NxStage Reports Record Revenue For The Second Quarter Of Fiscal 2012
Highlights:
- Revenue Increases to
$59.0 million , up 10% from Q2’11 - Home Revenue Increases to
$30.7 million , up 14% from Q2’11 - Gross Margin Increases to 38%, up from 35% in Q2’11
- Company Announces European Market Approval for Enhancements to System One
NxStage®
(Logo: http://photos.prnewswire.com/prnh/20110503/MM94799LOGO)
Revenue for the second quarter of 2012 increased 10% to
Home revenue for the second quarter of 2012 increased 14% to a record
Home and more frequent hemodialysis with the System One is great therapy that has been consistently reported to give patients access to a much richer and longer life. We continue to show that our therapy can benefit patients, providers and payors, stated
Critical Care revenue increased 9% to
Our results in the second quarter reflect solid and consistent progress. We achieved record revenues, a 300 bps improvement in gross margin, and advanced our robust product pipeline, continued Burbank. In sum, our growth strategy remains on track and we remain confident in our outlook for 2012.
NxStage reported a net loss of
For the second quarter of 2012, the Company reported Adjusted EBITDA, adjusted for stock-based compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expenses, of
Separately, the Company announced that the European regulatory authority has approved a new feature to automate the administration of bolus for use in the EU. Burbank concluded, This approval enables us to further advance the simplicity and safety of the System One in
Guidance:
For the third quarter of 2012, the Company is forecasting revenues to be between
This release contains a non-GAAP financial measure. A reconciliation of the Company’s non-GAAP financial measure to its most comparable GAAP financial measure is in the exhibits to this press release.
Conference Call:
NxStage will also host a conference call today,
A replay of the conference call will be available 2 hours after the completion of the call through
About NxStage
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words anticipate, believe, expect, estimate, plan, and similar expressions are generally intended to identify forward-looking statements. Examples of these forward-looking statements include statements as to the anticipated demand for the Company’s products, anticipated operating results, including revenues, loss, gross margin and Adjusted EBITDA numbers, and other expectations as to future operating results. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond NxStage’s control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements, including market acceptance and demand for NxStage’s products, growth in home and/or daily hemodialysis, unanticipated difficulties in achieving operational efficiencies and cost reductions, changes in reimbursement for home and daily hemodialysis, changes in the regulatory environment, changes in the historical purchasing patterns and preferences of our customers, including DaVita Inc. and Fresenius Medical Care, and certain other factors that may affect future operating results and which are detailed in NxStage’s filings with the
In addition, the statements in this press release represent NxStage’s expectations and beliefs as of the date of this press release. NxStage anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while NxStage may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing NxStage’s expectations or beliefs as of any date subsequent to the date of this press release.
Contact:
VP, Investor Relations
ksheppard@nxstage.com
Non-GAAP Financial Measure
The Company discloses a certain non-GAAP financial measure to supplement the Company’s consolidated financial statements presented on a GAAP basis. This non-GAAP measure is not in accordance with, or an alternative for, generally accepted accounting principles in
| Condensed Consolidated Statements of Comprehensive Loss (in thousands, except per share) (unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended June 30, | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Revenues | $ | 59,009 | $ | 53,768 | $ | 115,960 | $ | 104,332 | |||||||
| Cost of revenues | 36,620 | 34,903 | 72,259 | 67,434 | |||||||||||
| Gross profit | 22,389 | 18,865 | 43,701 | 36,898 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling and marketing | 9,918 | 9,369 | 19,838 | 18,579 | |||||||||||
| Research and development | 4,250 | 3,589 | 8,147 | 7,306 | |||||||||||
| Distribution | 4,582 | 4,431 | 9,114 | 8,589 | |||||||||||
| General and administrative | 6,930 | 5,460 | 13,552 | 11,042 | |||||||||||
| Total operating expenses | 25,680 | 22,849 | 50,651 | 45,516 | |||||||||||
| Loss from operations | (3,291) | (3,984) | (6,950) | (8,618) | |||||||||||
| Other expense: | |||||||||||||||
| Interest expense | (1,456) | (1,170) | (2,649) | (2,327) | |||||||||||
| Other expense, net | (79) | (170) | (131) | (196) | |||||||||||
| (1,535) | (1,340) | (2,780) | (2,523) | ||||||||||||
| Net loss before income taxes | (4,826) | (5,324) | (9,730) | (11,141) | |||||||||||
