AtriCure Reports Fourth Quarter 2020 and Full Year 2020 Financial Results
“Despite challenges posed in 2020 as a result of the pandemic, we made meaningful progress across our business with our strategic initiatives,” said
Fourth Quarter 2020 Financial Results
Revenue for the fourth quarter of 2020 was
Gross profit for the fourth quarter of 2020 was
Loss from operations for the fourth quarter of 2020 was
Adjusted EBITDA was positive
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.
2020 Financial Results
Revenue for 2020 was
Gross profit for 2020 was
Loss from operations for 2020 was
2021 Financial Guidance
Full year 2021 revenue is projected to be approximately
First quarter 2021 revenue is expected to be in the range of
Conference Call
About
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
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. Due to the nonrecurring nature of legal settlement costs, the Company has modified the calculation of adjusted EBITDA to exclude legal settlement costs. Legal settlement costs reflect the Company’s estimated settlement value of a claim by former nContact stockholders. The Company believes it is now appropriate to modify the calculation of adjusted EBITDA to exclude legal settlement costs because the Company has concluded that settlement costs are generally nonrecurring and are not reflective of the operational results of the Company’s core business, and the Company believes this approach is more comparable to peer company reporting. Management believes in order to properly understand the 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, and previously used adjusted EBITDA as a performance metric in the annual incentive plan. 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. Management believes it is now appropriate to modify the calculation of adjusted loss per share to exclude legal settlement costs, as such amounts can be significant and vary in value and are not reflective of our core business. 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
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(In Thousands, Except Per Share Amounts) |
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(Unaudited) |
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Three Months Ended |
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Twelve Months Ended |
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2020 |
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2019 |
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2020 |
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2019 |
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United States Revenue: |
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Open ablation |
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$ |
20,720 |
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$ |
20,894 |
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$ |
75,399 |
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$ |
80,205 |
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Minimally invasive ablation |
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7,352 |
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8,982 |
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25,647 |
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34,842 |
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Appendage management |
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19,111 |
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19,091 |
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66,981 |
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68,166 |
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Total ablation and appendage management |
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47,183 |
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48,967 |
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168,027 |
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183,213 |
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Valve tools |
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223 |
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570 |
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1,217 |
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2,616 |
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Total |
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47,406 |
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49,537 |
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169,244 |
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185,829 |
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International Revenue: |
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Open ablation |
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4,889 |
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6,003 |
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18,655 |
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24,945 |
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Minimally invasive ablation |
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1,825 |
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2,227 |
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6,171 |
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8,349 |
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Appendage management |
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3,575 |
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3,513 |
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12,353 |
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11,476 |
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Total ablation and appendage management |
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10,289 |
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11,743 |
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37,179 |
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44,770 |
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Valve tools |
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30 |
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41 |
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108 |
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208 |
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Total international |
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10,319 |
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11,784 |
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37,287 |
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44,978 |
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Total revenue |
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57,725 |
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61,321 |
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206,531 |
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230,807 |
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Cost of revenue |
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15,288 |
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16,547 |
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57,222 |
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60,472 |
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Gross profit |
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42,437 |
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44,774 |
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149,309 |
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170,335 |
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Operating expenses: |
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Research and development expenses |
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10,871 |
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13,096 |
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43,070 |
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41,230 |
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Selling, general and administrative expenses |
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49,069 |
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47,004 |
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150,472 |
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162,227 |
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Total operating expenses |
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59,940 |
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60,100 |
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193,542 |
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203,457 |
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Loss from operations |
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(17,503 |
) |
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(15,326 |
) |
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(44,233 |
) |
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(33,122 |
) |
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Other expense, net |
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(961 |
) |
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(722 |
) |
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(3,808 |
) |
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(1,873 |
) |
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Loss before income tax expense |
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(18,464 |
) |
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(16,048 |
) |
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(48,041 |
) |
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(34,995 |
) |
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Income tax expense |
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98 |
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48 |
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114 |
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199 |
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Net loss |
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$ |
(18,562 |
) |
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$ |
(16,096 |
) |
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$ |
(48,155 |
) |
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$ |
(35,194 |
) |
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Basic and diluted net loss per share |
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$ |
(0.42 |
) |
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$ |
(0.42 |
) |
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$ |
(1.14 |
) |
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$ |
(0.94 |
) |
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Weighted average shares used in computing net loss per share: |
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Basic and diluted |
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44,124 |
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38,190 |
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42,125 |
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37,589 |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(In Thousands) |
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(Unaudited) |
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2020 |
