- Worldwide revenue of $53.2 million – a decrease of 1.4% year
over year
- U.S. revenue of $43.5 million – an increase of 1.1% year over
year
- International revenue of $9.8 million – a decrease of 11.0%
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 2020 financial
results.
“I want to extend gratitude to our partners in the healthcare
community, all of whom are taking extraordinary efforts to care for
both COVID and non-COVID patients in these difficult times. As the
world continues to navigate the pandemic, we have positioned our
business to mitigate disruption and remain committed to supporting
our people, patients, customers and communities,” said Michael
Carrel, President and Chief Executive Officer of AtriCure. “We have
built a great foundation strategically, financially and
operationally that will guide us to long-term growth.”
First Quarter 2020 Financial
Results
Revenue for the first quarter of 2020 was $53.2 million, a
decrease of $0.7 million or 1.4% (a decrease of 1.0% on a constant
currency basis), compared to first quarter 2019 revenue. U.S.
revenue increased 1.1% to $43.5 million, driven by increased sales
of appendage management products and offset by a decline in
minimally invasive ablation product sales. International revenue
was $9.8 million, a decrease of $1.2 million or 11.0% (a decrease
of 9.4% on a constant currency basis), compared to first quarter
2019 revenue.
Gross profit for the first quarter of 2020 was $38.9 million
compared to $40.0 million for the first quarter of 2019. Gross
margin for the first quarter of 2020 decreased to 73.1% compared to
73.9% in the first quarter of 2019.
Loss from operations for the first quarter of 2020 was $15.5
million, compared to $5.3 million for the first quarter of 2019.
Net loss per share was $0.42 for the first quarter of 2020 compared
to $0.15 for the first quarter of 2019.
Adjusted EBITDA was a loss of $6.1 million for the first quarter
of 2020 compared to a loss of $0.5 million for the first quarter of
2019. Adjusted loss per share for the first quarter of 2020 was
$0.36 compared to an adjusted loss per share of $0.20 for the first
quarter of 2019. Constant currency revenue, adjusted EBITDA and
adjusted loss per share are non-GAAP measures.
2020 Financial Guidance
As previously reported on April 9, 2020, due to the continued
uncertainties from the impact of COVID-19, AtriCure has withdrawn
its previously announced 2020 financial guidance that was issued on
February 18, 2020.
Conference Call
AtriCure will host a conference call at 4:30 p.m. Eastern Time
on Wednesday, April 29, 2020 to discuss its first quarter 2020
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 56266778. 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 is calculated as Net loss before other
income/expense (including interest), income tax expense,
depreciation and amortization expense, share-based compensation
expense, acquisition costs, and change in fair value of contingent
consideration liabilities. Management believes in order to properly
understand the 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 results of operations and management
believes that the excluded items are typically not reflective of
our ongoing core business operations and financial condition.
Further, management uses adjusted EBITDA for both strategic and
annual operating planning, and previously used adjusted EBITDA as a
performance metric in the annual incentive plan. A reconciliation
of adjusted EBITDA reported in this release to the most comparable
GAAP measure for the respective periods can be found in the table
captioned “Reconciliation of Non-GAAP Adjusted Income (Loss)
(Adjusted EBITDA)” 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
liabilities. Management believes this metric provides a better
measure of comparability of results between periods, as such
adjustments can be significant and vary in value and are not
reflective of our core business. 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 the table
captioned “Reconciliation of Non-GAAP Adjusted Loss Per Share”
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,
2020
2019
United States Revenue:
Open ablation
$
19,218
$
18,996
Minimally invasive ablation
6,561
7,762
Appendage management
17,419
15,670
Total ablation and appendage
management
43,198
42,428
Valve tools
275
576
Total United States
43,473
43,004
International Revenue:
Open ablation
5,115
6,300
Minimally invasive ablation
1,545
2,129
Appendage management
3,062
2,454
Total ablation and appendage
management
9,722
10,883
Valve tools
30
79
Total international
9,752
10,962
Total revenue
53,225
53,966
Cost of revenue
14,341
14,095
Gross profit
38,884
39,871
Operating expenses:
Research and development expenses
11,587
8,176
Selling, general and administrative
expenses
42,751
37,015
Total operating expenses
54,338
45,191
Loss from operations
(15,454
)
(5,320
)
Other expense, net
(946
)
(249
)
Loss before income tax expense
(16,400
)
(5,569
)
Income tax expense
8
66
Net loss
$
(16,408
)
$
(5,635
)
Basic and diluted net loss per share
$
(0.42
)
$
(0.15
)
Weighted average shares used in computing
net loss per share:
Basic and diluted
38,671
36,976
ATRICURE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In Thousands)
(Unaudited)
March 31,
December 31,
2020
2019
Assets
Current assets:
Cash, cash equivalents, and short-term
investments
$
68,537
$
81,801
Accounts receivable, net
22,131
28,046
Inventories
32,063
29,414
Prepaid and other current assets
4,293
3,899
Total current assets
127,024
143,160
Property and equipment, net
32,324
32,646
Operating lease right-of-use assets
3,739
4,032
Long-term investments
—
12,675
Goodwill and intangible assets, net
364,173
364,662
Other noncurrent assets
474
705
Total assets
$
527,734
$
557,880
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable and accrued
liabilities
$
35,457
$
47,698
Other current liabilities and current
maturities of debt and leases
3,614
2,218
Total current liabilities
39,071
49,916
Long-term debt
58,323
59,634
Finance lease liabilities
11,577
11,774
Operating lease liabilities
2,526
2,796
Contingent consideration and other
noncurrent liabilities
188,871
186,417
Total liabilities
300,368
310,537
Stockholders' equity:
Common stock
40
40
Additional paid-in capital
526,302
529,658
Accumulated other comprehensive loss
(371
)
(158
)
Accumulated deficit
(298,605
)
(282,197
)
Total stockholders' equity
227,366
247,343
Total liabilities and stockholders'
equity
$
527,734
$
557,880
ATRICURE, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP RESULTS
TO NON-GAAP RESULTS
(In Thousands)
(Unaudited)
Reconciliation of Non-GAAP Adjusted
Income (Loss) (Adjusted EBITDA)
Three Months Ended March
31,
2020
2019
Net loss, as reported
$
(16,408
)
$
(5,635
)
Income tax expense
8
66
Other expense, net
946
249
Depreciation and amortization expense
2,444
2,228
Share-based compensation expense
4,384
4,154
Contingent consideration adjustment
2,458
(1,667
)
Acquisition costs
99
114
Non-GAAP adjusted loss (adjusted
EBITDA)
$
(6,069
)
$
(491
)
Reconciliation of Non-GAAP Adjusted
Loss Per Share
Three Months Ended March
31,
2020
2019
Net loss, as reported
$
(16,408
)
$
(5,635
)
Contingent consideration adjustment
2,458
(1,667
)
Net loss excluding contingent
consideration adjustment
$
(13,950
)
$
(7,302
)
Basic and diluted adjusted net loss per
share
$
(0.36
)
$
(0.20
)
Weighted average shares used in computing
adjusted net loss per share
Basic and diluted
38,671
36,976
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200429005638/en/
Andy Wade AtriCure, Inc. Chief Financial Officer (513) 755-4564
awade@atricure.com
Lynn Pieper Lewis Gilmartin Group Investor Relations (415)
937-5402 lynn@gilmartinir.com
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