AtriCure, Inc. (Nasdaq: ATRC), a leading innovator in surgical
treatments and therapies for atrial fibrillation (Afib), left
atrial appendage (LAA) management and post-operative pain
management, today announced second quarter 2022 financial
results.
“We delivered a remarkable second quarter as we continue
changing the standard of care for millions of patients globally,”
said Michael Carrel, President and Chief Executive Officer of
AtriCure. “Our results demonstrate the building strength of our
portfolio of solutions, while continued product innovation,
clinical science and physician education drive expansive, long-term
growth opportunities.”
Second Quarter 2022 Financial
Results
Revenue for the second quarter 2022 was $84.5 million, an
increase of 18.4% (an increase of 19.8% on a constant currency
basis) over second quarter 2021 revenue. U.S. revenue was $71.3
million, an increase of $11.2 million or 18.6%, compared to second
quarter 2021. U.S. revenue growth was driven by sales across key
product lines, notably the cryoSPHERE® probe for post-operative
pain management, AtriClip® Flex·V® and Pro·V® devices, the new
ENCOMPASS® clamp and our EPi-Sense® System. International revenue
increased $2.0 million or 17.3% (an increase of 26.3% on a constant
currency basis) to $13.3 million, driven mainly by appendage
management products and reflecting a rebound in procedure volumes
in Europe and growth in Australia. On a sequential basis, worldwide
revenue for the second quarter 2022 increased approximately 13.3%
over first quarter 2022.
Gross profit for the second quarter 2022 was $63.5 million
compared to $54.1 million for the second quarter 2021. Gross margin
was 75.1% and 75.8% for the second quarters 2022 and 2021
respectively, largely reflecting changes in U.S. product mix and
cost increases driven by inflationary and supply chain pressures.
Loss from operations for the second quarter 2022 was $13.7 million,
compared to $15.1 million for the second quarter 2021. Basic and
diluted net loss per share was $0.32 for the second quarter 2022,
compared to $0.36 for the second quarter 2021.
Adjusted EBITDA was negative for the second quarter 2022 at $3.2
million, compared to negative $2.7 million for second quarter of
2021. Adjusted loss per share for the second quarter 2022 was $0.32
compared to $0.30 for the second quarter 2021.
Constant currency revenue, adjusted EBITDA and adjusted loss per
share are non-GAAP measures. We discuss these non-GAAP measures and
provide reconciliations to GAAP measures later in this release.
2022 Financial Guidance
Full year 2022 revenue is projected to be approximately $323
million to $333 million, reflecting growth of approximately 18% to
21% over full year 2021. Management continues to expect full year
2022 adjusted EBITDA to be a loss of approximately $2 million to $4
million, and the full year 2022 adjusted loss per share of
approximately $1.07 to $1.12.
Conference Call
AtriCure will host a conference call at 4:30 p.m. Eastern Time
on Tuesday, August 2, 2022 to discuss its second quarter 2022
financial results. To access the webcast, please visit the
Investors page of AtriCure’s corporate website at
https://ir.atricure.com/events-and-presentations/events.
Participants are encouraged to register more than 15 minutes before
the webcast start time. A replay of the presentation will be
available for 90 days following the presentation.
About AtriCure
AtriCure, Inc. provides innovative technologies for the
treatment of Afib and related conditions. Afib affects more than 33
million people worldwide. Electrophysiologists and cardiothoracic
surgeons around the globe use AtriCure technologies for the
treatment of Afib and reduction of Afib related complications.
AtriCure’s Isolator® Synergy™ Ablation System is the first medical
device to receive FDA approval for the treatment of persistent
Afib. AtriCure’s AtriClip® Left Atrial Appendage Exclusion System
products are the most widely sold LAA management devices worldwide.
AtriCure’s Hybrid AF™ Therapy is a minimally invasive procedure
that provides a lasting solution for long-standing persistent Afib
patients. AtriCure’s cryoICE cryoSPHERE® probe is cleared for
temporary ablation of peripheral nerves to block pain, providing
pain relief in cardiac and thoracic procedures. For more
information, visit AtriCure.com or follow us on Twitter
@AtriCure.
