SAN DIEGO, April 25, 2017 /PRNewswire/ -- NuVasive,
Inc. (Nasdaq: NUVA), a leading medical device company focused on
transforming spine surgery with minimally disruptive,
procedurally-integrated solutions, announced today financial
results for the quarter ended March
31, 2017.
First Quarter 2017 Highlights
- Revenue increased 16.2% to $250
million, or 16.0% on a constant currency basis;
- GAAP operating profit margin of 9.3%; Non-GAAP operating profit
margin of 14.1%;
- GAAP diluted earnings per share of $0.22; Non-GAAP diluted earnings per share
increase of 11.8% to $0.38; and
- Expanded existing revolving line of credit from $150 million up to $500
million.
"NuVasive is off to a solid start to the year, with our
International business exceeding our expectations, and we saw
momentum building in our U.S. business as we exited the quarter,"
said Gregory T. Lucier, chairman and
chief executive officer of NuVasive. "We are on track to deliver
non–GAAP operating profit margin expansion of at least 100 basis
points in 2017, reflecting our continued focus on operational
efficiencies and the ramp up of our in-house manufacturing
facility. Coupled with several innovative product and systems
launches planned for 2017, including LessRay designed for radiation
reduction, RELINE Trauma system, expandable cages and UNYTE system
for complex fractures, we anticipate strong revenue acceleration
for the balance of the year."
The Company also announced it amended its existing revolving
line of credit to expand the facility from $150 million up to $500
million. The credit facility amendment demonstrates the
Company's opportunistic approach to its capital structure, and
provides for a five-year term at reasonable borrowing rates. The
Company expects the expanded facility to allow greater flexibility
in planning for the maturity of its convertible notes due
July 2017, and support future
investment in organic and inorganic growth initiatives.
A full reconciliation of GAAP to non-GAAP measures can be found
in the tables of this news release.
First Quarter 2017 Results
NuVasive reported first quarter 2017 total revenue of
$249.9 million, a 16.2% increase
compared to $215.1 million for the
first quarter 2016. On a constant currency basis, first quarter
2017 total revenue increased 16.0% compared to the same period last
year.
For the first quarter 2017, both GAAP and non-GAAP gross profit
was $188.3 million, and both GAAP and
non-GAAP gross margin was 75.3%. These results compared to GAAP and
non-GAAP gross profit of $160.9
million and $165.8 million,
respectively, and GAAP and non-GAAP gross margin of 74.8% and 77.1%
respectively, for the first quarter 2016. The lower gross margin
profile year-over-year is primarily driven by the expense profile
of the Biotronic NeuroNetwork business acquired in July 2016. Total GAAP and non-GAAP operating
expenses were $165.0 million and
$152.9 million, respectively, for the
first quarter of 2017. These results compared to GAAP and non-GAAP
operating expenses of $148.6 million
and $135.5 million, respectively, for
the first quarter 2016.
The Company reported a GAAP net income of $12.8 million, or $0.22 per share, for the first quarter 2017
compared to a GAAP net loss of ($3.4)
million, or ($0.07) per share,
for the first quarter 2016. On a non-GAAP basis, the Company
reported net income of $20.0 million,
or $0.38 per share, for the first
quarter 2017 compared to net income of $17.2
million, or $0.34 per share,
for the first quarter 2016.
Cash, cash equivalents and short and long-term marketable
securities were approximately $134
million at March 31, 2017.
Annual Financial Guidance for 2017
The Company reiterated its full year 2017 guidance:
|
|
|
|
|
|
|
|
|
|
2017 Guidance
1
|
|
|
(in Million's;
except %'s and EPS)
|
|
GAAP
|
|
Non-GAAP
|
|
|
Revenue
|
|
$
1,065
|
|
$
1,065
|
|
|
% Growth -
Reported
|
|
10.7%
|
|
10.7%
|
|
|
% Growth -
Constant Currency 2
|
|
|
|
11.7%
|
|
|
Operating
margin
|
|
12.3%
|
|
17.1%
|
|
|
Earnings per
share
|
|
$
1.13
|
|
$
2.00
|
|
|
EBITDA
|
|
23.6%
|
|
26.7%
|
|
|
Tax
Rate
|
|
~34%
|
|
~35%
|
|
|
|
|
|
|
|
|
1
|
Current guidance
reflects guidance provided April 25, 2017.
