STAAR Surgical Reports Fourth Quarter and Fiscal Year 2023 Results
STAAR Surgical Company (STAA) reports double-digit sales growth and profitability in Q4 2023. Net sales up 19% to $76.3 million, ICL sales up 22% to $74.6 million. Fiscal year 2023 net sales increased by 13% to $322.4 million. Gross margin remains strong. Net income for the year at $21.3 million. Earnings per share at $0.43.
Positive
Strong sales growth in Q4 driven by APAC and EMEA regions. ICL unit growth exceeds industry average for the third consecutive year. Global ICL sales up 22%, with significant growth in China and EMEA. Cash, cash equivalents, and investments on the balance sheet reach $232 million. Affirms fiscal 2024 net sales outlook of $335 million to $340 million.
The reported financial results by STAAR Surgical Company indicate a robust performance, with double-digit sales growth and an increase in net income . The growth in ICL sales of 22% in the fourth quarter and 18% for the fiscal year is particularly noteworthy, outpacing the refractive industry growth significantly. The gross margin improvement from 77.7% to 79.6% in the fourth quarter suggests efficient cost management and a strong pricing strategy. However, the decrease in net income year-over-year from $39.7 million to $21.3 million warrants a closer examination of the underlying factors, such as increased operating expenses or potential one-time charges that may have affected profitability.
STAAR Surgical's strong cash position, with $232.4 million in cash, cash equivalents and investments and the absence of debt, provide the company with strategic flexibility. This financial health allows for potential investments in research and development, marketing, or even strategic acquisitions. Investors should monitor how these investments translate into sustained growth and market share expansion, particularly in high-growth regions like China and EMEA.
Looking ahead, the affirmed sales outlook for fiscal 2024 suggests confidence in the company's growth trajectory. The forecasted net sales of $335 million to $340 million would represent a moderate increase over the current fiscal year, which may reflect conservative estimates or potential market conditions that could impact growth rates.
The demand for STAAR Surgical's EVO family of Implantable Collamer® Lenses is a reflection of broader trends in the elective medical procedures market, particularly in vision correction . The company's growth in APAC, with China showing a 30% increase in sales, aligns with the region's expanding middle class and increased spending on healthcare. The 18% growth in EMEA also indicates a strong market presence and adoption in Europe.
STAAR Surgical's claim of outperforming refractive industry growth by over 25 points for the third consecutive year highlights its competitive advantage and potential for market share gains. Its focus on enhancing the surgeon experience and driving practice efficiency could further differentiate its offerings in a competitive landscape. As the company invests in innovation and technology, it is essential to consider the adoption rates and potential barriers to entry in different markets, including regulatory hurdles and competition from other refractive surgery techniques.
From a market perspective, the emphasis on patient outcomes and satisfaction could lead to increased brand loyalty and a stronger referral base, which are critical factors for growth in the healthcare sector. The company's strategic focus on lens-based technology positions it well to capitalize on the shift towards less invasive and more patient-friendly vision correction options.
The medical device sector, particularly in the vision correction space, is highly competitive and innovation-driven. STAAR Surgical's EVO ICL represents a significant advancement in the field of ophthalmology , offering an alternative to traditional contact lenses and laser-based refractive surgeries. The company's high gross margin suggests that its products have strong pricing power, which can be attributed to the unique value proposition of the EVO ICL in terms of patient outcomes and satisfaction.
As STAAR Surgical continues to invest in enhancing its technology and clinical experience, it is important to consider the regulatory landscape, which can significantly impact the speed at which new products are brought to market. The company's ability to maintain and grow its margins will depend on its capacity to navigate these regulations efficiently and to continue to innovate in a way that meets the evolving needs of both surgeons and patients.
The company's performance in the APAC region, especially the 30% growth in China, suggests a successful penetration into emerging markets, which are becoming increasingly important for medical device companies. The strategic allocation of STAAR Surgical's robust cash reserves toward further market expansion and technological advancements will be critical in maintaining its growth momentum and staying ahead of industry trends.
