nuva-8k_20210505.htm
false 0001142596 0001142596 2021-05-05 2021-05-05

 

 

 

 

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 5, 2021

 

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 5, 2021, NuVasive, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2021. 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 5, 2021, the Company’s Chief Executive Officer and Chief Financial Officer will discuss the Company’s results for the quarter ended March 31, 2021.

The information contained in this Current Report and the Exhibits 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 5, 2021

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 5, 2021

 

/s/ Matthew K. Harbaugh

 

 

Matthew K. Harbaugh

 

 

Executive Vice President and Chief Financial Officer

 

 

 

nuva-ex991_15.htm

Exhibit 99.1

NEWS RELEASE

 

NuVasive Announces First Quarter 2021 Financial Results

 

-- Net sales increase driven by U.S. procedural volume improvement throughout the quarter and strong international growth --

-- Simplify Cervical Artificial Disc receives FDA approval for two-level cervical total disc replacement --

-- R&D investment increase year over year to advance spine procedural segments and enabling technology roadmap --

 

SAN DIEGO May 5, 2021 – 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, 2021.

 

First Quarter 2021 Highlights

 

Net sales increased 4.4% to $271.2 million, or 3.1% on a constant currency basis;

 

GAAP operating margin of 4.5%; Non-GAAP operating margin of 13.0%; and

 

GAAP diluted loss per share of $0.15; Non-GAAP diluted earnings per share of $0.37.

 

“NuVasive delivered year-over-year growth in the U.S. and international markets, and I am encouraged by the continued recovery of elective surgical procedures and momentum in the business,” said J. Christopher Barry, chief executive officer of NuVasive. “Our commitment to R&D investment furthers our ability to deliver the strongest innovation pipeline in spine that drives proceduralization across all spine segments. The positive surgeon feedback on NuVasive’s acquisition of Simplify Medical, the Simplify Disc’s recent FDA approval for two-level cervical total disc replacement, and the upcoming Pulse platform launch reinforces our dedication to outcome driven innovation that benefits the surgeon, provider, and—most importantly—the patient.”

 

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

 

First Quarter 2021 Results

NuVasive reported first quarter 2021 total net sales of $271.2 million, a 4.4% increase compared to $259.9 million for the first quarter 2020. On a constant currency basis, first quarter 2021 total net sales increased 3.1% compared to the same period last year. The increase in net sales was a result of month-over-month improvement in U.S. procedural volumes and low double-digit international growth on a reported basis as the impact of COVID-19 on elective surgeries continues to lessen.

 

For the first quarter 2021, GAAP and non-GAAP gross profit was $199.4 million and $199.6 million, respectively, and GAAP and non-GAAP gross margin was 73.5% and 73.6%, respectively. These results compared to GAAP and non-GAAP gross profit of $188.0 million and GAAP and non-GAAP gross margin of 72.3% for the first quarter 2020. GAAP and non-GAAP gross margin improvement was a result of the continued operational efficiencies gained throughout the NuVasive supply chain.

 

 


 

 

The Company reported GAAP net loss of $7.5 million, or diluted loss per share of $0.15, for the first quarter 2021 compared to GAAP net income of $5.3 million, or diluted earnings per share of $0.10, for the first quarter 2020. On a non-GAAP basis, the Company reported net income of $19.0 million, or diluted earnings per share of $0.37, for the first quarter 2021 compared to non-GAAP net income of $25.4 million, or diluted earnings per share of $0.48, for the first quarter 2020.

 

Cash, cash equivalents, and investments were $233.9 million as of March 31, 2021. Within the quarter, the Company retired $650 million of convertible debt at maturity and funded the $150 million upfront payment for the Simplify Medical acquisition utilizing cash on hand.  

