AtriCure, Inc. ATRC, a leading Atrial Fibrillation medical device provider, today announced financial results for the third quarter of 2013.
“We are pleased with our performance in the third quarter. Our results reflect our third consecutive quarter of double digit year over year revenue growth, driven by overall strength and our U.S. business which was up 28% versus the prior year. We are seeing the results of our training and education efforts in capturing market share, and we are gaining momentum with the AtriClip,” said Mike Carrel, President and Chief Executive Officer of AtriCure. “Based on continued strength across all of our product lines, we are updating our outlook for 2013 to reflect anticipated revenue growth of 14% from 2012.”
Third Quarter 2013 Financial Results
Revenue
for the third quarter of 2013 was $20.1 million, an increase of $4.0
million or 24.8% (24.0% on a constant currency basis), compared to third
quarter 2012 revenue. Domestic revenue increased 28.1% to $15.8 million,
driven by strong sales of ablation-related open-heart products and
AtriClip products. International revenue was $4.3 million, an increase
of $0.5 million or 14.2% (10.8% on a constant currency basis) when
compared to $3.8 million for the third quarter of 2012. International
revenue growth was driven primarily by increased sales to direct
customers and certain distributors.
Gross profit for the third quarter of 2013 was $14.7 million compared to $11.5 million for the third quarter of 2012. Gross margin for the third quarter of 2013 and 2012 was 72.9% and 71.6%, respectively. The increase in gross margin was due primarily to volume-driven leverage of manufacturing overhead expenses, a higher mix of domestic sales and the strong performance of the new AtriClip Pro product.
Operating expenses for the third quarter of 2013 increased 22.9%, or $3.2 million, compared to the third quarter of 2012. The increase in operating expenses was driven primarily by an increase in selling, marketing and training expenses.
Loss from operations for the third quarter of 2013 was $2.6 million compared to $2.5 million for the third quarter of 2012. Net loss per share was $0.13 for the third quarter of 2013 and $0.16 for the third quarter of 2012.
Cash, cash equivalents and investments were $34.4 million at September 30, 2013 and cash provided by operations during the third quarter of 2013 was $0.7 million.
2013 Guidance
Management
projects that 2013 revenue will be approximately $80.0 million, an
increase of 14% from 2012. This compares to the previous outlook for
2013 revenue in the range of $77.0 - $78.5 million, an increase of 10% -
12% from 2012.
Adjusted EBITDA, a non-GAAP measure, is projected to be a loss in the range of $4.5 to $5.5 million including the impact of the medical device excise tax which is estimated to be in the range of $0.6 - $0.8 million for 2013. Management expects to continue making investments targeted at future revenue growth.
Conference Call
AtriCure will
host a conference call at 4:30 p.m. Eastern Time on Tuesday, October 29,
2013 to discuss its third quarter 2013 financial results. A live webcast
of the conference call will be available online from the investor
relations page of AtriCure's corporate website at www.atricure.com.
You may also access this call through an operator by calling (888) 713-4211 for domestic callers and (617) 213-4864 for international callers at least 15 minutes prior to the call start time using reservation code 83850169.
The webcast will be available on AtriCure's website and a telephonic replay of the call will also be available through November 29, 2013. The replay dial-in numbers are (888) 286-8010 for domestic callers and (617) 801-6888 for international callers. The reservation code is 29085641.
About AtriCure, Inc.
AtriCure,
Inc. is a leading atrial fibrillation solutions partner, providing
innovative products, professional education and support for clinical
science to reduce the economic and social burden of atrial fibrillation.
AtriCure's Synergy Ablation System is the first and only device approved
by the Food and Drug Administration (FDA) for the surgical treatment of
Persistent and Longstanding Persistent forms of Afib in patients
undergoing certain open heart procedures concomitantly (simultaneously).
AtriCure's AtriClip™ Left Atrial Appendage (LAA) occlusion device is the
most widely implanted device for LAA management worldwide. Afib affects
more than two million people worldwide and is estimated to cost more
than $6.5 billion annually in healthcare expenses. The number affected
by Afib is expected to grow to 12 million by 2050.
Forward-Looking Statements
This
press release contains “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements include statements that address activities, events or
developments that AtriCure expects, believes or anticipates will or may
occur in the future, such as earnings estimates (including projections
and guidance), other predictions of financial performance, launches by
AtriCure of new products and market acceptance of AtriCure's products.
Forward-looking statements are based on AtriCure's experience and
perception of current conditions, trends, expected future developments
and other factors it believes are appropriate under the circumstances
and are subject to numerous risks and uncertainties, many of which are
beyond AtriCure's control. These risks and uncertainties include the
rate and degree of market acceptance of AtriCure's products, AtriCure's
ability to develop and market new and enhanced products, the timing of
and ability to obtain and maintain regulatory clearances and approvals
for its products, the timing of and ability to obtain reimbursement of
procedures utilizing AtriCure's products, competition from existing and
new products and procedures or AtriCure's ability to effectively react
to other risks and uncertainties described from time to time in
AtriCure's SEC filings, such as fluctuation of quarterly financial
results, reliance on third party manufacturers and suppliers, litigation
or other proceedings, government regulation and stock price volatility.
