EX-99.3 5 podd-exx993_itemx6xselecte.htm EXHIBIT 99.3 Exhibit

Exhibit 99.3


Item 6. Selected Financial Data
 
Years Ended December 31,
 
2015
 
2014
 
2013
 
2012
 
2011(3)
 
(In thousands, except share and per share data)
Consolidated Statements of Operations Data:
 
 
 
 
 
 
 
 
 
Revenue
$
263,893

 
$
231,321

 
$
185,139

 
$
148,898

 
$
117,064

Cost of revenue
130,622

 
104,195

 
95,364

 
80,430

 
63,569

Gross profit
133,271

 
127,126

 
89,775

 
68,468

 
53,495

Operating expenses:
 
 
 
 
 
 
 
 
 
Research and development
43,208

 
27,900

 
21,765

 
24,359

 
21,863

Sales and marketing
78,407

 
50,552

 
45,176

 
40,436

 
37,338

General and administrative
60,392

 
57,548

 
49,509

 
34,642

 
34,636

Total operating expenses
182,007

 
136,000

 
116,450

 
99,437

 
93,837

Operating loss
(48,736
)
 
(8,874
)
 
(26,675
)
 
(30,969
)
 
(40,342
)
Interest and other expense, net
(12,654
)
 
(39,006
)
 
(15,783
)
 
(15,702
)
 
(14,604
)
Loss from continuing operations before income taxes
(61,390
)
 
(47,880
)
 
(42,458
)
 
(46,671
)
 
(54,946
)
Income tax (expense) benefit
(212
)
 
(60
)
 
(22
)
 
9

 
11,322

Net loss from continuing operations
$
(61,602
)
 
$
(47,940
)
 
$
(42,480
)
 
$
(46,662
)
 
$
(43,624
)
Loss from discontinued operations, net of tax(4)
(11,918
)
 
(3,560
)
 
(2,494
)
 
(5,205
)
 
(2,207
)
Net loss
$
(73,520
)
 
$
(51,500
)
 
$
(44,974
)
 
$
(51,867
)
 
$
(45,831
)
Net loss per share basic and diluted
 
 
 
 
 
 
 
 
 
Net loss from continuing operations per share
$
(1.08
)
 
$
(0.86
)
 
$
(0.78
)
 
$
(0.97
)
 
$
(0.93
)
Net loss from discontinued operations per share
$
(0.21
)
 
$
(0.06
)
 
$
(0.05
)
 
$
(0.11
)
 
$
(0.05
)
Weighted-average number of shares used in calculating net loss per share(1)
56,785,646

 
55,628,542

 
54,010,887

 
47,924,324

 
46,689,880

 
 
 
 
 
 
 
 
 
 
 
As of December 31,
 
2015
 
2014
 
2013
 
2012
 
2011(3)
 
(In thousands)
Consolidated Balance Sheet Data:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
122,672

 
$
151,193

 
$
149,727

 
$
57,293

 
$
93,955

Working capital
$
125,605

 
$
163,900

 
$
155,824

 
$
61,650

 
$
104,640

Total assets
$
275,126

 
$
297,182

 
$
286,541

 
$
196,055

 
$
218,725

Current portion of long-term debt and capital lease obligations
$
5,519

 
$
3,380

 
$
2,637

 
$
14,429

 
$
—

Long-term debt and capital lease obligations(2)
$
171,967

 
$
166,283

 
$
117,627

 
$
101,726

 
$
105,943

Other long-term liabilities
$
3,952

 
$
2,774

 
$
1,943

 
$
1,867

 
$
2,052

Total stockholders’ equity
$
34,051

 
$
83,829

 
$
124,597

 
$
44,176

 
$
82,735

 
 
 
 
 
(1) 
In June 2011, we issued 1.2 million shares in connection with the acquisition of Neighborhood Diabetes. In January 2013, we sold 4.7 million shares of common stock to the public. In July 2014, we issued 0.3 million shares of common stock in connection with the repurchase of the 3.75% Senior Convertible Notes. See Footnote 14 to our consolidated financial statements.
(2) 
In June 2008, we sold $85.0 million principal amount of 5.375% Convertible Senior Notes due June 2013 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. In June 2011, we issued $143.8 million of 3.75% Convertible Notes due June 2016 and repurchased $70 million in principal of the 5.375% Notes. In June 2014, we issued $201.3 million of 2% Convertible Notes due June 2019 and repurchased $114.9 million in 3.75% Notes. In July 2014, the remaining principal balance of the 3.75% Notes were converted and the principal was settled in cash. In 2013 and 2014 we acquired $9.0 million and $1.5 million, respectively, of manufacturing equipment under capital leases. See Footnotes 5 and 6 to our consolidated financial statements.



Exhibit 99.3

(3) 
On June 1, 2011, we completed the acquisition of Neighborhood Diabetes, a durable medical equipment distributor, specializing in direct to consumer sales of diabetes supplies for an aggregate purchase price of approximately $37.9 million in cash and $24.4 million in common stock. Neighborhood Diabetes supplied its customers with blood glucose testing supplies, insulin pumps, pump supplies, pharmaceuticals, and other products for the management and treatment of diabetes. Included in loss from continuing operations for the year ended December 31, 2011 is a tax benefit of approximately $11.3 million resulting from the release of an existing valuation allowance after the acquisition of Neighborhood Diabetes and the related deferred tax liabilities.
(4) 
Included an impairment charge of $9.1 million related to the impairment of the Neighborhood Diabetes asset group. See Footnote 18 to our consolidated financial statements.