 

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 gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP net income (loss), and non-GAAP diluted earnings (loss) per share. These non-GAAP financial measures exclude amortization of intangible assets, business transition costs, purchased in-process research and development, one-time restructuring, non-cash purchase accounting adjustments, certain foreign currency impacts and related items in connection with acquisitions, investments and divestitures, certain litigation expenses and settlements, certain European medical device regulation costs, gains and losses from strategic investments, gains and losses from changes in fair value of derivatives, non-cash interest expense (excluding debt issuance cost) and other significant one-time items. 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, non-cash purchase accounting adjustments, certain foreign currency impacts and related items in connection with acquisitions, investments and divestitures, certain litigation expenses and settlements, certain European medical device regulation costs, gains and losses on strategic investments, gains and losses from changes in fair value of derivatives 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, 2021

 

 

 

 

Reconciliation of GAAP to Non-GAAP Financial Measures

 

 

 

 

(Unaudited - in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

Operating Profit

 

Net (Loss) Income

 

Diluted EPS

 

Diluted WASO7

 

Net (Loss) to Adjusted EBITDA

 

 

 

 

Reported GAAP

$

199,438

 

$

12,339

 

$

(7,510

)

$

(0.15

)

 

51,379

 

$

(7,510

)

 

 

 

% of net sales

 

73.5

%

 

4.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash purchase accounting adjustments on acquisitions1

 

186

 

 

186

 

 

186

 

 

 

 

 

 

 

 

186

 

 

 

 

Amortization of intangible assets

 

 

 

 

13,337

 

 

13,337

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation related expenses and settlements2

 

 

 

 

1,961

 

 

1,961

 

 

 

 

 

 

 

 

1,961

 

 

 

 

Business transition costs3

 

 

 

 

5,584

 

 

5,584

 

 

 

 

 

 

 

 

5,584

 

 

 

 

European medical device regulation4

 

 

 

 

1,875

 

 

1,875

 

 

 

 

 

 

 

 

1,875

 

 

 

 

Non-cash acquisition-related foreign currency impacts5

 

 

 

 

 

 

 

9,848

 

 

 

 

 

 

 

 

9,848

 

 

 

 

Tax effect of adjustments6

 

 

 

 

 

 

 

(6,251

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense/(income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,943

 

 

 

 

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(620

)

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36,432

 

 

 

 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,709

 

 

 

 

Adjusted Non-GAAP

$

199,624

 

$

35,282

 

$

19,030

 

$

0.37

 

 

52,069

 

$

63,408

 

 

 

 

% of net sales

 

73.6

%

 

13.0

%

 

 

 

 

 

 

 

 

 

 

23.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized over the period in which underlying products are sold.

 

 

2

 

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

 

 

3

 

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.

 

 

4

 

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

 

 

5

 

Represents non-cash adjustments to acquisition-related intercompany balances and contingent consideration liabilities held in a foreign currency.

 

 

6

 

Represents the impact from tax affecting the adjustments above at their statutory tax rate.

 

 

7

 

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, 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 WASO5

 

Net Income to Adjusted EBITDA

 

 

 

 

Reported GAAP

$

188,016

 

$

28,319

 

$

5,298

 

$

0.10

 

 

53,727

 

$

5,298

 

 

 

 

% of net sales

 

72.3

%

 

10.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

12,649

 

 

12,649

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation related expenses and settlements1

 

 

 

 

3,103

 

 

3,103

 

 

 

 

 

 

 

 

3,103

 

 

 

 

Business transition costs2

 

 

 

 

(1,440

)

 

(1,440

)

 

 

 

 

 

 

 

(1,440

)

 

 

 

European medical device regulation3

 

 

 

 

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 adjustments4

 

 

 

 

 

 

 

(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 net sales

 

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.

 

 

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 2021. 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 5, 2021. In addition, a telephone replay of the call will be available until May 12, 2021. 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: 13718015.

 

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 surgical access instruments, spinal implants, fixation systems, biologics, software for surgical planning, navigation and imaging solutions, magnetically adjustable implant systems for spine and orthopedics, and intraoperative neuromonitoring technology and service offerings. With more than $1 billion in net sales, NuVasive has approximately 2,700 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 2021. The Company’s results for the first quarter 2021 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)

 

2021

 

 

2020

 

Net sales:

 

 

 

 

 

 

 

 

Products

 

$

245,451

 

 

$

234,687

 

Services

 

 

25,798

 

 

 

25,194

 

Total net sales

 

 

271,249

 

 

 

259,881

 

Cost of sales (excluding below amortization of intangible assets):

 

 

 

 

 

 

 

 

Products

 

 

53,302

 

 

 

51,645

 

Services

 

 

18,509

 

 

 

20,220

 

Total cost of sales

 

 

71,811

 

 

 

71,865

 

Gross profit

 

 

199,438

 

 

 

188,016

 

Operating expenses:

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

145,954

 

 

 

130,231

 

Research and development

 

 

22,224

 

 

 

18,257

 

Amortization of intangible assets

 

 

13,337

 

 

 

12,649

 

Business transition costs

 

 

5,584

 

 

 

(1,440

)

Total operating expenses

 

 

187,099

 

 

 

159,697

 

Interest and other expense, net:

 

 

 

 

 

 

 

 

Interest income

 

 

87

 

 

 

731

 

Interest expense

 

 

(8,030

)

 

 

(11,517

)

Other (expense) income, net

 

 

(12,526

)

 

 

(7,408

)

Total interest and other expense, net

 

 

(20,469

)

 

 

(18,194

)

(Loss) income before income taxes

 

 

(8,130

)

 

 

10,125

 

Income tax benefit (expense)

 

 

620

 

 

 

(4,827

)

Consolidated net (loss) income

 

$

(7,510

)

 

$

5,298

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.15

)

 

$

0.10

 

Diluted

 

$

(0.15

)

 

$

0.10

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

51,379

 

 

 

51,837

 

Diluted

 

 

51,379

 

 

 

53,727

 

 

 


 

 

NuVasive, Inc.

 

Consolidated Balance Sheets

 

(in thousands, except par value data)

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2021

 

 

December 31, 2020

 

ASSETS

 

(Unaudited)

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

233,857

 

 

$

856,869

 

Short-term marketable securities

 

 

 

 

 

173,145

 

Accounts receivable, net of allowances of $22,011 and $20,631, respectively

 

 

205,026

 

 

 

207,071

 

Inventory, net

 

 

315,749

 

 

 

300,623

 

Prepaid income taxes

 

 

5,033

 

 

 

4,727

 

Prepaid expenses and other current assets

 

 

21,895

 

 

 

19,749

 

Total current assets

 

 

781,560

 

 

 

1,562,184

 

Property and equipment, net

 

 

286,156

 

 

 

286,369

 

Intangible assets, net

 

 

296,514

 

 

 

152,264

 

Goodwill

 

 

636,422

 

 

 

559,553

 

Operating lease right-of-use assets

 

 

101,980

 

 

 

102,270

 

Deferred tax assets

 

 

47,301

 

 

 

15,755

 

Restricted cash and investments

 

 

1,494

 

 

 

1,494

 

Other assets

 

 

13,358

 

 

 

13,193

 

Total assets

 

$

2,164,785

 

 

$

2,693,082

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

106,576

 

 

$

110,401

 

Contingent consideration liabilities

 

 

50,166

 

 

 

7,289

 

Accrued payroll and related expenses

 

 

58,620

 

 

 

63,421

 

Operating lease liabilities

 

 

8,288

 

 

 

7,875

 

Income tax liabilities

 

 

1,226

 

 

 

2,073

 

Senior convertible notes

 

 

 

 

 

645,303

 

Total current liabilities

 

 

224,876

 

 

 

836,362

 

Long-term senior convertible notes

 

 

879,473

 

 

 

766,226

 

Deferred tax liabilities

 

 

3,042

 

 

 

2,807

 

Operating lease liabilities

 

 

111,200

 

 

 

111,634

 

Contingent consideration liabilities

 

 

91,000

 

 

 

29,752

 

Other long-term liabilities

 

 

19,807

 

 

 

22,686

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Redeemable equity component of senior convertible notes

 

 

 

 

 

4,697

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

Common stock, $0.001 par value; 150,000 shares authorized at March 31, 2021 and December 31, 2020; 57,949 shares issued and 51,379 outstanding at March 31, 2021; 57,945 shares issued and 51,376 outstanding at December 31, 2020

 

 

62

 

 

 

62

 

Additional paid-in capital

 

 

1,411,170

 

 

 

1,550,001

 

Accumulated other comprehensive loss

 

 

(9,139

)

 

 

(7,585

)

Retained earnings

 

 

102,284

 

 

 

45,322

 

Treasury stock at cost; 6,570 shares and 6,569 shares at March 31, 2021 and December 31, 2020, respectively

 

 

(668,990

)

 

 

(668,882

)

Total equity

 

 

835,387

 

 

 

918,918

 

Total liabilities and equity

 

$

2,164,785

 

 

$

2,693,082

 


 

 

 

NuVasive, Inc.

 

Consolidated Statements of Cash Flows

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

(unaudited)

 

2021

 

 

2020

 

Operating activities:

 

 

 

 

 

 

 

 

Consolidated net (loss) income

 

$

(7,510

)

 

$

5,298

 

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

36,432

 

 

 

34,972

 

Amortization of non-cash interest

 

 

2,660

 

 

 

7,143

 

Stock-based compensation

 

 

7,709

 

 

 

(2,858

)

Reserves on current assets

 

 

4,002

 

 

 

5,232

 

Net loss on strategic investments

 

 

 

 

 

1,411

 

Net loss from foreign currency adjustments

 

 

12,547

 

 

 

5,858

 

Other non-cash adjustments

 

 

6,397

 

 

 

(455

)

Deferred income taxes

 

 

(3,535

)

 

 

9,105

 

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

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(1,544

)

 

 

22,409

 

Inventory

 

 

(12,464

)

 

 

(21,135

)

Prepaid expenses and other current assets

 

 

(2,057

)

 

 

(2,042

)

Accounts payable and accrued liabilities

 

 

(5,663

)

 

 

(5,271

)

Accrued payroll and related expenses

 

 

(4,271

)

 

 

(45,927

)

Income taxes

 

 

(1,064

)

 

 

(8,515

)

Net cash provided by operating activities

 

 

31,639

 

 

 

5,225

 

Investing activities:

 

 

 

 

 

 

 

 

Acquisition of Simplify Medical, net of cash acquired

 

 

(149,408

)

 

 

 

Purchases of intangible assets

 

 

(1,200

)

 

 

(2,490

)

Purchases of property and equipment

 

 

(25,070

)

 

 

(28,116

)

Proceeds from sales and maturities of marketable securities

 

 

173,023

 

 

 

 

Net cash used in investing activities

 

 

(2,655

)

 

 

(30,606

)

Financing activities:

 

 

 

 

 

 

 

 

Purchases of treasury stock

 

 

(55

)

 

 

(78,818

)

Payment of contingent consideration

 

 

(3

)

 

 

(346

)

Proceeds from issuance of convertible debt, net of issuance costs

 

 

 

 

 

437,686

 

Proceeds from sale of warrants

 

 

 

 

 

47,070

 

Purchases of convertible note hedges

 

 

 

 

 

(78,300

)

Payments upon settlement of senior convertible notes

 

 

(649,426

)

 

 

 

Other financing activities

 

 

(341

)

 

 

(1,233

)

Net cash (used in) provided by financing activities

 

 

(649,825

)

 

 

326,059

 

Effect of exchange rate changes on cash

 

 

(2,171

)

 

 

(1,736

)

(Decrease) increase in cash, cash equivalents and restricted cash

 

 

(623,012

)

 

 

298,942

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

858,363

 

 

 

214,528

 

Cash, cash equivalents and restricted cash at end of period

 

$

235,351

 

 

$

513,470

 



 

 

###

 

 

  Investor Contact:  

investorrelations@nuvasive.com

 

Media Contact:

Amanda Rocha

NuVasive, Inc.

858-882-5062

media@nuvasive.com