AtriCure Reports Third Quarter 2015 Financial Results
-
Revenue of
$31.4 million – up 17.8% as reported, 20.6% constant currency -
U.S. sales of
$24.7 million – up 23.0% -
International sales of
$6.7 million – up 2.1% as reported, 13.2% constant currency
“We are pleased with our performance in the third quarter and excited
about our prospects for sustained growth,” said
Third Quarter 2015 Financial Results
Revenue for the third quarter of 2015 was
Gross profit for the third quarter of 2015 was
Operating expenses for the third quarter of 2015 increased 45.2%, or
Loss from operations for the third quarter of 2015 was
2015 Outlook
Management projects that 2015 revenue will be in the range of
Management projects adjusted EBITDA, a non-GAAP measure, to be a loss in
the range of
2016 Outlook
For 2016,
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 accounting principles generally accepted in
ATRICURE, INC. AND SUBSIDIARIES | |||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
(In Thousands, Except Per Share Amounts) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Domestic Revenue: | |||||||||||||||||
Open-heart ablation | $ | 13,041 | $ | 11,265 | $ | 39,043 | $ | 32,498 | |||||||||
Minimally invasive ablation | 5,011 | 3,933 | 14,415 | 11,774 | |||||||||||||
AtriClip | 5,927 | 4,285 | 17,716 | 11,856 | |||||||||||||
Total ablation and AtriClip | 23,979 | 19,483 | 71,174 | 56,128 | |||||||||||||
Valve tools | 686 | 577 | 2,158 | 1,978 | |||||||||||||
Total domestic | 24,665 | 20,060 | 73,332 | 58,106 | |||||||||||||
International Revenue: | |||||||||||||||||
Open-heart ablation | 4,092 | 4,150 | 12,396 | 12,175 | |||||||||||||
Minimally invasive ablation | 1,945 | 1,804 | 5,771 | 5,773 | |||||||||||||
AtriClip | 598 | 543 | 2,058 | 1,390 | |||||||||||||
Total ablation and AtriClip | 6,635 | 6,497 | 20,225 | 19,338 | |||||||||||||
Valve tools | 123 | 121 | 335 | 595 | |||||||||||||
Total international | 6,758 | 6,618 | 20,560 | 19,933 | |||||||||||||
Total revenue | 31,423 | 26,678 | 93,892 | 78,039 | |||||||||||||
Cost of revenue | 8,945 | 7,786 | 26,562 | 22,709 | |||||||||||||
Gross profit | 22,478 | 18,892 | 67,330 | 55,330 | |||||||||||||
Operating expenses: | |||||||||||||||||
Research and development expenses | 6,504 | 5,033 | 17,975 | 13,603 | |||||||||||||
Selling, general and administrative expenses | 22,101 | 14,662 | 65,445 | 53,308 | |||||||||||||
Total operating expenses | 28,605 | 19,695 | 83,420 | 66,911 | |||||||||||||
Loss from operations | (6,127 | ) | (803 | ) | (16,090 | ) | (11,581 | ) | |||||||||
Other (expense) income, net | (8 | ) | 341 | (188 | ) | 750 | |||||||||||
Loss before income tax expense | (6,135 | ) | (462 | ) | (16,278 | ) | (10,831 | ) | |||||||||
Income tax expense | 6 | 4 | 20 | 36 | |||||||||||||
Net loss | $ | (6,141 | ) | $ | (466 | ) | $ | (16,298 | ) | $ | (10,867 | ) | |||||
Basic and diluted net loss per share | $ | (0.22 | ) | $ | (0.02 | ) | $ | (0.60 | ) | $ | (0.42 | ) | |||||
Weighted average shares used in computing net loss per share: | |||||||||||||||||
Basic and diluted | 27,462 | 26,915 | 27,190 | 26,185 | |||||||||||||
ATRICURE, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In Thousands, Except Per Share Amounts) | ||||||||
(Unaudited) | ||||||||
September 30, | December 31, | |||||||
2015 | 2014 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash, cash equivalents, and short-term investments | $ | 48,426 | $ | 59,649 | ||||
Accounts receivable, net | 16,643 | 17,558 | ||||||
Inventories | 16,567 | 14,257 | ||||||
Other current assets | 2,477 | 2,044 | ||||||
Total current assets | 84,113 | 93,508 | ||||||
Property and equipment, net | 27,455 | 11,552 | ||||||
Long-term investments | 10,381 | 8,894 | ||||||
Goodwill and intangible assets, net | 43,356 | 44,264 | ||||||
Other noncurrent assets | 337 | 186 | ||||||
Total assets | $ | 165,642 | $ | 158,404 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 25,494 | $ | 21,662 | ||||
Other current liabilities and current maturities of capital leases | 13,571 | 3,981 | ||||||
Total current liabilities | 39,065 | 25,643 | ||||||
Capital leases | 68 | 74 | ||||||
Other noncurrent liabilities | 1,025 | 149 | ||||||
Total liabilities | 40,158 | 25,866 | ||||||
Stockholders' equity: | ||||||||
Common stock | 28 | 28 | ||||||
Additional paid-in capital | 280,668 | 271,282 | ||||||
Accumulated other comprehensive loss | (490 | ) | (348 | ) | ||||
Accumulated deficit | (154,722 | ) | (138,424 | ) | ||||
Total stockholders' equity | 125,484 | 132,538 | ||||||
