LAWRENCE, Mass., Feb. 26, 2015 /PRNewswire/ -- NxStage
Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative
dialysis products, today reported record revenue for the fourth
quarter and fiscal year ended December 31, 2014, topping its
recent guidance.
Total revenue for the full-year 2014 increased 14 percent to
$301.5 million, compared with revenue
of $263.4 million for the full-year
2013. Total revenue for the fourth quarter of 2014 increased 15
percent to a record $79.9 million,
compared with revenue of $69.5
million for the fourth quarter of 2013. The increases in
both periods were driven by outperformance in the System One
segment which consists of Home and Critical Care.
Home revenue increased 19 percent to $157.8 million for the full-year 2014, compared
with revenue of $132.9 million for
the full-year 2013, exceeding the Company's target for 15% annual
growth. Home revenue increased 21 percent to $42.5 million in the fourth quarter of 2014,
compared with revenue of $35.1
million in the fourth quarter of 2013, exceeding the top end
of its recent guidance. The growth in both periods was primarily
driven by increased adoption of the NxStage® System One™, the first
and only portable hemodialysis system cleared specifically by
the U.S. Food & Drug Administration (FDA) for
home hemodialysis and home nocturnal hemodialysis.
Critical Care revenue increased 27 percent to $55.6 million for the full-year 2014, compared
with revenue of $43.8 million for the
full-year 2013. Revenue in Critical Care increased 31 percent to
$15.2 million in the fourth quarter
of 2014, compared with revenue of $11.6
million in the fourth quarter of 2013.
Consistent with the Company's guidance, In-Center segment
revenue was $78.9 million for the
full-year 2014, compared with revenue of $81.9 million for the full-year 2013. Fourth
quarter 2014 revenue was $19.5
million, compared with $20.6
million in the fourth quarter of 2013.
Net loss attributable to NxStage Medical, Inc.'s stockholders
was $23.9 million for the full-year
2014, compared with a net loss of $18.6
million for the full-year 2013. Net loss attributable to
NxStage Medical, Inc.'s stockholders was $4.9 million for the fourth quarter of 2014,
compared with a net loss of $5.2
million for the fourth quarter of 2013. NxStage Medical,
Inc.'s net loss for both the full-year and fourth quarter of 2014
was better than its guidance and included $14.6 million and $4.5
million, respectively, in anticipated losses from operations
from the Company's Services segment, NxStage Kidney Care, less
noncontrolling interest.
"Our strong fourth quarter results capped a year of solid growth
and execution for NxStage. We delivered on our key goals for 2014,
exceeding our target of 15% annual growth in the Home, advancing
our growth strategy and extending our market leadership with yet
another first-ever indication, home nocturnal hemodialysis," stated
Jeffrey H. Burbank, Founder and
Chief Executive Officer of NxStage.
Burbank continued, "We remain confident that we can continue
this momentum, while investing in our future game-changing
technologies. Our priorities for 2015 remain the same: 15% annual
growth in the Home, strong top-line growth, and progress toward
sustainable operating profitability. As we look beyond 2015, we
believe we are well positioned to capitalize on the tremendous
market opportunity with the System One. With an innovative pipeline
that includes, among others, our peritoneal dialysis system and our
next generation hemodialysis system, we intend to extend our reach
to a much larger patient base across the broader chronic and
critical care dialysis markets. We look forward to bringing these
revolutionary innovations to the market to improve the standard of
renal care for patients and deliver higher value to our
shareholders."
Guidance:
The Company is forecasting revenue to be between $324.0 million and $328.0 million for the full
fiscal year 2015, and between $77.5 million
and $78.5 million for the first quarter of 2015. The Company
also expects a net loss in the range of $20.0 million to $24.0 million for the full
fiscal year 2015, and a net loss in the range of $6.5 million to $7.5 million for the first
quarter of 2015. The majority of the Company's projected net loss
in both periods is expected to be related to the Company's
investment in NxStage Kidney Care.
"We remain committed to maintaining strong financial discipline.
We are targeting roughly 50% reduction in cash usage in 2015
compared with 2014. More importantly, excluding our investment in
NxStage Kidney Care, we expect to transition to quarterly positive
operating income during 2015. This coupled with a strong liquidity
position including over $50 million
in cash at the end of last year, allows us to execute on our plans
utilizing our current balance sheet," stated Matthew W. Towse, Chief Financial
Officer.
Conference Call:
NxStage will also host a conference call today, Thursday,
February 26, 2015, 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 6, 2015. To access the replay, dial
855-859-2056 (domestic) or 404-537-3406 (international) and
reference conference ID 65800439. 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.
