0000950170-23-062069.txt : 20231109 0000950170-23-062069.hdr.sgml : 20231109 20231109161407 ACCESSION NUMBER: 0000950170-23-062069 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20231109 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20231109 DATE AS OF CHANGE: 20231109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Sientra, Inc. CENTRAL INDEX KEY: 0001551693 STANDARD INDUSTRIAL CLASSIFICATION: ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842] IRS NUMBER: 205551000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-36709 FILM NUMBER: 231392579 BUSINESS ADDRESS: STREET 1: 3333 MICHAELSON DR STREET 2: SUITE 650 CITY: IRVINE STATE: CA ZIP: 92612 BUSINESS PHONE: 805-562-3500 MAIL ADDRESS: STREET 1: 3333 MICHAELSON DR STREET 2: SUITE 650 CITY: IRVINE STATE: CA ZIP: 92612 8-K 1 sien-20231109.htm 8-K 8-K
0001551693false00015516932023-11-092023-11-09

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 09, 2023

 

 

SIENTRA, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-36709

20-5551000

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

3333 Michelson Drive, Suite 650

 

Irvine, California

 

92612

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 805 562-3500

 

 

(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:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Stock, par value $0.01 per share

 

SIEN

 

The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 


 

Item 2.02 Results of Operations and Financial Condition.

On November 9, 2023, Sientra, Inc. (the “Company”) issued a press release announcing its financial condition and results of operations for the period ended September 30, 2023. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

The information under Item 2.02 of this Current Report on Form 8-K, including the press release furnished as Exhibit 99.1, is being furnished, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any of the Company’s filings, whether made before or after the date hereof, regardless of any general incorporation language in any such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.

Description

99.1

Earnings Press Release of Sientra, Inc. dated November 9, 2023.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 


 

SIGNATURES

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 thereunto duly authorized.

 

 

 

SIENTRA, INC.

 

 

 

 

Date:

November 9, 2023

By:

/s/ Ronald Menezes

 

 

 

Ronald Menezes
President and Chief Executive Officer

 

 


EX-99.1 2 sien-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

img68924038_0.jpg 

 

Sientra Reports THIRD Quarter FINANCIAL and operational Results

IRVINE, Calif., November 9, 2023 (GLOBE NEWSWIRE) -- Sientra, Inc. (NASDAQ: SIEN) (“Sientra” or the “Company”), a surgical aesthetics company developing the safest and most innovative solutions for the best aesthetic outcomes, today announced its financial results for the third quarter that ended September 30, 2023.

Third Quarter 2023 Financial and Business Highlights

Net sales of $19.5 million representing a decrease of 13.7% over the third quarter of 2022. For the first nine months of 2023, net sales totaled $65.2 million, approximately flat from $65.5 million for the same period in 2022.
Free cash flow usage of $3.6 million, a slight improvement from $3.7 million in the same period in 2022. For the first nine months of 2023, free cash flow usage totaled $11.2 million, a 68.3% improvement versus free cash usage of $35.3 million for the same period in 2022.
Adjusted EBITDA loss of $6.4 million, a 25.6% improvement from a $8.6 million loss for the same period in 2022. For the first nine months of 2023, adjusted EBITDA loss totaled $15.4 million, a 47.4% improvement versus a $29.3 million loss for the same period in 2022.
Presented at the American Society of Plastic Surgeons meeting in Austin, Texas, unparalleled 12-month interim clinical data for the Viality™ fat transfer system demonstrating over 80% fat retention at all time points.
Obtained approval for Viality from Health Canada, representing the first international expansion for the Company’s novel fat transfer technology.

Ron Menezes, Sientra’s President and Chief Executive Officer, said, "As reported in our October 30 pre-release, Q3 revenues were negatively impacted by more pronounced seasonality resulting in softer procedural volumes as compared to prior periods. We remain enthusiastic on the potential of our portfolio, which we believe is unmatched in the industry. With the early controlled launches of Viality and Simpliderm® starting to take effect, and the upcoming launch of Allox2 PRO™, which is the first and only dual port, MRI-compatible tissue expander, we believe 2024 will be an inflection point for the Company, driven by both top-line growth and profitability."

