AtriCure Reports Fourth Quarter and Full Year 2016 Financial Results
-
2016 revenue of
$155.1 million – up 19.5% -
2016 U.S. sales of
$122.4 million – up 19.7% -
2016 International sales of
$32.7 million – up 18.8%
“As we reflect back on 2016, we are pleased to have grown revenue 20%
for the year while exceeding our bottom line expectations and making
meaningful progress in continuing our transformation into the minimally
invasive Afib market, a large underpenetrated and underserved market.
Throughout the year, we hit several strategic milestones and begin 2017
poised to broaden our minimally invasive presence through enrollment in
the CONVERGE clinical trial and the expansion of our AtriClip
franchise,” said
2016 Financial Results
Revenue for 2016 was
Gross profit for 2016 was
Loss from operations for 2016 was
Fourth Quarter 2016 Financial Results
Revenue for the fourth quarter of 2016 was
Gross profit for the fourth quarter of 2016 was
Operating expenses for the fourth quarter of 2016 increased 1.2%, or
Loss from operations for the fourth quarter of 2016 was
2017 Financial Guidance
Management projects 2017 revenue growth of approximately 13% to 15% over full year 2016 at current exchange rates.
Adjusted EBITDA, a non-GAAP measure, is projected to be a loss in the
range of $4 to
Conference Call
About AtriCure
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. This document also includes forward-looking projected financial information that is based on current estimates and forecasts. 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
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, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Domestic Revenue: | ||||||||||||||||
Open-heart ablation | $ | 14,595 | $ | 14,498 | $ | 58,050 | $ | 53,541 | ||||||||
Minimally invasive ablation | 8,937 | 7,149 | 31,169 | 21,564 | ||||||||||||
AtriClip | 8,404 | 6,661 | 30,321 | 24,377 | ||||||||||||
Total ablation and AtriClip | 31,936 | 28,308 | 119,540 | 99,482 | ||||||||||||
Valve tools | 730 | 572 | 2,845 | 2,730 | ||||||||||||
Total domestic | 32,666 | 28,880 | 122,385 | 102,212 | ||||||||||||
International Revenue: | ||||||||||||||||
Open-heart ablation | 5,127 | 3,891 | 20,189 | 16,287 | ||||||||||||
Minimally invasive ablation | 2,182 | 2,193 | 8,065 | 7,964 | ||||||||||||
AtriClip | 1,103 | 810 | 3,986 | 2,868 | ||||||||||||
Total ablation and AtriClip | 8,412 | 6,894 | 32,240 | 27,119 | ||||||||||||
Valve tools | 79 | 89 | 484 | 424 | ||||||||||||
Total international | 8,491 | 6,983 | 32,724 | 27,543 | ||||||||||||
Total revenue | 41,157 | 35,863 | 155,109 | 129,755 | ||||||||||||
Cost of revenue | 12,260 | 10,318 | 44,008 | 36,880 | ||||||||||||
Gross profit | 28,897 | 25,545 | 111,101 | 92,875 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development expenses | 9,866 | 7,767 | 35,824 | 25,742 | ||||||||||||
Selling, general and administrative expenses | 26,726 | 28,408 | 106,415 | 93,853 | ||||||||||||
Total operating expenses | 36,592 | 36,175 | 142,239 | 119,595 | ||||||||||||
Loss from operations | (7,695 | ) | (10,630 | ) | (31,138 | ) | (26,720 | ) | ||||||||
Other expense, net | (914 | ) | (268 | ) | (2,160 | ) | (456 | ) | ||||||||
Loss before income tax expense | (8,609 | ) | (10,898 | ) | (33,298 | ) | (27,176 | ) | ||||||||
Income tax expense | 16 | 16 | 40 | 36 | ||||||||||||
Net loss | $ | (8,625 | ) | $ | (10,914 | ) | $ | (33,338 | ) | $ | (27,212 | ) | ||||
Basic and diluted net loss per share | $ | (0.27 | ) | $ | (0.36 | ) | $ | (1.05 | ) | $ | (0.97 | ) | ||||
Weighted average shares used in computing net loss per share: | ||||||||||||||||
Basic and diluted | 31,794 | 30,634 | 31,609 | 28,058 | ||||||||||||
ATRICURE, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In Thousands) | ||||||||
(Unaudited) | ||||||||
December 31, | December 31, | |||||||
2016 | 2015 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash, cash equivalents, and short-term investments | $ | 44,009 | $ | 34,578 | ||||
Accounts receivable, net | 21,094 | 19,409 | ||||||
Inventories | 17,660 | 17,659 | ||||||
Other current assets | 2,954 | 3,106 | ||||||
Total current assets | 85,717 | 74,752 | ||||||
Property and equipment, net | 29,995 | 31,279 | ||||||
Long-term investments | 3,000 | 7,706 | ||||||
Goodwill and intangible assets, net | 157,388 | 159,032 | ||||||
Other noncurrent assets | 321 | 323 | ||||||
Total assets | $ | 276,421 | $ | 273,092 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 27,140 | $ | 31,138 | ||||
Other current liabilities and current maturities of capital leases and long-term debt | 1,688 | 450 | ||||||
Total current liabilities | 28,828 | 31,588 | ||||||
Capital leases | 13,319 | 13,710 | ||||||
Long-term debt | 23,886 | — | ||||||
Other noncurrent liabilities | 41,946 | 41,109 | ||||||
Total liabilities | 107,979 | 86,407 | ||||||
Stockholders' equity: | ||||||||
Common stock | 33 | 32 | ||||||
Additional paid-in capital | 367,851 | 352,900 | ||||||
