News Release Details

AtriCure Reports Second Quarter 2021 Financial Results

August 4, 2021 at 4:01 PM EDT

MASON, Ohio--(BUSINESS WIRE)--Aug. 4, 2021-- AtriCure, Inc. (Nasdaq: ATRC), a leading innovator in treatments for atrial fibrillation (Afib) and left atrial appendage (LAA) management, today announced second quarter 2021 financial results.

“Our second quarter results were driven by outperformance across our business, as strong underlying demand returned and we saw continued progress toward making our platforms the standard of care,” said Michael Carrel, President and Chief Executive Officer of AtriCure. “We are poised for accelerating growth with the recent FDA approval of our EPi-Sense® System to improve the lives of millions of patients with long-standing persistent Afib. This approval enriches the foundation of our Company, built on core technologies which continue to deliver solid growth as we address vastly underpenetrated markets.”

Second Quarter 2021 Financial Results
Revenue for the second quarter of 2021 was $71.4 million, an increase of 74.8% (an increase of 73.5% on a constant currency basis) over second quarter 2020 revenue. U.S. revenue was $60.1 million, an increase of $26.4 million or 78.4%, compared to second quarter 2020 revenue. U.S. revenue growth was seen across all product lines, driven by the receding impact of the COVID-19 pandemic in 2021 which resulted in stabilizing cardiac surgery procedure volumes and increasing demand. International revenue increased $4.1 million or 57.9% (an increase of 50.2% on a constant currency basis) to $11.3 million, reflecting growth in most major markets and across product lines. On a sequential basis, worldwide revenue for the second quarter 2021 increased approximately 20% over first quarter 2021.

Gross profit for the second quarter of 2021 was $54.1 million compared to $27.7 million for the second quarter of 2020. Gross margin was 75.8% and 67.7% for the second quarters of 2021 and 2020 respectively, reflecting the increase in revenue and reduced fixed cost burden on cost of revenue with the return to normal production in 2021, along with the favorable impact of both geographic and product mix.

Loss from operations for the second quarter of 2021 was $15.1 million, compared to $7.3 million for the second quarter of 2020. Net loss per share was $0.36 for the second quarter of 2021, compared to $0.20 for the second quarter of 2020.

Adjusted EBITDA was a loss of $2.7 million for the second quarter of 2021 compared to a $6.1 million loss for the second quarter of 2020. Adjusted loss per share for the second quarter of 2021 was $0.30 compared to $0.38 for the second quarter of 2020.

Constant currency revenue, adjusted EBITDA and adjusted loss per share are non-GAAP measures. We discuss these non-GAAP measures and provide reconciliations to GAAP measures later in this release.

2021 Financial Guidance
Management is updating revenue guidance for full year 2021 to a range of $270 to $275 million, corresponding to growth of approximately 31% to 33% for the year. As with previous guidance, continued uncertainty relating to the dynamic environment with the COVID-19 pandemic could materially impact this projection. The Company is maintaining guidance for full year 2021 adjusted EBITDA loss of approximately $10 million, and updating guidance for an adjusted loss per share of approximately $1.20.

Conference Call
AtriCure will host a conference call at 4:30 p.m. Eastern Time on Wednesday, August 4, 2021 to discuss its second quarter 2021 financial results. The call may be accessed through an operator by calling (844) 884-9951 for domestic callers and (661) 378-9661 for international callers using conference ID number 8299332. A live audio webcast of the presentation may be accessed by visiting the Investors page of AtriCure’s corporate website at ir.atricure.com. A replay of the presentation will be available for 90 days following the presentation.

About AtriCure
AtriCure, Inc. provides innovative technologies for the treatment of Afib and related conditions. Afib affects more than 33 million people worldwide. Electrophysiologists and cardiothoracic surgeons around the globe use AtriCure technologies for the treatment of Afib and reduction of Afib related complications. AtriCure’s Isolator® Synergy™ Ablation System is the first medical device to receive FDA approval for the treatment of persistent Afib. AtriCure’s AtriClip Left Atrial Appendage Exclusion System products are the most widely sold LAA management devices worldwide. AtriCure’s Hybrid AFTM Therapy is a minimally invasive procedure that provides a lasting solution for long-standing persistent Afib patients. AtriCure’s cryoICE cryoSPHERE® probe is cleared for temporary ablation of peripheral nerves to block pain, providing pain relief in cardiac and thoracic procedures. For more information, visit AtriCure.com or follow us on Twitter @AtriCure.

Forward-Looking Statements
This press release contains “forward-looking statements”– that is, statements related to future events that by their nature address matters that are uncertain. This press release also includes forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially. For details on the uncertainties that may cause our actual results to be materially different than those expressed in our forward-looking statements, visit http://www.atricure.com/fls as well as our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q which contain risk factors. We do not undertake to update our forward-looking statements.