“We are extremely excited about the interim 12-month clinical data on our Viality long-term retention study presented at Plastic Surgery: The Meeting” commented Dr. Denise Dajles, Sientra’s Chief Technology Officer. “This first-of-its-kind study, has demonstrated unparalleled fat retention of over 80% at the 3-, 6- and now 12-month time points. This retention rate is also consistent across cohorts, showing predictable, high retention rates for augmentation and reconstruction patients, including patients using fat with implants or just fat alone. This is highly significant, as it represents the first truly minimally invasive option for patients who want to add volume without an implant, providing an important new tool for plastic surgeons in their patient care.”

Third Quarter 2023 Financial Results

Total net sales were $19.5 million, a decrease of 13.7% compared to total net sales of $22.6 million for the same period in 2022.
GAAP gross profit for the third quarter of 2023 was $10.0 million, or 51.3% of sales, compared to gross profit of $12.8 million, or 56.6% of sales, for the same period in 2022. This quarter’s results were negatively affected by a non-cash depreciation and amortization charge of $1.4 million. This charge is primarily due to the inclusion of non-cash amortization of Viality manufacturing know-how and developed technology in cost of sales. Non-GAAP gross margin, excluding this non-cash

 


 

depreciation and amortization charge, was 58.4% of sales for the current period as compared to 57.9% for the prior year period.
Total GAAP loss from continuing operations for the third quarter of 2023 was $14.8 million, compared to $14.9 million for the same period in 2022, a 0.7% improvement from the prior year period.
Total GAAP operating expense for the third quarter of 2023 was $19.4 million, compared to $25.3 million for the prior year period, a decrease of $5.9 million or 23.3%.
Non-GAAP total operating expenses for the third quarter of 2023 were $17.8 million, compared to $21.7 million for the same period in 2022, an 18.0% reduction from the prior year period.
On a non-GAAP basis, adjusted EBITDA for the third quarter of 2023 was a $6.4 million loss, a 25.6% improvement from a loss of $8.6 million for the same period in 2022.
Net cash and cash equivalents as of September 30, 2023, were $15 million, compared to $26.1 million on December 31, 2022, and $18.6 million on June 30, 2023.

Conference Call

Sientra will hold a conference call today, November 9, 2023, at 4:30 pm ET to discuss third quarter 2023 results. The dial-in numbers are (844) 735-3763 for domestic callers and (412) 317-5711 for international callers. The webcast link is the following: Sientra Q3 2023 Earnings Call Webcast Registration Link. A live conference call webcast will be available on the Investor Relations section of the Company's website at www.sientra.com. The webcast will be archived on the website following the call’s completion.

Use of Non-GAAP Financial Measures

Sientra has supplemented its U.S. GAAP net income (loss) with a non-GAAP measure of adjusted EBITDA, U.S. GAAP gross profit and gross margin with a non-GAAP measure of adjusted gross profit and gross margin, U.S. GAAP operating expenses with a non-GAAP measure of non-GAAP operating expenses, and U.S. GAAP cash flow from operating activities with a non-GAAP measure of free cash flow. Management believes that these non-GAAP financial measures provide useful supplemental information to management and investors regarding the performance of the Company, facilitate a more meaningful comparison of results for current periods with previous operating results, and assist management in analyzing future trends, making strategic and business decisions and establishing internal budgets and forecasts. Reconciliations of non-GAAP adjusted EBITDA, non-GAAP adjusted gross profit and gross margin, non-GAAP operating expenses, and free cash flow to U.S. GAAP net income (loss), U.S. GAAP operating expenses and U.S. GAAP cash flow from operating activities, the most directly comparable U.S. GAAP measures, are provided in the schedules below. There are limitations in using these non-GAAP financial measures because they are not prepared in accordance with U.S. GAAP and may be different from non-GAAP financial measures used by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for U.S. GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with Sientra’s financial statements prepared in accordance with U.S. GAAP and the reconciliations of the non-GAAP financial measures provided in the schedules below.

