LAWRENCE, Mass., Feb. 10, 2016 /PRNewswire/ --
Highlights:
- Full-Year Revenue Increases to $336
million, up 11% from 2014
- Full-Year Home Revenue Increases to $183 million, up 16% from 2014
- Full-Year Operating Income from Products Business Increases
to $9 million
- Company Highlights Significant Product Introductions for the
Next Three Years
- For Third Consecutive Year, Company Targets 15% Annual Home
Revenue Growth
NxStage Medical, Inc. (Nasdaq: NXTM), a leading medical
technology company focused on advancing renal care, today reported
record revenue for the fourth quarter and fiscal year ended
December 31, 2015, topping its recent upwardly revised revenue
guidance.
Fourth Quarter Financial Results
Total revenue for the fourth quarter of 2015 increased 12
percent from 2014 to a record $89.8
million, which exceeded the top end of the Company's revenue
guidance range of $86 to $87 million.
Net loss attributable to NxStage Medical, Inc.'s stockholders was
$2.7 million for the fourth quarter
of 2015, compared with a net loss of $4.9
million for the fourth quarter of 2014. The net loss
included $3.8 million of income from
operations from the Products Business.
Fiscal Year 2015 Financial Results
Total revenue for the full-year 2015 increased 11 percent from
2014 to a record $336.1 million,
which exceeded the top end of the Company's revenue guidance range
of $332 to $333 million. Net loss
attributable to NxStage Medical, Inc.'s stockholders was
$15.3 million for the full-year 2015,
compared with a net loss of $23.9
million for the full-year 2014. The net loss for the
full-year included $9.2 million of
income from operations from the Products Business.
The Company's performance improvements in both periods were
driven by the Products Business, and more specifically,
outperformance in NxStage's largest segment, the System One segment
which consists of Home and Critical Care markets. For the full-year
2015, System One revenue increased 16 percent to $247.8 million. Home revenue increased 16 percent
to $182.6 million, exceeding the
Company's target for 15 percent annual growth. Critical Care
revenue increased 17 percent to $65.2
million.
"It was a strong year for NxStage. We're very pleased to again
exceed our guidance on revenue, narrow our net loss and deliver a
year of increasing profitability in our Products Business," said
Jeff Burbank, Founder and Chief
Executive Officer of NxStage. "We have a rich portfolio of current
products that are expected to drive continued growth within Home
and Critical Care, our largest high growth markets, in 2016 and
beyond."
Burbank continued, "In addition, we continue to advance our
innovative pipeline, including our next generation hemodialysis
system, our new peritoneal dialysis (PD) system and our next
generation critical care system. As we are beginning pilot
production of our next generation hemodialysis system, we continue
to align our assets and focus our execution in support of these
tremendous long-term growth opportunities."
Guidance
The Company is forecasting revenue to be between $355 million and $360 million for the full fiscal
year 2016, and between $87 million and $89
million for the first quarter of 2016. The Company also
expects a net loss in the range of $7
million to $12 million for the full fiscal year 2016, and a
net loss in the range of $2 million to $4
million for the first quarter of 2016. The Company's net
loss guidance for both periods reflects expectations for continued
operating income from the Products Business offset by the Company's
continued investment in NxStage Kidney Care.
"Our guidance for the full fiscal year 2016 includes continued
strong performance from our System One segment, with expectations
for annual growth within Home and Critical Care of 15 percent and 9
percent, respectively, and a modest increase in our Services
segment. We've also guided to a much lower revenue level for our
low margin In-Center segment," stated Matt
Towse, Chief Financial Officer. "As we continue to
scale the higher margin System One segment and align our business
in support of our growth opportunities, we remain on track to
achieve our long-term growth and profitability targets."
