LAWRENCE, Mass., Feb. 27,
2014 /PRNewswire/ -- NxStage® Medical, Inc.
(Nasdaq: NXTM), a leading manufacturer of innovative dialysis
products, today reported record financial results for the three and
twelve months ended December 31, 2013, that include revenue
slightly above its recent guidance.
Revenue for the full-year 2013 increased 9 percent to
$263.4 million, compared with revenue
of $242.1 million for the full-year
2012. Revenue for the fourth quarter of 2013 increased 7
percent to a record $69.4 million
compared with revenue of $65.0
million for the fourth quarter of 2012. The increase
in both periods was led by the Company's solid performance in the
Home.
Home delivered 8 percent annual growth, with revenue increasing
to $132.9 million for the full-year
2013 compared with revenue of $123.6
million for the full-year 2012. Home revenue increased
to $35.1 million in the fourth
quarter of 2013 compared with revenue of $31.4 million in the fourth quarter of 2012,
representing a 12 percent increase.
Critical Care delivered 11 percent annual growth, with revenue
increasing to $43.8 million for the
full-year 2013 compared with revenue of $39.5 million for the full-year 2012.
Revenue in Critical Care increased to $11.6
million in the fourth quarter of 2013, compared with revenue
of $11.3 million in the fourth
quarter of 2012, representing a 3 percent increase.
The Company's in-center business, Medisystems, delivered 6
percent annual growth with revenue increasing to $81.9 million for the full-year 2013, compared
with revenue of $76.9 million for the
full-year 2012. Fourth quarter 2013 revenue was $20.6 million, compared with $21.5 million in the fourth quarter of 2012.
NxStage reported a net loss of $18.6
million or $(0.31) per share
for the full-year 2013 compared with a net loss of $15.2 million or $(0.26) per share for the full-year 2012.
The Company reported a net loss of $5.2
million or $(0.08) per share
for the fourth quarter of 2013 compared with a net loss of
$2.4 million or $(0.04) per share for the fourth quarter of 2012.
The Company's net loss for 2013 reflects a nearly $6 million impact from our market development
activities with NxStage Kidney Care.
"At the start of 2013, we placed a major focus on growth and
investment to take advantage of the significant opportunity in
front of us and create long term shareholder value," stated
Jeffrey H. Burbank, Founder and
Chief Executive Officer of NxStage. "We made great progress across
a number of key areas as evidenced by early positive momentum with
our direct to patient marketing and solid execution on our
innovation pipeline."
Burbank continued, "Similar to this past year, 2014 will be
focused on growth and investment. We remain confident in the
strength of our near-term initiatives to achieve our target of 15%
annual growth in the Home and are continuing to invest
significantly in long-term initiatives to increase patient access
to our therapies and accelerate adoption. These initiatives include
another robust innovation pipeline with peritoneal dialysis and
next generation products, and expanded market development
activities with a cadence of one to three additional NxStage Kidney
Care centers each quarter in 2014, leading to a total of
approximately 10 to 15 centers by the end of this year."
Guidance:
For the full fiscal year 2014, the Company is forecasting
revenue to be between $283 and $288
million, and a net loss in the range of $23.0 to $27.0 million or $(0.37) to $(0.44) per share. The Company's net
loss guidance includes losses in the range of $15 million related to the Company's investment
in NxStage Kidney Care.
For the first quarter of 2014, the Company expects revenue to be
in a range of $69.5 and $70.5 million, and a net loss in the range of
$6.5 to $7.5 million or $(0.11) to $(0.12) per share.
"We remain committed to maintaining strong financial discipline.
Excluding our investment in NxStage Kidney Care, we expect to have
positive operating income in 2015. Together with $84 million in cash at year end and a strong
balance sheet, I believe that we are well positioned to fund our
strategic initiatives to expand the home market," stated
Matthew W. Towse, Chief Financial
Officer.
Conference Call:
NxStage will also host a conference call today, Thursday, February 27, 2014, at 9:00 a.m. Eastern Time to discuss its fourth
quarter and full-year financial results. To listen to the
conference call, please dial 877-392-9886 (domestic) or
707-287-9329 (international). The call will also be webcast
LIVE and can be accessed via the investor relations section of the
Company's website at http://ir.nxstage.com.
A replay of the conference call will be available two hours
after the completion of the call through March 7, 2014. To access the replay, dial
855-859-2056 (domestic) or 404-537-3406 (international) and
reference conference ID 31404719. An online archive of
the conference call can be accessed via the investor relations
section of the Company's website at http://ir.nxstage.com.