About Sientra

Headquartered in Irvine, California, Sientra is a surgical aesthetics company focused on empowering people to change their lives through increased self-confidence and self-respect. Backed by unrivaled clinical and safety data, Sientra’s platform of products includes a comprehensive portfolio of round and shaped breast implants, the first fifth-generation breast implants approved by the FDA for sale in the United States, the ground-breaking AlloX2®breast tissue expander with patented dual-port and integral drain technology, the

 


 

next-generation AlloX2Pro™, the first and only FDA-cleared MRI-compatible tissue expander, the Viality™ with AuraClens™ enhanced viability fat transfer system, the SimpliDerm® Human Acellular Dermal Matrix, and BIOCORNEUM the #1 performing, preferred and recommended scar gel of plastic surgeons (*).

Sientra uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Sientra is routinely posted and is accessible on the Company’s investor relations website at www.sientra.com.

To learn more about Sientra, visit our website and follow Sientra on LinkedIn, Instagram, and Facebook.

(*) Data on file

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements are made only as of the date of this release. The words ‘‘believe,’’ ‘‘may,’’ ‘‘might,’’ ‘‘could,’’ ‘‘will,’’ ‘‘aim,’’ ‘‘estimate,’’ ‘‘continue, ‘‘anticipate,’’ ‘‘intend,’’ ‘‘expect,’’ ‘‘plan,’’ ‘‘position,” or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify estimates, projections and other forward-looking statements. Forward-looking statements may include information concerning the Company’s unaudited financial information for the third quarter ended September 30, 2023, the Company’s possible or assumed future results of operations, including descriptions of the Company’s revenues, operating expense, profitability, outlook and overall business strategy, the Company’s ability and timing to successfully integrate the Viality™ with AuraClens™ fat transfer system and SimpliDerm® human Acellular Dermal Matrix into its existing operations, the reception of plastic surgeons to the Company’s products, the Company’s ability to expand into aesthetic applications outside of breast procedures, the Company’s ability to add additional products and strategic partnerships, and the Company’s ability to capture additional market share and customer accounts in the plastic surgery market. Such statements are subject to risks and uncertainties, including the audit of the Company’s financial statements which audit is not yet complete and the numbers presented here could differ from the final audited financial statements presented by the Company, the Company’s ability to recapture delayed procedures resulting from the COVID-19 pandemic, the positive reaction from plastic surgeons and their patients to the Company’s products, the ability to meet consumer demand including any potential supply issues resulting from the COVID-19 pandemic or the war in Ukraine, the growth of the plastic surgery market and breast procedures, the ability of the Company to execute on its commercial, operational, marketing, research and development and regulatory plans, and the Company’s ability to comply with the terms of the Facility Agreement, including financial covenants, both during and after any waiver period, and/or obtain any additional waivers of any terms of the Company’s Facility Agreement to the extent required. Additional factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of Sientra’s public filings with the Securities and Exchange Commission. All statements other than statements of historical fact are forward-looking statements. The words ‘‘believe,’’ ‘‘may,’’ ‘‘might,’’ ‘‘could,’’ ‘‘will,’’ ‘‘aim,’’ ‘‘estimate,’’ ‘‘continue, ‘‘anticipate,’’ ‘‘intend,’’ ‘‘expect,’’ ‘‘plan,’’ ‘‘position,” or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify estimates, projections and other forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, and such estimates, projections and other forward-looking statements speak only as of the date they were made, and, except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection or forward-looking statement. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business.

 


 

Investor Relations Contact

Aman R. Patel, CFA

aman.patel@westwicke.com

 

 

 


 

Sientra, Inc.

