LAWRENCE, Mass., May 9,
2017 /PRNewswire/ -- NxStage Medical, Inc. (Nasdaq: NXTM), a
leading medical technology company focused on advancing renal care,
today reported financial results for the first quarter of 2017,
reviewed recent progress on its product pipeline, and updated its
outlook for 2017.
Total revenue for the first quarter of 2017 increased 9 percent
to $96.8 million, at the high end of
its guidance range of $95 to $97
million, compared with revenue of $89.2 million for the first quarter of 2016.
The Company's revenue performance was driven by the Products
Business, and more specifically, the System One segment, which
consists of the Home and Critical Care markets. Home revenue
increased 10 percent to $54.6 million
for the first quarter of 2017 compared with revenue of $49.5 million for the first quarter of 2016.
Critical Care revenue increased 2 percent to $20.1 million for the first quarter of 2017
compared with revenue of $19.8
million for the first quarter of 2016.
Net loss attributable to NxStage Medical, Inc.'s stockholders
improved to $1.2 million for the
first quarter of 2017 compared with a net loss of $1.3 million for the first quarter of 2016. The
net loss for the first quarter of 2017 included $3.9 million
of income from operations from the Products Business.
The Company also announced that early customer and patient
feedback in the UK on its recently launched next generation
hemodialysis system has been very positive, validating many of the
benefits it expected. This innovative system consists of new
features and capabilities, including a new touchscreen user
interface and integrated blood pressure monitor designed to enhance
ease of use for patients performing home hemodialysis.
"We believe we are well positioned with tremendous growth
opportunities. We continue to execute at a high level and advance
our product pipeline at an impressive pace," stated Jeffrey H. Burbank, Founder and CEO of NxStage.
"I believe that we have one of the most exciting product pipelines
in the industry. Our primary objective is to deliver innovative
solutions that have the potential to give ESRD patients the ability
to live longer and fuller lives while on dialysis. We don't
underestimate the hard work it will take to bring these innovations
to market, but we remain confident in our capabilities. We believe
our products and track record speak for themselves."
Burbank continued, "We expect our peritoneal dialysis (PD)
system to be transformative in the existing $3 billion worldwide PD market because of its
unique design which eliminates bagged fluid and provides greater
clinical flexibility for patients and their care teams. We believe,
but can't know with certainty, that we will likely be first to
market. It won't be by the end of this year as we originally
targeted over 18 months ago, but we're targeting to be there before
anyone else. More importantly, we're targeting to be the best
technology on the market."
Guidance:
"Given the strength of the overall business, we continue to expect
total company revenue in a range of $400 to
$405 million and total company profitability for 2017.
However, with a slower start in the Home market than we
anticipated, we are revising our annual Home revenue growth target
to be between 10 to 13% for 2017 versus our previous 15% target,"
stated Matthew Towse, Chief
Financial Officer of NxStage. "Although the year isn't building in
line with our original expectations, we continue to believe we are
in a great position to drive long term growth, advance our product
pipeline, and make further improvements within our key financial
metrics."
For the second quarter of 2017, the Company expects revenue to
be in a range of $95 to $97 million,
and a net loss in the range of $1 to $3
million.
Conference Call:
NxStage will host a conference call
today, Tuesday, May 9, 2017, 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
17, 2017. To access the replay, dial 855-859-2056
(domestic) or 404-537-3406 (international) and reference conference
ID 3317702 . 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-site 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 patient
retention, as well as 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 performance have been demonstrated by
experience with more than 14 million treatments with over 30
thousand 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 2017 and
beyond, including anticipated revenues, net loss and profitability.
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 development timelines,
operational efficiencies or 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 Annual Report on Form 10-K for the year
ended December 31, 2016.
