-
Revenue of $35.9 million – up 20.3% as reported, 20.4% constant
currency
-
U.S. sales of $28.3 million – up 23.3%
-
International sales of $7.7 million – up 10.1% as reported, 10.9%
constant currency
MASON, Ohio--(BUSINESS WIRE)--Apr. 28, 2016--
AtriCure, Inc. (Nasdaq: ATRC), a leading innovator in treatments for
atrial fibrillation (Afib) and left atrial appendage management, today
announced first quarter 2016 financial results.
“We are pleased to report first quarter results which reflect solid
operational and commercial execution. Performance in the quarter was
again marked by continued growth from U.S. customers, and we are
reiterating our guidance of 25% top line growth for 2016,” said Mike
Carrel, President and Chief Executive Officer of AtriCure. “We are also
pleased to have strengthened our balance sheet through the term loan
with Silicon Valley Bank which, coupled with initiatives underway,
strengthen our confidence in our ability to reach profitability in 2018.”
First Quarter 2016 Financial Results
Revenue for the first quarter of 2016 was $35.9 million, an increase of
$6.1 million or 20.3% (20.4% on a constant currency basis), compared to
first quarter 2015 revenue. Domestic revenue increased 23.3% to $28.3
million, driven by strong sales of ablation-related open-heart products,
ablation-related minimally invasive products, and AtriClip products.
International revenue was $7.7 million, an increase of $0.7 million or
10.1% (10.9% on a constant currency basis). International revenue growth
was driven primarily by increases in product sales in Japan, China, and
France, across all applicable product lines.
Gross profit for the first quarter of 2016 was $25.9 million compared to
$21.7 million for the first quarter of 2015. Gross margin for the first
quarter of 2016 and 2015 was 72.1% and 72.7%, respectively.
Operating expenses for the first quarter of 2016 increased 31.5%, or
$8.5 million, compared to the first quarter of 2015. The increase in
operating expenses was driven primarily by an increase in selling,
clinical, product development, marketing and training expenses, with
most of these areas impacted by the changes in our operating structure
to support our acquisition of nContact in late 2015.
Loss from operations for the first quarter of 2016 was $9.4 million,
compared to $5.1 million for the first quarter of 2015. Adjusted EBITDA,
a non-GAAP measure, was a loss of $4.4 million for the first quarter of
2016, compared to a $2.1 million loss for the first quarter of 2015. Net
loss per share was $0.31 for the first quarter of 2016 and $0.19 for the
first quarter of 2015.
2016 Financial Guidance
Management projects 2016 revenue growth of approximately 25% over full
year 2015 at current exchange rates.
Adjusted EBITDA, a non-GAAP measure, is projected to be a loss in the
range of $14 to $15 million for 2016 as the Company continues to make
strategic investments to drive the long-term growth plan, including
several clinical trials, modest expansion of the U.S. field sales team,
and ongoing product development efforts. In terms of EPS, this EBITDA
range translates into a loss of between $1.12 and $1.22. Significant
improvements in the adjusted EBITDA loss are expected for 2017, turning
to a positive adjusted EBITDA for 2018.
Conference Call
AtriCure will host a conference call at 4:30 p.m. Eastern Time on
Thursday, April 28, 2016 to discuss its first quarter 2016 financial
results. A live webcast of the conference call will be available online
on the Investor page of AtriCure’s corporate website at www.atricure.com.
You may also access this call through an operator by calling (855)
307-9214 for domestic callers and (330) 863-3275 for international
callers using conference ID number 84690180.
The webcast will be available on AtriCure’s website and a telephonic
replay of the call will be available through May 5, 2016. The replay
dial-in numbers are (855) 859-2056 for domestic callers and (404)
537-3406 for international callers. The conference ID number is 84690180.
About AtriCure, Inc.
AtriCure, Inc. is a medical device company providing innovative atrial
fibrillation (Afib) solutions designed to produce superior outcomes that
reduce the economic and social burden of atrial fibrillation. AtriCure’s
Synergy™ Ablation System is the first and only surgical device approved
for the treatment of persistent and longstanding persistent forms of
Afib in patients undergoing certain open concomitant procedures.