About the NxStage System One
The NxStage System One is the first and only portable
hemodialysis machine cleared specifically by the U.S. Food &
Drug Administration (FDA) for home hemodialysis and home
nocturnal hemodialysis. Its simplicity and revolutionary size (just
over a foot tall) are intended to allow convenient use in patients'
homes and give patients the freedom to travel with their therapy.
When combined with the NxStage Pureflow SL Dialysis Preparation
System, patients are able to further simplify, using ordinary tap
water to create dialysis fluid. Unlike conventional hemodialysis
systems, the System One requires no special infrastructure to
operate. Under the guidance of their physician, patients can use
the NxStage System One, with their trained partners, where, how and
when it best meets their needs, including while they are sleeping -
at home or on vacation and at a medically appropriate treatment
frequency. The System One is also used to provide a range of
flexible therapy options in more traditional care settings such as
hospitals and dialysis centers. Its safety and efficacy have been
demonstrated by experience with more than 10 million treatments
with thousands of patients around the world. 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, 2014.
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
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,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
79,911
|
|
|
$
|
69,450
|
|
|
$
|
301,501
|
|
|
$
|
263,429
|
|
Cost of
revenues
|
49,059
|
|
|
41,562
|
|
|
185,598
|
|
|
160,926
|
|
Gross
profit
|
30,852
|
|
|
27,888
|
|
|
115,903
|
|
|
102,503
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
marketing
|
14,705
|
|
|
13,056
|
|
|
55,385
|
|
|
47,842
|
|
Research and
development
|
5,611
|
|
|
4,963
|
|
|
22,635
|
|
|
18,887
|
|
Distribution
|
6,539
|
|
|
5,975
|
|
|
26,001
|
|
|
21,246
|
|
General and
administrative
|
8,470
|
|
|
8,472
|
|
|
34,069
|
|
|
32,326
|
|
Total operating
expenses
|
35,325
|
|
|
32,466
|
|
|
138,090
|
|
|
120,301
|
|
Loss from
operations
|
(4,473)
|
|
|
(4,578)
|
|
|
(22,187)
|
|
|
(17,798)
|
|
Other
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(215)
|
|
|
(149)
|
|
|
(863)
|
|
|
(611)
|
|
Other expense,
net
|
(6)
|
|
|
(69)
|
|
|
(10)
|
|
|
(397)
|
|
|
(221)
|
|
|
(218)
|
|
|
(873)
|
|
|
(1,008)
|
|
Net loss before
income taxes
|
(4,694)
|
|
|
(4,796)
|
|
|
(23,060)
|
|
|
(18,806)
|
|
Provision for
(benefit from) income taxes
|
280
|
|
|
380
|
|
|
1,253
|
|
|
(245)
|
|
Net loss
|
(4,974)
|
|
|
(5,176)
|
|
|
(24,313)
|
|
|
(18,561)
|
|
Less: Net loss
attributable to noncontrolling interests
|
(122)
|
|
|
—
|
|
|
(367)
|
|
|
—
|
|
Net loss attributable
to stockholders of NxStage Medical, Inc.
|
$
|
(4,852)
|
|
|
$
|
(5,176)
|
|
|
$
|
(23,946)
|
|
|
$
|
(18,561)
|
|
Net loss per share,
basic and diluted
|
$
|
(0.08)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.39)
|
|
|
$
|
(0.31)
|
|
Weighted-average
shares outstanding, basic and diluted
|
62,271
|
|
|
60,940
|
|
|
61,700
|
|
|
60,261
|
|
Other comprehensive
(loss) income
|
(1,609)
|
|
|
44
|
|
|
(2,404)
|
|
|
(258)
|
|
Total comprehensive
loss
|
(6,583)
|
|
|
(5,132)
|
|
|
(26,717)
|
|
|
(18,819)
|
|
Less: Comprehensive
loss attributable to noncontrolling interests
|
(122)
|
|
|
—
|
|
|
(367)
|
|
|
—
|
|
Total comprehensive
loss attributable to stockholders of NxStage Medical,
Inc.
|
$
|
(6,461)
|
|
|
$
|
(5,132)
|
|
|
$
|
(26,350)
|
|
|
$
|
(18,819)
|
|
NxStage Medical,
Inc.