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,
|
|
2017
|
|
2016
|
|
|
|
|
|
Revenues
|
$
|
96,829
|
|
|
$
|
89,207
|
|
|
Cost of
revenues
|
55,639
|
|
|
52,690
|
|
|
Gross
profit
|
41,190
|
|
|
36,517
|
|
|
Operating
expenses:
|
|
|
|
|
Selling and
marketing
|
16,770
|
|
|
15,254
|
|
|
Research and
development
|
9,508
|
|
|
7,154
|
|
|
Distribution
|
7,643
|
|
|
7,053
|
|
|
General and
administrative
|
8,950
|
|
|
8,031
|
|
|
Total operating
expenses
|
42,871
|
|
|
37,492
|
|
|
Loss from
operations
|
(1,681)
|
|
|
(975)
|
|
|
Other
expense:
|
|
|
|
|
Interest expense,
net
|
(203)
|
|
|
(241)
|
|
|
Other expense,
net
|
(270)
|
|
|
(232)
|
|
|
Total other
expense
|
(473)
|
|
|
(473)
|
|
|
Net loss before
income taxes
|
(2,154)
|
|
|
(1,448)
|
|
|
(Benefit from)
provision for income taxes
|
(613)
|
|
|
335
|
|
|
Net loss
|
(1,541)
|
|
|
(1,783)
|
|
|
Less: Net loss
attributable to noncontrolling interests
|
(352)
|
|
|
(507)
|
|
|
Net loss attributable
to stockholders of NxStage Medical, Inc.
|
$
|
(1,189)
|
|
|
$
|
(1,276)
|
|
|
Net loss per share,
basic and diluted
|
$
|
(0.02)
|
|
|
$
|
(0.02)
|
|
|
Weighted-average
shares outstanding, basic and diluted
|
65,275
|
|
|
64,179
|
|
|
Other comprehensive
income:
|
|
|
|
|
Unrealized gain on
derivative instruments, net of income taxes
|
2,184
|
|
|
871
|
|
|
Other gain
|
721
|
|
|
190
|
|
|
Total other
comprehensive income
|
2,905
|
|
|
1,061
|
|
|
Total comprehensive
income (loss)
|
1,364
|
|
|
(722)
|
|
|
Less: Comprehensive
loss attributable to noncontrolling interests
|
(352)
|
|
|
(507)
|
|
|
Total comprehensive
income (loss) attributable to stockholders of
NxStage Medical, Inc.
|
$
|
1,716
|
|
|
$
|
(215)
|
|
|
NxStage Medical,
Inc.
Condensed
Consolidated Balance Sheets
(in thousands,
except share data)
(unaudited)
|
|
|
March
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
55,455
|
|
|
$
|
59,632
|
|
|
Accounts receivable,
net
|
39,260
|
|
|
32,286
|
|
|
Inventory
|
48,514
|
|
|
46,845
|
|
|
Prepaid expenses and
other current assets
|
7,999
|
|
|
6,136
|
|
|
Total current
assets
|
151,228
|
|
|
144,899
|
|
|
Property and
equipment, net
|
61,323
|
|
|
61,561
|
|
|
Field equipment,
net
|
24,395
|
|
|
22,309
|
|
|
Deferred cost of
revenues
|
32,027
|
|
|
33,165
|
|
|
Intangible assets,
net
|
9,180
|
|
|
9,688
|
|
|
Goodwill
|
42,648
|
|
|
42,648
|
|
|
Other
assets
|
2,975
|
|
|
2,937
|
|
|
Total
assets
|
$
|
323,776
|
|
|
$
|
317,207
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
18,490
|
|
|
$
|
14,177
|
|
|
Accrued
expenses
|
24,762
|
|
|
30,985
|
|
|
Current portion of
long-term debt
|
334
|
|
|
328
|
|
|
Other current
liabilities
|
4,111
|
|
|
3,770
|
|
|
Total current
liabilities
|
47,697
|
|
|
49,260
|
|
|
Deferred
revenues
|
47,773
|
|
|
49,001
|
|
|
Long-term
debt
|
1,240
|
|
|
1,305
|
|
|
Other long-term
liabilities
|
16,235
|
|
|
15,568
|
|
|
Total
liabilities
|
112,945
|
|
|
115,134
|
|
|
Commitments and
contingencies
|
|
|
|
|
Noncontrolling
interests subject to put provisions
|
26
|
|
|
50
|
|
|
Stockholders'
equity:
|
|
|
|
|
Undesignated
preferred stock: par value $0.001, 5,000,000 shares
authorized; no shares
issued and outstanding as of March 31, 2017 and December 31,
2016
|
—
|
|
|
—
|
|
|
Common stock: par
value $0.001, 100,000,000 shares authorized; 66,724,350 and
65,883,026 shares issued as of March 31, 2017 and December 31,
2016, respectively
|
66
|
|
|
65
|
|
|
Additional paid-in
capital
|
640,907
|
|
|
631,219
|
|
|
Accumulated
deficit
|
(408,790)
|
|
|
(407,601)
|
|
|
Accumulated other
comprehensive loss
|
(3,196)
|
|
|
(6,101)
|
|
|
Treasury stock, at
cost: 1,017,640 and 936,360 shares as of March 31, 2017 and
December 31, 2016, respectively
|
(18,479)
|
|
|
(16,184)
|
|
|
Total NxStage
Medical, Inc. stockholders' equity
|
210,508
|
|
|
201,398
|
|
|
Noncontrolling
interests not subject to put provisions
|
297
|
|
|
625
|
|
|
Total stockholders'
equity
|
210,805
|
|
|
202,023
|
|
|
Total liabilities and
stockholders' equity
|
$
|
323,776
|
|
|
$
|
317,207
|
|
|
|
|
|
|
NxStage Medical,
Inc.
