- Worldwide revenue of $40.8 million – a decrease of 30.7% year
over year
- U.S. revenue of $33.7 million – a decrease of 28.6% year over
year
- International revenue of $7.1 million – a decrease of 39.0%
year over year
AtriCure, Inc. (Nasdaq: ATRC), a leading innovator in treatments
for atrial fibrillation (Afib) and left atrial appendage (LAA)
management, today announced second quarter 2020 financial
results.
“Amidst tremendous uncertainty in this challenging environment,
our team at AtriCure has shown both resiliency and leadership
without missing a beat. We are continuing to support our clinician
partners in creative and evolving ways while maintaining our
patient-first culture,” said Michael Carrel, President and Chief
Executive Officer of AtriCure. “We are pleased by our second
quarter results, which as expected, experienced a trough in April,
then a rapid return in May, followed by steady volumes through
June. In addition, we achieved significant milestones on our
strategic initiatives with the release of the CONVERGE clinical
trial data in May as well as further progress on aMAZE, continued
success with Cryo Nerve Block, and ongoing training and education
programs.”
Mr. Carrel continued, “While we are encouraged by the
improvement in our business throughout the second quarter, we have
begun to experience more regional variability and procedure
slowdowns in July in response to the recent resurgence of COVID-19
cases and related restrictions. Despite the continued uncertainty,
as we look forward, we are extremely confident about our future. We
were able to strengthen our balance sheet this quarter, allowing us
to continue to invest in our people as well as our pillars to
ensure that AtriCure is well positioned for durable growth over the
next several years with a robust pipeline of clinical and product
innovation.”
Second Quarter 2020 Financial
Results
Revenue for the second quarter of 2020 was $40.8 million, a
decrease of $18.1 million or 30.7% (a decrease of 30.6% on a
constant currency basis), compared to second quarter 2019 revenue.
U.S. revenue decreased 28.6% to $33.7 million, and international
revenue decreased 39.0% to $7.1 million, (a decrease of 38.5% on a
constant currency basis), compared to second quarter 2019
revenue.
Gross profit for the second quarter of 2020 was $27.7 million
compared to $43.9 million for the second quarter of 2019. Gross
margin for the second quarter of 2020 decreased to 67.7% compared
to 74.5% in the second quarter of 2019.
Loss from operations for the second quarter of 2020 was $7.3
million, compared to $3.8 million for the second quarter of 2019.
Net loss per share was $0.20 for the second quarter of 2020
compared to $0.11 for the second quarter of 2019.
Adjusted EBITDA was a loss of $6.1 million for the second
quarter of 2020 compared to positive $1.4 million for the second
quarter of 2019. Adjusted loss per share for the second quarter of
2020 was $0.38 compared to an adjusted loss per share of $0.17 for
the second quarter of 2019. 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.
2020 Financial Guidance
As previously reported, AtriCure is not providing 2020 financial
guidance due to the continued uncertainties from the impact of
COVID-19.
Conference Call
AtriCure will host a conference call at 4:30 p.m. Eastern Time
on Tuesday, July 28, 2020 to discuss its second quarter 2020
financial results. The call may be accessed through an operator by
calling (844) 884-9951 for domestic callers and (661) 378-9661 for
international callers using conference ID number 6338708. A live
audio webcast of the presentation may be accessed by visiting the
Investors page of AtriCure’s corporate website at ir.atricure.com.
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 and only
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. 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. 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/fls as
well as our Annual Reports on Form 10-K and Quarterly Reports on
Form 10-Q which contain risk factors. We do not undertake to update
our forward-looking statements. Actual results could differ
materially.
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 uses certain non-GAAP financial measures in this release
as supplemental financial metrics.
Revenue reported on a constant currency basis is a non-GAAP
measure and is 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 the
Company’s investors.
Adjusted EBITDA is calculated as Net loss before other
income/expense (including interest), income tax expense,
depreciation and amortization expense, share-based compensation
expense, acquisition costs, and change in fair value of contingent
consideration liabilities. Management believes in order to properly
understand the 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, and previously used adjusted EBITDA as a
performance metric in the annual incentive plan. A reconciliation
of adjusted EBITDA reported in this release to the most comparable
GAAP measure for the respective periods can be found in the table
captioned “Reconciliation of Non-GAAP Adjusted (Loss) Income
(Adjusted EBITDA)” later in this release.
Adjusted loss per share is a non-GAAP measure which calculates
the net loss per share before non-cash adjustments to expenses
related to the adjustment in value of contingent consideration
liabilities. Management believes this metric provides a better
measure of comparability of results between periods, as such
adjustments can be significant and vary in value and are not
reflective of our core business. A reconciliation of adjusted loss
per share reported in this release to the most comparable GAAP
measure for the respective periods can be found 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 the same as those used 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.
