Press Release
Gross profit for the third quarter 2009 was
Total operating expenses for the third 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:
-- $365 million to $367 million ; up from previous guidance of $360 million
to $365 million
Gross Margin:
-- Gross Margin of approximately 81%
EPS:
-- GAAP: earnings per share of $0.11 to $0.14 ; up from previous guidance of
$0.06 to $0.08
-- Earnings per share of $0.27 to $0.30 excluding adjustments per the
enclosed table; up from previous guidance of $0.25 to $0.27
Reconciliation of Non-GAAP Information
Management uses certain Non-GAAP financial measures such as Non-GAAP earnings per share, which exclude intellectual property litigation expenses, the reversal of leasehold termination charges, acquisition related costs, stock-based compensation, and the amortization of acquired intangible assets. 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 Third Quarter 2009 Results
(in thousands, except per share amounts) $ Per Share
----------- -----------
GAAP net income $5,064 $0.13
IP litigation costs 780 0.02
Reversal of leasehold termination charge (1,997) (0.05)
Acquisition related costs 621 0.02
--- ----
Earnings excluding other adjustments 4,468 0.11
Non-cash stock-based compensation 5,166 0.13
Amortization of acquired intangible assets 1,364 0.04
----- ----
Non-GAAP earnings $10,998 $0.28
======= =====
Diluted weighted shares outstanding 39,216
======
Reconciliation of Year-to-Date 2009 Results
(in thousands, except per share amounts) $ Per Share
----------- -----------
GAAP net income $3,527 $0.09
IP litigation costs 3,408 0.09
Reversal of leasehold termination charge (1,997) (0.05)
Acquisition related costs 3,096 0.08
----- ----
Earnings excluding other adjustments 8,034 0.21
Non-cash stock-based compensation 18,165 0.47
Amortization of acquired intangible assets 4,071 0.11
----- ----
Non-GAAP earnings $30,270 $0.79
======= =====
Diluted weighted shares outstanding 38,384
======
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 $0.11 $0.14
IP litigation costs 0.13 0.13
Reversal of leasehold termination charge (0.05) (0.05)
Acquisition related costs 0.08 0.08
---- ----
Earnings per share excluding other adjustments 0.27 0.30
Non-cash stock-based compensation 0.64 0.64
Amortization of acquired intangible assets 0.13 0.13
---- ----
Non-GAAP earnings per share $1.04 $1.07
===== =====
Diluted weighted shares outstanding 38,800 38,800
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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 Nine Months Ended
September 30, September 30,
------------------ -----------------
2009 2008 2009 2008
---- ---- ---- ----
Revenues $94,916 $66,915 $263,405 $175,501
Cost of goods sold 18,417 12,195 49,901 30,845
------ ------ ------ ------
Gross profit 76,499 54,720 213,504 144,656
Operating expenses:
Sales, marketing and
administrative 59,761 54,557 176,391 135,975
Research and development 10,654 6,396 30,047 19,797
In-process research and
development - 16,700 - 20,876
- ------ - ------
Total operating expenses 70,415 77,653 206,438 176,648
Interest income (expense) and
other, net (1,648) (146) (4,850) 764
Net loss attributable to
noncontrolling interests 628 - 1,311 -
--- - ----- -
Total other income (expense) (1,020) (146) (3,539) 764
------ -------- ------ --------
Net income (loss) attributable to
NuVasive, Inc. $5,064 $(23,079) $3,527 $(31,228)
====== ======== ====== ========
Net income (loss) per share
attributable to NuVasive, Inc. :
Basic net income (loss) per share $0.13 $(0.64) $0.10 $(0.88)
===== ====== ===== ======
Diluted net income (loss) per
share $0.13 $(0.64) $0.09 $(0.88)
===== ====== ===== ======
Weighted average shares - basic 37,733 35,931 37,008 35,674
====== ====== ====== ======
Weighted average shares - diluted 39,216 35,931 38,384 35,674
====== ====== ====== ======
Stock-based compensation is
included in operating expenses
in the following categories:
Sales, marketing and
administrative $4,265 $4,499 $14,748 $13,541
Research and development 901 922 3,417 2,178
--- --- ----- -----
$5,166 $5,421 $18,165 $15,719
====== ====== ======= =======
NuVasive, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
September 30, December 31,
2009 2008
-------------- -------------
ASSETS (In thousands, except par value)
Current assets:
Cash and cash equivalents $134,276 $132,318
Short-term marketable
securities 55,915 45,738
Accounts receivable, net 51,245 51,622
Inventory 85,892 68,834
Prepaid expenses and other
current assets 3,925 3,466
----- -----
Total current assets 331,253 301,978
Property and equipment, net 77,543 73,686
Long-term marketable
securities 10,032 45,305
Goodwill 102,264 2,332
Intangible assets, net 104,601 54,767
Other assets 7,337 9,338
----- -----
Total assets $633,030 $487,406
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $23,183 $26,633
Accrued payroll and
related expenses 20,568 17,132
Acquisition related
liabilities 15,414 -
Royalties payable 2,201 1,722
----- -----
Total current liabilities 61,366 45,487
Senior convertible notes 230,000 230,000
Long-term acquisition
related liabilities 30,318 12,111
Other long-term liabilities 29,099 12,177
Commitments and contingencies
Noncontrolling interests 13,689 -
Stockholders' equity:
Common stock 38 36
Additional paid-in
capital 460,290 383,293
Accumulated other
comprehensive income
(loss) 211 (190)
Accumulated deficit (191,981) (195,508)
-------- --------
Total stockholders' equity 268,558 187,631
------- -------
Total liabilities and
stockholders' equity $633,030 $487,406
======== ========
NuVasive, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Nine Months Ended
September 30,
-----------------
2009 2008
---- ----
Operating activities:
Net income (loss) $3,527 $(31,228)
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Depreciation and amortization 22,005 15,671
In-process research and development - 20,876
Stock-based compensation 18,165 15,719
Leasehold abandonment (1,997) 4,486
Noncontrolling interest (1,311) -
Allowance for doubtful accounts 1,175 410
Allowance for excess and obsolete
inventory 2,470 (3)
Other non-cash adjustments 2,248 1,019
Changes in operating assets and liabilities:
Accounts receivable (329) (18,986)
Inventory (19,027) (22,136)
Prepaid expenses and other current
assets 788 (941)
Accounts payable and accrued
liabilities 2,410 3,898
Accrued payroll and related expenses 2,742 1,778
----- -----
Net cash provided by (used in) operating
activities 32,866 (9,437)
Investing activities:
Cash paid for acquisitions (24,055) (41,256)
Investment in Progentix (10,000) -
Acquisition related milestone payments (10,000) -
Purchases of property and equipment (21,250) (34,161)
Purchases of short-term marketable
securities (46,678) (83,069)
Sales of short-term marketable
securities 56,365 29,842
Purchases of long-term marketable
securities (17,964) (51,390)
Sales of long-term marketable securities 32,971 14,778
Other assets - 544
- ---
Net cash provided by (used in) investing
activities (40,611) (164,712)
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 9,618 8,480
----- -----
Net cash provided by financing activities 9,618 216,622
Effect of exchange rate changes on cash 85 -
-- -
Increase in cash and cash equivalents 1,958 42,473
Cash and cash equivalents at beginning of
year 132,318 61,915
------- ------
Cash and cash equivalents at end of year $134,276 $104,388
======== ========
SOURCE
Kevin C. O'Boyle, EVP & Chief Financial Officer of NuVasive, Inc., +1-858-909-1998, investorrelations@nuvasive.com; or Investors: Patrick F. Williams, Vice President, Finance & Investor Relations of NuVasive, Inc., +1-858-638-5511, investorrelations@nuvasive.com; or Media: Jason Rando of The Ruth Group, +1-646-536-7025, jrando@theruthgroup.com