02/26/2024 - 04:01 PM
Generates Double-Digit Sales Growth and Continuing Profitability
ICL Sales Up 22% in Fourth Quarter and 18% in Fiscal 2023
Affirms Sales Outlook for Fiscal 2024
LAKE FOREST, Calif. --(BUSINESS WIRE)--
STAAR Surgical Company (NASDAQ: STAA), a leading developer, manufacturer and marketer of the EVO family of Implantable Collamer® Lenses (EVO ICL™) for myopia, astigmatism and presbyopia, today reported financial results for the fourth quarter and fiscal year ended December 29, 2023.
Fourth Quarter 2023 Overview
Net sales up 19% to $76.3 million in the fourth quarter
ICL sales up 22% to $74.6 million and ICL units up 19%
Gross margin at 79.6% vs. 77.7% year ago
Net income of $7.8 million vs. $6.8 million year ago
Earnings per share of $0.16 vs. $0.14 per share year ago
Cash, cash equivalents and investments available for sale ended the quarter at $232.4 million
Fiscal Year 2023 Overview
Net sales up 13% to $322.4 million for fiscal year 2023
ICL sales up 18% to $319.4 million and ICL units up 19%
Gross margin at 78.4% vs. 78.5% year ago
Net income of $21.3 million vs. $39.7 million year ago
Earnings per share of $0.43 vs. $0.80 per share year ago
“We generated strong sales growth in the fourth quarter, consistent with our preliminary sales announcement, and profitability, driven by strength in APAC and sequential growth in EMEA,” said Tom Frinzi, President and CEO of STAAR Surgical. “For fiscal 2023, every large market delivered positive sales growth. Our ICL unit growth exceeded refractive industry growth by over 25 points for the third year in a row.1 Our 22% global ICL sales growth in the quarter included 30% growth in China and 18% in EMEA. As we enter 2024, we see encouraging end-market ICL sales trends and are affirming our fiscal 2024 net sales outlook of $335 million to $340 million .”
Mr. Frinzi continued, “With healthy margins, no debt and a record $232 million of cash, cash equivalents and investments on the balance sheet we will continue to strategically invest in our growth opportunities. We are also enhancing the surgeon experience, both in the clinical environment and in driving practice efficiency. EVO ICL is the next logical step in refractive innovation with clear differentiators in patient outcomes and patient satisfaction. We are pleased with the increasing interest our lens based technology is garnering and look forward to sharing more about our progress, partnerships and innovation investments in the coming weeks and at the ASCRS meeting in Boston.”
Fourth Quarter 2023 Financial Results
Net sales were $76.3 million for the fourth quarter of 2023, up 19% compared to $64.0 million reported in the prior year quarter. The sales increase in the fourth quarter was driven by ICL sales and unit growth of 22% and 19% , respectively, as compared to the prior year period. Other Products sales decreased 43% compared to the prior year quarter.
Gross profit margin for the fourth quarter of 2023 was 79.6% of total net sales compared to the prior year quarter of 77.7% of total net sales. Product mix favorably impacted gross margin in the fourth quarter of 2023 as compared to the prior year quarter.
Operating expenses for the fourth quarter of 2023 were $50.3 million compared to the prior year quarter of $48.8 million . General and administrative expenses were $16.9 million compared to the prior year quarter of $14.8 million . The increase in general and administrative expenses was due to increased outside services and facilities costs. Selling and marketing expenses were $22.6 million compared to the prior year quarter of $24.2 million . The decrease in selling and marketing expenses was due to decreased compensation-related expenses and marketing, promotional and advertising activities. Research and development expenses were $10.9 million compared to the prior year quarter of $9.8 million . The increase in research and development expenses was due to increased compensation-related expenses.
Operating income for the fourth quarter of 2023 was $10.4 million or 13.7% of net sales as compared to $1.0 million or 1.5% of net sales for the fourth quarter of 2022.