Conference Call:
NxStage will also host a conference call today, Wednesday,
February 10, 2016, 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 February 17, 2016. To access the replay,
dial 855-859-2056 (domestic) or 404-537-3406 (international) and
reference conference ID 26460722. 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 leading medical technology company, headquartered in Lawrence, Massachusetts, USA, that develops,
manufactures and markets innovative products for the treatment of
end-stage renal disease (ESRD) and acute kidney failure. NxStage
has also established a small number of dialysis clinics committed
to the development of innovative care delivery models for patients
with ESRD. For more information on NxStage and its products and
services, please visit the Company's website at
http://www.nxstage.com and www.nxstagekidneycare.com.
About the NxStage System One
The NxStage System One is the first and only truly portable
hemodialysis system cleared specifically by the 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 on demand. 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. In
addition, NxStage's Nx2Me Connected Health platform collects
important NxStage System One and patient information for
flexible viewing, monitoring and reporting that may improve patient
management and simplify alternative site care. 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 12 million treatments with thousands of patients around
the world. http://www.nxstage.com/.
Forward-Looking Statements
This release contains
forward-looking statements concerning our business, operations and
financial condition. 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, market opportunities, timing of our new product
launches, and our financial guidance for 2016 and beyond, including
anticipated revenues and net loss. 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, regulatory
approvals, competition, 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, 2015.
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,
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
89,804
|
|
|
$
|
79,911
|
|
|
$
|
336,123
|
|
|
$
|
301,501
|
|
Cost of
revenues
|
54,041
|
|
|
49,059
|
|
|
204,652
|
|
|
185,598
|
|
Gross
profit
|
35,763
|
|
|
30,852
|
|
|
131,471
|
|
|
115,903
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
marketing
|
15,017
|
|
|
14,705
|
|
|
58,528
|
|
|
55,385
|
|
Research and
development
|
6,989
|
|
|
5,611
|
|
|
26,237
|
|
|
22,635
|
|
Distribution
|
7,071
|
|
|
6,539
|
|
|
26,211
|
|
|
26,001
|
|
General and
administrative
|
8,985
|
|
|
8,470
|
|
|
35,124
|
|
|
34,069
|
|
Total operating
expenses
|
38,062
|
|
|
35,325
|
|
|
146,100
|
|
|
138,090
|
|
Loss from
operations
|
(2,299)
|
|
|
(4,473)
|
|
|
(14,629)
|
|
|
(22,187)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(320)
|
|
|
(215)
|
|
|
(1,115)
|
|
|
(863)
|
|
Other income
(expense), net
|
25
|
|
|
(6)
|
|
|
561
|
|
|
(10)
|
|
Total other
expense
|
(295)
|
|
|
(221)
|
|
|
(554)
|
|
|
(873)
|
|
Net loss before
income taxes
|
(2,594)
|
|
|
(4,694)
|
|
|
(15,183)
|
|
|
(23,060)
|
|
Provision for
(benefit from) income taxes
|
207
|
|
|
280
|
|
|
1,077
|
|
|
1,253
|
|
Net loss
|
(2,801)
|
|
|
(4,974)
|
|
|
(16,260)
|
|
|
(24,313)
|
|
Less: Net loss
attributable to noncontrolling interests
|
(131)
|
|
|
(122)
|
|
|
(918)
|
|
|
(367)
|
|
Net loss attributable
to stockholders of NxStage Medical, Inc.
|
$
|
(2,670)
|
|
|
$
|
(4,852)
|
|
|
$
|
(15,342)
|
|
|
$
|
(23,946)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
$
|
(0.04)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.24)
|
|
|
$
|
(0.39)
|
|
Weighted-average
shares outstanding, basic and diluted
|
63,871
|
|
|
62,271
|
|
|
63,384
|
|
|
61,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss, net of tax
|
(80)
|
|
|
(1,609)
|
|
|
(1,839)
|
|
|
(2,404)
|
|
Total comprehensive
loss
|
(2,881)
|
|
|
(6,583)
|
|
|
(18,099)
|
|
|
(26,717)
|
|
Less: Comprehensive
loss attributable to noncontrolling interests
|
(131)
|
|
|
(122)
|
|
|
(918)
|
|
|
(367)
|
|
Total comprehensive
loss attributable to stockholders of NxStage Medical,
Inc.
|
$
|
(2,750)
|
|
|
$
|
(6,461)
|
|
|
$
|
(17,181)
|
|
|
$
|
(26,350)
|
|
NxStage Medical,
Inc.
