Delaware | 000-50744 | 33-0768598 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification Number) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
99.1 | Press release issued by NuVasive, Inc. on May 4, 2011, announcing
financial results for the quarter ended March 31, 2011. |
NUVASIVE, INC. |
||||
Date: May 4, 2011 | By: | /s/ Alexis V. Lukianov | ||
Alexis V. Lukianov | ||||
Chairman and Chief Executive Officer |
Exhibit | ||
Number | Description of Document | |
99.1 | Press release issued by NuVasive, Inc. on May 4, 2011,
announcing financial results for the quarter ended March 31,
2011. |
Contact:
|
Investors: | |
Michael J. Lambert
|
Patrick F. Williams | |
EVP & Chief Financial Officer
|
Vice President, Industry & Investor Relations | |
NuVasive, Inc.
|
NuVasive, Inc. | |
858-909-3394
|
858-638-5511 | |
investorrelations@nuvasive.com
|
investorrelations@nuvasive.com | |
Media: | ||
Jason Rando | ||
The Ruth Group | ||
646-536-7025 | ||
jrando@theruthgroup.com |
| Total revenue of $124.5 million, up 14.1% over first quarter 2010 |
||
| GAAP earnings of $2.4 million, or $0.06 per share, includes the benefit of a
change in accounting estimate of $0.02 per share |
||
| Non-GAAP earnings of $9.5 million, or $0.24 per share, includes the benefit
of a change in accounting estimate of $0.02 per share |
||
| Non-GAAP operating margin of 13.3% and GAAP operating margin of 3.7%, both
include the benefit of a change in accounting estimate of 1.4% |
||
| Operating cash flow of $14.5 million |
| Revenue of $530 million to $540 million; up from previous guidance of $525 million
to $535 million |
||
| GAAP EPS of $0.52 to $0.55; up from previous guidance of $0.39 to $0.42 |
||
| Non-GAAP EPS of $1.20 to $1.23; up from previous guidance of $1.07 to $1.10 |
||
| Non-GAAP Operating Margin of ~17.5%, up from previous guidance of ~16.5% |
||
| GAAP effective tax rate of ~45%, down from previous guidance of ~49% |
Change in | GAAP | |||||||||||||||||||||||
Prior | Revenue | Accounting | Tax Rate | Revised | ||||||||||||||||||||
Guidance | Increase | Estimate | Decrease | Guidance | ||||||||||||||||||||
Low Range |
$ | 1.07 | $ | 0.01 | $ | 0.08 | $ | 0.04 | $ | 1.20 | ||||||||||||||
High Range |
$ | 1.10 | $ | 0.01 | $ | 0.08 | $ | 0.04 | $ | 1.23 | ||||||||||||||
2010 | 2011 | 2011 | ||||||||||||||||||
Pre Tax | Pre Tax | Net of Tax* | ||||||||||||||||||
Actual | Low Range | High Range | Low Range | High Range | ||||||||||||||||
GAAP earnings per share** |
$ | 0.64 | $ | 0.94 | $ | 1.00 | $ | 0.52 | $ | 0.55 | ||||||||||
Non-cash stock-based compensation |
0.70 | 0.79 | 0.79 | 0.47 | 0.47 | |||||||||||||||
Certain intellectual property litigation expenses |
0.13 | 0.13 | 0.13 | 0.08 | 0.08 | |||||||||||||||
Amortization of intangible assets |
0.13 | 0.18 | 0.18 | 0.11 | 0.11 | |||||||||||||||
Acquisition related items |
0.07 | 0.04 | 0.04 | 0.02 | 0.02 | |||||||||||||||
Non-GAAP earnings per share |
$ | 1.68 | $ | 2.07 | $ | 2.13 | $ | 1.20 | $ | 1.23 | ||||||||||
Weighted shares outstanding - Diluted*** |
40,373 | 42,000 | 42,000 | 42,000 | 42,000 | |||||||||||||||
FY 11 | ||||||||||||||
FY 10 | Estimate | |||||||||||||
Actual | Prior | Revised | ||||||||||||
Gross Margin % [A] |
82.2% | ~ 81% | ~ 81% | |||||||||||
Non-GAAP Research and Development [B] |
8.0% | ~ 8% | ~ 8% | |||||||||||
Non-cash stock-based compensation |
0.7% | ~ 1% | ~ 1% | |||||||||||