Use of Non-GAAP Financial Measures
To supplement AtriCure’s condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, AtriCure provides certain non-GAAP financial measures in this release as supplemental financial metrics.

Revenue reported on a constant currency basis is a non-GAAP measure, calculated by applying previous period foreign currency exchange rates, which are determined by the average daily Euro to Dollar exchange rate, to each of the comparable periods. Management analyzes revenue on a constant currency basis to better measure the comparability of results between periods. Because changes in foreign currency exchange rates have a non-operating impact on revenue, the Company believes that evaluating growth in revenue on a constant currency basis provides an additional and meaningful assessment of revenue to both management and investors.

Adjusted EBITDA is calculated as Net loss before other income/expense (including interest), income tax expense, depreciation and amortization expense, share-based compensation expense, acquisition costs, legal settlement costs, and change in fair value of contingent consideration liabilities. Management believes in order to properly understand short-term and long-term financial trends, investors may wish to consider the impact of these excluded items in addition to GAAP measures. The excluded items vary in frequency and/or impact on our continuing results of operations and management believes that the excluded items are typically not reflective of our ongoing core business operations and financial condition. Further, management uses adjusted EBITDA for both strategic and annual operating planning. A reconciliation of adjusted EBITDA reported in this release to the most comparable GAAP measure for the respective periods appears in the table captioned “Reconciliation of Non-GAAP Adjusted Income (Loss) (Adjusted EBITDA)” later in this release.

Adjusted loss per share is a non-GAAP measure which calculates the net loss per share before non-cash adjustments in fair value of contingent consideration liabilities and legal settlement costs. A reconciliation of adjusted loss per share reported in this release to the most comparable GAAP measure for the respective periods appears in the table captioned “Reconciliation of Non-GAAP Adjusted Loss Per Share” later in this release.

The non-GAAP financial measures used by AtriCure may not be the same or calculated in the same manner as those used and calculated by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for AtriCure’s financial results prepared and reported in accordance with GAAP. We urge investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financials measures included in this press release, and not to rely on any single financial measure to evaluate our business.

                       

 

 

 

 

 

 

 

 

 

 

 

 

ATRICURE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

United States Revenue:

 

 

 

 

 

 

 

 

 

 

 

Open ablation

$

24,839

 

 

$

15,550

 

 

$

45,914

 

 

$

34,768

 

Minimally invasive ablation

 

9,702

 

 

 

4,755

 

 

 

18,087

 

 

 

11,316

 

Appendage management

 

25,156

 

 

 

13,021

 

 

 

45,743

 

 

 

30,440

 

Total ablation and appendage management

 

59,697

 

 

 

33,326

 

 

 

109,744

 

 

 

76,524

 

Valve tools

 

373

 

 

 

338

 

 

 

635

 

 

 

613

 

Total United States

 

60,070

 

 

 

33,664

 

 

 

110,379

 

 

 

77,137

 

International Revenue:

 

 

 

 

 

 

 

 

 

 

 

Open ablation

 

5,513

 

 

 

3,744

 

 

 

9,930

 

 

 

8,859

 

Minimally invasive ablation

 

1,575

 

 

 

1,109

 

 

 

2,849

 

 

 

2,654

 

Appendage management

 

4,194

 

 

 

2,271

 

 

 

7,452

 

 

 

5,333

 

Total ablation and appendage management

 

11,282

 

 

 

7,124

 

 

 

20,231

 

 

 

16,846

 

Valve tools

 

24

 

 

 

36

 

 

 

41

 

 

 

66

 

Total international

 

11,306

 

 

 

7,160

 

 

 

20,272

 

 

 

16,912

 

Total revenue

 

71,376

 

 

 

40,824

 

 

 

130,651

 

 

 

94,049

 

Cost of revenue

 

17,298

 

 

 

13,170

 

 

 

32,033

 

 

 

27,511

 

Gross profit

 

54,078

 

 

 

27,654

 

 

 

98,618

 

 

 

66,538

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses

 

12,197

 

 

 

10,036

 

 

 

23,414

 

 

 

21,623

 

Selling, general and administrative expenses

 

56,958

 

 

 

24,903

 

 

 

106,166

 

 

 

67,654

 

Total operating expenses

 

69,155

 

 

 

34,939

 

 

 

129,580

 

 

 

89,277

 

Loss from operations

 

(15,077

)

 

 

(7,285

)

 

 

(30,962

)

 

 

(22,739

)

Other expense, net

 

(1,108

)

 

 

(939

)

 

 

(2,109

)

 

 

(1,885

)

Loss before income tax expense

 

(16,185

)

 

 

(8,224

)

 

 

(33,071

)

 

 

(24,624

)