 

Condensed Consolidated Statements of Operations

 

(In thousands, except per share and share amounts)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net sales

 

$

19,544

 

 

$

22,570

 

 

$

65,231

 

 

$

65,481

 

Cost of goods sold

 

 

9,515

 

 

 

9,794

 

 

 

30,440

 

 

 

27,118

 

Gross profit

 

 

10,029

 

 

 

12,776

 

 

 

34,791

 

 

 

38,363

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

9,330

 

 

 

12,290

 

 

 

29,487

 

 

 

41,542

 

Research and development

 

 

2,476

 

 

 

3,720

 

 

 

7,571

 

 

 

9,823

 

General and administrative

 

 

7,620

 

 

 

9,324

 

 

 

24,805

 

 

 

31,589

 

Total operating expenses

 

 

19,426

 

 

 

25,334

 

 

 

61,863

 

 

 

82,954

 

Loss from operations

 

 

(9,397

)

 

 

(12,558

)

 

 

(27,072

)

 

 

(44,591

)

Other (expense) income, net:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

168

 

 

 

41

 

 

 

458

 

 

 

58

 

Interest expense

 

 

(2,367

)

 

 

(2,364

)

 

 

(7,250

)

 

 

(6,584

)

Change in fair value of derivative liability

 

 

(3,153

)

 

 

 

 

 

(3,153

)

 

 

 

Other (expense) income, net

 

 

(24

)

 

 

(6

)

 

 

(125

)

 

 

(1

)

Total other (expense) income, net

 

 

(5,376

)

 

 

(2,329

)

 

 

(10,070

)

 

 

(6,527

)

Loss from continuing operations before income taxes

 

 

(14,773

)

 

 

(14,887

)

 

 

(37,142

)

 

 

(51,118

)

Loss from continuing operations

 

 

(14,773

)

 

 

(14,887

)

 

 

(37,142

)

 

 

(51,118

)

Loss from discontinued operations, net of income taxes

 

 

 

 

 

(94

)

 

 

 

 

 

(208

)

Net loss

 

$

(14,773

)

 

$

(14,981

)

 

$

(37,142

)

 

$

(51,326

)

 Basic and diluted net loss per share attributable to
   common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(1.31

)

 

$

(2.37

)

 

$

(3.23

)

 

$

(8.16

)

Discontinued operations

 

 

 

 

 

(0.01

)

 

 

 

 

 

(0.03

)

Basic and diluted net loss per share

 

$

(1.31

)

 

$

(2.38

)

 

$

(3.23

)

 

$

(8.19

)

Weighted average outstanding common shares used for net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

11,290,699

 

 

 

6,284,817

 

 

 

11,488,310

 

 

 

6,261,350

 

 

 

 


 

 

Sientra, Inc.

 

Condensed Consolidated Balance Sheets

 

(In thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

15,026

 

 

$

26,071

 

Accounts receivable, net

 

 

29,610

 

 

 

36,892

 

Inventories

 

 

39,268

 

 

 

42,692

 

Prepaid expenses and other current assets

 

 

2,604

 

 

 

2,094

 

Total current assets

 

 

86,508

 

 

 

107,749

 

Property and equipment, net

 

 

13,289

 

 

 

14,941

 

Goodwill

 

 

9,202

 

 

 

9,202

 

Other intangible assets, net

 

 

24,332

 

 

 

25,676

 

Right of use assets, net

 

 

5,753

 

 

 

7,004

 

Other assets

 

 

849

 

 

 

849

 

Total assets

 

$

139,933

 

 

$

165,421

 

Liabilities and Stockholders’ Deficit

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Current portion of long-term debt

 

$

58,810

 

 

$

-

 

Accounts payable

 

 

5,284

 

 

 

6,818

 

Accrued and other current liabilities

 

 

20,655

 

 

 

22,599

 

Customer deposits

 

 

53,598

 

 

 

45,161

 

Sales return liability

 

 

13,745

 

 

 

15,773

 

Total current liabilities

 

 

152,092

 

 

 

90,351

 

Long-term debt

 

 

 

 

 

55,406

 

Derivative liability

 

 

3,153

 

 

 

880

 

Deferred and contingent consideration

 

 

1,794

 

 

 

2,791

 

Warranty reserve

 

 

8,758

 

 

 

8,186

 

Lease liabilities

 

 

4,129

 

 

 

5,518

 

Other liabilities

 

 

2,052

 

 

 

2,698

 

Total liabilities

 

 

171,978

 

 

 

165,830

 

Stockholders’ deficit:

 

 

 

 

 

 

Total stockholders’ deficit

 

 

(32,045

)

 

 

(409

)

Total liabilities and stockholders’ deficit

 

$

139,933

 

 

$

165,421

 

 

 

 


 

 

Sientra, Inc.

