Delaware | 77-0154833 | |
(State or other jurisdiction of Incorporation) | (I.R.S. Employer Identification No.) |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | 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 |
Exhibit No. | Description | |
99.1 | Press release dated April 20, 2016 describing the Company's results for its first quarter ended March 31, 2016 and other financial information. |
NATUS MEDICAL INCORPORATED (Registrant) | ||||||
Dated: April 20, 2016 | By: | /s/ Jonathan A. Kennedy | ||||
Senior Vice President Finance and Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press release dated April 20, 2016 describing the Company's results for its first quarter ended March 31, 2016 and other financial information. |
• | Record first quarter non-GAAP earnings per share of $0.34 |
• | Achieves non-GAAP gross margin of 63.1% |
• | Updates revenue and earnings guidance for the second quarter and fiscal year 2016 |
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |||||||
(in thousands, except per share amounts) | |||||||
Quarter Ended | |||||||
March 31, 2016 | March 31, 2015 | ||||||
Revenue | $ | 87,329 | $ | 89,395 | |||
Cost of revenue | 32,469 | 35,105 | |||||
Intangibles amortization | 601 | 682 | |||||
Gross profit | 54,259 | 53,608 | |||||
Gross profit margin | 62.1 | % | 60.0 | % | |||
Operating expenses: | |||||||
Marketing and selling | 20,596 | 20,742 | |||||
Research and development | 7,802 | 6,857 | |||||
General and administrative | 12,480 | 11,552 | |||||
Intangibles amortization | 2,135 | 955 | |||||
Restructuring | 35 | 156 | |||||
Total operating expenses | 43,048 | 40,262 | |||||
Income from operations | 11,211 | 13,346 | |||||
Other income/(expense), net | 456 | (829 | ) | ||||
Income before tax | 11,667 | 12,517 | |||||
Provision for income tax expense | 3,129 | 3,920 | |||||
Net income | $ | 8,538 | $ | 8,597 | |||
Earnings per share: | |||||||
Basic | $ | 0.26 | $ | 0.27 | |||
Diluted | $ | 0.26 | $ | 0.26 | |||
Weighted-average shares: | |||||||
Basic | 32,606 | 32,127 | |||||
Diluted | 33,222 | 33,097 |
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||
(in thousands) | |||||||
March 31, | December 31, | ||||||
2016 | 2015 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 81,285 | $ | 82,469 | |||
Accounts receivable, net | 90,013 | 99,080 | |||||
Inventories | 45,691 | 48,572 | |||||
Other current assets | 11,360 | 11,235 | |||||
Total current assets | 228,349 | 241,356 | |||||
Property and equipment, net | 17,624 | 16,967 | |||||
Goodwill and intangible assets | 196,413 | 194,002 | |||||
Deferred income tax | 12,695 | 12,782 | |||||
Other assets | 17,649 | 14,389 | |||||
Total assets | $ | 472,730 | $ | 479,496 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 19,418 | $ | 23,660 | |||
Accrued liabilities | 36,911 | 42,137 | |||||
Deferred revenue | 11,460 | 11,311 | |||||
Total current liabilities | 67,789 | 77,108 | |||||
Long-term liabilities: | |||||||
Deferred income tax | 3,881 | 3,897 | |||||
Other long-term liabilities | 8,708 | 7,781 | |||||
Total liabilities | 80,378 | 88,786 | |||||
Total stockholders’ equity | 392,352 | 390,710 | |||||
Total liabilities and stockholders’ equity | $ | 472,730 | $ | 479,496 |
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | |||||||
(in thousands) | |||||||
Quarter Ended | |||||||
March 31, 2016 | March 31, 2015 | ||||||
Operating activities: | |||||||
Net income | $ | 8,538 | $ | 8,597 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for losses on accounts receivable | 352 | 276 | |||||