Net income for the fourth quarter of 2023 was $7.8 million or $0.16 per diluted share compared with net income of $6.8 million or $0.14 per diluted share for the prior year quarter. The year over year increase in net income was attributable to higher gross profit, partially offset by a higher provision for income taxes, lower other income and increased SG&A expenses.
Fiscal Year 2023 Financial Results
Net sales were $322.4 million for fiscal year 2023, up 13% compared to $284.4 million reported in the prior year. The increase in net sales was driven by ICL sales and unit growth of 18% and 19% , respectively. Other Products Sales decreased 80% compared to the prior year.
Gross profit margin for fiscal year 2023 decreased to 78.4% of total net sales compared to 78.5% of total net sales for fiscal year 2022.
Operating expenses for fiscal year 2023 were $224.6 million compared to $179.6 million in the prior year. The 25% increase in operating expense was primarily due to higher compensation-related expenses, marketing, promotional and advertising activities, outside services and facilities costs.
Operating income for fiscal year 2023 was $28.1 million or 8.8% of net sales as compared to $43.8 million or 15.4% of net sales for fiscal year 2022.
Net income for fiscal year 2023 was $21.3 million or $0.43 per diluted share compared with net income of $39.7 million or $0.80 per diluted share for the prior year. The year over year decrease in net income was due to increased SG&A expenses and provision for income taxes, partially offset by higher gross margin and other income.
Cash, cash equivalents and investments available for sale at December 29, 2023, totaled $232.4 million , compared to $225.5 million at end of the fourth quarter of 2022.
Outlook
The Company expects the following for fiscal year 2024:
Net sales of $335 million to $340 million .
Adjusted EBITDA of approximately $36 million and Adjusted EBITDA per diluted share of approximately $0.70 .2
The outlook above contemplates EVO ICL sales growth of approximately 7% in APAC, including 10% in China ; 10% growth in the Americas , including 10% in the U.S. ; and EMEA sales consistent with fiscal year 2023.
Conference Call
The Company will host a conference call and webcast today, Monday, February 26 at 4:15 p.m. Eastern / 1:15 p.m. Pacific to discuss its financial results and operational progress. To access the conference call please dial 877-270-2148 for domestic participants and 412-902-6510 for international participants. No access code is required. Please ask to be joined into the STAAR Surgical Company call. The live webcast can be accessed from the ‘Investor Relations’ section of the STAAR website at www.staar.com .
A taped replay of the conference call (Access Code 6879745) will be available beginning approximately one hour after the call’s conclusion for seven days. This replay can be accessed by dialing 877-344-7529 for domestic callers and 412-317-0088 for international callers. An archived webcast will also be available at www.staar.com .
1
Global STAAR ICL unit growth exceeded refractive industry growth by an estimated 38 points (2021); 28 points (2022) and 26 points (2023). The Company estimates global refractive industry procedures increased 10% (2021); increased 5% (2022); and decreased 7% (2023) Y/Y based on Market Scope and Company data available as of January 2, 2024.
2
Adjusted EBITDA and Adjusted EBITDA per diluted share are non-GAAP financial measures. For further information on non-GAAP financial measures, please refer to the “Use of Non-GAAP Financial Measures” section of this press release. Please also refer to the tables at the end of this press release for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure.
Use of Non-GAAP Financial Measures
To supplement the Company’s financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables include certain non-GAAP financial measures, including Adjusted EBITDA. Management uses these non-GAAP financial measures in its evaluation of Company operating performance and believes investors will find them useful in evaluating the Company’s operating performance, including cash flow generation, and in analyzing period-to-period financial performance of core business operations and underlying business trends. Non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
EBITDA is a non-GAAP financial measure, which is calculated by adding interest income and expense, net; provision for income taxes; and depreciation and amortization to net income. In calculating Adjusted EBITDA and Adjusted EBITDA per diluted share, the Company further adjusts for stock-based compensation expense. As stock-based compensation is a non-cash expense that can vary significantly based on the timing, size and nature of awards granted, the Company believes that the exclusion of stock-based compensation expense can assist investors in comparisons of Company operating results with other peer companies because (i) the amount of such expense in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expense can vary significantly between periods as a result of the timing of grants of new stock-based awards, including inducement grants in connection with hiring. Additionally, the Company believes that excluding stock-based compensation from Adjusted EBITDA and Adjusted EBITDA per diluted share assists management and investors in making meaningful comparisons between the Company’s operating performance and the operating performance of other companies that may use different forms of employee compensation or different valuation methodologies for their stock-based compensation. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods. Investors should also note that such expenses will recur in the future.