 

Condensed Consolidated Statements of Cash Flows

 

(In thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(37,142

)

 

$

(51,326

)

Loss from discontinued operations, net of income taxes

 

 

 

 

 

(208

)

Loss from continuing operations, net of income taxes

 

 

(37,142

)

 

 

(51,118

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

5,546

 

 

 

4,947

 

Provision for doubtful accounts

 

 

448

 

 

 

1,086

 

Provision for warranties

 

 

1,510

 

 

 

583

 

Provision for inventories

 

 

68

 

 

 

607

 

Fair value adjustments to derivative liability

 

 

3,153

 

 

 

 

Fair value adjustments of other liabilities held at fair value

 

 

350

 

 

 

(88

)

Amortization of debt discount and issuance costs

 

 

3,621

 

 

 

3,029

 

Employee stock-based compensation expense

 

 

4,293

 

 

 

6,113

 

Other non-cash adjustments

 

 

 

 

 

135

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

6,610

 

 

 

(2,341

)

Inventories

 

 

3,357

 

 

 

667

 

Prepaid expenses, other current assets and other assets

 

 

741

 

 

 

1,997

 

Accounts payable, accrued and other liabilities

 

 

(9,122

)

 

 

(5,514

)

Customer deposits

 

 

8,437

 

 

 

7,830

 

Sales return liability

 

 

(2,029

)

 

 

(1,383

)

Net cash flow used in operating activities - continuing operations

 

 

(10,159

)

 

 

(33,450

)

Net cash flow used in operating activities - discontinued operations

 

 

 

 

 

(208

)

Net cash used in operating activities

 

 

(10,159

)

 

 

(33,658

)

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1,056

)

 

 

(1,856

)

Net cash flow used in investing activities - continuing operations

 

 

(1,056

)

 

 

(1,856

)

Net cash used in investing activities

 

 

(1,056

)

 

 

(1,856

)

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from issuance of common stock for employee stock-based plans

 

 

428

 

 

 

475

 

Shares repurchased for tax withholding on vesting RSUs

 

 

(96

)

 

 

(448

)

Gross borrowings under the Term Loan

 

 

 

 

 

5,000

 

Gross borrowings under the Revolving Loan

 

 

 

 

 

5,440

 

Repayments of the Revolving Loan

 

 

 

 

 

(7,678

)

Deferred financing costs

 

 

(162

)

 

 

(73

)

Net cash provided by financing activities - continuing operations

 

 

170

 

 

 

2,716

 

Net cash provided by financing activities

 

 

170

 

 

 

2,716

 

Net decrease in cash, cash equivalents and restricted cash

 

 

(11,045

)

 

 

(32,798

)

Cash, cash equivalents and restricted cash at:

 

 

 

 

 

 

Beginning of period

 

 

26,677

 

 

 

52,068

 

End of period

 

$

15,632

 

 

$

19,270

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets

 

 

 

 

 

 

Cash and cash equivalents

 

 

15,026

 

 

 

18,975

 

Restricted cash included in other assets

 

 

606

 

 

 

295

 

Total cash, cash equivalents and restricted cash

 

$

15,632

 

 

$

19,270

 

 

 

 


 

Sientra, Inc.