AtriCure’s AtriClip left atrial appendage management (LAAM) exclusion
device is the most widely sold device worldwide that is indicated for
the occlusion of the left atrial appendage. The company believes
cardiothoracic surgeons are adopting its ablation and LAAM devices for
the treatment of Afib and reduction of Afib related complications such
as stroke. AtriCure recently acquired nContact, a leader in minimally
invasive technology for epicardial ablation. nContact’s mission is to
transform the underserved arrhythmia population through a
multidisciplinary epicardial-endocardial ablation approach. Afib affects
more than 33 million people worldwide. For more information visit
AtriCure.com or follow us on Twitter @AtriCure.
Forward-Looking Statements
This press release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements that address activities,
events or developments that AtriCure expects, believes or anticipates
will or may occur in the future, such as earnings estimates (including
projections and guidance), other predictions of financial performance,
launches by AtriCure of new products and market acceptance of AtriCure’s
products. Forward-looking statements are based on AtriCure’s experience
and perception of current conditions, trends, expected future
developments and other factors it believes are appropriate under the
circumstances and are subject to numerous risks and uncertainties, many
of which are beyond AtriCure’s control. These risks and uncertainties
include the rate and degree of market acceptance of AtriCure’s products,
AtriCure’s ability to develop and market new and enhanced products,
AtriCure’s ability to retain and attract key employees, the timing of
and ability to obtain and maintain regulatory clearances and approvals
for its products, the timing of and ability to obtain reimbursement of
procedures utilizing AtriCure’s products, AtriCure’s ability to continue
to be in compliance with applicable U.S. federal and state and foreign
government laws and regulations, AtriCure’s ability to consummate
acquisitions or, if consummated, to successfully integrate acquired
businesses into AtriCure’s operations, AtriCure’s ability to recognize
the benefits of acquisitions, including potential synergies and cost
savings, failure of an acquisition or acquired company to achieve its
plans and objectives generally, risk that proposed or consummated
acquisitions may disrupt operations or pose difficulties in employee
retention or otherwise affect financial or operating results, AtriCure’s
ability to raise the capital that may be required to accomplish the
foregoing, competition from existing and new products and procedures,
including the development of drug or catheter-based technologies, or
AtriCure’s ability to effectively react to other risks and uncertainties
described from time to time in AtriCure’s SEC filings, such as
fluctuation of quarterly financial results, fluctuations in exchange
rates for future sales denominated in foreign currency, which represent
a majority of AtriCure’s sales outside of the United States, reliance on
third party manufacturers and suppliers, litigation or other
proceedings, government regulation and stock price volatility. AtriCure
does not guarantee any forward-looking statement, and actual results may
differ materially from those projected. AtriCure undertakes no
obligation to publicly update any forward-looking statement, whether as
a result of new information, future events or otherwise. A further list
and description of risks, uncertainties and other matters can be found
in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
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 uses certain non-GAAP
financial measures in this release as supplemental financial metrics.
Non-GAAP financial measures provide an indication of performance
excluding certain items. Management believes that 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 operations and management believes that the excluded items
are typically not reflective of our ongoing core business operations.
Further, management uses results of operations before these excluded
items as a basis for its strategic planning. The non-GAAP financial
measures used by AtriCure may not be the same or calculated the same as
those used by other companies. Reconciliations of the non-GAAP financial
measures used in this release to the most comparable GAAP measures for
the respective periods can be found in tables later in this release.
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.
