LAWRENCE, Mass., Aug. 6,
2015 /PRNewswire/ -- NxStage Medical, Inc. (Nasdaq: NXTM), a
leading manufacturer of innovative dialysis products, today
reported second quarter financial results at and above the top end
of its guidance ranges.
Revenue for the second quarter of 2015 increased 8 percent to
$80.3 million, compared with revenue
of $74.1 million for the second
quarter of 2014. The Company's revenue guidance range for the
second quarter was $79.0 million to $80.5
million. The increase was driven by the System One segment
which consists of Home and Critical Care.
Home revenue increased 16 percent to $44.8 million for the second quarter of 2015
compared with revenue of $38.5
million for the second quarter of 2014.
Critical Care revenue increased 18 percent to $14.6 million for the second quarter of 2015
compared with revenue of $12.4
million for the second quarter of 2014.
Consistent with the Company's guidance, In-center revenue was
$18.6 million for the second quarter
of 2015 compared with revenue of $21.0
million for the second quarter of 2014.
Net loss attributable to NxStage Medical, Inc.'s stockholders
improved to $5.3 million for the
second quarter of 2015 compared with a net loss of $7.1 million for the second quarter of 2014.
NxStage Medical, Inc.'s net loss for the second quarter of 2015 was
better than its guidance for a net loss of $5.5 million to $7.0
million and included $1.0
million of income from operations from the Products Business
and $5.8 million in losses from
operations from the Services segment, NxStage Kidney Care, less
noncontrolling interest.
Separately, the Company announced that its blood tubing
distribution agreement with Baxter International, Inc. has been
renewed through December of 2016.
"NxStage's solid performance proves our commitment to strong,
profitable long-term growth," stated Jeffrey H. Burbank, Founder and Chief Executive
Officer of NxStage. "Consistent with our growth strategy, we are
driving increased demand for our therapy options and giving
patients and clinicians more flexibility to meet both their
clinical and lifestyle needs. In turn, we have been able to
successfully execute on key financial metrics and strategic
initiatives. We expect to surprise and delight our patients and
customers with the launch of new game-changing technology starting
next year that we believe will further extend our market leadership
and fuel long-term growth."
Guidance:
"After a strong first half of the year, we expect to achieve the
top 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. "Since early 2014, we have
indicated that one of our key financial goals was to achieve
sustainable operating income in the Products Business. Q2
marks our third consecutive quarter of profitable operations in
that business and we remain confident in our ability to sustain
this performance moving forward. Taken together with
our expectations for the remainder of the year, we are improving
and narrowing our annual net loss guidance to be in a range of
$18.0 million to $20.0 million versus
our previous guidance for a net loss in the range of $20.0
million to $24.0 million, and dramatically reducing our
targeted annual cash usage to approximately $10 million, which is about half our original
projection and one-third of our cash usage in 2014."
For the third quarter, the Company expects revenue to be between
$82 million and $83 million, and a
net loss in the range of $4.5 million to
$5.5 million. The Company's net loss guidance reflects
expectations for continued operating income from the Products
Business offset by the Company's continued 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 second
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 August 14, 2015. To access the replay, dial
855-859-2056 (domestic) or 404-537-3406 (international) and
reference conference ID 77465339. 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 cash usage, anticipated success and timing of new
product introductions, 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,
unanticipated difficulties in developing and commercializing new
products, 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 most recent
quarterly or annual report.
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
June 30,
|
|
Six Months Ended
June 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
80,316
|
|
|
$
|
74,083
|
|
|
$
|
159,798
|
|
|
$
|
146,304
|
|
|
Cost of
revenues
|
49,452
|
|
|
46,553
|
|
|
98,808
|
|
|
89,840
|
|
|
Gross
profit
|
30,864
|
|
|
27,530
|
|
|
60,990
|
|
|
56,464
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling and
marketing
|
14,518
|
|
|
13,589
|
|
|
29,066
|
|
|
26,807
|
|
|
Research and
development
|
6,622
|
|
|
5,708
|
|
|
12,496
|
|
|
10,842
|
|
|
Distribution
|
6,255
|
|
|
6,485
|
|
|
12,626
|
|
|
13,035
|
|
|
General and
administrative
|
8,585
|
|
|
8,399
|
|
|
17,497
|
|
|
17,220
|
|
|
Total operating
expenses
|
35,980
|
|
|
34,181
|
|
|
71,685
|
|
|
67,904
|
|
|
Loss from
operations
|
(5,116)
|
|
|
(6,651)
|
|
|
(10,695)
|
|
|
(11,440)
|
|
|
Other
expense:
|
|
|
|
|
|
|
|
|
Interest
expense
|
(242)
|
|
|
(195)
|
|
|
(483)
|
|
|
(393)
|
|
|
Other income
(expense), net
|
37
|
|
|
(17)
|
|
|
301
|
|
|
6
|
|
|
(205)
|
|
|
(212)
|
|
|
(182)
|
|
|
(387)
|
|
|
Net loss before
income taxes
|
(5,321)
|
|
|
(6,863)
|
|
|
(10,877)
|
|
|
(11,827)
|
|
|
Provision for income
taxes
|
273
|
|
|
332
|
|
|
580
|
|
|
678
|
|
|
Net loss
|
(5,594)
|
|
|
(7,195)
|
|
|
(11,457)
|
|
|
(12,505)
|
|
|
Less: Net loss
attributable to noncontrolling interests
|
(267)
|
|
|
(82)
|
|
|
(472)
|
|
|
(117)
|
|
|
Net loss attributable
to stockholders of NxStage Medical, Inc.