 

Reconciliation of US GAAP Loss from Continuing Operations to Non-GAAP Adjusted EBITDA

 

(In thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Loss from continuing operations, as reported

 

$

(14,773

)

 

$

(14,887

)

 

$

(37,142

)

 

$

(51,118

)

Adjustments to loss from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

Interest (income) expense and other, net

 

 

2,223

 

 

 

2,329

 

 

 

6,917

 

 

 

6,528

 

Depreciation and amortization

 

 

1,887

 

 

 

1,545

 

 

 

5,546

 

 

 

4,947

 

Fair value adjustments to contingent consideration

 

 

 

 

 

 

 

 

90

 

 

 

(88

)

Fair value adjustments to derivative liability

 

 

3,153

 

 

 

 

 

 

3,153

 

 

 

 

Stock-based compensation

 

 

1,233

 

 

 

1,855

 

 

 

4,293

 

 

 

6,113

 

Provision for doubtful accounts

 

 

(86

)

 

 

582

 

 

 

448

 

 

 

1,086

 

Severance

 

 

280

 

 

 

 

 

 

598

 

 

 

1,635

 

SEC/DOJ related legal fees

 

 

 

 

 

 

 

 

1,016

 

 

 

 

Legal settlement expense

 

 

(265

)

 

 

 

 

 

(265

)

 

 

1,600

 

Total adjustments to loss from continuing operations

 

 

8,425

 

 

 

6,311

 

 

 

21,796

 

 

 

21,821

 

Adjusted EBITDA

 

$

(6,348

)

 

$

(8,576

)

 

$

(15,346

)

 

$

(29,297

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

As a Percentage of Revenue**

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Loss from continuing operations, as reported

 

 

(75.6

%)

 

 

(66.0

%)

 

 

(56.9

%)

 

 

(78.1

%)

Adjustments to loss from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

Interest (income) expense and other, net

 

 

11.4

%

 

 

10.3

%

 

 

10.6

%

 

 

10.0

%

Depreciation and amortization

 

 

9.7

%

 

 

6.8

%

 

 

8.5

%

 

 

7.6

%

Fair value adjustments to contingent consideration

 

 

0.0

%

 

 

0.0

%

 

 

0.1

%

 

 

(0.1

%)

Fair value adjustments to derivative liability

 

 

16.1

%

 

 

0.0

%

 

 

4.8

%

 

 

0.0

%

(Loss) gain on extinguishment of debt

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

Stock-based compensation

 

 

6.3

%

 

 

8.2

%

 

 

6.6

%

 

 

9.3

%

Provision for doubtful accounts

 

 

(0.4

%)

 

 

2.6

%

 

 

0.7

%

 

 

1.7

%

Severance

 

 

1.4

%

 

 

0.0

%

 

 

0.9

%

 

 

2.5

%

SEC/DOJ related legal fees

 

 

0.0

%

 

 

0.0

%

 

 

1.6

%

 

 

0.0

%

Legal settlement expense

 

 

(1.4

%)

 

 

0.0

%

 

 

(0.4

%)

 

 

2.4

%

Total adjustments to loss from continuing operations

 

 

43.1

%

 

 

28.0

%

 

 

33.4

%

 

 

33.3

%

Adjusted EBITDA

 

 

(32.5

%)

 

 

(38.0

%)

 

 

(23.5

%)

 

 

(44.7

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

** Adjustments may not add to the total figure due to rounding.

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sientra, Inc.

 

Reconciliation of US GAAP Gross Profit to Adjusted Gross Profit and Adjusted Gross Margin

 

(In thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net sales

 

$

19,544

 

 

$

22,570

 

 

$

65,231

 

 

$

65,481

 

Cost of goods sold

 

 

9,515

 

 

 

9,794

 

 

 

30,440

 

 

 

27,118

 

Gross profit

 

$

10,029

 

 

$

12,776

 

 

$

34,791

 

 

$

38,363

 

Gross margin

 

 

51.3

%

 

 

56.6

%

 

 

53.3

%

 

 

58.6

%

Adjustments to gross profit

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,386

 

 

 

301

 

 

 

4,087

 

 

 

1,132

 

Total adjustments to gross profit

 

 

1,386

 

 

 

301

 

 

 

4,087

 

 

 

1,132

 

Adjusted gross profit

 

$

11,415

 

 

$

13,077

 

 

$

38,878

 

 

$

39,495

 

Adjusted gross margin

 

 

58.4

%

 

 

57.9

%

 

 

59.6

%

 

 

60.3

%

 

 

Sientra, Inc.