Forward-Looking
Statements
This press release contains “forward-looking statements”– that
is, statements related to future events that by their nature
address matters that are uncertain. This press release also
includes forward-looking projected financial information that is
based on current estimates and forecasts. Actual results could
differ materially. For details on the uncertainties that may cause
our actual results to be materially different than those expressed
in our forward-looking statements, visit
http://www.atricure.com/forward-looking-statements as well as our
Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q
which contain risk factors. Except where otherwise noted, the
information contained in this release and the related attachment is
as of August 2, 2022. We assume no obligation to update any
forward-looking statements contained in this release and the
related attachment as a result of new information or future events
or developments, except as may be required by law.
Use of Non-GAAP Financial
Measures
To supplement AtriCure’s condensed consolidated financial
statements prepared in accordance with accounting principles
generally accepted in the United States of America, or GAAP,
AtriCure provides certain non-GAAP financial measures in this
release as supplemental financial metrics.
Revenue reported on a constant currency basis is a non-GAAP
measure, calculated by applying previous period foreign currency
exchange rates, which are determined by the average daily Euro to
Dollar exchange rate, to each of the comparable periods. Management
analyzes revenue on a constant currency basis to better measure the
comparability of results between periods. Because changes in
foreign currency exchange rates have a non-operating impact on
revenue, the Company believes that evaluating growth in revenue on
a constant currency basis provides an additional and meaningful
assessment of revenue to both management and investors.
Adjusted EBITDA is calculated as net income (loss) before other
income/expense (including interest), income tax expense,
depreciation and amortization expense, share-based compensation
expense, acquisition costs, legal settlement costs, impairment of
intangible asset and change in fair value of contingent
consideration liabilities. Management believes in order to properly
understand short-term and long-term financial trends, investors may
wish to consider the impact of these excluded items in addition to
GAAP measures. The excluded items vary in frequency and/or impact
on our continuing results of operations and management believes
that the excluded items are typically not reflective of our ongoing
core business operations and financial condition. Further,
management uses adjusted EBITDA for both strategic and annual
operating planning. A reconciliation of adjusted EBITDA reported in
this release to the most comparable GAAP measure for the respective
periods appears in the table captioned “Reconciliation of Non-GAAP
Adjusted Loss (Adjusted EBITDA)” later in this release.
Adjusted income (loss) per share is a non-GAAP measure which
calculates the net income (loss) per share before non-cash
adjustments in fair value of contingent consideration liabilities,
impairment of intangible asset and legal settlement costs. A
reconciliation of adjusted income (loss) per share reported in this
release to the most comparable GAAP measure for the respective
periods appears in the table captioned “Reconciliation of Non-GAAP
Adjusted Loss Per Share” later in this release.
The non-GAAP financial measures used by AtriCure may not be the
same or calculated in the same manner as those used and calculated
by other companies. Non-GAAP financial measures have limitations as
analytical tools and should not be considered in isolation or as a
substitute for AtriCure’s financial results prepared and reported
in accordance with GAAP. We urge investors to review the
reconciliation of these non-GAAP financial measures to the
comparable GAAP financials measures included in this press release,
and not to rely on any single financial measure to evaluate our
business.
ATRICURE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In Thousands, Except Per
Share Amounts)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
United States Revenue:
Open ablation
$
22,070
$
19,503
$
41,044
$
36,942
Minimally invasive ablation
10,154
9,702
18,769
18,087
Pain management
10,210
5,709
18,224
9,607
Total ablation
42,434
34,914
78,037
64,636
Appendage management
28,831
25,156
55,500
45,743
Total United States
71,265
60,070
133,537
110,379
International Revenue:
Open ablation
6,213
5,526
12,705
9,960
Minimally invasive ablation
1,271
1,575
2,804
2,849
Pain management
114
11
254
11
Total ablation
7,598
7,112
15,763
12,820
Appendage management
5,666
4,194
9,805
7,452
Total International
13,264
11,306
25,568
20,272
Total revenue
84,529
71,376
159,105
130,651
Cost of revenue
21,010
17,298
39,991
32,033
Gross profit
63,519
54,078
119,114
98,618
Operating expenses:
Research and development expenses
14,791
12,197
28,420
23,414
Selling, general and administrative
expenses
62,388
56,958
118,504
106,166
Total operating expenses
77,179
69,155
146,924
129,580
Loss from operations
(13,660
)
(15,077
)
(27,810
)
(30,962
)
Other expense, net
(1,136
)
(1,108
)
(2,113
)
(2,109
)
Loss before income tax expense
(14,796
)
(16,185
)
(29,923
)
(33,071
)
Income tax expense
45
66
101
97
Net loss
$
(14,841
)
$
(16,251
)
$
(30,024
)
$
(33,168
)
Basic and diluted net loss per share
$
(0.32
)
$
(0.36
)
$
(0.66
)
$
(0.74
)
Weighted average shares used in computing
net loss per share:
Basic and diluted
45,692
45,035
45,610
44,834
ATRICURE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In Thousands)
(Unaudited)
June 30, 2022
December 31,
2021
Assets
Current assets:
Cash, cash equivalents, and short-term
investments
$
118,454
$
119,090
Accounts receivable, net
41,488
33,021
Inventories
41,292
38,964
Prepaid and other current assets
4,932
5,001
Total current assets
206,166
196,076
Long-term investments
64,295
104,338
Property and equipment, net
36,053
31,409
Operating lease right-of-use assets
4,241
4,761
Goodwill and intangible assets, net
275,830
277,773
Other noncurrent assets
804
955
Total assets
$
587,389
$
615,312
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable and accrued
liabilities
$
54,496
$
54,689
Other current liabilities and current
maturities of leases
1,820
1,756
Total current liabilities
56,316
56,445
Long-term debt
59,954
59,741
Finance lease liabilities
9,603
10,082
Operating lease liabilities
3,591
4,068
Other noncurrent liabilities
1,215
1,220
Total liabilities
130,679
131,556
Stockholders' equity:
Common stock
46
46
Additional paid-in capital
771,185
764,811
Accumulated other comprehensive loss
(4,344
)
(948
)
Accumulated deficit
(310,177
)
(280,153
)
Total stockholders' equity
456,710
483,756
Total liabilities and stockholders'
equity
$
587,389
$
615,312
ATRICURE, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP RESULTS
TO NON-GAAP RESULTS
(In Thousands)
(Unaudited)
Reconciliation of Non-GAAP Adjusted
Loss (Adjusted EBITDA)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Net loss, as reported
$
(14,841
)
$
(16,251
)
$
(30,024
)
$
(33,168
)
Income tax expense
45
66
101
97
Other expense, net
1,136
1,108
2,113
2,109
Depreciation and amortization expense
2,937
2,658
5,804
4,780
Share-based compensation expense
7,524
7,141
14,573
13,745
Change in fair value of contingent
consideration
—
2,600
—
5,100
Non-GAAP adjusted loss (adjusted
EBITDA)
$
(3,199
)
$
(2,678
)
$
(7,433
)
$
(7,337
)
Reconciliation of Non-GAAP Adjusted
Loss Per Share
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Net loss, as reported
$
(14,841
)
$
(16,251
)
$
(30,024
)
$
(33,168
)
Change in fair value of contingent
consideration
—
2,600
—
5,100
Non-GAAP adjusted net loss
$
(14,841
)
$
(13,651
)
$
(30,024
)
$
(28,068
)
Basic and diluted adjusted net loss per
share
$
(0.32
)
$
(0.30
)
$
(0.66
)
$
(0.63
)
Weighted average shares used in computing
adjusted net loss per share
Basic and diluted
45,692
45,035
45,610
44,834
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220802005913/en/
Angie Wirick AtriCure, Inc. Chief Financial Officer (513)
755-5334 awirick@atricure.com
Lynn Lewis or Marissa Bych Gilmartin Group Investor Relations
lynn@gilmartinir.com marrisa@gilmartinir.com
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