nuva-8k_20200506.htm
false 0001142596 0001142596 2020-05-06 2020-05-06

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 6, 2020

 

NuVasive, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

000-50744

33-0768598

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification Number)

 

 

 

7475 Lusk Boulevard, San Diego, California 92121

(Address of principal executive offices) (Zip Code)

 

 

 

(858) 909-1800

(Registrant’s telephone number, including area code)

 

 

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

NUVA

The NASDAQ Stock Market LLC

(NASDAQ Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 


Item 2.02

Results of Operations and Financial Condition.

On May 6, 2020, NuVasive, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2020. A copy of this press release is furnished as Exhibit 99.1 to this Current Report.

Item 7.01

Regulation FD Disclosure.

During a conference call scheduled to be held at 1:30 p.m. Pacific Time on May 6, 2020, the Company’s Chief Executive Officer and Chief Financial Officer will discuss the Company’s results for the quarter ended March 31, 2020.

 

The information contained in this Current Report and Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01

Financial Statements and Exhibits.

(d)

Exhibits.

Exhibit No.

Description

99.1

Press Release issued by NuVasive, Inc. on May 6, 2020

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 



SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

NUVASIVE, INC.

 

 

 

Date: May 6, 2020

 

/s/ Matthew K. Harbaugh

 

 

Matthew K. Harbaugh

 

 

Executive Vice President and Chief Financial Officer

 

 

 

nuva-ex991_6.htm

Exhibit 99.1

NEWS RELEASE

 

NuVasive Announces First Quarter 2020 Financial Results


SAN DIEGO May 6, 2020 – NuVasive, Inc. (NASDAQ: NUVA), the leader in spine technology innovation, focused on transforming spine surgery with minimally disruptive, procedurally integrated solutions, today announced financial results for the quarter ended March 31, 2020.

 

First Quarter 2020 Highlights

 

Revenue decreased -5.4% to $259.9 million, or -5.1% on a constant currency basis;

 

GAAP operating margin of 10.9%; Non-GAAP operating margin of 16.9%; and

 

GAAP diluted earnings per share of $0.10; Non-GAAP diluted earnings per share of $0.48.

 

"First and foremost, I want to recognize the healthcare professionals who are battling COVID-19 on the front lines and whose work is truly heroic during this global healthcare crisis,” said J. Christopher Barry, chief executive officer of NuVasive. “Additionally, I am proud of the resiliency demonstrated by NuVasive employees, as the Company remains committed to supporting our surgeon partners and their patients during this time.

 

“NuVasive's first quarter performance was consistent with the preliminary revenue results provided in the business update shared last month,” Barry continued. “The Company began the quarter positioned to build upon the financial momentum delivered last year, but faced a decline in elective procedure volumes due to the COVID-19 pandemic. However, with a strong cash position, dedicated team and innovative technology in our pipeline, we are confident in the long-term trajectory of the business and our purpose to transform surgery, advance care and change lives.”

 

A full reconciliation of GAAP to non-GAAP financial measures can be found in the tables of this news release.

 

First Quarter 2020 Results

NuVasive reported first quarter 2020 total revenue of $259.9 million, a -5.4% decrease compared to $274.8 million for the first quarter 2019. On a constant currency basis, first quarter 2020 total revenue decreased -5.1% compared to the same period last year.

 

For the first quarter 2020, both GAAP and non-GAAP gross profit was $188.0 million and GAAP and non-GAAP gross margin was 72.3%. These results compared to GAAP and non-GAAP gross profit of $200.3 million and GAAP and non-GAAP gross margin of 72.9%, for the first quarter 2019.

 

The Company reported GAAP net income of $5.3 million, or diluted earnings per share of $0.10, for the first quarter 2020 compared to GAAP net income of $9.4 million, or diluted earnings per share of $0.18, for the first quarter 2019. On a non-GAAP basis, the Company reported net income of $25.4 million, or diluted earnings per share of $0.48, for the first quarter 2020 compared to non-GAAP net income of $27.6 million, or diluted earnings per share of $0.53, for the first quarter 2019.

 

 

 


 

Expense Control Measures and 2020 Financial Guidance

On April 14, 2020, NuVasive provided a business update related to COVID-19, including the following temporary actions to reduce operating expenses:

 

Implementing compensation reductions for its board of directors and executive officers;

 

Controlling discretionary spend across the organization; and

 

Adjusting manufacturing capacity based on certain government directives and demand, while ensuring sufficient inventory levels to support current procedure volumes.