 

Reconciliation of US GAAP Operating Expenses to Non-GAAP Operating Expenses

 

(In thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

US GAAP operating expenses, as reported

 

$

19,426

 

 

$

25,334

 

 

$

61,863

 

 

$

82,954

 

Adjustments to GAAP operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

501

 

 

 

1,244

 

 

 

1,459

 

 

 

3,815

 

Fair value adjustments to contingent consideration

 

 

 

 

 

 

 

 

90

 

 

 

(88

)

Stock-based compensation

 

 

1,233

 

 

 

1,855

 

 

 

4,293

 

 

 

6,113

 

Provision for doubtful accounts

 

 

(86

)

 

 

582

 

 

 

448

 

 

 

1,086

 

Severance

 

 

280

 

 

 

 

 

 

598

 

 

 

1,635

 

SEC/DOJ related legal fees

 

 

 

 

 

 

 

 

1,016

 

 

 

 

Legal settlement expense

 

 

(265

)

 

 

 

 

 

(265

)

 

 

1,600

 

Total adjustments to GAAP operating expenses

 

 

1,663

 

 

 

3,681

 

 

 

7,639

 

 

 

14,161

 

Non-GAAP operating expenses

 

 

17,763

 

 

 

21,653

 

 

 

54,224

 

 

 

68,793

 

 

 

 


 

Sientra, Inc.

 

Reconciliation of US GAAP Operating Expenses to Non-GAAP Operating Expenses

 

(In thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

US GAAP operating expenses, as reported

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

$

9,330

 

 

$

12,290

 

 

$

29,487

 

 

$

41,542

 

Research and development

 

 

2,476

 

 

 

3,720

 

 

 

7,571

 

 

 

9,823

 

General and administrative

 

 

7,620

 

 

 

9,324

 

 

 

24,805

 

 

 

31,589

 

Total GAAP operating expenses, as reported

 

$

19,426

 

 

$

25,334

 

 

$

61,863

 

 

$

82,954

 

Adjustments to GAAP operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

425

 

 

 

640

 

 

 

1,332

 

 

 

3,065

 

Research and development

 

 

205

 

 

 

173

 

 

 

528

 

 

 

575

 

General and administrative

 

 

1,033

 

 

 

2,868

 

 

 

5,779

 

 

 

10,521

 

Total adjustments to GAAP operating expenses

 

 

1,663

 

 

 

3,681

 

 

 

7,639

 

 

 

14,161

 

Non-GAAP operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

8,905

 

 

 

11,650

 

 

 

28,155

 

 

 

38,477

 

Research and development

 

 

2,271

 

 

 

3,547

 

 

 

7,043

 

 

 

9,248

 

General and administrative

 

 

6,587

 

 

 

6,456

 

 

 

19,026

 

 

 

21,068

 

Total Non-GAAP operating expenses

 

$

17,763

 

 

$

21,653

 

 

$

54,224

 

 

$

68,793

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sientra, Inc.

 

Free Cash Flow

 

(In thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash flow used in operating activities - continuing operations

 

$

(3,367

)

 

$

(2,605

)

 

$

(10,159

)

 

$

(33,450

)

Purchases of property and equipment

 

 

(270

)

 

 

(1,043

)

 

 

(1,056

)

 

 

(1,856

)

Free cash flow

 

$

(3,637

)

 

$

(3,648

)

 

$

(11,216

)

 

$

(35,306

)

 

 


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Document And Entity Information
Nov. 09, 2023
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Nov. 09, 2023
Entity Registrant Name SIENTRA, INC.
Entity Central Index Key 0001551693
Entity Emerging Growth Company false
Securities Act File Number 001-36709
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 20-5551000
Entity Address, Address Line One 3333 Michelson Drive, Suite 650
Entity Address, City or Town Irvine
Entity Address, State or Province CA
Entity Address, Postal Zip Code 92612
City Area Code 805
Local Phone Number 562-3500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol SIEN
Security Exchange Name NASDAQ
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