AtriCure, Inc. (Nasdaq: ATRC), a leading innovator in surgical
treatments and therapies for atrial fibrillation (Afib), left
atrial appendage (LAA) management and post-operative pain
management, today announced fourth quarter 2021 and full year 2021
financial results.
“We achieved several milestones in 2021 including the approval
and launch of Hybrid Therapy™ for treatment of patients with
long-standing persistent Afib, a result of our groundbreaking
CONVERGE™ trial, 510(k) clearance for our ENCOMPASS® clamp,
expansion of Cryo Nerve Block therapy for pain management and
robust growth across our established product lines,” said Michael
Carrel, President and Chief Executive Officer of AtriCure. “As we
enter 2022, we are well positioned for accelerated growth as we
focus on commercial development and market expansion.”
Fourth Quarter 2021 Financial
Results Revenue for the fourth quarter 2021 was $73.2
million, an increase of 26.8% (an increase of 27.4% on a constant
currency basis) over fourth quarter 2020 revenue. U.S. revenue was
$61.2 million, an increase of $13.8 million or 29.1%, compared to
fourth quarter 2020 revenue. U.S. revenue reflected strong growth
across all product lines, driven by sales of our cryoSPHERE®,
EPi-Sense and AtriClip® Flex⋅V® products. International revenue
increased $1.7 million or 16.3% (an increase of 19.3% on a constant
currency basis) to $12.0 million, reflecting growth in most major
markets and across product lines. On a sequential basis, worldwide
revenue for the fourth quarter 2021 increased approximately 3.9%
over third quarter 2021.
Gross profit for the fourth quarter 2021 was $55.0 million
compared to $42.4 million for the fourth quarter 2020. Gross margin
was 75.1% and 73.5% for the fourth quarters 2021 and 2020
respectively, reflecting favorable geographic and product mix.
Loss from operations for the fourth quarter 2021 was $12.5
million, compared to $17.5 million for the fourth quarter 2020.
Basic and diluted net loss per share was $0.30 for the fourth
quarter 2021, compared to $0.42 for the fourth quarter 2020.
Adjusted EBITDA was negative for the fourth quarter 2021 at $2.1
million, compared to positive $1.7 million for fourth quarter of
2020. Adjusted loss per share for the fourth quarter 2021 was $0.30
compared to $0.18 for the fourth quarter 2020.
Constant currency revenue, adjusted EBITDA and adjusted loss per
share are non-GAAP measures. We discuss these non-GAAP measures and
provide reconciliations to GAAP measures later in this release.
2021 Financial Results
Revenue for 2021 was $274.3 million, an increase of $67.8 million
or 32.8% (an increase of 32.4% on a constant currency basis),
compared to 2020 revenue. U.S. revenue increased 35.4% to $229.1
million. International revenue was $45.2 million, an increase of
$7.9 million or 21.2% (an increase of 19.1% on a constant currency
basis). The increase in revenue was due to returning surgical
procedure volume globally following the impact of the COVID-19
pandemic in 2020, as well as further adoption of our products.
Gross profit for 2021 was $205.9 million compared to $149.3
million for 2020, and gross margin increased to 75.0% for 2021
compared to 72.3% for 2020. The improvement to gross margin
reflects the return to normal production activity in 2021 as well
as favorable geographic and product mix, partially offset by
inventory management charges in 2021.
Income from operations for 2021 was $55.2 million, compared to a
loss from operations of $44.2 million for 2020. 2021 income from
operations includes a $184.8 million credit to operating expenses
for the change in fair value of contingent consideration, offset
partially by a $82.3 million intangible asset impairment charge for
the IPR&D asset associated with the aMAZE™ trial. Basic and
diluted net income per share was $1.11 and $1.09, respectively for
2021, compared to basic and diluted loss per share of $1.14 for
2020.
Adjusted EBITDA was negative $8.8 million for 2021, compared to
negative $6.3 million for 2020. The adjusted loss per share for
2021 was $1.16 compared to an adjusted loss per share of $1.01 for
2020.