The Company also presents certain financial information on a constant currency basis, which is intended to exclude the effects of foreign currency fluctuations. The Company conducts a significant part of its activities outside the U.S. It receives sales revenue and pays expenses principally in U.S. dollars, Swiss francs, Japanese yen and euros. The exchange rates between dollars and non-U.S. currencies can fluctuate greatly and can have a significant effect on the Company’s results when reported in U.S. dollars. In order to compare the Company's performance from period to period without the effect of currency, the Company will apply the same average exchange rate applicable in the prior period, or the “constant currency” rate to sales or expenses in the current period as well.
In the tables provided below, the Company has included a reconciliation of Adjusted EBITDA and Adjusted EBITDA per diluted share to net income and net income per diluted share, the most directly comparable GAAP financial measure, as well as supplemental financial information with net sales expressed in constant currency. The Company has also provided a reconciliation of forward-looking Adjusted EBITDA and Adjusted EBITDA per diluted share to net income and net income per diluted share. This represents forward-looking information, and actual results may vary. Please see the risks and assumptions referred to in the Safe Harbor section of this press release.
About STAAR Surgical
STAAR, which has been dedicated solely to ophthalmic surgery for over 40 years, designs, develops, manufactures and markets implantable lenses for the eye. These lenses are intended to provide visual freedom for patients, lessening or eliminating the reliance on glasses or contact lenses. All of these lenses are foldable, which permits the surgeon to insert them through a small incision. STAAR’s lens used in refractive surgery is called an Implantable Collamer® Lens or “ICL,” which includes the EVO ICL™ product line. More than 2,500,000 ICLs have been sold to date and STAAR markets these lenses in over 75 countries. To learn more about the ICL go to: EVOICL.com. Headquartered in Lake Forest, CA , the company operates manufacturing and packaging facilities in Aliso Viejo, CA , Monrovia, CA and Nidau, Switzerland . For more information, please visit the Company’s website at www.staar.com .
Safe Harbor
All statements that are not statements of historical fact are forward-looking statements, including statements about any of the following: any financial projections, anticipated financial results, estimates and outlook (including as to net sales, Adjusted EBITDA, and Adjusted EBITDA per diluted share), plans, strategies, and objectives of management for 2024 and beyond or prospects for achieving such plans, expectations for sales, revenue, margin, expenses or earnings, and any statements of assumptions underlying any of the foregoing, including those relating to financial performance in the upcoming quarter, fiscal year 2024 and beyond. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include risks and uncertainties related to global economic conditions, as well as the factors set forth in the Company’s Annual Report on Form 10-K for the year ended December 29, 2023 under the caption “Risk Factors,” which is on file with the Securities and Exchange Commission and available in the “Investor Information” section of the company’s website under the heading “SEC Filings.” We disclaim any intention or obligation to update or revise any financial projections or forward-looking statement due to new information or events. These statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties include the following: global economic conditions; the impact of COVID-19; the discretion of regulatory agencies to approve or reject existing, new or improved products, or to require additional actions before or after approval, or to take enforcement action; international conflicts, trade disputes and substantial dependence on demand from Asia ; and the willingness of surgeons and patients to adopt a new or improved product and procedure.
We intend to use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included on our website in the ‘Investor Relations’ sections. Accordingly, investors should monitor such portions of our website, in addition to following our press releases, SEC filings and public conference calls and webcasts.