|
$
|
(5,327)
|
|
|
$
|
(7,113)
|
|
|
$
|
(10,985)
|
|
|
$
|
(12,388)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
$
|
(0.08)
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.20)
|
|
|
Weighted-average
shares outstanding, basic and diluted
|
63,288
|
|
|
61,469
|
|
|
63,059
|
|
|
61,484
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income
|
(154)
|
|
|
173
|
|
|
(930)
|
|
|
355
|
|
|
Total comprehensive
loss
|
(5,748)
|
|
|
(7,022)
|
|
|
(12,387)
|
|
|
(12,150)
|
|
|
Less: Comprehensive
loss attributable to noncontrolling interests
|
(267)
|
|
|
(82)
|
|
|
(472)
|
|
|
(117)
|
|
|
Total comprehensive
loss attributable to stockholders of NxStage Medical,
Inc.
|
$
|
(5,481)
|
|
|
$
|
(6,940)
|
|
|
$
|
(11,915)
|
|
|
$
|
(12,033)
|
|
|
NxStage Medical,
Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
(unaudited)
|
|
|
June
30,
|
|
December
31,
|
|
2015
|
|
2014
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
48,350
|
|
|
$
|
52,884
|
|
|
Accounts receivable,
net
|
26,401
|
|
|
24,099
|
|
|
Inventory
|
43,372
|
|
|
45,401
|
|
|
Prepaid expenses and
other current assets
|
6,254
|
|
|
6,767
|
|
|
Total current
assets
|
124,377
|
|
|
129,151
|
|
|
Property and
equipment, net
|
64,443
|
|
|
66,574
|
|
|
Field equipment,
net
|
21,104
|
|
|
21,118
|
|
|
Deferred cost of
revenues
|
33,821
|
|
|
34,039
|
|
|
Intangible assets,
net
|
12,950
|
|
|
14,370
|
|
|
Goodwill
|
41,817
|
|
|
41,817
|
|
|
Other
assets
|
2,875
|
|
|
2,657
|
|
|
Total
assets
|
$
|
301,387
|
|
|
$
|
309,726
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
12,790
|
|
|
$
|
13,845
|
|
|
Accrued
expenses
|
22,961
|
|
|
24,653
|
|
|
Current portion of
long-term debt
|
249
|
|
|
93
|
|
|
Other current
liabilities
|
4,858
|
|
|
6,165
|
|
|
Total current
liabilities
|
40,858
|
|
|
44,756
|
|
|
Deferred
revenues
|
51,716
|
|
|
52,943
|
|
|
Long-term
debt
|
1,841
|
|
|
848
|
|
|
Other long-term
liabilities
|
18,522
|
|
|
19,624
|
|
|
Total
liabilities
|
112,937
|
|
|
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 June 30,
2015 and December 31, 2014
|
—
|
|
|
—
|
|
|
Common stock: par
value $0.001, 100,000,000 shares authorized; 64,232,634 and
63,429,005 shares issued as of June 30, 2015 and December 31, 2014,
respectively
|
64
|
|
|
63
|
|
|
Additional paid-in
capital
|
602,628
|
|
|
593,073
|
|
|
Accumulated
deficit
|
(398,473)
|
|
|
(387,488)
|
|
|
Accumulated other
comprehensive loss
|
(3,122)
|
|
|
(2,192)
|
|
|
Treasury stock, at
cost: 815,779 and 772,273 shares as of June 30, 2015 and December
31, 2014, respectively
|
(13,734)
|
|
|
(12,989)
|
|
|
Total NxStage
Medical, Inc. stockholders' equity
|
187,363
|
|
|
190,467
|
|
|
Noncontrolling
interest
|
1,087
|
|
|
1,088
|
|
|
Total stockholders'
equity
|
188,450
|
|
|
191,555
|
|
|
Total liabilities and
stockholders' equity
|
$
|
301,387
|
|
|
$
|
309,726
|
|
|
|
|
|
|
NxStage Medical,
Inc.
