AtriCure, Inc. (Nasdaq: ATRC), a leading innovator in treatments
for atrial fibrillation (Afib) and left atrial appendage (LAA)
management, today announced second quarter 2021 financial
results.
“Our second quarter results were driven by outperformance across
our business, as strong underlying demand returned and we saw
continued progress toward making our platforms the standard of
care,” said Michael Carrel, President and Chief Executive Officer
of AtriCure. “We are poised for accelerating growth with the recent
FDA approval of our EPi-Sense® System to improve the lives of
millions of patients with long-standing persistent Afib. This
approval enriches the foundation of our Company, built on core
technologies which continue to deliver solid growth as we address
vastly underpenetrated markets.”
Second Quarter 2021 Financial
Results Revenue for the second quarter of 2021 was $71.4
million, an increase of 74.8% (an increase of 73.5% on a constant
currency basis) over second quarter 2020 revenue. U.S. revenue was
$60.1 million, an increase of $26.4 million or 78.4%, compared to
second quarter 2020 revenue. U.S. revenue growth was seen across
all product lines, driven by the receding impact of the COVID-19
pandemic in 2021 which resulted in stabilizing cardiac surgery
procedure volumes and increasing demand. International revenue
increased $4.1 million or 57.9% (an increase of 50.2% on a constant
currency basis) to $11.3 million, reflecting growth in most major
markets and across product lines. On a sequential basis, worldwide
revenue for the second quarter 2021 increased approximately 20%
over first quarter 2021.
Gross profit for the second quarter of 2021 was $54.1 million
compared to $27.7 million for the second quarter of 2020. Gross
margin was 75.8% and 67.7% for the second quarters of 2021 and 2020
respectively, reflecting the increase in revenue and reduced fixed
cost burden on cost of revenue with the return to normal production
in 2021, along with the favorable impact of both geographic and
product mix.
Loss from operations for the second quarter of 2021 was $15.1
million, compared to $7.3 million for the second quarter of 2020.
Net loss per share was $0.36 for the second quarter of 2021,
compared to $0.20 for the second quarter of 2020.
Adjusted EBITDA was a loss of $2.7 million for the second
quarter of 2021 compared to a $6.1 million loss for the second
quarter of 2020. Adjusted loss per share for the second quarter of
2021 was $0.30 compared to $0.38 for the second 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
Management is updating revenue guidance for full year 2021 to a
range of $270 to $275 million, corresponding to growth of
approximately 31% to 33% for the year. As with previous guidance,
continued uncertainty relating to the dynamic environment with the
COVID-19 pandemic could materially impact this projection. The
Company is maintaining guidance for full year 2021 adjusted EBITDA
loss of approximately $10 million, and updating guidance for an
adjusted loss per share of approximately $1.20.
Conference Call AtriCure
will host a conference call at 4:30 p.m. Eastern Time on Wednesday,
August 4, 2021 to discuss its second 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 8299332. 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 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 AFTM
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/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 June
30,
Six Months Ended June
30,
2021
2020
2021
2020
United States Revenue:
Open ablation
$
24,839
$
15,550
$
45,914
$
34,768
Minimally invasive ablation
9,702
4,755
18,087
11,316
Appendage management
25,156
13,021
45,743
30,440
Total ablation and appendage
management
59,697
33,326
109,744
76,524
Valve tools
373
338
635
613
Total United States
60,070
33,664
110,379
77,137
International Revenue:
Open ablation
5,513
3,744
9,930
8,859
Minimally invasive ablation
1,575
1,109
2,849
2,654
Appendage management
4,194
2,271
7,452
5,333
Total ablation and appendage
management
11,282
7,124
20,231
16,846
Valve tools
24
36
41
66
Total international
11,306
7,160
20,272
16,912
Total revenue
71,376
40,824
130,651
94,049
Cost of revenue
17,298
13,170
32,033
27,511
Gross profit
54,078
27,654
98,618
66,538
Operating expenses:
Research and development expenses
12,197
10,036
23,414
21,623
Selling, general and administrative
expenses
56,958
24,903
106,166
67,654
Total operating expenses
69,155
34,939
129,580
89,277
Loss from operations
(15,077
)
(7,285
)
(30,962
)
(22,739
)
Other expense, net
(1,108
)
(939
)
(2,109
)
(1,885
)
Loss before income tax expense
(16,185
)
(8,224
)
(33,071
)
(24,624
)
Income tax expense (benefit)
66
12
97
20
Net loss
$
(16,251
)
$
(8,236
)
$
(33,168
)
$
(24,644
)
Basic and diluted net loss per share
$
(0.36
)
$
(0.20
)
$
(0.74
)
$
(0.61
)
Weighted average shares used in computing
net loss per share:
Basic and diluted
45,035
41,649
44,834
40,160
ATRICURE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In Thousands)
(Unaudited)
June 30,
December 31,
2021
2020
Assets
Current assets:
Cash, cash equivalents, and short-term
investments
$
159,865
$
244,218
Accounts receivable, net
33,835
23,146
Inventories
37,608
35,026
Prepaid and other current assets
4,636
4,347
Total current assets
235,944
306,737
Property and equipment, net
30,175
28,290
Operating lease right-of-use assets
2,683
1,914
Long-term investments
69,770
14,178
Goodwill and intangible assets, net
362,015
362,980
Other noncurrent assets
488
440
Total assets
$
701,075
$
714,539
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable and accrued
liabilities
$
48,940
$
40,720
Other current liabilities and current
maturities of debt and leases
18,493
8,417
Total current liabilities
67,433
49,137
Long-term debt
43,669
53,435
Finance lease liabilities
10,540
10,969
Operating lease liabilities
1,833
1,180
Contingent consideration and other
noncurrent liabilities
192,517
187,424
Total liabilities
315,992
302,145
Stockholders' equity:
Common stock
46
45
Additional paid-in capital
748,644
742,389
Accumulated other comprehensive (loss)
income
(87
)
312
Accumulated deficit
(363,520
)
(330,352
)
Total stockholders' equity
385,083
412,394
Total liabilities and stockholders'
equity
$
701,075
$
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 June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Net loss, as reported
$
(16,251
)
$
(8,236
)
$
(33,168
)
$
(24,644
)
Income tax expense
66
12
97
20
Other expense, net
1,108
939
2,109
1,885
Depreciation and amortization expense
2,658
2,458
4,780
4,902
Share-based compensation expense
7,141
6,193
13,745
10,577
Contingent consideration adjustment
2,600
(7,504
)
5,100
(5,046
)
Acquisition costs
—
39
—
138
Non-GAAP adjusted loss (adjusted
EBITDA)
$
(2,678
)
$
(6,099
)
$
(7,337
)
$
(12,168
)
Reconciliation of Non-GAAP Adjusted
Loss Per Share
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Net loss, as reported
$
(16,251
)
$
(8,236
)
$
(33,168
)
$
(24,644
)
Contingent consideration adjustment
2,600
(7,504
)
5,100
(5,046
)
Net loss excluding contingent
consideration adjustment
$
(13,651
)
$
(15,740
)
$
(28,068
)
$
(29,690
)
Basic and diluted adjusted net loss per
share
$
(0.30
)
$
(0.38
)
$
(0.63
)
$
(0.74
)
Weighted average shares used in computing
adjusted net loss per share
Basic and diluted
45,035
41,649
44,834
40,160
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210804005943/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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