 

Additionally, on April 14, 2020, NuVasive withdrew its annual financial guidance for 2020. The COVID-19 pandemic has had a significant negative impact on elective procedure volumes. As visibility for spine surgery volumes for the remainder of the year is limited, and the Company is not able to predict when or how quickly elective surgery volumes will recover, the Company is not providing further financial guidance for 2020 at this time.

 

Supplementary Financial Information

For additional financial detail, please visit the Investor Relations section of the Company's website at www.nuvasive.com to access Supplementary Financial Information.

 

Reconciliation of GAAP to Non-GAAP Information

Management uses certain non-GAAP financial measures such as non-GAAP diluted earnings per share, non-GAAP net income, non-GAAP operating expenses and non-GAAP operating margin, which exclude amortization of intangible assets, business transition costs, purchased in-process research and development, one-time restructuring and related items in connection with acquisitions, investments and divestitures, non-recurring consulting fees, certain litigation expenses and settlements, certain European medical device regulation costs, gains and losses from strategic investments, and non-cash interest expense (excluding debt issuance cost). Management also uses certain non-GAAP measures which are intended to exclude the impact of foreign exchange currency fluctuations. The measure constant currency utilizes an exchange rate that eliminates fluctuations when calculating financial performance numbers. The Company also uses measures such as free cash flow, which represents cash flow from operations less cash used in the acquisition and disposition of capital. Additionally, the Company uses an adjusted EBITDA measure which represents earnings before interest, taxes, depreciation and amortization and excludes the impact of stock-based compensation, business transition costs, purchased in-process research and development, one-time restructuring and related items in connection with acquisitions, investments and divestitures, non-recurring consulting fees, certain litigation expenses and settlements, certain European medical device regulation costs, gains and losses on strategic investments, and other significant one-time items.

 

Management calculates the non-GAAP financial measures provided in this earnings release excluding these costs and uses these non-GAAP financial measures to enable it to further and more consistently analyze the period-to-period financial performance of its core business operations. Management believes that providing investors with these non-GAAP measures gives them additional information to enable them to assess, in the same way management assesses, the Company's current and future continuing operations. These non-GAAP measures are not in accordance with, or an alternative for, GAAP, and may be different from non-GAAP measures used by other companies. Set forth below are reconciliations of the non-GAAP financial measures to the comparable GAAP financial measure.

 

 


 

 

 

For the Three Months Ended March 31, 2020

 

 

 

 

Reconciliation of GAAP to Non-GAAP Financial Measures

 

 

 

 

(Unaudited - in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

Operating Profit

 

Net Income

 

Diluted EPS

 

Diluted WASO 5

 

Net Income to Adjusted EBITDA

 

 

 

 

Reported GAAP

$

188,016

 

$

28,319

 

$

5,298

 

$

0.10

 

 

53,727

 

$

5,298

 

 

 

 

% of revenue

 

72.3

%

 

10.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

12,649

 

 

12,649

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation related expenses and settlements 1

 

 

 

 

3,103

 

 

3,103

 

 

 

 

 

 

 

 

3,103

 

 

 

 

Business transition costs 2

 

 

 

 

(1,440

)

 

(1,440

)

 

 

 

 

 

 

 

(1,440

)

 

 

 

European medical device regulation 3

 

 

 

 

1,247

 

 

1,247

 

 

 

 

 

 

 

 

1,247

 

 

 

 

Non-cash interest expense on convertible notes

 

 

 

 

 

 

 

5,724

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss on strategic investments

 

 

 

 

 

 

 

1,411

 

 

 

 

 

 

 

 

1,411

 

 

 

 

Tax effect of adjustments 4

 

 

 

 

 

 

 

(2,562

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense/(income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,786

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,827

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34,972

 

 

 

 

Non-cash stock based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,858

)

 

 

 

Adjusted Non-GAAP

$

188,016

 

$

43,878

 

$

25,430

 

$

0.48

 

 

52,532

 

$

57,346

 

 

 

 

% of revenue

 

72.3

%

 

16.9

%

 

 

 

 

 

 

 

 

 

 

22.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Represents expenses associated with certain ongoing litigation matters, including infringement of the Company’s intellectual property.

 

 

2

 

Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs, contingent consideration fair value adjustments, and other costs directly associated with such activities.

 

 

3

 

Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with European medical device regulation.

 

 

4

 

Represents the impact from tax affecting the adjustments above at their statutory tax rate. As of May 6, 2020, the Company estimated an annual tax rate of ~27% on a GAAP basis and ~23% on a non-GAAP basis.

 

 

5

 

Adjusted non-GAAP diluted WASO excludes the impact of dilutive convertible notes for which the Company is economically hedged through its anti-dilutive bond hedge arrangements.

 

 

 

 

 

 


 

 

 

For the Three Months Ended March 31, 2019

 

 

 

 

Reconciliation of GAAP to Non-GAAP Financial Measures

 

 

 

 

(Unaudited - in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

Operating Profit

 

Net Income

 

Diluted EPS

 

Diluted WASO 5

 

Net Income to Adjusted EBITDA

 

 

 

 

Reported GAAP

$

200,282

 

$

20,173

 

$

9,386

 

$

0.18

 

 

52,480

 

$

9,386

 

 

 

 

% of revenue

 

72.9

%

 

7.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

13,625

 

 

13,625

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation related expenses and settlements 1

 

 

 

 

3,046

 

 

3,046

 

 

 

 

 

 

 

 

3,046

 

 

 

 

Business transition costs 2

 

 

 

 

3,833

 

 

3,833

 

 

 

 

 

 

 

 

3,833

 

 

 

 

European medical device regulation 3

 

 

 

 

332

 

 

332

 

 

 

 

 

 

 

 

332

 

 

 

 

Non-cash interest expense on convertible notes

 

 

 

 

 

 

 

4,319

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax effect of adjustments 4

 

 

 

 

 

 

 

(6,933

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense/(income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,104

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,317

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34,054

 

 

 

 

Non-cash stock based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,717

 

 

 

 

Adjusted Non-GAAP

$

200,282

 

$

41,009

 

$

27,608

 

$

0.53

 

 

52,480

 

$

66,789

 

 

 

 

% of revenue

 

72.9

%

 

14.9

%

 

 

 

 

 

 

 

 

 

 

24.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Represents expenses associated with certain ongoing litigation matters, including infringement of the Company’s intellectual property.

 

 

2

 

Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs, contingent consideration fair value adjustments, and other costs directly associated with such activities.

 

 

3

 

Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with European medical device regulation.

 

 

4

 

Represents the impact from tax affecting the adjustments above at their statutory tax rate. As of May 1, 2019, the Company estimated an annual tax rate of ~22% on a GAAP basis and ~23% on a non-GAAP basis.

 

 

5

 

Adjusted non-GAAP diluted WASO excludes the impact of dilutive convertible notes for which the Company is economically hedged through its anti-dilutive bond hedge arrangements.

 

 

 


 

Investor Conference Call

NuVasive will hold a conference call today at 4:30 p.m. ET / 1:30 p.m. PT to discuss the results of its financial performance for the first quarter 2020. The dial-in numbers are 1-877-407-9039 for domestic callers and 1-201-689-8470 for international callers. A live webcast of the conference call will be available online from the Investor Relations page of the Company's website at www.nuvasive.com. After the live webcast, the call will remain available on NuVasive's website through June 6, 2020. In addition, a telephone replay of the call will be available until May 13, 2020. The replay dial-in numbers are 1-844-512-2921 for domestic callers and 1-412-317-6671 for international callers. Please use pin number: 13702256.

 

About NuVasive

NuVasive, Inc. (NASDAQ: NUVA) is the leader in spine technology innovation, with a mission to transform surgery, advance care and change lives. The Company's less invasive, procedurally integrated surgical solutions are designed to deliver reproducible and clinically proven outcomes. The Company’s comprehensive procedural portfolio includes access, implants and fixation systems, biologics, software for surgical planning, navigation and imaging solutions, magnetically adjustable implant systems for spine and orthopedics, and intraoperative monitoring service offerings. With more than $1 billion in revenue, NuVasive has approximately 2,800 employees and operates in more than 50 countries serving surgeons, hospitals and patients. For more information, please visit www.nuvasive.com.

 

Forward-Looking Statements

NuVasive cautions you that statements included in this news release or made on the investor conference call referenced herein that are not a description of historical facts are forward-looking statements that involve risks, uncertainties, assumptions and other factors which, if they do not materialize or prove correct, could cause NuVasive's results to differ materially from historical results or those expressed or implied by such forward-looking statements. In addition, this news release contains selected financial results from the first quarter 2020. The Company’s results for the first quarter 2020 are prior to the completion of review and audit procedures by the Company’s external auditors and are subject to adjustment. The potential risks and uncertainties which contribute to the uncertain nature of these statements include, among others, the impact of the COVID-19 pandemic on the Company's business and financial results; the Company’s ability to maintain operations to support its customers and patients in the near-term and to capitalize on future growth opportunities; risks associated with acceptance of the Company's surgical products and procedures by spine surgeons and hospitals, development and acceptance of new products or product enhancements, clinical and statistical verification of the benefits achieved via the use of NuVasive's products, the Company's ability to adequately manage inventory as it continues to release new products, its ability to recruit and retain management and key personnel, and the other risks and uncertainties more fully described in the Company’s news releases and periodic filings with the Securities and Exchange Commission. NuVasive's public filings with the Securities and Exchange Commission are available at www.sec.gov. NuVasive assumes no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made.

 


 

NuVasive, Inc.

 

Consolidated Statements of Operations

 

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

(unaudited)

 

2020

 

 

2019

 

Revenue

 

 

 

 

 

 

 

 

Product revenue

 

$

234,687

 

 

$

243,823

 

Service revenue

 

 

25,194

 

 

 

30,953

 

Total revenue

 

 

259,881

 

 

 

274,776

 

Cost of revenue (excluding below amortization of intangible assets)

 

 

 

 

 

 

 

 

Cost of products sold

 

 

51,645

 

 

 

54,486

 

Cost of services

 

 

20,220

 

 

 

20,008

 

Total cost of revenue

 

 

71,865

 

 

 

74,494

 

Gross profit

 

 

188,016

 

 

 

200,282

 

Operating expenses:

 

 

 

 

 

 

 

 

Sales, marketing and administrative

 

 

130,231

 

 

 

145,076

 

Research and development

 

 

18,257

 

 

 

17,575

 

Amortization of intangible assets

 

 

12,649

 

 

 

13,625

 

Business transition costs

 

 

(1,440

)

 

 

3,833

 

Total operating expenses

 

 

159,697

 

 

 

180,109

 

Interest and other expense, net:

 

 

 

 

 

 

 

 

Interest income

 

 

731

 

 

 

409

 

Interest expense

 

 

(11,517

)

 

 

(9,513

)

Other (expense) income, net

 

 

(7,408

)

 

 

(366

)

Total interest and other expense, net

 

 

(18,194

)

 

 

(9,470

)

Income before income taxes

 

 

10,125

 

 

 

10,703

 

Income tax expense

 

 

(4,827

)

 

 

(1,317

)

Consolidated net income

 

$

5,298

 

 

$

9,386

 

Net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.10

 

 

$

0.18

 

Diluted

 

$

0.10

 

 

$

0.18

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

51,837

 

 

 

51,675

 

Diluted

 

 

53,727

 

 

 

52,480

 

 

 


 

NuVasive, Inc.

 

Consolidated Balance Sheets

 

(in thousands, except par values and share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2020

 

 

December 31, 2019

 

ASSETS

 

(Unaudited)

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

511,976

 

 

$

213,034

 

Accounts receivable, net of allowances of $17,386 and $17,019, respectively

 

 

186,826

 

 

 

211,532

 

Inventory, net

 

 

324,675

 

 

 

312,419

 

Prepaid income taxes

 

 

17,628

 

 

 

10,434

 

Prepaid expenses and other current assets

 

 

17,294

 

 

 

16,917

 

Total current assets

 

 

1,058,399

 

 

 

764,336

 

Property and equipment, net

 

 

280,058

 

 

 

266,318

 

Intangible assets, net

 

 

191,136

 

 

 

201,092

 

Goodwill

 

 

559,299

 

 

 

561,064

 

Operating lease right-of-use assets

 

 

107,304

 

 

 

66,932

 

Deferred tax assets

 

 

9,354

 

 

 

9,162

 

Restricted cash and investments

 

 

1,494

 

 

 

1,494

 

Other assets

 

 

13,477

 

 

 

14,892

 

Total assets

 

$

2,220,521

 

 

$

1,885,290

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

91,241

 

 

$

97,160

 

Contingent consideration liabilities

 

 

14,859

 

 

 

15,727

 

Accrued payroll and related expenses

 

 

40,173

 

 

 

86,458

 

Operating lease liabilities

 

