- Worldwide revenue of $54.0 million – an
increase of 14.8% year over year
- U.S. revenue of $43.0 million – an
increase of 11.9% year over year
- International revenue of $11.0 million
– an increase of 28.1% year over year
AtriCure, Inc. (Nasdaq: ATRC), a leading innovator in treatments
for atrial fibrillation (Afib) and left atrial appendage (LAA)
management, today announced first quarter 2019 financial
results.
“We had a good start to the year fueled by solid performance
across our business in the first quarter,” said Mike Carrel,
President and Chief Executive Officer of AtriCure. “With
outstanding Appendage Management performance, combined with the
cryoSPHERETM probe launch for peripheral nerve block, and the vast
under-penetration of concomitant ablation in all types of major
cardiac surgery, we remain confident that we are well positioned
for consistently strong performance.”
First Quarter 2019 Financial
Results
Revenue for the first quarter of 2019 was $54.0 million, an
increase of $7.0 million or 14.8% (16.0% on a constant currency
basis), compared to first quarter 2018 revenue. U.S. revenue
increased 11.9% to $43.0 million, driven by increased sales of
ablation-related open-heart products and appendage management
products. International revenue was $11.0 million, an increase of
$2.4 million or 28.1% (an increase of 34.4% on a constant currency
basis), compared to first quarter 2018 revenue, driven primarily by
an increase in Asia and certain European markets. A discussion of
non-GAAP financial measures and reconciliations regarding non-GAAP
financial measures to their respective GAAP financial measures are
provided later in this release.
Gross profit for the first quarter of 2019 was $40.0 million
compared to $34.5 million for the first quarter of 2018. Gross
margin for the first quarter of 2019 increased to 73.9% compared to
73.4% in the first quarter of 2018, driven primarily by
improvements to operations and lower costs.
Loss from operations for the first quarter of 2019 was $5.3
million, compared to $9.4 million for the first quarter of 2018.
Net loss per share was $0.15 for the first quarter of 2019 compared
to $0.31 for the first quarter of 2018.
Adjusted EBITDA was a loss of $0.6 million for the first quarter
of 2019 and $3.3 million for the first quarter of 2018. Adjusted
loss per share for Q1 2019 was $0.20 compared to an adjusted loss
per share of $0.31 for 2018. Adjusted EBITDA and adjusted loss per
share are non-GAAP measures.
2019 Financial Guidance
Management is updating revenue guidance for 2019 to a range of
$222 million to $228 million, corresponding to growth of 10% to 13%
for the year, and maintaining expectations for positive full-year
adjusted EBITDA between $0 and $3 million.
Conference Call
AtriCure will host a conference call at 4:30 p.m. Eastern Time
on Thursday, April 25, 2019 to discuss its first quarter 2019
financial results. The call may be accessed through an operator by
calling (844) 884-9951 for domestic callers and (661) 378-9661 for
international callers using conference ID number 4590275. A live
audio webcast of the presentation may be accessed by visiting the
Investors page of AtriCure’s corporate website at ir.atricure.com.
A replay of the presentation will be available for 90 days
following the presentation.
About AtriCure
AtriCure, Inc. provides innovative technologies for the
treatment of Afib and related conditions. Afib affects more than 33
million people worldwide. Electrophysiologists and cardiothoracic
surgeons around the globe use AtriCure technologies for the
treatment of Afib and reduction of Afib related complications.
AtriCure’s Isolator® Synergy™ Ablation System is the first and only
medical device to receive FDA approval for the treatment of
persistent Afib. AtriCure’s AtriClip Left Atrial Appendage
Exclusion System products are the most widely sold LAA management
devices worldwide. For more information, visit AtriCure.com or
follow us on Twitter @AtriCure.
Forward-Looking
Statements
This press release contains “forward-looking statements”– that
is, statements related to future events that by their nature
address matters that are uncertain. For details on the
uncertainties that may cause our actual results to be materially
different than those expressed in our forward-looking statements,
visit http://www.atricure.com/fls as
well as our Annual Reports on Form 10-K and Quarterly Reports on
Form 10-Q which contain risk factors. We do not undertake to
update our forward-looking statements. This document also includes
forward-looking projected financial information that is based on
current estimates and forecasts. Actual results could differ
materially.