Excess tax benefit on the exercise of stock options | — | (1,054 | ) | ||||
Depreciation and amortization | 4,223 | 2,983 | |||||
Impairment of intangible assets | — | — | |||||
Impairment of property and equipment | 15 | — | |||||
Warranty reserve | 929 | 876 | |||||
Share-based compensation | 2,901 | 1,731 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 10,266 | 413 | |||||
Inventories | (903 | ) | (1,243 | ) | |||
Prepaid expenses and other assets | (15 | ) | 778 | ||||
Accounts payable | (3,790 | ) | 1,079 | ||||
Accrued liabilities | (4,688 | ) | (2,492 | ) | |||
Deferred revenue | 446 | 159 | |||||
Deferred income tax | 108 | 1,709 | |||||
Liabilities acquired in acquisitions | — | — | |||||
Net cash provided by operating activities | 18,382 | 13,812 | |||||
Investing activities: | |||||||
Acquisition of businesses, net of cash acquired | (4,649 | ) | (12,078 | ) | |||
Purchases of property and equipment | (1,921 | ) | (1,399 | ) | |||
Purchase of intangible assets | 2 | — | |||||
Net cash used in investing activities | (6,568 | ) | (13,477 | ) | |||
Financing activities: | |||||||
Proceeds from stock option exercises and Employee Stock Purchase Program purchases | 623 | 1,319 | |||||
Excess tax benefit on the exercise of stock options | — | 1,054 | |||||
Repurchase of common stock | (9,063 | ) | (1,312 | ) | |||
Taxes paid related to net share settlement of equity awards | (2,017 | ) | (460 | ) | |||
Contingent consideration earn-out | (1,284 | ) | — | ||||
Proceeds from short-term borrowings | 6,000 | — | |||||
Payments on borrowings | (6,000 | ) | — | ||||
Net cash used in financing activities | (11,741 | ) | 601 | ||||
Exchange rate changes effect on cash and cash equivalents | (1,257 | ) | (495 | ) | |||
Net increase in cash and cash equivalents | (1,184 | ) | 441 | ||||
Cash and cash equivalents, beginning of period | 82,469 | 66,558 | |||||
Cash and cash equivalents, end of period | $ | 81,285 | $ | 66,999 |
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES | |||||||
RECONCILIATION OF NON-GAAP ADJUSTMENTS (UNAUDITED) | |||||||
(in thousands, except per share amounts) | |||||||
Quarter Ended | |||||||
March 31, 2016 | March 31, 2015 | ||||||
GAAP based results: | |||||||
Income before provision for income tax | $ | 11,667 | $ | 12,517 | |||
Non-GAAP adjustments: | |||||||
Intangibles Amortization - Cost of revenue | 601 | 682 | |||||
Intangibles Amortization - Operating expense | 2,135 | 955 | |||||
Intangible asset impairment - Operating expense | — | — | |||||
Recall Accrual | 267 | — | |||||
Restructuring | 35 | 156 | |||||
Non-GAAP income before provision for income tax | 14,705 | 14,310 | |||||
Income tax expense, as adjusted | 3,575 | 4,036 | |||||
Non-GAAP net income | $ | 11,130 | $ | 10,274 | |||
Non-GAAP earnings per share: | |||||||
Basic | $ | 0.34 | $ | 0.32 | |||
Diluted | $ | 0.34 | $ | 0.31 | |||
Weighted-average shares | |||||||
used to compute | |||||||
Basic non-GAAP earnings per share | 32,606 | 32,127 | |||||
Diluted non-GAAP earnings per share | 33,222 | 33,097 | |||||
GAAP Gross profit | 54,259 | 53,608 | |||||
Amortization of intangibles | 601 | 682 | |||||
Recall Accrual | 267 | — | |||||
Non-GAAP Gross Profit | 55,127 | 54,290 | |||||
Non-GAAP Gross Margin | 63.1 | % | 60.7 | % | |||
GAAP Operating profit | 11,211 | 13,346 | |||||
Amortization of intangibles | 2,736 | 1,637 | |||||
Recall Accrual | 267 | — | |||||
Restructuring and other charges | 35 | 156 | |||||
Non-GAAP Operating profit | 14,249 | 15,139 | |||||
Non-GAAP Operating margin | 16.3 | % | 16.9 | % |
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end