Consolidated Balance Sheets
(in 000's)
Unaudited
ASSETS
December 29, 2023
December 30, 2022
Current assets:
Cash and cash equivalents
$
183,038
$
86,480
Investments available for sale
37,688
125,159
Accounts receivable trade, net
94,704
62,447
Inventories, net
35,130
24,161
Prepayments, deposits, and other current assets
14,709
13,476
Total current assets
365,269
311,723
Investments available for sale
11,703
13,902
Property, plant, and equipment, net
66,835
50,921
Finance lease right-of-use assets, net
183
342
Operating lease right-of-use assets, net
34,387
30,270
Intangible assets, net
-
173
Goodwill
1,786
1,786
Deferred income taxes
5,190
8,744
Other assets
3,339
957
Total assets
$
488,692
$
418,818
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
13,557
$
11,576
Obligations under finance leases
165
169
Obligations under operating leases
4,202
3,524
Allowance for sales returns
6,174
5,706
Other current liabilities
40,938
30,741
Total current liabilities
65,036
51,716
Obligations under finance leases
42
210
Obligations under operating leases
31,425
27,136
Deferred income taxes
1,077
1,489
Asset retirement obligations
103
220
Pension liability
5,055
1,935
Total liabilities
102,738
82,706
Stockholders' equity:
Common stock
488
482
Additional paid-in capital
436,947
404,189
Accumulated other comprehensive income (loss)
(4,113
)
156
Accumulated deficit
(47,368
)
(68,715
)
Total stockholders' equity
385,954
336,112
Total liabilities and stockholders' equity
$
488,692
$
418,818
Consolidated Statements of Income
(in 000's except for per share data)
Unaudited
Three Months Ended
Twelve Months Ended
Fav (Unfav)
Fav (Unfav)
% of Sales
December 29, 2023
% of Sales
December 30, 2022
Amount
%
% of Sales
December 29, 2023
% of Sales
December 30, 2022
Amount
%
Net sales
100.0
%
$
76,273
100.0
%
$
64,044
$
12,229
19.1
%
100.0
%
$
322,415
100.0
%
$
284,391
$
38,024
13.4
%
Cost of sales
20.4
%
15,548
22.3
%
14,259
(1,289
)
-9.0
%
21.6
%
69,764
21.5
%
61,008
(8,756
)
-14.4
%
Gross profit
79.6
%
60,725
77.7
%
49,785
10,940
22.0
%
78.4
%
252,651
78.5
%
223,383
29,268
13.1
%
Selling, general and administrative expenses:
General and administrative
22.1
%
16,858
23.1
%
14,808
(2,050
)
-13.8
%
22.4
%
72,319
19.2
%
54,742
(17,577
)
-32.1
%
Selling and marketing
29.6
%
22,596
37.8
%
24,223
1,627
6.7
%
33.4
%
107,834
31.2
%
88,856
(18,978
)
-21.4
%
Research and development
14.2
%
10,866
15.3
%
9,790
(1,076
)
-11.0
%
13.8
%
44,401
12.7
%
35,983
(8,418
)
-23.4
%
Total selling, general, and administrative expenses
65.9
%
50,320
76.2
%
48,821
(1,499
)
-3.1
%
69.6
%
224,554
63.1
%
179,581
(44,973
)
-25.0
%
Operating income
13.7
%
10,405
1.5
%
964
9,441
979.4
%
8.8
%
28,097
15.4
%
43,802
(15,705
)
-35.9
%
Other income (expense), net:
Interest income, net
2.2
%
1,699
2.4
%
1,514
185
12.2
%
2.2
%
6,986
0.8
%
2,448
4,538
185.4
%
Gain (loss) on foreign currency transactions
1.7
%
1,331
5.0
%
3,197
(1,866
)
-58.4
%
-0.6
%
(1,909