|
|
2
|
Constant currency
is a measure that adjusts US GAAP revenue for the
impact of currency over the same period in the prior
year.
|
|
|
|
|
|
|
|
|
- Revenue of $1.065 billion, which
includes approximately $10 million in
year-over-year currency headwinds, and reflects 10.7% growth on a
reported basis and 11.7% growth on a constant currency basis
compared to revenue of $962.1 million
for 2016;
- Non-GAAP diluted earnings per share of $2.00, an increase of 20% compared to non-GAAP
diluted earnings per share of $1.66
for 2016;
- Non-GAAP operating profit margin of 17.1%, an increase of 100
basis points compared to 16.1% for 2016; and
- Adjusted EBITDA margin of 26.7%, an increase of 150 basis
points compared to 25.2% for 2016.
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
Full Year EPS Guidance
|
|
|
|
|
2017
Guidance
|
|
|
|
2016
Actuals
|
|
Prior 1,
2
|
|
Current 1,
3
|
|
|
GAAP net income
per share
|
$
0.69
|
|
$
1.16
|
|
$
1.13
|
|
|
Impact of change to
diluted share count
|
0.02
|
|
0.07
|
|
0.07
|
|
|
GAAP net income
per share, adjusted to diluted Non-GAAP share count
|
$
0.71
|
|
$
1.23
|
|
$
1.20
|
|
|
Litigation liability
gain
|
(0.83)
|
|
-
|
|
-
|
|
|
Business transition
costs 4
|
0.35
|
|
0.05
|
|
0.04
|
|
|
Non-cash interest
expense on convertible notes
|
0.38
|
|
0.33
|
|
0.33
|
|
|
Non-cash purchase
accounting adjustments on acquisitions 5
|
0.28
|
|
-
|
|
-
|
|
|
Loss on repurchase of
convertible notes
|
0.37
|
|
-
|
|
-
|
|
|
Amortization of
intangible assets 6
|
0.78
|
|
0.83
|
|
0.89
|
|
|
Tax effect of
adjustments 7
|
(0.38)
|
|
(0.44)
|
|
(0.46)
|
|
|
Non-GAAP earnings
per share
|
$
1.66
|
|
$
2.00
|
|
$
2.00
|
|
|
|
|
|
|
|
|
|
|
GAAP Weighted shares
outstanding - basic
|
50,077
|
|
50,967
|
|
50,967
|
|
|
GAAP Weighted shares
outstanding - diluted
|
54,102
|
|
56,269
|
|
56,269
|
|
|
Non-GAAP Weighted
shares outstanding - diluted
|
51,981
|
|
53,069
|
|
53,069
|
|
|
|
|
|
|
|
|
|
1
|
Prior guidance
provided February 9, 2017. Current guidance reflects guidance
provided April 25, 2017.
|
|
2
|
Effective tax
expense rate of ~35% applied to GAAP earnings and ~35% applied to
Non-GAAP earnings.
|
|
3
|
Effective tax
expense rate of ~34% applied to GAAP earnings and ~35% applied to
Non-GAAP earnings.
|
|
4
|
Costs related to
acquisition, integration and business transition activities which
include severance, relocation,
consulting, leasehold exit costs, third party merger and
acquisitions costs and other costs directly associated with
such
activities.
|
|
5
|
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.
|
|
6
|
Excludes the
amortization associated with non-controlling
interest.
