LAWRENCE, Mass., May 6,
2015 /PRNewswire/ -- NxStage Medical, Inc. (Nasdaq: NXTM), a
leading manufacturer of innovative dialysis products, today
reported first quarter financial results that exceed the top end of
its guidance range.
Revenue for the first quarter of 2015 increased 10 percent to
$79.5 million, compared with revenue
of $72.2 million for the first
quarter of 2014. The Company's revenue guidance range for the first
quarter was $77.5 million to $78.5
million. The increase was driven by outperformance in
the System One segment which consists of Home and Critical
Care.
Home revenue increased 19 percent to $43.5 million for the first quarter of 2015
compared with revenue of $36.5
million for the first quarter of 2014.
Critical Care revenue increased 9 percent to $16.1 million for the first quarter of 2015
compared with revenue of $14.7
million for the first quarter of 2014.
Consistent with the Company's guidance, In-center revenue was
$17.9 million for the first quarter
of 2015 compared with revenue of $18.9
million for the first quarter of 2014.
Net loss attributable to NxStage Medical, Inc.'s stockholders
was $5.7 million for the first
quarter of 2015 compared with a net loss of $5.3 million for the first quarter of 2014.
NxStage Medical, Inc.'s net loss for the first quarter of 2015 was
better than its guidance for a net loss of $6.5 million to $7.5
million, and included $5.6
million in losses from operations from the Company's
Services segment, NxStage Kidney Care, less noncontrolling
interest.
"NxStage had a strong start to the year," stated Jeffrey H. Burbank, Founder and Chief Executive
Officer of NxStage. "We delivered solid revenue growth and made
good progress across a number of key financial metrics in the first
quarter. We are continuing the momentum we established in 2014 with
initiatives aimed at capitalizing on our expanding opportunity with
the NxStage System One. Our strategic growth initiatives remain
solidly on track and we believe they are positioning the Company
toward our goal of sustainable 15% annual home revenue growth in
2015 and beyond."
Guidance:
"After a strong first quarter, we believe we are trending
towards the higher end of our annual revenue guidance which was
originally set to be between $324 million
and $328 million," stated Matthew W.
Towse, Chief Financial Officer. "Looking ahead to the second
quarter, we expect revenue to be between $79.0 million and $80.5 million, and a net loss
in the range of $5.5 million to $7.0
million. As we expect to work towards sustainable
operating profit in the products business, we expect the majority
of the Company's projected net loss to be related to our investment
in NxStage Kidney Care."
Conference Call:
NxStage will also host a conference call today at 9:00 a.m. Eastern Time to discuss its first
quarter 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 May
14, 2015. To access the replay, dial 855-859-2056
(domestic) or 404-537-3406 (international) and reference conference
ID 20785879. 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 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.
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 the Company's NxStage Kidney Care initiative, 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 Annual Report on Form 10-K for
the year ended December 31, 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.
|
|
Condensed
Consolidated Statements of Comprehensive Loss
|
|
(in thousands,
except per share data)
|
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
Revenues
|
|
$
|
79,482
|
|
|
$
|
72,221
|
|
|
Cost of
revenues
|
|
49,356
|
|
|
43,287
|
|
|
Gross
profit
|
|
30,126
|
|
|
28,934
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling and
marketing
|
|
14,548
|
|
|
13,218
|
|
|
Research and
development
|
|
5,874
|
|
|
5,134
|
|
|
Distribution
|
|
6,371
|
|
|
6,550
|
|
|
General and
administrative
|
|
8,912
|
|
|
8,821
|
|
|
Total operating
expenses
|
|
35,705
|
|
|
33,723
|
|
|
Loss from
operations
|
|
(5,579)
|
|
|
(4,789)
|
|
|
Other
expense:
|
|
|
|
|
|
Interest
expense
|
|
(241)
|
|
|
(198)
|
|
|
Other income,
net
|
|
264
|
|
|
23
|
|
|
|
23
|
|
|
(175)
|
|
|
Net loss before
income taxes
|
|
(5,556)
|
|
|
(4,964)
|
|
|
Provision for income
taxes
|
|
307
|
|
|
346
|
|
|
Net loss
|
|
(5,863)
|
|
|
(5,310)
|
|
|
Less: Net loss
attributable to noncontrolling interests
|
|
(205)
|
|
|
(35)
|
|
|
Net loss attributable
to stockholders of NxStage Medical, Inc.
|
|
$
|
(5,658)
|
|
|
(5,275)
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
|
$
|
(0.09)
|
|
|
$
|
(0.09)
|
|
|
Weighted-average
shares outstanding, basic and diluted
|
|
62,836
|
|
|
61,252
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income
|
|
(776)
|
|
|
182
|
|
|
Total comprehensive
loss
|
|
(6,639)
|
|
|
(5,128)
|
|
|
Less: Comprehensive
loss attributable to noncontrolling interests
|
|
(205)
|
|
|
(35)
|
|
|
Total comprehensive
loss attributable to stockholders of NxStage Medical,
Inc.
|
|
$
|
(6,434)
|
|
|
$
|
(5,093)
|
|
|
NxStage Medical,
Inc.
