- Worldwide revenue of $54.8 million – a decrease of 3.3% year
over year
- U.S. revenue of $44.7 million – a decrease of 3.1% year over
year
- International revenue of $10.1 million – a decrease of 4.1%
year over year
AtriCure, Inc. (Nasdaq: ATRC), a leading innovator in treatments
for atrial fibrillation (Afib) and left atrial appendage (LAA)
management, today announced third quarter 2020 financial
results.
“We are pleased with our third quarter performance and the
improving trajectory of our business, which reflect the commitment
of our team and underlying demand in our core markets,” said
Michael Carrel, President and Chief Executive Officer of AtriCure.
“We are continuing to make significant progress on our strategic
initiatives and are on the forefront of meaningfully expanding our
addressable market opportunity.”
Third Quarter 2020 Financial
Results
Revenue for the third quarter of 2020 was $54.8 million, a
decrease of $1.9 million or 3.3% (a decrease of 3.9% on a constant
currency basis), compared to third quarter 2019 revenue, due to the
global decline in surgical procedures as a result of the COVID-19
pandemic. U.S. revenue decreased 3.1% to $44.7 million, and
international revenue decreased 4.1% to $10.1 million, (a decrease
of 7.2% on a constant currency basis), compared to third quarter
2019 revenue.
Gross profit for the third quarter of 2020 was $40.3 million
compared to $41.8 million for the third quarter of 2019. Gross
margin for the third quarter of 2020 remained relatively consistent
at 73.7% compared to 73.8% in the third quarter of 2019, reflecting
normal manufacturing operations during both periods.
Loss from operations for the third quarter of 2020 was $4.0
million, compared to $8.6 million for the third quarter of 2019.
Net loss per share was $0.11 for the third quarter of 2020 compared
to $0.25 for the third quarter of 2019. Adjusted EBITDA was a
positive $4.2 million for the third quarter of 2020 compared to a
loss of $2.2 million for the third quarter of 2019. Adjusted loss
per share for the third quarter of 2020 was $0.11 compared to an
adjusted loss per share of $0.33 for the third 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
Management expects revenue to be $56 million to $60 million for
the fourth quarter of 2020 and $205 million to $209 million for the
full year 2020. Full year adjusted EBITDA loss is expected to be
approximately $10 million.
Incrementally higher or lower impact from the on-going global
pandemic could cause forecasts for fourth quarter and full year
2020 to differ materially than these projections.
Conference Call
AtriCure will host a conference call at 4:30 p.m. Eastern Time
on Thursday, November 5, 2020 to discuss its third 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 8584906. 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 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 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
investors.
Adjusted EBITDA is calculated as Net loss before other
income/expense (including interest), income tax expense (benefit),
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 appears in the table
captioned “Reconciliation of Non-GAAP Adjusted Income (Loss)
(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 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
September 30,
Nine Months Ended
September 30,
2020
2019
2020
2019
United States Revenue:
Open ablation
$
19,911
$
19,754
$
54,679
$
59,311
Minimally invasive ablation
6,979
9,006
18,295
25,860
Appendage management
17,430
16,907
47,870
49,075
Total ablation and appendage
management
44,320
45,667
120,844
134,246
Valve tools
381
456
994
2,046
Total United States
44,701
46,123
121,838
136,292
International Revenue:
Open ablation
4,907
5,850
13,766
18,942
Minimally invasive ablation
1,692
2,058
4,346
6,122
Appendage management
