Align Technology Reports Second Quarter 2022 Financial Results

\n \n \n “. concat(self. i18n. t(‘search. voice. recognition_retry’), “\n

The company is performing well despite unprecedented global economic headwinds and the continued effects of COVID-19 variants in some markets.

Total revenue for the second quarter of 2022 of $969. 6 million decreased sequentially and year-over-year

Revenue for the quarter of 2022 was negatively impacted by exchange rates of approximately $15. 3 million sequentially and approximately $39. 9 million year-over-year (1)

Source of operating income of $188. 2 million and operating margin of 19. 4% in the current quarter of 2022, which adversely affected through the exchange rate of approximately 1. 1 issues sequentially and approximately 2. 4 issues year-over-year (1)

Diluted earnings consistent with a consistent percentage of $1. 44 in Q2-22; Non-GAAP diluted earnings consistent with a consistent percentage for the current quarter of 2022 of $2. 00

Clear Aligner’s profit in the 2022 quarter of $798. 4 million and Clear Aligner’s volume of 599,000 boxes

CAD/CAM and Q22 imaging systems earnings of $171. 2 million, up 4. 7% sequentially and 0. 8% year-over-year

He purchased approximately 757,000 non-unusual percentages from Align at an average value of $264. 37 at a constant percentage for a total purchase valued at $200,000.

TEMPE, Ariz. , July 27, 2022–(BUSINESS WIRE)–Align Technology, Inc. (Nasdaq: ALGN), one of the world’s leading medical device corporations that designs, manufactures and sells the Invisalign® formulation of Array iTero™ clear aligners and exocad™ CAD/CAM software for virtual orthodontics and restorative dentistry, today announced monetary effects for the current quarter of fiscal year 2022 (“Q2’22”). 2Q22 Overall Income $969. 6 million, down 0. 4% sequentially and down 4. 1% year over year. Clear Aligner’s quarterly profit in 2022 was $798. 4 million, down 1. 4% sequentially and down 5. 1% year over year. Revenue So Far Quarter 2022 CAD/CAM Services and Imaging Systems $171. 2 million, up 4. 7% sequentially and 0. 8% year over year. Clear Aligner volume in the second quarter of 2022 was flat sequentially and decreased 10. 0% year over year. Second Quarter 22 CAD/CAM and Imaging Services earnings were negatively affected by foreign exchange by approximately $2. 9 million or 1. 7% sequentially and approximately $7. 0 million or 3, 9% year over year. (1) sequential industry of approximately $12. 3 million or 1. 5% and approximately $32. 9 million or 4. 0% d from one year to the next. 2Q’22 net source of earnings $112. 8 million, or $1. 44 in line with diluted participation. On a non-GAAP basis, net source earnings for the second quarter of 2022 were $157. 0 million or $2. 00 consistent with diluted participation.

Commenting on Align’s quarterly snapshot results, Align Technology President and CEO Joe Hogan said, “I am pleased to report strong quarterly snapshot results, relatively unchanged from the first quarter and an operating margin of around 20%. % despite the impact of an unfavorable exchange rate The underlying orthodontic market continues to have an effect through macroeconomic environmental issues and the lingering effects of variants of COVID-19 in certain markets Despite those headwinds , we continue to execute on our strategic initiatives, adding the opening of new offices in the Middle East and Africa and our new production facility in Poland, the launch of new responses to better support the way our consumers need to do business, such as the medical subscription and youth packages, and the launch of new products and Inventions to help our doctors and their patients. Inventions are revolutionizing virtual medicine, making plans and contributing. to the evolution of virtual orthodontics and comprehensive dentistry. Align is well placed to address existing market situations and lead the virtual revolution in orthodontics and dentistry as environmental trends and expansion improve. »

Financial Summary

2T’22

Q1’22

2T’21

Change Q/Q

Change Y/Y

Shipments of Invisalign cases

598,990

598 835

665 575

0. 0

%

(10. 0

) %

GAAP

Net income

$969. 6 million

$973. 2 million

$1,010. 8M

(0,4

) %

(4. 1

) %

transparent aligner

$798. 4 million

$809. 7 million

$841. 0 million

(1. 4

) %

(5. 1

) %

Image and CAD/CAM services

$171. 2 million

$163. 5 million

$169. 8 million

4,7

%

0,8

%

Net losses

$112. 8 million

$134. 3 million

$199. 7 million

(16,0

) %

(43,5

) %

Diluted EPS

$1. 44

$1. 70

$2. 51

($0. 26

)

