AtriCure Reports Fourth Quarter and Full Year 2014 Financial Results
-
2014 revenue of
$107.5 million – up 31.2% -
2014 U.S. sales of
$80.2 million – up 28.7% -
2014 International sales of
$27.3 million – up 39.2%; 39.8% constant currency -
Fourth quarter 2014 revenue of
$29.4 million – up 34.4%
“Our fourth quarter and full year 2014 results reflect strong performance, with meaningful progress and momentum as we continue to expand treatment of atrial fibrillation and improve patient lives,” said Mike Carrel, President and Chief Executive Officer of AtriCure.
“Entering 2015, our foundation is strong, and we plan to continue to solidify the future of our market building strategy with thoughtful investments into our growth initiatives - clinical data and validation, education and training, and new products and indications. This gives us great confidence for many exciting years ahead of us, with strong commercial execution and market expansion.”
2014 Financial Results
Revenue for 2014 was
Gross profit for 2014 was
Loss from operations for 2014 was
Fourth Quarter 2014 Financial Results
Revenue for the fourth quarter of 2014 was
Gross profit for the fourth quarter of 2014 was
Operating expenses for the fourth quarter of 2014 increased 22.9%, or
Loss from operations for the fourth quarter of 2014 was
2015 Guidance
Management projects that 2015 revenue will be in the range of
Adjusted EBITDA, a non-GAAP measure, is projected to be a loss in the
range of
Conference Call
The webcast will be available on AtriCure’s website and a telephonic
replay of the call will be available through
About
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
Use of Non-GAAP Financial Measures
To supplement AtriCure’s condensed consolidated financial statements
prepared in accordance with U.S. generally accepted accounting
principles, or GAAP,
ATRICURE, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(In Thousands, Except Per Share Amounts) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Domestic Revenue: | ||||||||||||||||||||
Open-heart ablation | $ | 12,164 | $ | 9,931 | $ | 44,662 | $ | 37,843 | ||||||||||||
Minimally invasive ablation | 4,276 | 3,519 | 16,050 | 13,648 | ||||||||||||||||
AtriClip | 4,819 | 2,936 | 16,675 | 10,820 | ||||||||||||||||
Total ablation and AtriClip | 21,259 | 16,386 | 77,387 | 62,311 | ||||||||||||||||
Valve tools | 838 | - | 2,816 | - | ||||||||||||||||
Total domestic | 22,097 | 16,386 | 80,203 | 62,311 | ||||||||||||||||
International Revenue: | ||||||||||||||||||||
Open-heart ablation | 4,270 | 3,529 | 16,445 | 13,064 | ||||||||||||||||
Minimally invasive ablation | 2,108 | 1,599 | 7,881 | 5,354 | ||||||||||||||||
AtriClip | 768 | 370 | 2,158 | 1,160 | ||||||||||||||||
Total ablation and AtriClip | 7,146 | 5,498 | 26,484 | 19,578 | ||||||||||||||||
Valve tools | 172 | - | 767 | - | ||||||||||||||||
Total international | 7,318 | 5,498 | 27,251 | 19,578 | ||||||||||||||||
Total revenue | 29,415 | 21,884 | 107,454 | 81,889 | ||||||||||||||||
Cost of revenue | 8,995 | 6,215 | 31,704 | 22,326 | ||||||||||||||||
Gross profit | 20,420 | 15,669 | 75,750 | 59,563 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development expenses | 4,997 | 3,648 | 18,600 | 13,440 | ||||||||||||||||
Selling, general and administrative expenses |
20,202 | 16,859 | 73,510 | 57,014 | ||||||||||||||||
Total operating expenses | 25,199 | 20,507 | 92,110 | 70,454 | ||||||||||||||||
Loss from operations | (4,779 | ) | (4,838 | ) | (16,360 | ) | (10,891 | ) | ||||||||||||
