SAN DIEGO, Dec. 21, 2017 /PRNewswire/ -- NuVasive, Inc.
(NASDAQ: NUVA), the leader in spine technology innovation, focused
on transforming spine surgery with minimally disruptive,
procedurally-integrated solutions, announced today the potential
implications to its business based on the recent passage by the
U.S. Congress and soon-to-occur signing by President Trump of the
tax bill, An Act to provide for reconciliation pursuant to
titles II and V of the concurrent resolution on the budget for
fiscal year 2018, resulting in the reduction of the U.S.
corporate tax rate from 35 percent to approximately 21 percent.
This is the largest tax overhaul in 30 years and will significantly
reduce the future corporate tax rate for NuVasive, which prior to
the enactment of the tax overhaul was expected to be approximately
33 percent on a non-GAAP basis in 2018.
NuVasive continues to be a leader in bringing innovative and
life-changing spine surgery solutions to market, a pattern that
should only accelerate with the tax savings and the additional
growth opportunities it provides. Based on the preliminary
assessment of the legislation, the Company believes the new
regulations will positively impact its non-GAAP earnings per share
(EPS). While the Company will be undertaking a thorough analysis
over the coming weeks, early analysis indicates that the NuVasive
non-GAAP tax rate will drop into the low 20 percent range in 2018
and in future periods converge to a 20 percent non-GAAP tax
rate.
"The savings from this landmark decision are expected to boost
forward-looking free cash flow and non-GAAP EPS well in excess of
10 percent per year beginning in 2018, delivering incredible
incremental value-generating opportunities for our shareholders,"
said Gregory T. Lucier, chairman and
chief executive officer of NuVasive. "Innovation requires fuel, and
this surplus can support increased investments in R&D to
provide solutions that empower spine surgeons to change the lives
of their patients. This is a tremendous opportunity for the medical
device industry, and a major spark in our ability to continue to
invest in life-changing innovations."
The ramifications of the U.S. corporate tax reform will continue
to be monitored as NuVasive surveys the corporate landscape and
devises ways to maximize the savings for optimum business growth
moving forward.
About NuVasive
NuVasive, Inc. (NASDAQ:
NUVA) is the leader in spine technology innovation, focused on
transforming spine surgery and beyond with minimally disruptive,
procedurally-integrated solutions designed to deliver reproducible
and clinically-proven surgical outcomes. The Company's portfolio
includes access instruments, implantable hardware, biologics,
software systems for surgical planning, navigation and imaging
solutions, magnetically adjustable implant systems for spine and
orthopedics, and intraoperative monitoring service offerings. With
$962 million in revenues (2016),
NuVasive has an approximate 2,300 person workforce in more than 40
countries serving surgeons, hospitals and patients. For more
information, please visit www.nuvasive.com.
Forward-Looking Statements
NuVasive cautions
you that statements included in this news release that are not a
description of historical facts are forward-looking statements that
involve risks, uncertainties, assumptions and other factors which,
if they do not materialize or prove correct, could cause NuVasive's
results to differ materially from historical results or those
expressed or implied by such forward-looking statements.
Forward-looking statements include, but are not limited to,
statements about the anticipated impact of the new tax law on
NuVasive's future tax rate and financial and operating results,
including future business plans and intentions. The
forward-looking statements contained herein are based on the
current expectations and assumptions of NuVasive and not on
historical facts. The following important factors, among
others, could cause actual results to differ materially from those
set forth in the forward-looking statements: the risk that
NuVasive's estimates and projections related to future tax and
financial and operating results may turn out to be inaccurate
because of the preliminary nature of the Company's forecasts; the
risk of further adjustment to future financial expectations;
unanticipated difficulty in selling products, generating revenue or
producing expected profitability; and those other risks and
uncertainties more fully described in the Company's news releases
and periodic filings with the Securities and Exchange
Commission. NuVasive's public filings with the Securities and
Exchange Commission are available at www.sec.gov. NuVasive assumes
no obligation to update any forward-looking statement to reflect
events or circumstances arising after the date on which it was
made.
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SOURCE NuVasive, Inc.