Viveve Medical, Inc. reports 28.2% CAPEX decline in 2020 and 16.6% Revenue decline
03/18/2021 • About Viveve Medical, Inc. (
$VIVE) • By InTwits
Viveve Medical, Inc. reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -308.5%
- Viveve Medical, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2016-2020 was 0.0% while average EBITDA Margin was -268.3% for the sames years
- Viveve Medical, Inc. has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.4%. At the same time it's a lot of higher than industry average of 5.8%.
- CAPEX is quite volatile: $1m in 2020, $1m in 2019, $2m in 2018, $1m in 2017, $0m in 2016
- The company has unprofitable business model: ROIC is -105.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.5x while industry average is 3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Viveve Medical, Inc.'s Revenue dropped on 16.6%. Annual revenue decline showed slowdown in 20Q4 - revenue surged on 34.2%. Revenue decline was accelerating on average at -99.9 pp per annum in the last 5 years. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 136 pp from -445% to -308% in 2020.
Gross Margin dropped on 10.1 pp from 15.5% to 5.4% in 2020. During the last 5 years Gross Margin topped in 2017 at 48.7% and was declining since that time. SG&A as a % of Revenue dropped on 91.1 pp from 341% to 249% in 2020. During 2016-2020 SG&A as a % of Revenue topped in 2019 at 341%.
Net Income margin jumped on 248 pp from -648% to -400% in 2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 14.3% in 2020. CAPEX/Revenue increased on 8.3 pp from 5.9% in 2017 to 14.3% in 2020. Average CAPEX/Revenue for the last three years was 14.1%. CAPEX as a % of Revenue stuck to a growing trend at 3.2 pp per annum in the last 5 years.
Return on investment
The company operates at negative ROIC (-105.8%) and ROE (-221.9%). ROIC increased slightly on 0.75 pp from -107% to -106% in 2020. ROE jumped on 179 pp from -400% to -222% in 2020. ROIC stuck to a growing trend at 29.5 pp per annum in 2016-2020.
Leverage (Debt)
Debt level is 3.5x Net Debt / EBITDA and Debt / EBITDA. Debt surged on 36.7% while cash dropped on 51.0%.
Viveve Medical, Inc. has no short term refinancing risk: cash is higher than short term debt (621.2%).
Financial and operational results
FY ended 12/31/2020
Viveve Medical, Inc. ($VIVE) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 7.141 | 15.288 | 18.517 | 6.567 | 5.479 | -16.6% |
| Gross Profit | 2.529 | 7.444 | 7.320 | 1.016 | 0.296 | -70.9% |
| SG&A | 12.868 | 28.831 | 38.569 | 22.363 | 13.666 | -38.9% |
| EBITDA | -18.593 | -33.281 | -44.179 | -29.201 | -16.900 | |
| Net Income | -20.111 | -36.959 | -49.981 | -42.526 | -21.915 | |
Balance Sheet
|
|---|
| Cash | 8.086 | 20.730 | 29.523 | 13.308 | 6.523 | -51.0% |
| Short Term Debt | 1.867 | 0.000 | 0.000 | 0.268 | 1.050 | 291.8% |
| Long Term Debt | 7.762 | 28.948 | 30.528 | 4.115 | 4.943 | 20.1% |
Cash flow
|
|---|
| Capex | 0.256 | 0.905 | 2.142 | 1.087 | 0.781 | -28.2% |
Ratios
|
|---|
| Revenue growth | 393.5% | 114.1% | 21.1% | -64.5% | -16.6% | |
| EBITDA growth | 56.1% | 79.0% | 32.7% | -33.9% | -42.1% | |
|
|---|
| Gross Margin | 35.4% | 48.7% | 39.5% | 15.5% | 5.4% | -10.1% |
| EBITDA Margin | -260.4% | -217.7% | -238.6% | -444.7% | -308.5% | 136.2% |
| SG&A, % of revenue | 180.2% | 188.6% | 208.3% | 340.5% | 249.4% | -91.1% |
| Net Income Margin | -281.6% | -241.8% | -269.9% | -647.6% | -400.0% | 247.6% |
| CAPEX, % of revenue | 3.6% | 5.9% | 11.6% | 16.6% | 14.3% | -2.3% |
|
|---|
| ROIC | -212.5% | -188.5% | -144.4% | -106.5% | -105.8% | 0.8% |
| ROE | | | | -400.4% | -221.9% | 178.5% |
