LAWRENCE, Mass., Nov. 3, 2011 /PRNewswire/ --
- Revenue Increases to $55.9 million, up 24% from Q3'10
- Home Market Increases to $27.2 million, up 22% from Q3'10
- Gross Margin Increases to 35%, up from 33% in Q3'10
NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported record financial results for the third quarter ended September 30, 2011, with total revenue well above the top end of its guidance range.
Revenue for the third quarter of 2011 increased to $55.9 million, an increase of 24 percent when compared with revenue of $45.0 million for the third quarter of 2010. The growth was driven by strong operating performance across the Company's business.
The Company grew Home revenue to $27.2 million for the third quarter of 2011, representing an increase of 22 percent when compared with revenue of $22.3 million for the third quarter of 2010. Critical Care revenue grew to $9.2 million for the third quarter of 2011, representing an increase of 35 percent when compared with revenue of $6.8 million for the third quarter of 2010. Revenue for In-Center, from the Company's Medisystems business, increased to $19.5 million for the third quarter of 2011, representing an increase of 23 percent when compared with revenue of $15.9 million for the third quarter of 2010.
"Not only was this a record quarter with respect to revenues, but also one where we made meaningful progress in advancing metrics across our business," stated Jeffrey H. Burbank, CEO of NxStage Medical, Inc. "These results are strong validation of our business model and we see significant opportunities across our business to advance our long term growth strategy. We are particularly pleased with the growing strength of clinical data showing that patients benefit from more frequent hemodialysis and that they live longer and healthier lives."
NxStage reported a net loss of $5.3 million, or ($0.10) per share, for the third quarter of 2011 compared with a net loss of $8.2 million, or ($0.17) per share, for the third quarter of 2010.
For the third quarter of 2011, the Company reported Adjusted EBITDA, adjusted for stock-based compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expenses of $2.4 million, compared with an Adjusted EBITDA of $0.5 million in the third quarter of 2010. (See the exhibits for a reconciliation of this non-GAAP measure.)
For the fourth quarter of 2011, the Company is forecasting revenue to be within a range of $55.5 to $56.5 million. At this revenue level, the Company would expect a net loss in the range of $4.5 to $5.5 million or ($0.08) to ($0.10) per share, and Adjusted EBITDA in the range of $1.5 to $2.5 million for the fourth quarter of 2011.
The Company's fourth quarter revenue guidance translates to an upward revision of the Company's annual guidance, putting expected revenue above the top end of its previous range. The Company now expects annual revenue to be within a range of $216 to $217 million compared with previous guidance for revenue to be within a range of $210 to $215 million. The Company continues to expect a net loss in the range of $19 to $23 million or ($0.36) to ($0.43) per share, and for Adjusted EBITDA to be in the range of $6.0 million to $10.0 million for the 2011 fiscal year. The Company expects the fourth quarter gross margin percentage to be between 37 and 38 percent.
This release contains a non-GAAP financial measure. A reconciliation of the Company's non-GAAP financial measure to its most comparable GAAP financial measure is in the exhibits to this press release.
Conference Call:NxStage will also host a conference call today at 9:00 a.m. Eastern Time to discuss its third quarter financial results. To listen to the conference call, please dial 877-392-9886 (domestic) or 707-287-9329 (international). The call will also be webcast LIVE and can be accessed via the investor relations section of the Company's website at www.nxstage.com/ir.cfm.
A replay of the conference call will be available 2 hours after the conclusion of the call through November 17, 2011. To access the replay dial 855-859-2056 (domestic) or 404-537-3406 (international). The conference ID is 17404745. An online archive of the conference call can be accessed via the investor relations section of the Company's website at www.nxstage.com/ir.cfm.
About NxStageNxStage Medical, Inc. (Nasdaq: NXTM) is a medical device company, headquartered in Lawrence, Massachusetts, USA, that develops, manufactures and markets innovative products for the treatment of ESRD and acute kidney failure. For more information on NxStage and its products, please visit the company's website at www.nxstage.com.
Forward-Looking StatementsThis release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. Examples of these forward-looking statements include statements as to the anticipated demand for the Company's products, anticipated operating results, including revenues, loss, gross margin and Adjusted EBITDA numbers, and other expectations as to future operating results. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond NxStage's control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements, including market acceptance and demand for NxStage's products, growth in home and/or daily hemodialysis, unanticipated difficulties in achieving operational efficiencies and cost reductions, changes in reimbursement for home and daily hemodialysis, changes in the regulatory environment, changes in the historical purchasing patterns and preferences of our customers, including DaVita Inc., Fresenius, and certain other factors that may affect future operating results and which are detailed in NxStage's filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the period ended June 30, 2011.
