Press Release
- Fourth Quarter Revenue of
- 2008 Revenue of
- Provides 2009 Guidance -
Fourth Quarter and Full Year 2008 Highlights:
- Fourth quarter total revenue of
- Full year 2008 total revenue of
- Osteocel revenue for the second half 2008 of
- Gross margin of 82.0% for the fourth quarter and 82.3% for the full year
- GAAP earnings per share was
- Full year 2008 earnings per share of
Gross profit for the fourth quarter 2008 was
Total operating expenses for the fourth quarter 2008 were
On a GAAP basis, the Company reported net income of
Cash, cash equivalents and short and long-term marketable securities were
On
Mr. Lukianov continued, "The Osteocel and Progentix transactions strongly
position us to compete in the
2009 Financial Guidance
Full Year 2009:
Revenue: $345 million to $350 million
GAAP EPS: $(0.14) to $(0.12)
Non-GAAP EPS: $0.83 to $0.85
Non-GAAP Operating Income %: 11% to 13%
Earnings per share of $0.02 to $0.04 ; adjusted for IP litigation and
acquisition related costs per the enclosed table
First Quarter 2009:
Revenue: approximately $75 million
GAAP EPS: $(0.27) to $(0.25)
Non-GAAP EPS: $0.01 to $0.03
Non-GAAP Operating Income %: 3% to 4%
Loss per share of $(0.21) to $(0.19); adjusted for IP litigation and
acquisition related costs per the enclosed table
Reconciliation of Non-GAAP Information
Management uses certain non-GAAP financial measures such as non-GAAP earnings per share, which exclude stock based compensation and charges directly related to acquisition transactions such as in-process research and development, milestone payments, amortization of the acquired intangible assets and certain other charges plus additional items in certain periods. In 2008, these charges include in-process research and development, a one-time charge related to vacating the Company's previous headquarters, amortization of acquired intangible assets, transitional support costs for the Company's ERP system, and intellectual property litigation expenses. In 2009, these charges include acquisition related costs, amortization of acquired intangible assets and intellectual property litigation expenses. 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 Fourth Quarter 2008 Results
(in thousands, except per share amounts) $ Per Share
--- ---------
GAAP net income (A) $3,700 0.10
In-process research and development
(IPR&D) (B) - -
Other adjustments ( C ) 2,417 0.06
----- ----
Earnings excluding IPR&D and other adjustments 6,117 0.16
Non-cash stock-based compensation 5,228 0.14
Amortization of acquired intangible assets 1,174 0.03
----- ----
Non-GAAP earnings (A) $12,519 0.33
======= ====
Shares used in computing GAAP earnings /
(loss) per share 36,207
======
Shares used in computing non-GAAP earnings /
(loss) per share 37,744
======
Reconciliation of Full Year 2008 Results
(in thousands, except per share amounts) $ Per Share
--- ---------
GAAP net income (loss) (A) $(27,528) $(0.77)
In-process research and development
(IPR&D) (B) 20,876 0.56
Other adjustments (D) 10,408 0.28
------ ----
Earnings excluding IPR&D and other adjustments 3,756 0.10
Non-cash stock-based compensation 20,947 0.56
Amortization of acquired intangible assets 2,989 0.08
----- ----
Non-GAAP earnings (A) $27,692 $0.74
======= =====
Shares used in computing GAAP earnings /
(loss) per share 35,807
======
Shares used in computing non-GAAP earnings /
(loss) per share 37,560
======
A-- GAAP loss per share is calculated using basic weighted shares
outstanding; GAAP earnings per share is calculated using diluted
weighted shares outstanding; Non-GAAP earnings per share is
calculated using diluted weighted shares outstanding.
B-- Charges related to the acquisition of the pedicle screw technology
in the first quarter of 2008 and the acquisition of the Osteocel
Business Unit in the third quarter of 2008.
C-- Other adjustments related to transitional support costs of $1.4
million related to the Company's ERP system and $1.0 million for
intellectual property litigation expenses.
D-- Other adjustments related to the one-time leasehold termination
charge of $4.8 million , transitional support costs of $4.0 million
related to the Company's ERP system and $1.5 million for intellectual
property litigation expenses.
Reconciliation of Full Year 2009 Guidance
Range for Quarter Ending
March 31, 2009
------------------------
Low High
(in thousands, except per share amounts)
GAAP net loss per share (A) $(0.27) $(0.25)
IP Litigation costs 0.03 0.03
Acquisition related costs 0.03 0.03
------------------------
Earnings per share excluding other adjustments (0.21) (0.19)
Non-cash stock-based compensation 0.19 0.19
Amortization of acquired intangible assets 0.03 0.03
------------------------
Non-GAAP earnings per share (A) $0.01 $0.03
========================
Shares used in computing GAAP earnings /
(loss) per share 36,400 36,400
========================
Shares used in computing non-GAAP earnings /
(loss) per share 38,400 38,400
========================
Range for Year Ending
December 31, 2009
---------------------
Low High
(in thousands, except per share amounts)
GAAP net loss per share (A) $(0.14) $(0.12)
IP Litigation costs 0.13 0.13
Acquisition related costs 0.03 0.03
------------------------
Earnings per share excluding other adjustments 0.02 0.04
Non-cash stock-based compensation 0.69 0.69
Amortization of acquired intangible assets 0.12 0.12
------------------------
Non-GAAP earnings per share (A) $0.83 $0.85
========================
Shares used in computing GAAP earnings /
(loss) per share 37,400 37,400
========================
Shares used in computing non-GAAP earnings /
(loss) per share 39,300 39,300
========================
A-- GAAP loss per share is calculated using basic weighted shares
outstanding; Non-GAAP earnings per share is calculated using
diluted weighted shares outstanding.