Consolidated
Balance Sheets
(in thousands,
except share data)
(unaudited)
|
|
|
December
31,
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
59,065
|
|
|
$
|
52,884
|
|
Accounts receivable,
net
|
25,195
|
|
|
24,099
|
|
Inventory
|
38,391
|
|
|
45,401
|
|
Prepaid expenses and
other current assets
|
6,254
|
|
|
6,767
|
|
Total current
assets
|
128,905
|
|
|
129,151
|
|
Property and
equipment, net
|
66,711
|
|
|
66,574
|
|
Field equipment,
net
|
20,744
|
|
|
21,118
|
|
Deferred cost of
revenues
|
33,068
|
|
|
34,039
|
|
Intangible assets,
net
|
11,744
|
|
|
14,370
|
|
Goodwill
|
42,710
|
|
|
41,817
|
|
Other
assets
|
2,992
|
|
|
2,657
|
|
Total
assets
|
$
|
306,874
|
|
|
$
|
309,726
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
10,767
|
|
|
$
|
13,845
|
|
Accrued
expenses
|
27,266
|
|
|
24,653
|
|
Current portion of
long-term debt
|
315
|
|
|
93
|
|
Other current
liabilities
|
4,394
|
|
|
6,165
|
|
Total current
liabilities
|
42,742
|
|
|
44,756
|
|
Deferred
revenues
|
51,362
|
|
|
52,943
|
|
Long-term
debt
|
1,664
|
|
|
848
|
|
Other long-term
liabilities
|
17,367
|
|
|
19,624
|
|
Total
liabilities
|
113,135
|
|
|
118,171
|
|
Commitments and
contingencies (Note 10)
|
|
|
|
|
|
Noncontrolling
interests subject to put provisions
|
219
|
|
|
—
|
|
Stockholders'
equity:
|
|
|
|
|
|
Undesignated
preferred stock: par value $0.001 per share, 5,000,000 shares
authorized; no shares issued and outstanding as of December 31,
2015 and 2014
|
—
|
|
|
—
|
|
Common stock: par
value $0.001 per share, 100,000,000 shares authorized; 64,873,038
and 63,429,005 shares issued as of December 31, 2015 and
2014, respectively
|
64
|
|
|
63
|
|
Additional paid-in
capital
|
612,487
|
|
|
593,073
|
|
Accumulated
deficit
|
(402,830)
|
|
|
(387,488)
|
|
Accumulated other
comprehensive loss
|
(4,031)
|
|
|
(2,192)
|
|
Treasury stock, at
cost: 822,059 and 772,273 shares as of December 31, 2015 and 2014,
respectively
|
(13,864)
|
|
|
(12,989)
|
|
Total NxStage
Medical, Inc. stockholders' equity
|
191,826
|
|
|
190,467
|
|
Noncontrolling
interests not subject to put provisions
|
1,694
|
|
|
1,088
|
|
Total stockholders'
equity
|
193,520
|
|
|
191,555
|
|
Total liabilities and
stockholders' equity
|
$
|
306,874
|
|
|
$
|
309,726
|
|
NxStage Medical,
Inc.
Cash Flows from
Operating Activities
(in
thousands)
(unaudited)
|
|
|
Twelve Months
Ended December 31,
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net loss
|
$
|
(16,260)
|
|
|
$
|
(24,313)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
30,715
|
|
|
27,697
|
|
Stock-based
compensation
|
12,598
|
|
|
12,881
|
|
Other
|
1,302
|
|
|
1,877
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
(1,130)
|
|
|
(4,188)
|
|
Inventory
|
(12,113)
|
|
|
(35,063)
|
|
Prepaid expenses and
other assets
|
(77)
|
|
|
(2,214)
|
|
Accounts
payable
|
(2,775)
|
|
|
(212)
|
|
Accrued expenses and
other liabilities
|
635
|
|
|
4,235
|
|
Deferred
revenues
|
(2,353)
|
|
|
(973)
|
|
Net cash provided by
(used in) operating activities
|
$
|
10,542
|
|
|
$
|
(20,273)
|
|
NxStage Medical,
Inc.