Viveve Medical, Inc. ($VIVE) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1 | 1 | 2 | 2 | | -56.7% | -33.1% | 44.9% | 34.2% |
| EBITDA | -5 | -5 | -3 | -4 | | - | - | - | - |
| Net Income | -6 | -7 | -4 | -5 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 9 | 9 | 9 | 7 | | -49.3% | -10.6% | 1.3% | -51.0% |
| Short Term Debt | 0 | 1 | 1 | 1 | | 16.8% | 232.3% | 237.4% | 291.8% |
| Long Term Debt | 4 | 4 | 4 | 5 | | -86.7% | -86.5% | -86.3% | 20.1% |
Ratios
|
|---|
| Gross Margin | 13.4% | -52.1% | 15.8% | 12.7% | | -22.1% | -62.7% | 20.3% | 20.9% |
| EBITDA Margin | -416.3% | -644.9% | -197.7% | -201.3% | | -137.7% | 116.5% | 389.8% | 254.9% |
| Net Income Margin | -483.9% | -1,010.7% | -245.1% | -244.2% | | -150.9% | -86.3% | 511.2% | 776.9% |
Peers in Health Care Equipment
Below we provide Viveve Medical, Inc. benchmarking against other companies in Health Care Equipment industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| MISONIX, Inc. ($MSON) | - | 18.0% | 34.5% | 5.9% | 60.8% |
| Cantel Medical Corp. ($CMD) | - | 15.9% | 13.2% | 5.3% | 10.7% |
| Allied Healthcare Products, Inc. ($AHPI) | - | -6.8% | 0.7% | -7.0% | 1.6% |
| Fonar Corporation ($FONR) | - | 6.4% | 4.5% | 7.0% | -1.7% |
| |
|---|
| Median (4 companies) | - | 15.9% | 4.5% | 5.3% | 6.1% |
|---|
| Viveve Medical, Inc. ($VIVE) | - | 114.1% | 21.1% | -64.5% | -16.6% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| MISONIX, Inc. ($MSON) | 67.1% | 69.9% | 73.3% | 70.2% | 70.0% |
| Fonar Corporation ($FONR) | 47.0% | 51.2% | 48.5% | 49.6% | 49.5% |
| Cantel Medical Corp. ($CMD) | 46.5% | 47.7% | 47.5% | 46.6% | 42.9% |
| Allied Healthcare Products, Inc. ($AHPI) | 20.5% | 19.6% | 19.1% | 16.1% | 17.5% |
| |
|---|
| Median (4 companies) | 46.5% | 47.7% | 47.5% | 46.6% | 46.2% |
|---|
| Viveve Medical, Inc. ($VIVE) | 35.4% | 48.7% | 39.5% | 15.5% | 5.4% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Fonar Corporation ($FONR) | 24.1% | 29.0% | 28.9% | 29.8% | 26.5% |
| Cantel Medical Corp. ($CMD) | 18.4% | 18.7% | 17.9% | 13.7% | 12.0% |
| Allied Healthcare Products, Inc. ($AHPI) | -1.9% | -2.9% | -3.2% | -6.2% | -7.4% |
| MISONIX, Inc. ($MSON) | -18.1% | -20.3% | -4.1% | -14.8% | -24.8% |
| |
|---|
| Median (4 companies) | -1.9% | -2.9% | -3.2% | -6.2% | 2.3% |
|---|
| Viveve Medical, Inc. ($VIVE) | -260.4% | -217.7% | -238.6% | -444.7% | -308.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Fonar Corporation ($FONR) | 1.0% | 3.7% | 3.4% | 3.8% | 8.8% |
| Cantel Medical Corp. ($CMD) | 2.8% | 3.5% | 4.3% | 10.4% | 3.3% |
| Allied Healthcare Products, Inc. ($AHPI) | 0.3% | 0.1% | 0.0% | 0.0% | 1.9% |
| MISONIX, Inc. ($MSON) | 2.0% | 1.8% | 1.0% | 1.8% | 0.5% |
| |
|---|
| Median (4 companies) | 2.0% | 3.3% | 2.4% | 3.8% | 2.6% |
|---|
| Viveve Medical, Inc. ($VIVE) | 3.6% | 5.9% | 11.6% | 16.6% | 14.3% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Fonar Corporation ($FONR) | 17.4% | 25.3% | 26.9% | 24.8% | 14.7% |
| Cantel Medical Corp. ($CMD) | 17.5% | 17.3% | 16.1% | 9.5% | 3.5% |
| MISONIX, Inc. ($MSON) | -24.0% | -24.9% | -11.1% | -31.9% | -18.0% |
| Allied Healthcare Products, Inc. ($AHPI) | -9.8% | -11.8% | -13.1% | -21.2% | -26.0% |
| InVivo Therapeutics Holdings Corp. ($NVIV) | -98.6% | -119.4% | -94.0% | -98.7% | -68.1% |
| |
|---|
| Median (8 companies) | -36.6% | -48.6% | -40.3% | -61.7% | -47.1% |
|---|
| Viveve Medical, Inc. ($VIVE) | -212.5% | -188.5% | -144.4% | -106.5% | -105.8% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cantel Medical Corp. ($CMD) | 0.7x | 0.6x | 0.7x | 1.5x | 6.8x |
| Fonar Corporation ($FONR) | -0.2x | -0.4x | -0.8x | -0.5x | -0.0x |
| |
|---|
| Median (2 companies) | 0.2x | 0.1x | -0.1x | 0.5x | 3.4x |
|---|