AtriCure does not guarantee any forward-looking statement, and actual
results may differ materially from those projected. AtriCure undertakes
no obligation to publicly update any forward-looking statement, whether
as a result of new information, future events or otherwise. A further
list and description of risks, uncertainties and other matters can be
found in our Annual Reports on Form 10-K and Quarterly Reports on Form
10-Q.
Use of Non-GAAP Financial Measures
To
supplement AtriCure's condensed consolidated financial statements
prepared in accordance with U.S. generally accepted accounting
principles, or GAAP, AtriCure uses certain non-GAAP financial measures
in this release as supplemental financial metrics. Non-GAAP financial
measures provide an indication of performance excluding certain items.
Our 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 our management believes that the excluded items are
typically not reflective of our ongoing core business operations.
Further, management uses results of operations before these excluded
items as a basis for its strategic planning. The non-GAAP financial
measures used by AtriCure may not be the same or calculated the same as
those used by other companies. Reconciliations of the non-GAAP financial
measures used in this release to the most comparable GAAP measures for
the respective periods can be found in tables later in this release.
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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Revenue: | ||||||||||||||||||||
Open-heart | $ | 9,637 | $ | 7,656 | $ | 27,912 | $ | 24,529 | ||||||||||||
Minimally invasive | 3,486 | 3,112 | 10,129 | 9,324 | ||||||||||||||||
AtriClip | 2,709 | 1,593 | 7,884 | 5,113 | ||||||||||||||||
Total United States | 15,832 | 12,361 | 45,925 | 38,966 | ||||||||||||||||
International | 4,314 | 3,778 | 14,080 | 12,917 | ||||||||||||||||
Total revenue | 20,146 | 16,139 | 60,005 | 51,883 | ||||||||||||||||
Cost of revenue | 5,461 | 4,590 | 16,111 | 14,871 | ||||||||||||||||
Gross profit | 14,685 | 11,549 | 43,894 | 37,012 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development expenses | 3,237 | 2,905 | 9,792 | 9,180 | ||||||||||||||||
Selling, general and administrative expenses | 14,062 | 11,173 | 40,155 | 33,178 | ||||||||||||||||
Total operating expenses | 17,299 | 14,078 | 49,947 | 42,358 | ||||||||||||||||
Loss from operations | (2,614 | ) | (2,529 | ) | (6,053 | ) | (5,346 | ) | ||||||||||||
Other expense | (130 | ) | (27 | ) | (415 | ) | (148 | ) | ||||||||||||
Loss before income tax expense | (2,744 | ) | (2,556 | ) | (6,468 | ) | (5,494 | ) | ||||||||||||
Income tax expense | (4 | ) | (11 | ) | (14 | ) | (20 | ) | ||||||||||||
Net loss | $ | (2,748 | ) | $ | (2,567 | ) | $ | (6,482 | ) | $ | (5,514 | ) | ||||||||
Basic and diluted net loss per share | $ | (0.13 | ) | $ | (0.16 | ) | $ | (0.32 | ) | $ | (0.34 | ) | ||||||||
Weighted average shares used in computing net loss per common share: |
||||||||||||||||||||
Basic and diluted | 20,725 | 16,278 | 20,311 | 16,143 | ||||||||||||||||
ATRICURE, INC. AND SUBSIDIARIES | ||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(In Thousands, Except Per Share Amounts) | ||||||||||||
(Unaudited) | ||||||||||||
September 30, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash, cash equivalents and short-term investments | $ | 29,685 | $ | 12,000 | ||||||||
Accounts receivable, net | 11,031 | 9,948 | ||||||||||
Inventories | 7,062 | 5,718 | ||||||||||
Other current assets | 779 | 873 | ||||||||||
Total current assets | 48,557 | 28,539 | ||||||||||
Property and equipment, net | 4,135 | 3,430 | ||||||||||
Intangible assets | 23 | 32 | ||||||||||
Long-term investments | 4,678 | - | ||||||||||
Other assets | 244 | 430 | ||||||||||
Total assets | $ | 57,637 | $ | 32,431 | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable and accrued liabilities | $ | 14,238 | $ | 10,176 | ||||||||
Current maturities of long-term debt and capital lease obligations | 2,037 | 2,029 | ||||||||||
Total current liabilities | 16,275 | 12,205 | ||||||||||
Long-term debt and capital lease obligations | 4,922 | 6,407 | ||||||||||
Other liabilities | 195 | 1,319 | ||||||||||
Total liabilities | 21,392 | 19,931 | ||||||||||
Stockholders' equity: | ||||||||||||