)
-0.6
%
(1,707
)
(202
)
-11.8
%
Royalty income
0.0
%
0
0.4
%
277
(277
)
-100.0
%
0.0
%
74
0.3
%
804
(730
)
-90.8
%
Other income, net
0.4
%
304
0.0
%
27
277
1025.9
%
0.1
%
448
0.1
%
205
243
118.5
%
Total other income, net
4.3
%
3,334
7.8
%
5,015
(1,681
)
-33.5
%
1.7
%
5,599
0.6
%
1,750
3,849
219.9
%
Income before provision for income taxes
18.0
%
13,739
9.3
%
5,979
7,760
129.8
%
10.5
%
33,696
16.0
%
45,552
(11,856
)
-26.0
%
Provision (benefit) for income taxes
7.8
%
5,983
-1.2
%
(784
)
(6,767
)
-863.1
%
3.8
%
12,349
2.1
%
5,887
(6,462
)
-109.8
%
Net income
10.2
%
$
7,756
10.5
%
$
6,763
$
993
14.7
%
6.7
%
$
21,347
13.9
%
$
39,665
$
(18,318
)
-46.2
%
Net income per share - basic
$
0.16
$
0.14
$
0.44
$
0.83
Net income per share - diluted
$
0.16
$
0.14
$
0.43
$
0.80
Weighted average shares outstanding - basic
48,815
48,203
48,523
47,987
Weighted average shares outstanding - diluted
49,242
49,389
49,427
49,380
Consolidated Statements of Cash Flows
(in 000's)
Unaudited
Three Months Ended
Twelve Months Ended
December 29, 2023
December 30, 2022
December 29, 2023
December 30, 2022
Cash flows from operating activities:
Net income
$
7,756
$
6,763
$
21,347
$
39,665
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation of property and equipment
1,368
1,380
5,111
4,481
Amortization of long-lived intangibles
(2
)
6
13
28
Impairment of long-lived intangibles
-
-
154
-
Accretion/Amortization of investments available for sale
(329
)
(891
)
(2,501
)
(1,198
)
Deferred income taxes
3,199
(2,277
)
3,264
(2,254
)
Change in net pension liability
(190
)
13
(956
)
53
Stock-based compensation expense
182
4,996
23,516
20,371
Change in asset retirement obligation
2
47
(102
)
47
Loss on disposal of property and equipment
32
65
73
65
Provision for sales returns and credit losses
(1,262
)
552
663
913
Inventory provision
761
403
4,851
2,423
Changes in working capital:
Accounts receivable
17,676
(6,493
)
(32,760
)
(19,601
)
Inventories
(4,386
)
(3,820
)
(14,361
)
(7,943
)
Prepayments, deposits and other assets
171
(3,075
)
(3,413
)
(2,549
)
Accounts payable
2,565
3,639
(701
)
1,805
Other current liabilities
4,426
1,662
10,396
(591
)
Net cash provided by operating activities
31,969
2,970
14,594
35,715
Cash flows from investing activities:
Acquisition of property and equipment
(3,088
)
(4,025
)
(18,188
)
(18,108
)
Purchase of investments available for sale
1
(60,172
)
(52,313
)
(155,748
)
Proceeds from sale or maturity of investments available for sale
25,489
17,480
144,848
17,480
Net cash provided by (used in) investing activities
22,402
(46,717
)
74,347
(156,376
)
Cash flows from financing activities:
Repayment of finance lease obligations
(40
)
(41
)
(161
)
(126
)
Repurchase of employee common stock for taxes withheld
(1
)
-
(2,097
)
-
Proceeds from vested restricted stock and exercise of stock options
408
243
9,673
8,423
Net cash provided by financing activities
367
202
7,415
8,297
Effect of exchange rate changes on cash and cash equivalents
