Athersys, Inc. :ATHX-US: Earnings Analysis: Q3, 2016 By the Numbers : November 28, 2016

Athersys, Inc. reports financial results for the quarter ended September 30, 2016.

We analyze the earnings along side the following peers of Athersys, Inc. – Vericel Corporation, Orexigen Therapeutics, Inc., Amgen Inc., Johnson & Johnson, Bristol-Myers Squibb Company, Pfizer Inc. and Marina Biotech, Inc. (VCEL-US, OREX-US, AMGN-US, JNJ-US, BMY-US, PFE-US and MRNA-US) that have also reported for this period.

Highlights

  • Summary numbers: Revenues of USD 0.31 million, Net Earnings of USD -6.00 million.
  • Year-on-year change in operating cash flow of -49.39% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Earnings rose compared to same period last year, despite decline in operating and pretax margins.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2016-09-30 2016-06-30 2016-03-31 2015-12-31 2015-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 0.31 0.6 15.46 10.61 0.4
Revenue Growth (%YOY) -21.46 175.46 2014.64 4412.77 35.15
Earnings (mil) -6 -6.96 4.75 3.59 -6.5
Earnings Growth (%YOY) 7.59 -572.08 138.05 154.81 -37.68
Net Margin (%) -1930.55 -1169.08 30.73 33.87 -1640.66
EPS -0.07 -0.08 0.06 0.04 -0.08
Return on Equity (%) -134.18 -123.1 84.15 81.57 -140.94
Return on Assets (%) -93.8 -91.42 65.39 51.57 -77.49

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Market Share Versus Profits

Revenues History
Earnings History

ATHX-US‘s change in revenue this period compared to the same period last year of -21.46% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that ATHX-US is holding onto its market share. Also, for comparison purposes, revenues changed by -47.73% and earnings by 13.69% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Cash Versus Earnings – Sustainable Performance?

ATHX-US‘s change in operating cash flow of -49.39% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.

Operating Cash Flow Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Cash Flow based Earnings, Likely Non-cash Earnings, Low Cash Flow Base, Likely Undeclared Earnings

Margins

Despite a decline in operating (EBIT) margins as well as a decline in pretax margins, the company’s earnings rose.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

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Company Profile

Athersys, Inc. is a biopharmaceutical company which engages in the discovery and development of therapies designed to extend and enhance the quality of human life. Its product development program, MultiStem, a proprietary off the shelf stem cell product used to treat indications in the inflammatory & immune, neurological and cardiovascular disease areas. The Company was founded by John J. Harrington and Gil van Bokkelen on October 24, 1995 and is headquartered in Cleveland, OH.

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