Vericel (NASDAQ: VCEL) reported Q4 EPS of $0.11, $0.07 better than the analyst estimate of $0.04. Revenue for the quarter came in at $31.3 million versus the consensus estimate of $28.68 million.

• Total net product revenues increased 41% to $31.3 million compared to $22.2 million in the fourth quarter of 2017;
• Gross margins of 72% compared to gross margins of 64% in the fourth quarter of 2017;
• Net income of $5.2 million, or $0.11 per share, compared to $0.3 million, or $0.01 per share, in the fourth quarter of 2017;
• Non-GAAP adjusted EBITDA of $7.7 million compared to $2.2 million in the fourth quarter of 2017; and
• As of December 31, 2018, after retiring all outstanding debt, the company had $82.9 million in cash and short-term investments compared to $26.9 million in cash at December 31, 2017.

“We delivered record fourth quarter and full-year revenues and gross margins, and reported full-year positive adjusted EBITDA for the first time in the company’s history,” said Nick Colangelo, president and CEO of Vericel. “Based on MACI’s performance in 2018 and the feedback that we are receiving from surgeons and patients, it is clear that MACI is filling what has been a large unmet need in the cartilage repair market, and we expect continued strong revenue and profit growth in 2019.”

GUIDANCE:

Vericel sees Q1 2019 revenue of $108-111 million, versus the consensus of $109.9 million.

The company expects total net product revenues for 2019 to be in the range of $108 million to $112 million. The company also expects margins to continue to increase, with approximately 80% of marginal revenue over 2018 to contribute to gross profit and approximately 50% of marginal revenue over 2018 to contribute to adjusted EBITDA. Quarterly seasonality, which impacts both revenues and margins, is expected to follow the same pattern as 2018.

For earnings history and earnings-related data on Vericel (VCEL) click here.