measures to facilitate an evaluation of our current operating performance, particularly in terms of liquidity.
(2) Impairment of long-lived assets. These costs represent non-cash write-downs of our long-lived assets generally related to the increase in competitive environment related to our Scanner and Services reporting unit. As a result of these conditions, we have assessed that our asset group within the reporting unit was not recoverable and, therefore, recorded an impairment charge. We remove the impact of these charges to our operating performance to assist in assessing our ability to generate cash from operations. We believe this may be useful information to users of our financial statements; therefore, we have excluded these charges for purposes of calculating these non-GAAP measures to facilitate an evaluation of our current operating performance, particularly in terms of liquidity.
(3) Income tax-related adjustments. Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for discrete tax items and items excluded from GAAP income in calculating the non-GAAP financial measures presented above. Our estimated tax rate on non-GAAP income is determined annually and may be re-calculated during the year to take into account events or trends that we believe materially impact the estimated annual rate.
ALIGN TECHNOLOGY, INC.
Q3 2014 FINANCIAL AND BUSINESS METRICS
(in thousands except utilization and doctors trained)
Q1 Q2 Q3 Q4
2013 2013 2013 2013
Invisalign Clear Aligner Net
Revenues by Geography:
North America $ 97,045 $102,217 $103,888 $105,059
International 31,818 40,320 38,983 50,595
Non-case* 12,709 10,766 10,679 10,570
-------- -------- -------- --------
Total Clear Aligner Net
Revenues $141,572 $153,303 $153,550 $166,224
======== ======== ======== ========
YoY % growth 14.8% 14.7% 21.2% 25.1%
QoQ % growth 6.6% 8.3% 0.2% 8.3%
*includes Invisalign training,
ancillary products, and
retainers
Invisalign Clear Aligner Net
Revenues by Product:
Invisalign Full Products $112,780 $123,379 $125,169 $136,179
Invisalign Express Products 16,083 19,158 17,702 19,475
Non-case* 12,709 10,766 10,679 10,570
-------- -------- -------- --------
Total Clear Aligner Net
Revenues $141,572 $153,303 $153,550 $166,224
======== ======== ======== ========
Average Invisalign Selling Price
(ASP):
Worldwide ASP (1) $ 1,315 $ 1,345 $ 1,335 $ 1,400
Worldwide ASP, adjusted (2) $ 1,340 $ 1,355 $ 1,335 $ 1,400
International ASP $ 1,355 $ 1,480 $ 1,455 $ 1,630
(1) Invisalign case net revenues
/ Invisalign case shipments
(2) Adjusted for one-time
adjustments (eg. Q1'13 and Q2'13
grandfathered mid-course
correction deferrals)
Invisalign Clear Aligner Cases
Shipped by Geography:
North America 74,730 78,865 80,130 80,120
International 23,445 27,270 26,770 31,010
-------- -------- -------- --------
Total Cases Shipped 98,175 106,135 106,900 111,130
======== ======== ======== ========
Invisalign Clear Aligner Cases
Shipped by Product:
Invisalign Full Products 79,235 84,850 87,670 91,605
Invisalign Express Products 18,940 21,285 19,230 19,525
-------- -------- -------- --------
Total Cases Shipped 98,175 106,135 106,900 111,130
======== ======== ======== ========
Number of Invisalign Doctors Cases
Shipped To:
North America 17,280 18,070 18,140 18,495
International 5,840 6,355 6,510 6,925
-------- -------- -------- --------
Total Doctors Cases Shipped To 23,120 24,425 24,650 25,420
======== ======== ======== ========
