- Reports record first quarter non-GAAP earnings per
share of $0.31
- Increases 2015 revenue and non-GAAP earnings
guidance
- Awarded $32.5M California Hearing Coordination Center
(HCC) Contract
Natus Medical Incorporated (Nasdaq:BABY) today
announced financial results for the three months ended March 31,
2015.
For the first quarter ended March 31, 2015, the Company reported
revenue of $89.4 million, an increase of 4.4% compared to $85.6
million reported for the first quarter 2014. GAAP net income was
$8.6 million, or $0.26 per diluted share, compared with GAAP net
income of $6.8 million, or $0.21 per diluted share in the first
quarter 2014.
The Company reported non-GAAP net income of $10.3 million for
the first quarter ended March 31, 2015, an increase of 24.0% over
the prior year of $8.3 million. Non-GAAP earnings per diluted share
was $0.31 for the first quarter 2015, compared to $0.26 in the
first quarter 2014.
Cash and cash equivalents increased by $0.4 million to $67.0
million during the quarter. The Company spent $12.1 million on
acquisitions and repurchased $1.3 million of company stock during
the quarter.
The Company announced that it has been awarded a five-year,
$32.5 million contract to provide hearing screening coordination
services for the state of California. Natus works with hospitals
and caregivers in the hearing screening community to track and
monitor hearing loss in infants and guides families to the
appropriate services as soon as possible.
"I am very pleased with our first quarter results as we achieved
record revenues and earnings. Revenue came in at the high end of
our guidance while earnings exceeded our guidance. I am most
satisfied that we were able to achieve these results in the face of
approximately $2 million of negative currency effects on revenue
during the quarter," said Jim Hawkins, President and Chief
Executive Officer of the Company.
"Both our Neurodiagnostic and Newborn Care businesses performed
well in the quarter led by outstanding performance in our domestic
Newborn Care business. Our non-GAAP gross profit margin of 60.7%
showed continued improvement over the 59.5% we reported last year
as well as our 16.9% non- GAAP operating profit margin compared to
13.7% last year. We continue to drive to our 18% operating profit
margin goal for 2015," Mr. Hawkins continued. "Our new business
initiatives, GND, Peloton and NicView all reported revenues beyond
our expectations in the quarter. We believe each of these
initiatives has substantial growth opportunities in the quarters
and years ahead. These new initiatives are the beginning of an
expanded service business and they position Natus for accelerating
revenue growth and record earnings in 2015," said Hawkins.
Financial Guidance
The Company provided revenue and earnings guidance for the
second quarter and increased its revenue and earnings guidance for
the full year 2015.
For the second quarter of 2015, the Company expects revenue of
$89.5 million to $91.5 million and non-GAAP earnings per share of
$0.31 to $0.33.
The Company increased its non-GAAP earnings guidance for the
full year 2015 and now expects to report non-GAAP earnings per
share of $1.47 to $1.51, an increase from previous guidance of
$1.42 to $1.46. Full year 2015 revenue guidance was increased to
$376 million to $378 million compared to previous guidance of $373
million to $375 million.
The Company's non-GAAP earnings guidance excludes amortization
of acquisition related intangibles, acquisition related charges,
restructuring charges, and their related tax effects. Non-GAAP
earnings guidance includes the impact of expensing employee share
based compensation. All non-GAAP earnings per share amounts are on
a diluted basis.
Use of Non-GAAP Financial Measures
The Company's non-GAAP results exclude amortization expense
associated with certain acquisition-related intangibles,
restructuring charges, certain discreet tax items, direct costs of
acquisitions and the related tax effects. A reconciliation between
non-GAAP and GAAP financial measures is included in this press
release.
The Company believes that the presentation of results excluding
these charges provides meaningful supplemental information to both
management and investors that is indicative of the Company's core
operating results. Therefore, the Company believes these non-GAAP
financial measures facilitate comparison of operating results
across reporting periods.