About NxStage
NxStage Medical, Inc. (Nasdaq: NXTM) is a medical device
company, headquartered in Lawrence,
Massachusetts, USA, that develops, manufactures and markets
innovative products for the treatment of ESRD and acute kidney
failure. For more information on NxStage and its products, please
visit the company's website at www.nxstage.com.
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 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
domestically and internationally, growth in home and/or more
frequent hemodialysis, unanticipated difficulties in achieving
operational efficiencies and cost reductions, changes in
reimbursement for home and more frequent hemodialysis, changes in
the regulatory environment, changes in the historical purchasing
patterns and preferences of our customers, including DaVita
Healthcare Partners Inc. and Fresenius Medical Care, including in
response to NxStage Kidney Care, and certain other factors that may
affect future operating results and which are detailed in NxStage's
filings with the Securities and Exchange Commission, including its
Quarterly Report on Form 10-Q for the quarter ended September 30, 2013.
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
|
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 the United
States and may be different from similar non-GAAP financial
measures used by other companies. The non-GAAP financial measure
disclosed by the Company is not meant to be considered superior to
or a substitute for results of operations prepared in accordance
with GAAP. Management uses Adjusted EBITDA (EBITDA adjusted for
stock based-compensation, deferred revenue recognized,
manufacturing transition costs and other non-cash expenses) to
understand operational cash usage. The Company believes the
non-GAAP financial measure provides useful and supplementary
information allowing investors greater transparency to one measure
used by management. The non-GAAP financial measure is meant
to supplement, and to be viewed in conjunction with, GAAP financial
measures. The non-GAAP financial measure is reconciled to the
most comparable GAAP financial measure below.
NxStage Medical,
Inc.
Consolidated
Statements of Comprehensive Loss
(in thousands,
except per share data)
(unaudited)
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
69,450
|
|
$
|
65,020
|
|
$
|
263,429
|
|
$
|
242,132
|
Cost of
revenues
|
41,562
|
|
39,661
|
|
160,926
|
|
149,324
|
Gross
profit
|
27,888
|
|
25,359
|
|
102,503
|
|
92,808
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling and
marketing
|
13,056
|
|
10,479
|
|
47,842
|
|
40,485
|
Research and
development
|
4,963
|
|
4,690
|
|
18,887
|
|
17,111
|
Distribution
|
5,975
|
|
5,043
|
|
21,246
|
|
18,888
|
General and
administrative
|
8,472
|
|
7,057
|
|
32,326
|
|
27,530
|
Total operating
expenses
|
32,466
|
|
27,269
|
|
120,301
|
|
104,014
|
Loss from
operations
|
(4,578)
|
|
(1,910)
|
|
(17,798)
|
|
(11,206)
|
Other
expense:
|
|
|
|
|
|
|
|
Interest
expense
|
(149)
|
|
(91)
|
|
(611)
|
|
(2,766)
|
Other (expense)
income, net
|
(69)
|
|
(30)
|
|
(397)
|
|
(148)
|
|
(218)
|
|
(121)
|
|
(1,008)
|
|
(2,914)
|
Net loss before
income taxes
|
(4,796)
|
|
(2,031)
|
|
(18,806)
|
|
(14,120)
|
(Benefit from)
provision for income taxes
|
380
|
|
333
|
|
(245)
|
|
1,033
|
Net loss
|
$
|
(5,176)
|
|
$
|
(2,364)
|
|
$
|
(18,561)
|
|
$
|
(15,153)
|
Net loss per share,
basic and diluted
|
$
|
(0.08)
|
|
$
|
(0.04)
|
|
$
|
(0.31)
|
|
$
|
(0.26)
|
Weighted-average
shares outstanding, basic and diluted
|
60,940
|
|
59,076
|
|
60,261
|
|
57,890
|
Other comprehensive
(loss) gain, net of tax
|
44
|
|
(49)
|
|
(258)
|
|
538
|
Comprehensive
loss
|
$
|
(5,132)
|
|
$
|
(2,413)
|
|
$
|
(18,819)
|
|
$
|
(14,615)
|
|
|
|
|
|
|
|
|
NxStage Medical,
Inc.