Invisalign Doctor Utilization
Rates*:
North America 4.3 4.4 4.4 4.3
North American Orthodontists 8.0 8.0 8.4 8.0
North American GP Dentists 2.9 3.0 2.9 3.0
International 4.0 4.3 4.1 4.5
-------- -------- -------- --------
Total Utilization Rates 4.3 4.4 4.3 4.4
======== ======== ======== ========
* # of cases shipped/# of doctors
to whom cases were shipped
Number of Invisalign Doctors
Trained:
North America 755 1,130 795 1,460
International 970 1,020 875 1,060
-------- -------- -------- --------
Total Doctors Trained
Worldwide 1,725 2,150 1,670 2,520
======== ======== ======== ========
Total to Date Worldwide 78,220 80,370 82,040 84,560
======== ======== ======== ========
Scanner and Services Net Revenues:
North America Scanner and
Services $ 11,952 $ 10,454 $ 10,875 $ 11,980
International Scanner and
Services 56 71 81 88
-------- -------- -------- --------
Total Scanner and Net Revenues $ 12,008 $ 10,525 $ 10,956 $ 12,068
======== ======== ======== ========
Total Net Revenues by Geography:
Total North America Net Revenues $108,997 $112,671 $114,763 $117,039
Total International Net Revenues 31,874 40,391 39,064 50,683
Total Non-case Net Revenues 12,709 10,766 10,679 10,570
-------- -------- -------- --------
Total Worldwide Net Revenues $153,580 $163,828 $164,506 $178,292
======== ======== ======== ========
YoY % growth 13.7% 12.5% 20.5% 24.8%
QoQ % growth 7.5% 6.7% 0.4% 8.4%
Stock-based Compensation (SBC)
SBC included in Gross Profit $ 600 $ 600 $ 700 $ 700
SBC included in Operating
Expenses 5,800 6,700 6,900 4,500
-------- -------- -------- --------
Total SBC Expense $ 6,400 $ 7,300 $ 7,600 $ 5,200
======== ======== ======== ========
----------
FISCAL Q1 Q2 Q3
2013 2014 2014 2014
Invisalign Clear Aligner Net
Revenues by Geography:
North America $ 408,209 $107,910 $111,648 $113,349
International 161,716 49,848 55,988 53,439
Non-case* 44,724 10,481 12,099 11,350
--------- -------- -------- --------
Total Clear Aligner Net
Revenues $ 614,649 $168,239 $179,735 $178,138
========= ======== ======== ========
YoY % growth 19.0% 18.8% 17.2% 16.0%
QoQ % growth 1.2% 6.8% -0.9%
*includes Invisalign training,
ancillary products, and
retainers
Invisalign Clear Aligner Net
Revenues by Product:
Invisalign Full Products $ 497,507 $138,133 $147,158 $147,583
Invisalign Express Products 72,418 19,625 20,478 $ 19,205
Non-case* 44,724 10,481 12,099 11,350
--------- -------- -------- --------
Total Clear Aligner Net
Revenues $ 614,649 $168,239 $179,735 $178,138
========= ======== ======== ========
Average Invisalign Selling Price
(ASP):
Worldwide ASP (1) $ 1,350 $ 1,405 $ 1,405 $ 1,395
Worldwide ASP, adjusted (2) $ 1,360 $ 1,405 $ 1,405 $ 1,395
International ASP $ 1,490 $ 1,620 $ 1,625 $ 1,560
(1) Invisalign case net revenues
/ Invisalign case shipments
(2) Adjusted for one-time
adjustments (eg. Q1'13 and Q2'13
grandfathered mid-course
correction deferrals)
Invisalign Clear Aligner Cases
Shipped by Geography:
North America 313,845 81,420 84,850 85,405
International 108,495 30,760 34,450 34,210
--------- -------- -------- --------
Total Cases Shipped 422,340 112,180 119,300 119,615
========= ======== ======== ========
Invisalign Clear Aligner Cases
Shipped by Product:
Invisalign Full Products 343,360 92,335 98,565 99,385
Invisalign Express Products 78,980 19,845 20,735 20,230
--------- -------- -------- --------
Total Cases Shipped 422,340 112,180 119,300 119,615
========= ======== ======== ========
