IRVINE, Calif., March 16, 2011 /PRNewswire/ -- Endologix, Inc.
(Nasdaq: ELGX), developer of minimally invasive treatments for
aortic disorders, today announced the filing of its annual report
on Form 10-K and certain revisions to its previously reported
unaudited fourth quarter and full year 2010 financial results.
Upon finalization of the purchase price allocation related to
Endologix's December 2010 acquisition
of Nellix, Inc., the Company revised the amount of the purchase
price allocated to in-process research and development (IPR&D)
to $40.1 million and goodwill to
$22.4 million. Accordingly, the
Company revised the associated deferred tax liability and the
corresponding change in valuation allowance effect. This
resulted in an income tax benefit of $15.1
million compared to $11.3
million previously reported. The revisions had no
effect on cash flows or cash balances.
As a result, Endologix reported revised GAAP net earnings for
the fourth quarter of 2010 of $11.7
million, or $0.22 per diluted
share from the previously reported $8.0
million or $0.15 per diluted
share; and GAAP net earnings for the full year 2010 of $10.7 million or $0.21 per fully diluted share from the previously
reported $6.9 million or $0.14 per diluted share.
There were no other changes to Endologix's previously reported
unaudited fourth quarter and full-year 2010 financial results, its
previously reported adjusted (non-GAAP) results, or its previously
reported financial guidance.
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Nellix
Acquisition: Purchase Price Allocation
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($000's)
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Preliminary
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Finalized
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IPR&D
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$
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29,900
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$
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40,100
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Deferred tax
liability
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(11,302)
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(15,067)
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Other net assets
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114
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114
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Net assets acquired
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18,712
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25,147
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Fair value of consideration
given
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$
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47,589
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$
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47,589
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Less: Net assets
acquired
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18,712
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25,147
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Goodwill
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$
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28,877
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$
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22,442
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Effect on
Reported Net Income
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Q4
2010
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($000's)
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Previously
Reported
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Revised
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Tax benefit
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$
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11,272
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$
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15,037
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Net earnings
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$
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7,959
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$
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11,724
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Full Year
2010
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Previously
Reported
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Revised
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Tax benefit
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$
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11,272
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$
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15,037
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Net earnings
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$
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6,888
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$
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10,653
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About Endologix
Endologix, Inc. develops and manufactures minimally invasive
treatments for aortic disorders. The Company's flagship
product is the Powerlink® System, which is an endovascular stent
graft for the treatment of abdominal aortic aneurysms (AAA). AAA is
a weakening of the wall of the aorta, the largest artery in the
body, resulting in a balloon-like enlargement. Once AAA
develops, it continues to enlarge and, if left untreated, becomes
increasingly susceptible to rupture. The overall patient
mortality rate for ruptured AAA is approximately 75%, making it a
leading cause of death in the U.S. Additional information can be
found on Endologix's Web site at www.endologix.com.
Except for historical information contained herein, this news
release contains forward-looking statements with respect to 2011
financial guidance, the accuracy of which are necessarily subject
to risks and uncertainties, all of which are difficult or
impossible to predict accurately and many of which are beyond the
control of Endologix. Many factors may cause actual results to
differ materially from anticipated results, including the success
of sales efforts for the Powerlink System and related new products,
product research and development efforts, and other economic,
business, competitive and regulatory factors. The Company
undertakes no obligation to update its forward looking statements.
Please refer to the Company's Annual Report on Form 10-K for the
year ended December 31, 2010, and the
Company's other filings with the Securities and Exchange
Commission, for more detailed information regarding these risks and
other factors that may cause actual results to differ materially
from those expressed or implied.
COMPANY CONTACT:
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INVESTOR CONTACTS:
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Endologix, Inc.
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The Ruth Group
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John McDermott, CEO
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Nick Laudico (646)
536-7030
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(949) 595-7200
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Zack Kubow (646)
536-7020
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www.endologix.com
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SOURCE Endologix, Inc.