AtriCure Reports Second Quarter 2020 Financial Results
- Worldwide revenue of
$40.8 million – a decrease of 30.7% year over year U.S. revenue of$33.7 million – a decrease of 28.6% year over year- International revenue of
$7.1 million – a decrease of 39.0% year over year
“Amidst tremendous uncertainty in this challenging environment, our team at
Second Quarter 2020 Financial Results
Revenue for the second quarter of 2020 was
Gross profit for the second quarter of 2020 was
Loss from operations for the second quarter of 2020 was
Adjusted EBITDA was a loss of
2020 Financial Guidance
As previously reported,
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. 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. Actual results could differ materially.
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 and is 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 the Company’s 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, and change in fair value of contingent consideration liabilities. 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 can be found in the table captioned “Reconciliation of Non-GAAP Adjusted (Loss) Income (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 to expenses related to the adjustment in value of contingent consideration liabilities. Management believes this metric provides a better measure of comparability of results between periods, as such adjustments 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 can be found in the table captioned “Reconciliation of Non-GAAP Adjusted Loss Per Share” later in this release.
The non-GAAP financial measures used by
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
|
(In Thousands, Except Per Share Amounts) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
United States Revenue: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Open ablation |
$ |
15,550 |
|
|
$ |
20,561 |
|
|
$ |
34,768 |
|
|
$ |
39,557 |
|
|
Minimally invasive ablation |
|
4,755 |
|
|
|
9,092 |
|
|
|
11,316 |
|
|
|
16,854 |
|
|
Appendage management |
|
13,021 |
|
|
|
16,498 |
|
|
|
30,440 |
|
|
|
32,168 |
|
|
Total ablation and appendage management |
|
33,326 |
|
|
|
46,151 |
|
|
|
76,524 |
|
|
|
88,579 |
|
|
Valve tools |
|
338 |
|
|
|
1,014 |
|
|
|
613 |
|
|
|
1,590 |
|
|
Total |
|
33,664 |
|
|
|
47,165 |
|
|
|
77,137 |
|
|
|
90,169 |
|
|
International Revenue: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Open ablation |
|
3,744 |
|
|
|
6,792 |
|
|
|
8,859 |
|
|
|
13,092 |
|
|
Minimally invasive ablation |
|
1,109 |
|
|
|
1,935 |
|
|
|
2,654 |
|
|
|
4,064 |
|
|
Appendage management |
|
2,271 |
|
|
|
2,977 |
|
|
|
5,333 |
|
|
|
5,431 |
|
|
Total ablation and appendage management |
|
7,124 |
|
|
|
11,704 |
|
|
|
16,846 |
|
|
|
22,587 |
|
|
Valve tools |
|
36 |
|
|
|
37 |
|
|
|
66 |
|
|
|
116 |
|
|
Total international |
|
7,160 |
|
|
|
11,741 |
|
|
|
16,912 |
|
|
|
22,703 |
|
|
Total revenue |
|
40,824 |
|
|
|
58,906 |
|
|
|
94,049 |
|
|
|
112,872 |
|
|
Cost of revenue |
|
13,170 |
|
|
|
15,013 |
|
|
|
27,511 |
|
|
|
29,108 |
|
|
Gross profit |
|
27,654 |
|
|
|
43,893 |
|
|
|
66,538 |
|
|
|
83,764 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Research and development expenses |
|
10,036 |
|
|
|
9,804 |
|
|
|
21,623 |
|
|
|
17,980 |
|
|
Selling, general and administrative expenses |
|
24,903 |
|
|
|
37,928 |
|
|
|
67,654 |
|
|
|
74,943 |
|
|
Total operating expenses |
|
34,939 |
|
|
|
47,732 |
|
|
|
89,277 |
|
|
|
92,923 |
|
|
Loss from operations |
|
(7,285 |
) |
|
|
(3,839 |
) |
|
|
(22,739 |
) |
|
|
(9,159 |
) |
|
Other expense, net |
|
(939 |
) |
|
|
(252 |
) |
|
|
(1,885 |
) |
|
|
(501 |
) |
|
Loss before income tax expense |
|
(8,224 |
) |
|
|
(4,091 |
) |
|
|
(24,624 |
) |
|
|
(9,660 |
) |
|
Income tax expense |
|
12 |
|
|
|
10 |
|
|
|
20 |
|
|
|
76 |
|
|
Net loss |
$ |
(8,236 |
) |
|
$ |
(4,101 |
) |
|
$ |
(24,644 |
) |
|
$ |
(9,736 |
) |
|
Basic and diluted net loss per share |
$ |
(0.20 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.61 |
) |
|
$ |
(0.26 |
) |
|
Weighted average shares used in computing net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic and diluted |