2022 Financial Guidance Full
year 2022 revenue is projected to be approximately $315 million to
$330 million, reflecting growth of approximately 15% to 20% over
full year 2021. Continued uncertainty relating to the dynamic
environment with the COVID-19 pandemic could materially impact this
projection. Full year 2022 adjusted EBITDA is expected to be a loss
of approximately $2 million to $4 million, and the full year 2022
adjusted loss per share of approximately $1.07 to $1.12.
Conference Call AtriCure
will host a conference call at 4:30 p.m. Eastern Time on Tuesday,
February 15, 2022 to discuss its fourth quarter 2021 and full year
2021 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
4299852. 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 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. AtriCure’s Hybrid AF™ Therapy is a
minimally invasive procedure that provides a lasting solution for
long-standing persistent Afib patients. AtriCure’s cryoICE
cryoSPHERE® probe is cleared for temporary ablation of peripheral
nerves to block pain, providing pain relief in cardiac and thoracic
procedures. For more information, visit AtriCure.com or follow us
on Twitter @AtriCure. The information contained on our website,
Twitter or any other third-party website is not incorporated by
reference in this earnings release.
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. This press release also includes
forward-looking projected financial information that is based on
current estimates and forecasts. Actual results could differ
materially. 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/forward-looking-statements
as well as our Annual Reports on Form 10-K and Quarterly Reports on
Form 10-Q which contain risk factors. Except where otherwise noted,
the information contained in this release and the related
attachment is as of February 15, 2022. We assume no obligation to
update any forward-looking statements contained in this release and
the related attachment as a result of new information or future
events or developments, except as may be required by law.
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 provides certain non-GAAP financial measures in this
release as supplemental financial metrics.
Revenue reported on a constant currency basis is a non-GAAP
measure, 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 investors.
Adjusted EBITDA is calculated as net income (loss) before other
income/expense (including interest), income tax expense,
depreciation and amortization expense, share-based compensation
expense, acquisition costs, legal settlement costs, impairment of
intangible asset and change in fair value of contingent
consideration liabilities. Management believes 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 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. A reconciliation of adjusted EBITDA reported in
this release to the most comparable GAAP measure for the respective
periods appears in the table captioned “Reconciliation of Non-GAAP
Adjusted (Loss) Income (Adjusted EBITDA)” later in this
release.
Adjusted income (loss) per share is a non-GAAP measure which
calculates the net income (loss) per share before non-cash
adjustments in fair value of contingent consideration liabilities,
impairment of intangible asset and legal settlement costs. A
reconciliation of adjusted income (loss) per share reported in this
release to the most comparable GAAP measure for the respective
periods appears 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 in the same manner as those used and calculated
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. We urge investors to review the
reconciliation of these non-GAAP financial measures to the
comparable GAAP financials measures included in this press release,
and not to rely on any single financial measure to evaluate our
business.
ATRICURE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In Thousands, Except Per
Share Amounts)
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2021
2020
2021
2020
United States Revenue:
Open ablation
$
24,202
$
20,720
$
93,895
$
75,399
Minimally invasive ablation
11,303
7,352
39,380
25,647
Appendage management
25,424
19,111
94,568
66,981
Total ablation and appendage
management
60,929
47,183
227,843
168,027
Valve tools
286
223
1,288
1,217
Total United States
61,215
47,406
229,131
169,244
International Revenue:
Open ablation
6,577
4,889
23,206
18,655
Minimally invasive ablation
1,711
1,825
6,409
6,171
Appendage management
3,709
3,575
15,534
12,353
Total ablation and appendage
management
11,997
10,289
45,149
37,179
Valve tools
6
30
49
108
Total international
12,003
10,319
45,198
37,287
Total revenue
73,218
57,725
274,329
206,531
Cost of revenue
18,202
15,288
68,469
57,222
Gross profit
55,016
42,437
205,860
149,309
Operating (benefit) expenses:
Research and development expenses
13,808
10,871
48,506
43,070
Selling, general and administrative
expenses
53,710
44,572
204,649
150,829
Change in fair value of contingent
consideration
—
4,497
(184,800
)
(357
)
Intangible asset impairment
—
—
82,300
—
Total operating expenses
67,518
59,940
150,655
193,542
Income (loss) from operations
(12,502
)
(17,503
)
55,205
(44,233
)
Other expense, net
(1,186
)
(961
)
(4,818
)
(3,808
)
Income (loss) before income tax
expense
(13,688
)
(18,464
)
50,387
(48,041
)
Income tax expense (benefit)
53
98
188
114
Net income (loss)
$
(13,741
)
$
(18,562
)
$
50,199
$
(48,155
)
Basic net income (loss) per share
$
(0.30
)
$
(0.42
)
$
1.11
$
(1.14
)
Diluted net income (loss) per share
$
(0.30
)
$
(0.42
)
$
1.09
$
(1.14
)
Weighted average shares used in computing
net income (loss) per share:
Basic
45,331
44,124
45,066
42,125
Diluted
45,331
44,124
46,039
42,125
ATRICURE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In Thousands)
(Unaudited)
December 31,
December 31,
2021
2020
Assets
Current assets:
Cash, cash equivalents, and short-term
investments
$
119,090
$
244,218
Accounts receivable, net
33,021
23,146
Inventories
38,964
35,026
Prepaid and other current assets
5,001
4,347
Total current assets
196,076
306,737
Property and equipment, net
31,409
28,290
Operating lease right-of-use assets
4,761
1,914
Long-term investments
104,338
14,178
Goodwill and intangible assets, net
277,773
362,980
Other noncurrent assets
955
440
Total assets
$
615,312
$
714,539
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable and accrued
liabilities
$
54,689
$
40,720
Other current liabilities and current
maturities of debt and leases
1,756
8,417
Total current liabilities
56,445
49,137
Long-term debt
59,741
53,435
Finance lease liabilities
10,082
10,969
Operating lease liabilities
4,068
1,180
Contingent consideration and other
noncurrent liabilities
1,220
187,424
Total liabilities
131,556
302,145
Stockholders' equity:
Common stock
46
45
Additional paid-in capital
764,811
742,389
Accumulated other comprehensive (loss)
income
(948
)
312
Accumulated deficit
(280,153
)
(330,352
)
Total stockholders' equity
483,756
412,394
Total liabilities and stockholders'
equity
$
615,312
$
714,539
ATRICURE, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP RESULTS
TO NON-GAAP RESULTS
(In Thousands)
(Unaudited)
Reconciliation of Non-GAAP Adjusted
(Loss) Income (Adjusted EBITDA)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2021
2020
2021
2020
Net income (loss), as reported
$
(13,741
)
$
(18,562
)
$
50,199
$
(48,155
)
Income tax expense (benefit)
53
98
188
114
Other expense, net
1,186
961
4,818
3,808
Depreciation and amortization expense
2,833
2,167
10,441
9,548
Share-based compensation expense
7,539
6,516
28,078
22,642
Change in fair value of contingent
consideration
—
4,497
(184,800
)
(357
)
Intangible asset impairment
—
—
82,300
—
Legal settlement
—
6,000
—
6,000
Acquisition costs
—
—
—
138
Non-GAAP adjusted (loss) income (adjusted
EBITDA)
$
(2,130
)
$
1,677
$
(8,776
)
$
(6,262
)
Reconciliation of Non-GAAP Adjusted
Loss Per Share
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2021
2020
2021
2020
Net income (loss), as reported
$
(13,741
)
$
(18,562
)
$
50,199
$
(48,155
)
Change in fair value of contingent
consideration
—
4,497
(184,800
)
(357
)
Intangible asset impairment
—
—
82,300
—
Legal settlement
—
6,000
—
6,000
Non-GAAP adjusted net loss
$
(13,741
)
$
(8,065
)
$
(52,301
)
$
(42,512
)
Basic and diluted adjusted net loss per
share
$
(0.30
)
$
(0.18
)
$
(1.16
)
$
(1.01
)
Weighted average shares used in computing
adjusted net loss per share
Basic and diluted
45,331
44,124
45,066
42,125
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220215005971/en/
Angie Wirick AtriCure, Inc. Chief Financial Officer (513)
755-5334 awirick@atricure.com
Lynn Lewis Gilmartin Group Investor Relations (415) 937-5402
lynn@gilmartinir.com
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