868
783
202
(862
)
Increase (decrease) in cash and cash equivalents
55,606
(42,762
)
96,558
(113,226
)
Cash and cash equivalents, at beginning of the period
127,432
129,242
86,480
199,706
Cash and cash equivalents, at end of the period
$
183,038
$
86,480
$
183,038
$
86,480
Reconciliation of Non-GAAP Financial Measure
Net Income to Adjusted EBITDA
(in 000's except for per share data)
Unaudited
2021
Q1-22
Q2-22
Q3-22
Q4-22
2022
Q1-23
Q2-23
Q3-23
Q4-23
2023
2024 Outlook(2)
Net income - (as reported)
$
27,511
$
9,602
$
13,038
$
10,262
$
6,763
$
39,665
$
2,710
$
6,064
$
4,817
$
7,756
$
21,347
$
0
Provision (benefit) for income taxes
3,793
1,925
2,431
2,315
(784
)
5,887
2,009
2,428
1,929
5,983
12,349
0
Other (income) expense, net
2,035
586
1,551
1,128
(5,015
)
(1,750
)
(1,919
)
105
(451
)
(3,334
)
(5,599
)
2,000
Depreciation
3,608
994
1,030
1,077
1,380
4,481
1,113
1,285
1,345
1,368
5,111
4,000
Amortization of Intangible assets
34
8
7
7
6
28
7
10
(2
)
(2
)
13
0
Stock-based compensation
14,605
3,894
5,754
5,727
4,996
20,371
6,065
8,423
8,846
182
23,516
30,000
Adjusted EBITDA
$
51,586
$
17,009
$
23,811
$
20,516
$
7,346
$
68,682
$
9,985
$
18,315
$
16,484
$
11,953
$
56,737
$
36,000
Adjusted EBITDA as a % of Revenue
22.4
%
26.9
%
29.4
%
27.0
%
11.5
%
24.2
%
13.6
%
19.8
%
20.5
%
15.7
%
17.6
%
10.5
%
Net income per share, diluted- (as reported)
$
0.56
$
0.19
$
0.26
$
0.21
$
0.14
$
0.80
$
0.05
$
0.12
$
0.10
$
0.16
$
0.43
$
0.00
Provision (benefit) for income taxes
0.08
0.04
0.05
0.05
(0.02
)
0.12
0.04
0.05
0.04
0.12
0.25
0.00
Other (income) expense, net
0.04
0.01
0.03
0.02
(0.10
)
(0.04
)
(0.04
)
-
(0.01
)
(0.07
)
(0.11
)
0.04
Depreciation
0.07
0.02
0.02
0.02
0.03
0.09
0.02
0.03
0.03
0.03
0.10
0.08
Amortization of Intangible assets
-
-
-
-
-
-
-
-
-
-
-
0.00
Stock-based compensation
0.30
0.08
0.12
0.12
0.10
0.41
0.12
0.17
0.18
-
0.48
0.58
Adjusted EBITDA per share, diluted(1)
$
1.04
$
0.35
$
0.48
$
0.41
$
0.15
$
1.39
$
0.20
$
0.37
$
0.33
$
0.24
$
1.15
$
0.70
Weighted average shares outstanding - Diluted
49,456
49,288
49,223
49,549
49,389
49,380
49,500
49,516
49,370
49,242
49,427
52,000
(1) Adjusted EBITDA per diluted share may not add due to rounding
(2) 2024 Adjusted EBITDA Outlook line items are all approximations and assumes breakeven Net Income
ICL Sales by Geography
(in 000's)
Unaudited
Fiscal Year
Three Months Ended
ICL Sales by Region(5)
2021
2022
2023
December 30, 2022
March 31, 2023
June 30, 2023
September 29, 2023
December 29, 2023
Americas (1)
$
14,054
$
20,114
$
22,233
$
5,703
$
5,566
$
5,954
$
5,449
$
5,264
EMEA(2)
37,343
36,715
39,318
8,569
10,180
9,782
9,253
10,103
APAC(3)
161,508
212,883
257,876
46,890
54,879
77,376
66,367
59,254
Global ICL Sales
$
212,905
$
269,712
$
319,427
$
61,162
$
70,625
$
93,112
$
81,069
$
74,621
Global ICL Sales Growth
51
%
27
%
18
%
15
%
20
%
19
%
13
%
22
%
Global ICL Unit Growth
48
%
33
%
19
%
20
%
20
%
21
%
14
%
19
%
Fiscal Year
