AtriCure, Inc. (Nasdaq: ATRC), a leading innovator in treatments
for atrial fibrillation (Afib) and left atrial appendage (LAA)
management, today announced first quarter 2021 financial
results.
“Our growth in the first quarter is a testament of our team’s
strong execution and unwavering dedication despite continued COVID
headwinds,” said Michael Carrel, President and Chief Executive
Officer of AtriCure. “As we navigate toward a return to normalcy, I
am confident that we are extremely well positioned for the future
with our pathway of growth catalysts and the realization of these
opportunities underway, beginning with CONVERGE.”
First Quarter 2021 Financial
Results
Revenue for the first quarter of 2021 was $59.3 million, an
increase of $6.1 million or 11.4% (an increase of 10.5% on a
constant currency basis), compared to first quarter 2020 revenue.
U.S. revenue was $50.3 million, an increase of $6.8 million or
15.7%, compared to first quarter 2020 revenue. U.S. revenue growth
was driven by increased sales across key products within open
ablation, minimally invasive ablation and appendage management
categories, reflecting continued recovery of domestic procedure
volumes. International revenue decreased 8.1% (a decrease of 12.9%
on a constant currency basis) to $9.0 million. The decline in
international revenue was driven by the various COVID-19
restrictions and delayed recoveries across the different
geographies. On a sequential basis, worldwide revenue for the first
quarter 2021 increased approximately 3% over fourth quarter
2020.
Gross profit for the first quarter of 2021 was $44.5 million
compared to $38.9 million for the first quarter of 2020. Gross
margin was 75.1% and 73.1% for the first quarters of 2021 and 2020
respectively, reflecting the favorable impact of both geographic
and product mix.
Loss from operations for the first quarter of 2021 was $15.9
million, compared to $15.5 million for the first quarter of 2020.
Net loss per share was $0.38 for the first quarter of 2021,
compared to $0.42 for the first quarter of 2020.
Adjusted EBITDA was a loss of $4.7 million for the first quarter
of 2021 compared to a $6.1 million loss for the first quarter of
2020. Adjusted loss per share for the first quarter of 2021 was
$0.32 compared to $0.36 for the first quarter of 2020.
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.
2021 Financial Guidance
Full year 2021 revenue is now projected to be approximately $252
million to $256 million. As with previous guidance, continued
uncertainty relating to the dynamic environment with the COVID-19
pandemic could materially impact this projection. Additionally, the
Company is maintaining guidance for full year 2021 adjusted EBITDA
loss of approximately $10 million and adjusted loss per share of
$1.15.
Conference Call
AtriCure will host a conference call at 4:30 p.m. Eastern Time
on Tuesday, April 27, 2021 to discuss its first quarter 2021
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 3349395. 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. 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/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.
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 loss before other
income/expense (including interest), income tax expense,
depreciation and amortization expense, share-based compensation
expense, acquisition costs, legal settlement costs, 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 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 in fair value of
contingent consideration liabilities and legal settlement costs. 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 March
31,
2021
2020
United States Revenue:
Open ablation
$
21,075
$
19,218
Minimally invasive ablation
8,385
6,561
Appendage management
20,587
17,419
Total ablation and appendage
management
50,047
43,198
Valve tools
262
275
Total United States
50,309
43,473
International Revenue:
Open ablation
4,417
5,115
Minimally invasive ablation
1,274
1,545
Appendage management
3,258
3,062
Total ablation and appendage
management
8,949
9,722
Valve tools
17
30
Total international
8,966
9,752
Total revenue
59,275
53,225
Cost of revenue
14,735
14,341
Gross profit
44,540
38,884
Operating expenses:
Research and development expenses
11,217
11,587
Selling, general and administrative
expenses
49,208
42,751
Total operating expenses
60,425
54,338
Loss from operations
(15,885
)
(15,454
)
Other expense, net
(1,001
)
(946
)
Loss before income tax expense
(16,886
)
(16,400
)
Income tax expense (benefit)
31
8
Net loss
$
(16,917
)
$
(16,408
)
Basic and diluted net loss per share
$
(0.38
)
$
(0.42
)
Weighted average shares used in computing
net loss per share:
Basic and diluted
44,632
38,671
ATRICURE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In Thousands)
(Unaudited)
March 31,
December 31,
2021
2020
Assets
Current assets:
Cash, cash equivalents, and short-term
investments
$
227,205
$
244,218
Accounts receivable, net
29,741
23,146
Inventories
36,144
35,026
Prepaid and other current assets
5,214
4,347
Total current assets
298,304
306,737
Property and equipment, net
27,633
28,290
Operating lease right-of-use assets
1,622
1,914
Long-term investments
9,127
14,178
Goodwill and intangible assets, net
362,742
362,980
Other noncurrent assets
474
440
Total assets
$
699,902
$
714,539
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable and accrued
liabilities
$
45,155
$
40,720
Other current liabilities and current
maturities of debt and leases
13,308
8,417
Total current liabilities
58,463
49,137
Long-term debt
48,552
53,435
Finance lease liabilities
10,749
10,969
Operating lease liabilities
966
1,180
Contingent consideration and other
noncurrent liabilities
189,929
187,424
Total liabilities
308,659
302,145
Stockholders' equity:
Common stock
46
45
Additional paid-in capital
738,484
742,389
Accumulated other comprehensive (loss)
income
(18
)
312
Accumulated deficit
(347,269
)
(330,352
)
Total stockholders' equity
391,243
412,394
Total liabilities and stockholders'
equity
$
699,902
$
714,539
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 March
31,
2021
2020
Net loss, as reported
$
(16,917
)
$
(16,408
)
Income tax expense
31
8
Other expense, net
1,001
946
Depreciation and amortization expense
2,122
2,444
Share-based compensation expense
6,604
4,384
Contingent consideration adjustment
2,500
2,458
Acquisition costs
—
99
Non-GAAP adjusted loss (adjusted
EBITDA)
$
(4,659
)
$
(6,069
)
Reconciliation of Non-GAAP Adjusted
Loss Per Share
Three Months Ended March
31,
2021
2020
Net loss, as reported
$
(16,917
)
$
(16,408
)
Contingent consideration adjustment
2,500
2,458
Net loss excluding contingent
consideration adjustment
$
(14,417
)
$
(13,950
)
Basic and diluted adjusted net loss per
share
$
(0.32
)
$
(0.36
)
Weighted average shares used in computing
adjusted net loss per share
Basic and diluted
44,632
38,671
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210427006089/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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