Press Release
- Increases 2009 Guidance for Revenue and Earnings per Share -
Second Quarter 2009 Highlights:
- Total revenue of
- Gross margin of 81.1% compared to 83.3% for second quarter 2008 and to 81.5%
for first quarter 2009
- GAAP earnings of
- Earnings per share, excluding intellectual property litigation and
acquisition related costs, of
Gross profit for the second quarter 2009 was
Total operating expenses for the second quarter 2009 were
On a GAAP basis, the Company reported net income of
On a non-GAAP basis, the Company reported net income of
Cash, cash equivalents and short and long-term marketable securities were
Updated 2009 Financial Guidance
Revenue:
--
Gross Margin:
-- Gross Margin of approximately 81%
EPS:
-- GAAP: earnings per share of
-- 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 Second Quarter 2009 Results
(in thousands, except per share amounts) $ Per Share
--- -----------
GAAP net earnings $2,765 $0.07
IP litigation costs 995 0.03
Acquisition related costs 563 0.01
--- ----
Earnings excluding other adjustments 4,323 0.11
Non-cash stock-based compensation 6,317 0.16
Amortization of acquired intangible assets 1,372 0.04
----- ----
Non-GAAP earnings $12,012 $0.31
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Diluted weighted shares outstanding 38,301
======
Reconciliation of Year-to-Date 2009 Results
(in thousands, except per share amounts) $ Per Share
--- -----------
GAAP net loss (A) $(1,537) $(0.04)
IP litigation costs 2,624 0.07
Acquisition related costs 2,476 0.07
----- ----
Earnings excluding other adjustments 3,563 0.09
Non-cash stock-based compensation 12,999 0.34
Amortization of acquired intangible assets 2,708 0.07
----- ----
Non-GAAP earnings (A) $19,270 $0.51
======= =====
Basic weighted shares outstanding 36,639
======
Diluted weighted shares outstanding 37,996
======
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 earnings per share $0.06 $0.08
IP litigation costs 0.13 0.13
Acquisition related costs 0.06 0.06
---- ----
Earnings per share excluding other adjustments 0.25 0.27
Non-cash stock-based compensation 0.65 0.65
Amortization of acquired intangible assets 0.13 0.13
---- ----
Non-GAAP earnings per share $1.03 $1.05
===== =====
Diluted weighted shares outstanding 38,500 38,500
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Conference Call
After the live webcast, the call will remain available on
About
Contact:
Kevin C. O'Boyle
EVP & Chief Financial Officer
NuVasive, Inc.
858-909-1998
investorrelations@nuvasive.com
Investors:
Patrick F. Williams
Vice President, Finance & Investor Relations
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 Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
Revenues $88,481 $57,417 $168,490 $108,601
Cost of goods sold 16,710 9,571 31,484 18,666
------ ----- ------ ------
Gross Profit 71,771 47,846 137,006 89,935
Operating expenses:
Sales, marketing and
administrative 58,149 42,099 116,630 81,416
Research and development 9,200 6,426 19,393 13,402
In-process research and development - - - 4,176
-- -- -- -----
Total operating expenses 67,349 48,525 136,023 98,994
Interest income (expense) and
other, net (2,110) 184 (3,203) 910
Net loss attributable to
noncontrolling interest 453 - 683 -
--- - --- -
Total other income (expense) (1,657) 184 (2,520) 910
------ ----- ------- -------
Net earnings (loss) attributable to
NuVasive, Inc. $2,765 $(495) $(1,537) $(8,149)
====== ===== ======= =======
Net income (loss) per share:
Basic and diluted net income
(loss) per share $0.07 $(0.01) $(0.04) $(0.23)
===== ====== ====== ======
Weighted average shares - basic 36,910 35,663 36,639 35,543
====== ====== ====== ======
Weighted average shares - diluted 38,301 35,663 36,639 35,543
====== ====== ====== ======
Stock-based compensation is included
in operating expenses in the
following categories:
Sales, marketing and
administrative $5,243 $4,538 $10,484 $9,042
Research and development 1,074 610 2,515 1,256
----- --- ----- -----
$6,317 $5,148 $12,999 $10,298
====== ====== ======= =======
NuVasive, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
June 30, 2009 December 31, 2008
--------------- -----------------
ASSETS
Current assets:
Cash and cash equivalents $136,326 $132,318
Short-term marketable securities 25,100 45,738
Accounts receivable, net 48,528 51,622
Inventory, net 87,130 68,834
Prepaid expenses and other current assets 3,825 3,466
----- -----
Total current assets 300,909 301,978
Property and equipment, net 77,830 73,686
Long-term marketable securities 19,351 45,305
Goodwill 87,265 2,332
Intangible assets, net 105,965 54,767
Other assets 7,674 9,338
----- -----
Total assets $598,994 $487,406
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $21,381 $26,633
Accrued payroll and related expenses 16,464 17,132
Acquisition milestone liabilities 12,350 -
Royalties payable 2,255 1,722
----- -----
Total current liabilities 52,450 45,487
Senior convertible notes 230,000 230,000
Other long-term liabilities 59,958 24,288
Commitments and contingencies
Noncontrolling interests 14,317 -
Stockholders' equity:
Common stock 38 36
Additional paid-in capital 439,303 383,293
Accumulated other comprehensive loss (27) (190)
Accumulated deficit (197,045) (195,508)
-------- --------
Total stockholders' equity 242,269 187,631
------- -------
Total liabilities and stockholders' equity $598,994 $487,406
======== ========
NuVasive, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Six Months Ended
June 30,
-----------------
2009 2008
---- ----
Operating activities:
Net loss $(1,537) $(8,149)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 12,811 8,449
In-process research and development - 4,176
Stock-based compensation 12,999 10,298
NeoDisc technology costs - -
Other non-cash adjustments 3,328 312
Noncontrolling interest (683) -
Changes in operating assets and liabilities:
Accounts receivable 2,221 (5,044)
Inventory (19,939) (16,496)
Prepaid expenses and other current assets (694) (1,707)
Accounts payable and accrued liabilities (288) 3,361
Accrued payroll and related expenses (652) (1,282)
---- ------
Net cash used in operating activities 7,566 (6,082)
Investing activities:
Cash paid for acquisitions - (6,256)
Cash paid for Cervitech acquisition (24,055) -
Investment in Progentix (10,000) -
Acquisition related milestone payments (10,000) -
Purchases of property and equipment (12,440) (25,686)
Purchases of short-term marketable securities (12,004) (72,799)
Sales of short-term marketable securities 49,295 19,300
Purchases of long-term marketable securities (17,674) (51,709)
Sales of long-term marketable securities 26,975 3,500
Other assets - 543
-- ---
Net cash provided by / (used in) investing
activities (9,903) (133,107)
Financing activities:
Payments of long-term liabilities - (300)
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 6,297 5,356
----- -----
Net cash provided by financing activities 6,297 213,498
Effect of exchange rate changes on cash 48 -
-- -
Increase in cash and cash equivalents 4,008 74,309
Cash and cash equivalents at beginning of year 132,318 61,915
------- ------
Cash and cash equivalents at end of year $136,326 $136,224
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Supplemental disclosure of non-cash transactions:
Leasehold improvements paid by lessor $2,848
SOURCE
CONTACT:
Web Site: http://www.nuvasive.com