About
The MAS platform offers advantages for both patients and surgeons such as
reduced surgery and hospitalization time and faster recovery. MAS combines
four categories of current product offerings: NeuroVision(R) a proprietary
software-driven nerve avoidance system; MaXcess(R) a unique split-blade design
retraction system; biologics; and specialized implants, like SpheRx(R) and
CoRoent(R), that collectively minimize soft tissue disruption during spine
surgery while allowing maximum visibility and surgical reproducibility.
Contact:
Kevin C. O'Boyle
EVP & Chief Financial Officer
NuVasive, Inc.
858-909-1998
investorrelations@nuvasive.com
Investors:
Patrick F. Williams
Vice President, Finance
NuVasive, Inc.
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 Year Ended
December 31, December 31,
------------- ----------------
2008 2007 2008 2007
---- ---- ---- ----
Revenue $74,581 $46,930 $250,082 $154,290
Cost of goods sold 13,456 8,040 44,301 27,382
------ ----- ------ ------
Gross profit 61,125 38,890 205,781 126,908
Operating expenses:
Sales, marketing and
administrative 50,847 34,567 186,822 119,579
Research and development 6,146 6,667 25,943 24,581
In-process research
and development - - 20,876 -
--- --- ------ ---
Total operating
expenses 56,993 41,234 233,641 144,160
Interest and other income,
net (432) 1,198 332 5,987
---- ----- --- -----
Net income / (loss) $3,700 $(1,146) $(27,528) $(11,265)
====== ======= ======== ========
Net income / (loss) per
share:
Basic and diluted $0.10 $(0.03) $(0.77) $(0.32)
===== ====== ====== ======
Weighted-average shares
--basic 36,207 35,207 35,807 34,782
====== ====== ====== ======
Weighted-average shares
--diluted 37,744 35,207 35,807 34,782
====== ====== ====== ======
NuVasive, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
December 31,
---------------
2008 2007
---- ----
ASSETS
Current assets:
Cash and cash equivalents $132,318 $61,915
Short-term marketable securities 45,738 19,247
Accounts receivable, net of allowance of
$1,952 and $926, respectively 51,622 27,496
Inventory, net 68,834 36,280
Prepaid expenses and other current assets 3,466 1,240
----- -----
Total current assets 301,978 146,178
Property and equipment, net 73,686 43,538
Long-term marketable securities 45,305 8,536
Intangible assets, net 57,099 24,496
Other assets 9,338 2,939
----- -----
Total assets $487,406 $225,687
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $26,633 $13,839
Royalties payable 1,722 2,076
Accrued payroll and related expenses 17,132 12,075
------ ------
Total current liabilities 45,487 27,990
Senior convertible notes 230,000 -
Other long-term liabilities 24,288 1,119
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value;
70,000 shares authorized 36,310 and
35,330 issued and outstanding at
December 31, 2008 and 2007, respectively 36 35
Additional paid-in capital 383,293 364,469
Accumulated other comprehensive (loss) income (190) 54
Accumulated deficit (195,508) (167,980)
-------- --------
Total stockholders' equity 187,631 196,578
------- -------
Total liabilities and stockholders' equity $487,406 $225,687
======== ========
NuVasive, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Years Ended December 31,
------------------------
2008 2007 2006
---- ---- ----
Operating activities:
Net loss $(27,528) $(11,265) $(47,910)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Depreciation and amortization 23,105 12,952 8,350
In-process research and development 20,876 - -
Stock-based compensation 20,947 13,621 13,345
Leasehold abandonment 4,403 - -
NeoDisc technology costs - - 8,060
Allowance for doubtful accounts 1,026 189 125
Allowance for excess and
obsolete inventory (836) 514 1,768
Other 179 109 388
Changes in operating assets and
liabilities:
Accounts receivable (25,152) (8,725) (7,423)
Inventory (32,451) (18,026) (8,877)
Prepaid expenses and other
current assets 274 349 (220)
Accounts payable and accrued
liabilities 5,098 5,719 3,987
Accrued payroll and
related expenses 5,057 3,676 2,802
----- ----- -----
Net cash used in operating activities (5,002) (887) (25,605)
Investing activities:
Cash paid for acquisitions (41,256) (6,970) -
Purchases of property and equipment (39,795) (24,403) (20,396)
Purchases of short-term
marketable securities (90,150) (75,135) (130,510)
Sales of short-term
marketable securities 63,659 129,818 63,525
Purchases of long-term
marketable securities (69,036) (23,540) (1,996)
Sales of long-term
marketable securities 32,267 17,000 -
Other assets (304) (2,483) (452)
---- ------ ----
Net cash (used in) provided by
investing activities (144,615) 14,287 (89,829)
Financing activities:
Payments of long-term liabilities (300) (300) (300)
Issuance of convertible debt,
net of costs 222,442 - -
Purchase of convertible note hedges (45,758) - -
Sale of warrants 31,786 - -
Issuance of common stock 11,850 7,339 144,665
Net cash provided by
financing activities 220,020 7,039 144,365
------- ----- -------
Increase in cash and cash equivalents 70,403 20,439 28,931
Cash and cash equivalents at
beginning of year 61,915 41,476 12,545
------ ------ ------
Cash and cash equivalents at
end of year $132,318 $61,915 $41,476
======== ======= =======
Supplemental disclosure of non-
cash transactions:
Landlord paid tenant improvements $7,309 $- $-
====== === ===
Issuance of common stock for NeoDisc
technology costs $- $- $8,060
=== === ======
Issuance of common stock in connection
with acquisitions $- $10,501 $-
=== ======= ===
SOURCE
CONTACT:
Web Site: http://www.nuvasive.com