Common stock | 21 | 17 | ||||||||||
Additional paid-in capital | 153,420 | 123,157 | ||||||||||
Other comprehensive income | 37 | 77 | ||||||||||
Accumulated deficit | (117,233 | ) | (110,751 | ) | ||||||||
Total stockholders' equity | 36,245 | 12,500 | ||||||||||
Total liabilities and stockholders' equity | $ | 57,637 | $ | 32,431 | ||||||||
ATRICURE, INC. AND SUBSIDIARIES | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(In Thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | |||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (6,482 | ) | $ | (5,514 | ) | ||||||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||||||
Share-based compensation expense | 2,072 | 2,941 | ||||||||||
Depreciation and amortization of intangible assets | 1,465 | 1,520 | ||||||||||
Amortization of deferred financing costs | 69 | 81 | ||||||||||
Loss (gain) on disposal of equipment | 30 | (12 | ) | |||||||||
Amortization/accretion on investments | (4 | ) | 16 | |||||||||
Change in allowance for doubtful accounts | (14 | ) | (21 | ) | ||||||||
Changes in assets and liabilities | ||||||||||||
Accounts receivable | (1,049 | ) | 125 | |||||||||
Inventories | (1,313 | ) | (319 | ) | ||||||||
Other current assets | 117 | 122 | ||||||||||
Accounts payable and accrued liabilities | 2,744 | (510 | ) | |||||||||
Other non-current assets and liabilities | 207 | (174 | ) | |||||||||
Net cash used in operating activities | (2,158 | ) | (1,745 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of available-for-sale securities | (9,186 | ) | (8,538 | ) | ||||||||
Maturities of available-for-sale securities | 4,900 | 8,100 | ||||||||||
Purchases of property and equipment | (1,930 | ) | (2,372 | ) | ||||||||
Net proceeds from the sale of equipment | 2 | 24 | ||||||||||
Net cash used in investing activities | (6,214 | ) | (2,786 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||
Net proceeds from sale of stock | 26,872 | - | ||||||||||
Proceeds from debt borrowings | - | 10,000 | ||||||||||
Payments on debt and capital leases | (1,547 | ) | (7,568 | ) | ||||||||
Payment of debt fees | (99 | ) | (78 | ) | ||||||||
Proceeds from stock option exercises | 1,277 | 562 | ||||||||||
Shares repurchased for payment of taxes on stock awards | (279 | ) | (372 | ) | ||||||||
Proceeds from issuance of common stock under employee stock purchase plan |
326 | 372 | ||||||||||
Net cash provided by financing activities | 26,550 | 2,916 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | (110 | ) | 59 | |||||||||
Net increase (decrease) in cash and cash equivalents | 18,068 | (1,556 | ) | |||||||||
Cash and cash equivalents - beginning of period | 7,753 | 9,759 | ||||||||||
Cash and cash equivalents - end of period | $ | 25,821 | $ | 8,203 | ||||||||
ATRICURE, INC. AND SUBSIDIARIES | ||||||||||||||||||||
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS | ||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Reconciliation of Non-GAAP Adjusted Loss (Adjusted EBITDA) | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Net loss, as reported | $ | (2,748 | ) | $ | (2,567 | ) | $ | (6,482 | ) | $ | (5,514 | ) | ||||||||
Income tax expense | 4 | 11 | 14 | 20 | ||||||||||||||||
Other expense (a) | 130 | 27 | 415 | 148 | ||||||||||||||||
Depreciation and amortization expense | 508 | 467 | 1,465 | 1,520 | ||||||||||||||||
Share-based compensation expense | 734 | 1,111 | 2,072 | 2,941 | ||||||||||||||||
Non-GAAP adjusted loss (adjusted EBITDA) | $ | (1,372 | ) | $ | (951 | ) | $ | (2,516 | ) | $ | (885 | ) | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
(a) Other includes: | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Net interest expense | $ | (121 | ) | $ | (187 | ) | $ | (420 | ) | $ | (609 | ) | ||||||||
Grant income | - | 117 | - | 379 | ||||||||||||||||
Gain (loss) due to exchange rate fluctuation | 17 | (42 | ) | 73 | (77 | ) | ||||||||||||||
Non-employee stock option (expense) income | (26 | ) | 85 | (68 | ) | 159 | ||||||||||||||
Other expense | $ | (130 | ) | $ | (27 | ) | $ | (415 | ) | $ | (148 | ) | ||||||||
AtriCure, Inc.
Andy Wade, 513-755-4564
Vice President
and Chief Financial Officer
awade@atricure.com
or
Investor
Relations Contact
Westwicke Partners
Lynn Pieper,
415-202-5678
lynn.pieper@westwicke.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.