|
|
|
|
|
|
|
7
|
The impact on
results from taxes include tax effecting the adjustments above at
the statutory rate as well as taking into
account discrete items and including those discrete items in the
annual effective tax rate calculation. The Company also
includes those adjustments that would have benefited the tax rate
in lieu of the above adjustments as part of the
Company's tax filings. The impact of the changes to the tax rate
results in an annual estimated rate of ~35% on a non-
GAAP basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Operating Margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
Guidance
|
|
|
(in thousands,
except %)
|
|
2016
Actuals
|
|
Prior
1
|
|
Current
1
|
|
|
Non-GAAP Gross
Margin %[A]
|
|
76.6%
|
|
76.1%
|
|
76.1%
|
|
|
Non-cash purchase
accounting adjustments on acquisitions 2
|
|
(1.5%)
|
|
0.0%
|
|
0.0%
|
|
|
GAAP Gross Margin
[B]
|
|
75.0%
|
|
76.1%
|
|
76.1%
|
|
|
|
|
|
|
|
|
|
|
|
GAAP &
Non-GAAP Sales, Marketing & Administrative Expense
[C]
|
|
55.5%
|
|
54.0%
|
|
54.0%
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Research
& Development Expense [D]
|
|
5.0%
|
|
5.0%
|
|
5.0%
|
|
|
In-process research
& development
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
|
GAAP Research &
Development Expense [E]
|
|
5.0%
|
|
5.0%
|
|
5.0%
|
|
|
|
|
|
|
|
|
|
|
|
Litigation liability
[F]
|
|
(4.5%)
|
|
0.0%
|
|
0.0%
|
|
|
Amortization of
intangible assets [G] 3
|
|
4.4%
|
|
4.3%
|
|
4.6%
|
|
|
Business transition
costs [H] 4
|
|
1.9%
|
|
0.3%
|
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating
Margin % [A - C - D]
|
|
16.1%
|
|
17.1%
|
|
17.1%
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
% [B - C - E - F - G - H]
|
|
12.8%
|
|
12.6%
|
|
12.3%
|
|
|
|
|
|
|
|
|
|
|
1
|
Prior guidance
provided February 9, 2017. Current guidance reflects guidance
provided April 25, 2017.
|
|
2
|
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.
|
|
3
|
Excludes the
amortization associated with non-controlling
interest.
|
|
4
|
Costs related to
acquisition, integration and business transition activities which
include severance,
relocation, consulting, leasehold exit costs, third party merger
and acquisitions costs and other costs directly
associated with such activities.
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
EBITDA %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
Guidance
|
|
|
(in thousands,
except %)
|
2016
Actuals
|
|
Prior
1
|
|
Current
1
|
|
|
Net Income /
(Loss)
|
3.9%
|
|
6.1%
|
|
6.0%
|
|
|
Interest (income) /
expense, net 2
|
6.1%
|
|
3.5%
|
|
3.5%
|
|
|
Provision for income
taxes
|
3.0%
|
|
3.1%
|
|
3.0%
|
|
|
Depreciation and
amortization 3
|
10.5%
|
|
10.8%
|
|
11.1%
|
|
|
EBITDA
|
23.5%
|
|
23.6%
|
|
23.6%
|
|
|
Non-cash stock based
compensation
|
2.8%
|
|
2.9%
|
|
3.0%
|
|
|
Business transition
costs 4
|
1.9%
|
|
0.3%
|
|
0.2%
|
|
|
Non-cash purchase
accounting adjustments on acquisitions 5
|
1.5%
|
|
0.0%
|
|
0.0%
|
|
|
In-process research
& development
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
|
Litigation liability
gain
|
(4.5%)
|
|
0.0%
|
|
0.0%
|
|
|
Adjusted
EBITDA
|
25.2%
|
|
26.7%
|
|
26.7%
|
|
|
|
|
|
|
|
|
|
1
|
Prior guidance
provided February 9, 2017. Current guidance reflects guidance
provided April 25, 2017.
|
2
|
Interest (income)
/ expense, net for the quarter and year ended December 31, 2016
includes loss on
extinguishment of debt for $1.6 million and $19.1 million,
respectively.
|
|
3
|
Excludes the
amortization associated with non-controlling
interest.
|
|
4
|
Costs related to
acquisition, integration and business transition activities which
include severance, relocation,
consulting, leasehold exit costs, third party merger and
acquisitions costs and other costs directly associated
with such activities.
|
|
5
|
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.
