Teligent (TLGT) Tops Q2 EPS by 16c, Revenues Beat

Teligent (NASDAQ: TLGT) reported Q2 EPS of ($1.54), $0.16 better than the analyst estimate of ($1.70). Revenue for the quarter came in at $13.6 million versus the consensus estimate of $10.3 million.

Financial Highlights

Second Quarter 2020 vs. First Quarter 2020

• Revenues of $13.6 million, an increase of $6.1 million or 82%, stronger demand for both US topical products and injectable products sold in Canada
• Gross profit of $2.5 million, an increase of $3.7 million or 315% driven by the increase in revenues
• Product development and research expenses of $1.9 million, an increase of $0.1 million or 4%
• Selling, general and administrative expenses of $5.0 million, a decrease of $1.7 million or 26% driven by the Company’s ongoing efforts to reduce discretionary spending and less litigation and debt related professional fees.
• Adjusted EBITDA loss of $2.3 million, an improvement of $5.2 million

Second Quarter 2020 vs. Second Quarter 2019

• Revenues of $13.6 million, a decrease of $4.8 million or 26%, driven by lost contract volume and price erosion
• Gross profit of $2.5 million, a decrease of $6.0 million or 71%, driven by increased inventory reserves, lost contract volume and price erosion
• Product development and research expenses of $1.9 million, a decrease of $0.8 million or 30% driven by the intentional deferral of development projects needed to preserve cash
• Selling, general and administrative expenses of $5.0 million, a decrease of $0.2 million or 4% driven by the Company’s ongoing efforts to reduce discretionary spending
• Adjusted EBITDA loss of $2.3 million, a decrease of $4.9 million

“In light of the evolving COVID-19 challenges that transpired in the second quarter, we are pleased with our second quarter financial results and continue to see positive signs that patients are returning to the dermatologist in the United States,” said President and CEO, Timothy Sawyer.

COVID-19 Response Summary

In alignment with the directives in the state of New Jersey, as a Pharmaceutical manufacturing facility, we are considered "essential". We have and will continue to remain open as long as permitted and conditions remain safe for our employees in order to continue to supply our products to the patients that need them. Teligent has taken several preventative measures to help ensure business continuity, while maintaining safe and stable operations. We have directed all non-production, Quality or R&D employees, to continue working from home in accordance with state and local guidelines. We have implemented social distancing measures on-site at our manufacturing facility to protect employees and our products. Our employees are provided daily personal protective equipment upon their arrival to the site and we have implemented temperature monitoring services at our newly established single point of entrance. We have also implemented a more frequent sanitization process of the facility.

In order to preserve cash and align manufacturing-related resources with downward adjustments made to our production schedule, we initiated a reduction in force at our Buena, NJ manufacturing facility effective June 19, 2020. In connection with the reduction, the Company terminated 53 employees and furloughed another 15 employees. The Company’s employee base after these actions, coupled with the Company-wide effort to reduce recruitment initiated earlier in the year, is down 31% from the start of the year.

The Company provided terminated employees with a severance package and will continue to provide health insurance coverage to its furloughed employees. The associated one-time employee severance costs totaled $0.3 million, which were recorded in cost of revenues and product development and research expenses in the Company’s Condensed Consolidated Statement of Operations and is adjusted in the Non-GAAP measurement tables on the other one-time expense line in the three and six months ended June 30, 2020.

For earnings history and earnings-related data on Teligent (TLGT) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Movano (MOVE) Misses Q2 EPS by 195c
• Diana Shipping withdraws bid to acquire Genco Shipping