Acquisition related items* |
0.4% | as incurred | as incurred | |||||||||||
GAAP research and development |
9.1% | ~ 9% | ~ 9% | |||||||||||
Non-GAAP Sales, Marketing and
Administrative [C] |
58.8% | ~ 56.5% | ~ 55.5% | |||||||||||
Non-cash stock-based compensation |
5.2% | ~ 5% | ~ 5% | |||||||||||
Certain intellectual property
litigation expenses |
1.1% | ~ 1% | ~ 1% | |||||||||||
Acquisition related items* |
0.2% | ~ 0.5% & as incurred | ~ 0.5% & as incurred | |||||||||||
GAAP sales, marketing and administrative |
65.3% | ~ 63% | ~ 62% | |||||||||||
Amortization of intangible assets |
1.1% | ~ 1.5% | ~ 1.5% | |||||||||||
Non-GAAP Operating Margin % [A-B-C] |
15.4% | ~ 16.5% | ~ 17.5% | |||||||||||
Pre-Tax | Earnings | |||||||||||
(in thousands, except per share data) | adjustments | Net of Tax | Per Share | |||||||||
GAAP net income |
$ | 2,359 | $ | 0.06 | ||||||||
Non-cash stock-based compensation |
$ | 7,946 | 4,768 | 0.12 | ||||||||
Certain intellectual property litigation expenses |
2,081 | 1,249 | 0.03 | |||||||||
Amortization of intangible assets |
1,342 | 805 | 0.02 | |||||||||
Acquisition related items |
571 | 343 | 0.01 | |||||||||
Non-GAAP earnings |
$ | 9,524 | $ | 0.24 | ||||||||
Weighted shares outstanding - Diluted |
40,511 | |||||||||||
Three Months Ended March 31, | ||||||||
2011 | 2010 | |||||||
Revenue |
$ | 124,466 | $ | 109,087 | ||||
Cost of goods sold (excluding amortization of purchased technology) |
23,526 | 19,443 | ||||||
Gross profit |
100,940 | 89,644 | ||||||
Operating expenses: |
||||||||
Sales, marketing and administrative |
84,220 | 74,661 | ||||||
Research and development |
10,769 | 10,699 | ||||||
Amortization of intangible assets |
1,342 | 1,350 | ||||||
Total operating expenses |
96,331 | 86,710 | ||||||
Interest and other expense, net: |
||||||||
Interest income |
183 | 189 | ||||||
Interest expense |
(1,771 | ) | (1,669 | ) | ||||
Other income, net |
497 | 117 | ||||||
Total interest and other expense, net |
(1,091 | ) | (1,363 | ) | ||||
Income before income taxes |
3,518 | 1,571 | ||||||
Income tax expense |
1,540 | 865 | ||||||
Consolidated net income |
$ | 1,978 | $ | 706 | ||||
Net loss attributable to noncontrolling interests |
$ | (381 | ) | $ | (382 | ) | ||
Net income attributable to NuVasive, Inc. |
$ | 2,359 | $ | 1,088 | ||||
Net income per share attributable to NuVasive, Inc.: |
||||||||
Basic and diluted |
$ | 0.06 | $ | 0.03 | ||||
Weighted average shares outstanding: |
||||||||
Basic |
39,616 | 38,898 | ||||||
Diluted |
40,511 | 40,061 | ||||||
Stock-based compensation is included in operating expenses
in the following categories: |
||||||||
Sales, marketing and administrative |
$ | 7,335 | $ | 5,680 | ||||
Research and development |
611 | 754 | ||||||
$ | 7,946 | $ | 6,434 | |||||
March 31, 2011 | December 31, 2010 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 134,101 | $ | 92,597 | ||||
Short-term marketable securities |
58,876 | 86,458 | ||||||
Accounts receivable, net |
75,952 | 76,632 | ||||||
Inventory |
114,388 | 107,577 | ||||||
Deferred tax assets |
4,425 | 4,425 | ||||||
Prepaid expenses and other current assets |
4,750 | 4,082 | ||||||
Total current assets |
392,492 | 371,771 | ||||||
Property and equipment, net |
105,066 | 102,165 | ||||||
Long-term marketable securities |
32,814 | 50,635 | ||||||
Intangible assets, net |
105,817 | 107,121 | ||||||
Goodwill |