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Information
Management uses certain non-GAAP financial measures such as
non-GAAP earnings per share, non-GAAP net income, non-GAAP
operating expenses and non-GAAP operating profit margin, which
exclude amortization of intangible assets, leasehold related
charges, integration related expenses associated with acquired
businesses, one-time restructuring and acquisition related items,
CEO transition related costs, certain litigation charges and
non-cash interest expense (excluding debt issuance cost) and or
losses on convertible notes. Management also uses certain non-GAAP
measures which are intended to exclude the impact of foreign
exchange currency fluctuations. The measure constant currency is
the use of 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, purchase accounting related
changes, leasehold related charges, integration related expenses
associated with acquired businesses, CEO transition related costs,
certain litigation liabilities, acquisition related items 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
First Quarter 2017 Results
|
|
|
GAAP Net Income to
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
(in thousands,
except per share data)
|
March 31,
2017
|
|
|
|
|
|
GAAP net
income
|
$
12,768
|
|
|
|
|
|
Interest
expense/(income), net
|
9,662
|
|
|
|
|
|
Provision for income
taxes
|
1,490
|
|
|
|
|
|
Depreciation and
amortization 1
|
29,158
|
|
|
|
|
|
EBITDA
|
$
53,078
|
|
|
|
|
|
Business transition
costs2
|
55
|
|
|
|
|
|
Non-cash stock based
compensation
|
7,017
|
|
|
|
|
|
Adjusted
EBITDA
|
$
60,150
|
|
|
|
|
|
As a percentage of
revenue
|
24.1%
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Excludes the
amortization associated with non-controlling
interest.
|
2
|
Costs related to
acquisition, integration and business transition activities which
includes severance, relocation, consulting,
leasehold exit costs, third party merger and acquisitions costs and
other costs directly associated with such
activities.
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
First Quarter 2017 Results
|
|
|
|
GAAP Net Income
per Share to Non-GAAP Earnings per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
Diluted Earnings
Per
Share
|
|
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
GAAP net
income
|
|
|
$
12,768
|
|
$
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
Business transition
costs 1
|
|
|
55
|
|
|
|
|
|
Non-cash interest
expense on convertible notes
|
|
|
4,599
|
|
|
|
|
|
Amortization of
intangible assets 2
|
|
|
11,738
|
|
|
|
|
|
Tax effect of
adjustments 3
|
|
|
(9,123)
|
|
|
|
|
|
Adjustments to GAAP
net income
|
|
|
7,269
|
|
0.14
|
|
|
|
Non-GAAP
earnings
|
|
|
$
20,037
|
|
$
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted shares
outstanding - diluted
|
|
|
|
|
57,786
|
|
|
|
Non-GAAP weighted
shares outstanding - diluted 4
|
|
|
|
|
52,683
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Costs related to
acquisition, integration and business transition activities which
include severance, relocation, consulting, leasehold exit
costs,
third party merger and acquisitions costs and other costs directly
associated with such activities.
|
2
|
Excludes the
amortization associated with non-controlling
interest.
|
3
|
The impact on
results from taxes include tax effecting the adjustments above at
the statutory rate as well as taking into account discrete items
and
including those discrete items in the annual effective tax rate
calculation. The Company also includes those adjustments that would
have benefited
the tax rate in lieu of the above adjustments as part of the
Company's tax filings. The impact of the changes to the tax rate
results in an annual
estimated rate of ~35% on a non-GAAP basis.
|
|
4
|
Represents the
exclusion of diluted shares associated with the Company's
convertible debt and warrant which are economically hedged by
the
Company's bond hedge arrangements on both the 2017 and 2021
convertible notes.
|
|
|
|
|
|
|
|
|
|
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 2017. 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 May
25, 2017. In addition, a telephone replay of the call will
be available until May 2, 2017. 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:
13658678.
About NuVasive
NuVasive, Inc. (NASDAQ: NUVA) is a world leader in minimally
invasive, procedurally-integrated spine solutions. From complex
spinal deformity to degenerative spinal conditions, NuVasive is
transforming spine surgery with innovative technologies designed to
deliver reproducible and clinically proven surgical outcomes.