($1. 07

)

non-GAAP

Net losses

$157. 0 million

$168. 7 million

$242. 1 million

(7. 0

) %

(35,2

) %

Diluted EPS

$2. 00

$2. 13

$3. 04

($0. 13

)

($1. 04

)

As of June 30, 2022, we had $977. 2 million in money, money equivalents, and short- and long-term marketable securities, compared to $1100 million as of March 31, 2022. our non-unusual inventory at an average value of $264. 37 consistent with a consistent percentage for a total acquisition worth $200. 0 million. We still have approximately $450. 0 million available for repurchase of our consistent non-unusual percentages under our $1. 0 billion buyback program in May 2021.

As of June 30, 2022, we also had $300. 0 million in a revolving credit facility.

Commenting on Align’s effects for the current quarter of 2022, John Morici, CFO and EVP Global Finance at Align Technology, said: “At times like these, our strong core business sets Align apart and we are grateful to have a successful underlying business style that generates a strong cash flow as well as a healthy balance sheet that provides the flexibility to invest in our expansion while supporting our employees, our consumers and shareholders. As we enter the part of the year, we will continue to manage investments to account for headwinds and uncertainty, while focusing on the good fortune of our strategic expansion drivers. “

Highlights of the announcement for the second quarter of 2022

On May 19, 2022, we introduced Invisalign Outcome Simulator Pro, the next generation of our complex patient communication tool, which allows physicians to show patients their potential new smile after Invisalign treatment, the front view and/or 3D view of the dentition, all finished. To the chair in a few minutes. Invisalign Outcome Simulator Pro was recently released on a limited basis on the market and will be available on all iTero Element™ Plus series scanners and imaging systems starting in 2022.

On May 20, 2022, we announced a strategic partnership with Asana to offer Asana Smiles™ for Align®, to Invisalign-trained physicians in the U. S. In the U. S. , a new paint control solution that offers a customizable paint flow solution that is helping practices track responsibilities tied to a patient’s Invisalign remedy lifecycle. Booking consultations, submitting prescriptions, tracking ClinCheck® software remediation plans, and preparing appointments for aligner delivery can be organized, tracked, and communicated seamlessly in one practice with Asana Smiles for Align. The solution can be implemented directly or as an additional solution for practices with other recently installed software.

On June 22, 2022, we announced a $250,000 donation to JA (Junior Achievement) worldwide through the Align Foundation, align’s donor-advised charitable fund through Fidelity Charitable. This donation commemorates Align’s 25th anniversary as a company that has reshaped smiles and replaced millions of others around the world through Align’s pioneering technological inventions and physician-centered business model.

On June 6, 2022, we announced 11 scholarships totaling $275,000 for universities under Align’s 12th annual scholarship program. presurgical treatment of cleft palate, maintenance of the dentition area combined with aligners, care of periodontal situations in treatment, and call for training in relation to treatment with aligners.

Align the webcast and convention call

We will host a conference call today, July 27, 2022, at 4:30 p. m. To access the webcast, stop at the “Events and Presentations” segment under Company Information on Align’s online Investor Relations page in http://investor. aligntech. com. To access the convention call, please dial 844-200-6205 with the access code 947492. About an hour after the end of the convention you will receive an archived audio webcast and be available for about a month. In addition, a telephone replay of the call can be obtained by dialing 866-813-9403 with the access code 137829. For foreign calls, call 929-458-6194 and use the same passcode mentioned above. 10, 2022.

About Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles sometimes accepted in the United States (“GAAP”), we may provide investors with certain non-GAAP monetary measures that may come with a net source Income Consistent Currency Matrix Earnings, Gross Margin, or Consistent with Expenses, or Consistent with Revenue Source, or Consistent with Margin, Consistent Currency, or Consistent with Revenue Source, Consistent Currency, or Consistent with Margin, Source of Interest of income and other source of income (expenses), netArray net source of income before provision for taxes on the source of income, provision for taxes on the source of income, effective tax rate, net source of income and/or net source income consistent with participation, which excludes certain portions that might not be indicative tives of our basic or consistent with consistent compliance, adding currency impacts, discrete monetary and non-monetary fees or earnings that are earned to the maximum extent of convenience directly comparable under GAAP. Unless otherwise stated, when referring to non-GAAP monetary measures, they exclude the effects of stock-based compensation, amortization of insurance acquired intangible assets, amortization of deferred tax assets similar to asset movement within the entity excluding inventories, the effects analogous to the acquisition, the prices and the profit from the arbitration award and, if applicable, the corresponding tax impacts.

We use non-GAAP monetary measures for monetary and operational decision-making and as a means of comparing comparisons from one era to another. Our control is that the use of certain non-GAAP monetary measures provides significant additional data related to our recurring core operating functionality. We, who control and investors, take credit for the reference to those non-GAAP monetary measures to compare our functionality and when planning, forecasting and analyzing long-term eras. These non-GAAP monetary measures also facilitate the internal evaluation of era-to-era control. Comparisons. We believe that those non-GAAP monetary measures are useful to investors because they allow (1) greater transparency regarding the key measures used through control in their monetary and operational decision-making and (2) are used through our investor institution and network of analysts to help them analyze the functionality of our company.

However, there are limitations to the use of non-GAAP monetary measures because they are not listed in accordance with GAAP and may differ from the non-GAAP monetary measures used by other companies. Non-GAAP monetary measures are price limited because they exclude certain items that may also materially affect our reported monetary effects. In addition, they are subject to inherent limitations as they reflect management’s judgment regarding expenses that are excluded from non-GAAP monetary measures. We compensate for those limitations by analyzing existing and long-term effects on a GAAP basis as well as on a non-GAAP basis and also by providing GAAP measures in our public disclosures. The presentation of non-GAAP monetary data deserves to be thought of as additional to, and not a replacement for or in isolation from, directly comparable monetary measures listed in accordance with GAAP. We encourage investors to review the reconciliation of our GAAP monetary measures to the comparable non-GAAP monetary measures included in this document and not to rely on any independent monetary measure to evaluate our business. For more information on those non-GAAP monetary measures, see the tables titled “Reconciliation of Unaudited GAAP and Non-GAAP Measures. “

About Align Technology, Inc.

Align Technology designs and manufactures the Invisalign® formula, the world’s most complex transparent alignment formula, iTero® intraoral scanners and facilities, and exocad® CAD/CAM software. more than 229,000 medical customers and are critical to accessing the market opportunities of Align’s 500 million customers worldwide. Align has helped physicians treat more than 13. 4 million patients with the Invisalign formula and is driving the evolution of virtual dentistry through the Align™ virtual platform, our built-in suite of proprietary and proprietary technologies and facilities delivered as a complete and comprehensive solution for patients and customers, orthodontists and general dentists, and laboratories/partners. Visit www. aligntech. com for more information.

To learn more about the Invisalign formula or to locate an Invisalign doctor in your area, visit www. invisalign. com. To learn more about iTero’s virtual scanning formula, visit www. itero. com. For more information on exocad’s dental CAD/CAM offerings and a list of exocad reseller partners, visit www. exocad. com.

Forward-Looking Statements

This press release, which includes the tables below, comprises forward-looking statements, statements of confidence and expectations relating to market opportunities, factors, occasions and occurrences affecting macroeconomic situations and predictability, the effect of new products and innovations, our positioning and ability to lead the virtual revolution in orthodontic treatment, the benefits of our operating style and balance sheet, our ability to manage investments and our spaces of concentration and commitment. The forward-looking statements contained in this press release relating to expectations related to long-term events or effects are based on data that should be aligned as of the date hereof. Readers are cautioned that such forward-looking statements reflect our most productive judgments based on recently known facts and cases and are subject to risks, uncertainties and assumptions. which are difficult to predict. As a result, actual effects may differ materially and adversely from those expressed in any forward-looking statement.

Factors that can cause such a difference include, but are limited to:

macroeconomic matrix that aggregates inflation, exchange rate fluctuations, general economic weakness, and recessions;

customer and customer purchasing habit and adjustments in the customer’s spending habit due, inter alia, to economic conditions, employment levels, wages and salaries, inflationary pressures, declining customer confidence, the army shock in Ukraine, exchange rate fluctuations and the effect of the central bank’s efforts to fight inflation and recession;

the impact of the COVID-19 pandemic and its variants on the health and protection of our employees, customers, patients and suppliers, as well as the physical and economic impact of the various recommendations, ordinances and protocols issued through local and national governments and government agencies in the face of the uninterrupted evolution of the pandemic, adding any periodic reapplication of preventive measures in various parts of the world;

the economic and geopolitical ramifications of the army clash in Ukraine, adding sanctions, retaliatory sanctions, nationalism, supply chain disruptions and other consequences, which possibly or continue to have a negative effect on our business and russia’s internal and outdoor studies and progress activities;

the timing, availability and charge of raw materials, components and products and other shipping and chain restrictions;

unforeseen events or adjustments in the expansion or decline of our domestic and/or foreign markets;

competition from and new competitors;

Revolutionary and evolving advances that fundamentally replace the dental industry or the way new and existing consumers market and supply products and facilities to consumers;

the ability to our intellectual property rights;

Continued compliance with regulatory requirements

the decrease or slowdown in the expansion of sales of our intraoral scanners at home and/or abroad and the effect this would have on the adoption of Invisalign products;

the willingness and ability of our consumers to and/or increase the use of products in sufficient quantities;

the option that the progression and commercialization of new products or innovations to existing products may not continue according to the planned schedule or possibly involve errors, errors or defects in software or hardware that require correction and that the market for the sale of such new or advanced products would possibly not expand as expected;

a more challenging customer call for the environment in China in general, namely for brands and service providers whose head or core operations are not located in China;

risks similar to our ability to develop or increase the skill or expansion of profits over long-term periods (or minimize falls) while controlling expenses;

the expansion of our products and services;

have an effect of excess or limited capacity in our production and processing facilities and strain on our internal systems and personnel;

the commitment of our systems or networks, adding to the visitor and / or patient the knowledge contained therein, for any reason;

the timing of presentation of cases by our doctors within a quarter, as well as an accumulation in production prices according to the case;

operational, political, military and similar dangers to our activities abroad; and

loss of key personnel, labor shortages or paint stoppages for us or our suppliers.

The above and other dangers are detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022 and our most recent quarterly report on Form 10-Q for the quarter ended 31 December 2021. March 2022, which was filed with the SEC on May 5, 2022. Alinear assumes no legal responsibility to publicly revise or update any forward-looking statements for any reason.

ALIGN TECHNOLOGY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

(in thousands, consistent with participation)

Three months completed

30 June,

Semester completed

30 June,

2022

2021

2022

2021

Net income

Ps

969 553

Ps

1 010 808

Ps

1 942 772

Ps

1 905 579

cost of income

281 994

252 270

545 867

469 943

Gross profit

687 559

758,538

1 396 905

1 435 636

Operating costs:

Selling and administrative expenses

426 398

431 921

865 855

829 036

Research and development

72 965

57 715

144 772

112 252

Total expenses

499 363

489 636

1 010 627

941 288

Operating income

188 196

268 902

386 278

494 348

Interest and other sources of income (expense), net:

Interest income

245

383

922

2 026

Other source of income (expenses), net

(14 832

)

(483

)

(26 105

)

34 049

Total interest and other sources of income (expense), net

(14 587

)

(100

)

(25 183

)

36 075

Net source of income before provision for taxes on the source of income

173 609

268 802

361 095

530 423

Provision for the source of income taxes

60 809

69 088

113 997

130 333

Net losses

Ps

112 800

Ps

199 714

Ps

247 098

Ps

400 090

Net income consistent with participation:

basics

Ps

1. 44

Ps

2. 53

Ps

3. 15

Ps

5. 06

Diluted

Ps

1. 44

Ps

2. 51

Ps

3. 13

Ps

5. 02

Shares used in the calculation of earnings consistent with participation:

basics

78 395

79 008

78 568

79 004

Diluted

78 545

79 638

78 840

79 737

ALIGN TECHNOLOGY, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

(thousands)

June 30, 2022

December 31, 2021

ASSETS

Current assets:

Cash and money equivalents

Ps

877 501

Ps

1 099 370

short-term marketable securities

22 138

71 972

Accounts receivable, net

931 854

897 198

Inventories

310 046

230 230

Expenses paid in advance and existing assets

235 265

195 305

Total assets

2 376 804

2 494 075

long-term marketable securities

77 551

125 320

Tangible capital assets, net

1,182,444

1 081 926

Assets by operating rights, net

117 912

121 257

Goodwill

390 100

418 547

Intangible assets, net

93 817

109 709

Deferred tax assets

1 518 648

1 533 767

Other assets

52 843

57 509

Total assets

Ps

5 810 119

Ps

5 942 110

COMMITMENTS AND EQUITY

Current liabilities:

Accounts payable

Ps

145 607

Ps

163 886

Accrued obligations

416 459

607 315

Deferred revenue

1 242 348

1 152 870

Total liability

1 804 414

1 924 071

Income Tax payable

116 414

118 072

Operating debts

98 332

102 656

Other long-term liabilities

191 878

174 597

Total responsibilities

2 211 038

2 319 396

Total equity for shareholders

3 599 081

3 622 714

Total liabilities and equity

Ps

5 810 119

Ps

5 942 110

ALIGN TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF UNAUDITED CASH FLOWS

(thousands)

Semester ended June 30

2022

2021

CASH FLOWS BY OPERATIONAL ACTIVITIES

Net cash flows from operating activities

Ps

157 543

Ps

544 691

CASH FLOW FROM INVESTMENT ACTIVITIES

Net money used in investment activities

(72 078

)

(123 920

)

CASH FLOWS FROM FINANCING ACTIVITIES

Net money used in financing activities

(312 396

)

(291 756

)

Effect of exchange rate adjustments on money, money equivalents and allocated money

4 978

(3 511

)

Net accumulation (decrease) of money, money equivalents and allocated money

(221 953

)

125 504

Cash, cash equivalents and money allocated at the beginning of the period

1 100 139

961 474

Cash, cash equivalents and money allocated at the end of the period

Ps

878 186

Ps

1 086 978

ALIGN TECHNOLOGY, INC.

INVISALIGN BUSINESS METRICS

Q1

Q2

Q3

Q4

Q1

Q2

2021

2021

2021

2021

2022

2022

Invisalign Average Selling Price (ASP):

Complete ASP Products

Ps

1 265

Ps

1 250

Ps

1 255

Ps

1 270

Ps

1 315

Ps

1 280

Non-complete ASP products

Ps

1 030

Ps

1 040

Ps

1 050

Ps

1 040

Ps

1 080

Ps

1 085

Number of Invisalign medical instances sent to:

Americas

38 975

40 740

41 310

40 460

39 455

39 815

International

39 630

42 725

44 190

43 080

42 985

42 460

Total number of physician instances sent to

78 605

83 465

85 500

83 540

82 440

82 275

Invisalign Doctor Rate*:

North America

9. 1

9. 9

9. 8

9. 3

9. 2

9. 3

American orthodontists

26,8

29. 4

29,7

26,9

26,8

26,8

North American General Dentists

4. 8

5. 3

5. 0

5. 1

5. 0

5. 1

International

6. 8

7. 1

6. 5

6. 8

6. 4

6. 4

Total usage rates**

7. 6

8. 0

7. 7

7. 6

7. 3

7. 3

* # of envoys / # of doctors to whom they have been sent

** LATAM usage rate is not disclosed but is included in the overall usage rates

ALIGN TECHNOLOGY, INC.

STOCK-BASED COMPENSATION

(thousands)

Q1

Q2

Q3

Q4

Prosecutor

Q1

Q2

2021

2021

2021

2021

2021

2022

2022

Share-based reimbursement (SBC):

SBC in gross profit

Ps

1 306

Ps

1 418

Ps

1 451

Ps

1 458

Ps

5 633

Ps

1 514

Ps

1 614

SBC included in expenses

25 935

27 437

26 951

28 380

108 703

30 107

32 526

Total CCS

. . .

Leave a Comment

Your email address will not be published. Required fields are marked *