NxStage(R) Reports Third Quarter 2009 Financial Results and Raises Revenue Guidance for Fiscal 2009
Highlights:
– Revenue Exceeds Expectations: $38.0 million, up 25% from $30.5 million in Q3’08
– Home Market: $16.4 million, up 32% from $12.4 million in Q3’08
– Gross Margin: 25%, up from 16% in Q3’08
Net revenue for the third quarter of 2009 was
The Company’s third quarter revenue represents an increase of 25 percent when compared with revenue of
Our strategy to drive further improvements in both our operating and financial positions proved to be very effective during the third quarter. Our efforts led to better overall execution compared to our expectations, and stronger than anticipated demand across our three markets, stated
Revenue within the Company’s Home market was
Gross margin improved to 25 percent in the third quarter of 2009 as compared to 16 percent in the third quarter of 2008.
Net loss for the third quarter of 2009 was
Cash and cash equivalents as of
For the third quarter of 2009, the Company had an Adjusted EBITDA loss of
Guidance:
For the fourth quarter of 2009, the Company is forecasting revenue to be between
Supported by its strong performance year to date in 2009, the Company now anticipates revenue for the 2009 fiscal year to be in a range of
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 at
A replay of the conference call will be available 3 hours after the start 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 anticipated operating results, including revenues, loss, 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 major customers, including
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:Kristen K. Sheppard, Esq. VP, Investor Relations 978-332-5923 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
NxStage Medical, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenues $38,033 $30,466 $108,166 $93,087 Cost of revenues 28,488 25,684 82,749 79,872 ------ ------ ------ ------ Gross profit 9,545 4,782 25,417 13,215 ----- ----- ------ ------ Operating expenses: Selling and marketing 7,449 6,839 22,091 20,937 Research and development 2,707 1,986 7,380 6,474 Distribution 3,267 3,472 10,476 10,202 General and administrative 4,808 4,744 14,512 14,443 ----- ----- ------ ------ Total operating expenses 18,231 17,041 54,459 52,056 ------ ------ ------ ------ Loss from operations (8,686) (12,259) (29,042) (38,841) ------ ------- ------- ------- Other expense: Interest income 7 146 32 453 Interest expense (1,130) (1,017) (5,502) (2,908) Change in fair value of financial instruments - (1,835) - 251 Other (expense) income, net (59) 138 20 (155) --- --- -- ---- (1,182) (2,568) (5,450) (2,359) ------ ------ ------ ------ Net loss before income taxes (9,868) (14,827) (34,492) (41,200) Provision for income taxes 179 143 298 248 -------- -------- -------- -------- Net loss $(10,047) $(14,970) $(34,790) $(41,448) ======== ======== ======== ======== Net loss per share, basic and diluted $(0.22) $(0.33) $(0.75) $(1.03) ====== ====== ====== ====== Weighted-average shares outstanding, basic and diluted 46,672 45,067 46,600 40,204 ====== ====== ====== ====== NxStage Medical, Inc. Condensed Consolidated Balance Sheets (in thousands, except share and per share data) (unaudited) September 30, December 31, 2009 2008 ---- ---- ASSETS Current assets: Cash and cash equivalents $22,095 $26,642 Accounts receivable, net 11,668 11,886 Inventory 27,754 30,862 Prepaid expenses and other current assets 2,073 2,011 ----- ----- Total current assets 63,590 71,401 Property and equipment, net 10,630 12,254 Field equipment, net 25,152 30,445 Deferred cost of revenues 23,592 23,711 Intangible assets, net 28,907 31,004 Goodwill 42,698 42,698 Other assets 901 553 --- --- Total assets $195,470 $212,066 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $17,341 $17,183 Accrued expenses 10,652 10,746 Current portion of long-term debt 62 9,110 -- ----- Total current liabilities 28,055 37,039 Deferred revenue 32,766 29,634 Long-term debt 37,226 21,054 Other long-term liabilities 2,008 1,892 ----- ----- Total liabilities 100,055 89,619 Commitments and contingencies Stockholders' equity: Undesignated preferred stock: par value$0.001 , 5,000,000 shares authorized; no shares issued and outstanding, as ofSeptember 30, 2009 and December 31, 2008 - - Common stock: par value$0.001 , 100,000,000 shares authorized; 46,695,539 and 46,548,585 shares issued and outstanding, as ofSeptember 30, 2009 andDecember 31, 2008 , respectively 47 47 Additional paid-in capital 362,934 355,266 Accumulated deficit (268,037) (233,247) Accumulated other comprehensive income 471 381 --- --- Total stockholders' equity 95,415 122,447 ------ ------- Total liabilities and stockholders' equity $195,470 $212,066 ======== ======== NxStage Medical, Inc. Cash Flows from Operating Activities (in thousands) (unaudited) Nine Months Ended September 30, ------------- 2009 2008 ---- ---- Cash flows from operating activities: Net loss $(34,790) $(41,448) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 15,367 14,073 Stock-based compensation 6,392 4,456 Change in fair value of financial instruments - (251) Other 1,977 660 Changes in operating assets and liabilities: Accounts receivable 337 (1,248) Inventory (3,707) (24,511) Prepaid expenses and other current assets 682 1,073 Accounts payable 25 (4,713) Accrued expenses and other liabilities 1,455 (3,375) Deferred revenue (653) 8,331 ---- ----- Net cash used in operating activities $(12,915) $(46,953) ======== ======== NxStage Medical, Inc. Revenues by Segment (in thousands) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- System One segment Home $16,356 $12,412 $45,914 $34,807 Critical Care 5,672 4,401 15,381 13,107 ----- ----- ------ ------ Total System One segment 22,028 16,813 61,295 47,914 In-Center segment 16,005 13,653 46,871 45,173 ------ ------ ------ ------ Total $38,033 $30,466 $108,166 $93,087 ======= ======= ======== ======= NxStage Medical, Inc. Non-GAAP Financial Measures (in millions) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net loss $10.0 $15.0 $34.8 $41.4 Less: Depreciation amortization, interest, and taxes (6.6) (5.9) (21.2) (16.9) Less: Adjusting items* (1.0) (1.8) (2.1) (1.3) ---- ---- ----- ----- Adjusted EBITDA loss $2.4 $7.3 $11.5 $23.2 ==== ==== ===== ===== * Adjusting items include stock-based compensation, deferred revenue recognized and other non-recurring expenses NxStage Medical, Inc. Non-GAAP Financial Guidance (in millions) Three Months Ended December 31, 2009 ----------------- Low High Estimate Estimate -------- -------- Net loss $8.5 $9.5 Less: Depreciation amortization, interest, and taxes (6.5) (6.5) Less: Adjusting items* (0.5) (0.5) ---- ---- Adjusted EBITDA loss $1.5 $2.5 ==== ==== * Adjusting items include stock-based compensation, deferred revenue recognized and other non-recurring expenses
SOURCE
Kristen K. Sheppard, Esq.
VP, Investor Relations of NxStage Medical, Inc.
+1-978-332-5923
ksheppard@nxstage.com