Accelerated Business Momentum to Obtain Internet Income of $20.5 million

2022 Income Steering Vary Raised to $67 million to $75 million

ANDOVER, Mass., Aug. 1, 2022 /PRNewswire/ — TransMedics Group, Inc. (“TransMedics”) (Nasdaq: TMDX), a medical know-how firm that’s remodeling organ transplant remedy for sufferers with end-stage lung, coronary heart, and liver failure, immediately reported monetary outcomes for the quarter ended June 30, 2022. The Firm additionally introduced it entered into a brand new $60 million five-year mortgage settlement with CIBC Innovation Banking (“CIBC”), which was totally funded upon closing.

Current Highlights 

• Internet income of $20.5 million within the second quarter of 2022, a 151% improve in comparison with the second quarter of 2021.  Transplant facilities use of the Nationwide OCS Program (NOP) drove 84% of whole US income.

• Built-in OCS™ Coronary heart DCD providing into NOP

• Refinanced excellent debt with new $60 million time period mortgage

“For the third sequential quarter we posted vital progress over the identical interval from the earlier yr. The second quarter outcomes additional validated that NOP is a important catalyst that can gasoline our anticipated progress for the foreseeable future,” mentioned Waleed Hassanein, MD, President, and Chief Government Officer. “We’re nonetheless very early on our progress trajectory, and we totally anticipate to proceed to construct on our momentum. We stay up for additional broadening our NOP infrastructure and sources with the aim to maximise our protection capability and drive vital progress in transplant procedures within the US and all over the world over the following a number of years.”

“We’re happy to have secured a non-dilutive debt financing, enabling us to retire our current debt facility whereas offering TransMedics with incremental monetary flexibility to proceed to scale the enterprise,” mentioned Waleed Hassanein, MD, President, and Chief Government Officer. “We stay up for a long-term and profitable partnership with CIBC Innovation Financial institution as we proceed develop our market presence.”

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Debt Financing Settlement
On July 25, 2022, TransMedics entered into a brand new $60 million five-year mortgage settlement with CIBC, which was totally funded upon closing. A portion of the proceeds from the brand new credit score facility have been used to repay the Firm’s current $35 million credit score facility with OrbiMed Advisors LLC (“OrbiMed”). The transaction, following the retirement of the prior facility with OrbiMed, offered web proceeds of $23 million of money to the Firm.

Cowen acted as unique monetary advisor to TransMedics on this transaction. Further element relating to the financing is ready forth within the Firm’s Present Report on Type 8-Okay, filed with the SEC.

Second Quarter 2022 Monetary Outcomes
Internet income for the second quarter of 2022 was $20.5 million, a 151% improve in comparison with $8.2 million within the second quarter of 2021. The elevated income was due primarily to the continued improve in industrial gross sales of the OCS™ Coronary heart and OCS™ Liver in the US.

Gross margin for the second quarter of 2022 was 70%, as in comparison with 68% within the second quarter of 2021.

Working bills for the second quarter of 2022 have been $24.1 million, in comparison with $15.5 million within the second quarter of 2021. The rise in working expense was pushed primarily by elevated funding within the firm’s NOP, our subsequent technology OCS™ platform, in addition to additional investments on the whole industrial efforts and company infrastructure. Second quarter working bills in 2022 included $2.three million of inventory compensation expense, in comparison with $1.Eight million of inventory compensation within the second quarter of 2021.

Internet loss for the second quarter of 2022 was $11.5 million, in comparison with $10.7 million within the second quarter of 2021.

Money, money equivalents and marketable securities have been $58.1 million as of June 30, 2022, unique of web proceeds from the latest debt financing settlement.

2022 Monetary Outlook
TransMedics is updating full yr 2022 web income to be within the vary of $67 million to $75 million, which represents 121% to 148% progress in comparison with the corporate’s prior yr web income. TransMedics’ prior 2022 web income steerage was $59 million to $65 million.

Webcast and Convention Name Particulars
The TransMedics administration workforce will host a convention name starting at 4:30 p.m. ET / 1:30 p.m. PT on Monday, August 1, 2022. Buyers fascinated by listening to the convention name could accomplish that by dialing (844) 200-6205 for home callers or (929) 526-1599 for worldwide callers, adopted by Convention ID: 626851. A stay and archived webcast of the occasion shall be accessible on the “Buyers” part of the TransMedics web site at www.transmedics.com.