NuVasive's highly differentiated, procedurally-integrated solutions
include access instruments, implantable hardware and software
systems for surgical planning and reconciliation technology that
centers on achieving the global alignment of the spine. With
$962 million in revenues (2016),
NuVasive has an approximate 2,300 person workforce in more than 40
countries around the world. 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 2017, as well as
projections for 2017 financial guidance and longer-term financial
performance goals. The Company's results for the first quarter 2017
are prior to the completion of review and audit procedures by the
Company's external auditors and are subject to adjustment. In
addition, the Company's projections for 2017 financial guidance and
longer-term financial performance goals represent initial
estimates, and are subject to the risk of being inaccurate because
of the preliminary nature of the forecasts, the risk of further
adjustment, or unanticipated difficulty in selling products or
generating expected profitability. The potential risks and
uncertainties which contribute to the uncertain nature of these
statements include, among others, risks associated with acceptance
of the Company's surgical products and procedures by spine
surgeons, spine surgeons, development and acceptance of new
products or product enhancements, clinical and statistical
verification of the benefits achieved via the use of NuVasive's
products (including the iGA™ platform), the Company's ability to
effectually 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)
|
|
2017
|
|
2016
|
Revenue
|
|
$ 249,864
|
|
$ 215,104
|
Cost of goods sold
(excluding below amortization of intangible assets)
|
|
61,613
|
|
54,226
|
Gross
profit
|
|
188,251
|
|
160,878
|
Operating
expenses:
|
|
|
|
|
Sales, marketing and
administrative
|
|
140,502
|
|
124,838
|
Research and
development
|
|
12,414
|
|
10,629
|
Amortization of
intangible assets
|
|
12,061
|
|
7,871
|
Business transition
costs
|
|
55
|
|
5,307
|
Total operating
expenses
|
|
165,032
|
|
148,645
|
Interest and other
expense, net:
|
|
|
|
|
Interest
income
|
|
137
|
|
328
|
Interest
expense
|
|
(9,799)
|
|
(8,472)
|
Loss on repurchases
of convertible notes
|
|
—
|
|
(17,444)
|
Other income,
net
|
|
258
|
|
50
|
Total interest and
other expense, net
|
|
(9,404)
|
|
(25,538)
|
Income (loss) before
income taxes
|
|
13,815
|
|
(13,305)
|
Income tax (expense)
benefit
|
|
(1,490)
|
|
9,480
|
Consolidated net
income (loss)
|
|
$
12,325
|
|
$
(3,825)
|
Add back net loss
attributable to non-controlling interest
|
|
$
(443)
|
|
$
(457)
|
Net income (loss)
attributable to NuVasive, Inc.
|
|
$
12,768
|
|
$
(3,368)
|
Net income (loss) per
share attributable to NuVasive, Inc.:
|
|
|
|
|
Basic
|
|
$
0.25
|
|
$
(0.07)
|
Diluted
|
|
$
0.22
|
|
$
(0.07)
|
Weighted average
shares outstanding:
|
|
|
|
|
Basic
|
|
50,566
|
|
49,617
|
Diluted
|
|
57,786
|
|
49,617
|
NuVasive,
Inc.
|
Consolidated
Balance Sheets
|
(in thousands,
except par values and share amounts)
|
|
|
|
|
|
|
|
March 31,
2017
|
|
December 31,
2016
|
ASSETS
|
|
(Unaudited)
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
134,008
|
|
$
153,643
|
Accounts receivable,
net of allowances of $8,086 and $8,912, respectively
|
|
172,103
|
|
171,595
|
Inventory,
net
|
|
223,075
|
|
208,249
|
Prepaid income
taxes
|
|
21,161
|
|
31,926
|
Prepaid expenses and
other current assets
|
|
12,921
|
|
10,030
|
Total current
assets
|
|
563,268
|
|
575,443
|
Property and
equipment, net
|
|
203,677
|
|
181,524
|
Intangible assets,
net
|
|
279,603
|
|
291,143
|
Goodwill
|
|
486,342
|
|
485,685
|
Deferred tax
assets
|
|
5,977
|
|
5,810
|
Restricted cash and
investments
|
|
7,547
|
|
7,405
|
Other
assets
|
|
23,721
|
|
23,794
|
Total
assets
|
|
$
1,570,135
|
|
$
1,570,804
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
82,467
|
|
$
77,585
|
Contingent
consideration liabilities
|
|
48,576
|
|
49,742
|
Accrued payroll and
related expenses
|
|
38,651
|
|
51,000
|
Income tax
liabilities
|
|
2,130
|
|
2,469
|
Senior convertible
notes
|
|
62,486
|
|
61,701
|
Total current
liabilities
|
|
234,310
|
|
242,497
|
Long-term senior
convertible notes
|
|
568,939
|
|
564,412
|
Deferred and income
tax liabilities, non-current
|
|
20,529
|
|
18,607
|
Other long-term
liabilities
|
|
47,629
|
|
44,764
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock,
$0.001 par value; 5,000,000 shares authorized, none
outstanding
|
|
—
|
|
—
|
Common stock,
$0.001 par value; 120,000,000 shares authorized at March 31,
2017 and December 31, 2016, 55,623,735 and 55,184,660 issued and
outstanding at March 31, 2017 and December 31, 2016,
respectively
|
|
56
|
|
55
|
Additional paid-in
capital
|
|
1,020,672
|
|
1,010,238
|
Accumulated other
comprehensive loss
|
|
(8,774)
|
|
(10,631)
|
Accumulated
deficit
|
|
(65,738)
|
|
(66,859)
|
Treasury stock at
cost; 4,963,014 shares and 4,758,828 shares at March 31, 2017 and
December 31, 2016, respectively
|
|
(252,633)
|
|
(237,867)
|
Total NuVasive, Inc.