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2019 |
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Assets |
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Current assets: |
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Cash, cash equivalents, and short-term investments |
$ |
244,218 |
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$ |
81,801 |
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Accounts receivable, net |
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23,146 |
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28,046 |
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Inventories |
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35,026 |
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29,414 |
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Prepaid and other current assets |
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4,347 |
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3,899 |
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Total current assets |
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306,737 |
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143,160 |
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Property and equipment, net |
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28,290 |
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32,646 |
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Operating lease right-of-use assets |
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1,914 |
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4,032 |
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Long-term investments |
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14,178 |
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12,675 |
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362,980 |
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364,662 |
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Other noncurrent assets |
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440 |
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705 |
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Total assets |
$ |
714,539 |
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$ |
557,880 |
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Liabilities and Stockholders' Equity |
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Current liabilities: |
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Accounts payable and accrued liabilities |
$ |
40,720 |
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$ |
47,698 |
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Other current liabilities and current maturities of debt and leases |
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8,417 |
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2,218 |
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Total current liabilities |
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49,137 |
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49,916 |
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Long-term debt |
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53,435 |
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59,634 |
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Finance lease liabilities |
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10,969 |
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11,774 |
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Operating lease liabilities |
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1,180 |
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2,796 |
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Contingent consideration and other noncurrent liabilities |
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187,424 |
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186,417 |
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Total liabilities |
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302,145 |
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310,537 |
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Stockholders' equity: |
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Common stock |
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45 |
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40 |
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Additional paid-in capital |
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742,389 |
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529,658 |
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Accumulated other comprehensive income (loss) |
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312 |
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(158 |
) |
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Accumulated deficit |
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(330,352 |
) |
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(282,197 |
) |
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Total stockholders' equity |
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412,394 |
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|
247,343 |
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Total liabilities and stockholders' equity |
$ |
714,539 |
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$ |
557,880 |
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RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS |
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(In Thousands) |
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(Unaudited) |
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Reconciliation of Non-GAAP Adjusted Income (Loss) (Adjusted EBITDA) |
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Three Months Ended |
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Twelve Months Ended |
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2020 |
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2019 |
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2020 |
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2019 |
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Net loss, as reported |
$ |
(18,562 |
) |
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$ |
(16,096 |
) |
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$ |
(48,155 |
) |
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$ |
(35,194 |
) |
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Income tax expense |
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98 |
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|
48 |
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|
114 |
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|
199 |
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Other expense, net |
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961 |
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|
722 |
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|
3,808 |
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|
1,873 |
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Depreciation and amortization expense |
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2,167 |
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|
2,383 |
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|
9,548 |
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|
9,366 |
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Share-based compensation expense |
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6,516 |
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|
5,161 |
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22,642 |
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|
17,977 |
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Contingent consideration adjustment |
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4,497 |
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2,018 |
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(357 |
) |
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(4,916 |
) |
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Acquisition costs |
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— |
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|
333 |
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138 |
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|
3,978 |
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Legal settlement |
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6,000 |
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— |
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|
6,000 |
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|
— |
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Non-GAAP adjusted income (loss) (adjusted EBITDA) |
$ |
1,677 |
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|
$ |
(5,431 |
) |
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$ |
(6,262 |
) |
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$ |
(6,717 |
) |
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Reconciliation of Non-GAAP Adjusted Loss Per Share |
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Three Months Ended |
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Twelve Months Ended |
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2020 |
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2019 |
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2020 |
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2019 |
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Net loss, as reported |
$ |
(18,562 |
) |
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$ |
(16,096 |
) |
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$ |
(48,155 |
) |
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$ |
(35,194 |
) |
|
Contingent consideration adjustment |
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4,497 |
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2,018 |
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(357 |
) |
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(4,916 |
) |
|
Legal settlement |
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6,000 |
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|
— |
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6,000 |
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— |
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Net loss excluding contingent consideration adjustment and legal settlement |
$ |
(8,065 |
) |
|
$ |
(14,078 |
) |
|
$ |
(42,512 |
) |
|
$ |
(40,110 |
) |
|
Basic and diluted adjusted net loss per share |
$ |
(0.18 |
) |
|
$ |
(0.37 |
) |
|
$ |
(1.01 |
) |
|
$ |
(1.07 |
) |
|
Weighted average shares used in computing adjusted net loss per share |
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Basic and diluted |
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44,124 |
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|
38,190 |
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42,125 |
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37,589 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20210223005930/en/
Chief Financial Officer
(513) 755-5334
awirick@atricure.com
Investor Relations
(415) 937-5402
lynn@gilmartinir.com
Source:
