Press Release
- Increases 2009 Guidance for Revenue and Earnings per Share -
- Announces the Acquisition of Cervitech(R) -
First Quarter 2009 Highlights:
- Total revenue of
- Gross margin of 81.5% compared to 82.2% for first quarter 2008
- GAAP loss per share was $(0.12); favorable to prior guidance of $(0.27) - $(0.25)
- First quarter loss per share was $(0.02), excluding intellectual property litigation and acquisition related costs; favorable to prior guidance of $(0.21) - $(0.19)
Gross profit for the first quarter 2009 was
Total operating expenses for the first quarter 2009 were
On a GAAP basis, the Company reported a net loss of
On a non-GAAP basis, the Company reported net income of
Cash, cash equivalents and short and long-term marketable securities were
Today, the Company announced the acquisition of
Mr. Lukianov continued, "Today, we are excited to announce the acquisition
of Cervitech, which gives
Updated 2009 Financial Guidance
Revenue:
--
Gross Margin:
-- Gross Margin of 81% to 82%, consistent with previous guidance
EPS:
-- GAAP: loss per share of $(0.07) to $(0.05); compared to previous
guidance of $(0.14) to $(0.12)
-- Non-GAAP: earnings per share of
-- Earnings per share of
Reconciliation of Non-GAAP Information
Management uses certain non-GAAP financial measures such as non-GAAP earnings per share, which exclude stock-based compensation, amortization of acquired intangible assets, intellectual property litigation expenses, and acquisition related costs. Management does not consider these costs in evaluating the continuing operations of the Company. Therefore, 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 analyze further, and more consistently, the period-to-period financial performance of its core business operations. Management believes that providing investors with these non-GAAP measures gives them additional important 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.
Reconciliation of First Quarter 2009 Results
(in thousands, except per share amounts) $ Per Share
GAAP net loss (A) $(4,302) $(0.12)
IP litigation costs 1,629 0.04
Acquisition related costs 1,912 0.05
Earnings excluding other adjustments (761) (0.02)
Non-cash stock-based compensation 6,682 0.18
Amortization of acquired intangible assets 1,336 0.04
Non-GAAP earnings (A) $7,257 $0.19
Basic weighted shares outstanding 36,365
Diluted weighted shares outstanding 37,744
A- GAAP loss per share is calculated using basic weighted shares outstanding;
Non-GAAP earnings per share is calculated using diluted weighted shares
outstanding.
Reconciliation of Full Year 2009 Guidance
Range for Year Ending
December 31, 2009
(in thousands, except per share amounts) Low High
GAAP net loss per share (A) $(0.07) $(0.05)
IP litigation costs 0.13 0.13
Acquisition related costs 0.05 0.05
Earnings per share excluding other adjustments 0.11 0.13
Non-cash stock-based compensation 0.70 0.70
Amortization of acquired intangible assets 0.13 0.13
Non-GAAP earnings per share (A) $0.94 $0.96
Basic weighted shares outstanding 37,200 37,200
Diluted weighted shares outstanding 38,750 38,750
A- GAAP loss per share is calculated using basic weighted shares outstanding;
Non-GAAP earnings per share is calculated using diluted weighted shares
outstanding.
Conference Call
After the live webcast, the call will remain available on
About
Contact: Investors:
Kevin C. O'Boyle Patrick F. Williams
EVP & Chief Financial Officer Vice President, Finance
NuVasive, Inc. & Investor Relations
858-909-1998 NuVasive, Inc.
investorrelations@nuvasive.com 858-638-5511
investorrelations@nuvasive.com
Media:
Jason Rando
The Ruth Group
646-536-7025
jrando@theruthgroup.com
NuVasive, Inc.
Unaudited Condensed Consolidated Statement of Operations
(in thousands, except per share data)
Three Months Ended March 31,
2009 2008
Revenues $80,008 $51,184
Cost of goods sold 14,774 9,095
Gross profit 65,234 42,089
Operating expenses:
Sales, marketing and administrative 58,481 39,317
Research and development 10,193 6,976
In-process research and development - 4,176
Total operating expenses 68,674 50,469
Interest income and other, net 776 1,160
Interest expense (1,868) (434)
Net loss attributable to noncontrolling interests 230 -
Total other income/ (expenses) (862) 726
Net loss attributable to NuVasive, Inc. $(4,302) $(7,654)
Net loss per share:
Basic and diluted $(0.12) $(0.22)
Weighted average shares - basic and diluted 36,365 35,411
Stock-based compensation is included in operating
expenses in the following categories:
Sales, marketing and administrative $5,241 $4,504
Research and development 1,441 646
$6,682 $5,150
NuVasive, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2009 2008
ASSETS
Current assets:
Cash and cash equivalents $144,761 $132,318
Short-term marketable securities 40,330 45,738
Accounts receivable, net 50,032 51,622
Inventory, net 82,236 68,834
Prepaid expenses and other current assets 2,675 3,466
Total current assets 320,034 301,978
Property and equipment, net 75,399 73,686
Long-term marketable securities 18,430 45,305
Goodwill 32,194 2,332
Intangible assets, net 70,550 54,767
Other assets 8,491 9,338
Total assets $525,098 $487,406
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $31,096 $26,633
Accrued payroll and related expenses 15,372 17,132
Acquisition related milestone liabilities 24,653 -
Royalties payable 2,204 1,722
Total current liabilities 73,325 45,487
Senior convertible notes 230,000 230,000
Other long-term liabilities 16,550 24,288
Commitments and contingencies
Noncontrolling interests 14,770 -
Stockholders' equity:
Common stock 36 36
Additional paid-in capital 391,122 383,293
Accumulated other comprehensive (loss)
income (665) (190)
Accumulated deficit (200,040) (195,508)
Total stockholders' equity 190,453 187,631
Total liabilities and stockholders' equity $525,098 $487,406
NuVasive, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months
Ended March 31,
2009 2008
Operating activities:
Net loss $(4,302) $(7,654)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 5,488 3,883
In-process research and development - 4,176
Stock-based compensation 6,682 5,150
Other non-cash adjustments 842 (47)
Noncontrolling interests (230) -
Changes in operating assets and liabilities:
Accounts receivable 1,361 (2,929)
Inventory (14,100) (9,306)
Prepaid expenses and other current assets 609 (1,040)
Accounts payable and accrued liabilities 10,052 5,260
Accrued payroll and related expenses (1,777) (1,728)
Net cash provided by/(used in) operating activities 4,625 (4,235)
Investing activities:
Cash paid for acquisitions - (6,256)
Investment in Progentix (10,000) -
Acquisition related milestone payments (10,000) -
Purchases of property and equipment (5,567) (11,369)
Purchases of short-term marketable securities (7,658) (3,005)
Sales of short-term marketable securities 27,725 17,300
Purchases of long-term marketable securities (6,758) (8,582)
Sales of long-term marketable securities 18,975 2,000
Other assets - 740
Net cash provided by/(used in) investing activities 6,717 (9,172)
Financing activities:
Payments of long-term liabilities - -
Issuance of convertible debt, net of costs - 222,414
Purchase of convertible note hedges - (45,758)
Sale of warrants - 31,786
Issuance of common stock 1,160 1,579
Net cash provided by financing activities 1,160 210,021
Effect of exchange rate changes on cash (59) -
Increase in cash and cash equivalents 12,443 196,614
Cash and cash equivalents at beginning of year 132,318 61,915
Cash and cash equivalents at end of year $144,761 $258,529
Supplemental disclosure of non-cash transactions:
Leasehold improvements paid by lessor $2,848
SOURCE
CONTACT:
Web Site: http://www.nuvasive.com