|
41,649 |
|
|
|
37,334 |
|
|
|
40,160 |
|
|
|
37,156 |
|
|
|
|
|
|
|
|
||
|
|
|||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
|
(In Thousands) |
|||||||
|
(Unaudited) |
|||||||
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
|
|
2020 |
|
2019 |
||||
|
Assets |
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
||
|
Cash, cash equivalents, and short-term investments |
$ |
232,498 |
|
|
$ |
81,801 |
|
|
Accounts receivable, net |
|
22,892 |
|
|
|
28,046 |
|
|
Inventories |
|
32,809 |
|
|
|
29,414 |
|
|
Prepaid and other current assets |
|
3,835 |
|
|
|
3,899 |
|
|
Total current assets |
|
292,034 |
|
|
|
143,160 |
|
|
Property and equipment, net |
|
30,236 |
|
|
|
32,646 |
|
|
Operating lease right-of-use assets |
|
2,573 |
|
|
|
4,032 |
|
|
Long-term investments |
|
15,339 |
|
|
|
12,675 |
|
|
|
|
363,685 |
|
|
|
364,662 |
|
|
Other noncurrent assets |
|
366 |
|
|
|
705 |
|
|
Total assets |
$ |
704,233 |
|
|
$ |
557,880 |
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
||
|
Accounts payable and accrued liabilities |
$ |
30,351 |
|
|
$ |
47,698 |
|
|
Other current liabilities and current maturities of debt and leases |
|
7,701 |
|
|
|
2,218 |
|
|
Total current liabilities |
|
38,052 |
|
|
|
49,916 |
|
|
Long-term debt |
|
54,154 |
|
|
|
59,634 |
|
|
Finance lease liabilities |
|
11,377 |
|
|
|
11,774 |
|
|
Operating lease liabilities |
|
1,581 |
|
|
|
2,796 |
|
|
Contingent consideration and other noncurrent liabilities |
|
182,207 |
|
|
|
186,417 |
|
|
Total liabilities |
|
287,371 |
|
|
|
310,537 |
|
|
Stockholders' equity: |
|
|
|
|
|
||
|
Common stock |
|
45 |
|
|
|
40 |
|
|
Additional paid-in capital |
|
723,754 |
|
|
|
529,658 |
|
|
Accumulated other comprehensive loss |
|
(96 |
) |
|
|
(158 |
) |
|
Accumulated deficit |
|
(306,841 |
) |
|
|
(282,197 |
) |
|
Total stockholders' equity |
|
416,862 |
|
|
|
247,343 |
|
|
Total liabilities and stockholders' equity |
$ |
704,233 |
|
|
$ |
557,880 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|||||||||||||||
|
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS |
|||||||||||||||
|
(In Thousands) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Reconciliation of Non-GAAP Adjusted (Loss) Income (Adjusted EBITDA) |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
Net loss, as reported |
$ |
(8,236 |
) |
|
$ |
(4,101 |
) |
|
$ |
(24,644 |
) |
|
$ |
(9,736 |
) |
|
Income tax expense |
|
12 |
|
|
|
10 |
|
|
|
20 |
|
|
|
76 |
|
|
Other expense, net |
|
939 |
|
|
|
252 |
|
|
|
1,885 |
|
|
|
501 |
|
|
Depreciation and amortization expense |
|
2,458 |
|
|
|
2,362 |
|
|
|
4,902 |
|
|
|
4,590 |
|
|
Share-based compensation expense |
|
6,193 |
|
|
|
4,375 |
|
|
|
10,577 |
|
|
|
8,529 |
|
|
Contingent consideration adjustment |
|
(7,504 |
) |
|
|
(2,205 |
) |
|
|
(5,046 |
) |
|
|
(3,872 |
) |
|
Acquisition costs |
|
39 |
|
|
|
713 |
|
|
|
138 |
|
|
|
827 |
|
|
Non-GAAP adjusted (loss) income (adjusted EBITDA) |
$ |
(6,099 |
) |
|
$ |
1,406 |
|
|
$ |
(12,168 |
) |
|
$ |
915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Reconciliation of Non-GAAP Adjusted Loss Per Share |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
Net loss, as reported |
$ |
(8,236 |
) |
|
$ |
(4,101 |
) |
|
$ |
(24,644 |
) |
|
$ |
(9,736 |
) |
|
Contingent consideration adjustment |
|
(7,504 |
) |
|
|
(2,205 |
) |
|
|
(5,046 |
) |
|
|
(3,872 |
) |
|
Net loss excluding contingent consideration adjustment |
$ |
(15,740 |
) |
|
$ |
(6,306 |
) |
|
$ |
(29,690 |
) |
|
$ |
(13,608 |
) |
|
Basic and diluted adjusted net loss per share |
$ |
(0.38 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.74 |
) |
|
$ |
(0.37 |
) |
|
Weighted average shares used in computing adjusted net loss per share |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic and diluted |
|
41,649 |
|
|
|
37,334 |
|
|
|
40,160 |
|
|
|
37,156 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20200728005905/en/
Chief Financial Officer
(513) 755-4564
awade@atricure.com
Investor Relations
(415) 937-5402
lynn@gilmartinir.com
Source:
