SAN DIEGO, Jan. 8, 2018 /PRNewswire/ -- NuVasive, Inc.
(NASDAQ: NUVA), the leader in spine technology innovation, focused
on transforming spine surgery with minimally disruptive,
procedurally-integrated solutions, today announced preliminary
unaudited revenue results for the fourth quarter and full year
2017. The Company expects fourth quarter 2017 revenue to be
approximately $272 million and full
year 2017 revenue to be approximately $1,030
million and in line with the guidance provided on
Oct 24, 2017.
NuVasive preliminary revenue results for full year 2017 reflect
approximately 7% growth on a reported and constant currency basis,
compared to revenue of $962 million for 2016. When
NuVasive updated its full year 2017 financial guidance on
Oct. 24 to reflect third-quarter 2017
results, the Company assumed international revenue growth of over
20 percent, a lingering impact of Hurricane Maria in Puerto
Rico in the fourth quarter and softer U.S. procedural volumes
continuing into the fourth quarter. Those assumptions have
remained unchanged.
The Company will report full year 2017 financial results and
provide its full financial outlook for 2018 during its earnings
announcement planned for mid-February.
"NuVasive launched a record number of new technologies in 2017
and accelerated growth across the globe delivering more than a 20
percent sales increase outside the United
States for the fifth sequential quarter," said Gregory T. Lucier, chairman and chief executive
officer of NuVasive. "What's impressive is this success has
occurred in a year when the overall U.S. spine market has softened.
Whether through game-changing product introductions or strategic
acquisitions, we intend to deliver the most innovative and
comprehensive spine solutions to our customers so they can best
serve their patients. We will continue this momentum in 2018."
2018 Preliminary Outlook
The Company's preliminary outlook for 2018 includes full year
revenue growth in the mid-single digits over 2017 revenue results,
at least 100 basis points of expansion in non-GAAP operating
margin, adjusted EBITDA now in a range of approximately
$290 to $300
million, and a substantial tax savings resulting from the
tax reform legislation passed late in 2017.
When the Company provides its full financial outlook for 2018,
it will include the expected financial impact of the Company's
acquisition of SafePassage. In Dec.
2017, NuVasive announced it had entered into an agreement to
acquire SafePassage to bolster its NuVasive Clinical Services™
business and solidify its leadership position as the largest
provider of outsourced intraoperative neuromonitoring (IONM)
services. This joining of forces will strengthen the NuVasive
IONM business line with more than 550 neurophysiologists and
oversight physicians in the U.S.—allowing for the delivery of
services to over 1,000 customers and 3,000 surgeons. The
acquisition of SafePassage remains on track and is anticipated to
close in Jan. 2018, subject to
customary closing conditions.
The Company will also provide additional commentary on the
expected impact of U.S. tax reform. NuVasive expects to
realize substantial tax savings as a result of the recent passage
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, which provides for a reduction of the U.S.
corporate tax rate from 35 percent to approximately 21 percent. The
legislation is poised to 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.
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 regarding the Company's expected revenue
results for the fourth quarter and full year 2017, financial
projections and goals for 2018, the timing of the anticipated
acquisition of SafePassage, including the potential benefits of the
acquisition, and the anticipated impact of the new tax law.
The forward-looking statements contained herein are based on the
current expectations and assumptions of NuVasive and not on
historical facts. The Company's expectations for fourth
quarter and full year 2017 revenue results are preliminary and
unaudited and are subject to adjustment in the ongoing review and
audit procedures by the Company's external auditors. The
following important factors, among others, could cause actual
results to differ materially from those set forth in the
forward-looking statements: the completion of the audit of
the Company's 2017 financial results, including the risk of
adjustment to its preliminary fourth quarter and full year revenue
results; the satisfaction of conditions to closing the agreement to
acquire SafePassage, including the risk that any required
conditions are not satisfied, are delayed or are subject to
unanticipated conditions that could adversely affect the combined
company or the expected benefits of the acquisition; the risk that
NuVasive's estimates and projections related to financial and
operating goals for 2018 and 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.