stockholders' equity
|
|
693,583
|
|
694,936
|
Non-controlling
interest
|
|
5,145
|
|
5,588
|
Total
equity
|
|
698,728
|
|
700,524
|
Total liabilities and
equity
|
|
$
1,570,135
|
|
$
1,570,804
|
NuVasive,
Inc.
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
(unaudited)
|
|
2017
|
|
2016
|
Operating
activities:
|
|
|
|
|
Consolidated net
income (loss)
|
|
$
12,325
|
|
$
(3,825)
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
29,510
|
|
21,224
|
Loss on repurchases
of convertible notes
|
|
—
|
|
17,444
|
Amortization of
non-cash interest
|
|
5,369
|
|
5,112
|
Stock-based
compensation
|
|
7,017
|
|
4,492
|
Reserves on current
assets
|
|
(2,153)
|
|
4,162
|
Other non-cash
adjustments
|
|
3,013
|
|
3,491
|
Deferred income
taxes
|
|
1,645
|
|
(2,630)
|
Changes in operating
assets and liabilities, net of effects from
acquisitions:
|
|
|
|
|
Accounts
receivable
|
|
924
|
|
6,939
|
Inventory
|
|
(13,630)
|
|
(9,449)
|
Prepaid expenses and
other current assets
|
|
(2,756)
|
|
1,303
|
Accounts payable and
accrued liabilities
|
|
593
|
|
10,021
|
Accrued payroll and
related expenses
|
|
(12,531)
|
|
(9,219)
|
Income
taxes
|
|
(1,298)
|
|
8,327
|
Net cash provided by
operating activities
|
|
28,028
|
|
57,392
|
Investing
activities:
|
|
|
|
|
Acquisition of
Ellipse Technologies, net of cash acquired
|
|
—
|
|
(380,674)
|
Other acquisitions
and investments
|
|
(2,500)
|
|
(8,079)
|
Purchases of
intangible assets
|
|
(1,249)
|
|
(1,027)
|
Purchases of property
and equipment
|
|
(34,545)
|
|
(18,279)
|
Purchases of
marketable securities
|
|
—
|
|
(36,096)
|
Proceeds from sales
of marketable securities
|
|
—
|
|
253,435
|
Net cash used in
investing activities
|
|
(38,294)
|
|
(190,720)
|
Financing
activities:
|
|
|
|
|
Proceeds from the
issuance of common stock
|
|
410
|
|
444
|
Purchase of treasury
stock
|
|
(10,356)
|
|
(12,599)
|
Proceeds from
issuance of convertible debt, net of issuance costs
|
|
—
|
|
634,140
|
Proceeds from sale of
warrants
|
|
—
|
|
44,850
|
Purchase of
convertible note hedge
|
|
—
|
|
(111,150)
|
Repurchases of
convertible notes
|
|
—
|
|
(343,835)
|
Proceeds from
revolving line of credit
|
|
—
|
|
50,000
|
Repayments on
revolving line of credit
|
|
—
|
|
(50,000)
|
Other financing
activities
|
|
(181)
|
|
(1,442)
|
Net cash (used in)
provided by financing activities
|
|
(10,127)
|
|
210,408
|
Effect of exchange
rate changes on cash
|
|
758
|
|
686
|
(Decrease) increase
in cash and cash equivalents
|
|
(19,635)
|
|
77,766
|
Cash and cash
equivalents at beginning of period
|
|
153,643
|
|
192,339
|
Cash and cash
equivalents at end of period
|
|
$ 134,008
|
|
$ 270,105
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nuvasive-announces-first-quarter-2017-financial-results-300445403.html
SOURCE NuVasive, Inc.