Income tax expense (benefit)

 

66

 

 

 

12

 

 

 

97

 

 

 

20

 

Net loss

$

(16,251

)

 

$

(8,236

)

 

$

(33,168

)

 

$

(24,644

)

Basic and diluted net loss per share

$

(0.36

)

 

$

(0.20

)

 

$

(0.74

)

 

$

(0.61

)

Weighted average shares used in computing net loss per share:

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

45,035

 

 

 

41,649

 

 

 

44,834

 

 

 

40,160

 

 

 

 

 

 

 

 

 

 

 

 

 

                       
           

 

 

 

 

 

 

ATRICURE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

(Unaudited)

 

 

 

 

 

 

 

June 30,

 

December 31,

 

2021

 

2020

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash, cash equivalents, and short-term investments

$

159,865

 

 

$

244,218

 

Accounts receivable, net

 

33,835

 

 

 

23,146

 

Inventories

 

37,608

 

 

 

35,026

 

Prepaid and other current assets

 

4,636

 

 

 

4,347

 

Total current assets

 

235,944

 

 

 

306,737

 

Property and equipment, net

 

30,175

 

 

 

28,290

 

Operating lease right-of-use assets

 

2,683

 

 

 

1,914

 

Long-term investments

 

69,770

 

 

 

14,178

 

Goodwill and intangible assets, net

 

362,015

 

 

 

362,980

 

Other noncurrent assets

 

488

 

 

 

440

 

Total assets

$

701,075

 

 

$

714,539

 

Liabilities and Stockholders' Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable and accrued liabilities

$

48,940

 

 

$

40,720

 

Other current liabilities and current maturities of debt and leases

 

18,493

 

 

 

8,417

 

Total current liabilities

 

67,433

 

 

 

49,137

 

Long-term debt

 

43,669

 

 

 

53,435

 

Finance lease liabilities

 

10,540

 

 

 

10,969

 

Operating lease liabilities

 

1,833

 

 

 

1,180

 

Contingent consideration and other noncurrent liabilities

 

192,517

 

 

 

187,424

 

Total liabilities

 

315,992

 

 

 

302,145

 

Stockholders' equity:

 

 

 

 

 

Common stock

 

46

 

 

 

45

 

Additional paid-in capital

 

748,644

 

 

 

742,389

 

Accumulated other comprehensive (loss) income

 

(87

)

 

 

312

 

Accumulated deficit

 

(363,520

)

 

 

(330,352

)

Total stockholders' equity

 

385,083

 

 

 

412,394

 

Total liabilities and stockholders' equity

$

701,075

 

 

$

714,539

 

 

 

 

 

 

 

           
                       

 

 

 

 

 

 

 

 

 

 

 

 

ATRICURE, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS

(In Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Adjusted Income (Loss) (Adjusted EBITDA)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

Net loss, as reported

$

(16,251

)

 

$

(8,236

)

 

$

(33,168

)

 

$

(24,644

)

Income tax expense

 

66

 

 

 

12

 

 

 

97

 

 

 

20

 

Other expense, net

 

1,108

 

 

 

939

 

 

 

2,109

 

 

 

1,885

 

Depreciation and amortization expense

 

2,658

 

 

 

2,458

 

 

 

4,780

 

 

 

4,902

 

Share-based compensation expense

 

7,141

 

 

 

6,193

 

 

 

13,745

 

 

 

10,577

 

Contingent consideration adjustment

 

2,600

 

 

 

(7,504

)

 

 

5,100

 

 

 

(5,046

)

Acquisition costs

 

 

 

 

39

 

 

 

 

 

 

138

 

Non-GAAP adjusted loss (adjusted EBITDA)

$

(2,678

)

 

$

(6,099

)

 

$

(7,337

)

 

$

(12,168

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Adjusted Loss Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

Net loss, as reported

$

(16,251

)

 

$

(8,236

)

 

$

(33,168

)

 

$

(24,644

)

Contingent consideration adjustment

 

2,600

 

 

 

(7,504

)

 

 

5,100

 

 

 

(5,046

)

Net loss excluding contingent consideration adjustment

$

(13,651

)

 

$

(15,740

)

 

$

(28,068

)

 

$

(29,690

)

Basic and diluted adjusted net loss per share

$

(0.30

)

 

$

(0.38

)

 

$

(0.63

)

 

$

(0.74

)

Weighted average shares used in computing adjusted net loss per share

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

45,035

 

 

 

41,649

 

 

 

44,834

 

 

 

40,160

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

Angie Wirick
AtriCure, Inc.
Chief Financial Officer
(513) 755-5334
awirick@atricure.com

Lynn Pieper Lewis
Gilmartin Group
Investor Relations
(415) 937-5402
lynn@gilmartinir.com

Source: AtriCure, Inc.