103,070 | 103,070 | ||||||
Deferred tax assets, non-current |
52,033 | 52,033 | ||||||
Other assets |
15,438 | 15,234 | ||||||
Total assets |
$ | 806,730 | $ | 802,029 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable and accrued liabilities |
$ | 54,899 | $ | 58,995 | ||||
Accrued payroll and related expenses |
14,643 | 17,266 | ||||||
Acquisition-related liabilities |
33,155 | 32,715 | ||||||
Total current liabilities |
102,697 | 108,976 | ||||||
Senior convertible notes |
230,000 | 230,000 | ||||||
Long-term acquisition-related liabilities |
339 | 326 | ||||||
Deferred tax liabilities |
3,685 | 3,685 | ||||||
Other long-term liabilities |
12,729 | 12,810 | ||||||
Commitments and contingencies |
||||||||
Noncontrolling interests |
11,496 | 11,877 | ||||||
Stockholders equity: |
||||||||
Common stock |
40 | 40 | ||||||
Additional paid-in capital |
553,484 | 545,114 | ||||||
Accumulated other comprehensive income |
1,316 | 616 | ||||||
Accumulated deficit |
(109,056 | ) | (111,415 | ) | ||||
Total stockholders equity |
445,784 | 434,355 | ||||||
Total liabilities and stockholders equity |
$ | 806,730 | $ | 802,029 | ||||
Three Months Ended March 31, | ||||||||
2011 | 2010 | |||||||
Operating activities: |
||||||||
Consolidated net income |
$ | 1,978 | $ | 706 | ||||
Adjustments to reconcile net income to net cash provided by operating
activities: |
||||||||
Depreciation and amortization |
7,781 | 8,104 | ||||||
Stock-based compensation |
7,946 | 6,434 | ||||||
Allowance for excess and obsolete inventory |
216 | 736 | ||||||
Allowance for doubtful accounts and sales return reserve, net of write-offs |
6 | (657 | ) | |||||
Other non-cash adjustments |
1,795 | 1,454 | ||||||
Changes in operating assets and liabilities, net of effects from acquisitions: |
||||||||
Accounts receivable |
942 | (3,100 | ) | |||||
Inventory |
(6,658 | ) | (1,237 | ) | ||||
Prepaid expenses and other current assets |
(751 | ) | (1,570 | ) | ||||
Accounts payable and accrued liabilities |
3,959 | 4,780 | ||||||
Accrued payroll and related expenses |
(2,670 | ) | (6,512 | ) | ||||
Net cash provided by operating activities |
14,544 | 9,138 | ||||||
Investing activities: |
||||||||
Purchases of property and equipment |
(10,000 | ) | (8,402 | ) | ||||
Purchases of marketable securities |
(26,018 | ) | (45,525 | ) | ||||
Sales of marketable securities |
71,185 | 54,016 | ||||||
Payment for specific rights in connection with supply agreement |
(8,000 | ) | - | |||||
Net cash provided by investing activities |
27,167 | 89 | ||||||
Financing activities: |
||||||||
Issuance of common stock |
425 | 6,628 | ||||||
Other assets |
(709 | ) | (4,408 | ) | ||||
Tax benefits related to stock-based compensation awards |
- | 882 | ||||||
Net cash (used in) provided by financing activities |
(284 | ) | 3,102 | |||||
Effect of exchange rate changes on cash |
77 | (78 | ) | |||||
Increase in cash and cash equivalents |
41,504 | 12,251 | ||||||
Cash and cash equivalents at beginning of period |
92,597 | 65,413 | ||||||
Cash and cash equivalents at end of period |
$ | 134,101 | $ | 77,664 | ||||
XNE(0VF`8QA`1"55.R?,!(0-
M)\#UQ0L`].#-'0,89C'_B2AX<$(`;E!!"A]V@"`R!`*4^R@G6#`@L@,AA-$H
M*L`$X(<**C-`P`?E^I&L)LHF@P4".JB\! `[UBI??ONMYU`DG)QT8,I"O3X*""WU]2.E10
M=\(""^!@18!46&!!4T($0$8+.1!X!H`!D(!:2N-E)$1,%L@1!16[8&>%+OUP)G\``>8$/H,B@O9'\)L`!L$`-M@BZRDP8!\P#[
M]P7HDA)8P&4?B`48:"]I\`#V5W6I4EA8P`:TM0"H`2&X-V!FQ0Z&01Z