Number of Invisalign Doctors Cases
Shipped To:
North America 27,330 19,015 19,505 19,550
International 10,800 7,185 7,685 7,950
--------- -------- -------- --------
Total Doctors Cases Shipped To 38,130 26,200 27,190 27,500
========= ======== ======== ========
Invisalign Doctor Utilization
Rates*:
North America 11.5 4.3 4.4 4.4
North American Orthodontists 26.4 8.1 8.4 8.8
North American GP Dentists 7.3 2.9 2.9 2.8
International 10.0 4.3 4.5 4.3
--------- -------- -------- --------
Total Utilization Rates 11.1 4.3 4.4 4.4
========= ======== ======== ========
* # of cases shipped/# of doctors
to whom cases were shipped
Number of Invisalign Doctors
Trained:
North America 4,140 700 1,150 # 1,125
International 3,925 1255 1,380 1,400
--------- -------- -------- --------
Total Doctors Trained
Worldwide 8,065 1,955 2,530 2,525
========= ======== ======== ========
Total to Date Worldwide 84,560 86,515 89,045 91,570
========= ======== ======== ========
Scanner and Services Net Revenues:
North America Scanner and
Services $ 45,261 $ 12,313 $ 12,698 $ 11,579
International Scanner and
Services 296 94 98 159
--------- -------- -------- --------
Total Scanner and Net Revenues $ 45,557 $ 12,407 $ 12,796 $ 11,738
========= ======== ======== ========
Total Net Revenues by Geography:
Total North America Net Revenues $ 453,470 $120,223 $124,346 $124,928
Total International Net Revenues 162,012 49,942 56,086 53,598
Total Non-case Net Revenues 44,724 10,481 12,099 11,350
--------- -------- -------- --------
Total Worldwide Net Revenues $ 660,206 $180,646 $192,531 $189,876
========= ======== ======== ========
YoY % growth 17.9% 17.6% 17.5% 15.4%
QoQ % growth 1.3% 6.6% -1.4%
Stock-based Compensation (SBC)
SBC included in Gross Profit $ 2,600 $ 800 $ 940 $ 865
SBC included in Operating
Expenses 23,900 8,300 9,370 9,045
--------- -------- -------- --------
Total SBC Expense $ 26,500 $ 9,100 $ 10,310 $ 9,910
========= ======== ======== ========
----------
Note: Historical public data may differ due to rounding. Additionally, rounding may effect totals.
ALIGN TECHNOLOGY, INC.
BUSINESS OUTLOOK SUMMARY
(unaudited)
The outlook figures provided below and elsewhere in this press release are approximate in nature since Align's business outlook is difficult to predict. Align's future performance involves numerous risks and uncertainties and the company's results could differ materially from the outlook provided. Some of the factors that could affect Align's future financial performance and business outlook are set forth under "Forward Looking Information" above in this press release.
Financial Outlook
(in millions, except per share amounts and
percentages)
Q4'14 Guidance
-------------------------
GAAP
-------------------------
Net Revenues $194.9 - $199.1
Gross Margin 74.2% - 74.6%
Operating Expenses $94.7 - $95.5
Operating Margin 25.6% - 26.6%
Net Income per Diluted Share $0.47 - $0.50
Business Metrics: Q4'14
-------------------------
Case Shipments 125.1K - 127.6K
Cash, Cash Equivalents, and Marketable Securities $580M - $590M
Capital Expenditure $20.0M - $25.0M
Depreciation & Amortization $4.5M - $5.0M
Diluted Shares Outstanding 81.9M
Stock Based Compensation Expense $11.1M
Tax Rate 23.0%
Investor Relations Contact Shirley Stacy Align Technology, Inc. (408) 470-1150 sstacy@aligntech.com Press Contact Shannon Mangum Henderson Ethos Communication, Inc. (678) 261-7803 align@ethoscommunication.com