Cash Flows from Operating Activities
(in thousands)
(unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2015
|
|
2014
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
$
|
(11,457)
|
|
|
$
|
(12,505)
|
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
15,473
|
|
|
13,343
|
|
|
Stock-based
compensation
|
6,590
|
|
|
5,740
|
|
|
Other
|
813
|
|
|
450
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(2,315)
|
|
|
(10,927)
|
|
|
Inventory
|
(8,023)
|
|
|
(17,523)
|
|
|
Prepaid expenses and
other assets
|
169
|
|
|
(550)
|
|
|
Accounts
payable
|
(641)
|
|
|
7,948
|
|
|
Accrued expenses and
other liabilities
|
(2,036)
|
|
|
1,206
|
|
|
Deferred
revenues
|
(957)
|
|
|
(1,395)
|
|
|
Net cash used in
operating activities
|
$
|
(2,384)
|
|
|
$
|
(14,213)
|
|
|
NxStage Medical,
Inc.
Revenues by Segment
(in thousands)
(unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
System One
segment
|
|
|
|
|
|
|
|
|
Home
|
$
|
44,789
|
|
|
$
|
38,488
|
|
|
$
|
88,287
|
|
|
$
|
74,983
|
|
|
Critical
Care
|
14,631
|
|
|
12,422
|
|
|
30,713
|
|
|
27,114
|
|
|
Total System One
segment
|
59,420
|
|
|
50,910
|
|
|
119,000
|
|
|
102,097
|
|
|
In-Center
segment
|
18,563
|
|
|
21,003
|
|
|
36,430
|
|
|
39,919
|
|
|
Other
|
1,857
|
|
|
1,943
|
|
|
3,704
|
|
|
3,997
|
|
|
Products
subtotal
|
79,840
|
|
|
73,856
|
|
|
159,134
|
|
|
146,013
|
|
|
Services
segment
|
1,144
|
|
|
428
|
|
|
1,814
|
|
|
544
|
|
|
Elimination of
intersegment revenues
|
(668)
|
|
|
(201)
|
|
|
(1,150)
|
|
|
(253)
|
|
|
Total
|
$
|
80,316
|
|
|
$
|
74,083
|
|
|
$
|
159,798
|
|
|
$
|
146,304
|
|
|
NxStage Medical,
Inc.
Segment Financial Performance
(in thousands)
(unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Products (System One,
In-Center and Other)
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
79,840
|
|
|
$
|
73,856
|
|
|
$
|
159,134
|
|
|
$
|
146,013
|
|
|
Gross
profit
|
$
|
34,781
|
|
|
$
|
28,925
|
|
|
$
|
68,487
|
|
|
$
|
59,106
|
|
|
Gross margin
percentage
|
44
|
%
|
|
39
|
%
|
|
43
|
%
|
|
40
|
%
|
|
Income (Loss) from
operations
|
$
|
955
|
|
|
$
|
(3,405)
|
|
|
$
|
1,158
|
|
|
$
|
(5,239)
|
|
|
Services
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,144
|
|
|
$
|
428
|
|
|
$
|
1,814
|
|
|
$
|
544
|
|
|
Gross
profit
|
$
|
(3,917)
|
|
|
$
|
(1,395)
|
|
|
$
|
(7,497)
|
|
|
$
|
(2,642)
|
|
|
Gross margin
percentage
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
Loss from
operations
|
$
|
(6,071)
|
|
|
$
|
(3,246)
|
|
|
$
|
(11,853)
|
|
|
$
|
(6,201)
|
|
|
Eliminations
|
|
|
|
|
|
|
|
|
Elimination of
intersegment revenues
|
$
|
(668)
|
|
|
$
|
(201)
|
|
|
$
|
(1,150)
|
|
|
$
|
(253)
|
|
|
Total
Company
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
80,316
|
|
|
$
|
74,083
|
|
|
$
|
159,798
|
|
|
$
|
146,304
|
|
|
Gross
profit
|
$
|
30,864
|
|
|
$
|
27,530
|
|
|
$
|
60,990
|
|
|
$
|
56,464
|
|
|
Gross margin
percentage
|
38
|
%
|
|
37
|
%
|
|
38
|
%
|
|
39
|
%
|
|
Loss from
operations
|
$
|
(5,116)
|
|
|
$
|
(6,651)
|
|
|
$
|
(10,695)
|
|
|
$
|
(11,440)
|
|
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visit:http://www.prnewswire.com/news-releases/nxstage-reports-record-second-quarter-financial-results-and-improves-financial-guidance-for-2015-300124563.html
SOURCE NxStage Medical, Inc.