Consolidated
Balance Sheets
(in thousands,
except share data)
(unaudited)
|
|
|
|
|
|
December
31,
|
|
2013
|
|
2012
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
84,134
|
|
$
|
106,439
|
Accounts receivable,
net
|
20,158
|
|
18,990
|
Inventory
|
37,801
|
|
33,504
|
Prepaid expenses and
other current assets
|
4,027
|
|
2,534
|
Total current
assets
|
146,120
|
|
161,467
|
Property and
equipment, net
|
52,478
|
|
36,320
|
Field equipment,
net
|
13,041
|
|
10,101
|
Deferred cost of
revenues
|
34,730
|
|
38,028
|
Intangible assets,
net
|
17,194
|
|
19,819
|
Goodwill
|
41,817
|
|
42,421
|
Other
assets
|
1,582
|
|
3,793
|
Total
assets
|
$
|
306,962
|
|
$
|
311,949
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
14,610
|
|
$
|
16,645
|
Accrued
expenses
|
21,025
|
|
20,400
|
Current portion of
long-term debt
|
102
|
|
—
|
Other current
liabilities
|
1,870
|
|
2,187
|
Total current
liabilities
|
37,607
|
|
39,232
|
Deferred
revenues
|
53,277
|
|
59,262
|
Long-term
debt
|
1,044
|
|
—
|
Other long-term
liabilities
|
20,273
|
|
15,864
|
Total
liabilities
|
112,201
|
|
114,358
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Undesignated
preferred stock: par value $0.001, 5,000,000 shares authorized;
no shares issued and outstanding as
of December 31, 2013 and 2012
|
—
|
|
—
|
Common stock: par
value $0.001, 100,000,000 shares authorized; 61,666,048
and
59,850,117 shares issued as of
December 31, 2013 and 2012, respectively
|
61
|
|
59
|
Additional paid-in
capital
|
567,468
|
|
551,594
|
Accumulated
deficit
|
(363,542)
|
|
(344,981)
|
Accumulated other
comprehensive income (loss)
|
212
|
|
470
|
Treasury stock, at
cost: 575,895 and 541,584 shares as of December 31, 2013 and
2012, respectively
|
(9,963)
|
|
(9,551)
|
Total NxStage
Medical, Inc. stockholders' equity
|
194,236
|
|
197,591
|
Noncontrolling
interest
|
525
|
|
—
|
Total stockholders'
equity
|
194,761
|
|
197,591
|
Total liabilities and
stockholders' equity
|
$
|
306,962
|
|
$
|
311,949
|
|
|
|
|
NxStage Medical,
Inc.
Cash Flows from
Operating Activities
(in
thousands)
(unaudited)
|
|
|
|
|
|
Twelve Months
Ended
December 31,
|
|
2013
|
|
2012
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(18,561)
|
|
$
|
(15,153)
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
24,848
|
|
23,673
|
Stock-based
compensation
|
8,638
|
|
11,403
|
Other
|
2,628
|
|
3,517
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(1,095)
|
|
(3,141)
|
Inventory
|
(20,076)
|
|
(14,545)
|
Prepaid expenses and
other assets
|
(484)
|
|
(1,623)
|
Accounts
payable
|
(2,233)
|
|
839
|
Accrued expenses and
other liabilities
|
1,081
|
|
5,263
|
Deferred
revenues
|
(4,887)
|
|
(3,992)
|
Net cash (used in)
provided by operating activities
|
$
|
(10,141)
|
|
$
|
6,241
|
|
|
|
|
|
NxStage Medical,
Inc.
Revenues by
Segment
(in
thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
System One
segment
|
|
|
|
|
|
|
|
Home
|
$
|
35,148
|
|
$
|
31,418
|
|
$
|
132,944
|
|
$
|
123,589
|
Critical
Care
|
11,605
|
|
11,283
|
|
43,812
|
|
39,540
|
Total System One
segment
|
46,753
|
|
42,701
|
|
176,756
|
|
163,129
|
In-Center
segment
|
20,645
|
|
21,450
|
|
81,852
|
|
76,927
|
Other
|
2,052
|
|
869
|
|
4,821
|
|
2,076
|
Total
|
$
|
69,450
|
|
$
|
65,020
|
|
$
|
263,429
|
|
$
|
242,132
|
|
|
|
|
|
|
|
|
NxStage Medical,
Inc.
Non-GAAP Financial
Measures
(in
millions)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(5.2)
|
|
$
|
(2.4)
|
|
$
|
(18.6)
|
|
$
|
(15.2)
|
Less: Depreciation,
amortization, interest, and taxes
|
7.0
|
|
6.6
|
|
25.6
|
|
27.6
|
Less: Adjusting
items*
|
(4.4)
|
|
(2.1)
|
|
(8.8)
|
|
(4.4)
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
(2.6)
|
|
$
|
2.1
|
|
$
|
(1.8)
|
|
$
|
8.0
|
|
|
|
|
|
|
|
|
* Adjusting items
include stock-based compensation, deferred revenue recognized,
manufacturing transition costs and other non-cash
expenses
|
Logo: http://photos.prnewswire.com/prnh/20110503/MM94799LOGO
SOURCE NxStage Medical, Inc.