Use of Non-GAAP Financial
Measures
To supplement AtriCure’s condensed consolidated financial
statements prepared in accordance with accounting principles
generally accepted in the United States of America, or GAAP,
AtriCure uses certain non-GAAP financial measures in this release
as supplemental financial metrics.
Revenue reported on a constant currency basis is a non-GAAP
measure and is calculated by applying previous period foreign
currency exchange rates, which are determined by the average daily
Euro to Dollar exchange rate, to each of the comparable periods.
Management analyzes revenue on a constant currency basis to better
measure the comparability of results between periods. Because
changes in foreign currency exchange rates have a non-operating
impact on revenue, the Company believes that evaluating growth in
revenue on a constant currency basis provides an additional and
meaningful assessment of revenue to both management and the
company’s investors.
Adjusted EBITDA provides an indication of performance excluding
certain items. Management believes that in order to properly
understand short-term and long-term financial trends, investors may
wish to consider the impact of these excluded items in addition to
GAAP measures. The excluded items vary in frequency and/or impact
on our continuing operations and management believes that the
excluded items are typically not reflective of our ongoing core
business operations. Further, management uses adjusted EBITDA for
its strategic planning. A reconciliation of adjusted EBITDA
reported in this release to the most comparable GAAP measure for
the respective periods can be found in a table later in this
release.
Adjusted loss per share is a non-GAAP measure which calculates
the net loss per share before non-cash adjustments to expenses
related to the adjustment in value of contingent consideration
liability. Management believes this metric provides a better
measure of comparability of results between periods, as such
adjustments are not frequent in nature or similar in value and can
be significant. A reconciliation of adjusted loss per share
reported in this release to the most comparable GAAP measure for
the respective periods can be found in a table later in this
release.
The non-GAAP financial measures used by AtriCure may not be the
same or calculated the same as those used by other companies.
Non-GAAP financial measures have limitations as analytical tools
and should not be considered in isolation or as a substitute for
AtriCure’s financial results prepared and reported in accordance
with GAAP.
ATRICURE, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except
Per Share Amounts) (Unaudited) Three Months
Ended March 31, 2019 2018 United States Revenue:
Open-heart ablation $ 18,996 $ 17,579 Minimally invasive ablation
7,762 8,613 Appendage management 15,670 11,797
Total ablation and appendage management 42,428 37,989 Valve
tools 576 447 Total United States
43,004 38,436 International Revenue: Open-heart ablation 6,300
4,909 Minimally invasive ablation 2,129 1,792 Appendage management
2,454 1,798 Total ablation and
appendage management 10,883 8,499 Valve tools 79
59 Total international 10,962 8,558 Total revenue
53,966 46,994 Cost of revenue 14,095 12,491
Gross profit 39,871 34,503 Operating expenses: Research and
development expenses 8,176 9,057 Selling, general and
administrative expenses 37,015 34,876
Total operating expenses 45,191 43,933
Loss from operations (5,320 ) (9,430 ) Other expense, net
(249 ) (656 ) Loss before income tax expense (5,569 )
(10,086 ) Income tax expense 66 48 Net loss $ (5,635 ) $ (10,134 )
Basic and diluted net loss per share $ (0.15 ) $ (0.31 ) Weighted
average shares used in computing net loss per share: Basic and
diluted 36,976 32,926
ATRICURE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED
BALANCE SHEETS (In Thousands) (Unaudited)
March 31, December 31, 2019 2018
Assets Current assets: Cash, cash equivalents, and
short-term investments $ 100,630 $ 124,402 Accounts receivable, net
26,662 25,195 Inventories 24,122 22,484 Prepaid and other current