|
|
|
|
|
|
|
|
|
ATRICURE, INC. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In Thousands, Except Per Share Amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2016
|
|
2015
|
|
Domestic Revenue:
|
|
|
|
|
|
|
|
Open-heart ablation
|
|
$
|
13,968
|
|
|
$
|
12,354
|
|
|
Minimally invasive ablation
|
|
|
6,725
|
|
|
|
4,347
|
|
|
AtriClip
|
|
|
6,848
|
|
|
|
5,503
|
|
|
Total ablation and AtriClip
|
|
|
27,541
|
|
|
|
22,204
|
|
|
Valve tools
|
|
|
731
|
|
|
|
719
|
|
|
Total domestic
|
|
|
28,272
|
|
|
|
22,923
|
|
|
International Revenue:
|
|
|
|
|
|
|
|
Open-heart ablation
|
|
|
4,472
|
|
|
|
4,216
|
|
|
Minimally invasive ablation
|
|
|
2,164
|
|
|
|
1,968
|
|
|
AtriClip
|
|
|
865
|
|
|
|
671
|
|
|
Total ablation and AtriClip
|
|
|
7,501
|
|
|
|
6,855
|
|
|
Valve tools
|
|
|
167
|
|
|
|
108
|
|
|
Total international
|
|
|
7,668
|
|
|
|
6,963
|
|
|
Total revenue
|
|
|
35,940
|
|
|
|
29,886
|
|
|
Cost of revenue
|
|
|
10,026
|
|
|
|
8,151
|
|
|
Gross profit
|
|
|
25,914
|
|
|
|
21,735
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Research and development expenses
|
|
|
8,563
|
|
|
|
5,609
|
|
|
Selling, general and administrative expenses
|
|
|
26,770
|
|
|
|
21,270
|
|
|
Total operating expenses
|
|
|
35,333
|
|
|
|
26,879
|
|
|
Loss from operations
|
|
|
(9,419
|
)
|
|
|
(5,144
|
)
|
|
Other expense, net
|
|
|
(300
|
)
|
|
|
(116
|
)
|
|
Loss before income tax expense
|
|
|
(9,719
|
)
|
|
|
(5,260
|
)
|
|
Income tax expense (benefit)
|
|
|
5
|
|
|
|
6
|
|
|
Net loss
|
|
$
|
(9,724
|
)
|
|
$
|
(5,266
|
)
|
|
Basic and diluted net loss per share
|
|
$
|
(0.31
|
)
|
|
$
|
(0.19
|
)
|
|
Weighted average shares used in computing net loss per share:
|
|
|
|
|
|
|
Basic and diluted
|
|
|
31,358
|
|
|
|
27,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATRICURE, INC. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(In Thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
2016
|
|
2015
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash, cash equivalents, and short-term investments
|
|
$
|
23,324
|
|
|
$
|
34,578
|
|
|
Accounts receivable, net
|
|
|
19,446
|
|
|
|
19,409
|
|
|
Inventories
|
|
|
19,015
|
|
|
|
17,659
|
|
|
Other current assets
|
|
|
3,608
|
|
|
|
3,106
|
|
|
Total current assets
|
|
|
65,393
|
|
|
|
74,752
|
|
|
Property and equipment, net
|
|
|
31,155
|
|
|
|
31,279
|
|
|
Long-term investments
|
|
|
6,150
|
|
|
|
7,706
|
|
|
Goodwill and intangible assets, net
|
|
|
158,621
|
|
|
|
159,032
|
|
|
Other noncurrent assets
|
|
|
391
|
|
|
|
323
|
|
|
Total assets
|
|
$
|
261,710
|
|
|
$
|
273,092
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
25,732
|
|
|
$
|
31,138
|
|
|
Other current liabilities and current maturities of capital leases
|
|
|
462
|
|
|
|
450
|
|
|
Total current liabilities
|
|
|
26,194
|
|
|
|
31,588
|
|
|
Capital leases
|
|
|
13,592
|
|
|
|
13,710
|
|
|
Other noncurrent liabilities
|
|
|
40,897
|
|
|
|
41,109
|
|
|
Total liabilities
|
|
|
80,683
|
|
|
|
86,407
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Common stock
|
|
|
33
|
|
|
|
32
|
|
|
Additional paid-in capital
|
|
|
356,638
|
|
|
|
352,900
|
|
|
Accumulated other comprehensive loss
|
|
|
(284
|
)
|
|
|
(611
|
)
|
|
Accumulated deficit
|
|
|
(175,360
|
)
|
|
|
(165,636
|
)
|
|
Total stockholders' equity
|
|
|
181,027
|
|
|
|
186,685
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
261,710
|
|
|
$
|
273,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATRICURE, INC. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In Thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2016
|
|
2015
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(9,724
|
)
|
|
$
|
(5,266
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Share-based compensation expense
|
|
|
2,842
|
|