About TransMedics Group, Inc.
TransMedics is the world’s chief in moveable extracorporeal heat perfusion and evaluation of donor organs for transplantation. Headquartered in Andover, Massachusetts, the corporate was based to deal with the unmet want for extra and higher organs for transplantation and has developed applied sciences to protect organ high quality, assess organ viability previous to transplant, and probably improve the utilization of donor organs for the remedy of end-stage coronary heart, lung, and liver failure.

Ahead-Trying Statements
This press launch comprises forward-looking statements with respect to, amongst different issues, our full yr steerage, and statements about our operations, monetary place, and enterprise plans. These forward-looking statements are topic to numerous dangers, uncertainties and assumptions. Furthermore, we function in a really aggressive and quickly altering atmosphere and new dangers emerge every now and then. It’s not attainable for our administration to foretell all dangers, nor can we assess the impression of all components on our enterprise or the extent to which any issue, or mixture of things, could trigger precise outcomes to vary materially from these contained in or implied by any forward-looking statements we could make. In gentle of those dangers, uncertainties and assumptions, the forward-looking occasions and circumstances mentioned on this press launch could not happen and precise outcomes may differ materially and adversely from these anticipated or implied within the forward-looking statements. Among the key components that might trigger precise outcomes to vary embrace: that we proceed to incur losses; our want to lift extra funding; our current and any future indebtedness, together with our potential to adjust to affirmative and destructive covenants beneath our credit score settlement to which we’ll stay topic to till maturity, and our potential to acquire extra financing or refinance current debt on favorable phrases or in any respect; the fluctuation of our monetary outcomes from quarter to quarter; our potential to make use of web working losses and analysis and growth credit score carryforwards; our dependence on the success of the OCS; our potential to increase entry to OCS by way of the Nationwide OCS Program; the speed and diploma of market acceptance of the OCS; our potential to coach sufferers, surgeons, transplant facilities and personal payors of advantages provided by the OCS; our potential to enhance the OCS platform; our dependence on a restricted variety of clients for a good portion of our web income; our potential to keep up regulatory approvals or clearances for our OCS merchandise, together with the re-certification of the CE marks for our OCS merchandise within the European Union and any delays in acquiring re-certification; our potential to adequately reply to FDA follow-up inquiries in a well timed method; the efficiency of our third-party suppliers and producers; worth will increase of the parts of our merchandise; the timing or outcomes of post-approval research and any medical trials for the OCS; our manufacturing, gross sales, advertising and marketing and medical assist capabilities and technique; assaults in opposition to our info know-how infrastructure; the financial, political and different dangers related to our international operations; our potential to draw and retain key personnel; the impression of the outbreak of COVID-19, together with variants of the virus and related containment, remediation and vaccination efforts; our potential to guard, defend, preserve and implement our mental property rights referring to the OCS and keep away from allegations that our merchandise infringe, misappropriate or in any other case violate the mental property rights of third events; the pricing of the OCS, in addition to the reimbursement protection for the OCS in the US and internationally; regulatory developments in the US, European Union and different jurisdictions; the extent and success of competing merchandise which can be or could grow to be accessible; the impression of any product remembers or improper use of our merchandise; our estimates relating to revenues, bills and desires for added financing; and different components that could be described in our filings with the Securities and Alternate Fee (the “SEC”). Further info shall be made accessible by our annual and quarterly stories and different filings that we make every now and then with the SEC. These forward-looking statements communicate solely as of the date of this press launch. Elements or occasions that might trigger our precise outcomes to vary could emerge every now and then, and it’s not attainable for us to foretell all of them. We undertake no obligation to replace any forward-looking assertion, whether or not because of new info, future developments or in any other case, besides as could also be required by relevant regulation.

Investor Contact:
Brian Johnston
332-895-3222
Buyers@transmedics.com

* Reconciliation of Gross to Internet income for sure funds made to clients (in 1000’s)

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SOURCE TransMedics Group, Inc.