Accumulated other comprehensive loss | (468 | ) | (611 | ) | ||||
Accumulated deficit | (198,974 | ) | (165,636 | ) | ||||
Total stockholders' equity | 168,442 | 186,685 | ||||||
Total liabilities and stockholders' equity | $ | 276,421 | $ | 273,092 | ||||
ATRICURE, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(In Thousands) | ||||||||
(Unaudited) | ||||||||
Twelve Months Ended December 31, | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (33,338 | ) | $ | (27,212 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Share-based compensation expense | 11,697 | 8,997 | ||||||
Depreciation and amortization of intangible assets | 9,299 | 6,278 | ||||||
Amortization of deferred financing costs | 218 | 61 | ||||||
Loss on disposal of equipment and impairment of assets | 433 | 276 | ||||||
Realized loss from foreign exchange on intercompany transactions | 407 | 434 | ||||||
Amortization/accretion on investments | 126 | 577 | ||||||
Change in allowance for doubtful accounts | 149 | 144 | ||||||
Change in fair value of contingent consideration | 969 | — | ||||||
Changes in operating assets and liabilities, net of amounts acquired: | ||||||||
Accounts receivable | (1,982 | ) | (900 | ) | ||||
Inventories | (79 | ) | (2,950 | ) | ||||
Other current assets | 122 | (928 | ) | |||||
Accounts payable and accrued liabilities | (2,987 | ) | 7,083 | |||||
Other non-current assets and liabilities | (153 | ) | 298 | |||||
Net cash used in operating activities | (15,119 | ) | (7,842 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of available-for-sale securities | (28,592 | ) | (19,525 | ) | ||||
Sales and maturities of available-for-sale securities | 24,202 | 40,602 | ||||||
Purchases of property and equipment | (7,692 | ) | (13,445 | ) | ||||
Proceeds from sale of property and equipment | 3 | — | ||||||
Increases in property under build-to-suit obligation | — | (10,552 | ) | |||||
Cash paid for nContact business combination | — | (7,581 | ) | |||||
Net cash used in investing activities | (12,079 | ) | (10,501 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from debt borrowings | 25,000 | — | ||||||
Payments on capital leases | (439 | ) | (263 | ) | ||||
Proceeds from build-to-suit obligation | — | 10,552 | ||||||
Proceeds from economic incentive loan | — | 340 | ||||||
Payment of debt fees | (120 | ) | (62 | ) | ||||
Proceeds from stock option exercises | 3,337 | 2,703 | ||||||
Shares repurchased for payment of taxes on stock awards | (1,701 | ) | (782 | ) | ||||
Proceeds from issuance of common stock under employee stock purchase plan |
1,618 | 1,539 | ||||||
Payment of stock issuance fees | — | (66 | ) | |||||
Net cash provided by financing activities | 27,695 | 13,961 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (53 | ) | (238 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 444 | (4,620 | ) | |||||
Cash and cash equivalents - beginning of period | 23,764 | 28,384 | ||||||
Cash and cash equivalents - end of period | $ | 24,208 | $ | 23,764 | ||||
Supplemental cash flow information: | ||||||||
Cash paid for interest | $ | 1,506 | $ | 232 | ||||
Cash paid for income taxes | 30 | 20 | ||||||
Noncash investing and financing activities: | ||||||||
Accrued purchases of property and equipment | 340 | 1,277 | ||||||
Assets acquired through capital lease | 152 | 50 | ||||||
Capital lease asset early termination | 37 | — | ||||||
Stock issuance in business combinations | — | 69,054 | ||||||
Contingent consideration in business combinations | — | 40,207 | ||||||
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, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net loss, as reported | $ | (8,625 | ) | $ | (10,914 | ) | $ | (33,338 | ) | $ | (27,212 | ) | ||||
Income tax expense | 16 | 16 | 40 | 36 | ||||||||||||
Other expense, net (a) | 914 | 268 | 2,160 | 456 | ||||||||||||
Depreciation and amortization expense | 2,441 | 2,066 | 9,299 | 6,278 | ||||||||||||
Share-based compensation expense | 2,901 | 2,464 | 11,697 | 8,997 | ||||||||||||
Change in fair value of contingent consideration | 969 | — | 969 | — | ||||||||||||
Non-GAAP adjusted loss (adjusted EBITDA) | $ | (1,384 | ) | $ | (6,100 | ) | $ | (9,173 | ) | $ | (11,445 | ) | ||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(a) Other includes: | ||||||||||||||||
Net interest expense | $ | 474 | $ | 193 | $ | 1,574 | $ | 102 | ||||||||
Grant income | — | — | — | (35 | ) | |||||||||||
Loss due to exchange rate fluctuation | 440 | 82 | 586 | 339 | ||||||||||||
Non-employee stock option expense | — | — | — | 57 | ||||||||||||
Other | — | (7 | ) | — | (7 | ) | ||||||||||
Other expense, net | $ | 914 | $ | 268 | $ | 2,160 | $ | 456 | ||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170228006360/en/
Source:
AtriCure, Inc.
Andy Wade, 513-755-4564
Senior Vice President
and Chief Financial Officer
awade@atricure.com
or
Gilmartin
Group
Lynn Pieper Lewis, 415-937-5402
Investor Relations
lynn@gilmartinir.com