|
Consolidated
Balance Sheets
|
(in thousands,
except share data)
|
(unaudited)
|
|
|
December
31,
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
52,884
|
|
|
$
|
84,134
|
|
Accounts receivable,
net
|
24,099
|
|
|
20,158
|
|
Inventory
|
45,401
|
|
|
37,801
|
|
Prepaid expenses and
other current assets
|
6,767
|
|
|
4,027
|
|
Total current
assets
|
129,151
|
|
|
146,120
|
|
Property and
equipment, net
|
66,574
|
|
|
52,478
|
|
Field equipment,
net
|
21,118
|
|
|
13,041
|
|
Deferred cost of
revenues
|
34,039
|
|
|
34,730
|
|
Intangible assets,
net
|
14,370
|
|
|
17,194
|
|
Goodwill
|
41,817
|
|
|
41,817
|
|
Other
assets
|
2,657
|
|
|
1,582
|
|
Total
assets
|
$
|
309,726
|
|
|
$
|
306,962
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
13,845
|
|
|
$
|
14,610
|
|
Accrued
expenses
|
24,653
|
|
|
21,025
|
|
Current portion of
long-term debt
|
93
|
|
|
102
|
|
Other current
liabilities
|
6,165
|
|
|
1,870
|
|
Total current
liabilities
|
44,756
|
|
|
37,607
|
|
Deferred
revenues
|
52,943
|
|
|
53,277
|
|
Long-term
debt
|
848
|
|
|
1,044
|
|
Other long-term
liabilities
|
19,624
|
|
|
20,273
|
|
Total
liabilities
|
118,171
|
|
|
112,201
|
|
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, 2014 and 2013
|
—
|
|
|
—
|
|
Common stock: par
value $0.001, 100,000,000 shares authorized; 63,429,005 and
61,666,048 shares issued as of December 31, 2014 and 2013,
respectively
|
63
|
|
|
61
|
|
Additional paid-in
capital
|
593,073
|
|
|
567,468
|
|
Accumulated
deficit
|
(387,488)
|
|
|
(363,542)
|
|
Accumulated other
comprehensive (loss) income
|
(2,192)
|
|
|
212
|
|
Treasury stock, at
cost: 772,273 and 575,895 shares as of December 31, 2014 and 2013,
respectively
|
(12,989)
|
|
|
(9,963)
|
|
Total NxStage
Medical, Inc. stockholders' equity
|
190,467
|
|
|
194,236
|
|
Noncontrolling
interest
|
1,088
|
|
|
525
|
|
Total stockholders'
equity
|
191,555
|
|
|
194,761
|
|
Total liabilities and
stockholders' equity
|
$
|
309,726
|
|
|
$
|
306,962
|
|
NxStage Medical,
Inc.
|
Cash Flows from
Operating Activities
|
(in
thousands)
|
(unaudited)
|
|
|
Twelve Months
Ended
December 31,
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net loss
|
$
|
(24,313)
|
|
|
$
|
(18,561)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
27,697
|
|
|
24,848
|
|
Stock-based
compensation
|
12,881
|
|
|
8,638
|
|
Other
|
1,877
|
|
|
2,628
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
(4,188)
|
|
|
(1,095)
|
|
Inventory
|
(35,063)
|
|
|
(20,076)
|
|
Prepaid expenses and
other assets
|
(2,214)
|
|
|
(484)
|
|
Accounts
payable
|
(212)
|
|
|
(2,233)
|
|
Accrued expenses and
other liabilities
|
4,235
|
|
|
1,081
|
|
Deferred
revenues
|
(973)
|
|
|
(4,887)
|
|
Net cash used in
operating activities
|
$
|
(20,273)
|
|
|
$
|
(10,141)
|
|
NxStage Medical,
Inc.
|
Revenues by
Segment
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
System One
segment
|
|
|
|
|
|
|
|
|
|
|
|
Home
|
$
|
42,475
|
|
|
$
|
35,148
|
|
|
$
|
157,822
|
|
|
$
|
132,944
|
|
Critical
Care
|
15,224
|
|
|
11,605
|
|
|
55,609
|
|
|
43,812
|
|
Total System One
segment
|
57,699
|
|
|
46,753
|
|
|
213,431
|
|
|
176,756
|
|
In-Center
segment
|
19,525
|
|
|
20,645
|
|
|
78,885
|
|
|
81,852
|
|
Other
|
2,367
|
|
|
1,700
|
|
|
8,282
|
|
|
4,469
|
|
Products
subtotal
|
79,591
|
|
|
69,098
|
|
|
300,598
|
|
|
263,077
|
|
Services
segment
|
694
|
|
|
352
|
|
|
1,749
|
|
|
352
|
|
Elimination of
intersegment revenues
|
(374)
|
|
|
—
|
|
|
(846)
|
|
|
—
|
|
Total
|
$
|
79,911
|
|
|
$
|
69,450
|
|
|
$
|
301,501
|
|
|
$
|
263,429
|
|
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SOURCE NxStage Medical, Inc.