The Company believes that both management and investors benefit
from referring to these non-GAAP financial measures in assessing
the Company's performance and when planning, forecasting, and
analyzing future periods. These non-GAAP financial measures also
facilitate management's internal comparisons to the Company's
historical performance. The non-GAAP financial measures disclosed
by the Company should not be considered a substitute for or
superior to financial measures calculated in accordance with GAAP,
and the financial results calculated in accordance with GAAP and
reconciliations to those financial statements should be carefully
evaluated.
Conference Call
Natus has scheduled an investment-community conference call to
discuss this announcement beginning at 11:00 a.m. Eastern Time
(8:00 a.m. Pacific Time) today, April 22, 2015. Individuals
interested in listening to the conference call may do so by dialing
1-800-237-9752 for domestic callers, or 1-617-847-8706 for
international callers, and entering reservation code 53938312. A
telephone replay will be available for 48 hours following the
conclusion of the call by dialing 1-888-286-8010 for domestic
callers, or 1-617-801-6888 for international callers, and entering
reservation code 89796793.The conference call also will be
available real-time via the Internet at http://investor.natus.com,
and a recording of the call will be available on the Company's Web
site for 90 days following the completion of the call.
About Natus Medical Incorporated
Natus is a leading provider of healthcare products and services
used for the screening, detection, treatment, monitoring and
tracking of common medical ailments in neurological dysfunction,
epilepsy, sleep disorders, newborn care, hearing impairment and
balance and mobility disorders.
Additional information about Natus Medical can be found at
www.natus.com.
Forward-Looking Statements
This press release contains forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995,
particularly statements regarding the expectations, beliefs, plans,
intentions and strategies of Natus. These forward-looking
statements include statements regarding our long term goals of
revenue growth and improved margins, revenue and non‑GAAP
profitability in the second quarter and full year 2015. These
statements relate to estimates and assumptions regarding future
events including Natus' future financial performance and the
ultimate realized value of the HCC contract award. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results, levels of activity, performance, or
achievements to differ materially from those expressed or implied
by the forward-looking statements. Forward-looking statements are
only predictions and the actual events or results may differ
materially. Natus cannot provide any assurance that its future
results or the results implied by the forward-looking statements
will meet expectations. Our future results could differ materially
due to a number of factors, including the effects of competition,
the demand for our products and services, the impact of adverse
global economic conditions on our target markets, our ability to
maintain current sales levels in a mature domestic market, our
ability to control costs, risks associated with bringing new
products to market and integrating acquired businesses, and our
ability to fulfill product orders on a timely basis. Natus
disclaims any obligation to update information contained in any
forward looking statement.
More information about potential risk factors that could affect
the business and financial results of Natus is included in Natus'
annual report on Form 10-K for the year ended December 31, 2014 and
in other reports filed from time to time by Natus with the U.S.
Securities and Exchange Commission.
| NATUS MEDICAL
INCORPORATED AND SUBSIDIARIES |
| UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS |
| (in thousands, except
per share amounts) |
| |
|
| |
Quarter