Total liabilities and stockholders' equity | $ | 165,642 | $ | 158,404 | ||||
ATRICURE, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(In Thousands) | ||||||||
(Unaudited) | ||||||||
Nine Months Ended September 30, | ||||||||
2015 | 2014 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (16,298 | ) | $ | (10,867 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Share-based compensation expense | 6,533 | 5,704 | ||||||
Depreciation and amortization of intangible assets | 4,212 | 3,471 | ||||||
Amortization of deferred financing costs | 46 | 99 | ||||||
Loss on disposal of property and equipment | 83 | 11 | ||||||
Realized loss from foreign exchange on intercompany transactions | 333 | — | ||||||
Amortization/accretion on investments | 472 | 322 | ||||||
Change in allowance for doubtful accounts | 55 | 73 | ||||||
Change in value of contingent consideration | — | (8,032 | ) | |||||
Other | — | 95 | ||||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable | 571 | (1,785 | ) | |||||
Inventories | (2,461 | ) | (4,555 | ) | ||||
Other current assets | (449 | ) | 833 | |||||
Accounts payable and accrued liabilities | 2,738 | (4,143 | ) | |||||
Other non-current assets and liabilities | 403 | (813 | ) | |||||
Net cash used in operating activities | (3,762 | ) | (19,587 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of available-for-sale securities | (19,525 | ) | (31,412 | ) | ||||
Sales and maturities of available-for-sale securities | 29,174 | 14,614 | ||||||
Purchases of property and equipment | (8,287 | ) | (4,389 | ) | ||||
Increases in property under build-to-suit obligation | (9,128 | ) | — | |||||
Net cash used in investing activities | (7,766 | ) | (21,187 | ) | ||||
Cash flows from financing activities: | ||||||||
Net proceeds from sale of stock | — | 65,830 | ||||||
Payments on debt and capital leases | (36 | ) | (6,362 | ) | ||||
Increases in build-to-suit obligation | 9,128 | — | ||||||
Proceeds from tax incentive loan | 340 | |||||||
Payment of debt fees and premium on retirement of debt | (62 | ) | (181 | ) | ||||
Proceeds from stock option exercises | 2,421 | 1,657 | ||||||
Shares repurchased for payment of taxes on stock awards | (650 | ) | (198 | ) | ||||
Proceeds from issuance of common stock under employee stock purchase plan |
906 | 708 | ||||||
Net cash provided by financing activities | 12,047 | 61,454 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (189 | ) | (46 | ) | ||||
Net increase in cash and cash equivalents | 330 | 20,634 | ||||||
Cash and cash equivalents - beginning of period | 28,384 | 14,892 | ||||||
Cash and cash equivalents - end of period | $ | 28,714 | $ | 35,526 | ||||
Supplemental cash flow information: | ||||||||
Cash paid for interest | $ | 4 | $ | 113 | ||||
Cash paid for income taxes | 20 | 146 | ||||||
Noncash investing and financing activities: | ||||||||
Accrued purchases of property and equipment | 2,442 | 2,572 | ||||||
Assets acquired through capital lease | 50 | 8 | ||||||
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 September 30, | Nine Months Ended September 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Net loss, as reported | $ | (6,141 | ) | $ | (466 | ) | $ | (16,298 | ) | $ | (10,867 | ) | |||||
Income tax expense | 6 |
4 |
20 | 36 | |||||||||||||
Other expense (income), net (a) | 8 | (341 | ) | 188 | (750 | ) | |||||||||||
Depreciation and amortization expense | 1,519 | 1,254 | 4,212 | 3,471 | |||||||||||||
Share-based compensation expense | 2,392 | 1,716 | 6,533 | 5,704 | |||||||||||||
Change in fair value of contingent consideration | — | (5,370 | ) | — | (8,032 | ) | |||||||||||
Non-GAAP adjusted loss (adjusted EBITDA) | $ | (2,216 | ) | $ |
(3,203 |
) | $ | (5,345 | ) | $ | (10,438 | ) | |||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(a) Other includes: | |||||||||||||||||
Net interest income (expense) | $ | 40 | $ | 3 | $ | 91 | $ | (226 | ) | ||||||||
Grant income | — | 231 | 35 | 731 | |||||||||||||
Gain (loss) due to exchange rate fluctuation | (48 | ) | (51 | ) | (257 | ) | (30 | ) | |||||||||
Non-employee stock option income (expense) | — | 158 | (57 | ) | 275 | ||||||||||||
Other (expense) income, net | $ | (8 | ) | $ | 341 | $ | (188 | ) | $ | 750 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20151027006839/en/
Source:
AtriCure, Inc.
Andy Wade, 513-755-4564
Senior Vice
President and Chief Financial Officer
awade@atricure.com
or
Investor
Relations Contact
Westwicke Partners
Lynn Pieper,
415-202-5678
lynn.pieper@westwicke.com