Lehigh Valley

Orasure reports healthy gains in sales

BETHLEHEM, Pa. - OraSure Technologies Inc. (NASDAQ:OSURE) a manufacturer of medical diagnostic tests and specimen collection devices based in Bethlehem, announced healthy revenue gains for its third quarter and for the first nine months of 2017.

“We are very pleased with the third quarter financial results," said President and CEO Doug Michels. "Sales of our molecular collections products during the quarter were particularly strong and our infectious disease business experienced strong growth compared to the prior year quarter.  We continue to deliver on our strategic growth priorities and we expect our strong performance to continue into the fourth quarter.”

Consolidated net revenue increased by 31 percent in the third quarter over the same period a year ago, while earnings lagged by 9 percent. The earnings decline was largely the result of higher income taxes. Revenue increased to $42.3 million, while earnings dropped from 11 cents to 10 cents a share.

For the nine-month period, revenue increased by 24 percent and earnings by 74 percent, from 23 cents a share 40 cents a share.

Consolidated operating expense decreased by $10.5 million for the first nine months of 2017 over 2016. But increases in doubtful accounts, higher staffing costs and higher external commissions for the third quarter were noted.

During a company webcast, Michels and CFO and Ron Spair presented company key financial and operating information. Among the fastest growing areas for Orasure were sales of Molecular Collection Systems, OraQuick Hepatitis C testing and international sales of OraQuick HIV testing.

Molecular Collection Systems third quarter 2017 net revenues increased 123 percent over 2016 and 43 percent year-to-date 2017 over 2016. OraQuick HCV product sales increased 185 percent in third quarter of 2017 over the same period in 2016 and increased 144 percent year-to-date 2017 over 2016.

International sales consolidated net revenues for OraQuick HIV products increased 176 percent for third quarter 2017 over 2016 and 97 percent year-to-date 2017 over 2016

The company reported that capital investment for expanding manufacturing and warehouse facilities is currently in progress and with projects scheduled for completion in early 2018. Orasure indicates the additional capacity is needed for continuous revenue increases expected in 2018.

Key Financial Highlights

Consolidated Net Revenue (million)  2017      2016      Change

Q3                                                $42.3     $32.3     +31%

9 Months                                       $115.0   $92.7     +24%

Consolidated Net Income (million)

Q3                                                $5.8       $6.2      -6%

9 Months                                       $23.6     $12.5    +89%

Consolidated Earnings Per Share - Basic

Q3                                                $0.10     $0.11     -9%

9 Months                                       $0.40     $0.23     +74%

Consolidated Current Ratio (million)

9 Months – Current Assets              $209.3    $152.6   +57%

9 Months – Current Liabilities           $26.6      $17.3     +9%

Current Ratio                                  7.9          8.8         -10%

Other Balance Sheet Items

9 Months – Capital Expenditures      $3.5        $3.5     ----

Depreciation/Amortization                $4.6        $4.2     +10%

Stock-Based Compensation             $5.2        $4.4     +18%

Cash Provided by Operations            $30.4      $25.2    +21%

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