Other (expense) income, net | (568 | ) | (138 | ) | 182 | (553 | ) | |||||||||||||
Loss before income tax expense | (5,347 | ) | (4,976 | ) | (16,178 | ) | (11,444 | ) | ||||||||||||
Income tax benefit (expense) | 3 | (4 | ) | (33 | ) | (18 | ) | |||||||||||||
Net loss | $ | (5,344 | ) | $ | (4,980 | ) | $ | (16,211 | ) | $ | (11,462 | ) | ||||||||
Basic and diluted net loss per share | $ | (0.20 | ) | $ | (0.24 | ) | $ | (0.61 | ) | $ | (0.56 | ) | ||||||||
Weighted average shares used in computing net loss per share: |
||||||||||||||||||||
Basic and diluted | 26,935 | 20,785 | 26,374 | 20,431 | ||||||||||||||||
ATRICURE, INC. AND SUBSIDIARIES | ||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(In Thousands, Except Per Share Amounts) | ||||||||||||||
(Unaudited) | ||||||||||||||
December 31, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash, cash equivalents and short-term investments | $ | 59,649 | $ | 26,211 | ||||||||||
Accounts receivable, net | 17,558 | 13,652 | ||||||||||||
Inventories | 14,257 | 10,214 | ||||||||||||
Other current assets | 2,044 | 2,410 | ||||||||||||
Total current assets | 93,508 | 52,487 | ||||||||||||
Property and equipment, net | 11,552 | 5,643 | ||||||||||||
Long-term investments | 8,894 | 7,914 | ||||||||||||
Goodwill and intangible assets, net | 44,264 | 45,685 | ||||||||||||
Other noncurrent assets | 186 | 218 | ||||||||||||
Total assets | $ | 158,404 | $ | 111,947 | ||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable and accrued liabilities | $ | 21,662 | $ | 24,675 | ||||||||||
Other current liabilities and maturities of debt and capital leases |
3,981 | 2,038 | ||||||||||||
Total current liabilities | 25,643 | 26,713 | ||||||||||||
Long-term debt and capital leases | 74 | 4,412 | ||||||||||||
Other noncurrent liabilities | 149 | 8,218 | ||||||||||||
Total liabilities | 25,866 | 39,343 | ||||||||||||
Stockholders' equity: | ||||||||||||||
Common stock | 28 | 23 | ||||||||||||
Additional paid-in capital | 271,282 | 194,933 | ||||||||||||
Accumulated other comprehensive loss | (348 | ) | (139 | ) | ||||||||||
Accumulated deficit | (138,424 | ) | (122,213 | ) | ||||||||||
Total stockholders' equity | 132,538 | 72,604 | ||||||||||||
Total liabilities and stockholders' equity | $ | 158,404 | $ | 111,947 | ||||||||||
ATRICURE, INC. AND SUBSIDIARIES | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(In Thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Twelve Months Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (16,211 | ) | $ | (11,462 | ) | ||||||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||||||
Share-based compensation expense | 7,571 | 3,080 | ||||||||||
Depreciation and amortization of intangible assets | 4,774 | 2,020 | ||||||||||
Amortization of deferred financing costs | 113 | 115 | ||||||||||
Loss (gain) on disposal of equipment | 118 | (6 | ) | |||||||||
Loss from foreign exchange on intercompany transactions |
544 | - | ||||||||||
Amortization/accretion on investments | 500 | 49 | ||||||||||
Change in allowance for doubtful accounts | (34 | ) | (14 | ) | ||||||||
Change in fair value of contingent consideration | (8,032 | ) | - | |||||||||
Other | 95 | - | ||||||||||
Changes in operating assets and liabilities | ||||||||||||
Accounts receivable | (4,168 | ) | (1,248 | ) | ||||||||
Inventories | (4,343 | ) | (2,288 | ) | ||||||||
Other current assets | 307 | (1,257 | ) | |||||||||
Accounts payable and accrued liabilities | (2,791 | ) | 5,559 | |||||||||
Other non-current assets and liabilities |
(43 | ) | 230 | |||||||||