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,
2020
2019
2020
2019
United States Revenue:
Open ablation
$
15,550
$
20,561
$
34,768
$
39,557
Minimally invasive ablation
4,755
9,092
11,316
16,854
Appendage management
13,021
16,498
30,440
32,168
Total ablation and appendage
management
33,326
46,151
76,524
88,579
Valve tools
338
1,014
613
1,590
Total United States
33,664
47,165
77,137
90,169
International Revenue:
Open ablation
3,744
6,792
8,859
13,092
Minimally invasive ablation
1,109
1,935
2,654
4,064
Appendage management
2,271
2,977
5,333
5,431
Total ablation and appendage
management
7,124
11,704
16,846
22,587
Valve tools
36
37
66
116
Total international
7,160
11,741
16,912
22,703
Total revenue
40,824
58,906
94,049
112,872
Cost of revenue
13,170
15,013
27,511
29,108
Gross profit
27,654
43,893
66,538
83,764
Operating expenses:
Research and development expenses
10,036
9,804
21,623
17,980
Selling, general and administrative
expenses
24,903
37,928
67,654
74,943
Total operating expenses
34,939
47,732
89,277
92,923
Loss from operations
(7,285
)
(3,839
)
(22,739
)
(9,159
)
Other expense, net
(939
)
(252
)
(1,885
)
(501
)
Loss before income tax expense
(8,224
)
(4,091
)
(24,624
)
(9,660
)
Income tax expense
12
10
20
76
Net loss
$
(8,236
)
$
(4,101
)
$
(24,644
)
$
(9,736
)
Basic and diluted net loss per share
$
(0.20
)
$
(0.11
)
$
(0.61
)
$
(0.26
)
Weighted average shares used in computing
net loss per share:
Basic and diluted
41,649
37,334
40,160
37,156
ATRICURE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In Thousands)
(Unaudited)
June 30,
December 31,
2020
2019
Assets
Current assets:
Cash, cash equivalents, and short-term
investments
$
232,498
$
81,801
Accounts receivable, net
22,892
28,046
Inventories
32,809
29,414
Prepaid and other current assets
3,835
3,899
Total current assets
292,034
143,160
Property and equipment, net
30,236
32,646
Operating lease right-of-use assets
2,573
4,032
Long-term investments
15,339
12,675
Goodwill and intangible assets, net
363,685
364,662
Other noncurrent assets
366
705
Total assets
$
704,233
$
557,880
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable and accrued
liabilities
$
30,351
$
47,698
Other current liabilities and current
maturities of debt and leases
7,701
2,218
Total current liabilities
38,052
49,916
Long-term debt
54,154
59,634
Finance lease liabilities
11,377
11,774
Operating lease liabilities
1,581
2,796
Contingent consideration and other
noncurrent liabilities
182,207
186,417
Total liabilities
287,371
310,537
Stockholders' equity:
Common stock
45
40
Additional paid-in capital
723,754
529,658
Accumulated other comprehensive loss
(96
)
(158
)
Accumulated deficit
(306,841
)
(282,197
)
Total stockholders' equity
416,862
247,343
Total liabilities and stockholders'
equity
$
704,233
$
557,880
ATRICURE, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP RESULTS
TO NON-GAAP RESULTS
(In Thousands)
(Unaudited)
Reconciliation of Non-GAAP Adjusted
(Loss) Income (Adjusted EBITDA)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Net loss, as reported
$
(8,236
)
$
(4,101
)
$
(24,644
)
$
(9,736
)
Income tax expense
12
10
20
76
Other expense, net
939
252
1,885
501
Depreciation and amortization expense
2,458
2,362
4,902
4,590
Share-based compensation expense
6,193
4,375
10,577
8,529
Contingent consideration adjustment
(7,504
)
(2,205
)
(5,046
)
(3,872
)
Acquisition costs
39
713
138
827
Non-GAAP adjusted (loss) income (adjusted
EBITDA)
$
(6,099
)
$
1,406
$
(12,168
)
$
915
Reconciliation of Non-GAAP Adjusted
Loss Per Share
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Net loss, as reported
$
(8,236
)
$
(4,101
)
$
(24,644
)
$
(9,736
)
Contingent consideration adjustment
(7,504
)
(2,205
)
(5,046
)
(3,872
)
Net loss excluding contingent
consideration adjustment
$
(15,740
)
$
(6,306
)
$
(29,690
)
$
(13,608
)
Basic and diluted adjusted net loss per
share
$
(0.38
)
$
(0.17
)
$
(0.74
)
$
(0.37
)
Weighted average shares used in computing
adjusted net loss per share
Basic and diluted
41,649
37,334
40,160
37,156
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200728005905/en/
Andy Wade AtriCure, Inc. Chief Financial Officer (513) 755-4564
awade@atricure.com
Lynn Pieper Lewis Gilmartin Group Investor Relations (415)
937-5402 lynn@gilmartinir.com
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