In addition, the statements in this press release represent NxStage's expectations and beliefs as of the date of this press release. NxStage anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while NxStage may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing NxStage's expectations or beliefs as of any date subsequent to the date of this press release.Contact:Kristen K. Sheppard, Esq.VP, Investor Relationsksheppard@nxstage.comNon-GAAP Financial Measure
The Company discloses a certain non-GAAP financial measure to supplement the Company's consolidated financial statements presented on a GAAP basis. This non-GAAP measure is not in accordance with, or an alternative for, generally accepted accounting principles in the United States and may be different from similar non-GAAP financial measures used by other companies. The non-GAAP financial measure disclosed by the Company is not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Management uses Adjusted EBITDA (EBITDA adjusted for stock based-compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expenses) to understand operational cash usage. The Company believes the non-GAAP financial measure provides useful and supplementary information allowing investors greater transparency to one measure used by management. The non-GAAP financial measure is meant to supplement, and to be viewed in conjunction with, GAAP financial measures. The non-GAAP financial measure is reconciled to the most comparable GAAP financial measure below.
NxStage Medical, Inc.Condensed Consolidated Statements of Operations(in thousands, except per share data)(unaudited)Three Months EndedNine Months EndedSeptember 30,September 30,2011201020112010Revenues
$55,903$45,033$160,235$129,449Cost of revenues
19,54014,96056,43840,535Operating expenses:Selling and marketing
9,4468,45228,02525,034Research and development
4,7093,78813,29810,831General and administrative
5,7086,02316,75016,604Total operating expenses
23,25121,39568,76761,838Loss from operations
(3,711)(6,435)(12,329)(21,303)Other expense:Interest expense
(1,186)(1,176)(3,513)(3,432)Other (expense), net
(146)(341)(342)(128)(1,332)(1,517)(3,855)(3,560)Net loss before income taxes
(5,043)(7,952)(16,184)(24,863)Provision for income taxes
$ (5,278)$ (8,164)$ (16,838)$ (25,419)Net loss per share, basic and diluted
$ (0.10)$ (0.17)$
(0.54)Weighted-average shares outstanding, basic and diluted
54,42848,04953,95347,501NxStage Medical, Inc.Condensed Consolidated Balance Sheets(in thousands, except share data)(unaudited)September 30,December 31,20112010ASSETSCurrent assets:Cash and cash equivalents$
4,339Accounts receivable, net17,49714,107Inventory35,56334,950Prepaid expenses and other current assets3,1042,084Total current assets157,411155,480Property and equipment, net14,2768,290Field equipment, net12,71813,660Deferred cost of revenues41,35540,081Intangible assets, net23,31425,412Goodwill42,69842,698Other assets1,497473Total assets$
286,094LIABILITIES AND STOCKHOLDERS’ EQUITYCurrent liabilities:Accounts payable$
,811Accrued expenses16,26519,537Current portion of long-term debt-43Total current liabilities35,46036,391Deferred revenues56,68255,366Long-term debt42,52140,454Other long-term liabilities6,9941,754Total liabilities141,657133,965Commitments and contingenciesStockholders’ equity:Undesignated preferred stock: par value $0.001, 5,000,000 shares authorized; no shares issued and outstanding as of September 30, 2011 and December 31, 2010--Common stock: par value $0.001, 100,000,000 shares authorized; 55,617,552 and 54,043,317 shares issued as of September 30, 2011 and December 31, 2010, respectively5553Additional paid-in capital485,191465,642Accumulated deficit(325,264)(308,426)Accumulated other comprehensive income14685Treasury stock, at cost: 480,923 and 325,104 shares as of September 30, 2011 and December 31, 2010, respectively(8,516)(5,225)Total stockholders’ equity151,612152,129Total liabilities and stockholders’ equity$
286,094NxStage Medical, Inc.Cash Flows from Operating Activities(in thousands)(unaudited)Nine Months EndedSeptember 30,20112010Cash flows from operating activities:Net loss
$ (16,838)$ (25,419)Adjustments to reconcile net loss to netcash used in operating activities:Depreciation and amortization
2,3871,750Changes in operating assets and liabilities:Accounts receivable
(15,196)(20,504)Prepaid expenses and other assets
2,296(3,376)Accrued expenses and other liabilities
1,31614,087Net cash used in operating activities
$ (3,740)$ (2,248)NxStage Medical, Inc.Revenues by Segment(in thousands)Three Months EndedNine Months EndedSeptember 30,September 30,2011201020112010System One segment Home
$ 27,218$ 22,346$ 80,276$ 62,204 Critical Care
9,1706,81725,19919,528Total System One segment
$ 55,903$ 45,033$ 160,235$ 129,449NxStage Medical, Inc.Non-GAAP Financial Measures(in millions)(unaudited)Three Months EndedNine Months EndedSeptember 30,September 30,2011201020112010Net loss
$ (5.3)$ (8.2)$ (16.8)$ (25.4)Less: Depreciation, amortization, interest, and taxes
7.57.621.921.0Less: Adjusting items*
0.21.10.23.4Adjusted EBITDA gain (loss)
$ 2.4$ 0.5$
5.3$ (1.0)* Adjusting items include stock-based compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expensesNxStage Medical, Inc.Non-GAAP Financial Guidance(amounts in millions)Three Months EndedDecember 31, 2011High
(5.5)Less: Depreciation, amortization, interest, and taxes
7.37.3Less: Adjusting items*
(0.3)(0.3)Adjusted EBITDA gain
.5* Adjusting items include stock-based compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expenses
|SOURCE NxStage Medical, Inc.|
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