Three Months Ended
ICL Sales by Country(4)(5)
2021
2022
2023
December 30, 2022
March 31, 2023
June 30, 2023
September 29, 2023
December 29, 2023
China
$
107,130
$
147,967
$
185,404
$
31,506
$
35,042
$
61,288
$
48,262
$
40,813
Growth
50
%
38
%
25
%
20
%
25
%
33
%
14
%
30
%
Japan
$
28,688
$
32,623
$
36,352
$
8,179
$
9,203
$
8,563
$
9,091
$
9,495
Growth
56
%
14
%
11
%
6
%
6
%
13
%
12
%
16
%
South Korea
$
15,173
$
17,940
$
19,853
$
3,589
$
6,656
$
3,316
$
4,886
$
4,996
Growth
36
%
18
%
11
%
-2
%
19
%
-15
%
1
%
39
%
United States
$
9,478
$
15,070
$
17,168
$
4,536
$
4,396
$
4,446
$
4,162
$
4,164
Growth
58
%
59
%
14
%
94
%
71
%
10
%
6
%
-8
%
Notes:
(1) Americas includes the United States , Canada and Latin American countries
(2) EMEA includes Spain , Germany , United Kingdom , European, Middle East and Africa Distributors
(3) APAC includes China , Japan , South Korea , India and the rest of Asia Pacific distributors
(4) ICL Sales by country includes countries representing more than 5% of total ICL sales in the most recently completed fiscal year
(5) ICL sales do not include IOL, injector or other sales.
Reconciliation of Non-GAAP Financial Measure
Constant Currency Sales
(in 000's)
Unaudited
Three Months Ended
As Reported
Constant Currency
Sales
December 29, 2023
Effect of Currency
Constant Currency
December 30, 2022
$ Change
% Change
$ Change
% Change
ICL
$
74,621
$
(205
)
$
74,416
$
61,162
$
13,459
22.0
%
$
13,254
21.7
%
Cataract IOL
(156
)
26
(130
)
1,998
(2,154
)
-107.8
%
(2,128
)
-106.5
%
Other
1,808
21
1,829
884
924
104.5
%
945
106.9
%
Other Products
1,652
47
1,699
2,882
(1,230
)
-42.7
%
(1,183
)
-41.0
%
Total Sales
$
76,273
$
(158
)
$
76,115
$
64,044
$
12,229
19.1
%
$
12,071
18.8
%
Twelve Months Ended
As Reported
Constant Currency
Sales
December 29, 2023
Effect of Currency
Constant Currency
December 30, 2022
$ Change
% Change
$ Change
% Change
ICL
$
319,427
$
1,799
$
321,226
$
269,712
$
49,715
18.4
%
$
51,514
19.1
%
Cataract IOL
1,139
198
1,337
9,638
(8,499
)
-88.2
%
(8,301
)
-86.1
%
Other
1,849
125
1,974
5,041
(3,192
)
-63.3
%
(3,067
)
-60.8
%
Other Products
2,988
323
3,311
14,679
(11,691
)
-79.6
%
(11,368
)
-77.4
%
Total Sales
$
322,415
$
2,122
$
324,537
$
284,391
$
38,024
13.4
%
$
40,146
14.1
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20240226968455/en/
Investors & Media
Brian Moore
Vice President, Investor Relations and Corporate Development
(626) 303-7902, Ext. 3023
bmoore@staar.com
Source: STAAR Surgical Company
Net sales increased by 19% to $76.3 million in the fourth quarter.
ICL sales increased by 22% to $74.6 million.
Fiscal year 2023 net sales were $322.4 million, up by 13%.
Gross margin was at 79.6% compared to 77.7% in the previous year.
Net income for fiscal year 2023 was $21.3 million.
The affirmed fiscal 2024 net sales outlook is $335 million to $340 million.
At the end of Q4 2023, STAAR Surgical had $232.4 million in cash, cash equivalents, and investments available for sale.