Ended |
| |
March 31, 2015 |
March 31, 2014 |
| Revenue |
$89,395 |
$85,624 |
| Cost of revenue |
35,105 |
33,981 |
| Intangibles amortization |
682 |
1,046 |
| Gross profit |
53,608 |
50,597 |
| Gross profit margin |
60.0% |
59.1% |
| Operating expenses: |
|
|
| Marketing and selling |
20,742 |
20,629 |
| Research and development |
6,857 |
7,177 |
| General and administrative |
11,552 |
11,460 |
| Intangibles amortization |
955 |
1,406 |
| Restructuring |
156 |
538 |
| Total operating expenses |
40,262 |
41,210 |
| Income from operations |
13,346 |
9,387 |
| Other income/(expense), net |
(829) |
312 |
| Income before tax |
12,517 |
9,699 |
| Provision for income tax expense |
3,920 |
2,944 |
| Net income |
$8,597 |
$6,755 |
| Earnings per share: |
|
|
| Basic |
$0.27 |
$0.22 |
| Diluted |
$0.26 |
$0.21 |
| Weighted-average shares: |
|
|
| Basic |
32,127 |
31,062 |
| Diluted |
33,097 |
32,185 |
| NATUS MEDICAL
INCORPORATED AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED
BALANCE SHEETS (unaudited) |
| (in
thousands) |
| |
|
|
| |
March 31, |
December 31, |
| |
2015 |
2014 |
| ASSETS |
|
|
| |
|
|
| Current assets: |
|
|
| Cash and cash equivalents |
$66,999 |
$66,558 |
| Accounts receivable, net |
81,990 |
82,277 |
| Inventories |
41,371 |
40,051 |
| Other current assets |
27,879 |
28,919 |
| Total current assets |
218,239 |
217,805 |
| |
|
|
| Property and equipment, net |
18,214 |
17,923 |
| Goodwill and intangible assets |
198,758 |
189,077 |
| Other assets |
8,529 |
10,016 |
| Total assets |
$443,740 |
$434,821 |
| |
|
|
| LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
| |
|
|
| Current liabilities: |
|
|
| Accounts payable |
$22,253 |
$21,371 |
| Accrued liabilities |
37,122 |
36,024 |
| Deferred revenue |
12,014 |
11,745 |
| Total current liabilities |
71,389 |
69,140 |
| |
|
|
| Long-term liabilities: |
|
|
| Other long-term liabilities |
13,786 |
12,966 |
| Total liabilities |
85,175 |
82,106 |
| Total stockholders' equity |
358,565 |
352,715 |
| Total liabilities and stockholders'
equity |
$443,740 |
$434,821 |
| |
| NATUS MEDICAL
INCORPORATED AND SUBSIDIARIES |
| RECONCILIATION OF
NON-GAAP ADJUSTMENTS (UNAUDITED) |
| (in thousands, except
per share amounts) |
| |
|
| |
Quarter
Ended |
| |
March 31, 2015 |
March 31, 2014 |
| GAAP based results: |
|
|
| Income before provision for income
tax |
$12,517 |
$9,699 |
| |
|
|
| Restatement adjustment |
— |
(706) |
| |
|
|
| Non-GAAP adjustments: |
|
|
| Amortization of intangibles: |
|
|
| Cost of revenue |
682 |
1,045 |
| Marketing and selling |
601 |
788 |
| Research and development |
354 |
344 |
| |
|
|
| Restructuring charges (G&A) |
156 |
635 |
| Direct costs of acquisitions (G&A) |
— |
195 |
| Non-GAAP income before provision for income
tax |
14,310 |
12,000 |
| |
|
|
| Income tax expense, as adjusted |
4,036 |
3,713 |
| |
|
|
| Non-GAAP net income |
$10,274 |
$8,287 |
| Non-GAAP earnings per
share: |
|
|
| Basic |
$0.32 |
$0.27 |
| Diluted |
$0.31 |
$0.26 |
| |
|
|
| |
|
|
| Weighted-average shares used to
compute |
|
|
| Basic non-GAAP earnings per share |
32,127 |
31,062 |
| Diluted non-GAAP earnings per share |
33,097 |
32,185 |
| |
|
|
| GAAP Gross profit |
53,608 |
50,597 |
| Restatement adjustment |
— |
(706) |
| Amortization of intangibles |
682 |
1,045 |
| Non-GAAP Gross Profit |
54,290 |
50,936 |
| Non-GAAP Gross Margin |
60.7% |
59.5% |
| |
|
|
| GAAP Operating profit |
13,346 |
9,387 |
| Restatement adjustment |
— |
(706) |
| Amortization of intangibles |
1,637 |
2,177 |
| Restructuring and other charges |
156 |
830 |
| Non-GAAP Operating profit |
15,139 |
11,688 |
| Non-GAAP Operating
margin |
16.9% |
13.7% |
CONTACT: COMPANY CONTACT:
Natus Medical Incorporated
Jonathan A. Kennedy
Sr. Vice President and Chief Financial Officer
(925) 223-6700
InvestorRelations@Natus.com
PishPosh (NASDAQ:BABY)
Historical Stock Chart
From Oct 2024 to Nov 2024
PishPosh (NASDAQ:BABY)
Historical Stock Chart
From Nov 2023 to Nov 2024