|
|
Condensed
Consolidated Balance Sheets
|
|
(in thousands,
except share data)
|
|
(unaudited)
|
|
|
March
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
51,012
|
|
|
$
|
52,884
|
|
|
Accounts receivable,
net
|
23,989
|
|
|
24,099
|
|
|
Inventory
|
45,277
|
|
|
45,401
|
|
|
Prepaid expenses and
other current assets
|
6,382
|
|
|
6,767
|
|
|
Total current
assets
|
126,660
|
|
|
129,151
|
|
|
Property and
equipment, net
|
64,209
|
|
|
66,574
|
|
|
Field equipment,
net
|
21,661
|
|
|
21,118
|
|
|
Deferred cost of
revenues
|
33,798
|
|
|
34,039
|
|
|
Intangible assets,
net
|
13,629
|
|
|
14,370
|
|
|
Goodwill
|
41,817
|
|
|
41,817
|
|
|
Other
assets
|
2,826
|
|
|
2,657
|
|
|
Total
assets
|
$
|
304,600
|
|
|
$
|
309,726
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
16,959
|
|
|
$
|
13,845
|
|
|
Accrued
expenses
|
21,139
|
|
|
24,653
|
|
|
Current portion of
long-term debt
|
84
|
|
|
93
|
|
|
Other current
liabilities
|
5,388
|
|
|
6,165
|
|
|
Total current
liabilities
|
43,570
|
|
|
44,756
|
|
|
Deferred
revenues
|
51,697
|
|
|
52,943
|
|
|
Long-term
debt
|
746
|
|
|
848
|
|
|
Other long-term
liabilities
|
18,379
|
|
|
19,624
|
|
|
Total
liabilities
|
114,392
|
|
|
118,171
|
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Undesignated
preferred stock: par value $0.001, 5,000,000 shares
authorized; no shares
issued and outstanding as of March 31, 2015 and December 31,
2014
|
—
|
|
|
—
|
|
|
Common stock: par
value $0.001, 100,000,000 shares authorized; 64,007,122 and
63,429,005 shares issued as of March 31, 2015 and December 31,
2014, respectively
|
64
|
|
|
63
|
|
|
Additional paid-in
capital
|
598,753
|
|
|
593,073
|
|
|
Accumulated
deficit
|
(393,146)
|
|
|
(387,488)
|
|
|
Accumulated other
comprehensive loss
|
(2,968)
|
|
|
(2,192)
|
|
|
Treasury stock, at
cost: 794,588 and 772,273 shares as of March 31, 2015 and
December 31, 2014, respectively
|
(13,378)
|
|
|
(12,989)
|
|
|
Total NxStage
Medical, Inc. stockholders' equity
|
189,325
|
|
|
190,467
|
|
|
Noncontrolling
interest
|
883
|
|
|
1,088
|
|
|
Total stockholders'
equity
|
190,208
|
|
|
191,555
|
|
|
Total liabilities and
stockholders' equity
|
$
|
304,600
|
|
|
$
|
309,726
|
|
|
|
|
|
|
NxStage Medical,
Inc.
|
|
Cash Flows from
Operating Activities
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2015
|
|
2014
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
$
|
(5,863)
|
|
|
$
|
(5,310)
|
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
7,680
|
|
|
6,591
|
|
|
Stock-based
compensation
|
3,727
|
|
|
2,641
|
|
|
Other
|
508
|
|
|
80
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
2
|
|
|
(5,118)
|
|
|
Inventory
|
(5,688)
|
|
|
(8,224)
|
|
|
Prepaid expenses and
other assets
|
81
|
|
|
(393)
|
|
|
Accounts
payable
|
3,650
|
|
|
7,702
|
|
|
Accrued expenses and
other liabilities
|
(3,158)
|
|
|
(339)
|
|
|
Deferred
revenues
|
(523)
|
|
|
(1,010)
|
|
|
Net cash provided by
(used in) operating activities
|
$
|
416
|
|
|
$
|
(3,380)
|
|
|
NxStage Medical,
Inc.
|
|
Revenues by
Segment
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2015
|
|
2014
|
|
System One
segment
|
|
|
|
|
|
Home
|
|
$
|
43,498
|
|
|
$
|
36,495
|
|
|
Critical
Care
|
|
16,082
|
|
|
14,692
|
|
|
Total System One
segment
|
|
59,580
|
|
|
51,187
|
|
|
In-Center
segment
|
|
17,867
|
|
|
18,916
|
|
|
Other
|
|
1,847
|
|
|
2,054
|
|
|
Products
subtotal
|
|
79,294
|
|
|
72,157
|
|
|
Services
segment
|
|
670
|
|
|
116
|
|
|
Elimination of
intersegment revenues
|
|
(482)
|
|
|
(52)
|
|
|
Total
|
|
$
|
79,482
|
|
|
$
|
72,221
|
|
|
NxStage Medical,
Inc.
|
|
Segment Financial
Performance
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2015
|
|
2014
|
|
System One, In-Center
and Other
|
|
|
|
|
Revenues
|
$
|
79,294
|
|
|
$
|
72,157
|
|
|
Gross
profit
|
$
|
33,706
|
|
|
$
|
30,181
|
|
|
Gross margin
percentage
|
43
|
%
|
|
42
|
%
|
|
Income (Loss) from
operations
|
$
|
203
|
|
|
$
|
(1,834)
|
|
|
Services
|
|
|
|
|
Revenues
|
$
|
670
|
|
|
$
|
116
|
|
|
Gross
profit
|
$
|
(3,580)
|
|
|
$
|
(1,247)
|
|
|
Gross margin
percentage
|
|
n/a
|
|
|
|
n/a
|
|
|
Loss from
operations
|
$
|
(5,782)
|
|
|
$
|
(2,955)
|
|
|
Eliminations
|
|
|
|
|
Elimination of
intersegment revenues
|
$
|
(482)
|
|
|
$
|
(52)
|
|
|
Total
Company
|
|
|
|
|
Revenues
|
$
|
79,482
|
|
|
$
|
72,221
|
|
|
Gross
profit
|
$
|
30,126
|
|
|
$
|
28,934
|
|
|
Gross margin
percentage
|
38
|
%
|
|
40
|
%
|
|
Loss from
operations
|
$
|
(5,579)
|
|
|
$
|
(4,789)
|
|
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SOURCE NxStage Medical, Inc.