 

7,031

 

 

 

5,567

 

Income tax liabilities

 

 

151

 

 

 

2,005

 

Senior convertible notes

 

 

628,681

 

 

 

 

Total current liabilities

 

 

782,136

 

 

 

206,917

 

Long-term senior convertible notes

 

 

361,633

 

 

 

623,298

 

Deferred and income tax liabilities

 

 

23,905

 

 

 

14,655

 

Operating lease liabilities

 

 

116,496

 

 

 

73,153

 

Other long-term liabilities

 

 

50,152

 

 

 

52,060

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 5,000,000 shares authorized, none outstanding

 

 

 

 

 

 

Common stock, $0.001 par value; 120,000,000 shares authorized at March 31, 2020 and December 31, 2019, 57,691,871 and 57,524,658 issued and outstanding at March 31, 2020 and December 31, 2019, respectively

 

 

62

 

 

 

62

 

Additional paid-in capital

 

 

1,478,294

 

 

 

1,429,854

 

Accumulated other comprehensive loss

 

 

(13,227

)

 

 

(9,418

)

Retained earnings

 

 

87,773

 

 

 

82,475

 

Treasury stock at cost; 6,524,218 shares and 5,379,536 shares at March 31, 2020 and December 31, 2019, respectively

 

 

(666,703

)

 

 

(587,766

)

Total equity

 

 

886,199

 

 

 

915,207

 

Total liabilities and equity

 

$

2,220,521

 

 

$

1,885,290

 

 

 

 


 

NuVasive, Inc.

 

Consolidated Statements of Cash Flows

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

(unaudited)

 

2020

 

 

2019

 

Operating activities:

 

 

 

 

 

 

 

 

Consolidated net income

 

$

5,298

 

 

$

9,386

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

34,972

 

 

 

34,054

 

Amortization of non-cash interest

 

 

7,143

 

 

 

5,210

 

Stock-based compensation

 

 

(2,858

)

 

 

5,717

 

Reserves on current assets

 

 

5,232

 

 

 

3,785

 

Net loss on strategic investments

 

 

1,411

 

 

 

 

Other non-cash adjustments

 

 

5,403

 

 

 

3,172

 

Deferred income taxes

 

 

9,105

 

 

 

1,547

 

Changes in operating assets and liabilities, net of effects from acquisitions:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

22,409

 

 

 

1,620

 

Inventory

 

 

(21,135

)

 

 

(19,292

)

Prepaid expenses and other current assets

 

 

(2,042

)

 

 

(1,399

)

Accounts payable and accrued liabilities

 

 

(5,271

)

 

 

(2,249

)

Accrued payroll and related expenses

 

 

(45,927

)

 

 

(14,815

)

Income taxes

 

 

(8,515

)

 

 

(2,261

)

Net cash provided by operating activities

 

 

5,225

 

 

 

24,475

 

Investing activities:

 

 

 

 

 

 

 

 

Purchases of intangible assets

 

 

(2,490

)

 

 

(6,827

)

Purchases of property and equipment

 

 

(28,116

)

 

 

(33,929

)

Net cash used in investing activities

 

 

(30,606

)

 

 

(40,756

)

Financing activities:

 

 

 

 

 

 

 

 

Purchases of treasury stock

 

 

(78,818

)

 

 

(8,177

)

Payment of contingent consideration

 

 

(346

)

 

 

(1,435

)

Proceeds from issuance of convertible debt, net of issuance costs

 

 

437,686

 

 

 

 

Proceeds from sale of warrants

 

 

47,070

 

 

 

 

Purchase of convertible note hedge

 

 

(78,300

)

 

 

 

Other financing activities

 

 

(1,233

)

 

 

1,556

 

Net cash provided by (used in) financing activities

 

 

326,059

 

 

 

(8,056

)

Effect of exchange rate changes on cash

 

 

(1,736

)

 

 

(112

)

Increase (decrease) in cash, cash equivalents and restricted cash

 

 

298,942

 

 

 

(24,449

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

214,528

 

 

 

120,235

 

Cash, cash equivalents and restricted cash at end of period

 

$

513,470

 

 

$

95,786

 

 

###

 


 

Investor Contact:

Suzanne Hatcher

NuVasive, Inc.

858-458-2240

investorrelations@nuvasive.com

 

Media Contact:

Jessica Tieszen

NuVasive, Inc.

858-736-0364

media@nuvasive.com