| Provision for income taxes | 237 | 226 | 477 | 419 | |||||||||||
| Net loss | $ | (5,063) | $ | (5,550) | $ | (10,207) | $ | (11,560) | |||||||
| Net loss per share, basic and diluted | $ | (0.09) | $ | (0.10) | $ | (0.18) | $ | (0.22) | |||||||
| Weighted-average shares outstanding, basic and diluted | 57,733 | 54,014 | 55,319 | 53,716 | |||||||||||
| Other comprehensive loss: | |||||||||||||||
| Foreign currency (loss) gain | $ | (249) | $ | 80 | $ | (100) | $ | 304 | |||||||
| Other (loss) gain | (48) | 1 | (24) | 6 | |||||||||||
| Comprehensive loss | $ | (5,360) | $ | (5,469) | $ | (10,331) | $ | (11,250) | |||||||
| Condensed Consolidated Balance Sheets (in thousands, except share data) (unaudited) | |||||||||||
| | December 31, | ||||||||||
| 2012 | 2011 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 102,859 | $ | 102,909 | |||||||
| Accounts receivable, net | 17,643 | 15,808 | |||||||||
| Inventory | 34,670 | 32,775 | |||||||||
| Prepaid expenses and other current assets | 2,084 | 2,777 | |||||||||
| Total current assets | 157,256 | 154,269 | |||||||||
| Property and equipment, net | 29,049 | 17,599 | |||||||||
| Field equipment, net | 9,971 | 12,182 | |||||||||
| Deferred cost of revenues | 39,792 | 41,132 | |||||||||
| Intangible assets, net | 21,217 | 22,615 | |||||||||
| Goodwill | 42,698 | 42,698 | |||||||||
| Other assets | 2,066 | 1,213 | |||||||||
| Total assets | $ | 302,049 | $ | 291,708 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 14,559 | $ | 15,634 | |||||||
| Accrued expenses | 17,932 | 15,165 | |||||||||
| Total current liabilities | 32,491 | 30,799 | |||||||||
| Deferred revenues | 55,668 | 57,014 | |||||||||
| Long-term debt | — | 43,235 | |||||||||
| Other long-term liabilities | 18,612 | 9,474 | |||||||||
| Total liabilities | 106,771 | 140,522 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity: | |||||||||||
| Undesignated preferred stock: par value issued and outstanding as of | — | — | |||||||||
| Common stock: par value 56,167,090 shares issued as of | 59 | 56 | |||||||||
| Additional paid-in capital | 544,997 | 489,542 | |||||||||
| Accumulated deficit | (340,035) | (329,828) | |||||||||
| Accumulated other comprehensive loss | (192) | (68) | |||||||||
| Treasury stock, at cost: 541,584 and 480,923 shares as of 31, 2011, respectively | (9,551) | (8,516) | |||||||||
| Total stockholders’ equity | 195,278 | 151,186 | |||||||||
| Total liabilities and stockholders’ equity | $ | 302,049 | $ | 291,708 | |||||||
| Cash Flows from Operating Activities (in thousands) (unaudited) | |||||||
| Six Months Ended June 30, | |||||||
| 2012 | 2011 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (10,207) | $ | (11,560) | |||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
| Depreciation and amortization | 11,580 | 11,459 | |||||
| Stock-based compensation | 6,252 | 6,701 | |||||
| Other | 2,345 | 1,737 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (1,851) | (1,753) | |||||
| Inventory | (7,809) | (13,363) | |||||
| Prepaid expenses and other assets | (170) | (546) | |||||
| Accounts payable | (946) | 5,471 | |||||
| Accrued expenses and other liabilities | 3,038 | (2,446) | |||||
| Deferred revenues | (1,346) | 629 | |||||
| Net cash provided by (used in) operating activities | $ | 886 | $ | (3,671) | |||
| Revenues by Segment (in thousands) (unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended June 30, | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||
| System One segment | |||||||||||||||
| Home | $ | 30,693 | $ | 27,013 | $ | 60,246 | $ | 53,058 | |||||||
| Critical Care | 9,371 | 8,591 | 19,158 | 16,029 | |||||||||||
| Total System One segment | 40,064 | 35,604 | 79,404 | 69,087 | |||||||||||
| In-Center segment | 18,229 | 18,164 | 35,840 | 35,245 | |||||||||||
| Other | 716 | — | 716 | — | |||||||||||
| Total | $ | 59,009 | $ | 53,768 | $ | 115,960 | $ | 104,332 | |||||||
| Non-GAAP Financial Measures (in millions) (unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended June 30, | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Net loss | $ | (5.1) | $ | (5.6) | $ | (10.2) | $ | (11.6) | |||||||
| Less: Depreciation, amortization, interest, and taxes | 7.6 | 7.3 | 14.7 | 14.4 | |||||||||||
| Less: Adjusting items* | (0.8) | 0.1 | (1.0) | 0.1 | |||||||||||
| Adjusted EBITDA | $ | 1.7 | $ | 1.8 | $ | 3.5 | $ | 2.9 | |||||||
| * Adjusting items include stock-based compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expenses | |||||||||||||||
| Non-GAAP Financial Guidance (in millions) (unaudited) | |||||||
| Three Months Ended | |||||||
| High Estimate | Low Estimate | ||||||
| Net loss | $ | (3.5) | $ | (4.5) | |||
| Less: Depreciation, amortization, interest, and taxes | 6.6 | 6.6 | |||||
| Less: Adjusting items* | (0.6) | (0.6) | |||||
| Adjusted EBITDA | $ | 2.5 | $ | 1.5 | |||
| * Adjusting items include stock-based compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expenses | |||||||
SOURCE
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