Revenues by
Segment
(in
thousands)
(unaudited)
|
|
|
Three Months Ended
December 31,
|
|
|
Twelve Months
Ended December 31,
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
System One
segment
|
|
|
|
|
|
|
|
|
|
|
|
Home
|
$
|
47,812
|
|
|
$
|
42,475
|
|
|
$
|
182,572
|
|
|
$
|
157,822
|
|
Critical
Care
|
18,143
|
|
|
15,224
|
|
|
65,203
|
|
|
55,609
|
|
Total System One
segment
|
65,955
|
|
|
57,699
|
|
|
247,775
|
|
|
213,431
|
|
In-Center
segment
|
18,898
|
|
|
19,525
|
|
|
74,768
|
|
|
78,885
|
|
Other
|
3,180
|
|
|
2,367
|
|
|
10,302
|
|
|
8,282
|
|
Products
subtotal
|
88,033
|
|
|
79,591
|
|
|
332,845
|
|
|
300,598
|
|
Services
segment
|
2,845
|
|
|
694
|
|
|
6,412
|
|
|
1,749
|
|
Elimination of
intersegment revenues
|
(1,074)
|
|
|
(374)
|
|
|
(3,134)
|
|
|
(846)
|
|
Total
|
$
|
89,804
|
|
|
$
|
79,911
|
|
|
$
|
336,123
|
|
|
$
|
301,501
|
|
NxStage Medical,
Inc.
Segment Financial
Performance
(in
thousands)
(unaudited)
|
|
Twelve Months
Ended December 31,
|
|
2015
|
|
2014
|
|
2013
|
Products business
(System One Segment, In-Center Segment and Other)
|
|
|
|
|
|
Revenues
|
$
|
332,845
|
|
|
$
|
300,598
|
|
|
$
|
263,077
|
|
Gross
profit
|
$
|
146,188
|
|
|
$
|
123,011
|
|
|
$
|
103,295
|
|
Gross margin
percentage
|
44
|
%
|
|
41
|
%
|
|
39
|
%
|
Income (Loss) from
operations
|
$
|
9,197
|
|
|
$
|
(7,261)
|
|
|
$
|
(12,108)
|
|
Services
Segment
|
|
|
|
|
|
Revenues
|
$
|
6,412
|
|
|
$
|
1,749
|
|
|
$
|
352
|
|
Gross
profit
|
$
|
(14,717)
|
|
|
$
|
(7,108)
|
|
|
$
|
(792)
|
|
Gross margin
percentage
|
n/a
|
|
n/a
|
|
n/a
|
Loss from
operations
|
$
|
(23,826)
|
|
|
$
|
(14,926)
|
|
|
$
|
(5,690)
|
|
Eliminations
|
|
|
|
|
|
Elimination of
intersegment revenues
|
$
|
(3,134)
|
|
|
$
|
(846)
|
|
|
$
|
—
|
|
Total
Company
|
|
|
|
|
|
Revenues
|
$
|
336,123
|
|
|
$
|
301,501
|
|
|
$
|
263,429
|
|
Gross
profit
|
$
|
131,471
|
|
|
$
|
115,903
|
|
|
$
|
102,503
|
|
Gross margin
percentage
|
39
|
%
|
|
38
|
%
|
|
39
|
%
|
Loss from
operations
|
$
|
(14,629)
|
|
|
$
|
(22,187)
|
|
|
$
|
(17,798)
|
|
Logo -
http://photos.prnewswire.com/prnh/20110503/MM94799LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nxstage-reports-record-fourth-quarter-and-full-year-2015-revenue-300218024.html
SOURCE NxStage Medical, Inc.