Align Technology Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016; Provides Earnings Guidance for the First Quarter of 2017
January 31, 2017 at 04:00 pm
Share
Align Technology Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, the company's net revenues were $293,203,000 against $230,276,000 a year ago. Operating profit was $68,372,000 against $59,339,000 a year ago. Profit before income taxes was $60,856,000 against $59,652,000 a year ago. Net profit was $47,621,000 or $0.61 diluted per share against $48,877,000 or $0.61 per share a year ago. Cash flow from operations was $81 million and free cash flow for the quarter, defined as cash flow from operations less capital expenditures, amounted to a record $66.8 million. Capital expenditures were $14.2 million, primarily relating to equipment purchases for additional manufacturing capacity as well as building improvements.
For the year, the company's net revenues were $1,079,874,000 against $845,486,000 a year ago. Operating profit was $248,921,000 against $188,634,000 a year ago. Profit before income taxes was $242,566,000 against $186,101,000 a year ago. Net profit was $189,682,000 or $2.33 diluted per share against $144,020,000 or $1.77 diluted per share a year ago. Free cash flow was $177.1 million.
For the first quarter of 2017, the company expects net revenues in the range of $295.0 million to $298.0 million and diluted EPS in the range of $0.64 to $0.67. Gross margin is expected to be between 74.2% to 74.5% and operating margin is expected to be 19.1% to 19.3%. Capital expenditure is expected to be in the range of $70 million to $75 million, Depreciation & Amortization is expected to be in the range of $8 million to $8.5 million and tax rate is expected to be 1%.
Align Technology, Inc. specializes in the design, manufacturing and marketing of dental and medical devices. Net sales break down by family of products as follows:
- clear aligners (82.8%): sold under the brand name Invisalign;
- intra-oral scanners (17.2%): iTero. The group also offers scanner services.
Net sales are distributed geographically as follows: the United States (43.1%), Switzerland (30.3%), and other (26.6%).
Align Technology Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016; Provides Earnings Guidance for the First Quarter of 2017