|
|
1,724
|
|
|
Depreciation and amortization of intangible assets
|
|
|
2,211
|
|
|
|
1,311
|
|
|
Amortization of deferred financing costs
|
|
|
15
|
|
|
|
16
|
|
|
Loss on disposal of property and equipment
|
|
|
141
|
|
|
|
57
|
|
|
Realized (gain) loss from foreign exchange on intercompany
transactions
|
|
|
(5
|
)
|
|
|
251
|
|
|
Amortization/accretion on investments
|
|
|
56
|
|
|
|
184
|
|
|
Change in allowance for doubtful accounts
|
|
|
—
|
|
|
|
100
|
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
30
|
|
|
|
(2,685
|
)
|
|
Inventories
|
|
|
(1,232
|
)
|
|
|
(1,104
|
)
|
|
Other current assets
|
|
|
(439
|
)
|
|
|
(779
|
)
|
|
Accounts payable and accrued liabilities
|
|
|
(4,535
|
)
|
|
|
(2,807
|
)
|
|
Other non-current assets and liabilities
|
|
|
(291
|
)
|
|
|
28
|
|
|
Net cash used in operating activities
|
|
|
(10,931
|
)
|
|
|
(8,970
|
)
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Purchases of available-for-sale securities
|
|
|
—
|
|
|
|
(6,086
|
)
|
|
Sales and maturities of available-for-sale securities
|
|
|
9,800
|
|
|
|
11,899
|
|
|
Purchases of property and equipment
|
|
|
(2,804
|
)
|
|
|
(1,434
|
)
|
|
Increases in property under build-to-suit obligation
|
|
|
—
|
|
|
|
(1,822
|
)
|
|
Net cash provided by investing activities
|
|
|
6,996
|
|
|
|
2,557
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Payments on debt and capital leases
|
|
|
(107
|
)
|
|
|
(14
|
)
|
|
Increases in build-to-suit obligation
|
|
|
—
|
|
|
|
1,822
|
|
|
Proceeds from stock option exercises
|
|
|
1,896
|
|
|
|
516
|
|
|
Shares repurchased for payment of taxes on stock awards
|
|
|
(999
|
)
|
|
|
(503
|
)
|
|
Net cash provided by financing activities
|
|
|
790
|
|
|
|
1,821
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
149
|
|
|
|
(233
|
)
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
(2,996
|
)
|
|
|
(4,825
|
)
|
|
Cash and cash equivalents - beginning of period
|
|
|
23,764
|
|
|
|
28,384
|
|
|
Cash and cash equivalents - end of period
|
|
$
|
20,768
|
|
|
$
|
23,559
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information:
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
$
|
244
|
|
|
$
|
2
|
|
|
Cash paid for income taxes
|
|
|
—
|
|
|
|
—
|
|
|
Noncash investing and financing activities:
|
|
|
|
|
|
|
|
Accrued purchases of property and equipment
|
|
|
243
|
|
|
|
751
|
|
|
Assets acquired through capital lease
|
|
|
—
|
|
|
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATRICURE, INC. AND SUBSIDIARIES
|
|
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS
|
|
(In Thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Adjusted Loss (Adjusted EBITDA)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2016
|
|
2015
|
|
Net loss, as reported
|
|
$
|
(9,724
|
)
|
|
$
|
(5,266
|
)
|
|
Income tax expense
|
|
|
5
|
|
|
|
6
|
|
|
Other expense, net (a)
|
|
|
300
|
|
|
|
116
|
|
|
Depreciation and amortization expense
|
|
|
2,211
|
|
|
|
1,311
|
|
|
Share-based compensation expense
|
|
|
2,842
|
|
|
|
1,724
|
|
|
Non-GAAP adjusted loss (adjusted EBITDA)
|
|
$
|
(4,366
|
)
|
|
$
|
(2,109
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2016
|
|
2015
|
|
(a) Other includes:
|
|
|
|
|
|
|
|
Net interest expense (income)
|
|
$
|
220
|
|
|
$
|
(25
|
)
|
|
Grant income
|
|
|
—
|
|
|
|
(35
|
)
|
|
Loss due to exchange rate fluctuation
|
|
|
80
|
|
|
|
163
|
|
|
Non-employee stock option expense
|
|
|
—
|
|
|
|
13
|
|
|
Other expense, net
|
|
$
|
300
|
|
|
$
|
116
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160428006652/en/
Source: AtriCure, Inc.
AtriCure, Inc.
Andy Wade, 513-755-4564
Senior Vice
President and Chief Financial Officer
awade@atricure.com
or
Investor
Relations Contact
Gilmartin Group
Lynn Pieper, 415-937-5402
lynn@gilmartinir.com