3,445
2,532
8,778
7,963
Total ablation and appendage
management
10,044
10,440
26,890
33,027
Valve tools
12
51
78
167
Total international
10,056
10,491
26,968
33,194
Total revenue
54,757
56,614
148,806
169,486
Cost of revenue
14,423
14,817
41,934
43,925
Gross profit
40,334
41,797
106,872
125,561
Operating expenses:
Research and development expenses
10,576
10,154
32,199
28,134
Selling, general and administrative
expenses
33,749
40,280
101,403
115,223
Total operating expenses
44,325
50,434
133,602
143,357
Loss from operations
(3,991
)
(8,637
)
(26,730
)
(17,796
)
Other expense, net
(962
)
(650
)
(2,847
)
(1,151
)
Loss before income tax expense
(4,953
)
(9,287
)
(29,577
)
(18,947
)
Income tax expense (benefit)
(4
)
75
16
151
Net loss
$
(4,949
)
$
(9,362
)
$
(29,593
)
$
(19,098
)
Basic and diluted net loss per share
$
(0.11
)
$
(0.25
)
$
(0.71
)
$
(0.51
)
Weighted average shares used in computing
net loss per share:
Basic and diluted
44,012
37,842
41,442
37,387
ATRICURE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In Thousands)
(Unaudited)
September 30,
December 31,
2020
2019
Assets
Current assets:
Cash, cash equivalents, and short-term
investments
$
233,069
$
81,801
Accounts receivable, net
25,448
28,046
Inventories
34,326
29,414
Prepaid and other current assets
3,369
3,899
Total current assets
296,212
143,160
Property and equipment, net
29,089
32,646
Operating lease right-of-use assets
2,363
4,032
Long-term investments
16,516
12,675
Goodwill and intangible assets, net
363,218
364,662
Other noncurrent assets
399
705
Total assets
$
707,797
$
557,880
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable and accrued
liabilities
$
32,684
$
47,698
Other current liabilities and current
maturities of debt and leases
12,070
2,218
Total current liabilities
44,754
49,916
Long-term debt
49,985
59,634
Finance lease liabilities
11,172
11,774
Operating lease liabilities
1,324
2,796
Contingent consideration and other
noncurrent liabilities
183,030
186,417
Total liabilities
290,265
310,537
Stockholders' equity:
Common stock
45
40
Additional paid-in capital
729,220
529,658
Accumulated other comprehensive income
(loss)
57
(158
)
Accumulated deficit
(311,790
)
(282,197
)
Total stockholders' equity
417,532
247,343
Total liabilities and stockholders'
equity
$
707,797
$
557,880
ATRICURE, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP RESULTS
TO NON-GAAP RESULTS
(In Thousands)
(Unaudited)
Reconciliation of Non-GAAP Adjusted
Income (Loss) (Adjusted EBITDA)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Net loss, as reported
$
(4,949
)
$
(9,362
)
$
(29,593
)
$
(19,098
)
Income tax expense (benefit)
(4
)
75
16
151
Other expense, net
962
650
2,847
1,151
Depreciation and amortization expense
2,479
2,393
7,381
6,983
Share-based compensation expense
5,549
4,287
16,126
12,816
Contingent consideration adjustment
192
(3,062
)
(4,854
)
(6,934
)
Acquisition costs
—
2,819
138
3,645
Non-GAAP adjusted income (loss) (adjusted
EBITDA)
$
4,229
$
(2,200
)
$
(7,939
)
$
(1,286
)
Reconciliation of Non-GAAP Adjusted
Loss Per Share
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
Net loss, as reported
$
(4,949
)
$
(9,362
)
$
(29,593
)
$
(19,098
)
Contingent consideration adjustment
192
(3,062
)
(4,854
)
(6,934
)
Net loss excluding contingent
consideration adjustment
$
(4,757
)
$
(12,424
)
$
(34,447
)
$
(26,032
)
Basic and diluted adjusted net loss per
share
$
(0.11
)
$
(0.33
)
$
(0.83
)
$
(0.70
)
Weighted average shares used in computing
adjusted net loss per share
Basic and diluted
44,012
37,842
41,442
37,387
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201105006027/en/
Angie Wirick AtriCure, Inc. Chief Financial Officer (513)
755-5334 awirick@atricure.com
Lynn Pieper Lewis Gilmartin Group Investor Relations (415)
937-5402 lynn@gilmartinir.com
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