Net cash used in operating activities | (21,600 | ) | (5,222 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of available-for-sale securities | (41,107 | ) | (21,243 | ) | ||||||||
Sales and maturities of available-for-sale securities | 19,614 | 6,200 | ||||||||||
Purchases of property and equipment | (9,207 | ) | (2,864 | ) | ||||||||
Net proceeds from the sale of equipment | 77 | 48 | ||||||||||
Cash acquired through business combination |
- | 3,708 | ||||||||||
Net cash used in investing activities | (30,623 | ) | (14,151 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||
Net proceeds from sale of stock | 65,830 | 26,872 | ||||||||||
Payments on debt and capital leases | (6,382 | ) | (2,055 | ) | ||||||||
Proceeds from construction financing obligation | 3,699 | - | ||||||||||
Payment of debt fees and premium on retirement of debt | (181 | ) | (99 | ) | ||||||||
Proceeds from stock option exercises | 1,916 | 1,718 | ||||||||||
Shares repurchased for payment of taxes on stock awards |
(331 | ) | (398 | ) | ||||||||
Proceeds from issuance of common stock under employee stock purchase plan |
1,320 | 790 | ||||||||||
Net cash provided by financing activities | 65,871 | 26,828 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents |
(156 | ) | (316 | ) | ||||||||
Net increase in cash and cash equivalents | 13,492 | 7,139 | ||||||||||
Cash and cash equivalents - beginning of period |
14,892 | 7,753 | ||||||||||
Cash and cash equivalents - end of period |
$ | 28,384 | $ | 14,892 | ||||||||
Supplemental cash flow information: | ||||||||||||
Cash paid for interest | $ | 115 | $ | 473 | ||||||||
Cash paid for income taxes | 146 | 30 | ||||||||||
Noncash investing and financing activities: | ||||||||||||
Accrued purchases of property and equipment |
547 |
282 | ||||||||||
Assets acquired through capital lease | 47 | 68 | ||||||||||
Capital lease asset early termination | 38 | 24 | ||||||||||
Stock issuance for Estech acquisition | - | 39,720 | ||||||||||
Contingent consideration for acquisition of Estech | - | 8,032 | ||||||||||
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 December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Net loss, as reported | $ | (5,344 | ) | $ | (4,980 | ) | $ | (16,211 | ) | $ | (11,462 | ) | ||||||||
Income tax (income) expense | (3 | ) | 4 | 33 | 18 | |||||||||||||||
Other expense (benefit), net (a) | 568 | 138 | (182 | ) | 553 | |||||||||||||||
Depreciation and amortization expense | 1,303 | 555 | 4,774 | 2,020 | ||||||||||||||||
Share-based compensation expense | 1,867 | 1,008 | 7,571 | 3,080 | ||||||||||||||||
Change in fair value of contingent consideration | - | - | (8,032 | ) | - | |||||||||||||||
Non-GAAP adjusted income (loss) (adjusted EBITDA) | $ | (1,609 | ) | $ | (3,275 | ) | $ | (12,047 | ) | $ | (5,791 | ) | ||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
(a) Other includes: | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Net interest income (expense) | $ | 17 | $ | (130 | ) | $ | (209 | ) | $ | (550 | ) | |||||||||
Grant income | - | - | 731 | - | ||||||||||||||||
(Loss) gain due to exchange rate fluctuation | (493 | ) | 196 | (523 | ) | 269 | ||||||||||||||
Non-employee stock option (expense) income | (92 | ) | (204 | ) | 183 | (272 | ) | |||||||||||||
Other (expense) income, net | $ | (568 | ) | $ | (138 | ) | $ | 182 | $ | (553 | ) | |||||||||
Source:
AtriCure, Inc.
Andy Wade, 513-755-4564
Senior Vice
President and Chief Financial Officer
awade@atricure.com
or
Investor
Relations
Westwicke Partners
Lynn Pieper, 415-202-5678
lynn.pieper@westwicke.com