assets 3,605 2,592 Total current assets
155,019 174,673 Property and equipment, net 27,050 27,080 Operating
lease right-of-use assets 1,778 — Goodwill and intangible assets,
net 154,027 154,511 Other noncurrent assets 486
495 Total assets $ 338,360 $ 356,759
Liabilities and Stockholders' Equity Current liabilities:
Accounts payable and accrued liabilities $ 27,426 $ 35,499 Other
current liabilities and current maturities of debt and leases
8,039 4,717 Total current liabilities
35,465 40,216 Finance lease liabilities 12,004 12,172 Long-term
debt 32,737 35,571 Operating lease liabilities 1,338 — Other
noncurrent liabilities 17,524 19,419
Total liabilities 99,068 107,378 Stockholders' equity: Common stock
39 39 Additional paid-in capital 492,177 496,544 Accumulated other
comprehensive (loss) income (286 ) (199 ) Accumulated deficit
(252,638 ) (247,003 ) Total stockholders' equity
239,292 249,381 Total liabilities and
stockholders' equity $ 338,360 $ 356,759
ATRICURE, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands)
(Unaudited) Three Months Ended March 31,
2019 2018 Cash flows from operating activities: Net
loss $ (5,635 ) $ (10,134 ) Adjustments to reconcile net loss to
net cash used in operating activities: Share-based compensation
expense 4,154 3,890 Depreciation and amortization of intangible
assets 2,228 2,199 Amortization of deferred financing costs 55 93
Non-cash lease expense 103 — Loss (gain) on disposal of property
and equipment and impairment of assets 261 (5 ) Realized (gain)
loss from foreign exchange on intercompany transactions 72 (82 )
Accretion of investments (391 ) (15 ) Provision for allowance for
doubtful accounts — 51 Change in fair value of contingent
consideration (1,667 ) — Changes in operating assets and
liabilities: Accounts receivable (1,547 ) 783 Inventories (1,699 )
(43 ) Other current assets (1,023 ) (1,540 ) Accounts payable and
accrued liabilities (8,214 ) (4,652 ) Other noncurrent assets and
liabilities (135 ) 21 Net cash used in
operating activities (13,438 ) (9,434 ) Cash flows from investing
activities: Purchases of available-for-sale securities (2,947 )
(10,359 ) Sales and maturities of available-for-sale securities
15,665 8,200 Purchases of property and equipment (1,709 ) (2,086 )
Proceeds from sale of property and equipment 8
— Net cash provided by (used in) investing activities 11,017
(4,245 ) Cash flows from financing activities: Proceeds from debt
borrowings — 17,381 Payments on debt and capital leases (150 )
(1,326 ) Payment of debt fees (299 ) (1,114 ) Proceeds from stock
option exercises 80 1,787 Shares repurchased for payment of taxes
on stock awards (8,601 ) (3,665 ) Net cash (used in)
provided by financing activities (8,970 ) 13,063 Effect of exchange
rate changes on cash and cash equivalents (120 ) 36
Net decrease in cash and cash equivalents (11,511 ) (580 )
Cash and cash equivalents - beginning of period 32,231
21,809 Cash and cash equivalents - end of
period $ 20,720 $ 21,229
Reconciliation of Non-GAAP Adjusted Income (Loss) (Adjusted
EBITDA) Three Months Ended March 31, 2019
2018 Net loss, as reported $ (5,635 ) $ (10,134 ) Income tax
expense 66 48 Other expense, net 249 656 Depreciation and
amortization expense 2,228 2,199 Share-based compensation expense
4,154 3,890 Contingent consideration adjustment (1,667 )
— Non-GAAP adjusted income (loss) (adjusted EBITDA) $
(605 ) $ (3,341 )
Reconciliation of Non-GAAP
Adjusted Loss Per Share Three Months Ended March
31, 2019 2018 Net loss, as reported $ (5,635) $
(10,134) Contingent consideration adjustment (1,667)
— Net loss excluding contingent consideration adjustment $ (7,302)
$ (10,134) Basic and diluted adjusted net loss per share $ (0.20) $
(0.31) Weighted average shares used in computing adjusted net loss
per share Basic and diluted
36,976 32,926
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190425005828/en/
Andy WadeAtriCure, Inc.Senior Vice President and Chief Financial
Officer(513) 755-4564awade@atricure.com
Lynn Pieper LewisGilmartin GroupInvestor Relations(415)
937-5402lynn@gilmartinir.com
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