Cash Flows from
Operating Activities
(in
thousands)
(unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
$
|
(1,541)
|
|
|
$
|
(1,783)
|
|
|
Adjustments to
reconcile net loss to net cash flow from operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
8,467
|
|
|
7,736
|
|
|
Stock-based
compensation
|
2,574
|
|
|
2,614
|
|
|
Other
|
(623)
|
|
|
(37)
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(6,911)
|
|
|
(3,849)
|
|
|
Inventory
|
(7,848)
|
|
|
(5,480)
|
|
|
Prepaid expenses and
other assets
|
(7)
|
|
|
681
|
|
|
Accounts
payable
|
4,200
|
|
|
3,184
|
|
|
Accrued expenses and
other liabilities
|
(4,579)
|
|
|
(1,553)
|
|
|
Deferred
revenues
|
(1,026)
|
|
|
979
|
|
|
Net cash (used in)
provided by operating activities
|
$
|
(7,294)
|
|
|
$
|
2,492
|
|
|
NxStage Medical,
Inc.
Revenues by
Segment
(in
thousands)
(unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
2017
|
|
2016
|
|
System One
segment
|
|
|
|
|
Home
|
$
|
54,561
|
|
|
$
|
49,536
|
|
|
Critical
Care
|
20,100
|
|
|
19,767
|
|
|
Total System One
segment
|
74,661
|
|
|
69,303
|
|
|
In-Center
segment
|
15,606
|
|
|
16,766
|
|
|
Other
|
2,899
|
|
|
2,181
|
|
|
Products
subtotal
|
93,166
|
|
|
88,250
|
|
|
Services
segment
|
5,050
|
|
|
2,687
|
|
|
Elimination of
intersegment revenues
|
(1,387)
|
|
|
(1,730)
|
|
|
Total
|
$
|
96,829
|
|
|
$
|
89,207
|
|
|
NxStage Medical,
Inc.
Segment Financial
Performance
(in
thousands)
(unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
2017
|
|
2016
|
|
Products Business
(System One Segment, In-Center Segment &
Other)
|
|
|
|
|
Revenues
|
$
|
93,166
|
|
|
$
|
88,250
|
|
|
Gross
profit
|
$
|
44,650
|
|
|
$
|
41,336
|
|
|
Gross margin
percentage
|
48
|
%
|
|
47
|
%
|
|
Income from
operations
|
$
|
3,946
|
|
|
$
|
6,216
|
|
|
Services
Segment
|
|
|
|
|
Revenues
|
$
|
5,050
|
|
|
$
|
2,687
|
|
|
Gross
profit
|
$
|
(3,438)
|
|
|
$
|
(4,649)
|
|
|
Gross margin
percentage
|
n/a
|
|
n/a
|
|
Loss from
operations
|
$
|
(5,605)
|
|
|
$
|
(7,021)
|
|
|
Eliminations
|
|
|
|
|
Elimination of
intersegment revenues
|
$
|
(1,387)
|
|
|
$
|
(1,730)
|
|
|
Elimination of
intersegment gross profit
|
$
|
(22)
|
|
|
$
|
(170)
|
|
|
Total
Company
|
|
|
|
|
Revenues
|
$
|
96,829
|
|
|
$
|
89,207
|
|
|
Gross
profit
|
$
|
41,190
|
|
|
$
|
36,517
|
|
|
Gross margin
percentage
|
43
|
%
|
|
41
|
%
|
|
Income (loss) from
operations
|
$
|
(1,681)
|
|
|
$
|
(975)
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nxstage-reports-first-quarter-financial-results-300454101.html
SOURCE NxStage Medical, Inc.