UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) of the
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in charter)
|
|
|
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of Principal Executive Offices, and Zip Code)
(
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
|
|
|
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02. Results of Operations and Financial Condition.
On February 23, 2021, AtriCure, Inc. issued a press release regarding its financial results for the fourth quarter and full-year ended December 31, 2020. The Company will hold a conference call on February 23, 2021 at 4:30 p.m. Eastern Time to discuss the financial results. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
The information in this Item 2.02 of Form 8-K and in the press release attached as Exhibit 99.1 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in Item 2.02 of this Form 8-K and Exhibit 99.1 shall not be incorporated by reference in any filing or other document under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in any such filing or document.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
|
|
|
No. |
| Description |
99.1 |
| |
104 |
| Cover Page Interactive Data File--the cover page XBRL tags are embedded within the Inline XBRL document. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
|
|
| ATRICURE, INC. | |
|
|
|
|
Dated: | February 23, 2021 | By: | /s/ Angela L. Wirick |
|
|
| Angela L. Wirick |
|
|
| Chief Financial Officer |
|
Exhibit 99.1 |
February 23, 2021
AtriCure Reports Fourth Quarter 2020 and Full Year 2020 Financial Results
MASON, Ohio, February 23, 2021 – AtriCure, Inc. (Nasdaq: ATRC), a leading innovator in treatments for atrial fibrillation (Afib) and left atrial appendage (LAA) management, today announced fourth quarter 2020 and full year 2020 financial results.
“Despite challenges posed in 2020 as a result of the pandemic, we made meaningful progress across our business with our strategic initiatives,” said Michael Carrel, President and Chief Executive Officer of AtriCure. “Looking ahead to 2021 and beyond, we are building on the strength of our core platform with key catalysts on the horizon which expand our market opportunities and position the company well for accelerated and sustainable revenue growth over the long term.”
Fourth Quarter 2020 Financial Results
Revenue for the fourth quarter of 2020 was $57.7 million, a decrease of $3.6 million or 5.9% (a decrease of 6.6% on a constant currency basis), compared to fourth quarter 2019 revenue. U.S. revenue was $47.4 million, a decrease of $2.1 million or 4.3%, compared to fourth quarter 2019 revenue. International revenue decreased 12.4% (a decrease of 16.1% on a constant currency basis) to $10.3 million. The decline in both U.S. and international revenue was driven by the global decline in surgical procedures as a result of the COVID-19 pandemic. On a sequential quarter basis, worldwide revenue for fourth quarter 2020 increased approximately 5% over third quarter 2020. The sequential increase in revenue reflects stabilizing procedure volumes for the majority of the fourth quarter 2020.
Gross profit for the fourth quarter of 2020 was $42.4 million compared to $44.8 million for the fourth quarter of 2019. Gross margin was 73.5% and 73.0% for the fourth quarters of 2020 and 2019 respectively, largely reflecting the impact of geographic mix.
Loss from operations for the fourth quarter of 2020 was $17.5 million, compared to $15.3 million for the fourth quarter of 2019. Net loss per share was $0.42 for both the fourth quarter of 2020 and 2019.
Adjusted EBITDA was positive $1.7 million for the fourth quarter of 2020 compared to a $5.4 million loss for the fourth quarter of 2019. Adjusted loss per share for the fourth quarter of 2020 was $0.18 compared to $0.37 for the fourth 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 Results
Revenue for 2020 was $206.5 million, a decrease of $24.3 million or 10.5% (a decrease of 10.7% on a constant currency basis), compared to 2019 revenue. U.S. revenue decreased 8.9% to $169.2 million. International revenue was $37.3 million, a decrease of $7.7 million or 17.1% (a decrease of 18.3% on a constant currency basis). The decrease in revenue was due to the global decline in surgical procedures as a result of the COVID-19 pandemic.
Gross profit for 2020 was $149.3 million compared to $170.3 million for 2019, and gross margin decreased to 72.3% for 2020 compared to 73.8% for 2019. Gross margin was impacted in 2020 by a period of reduced production activity as well as the absorption of a full year of SentreHEART operations.
Loss from operations for 2020 was $44.2 million, compared to $33.1 million for 2019. Adjusted EBITDA was a loss of $6.3 million for 2020, compared to $6.7 million loss for 2019. Net loss per share was $1.14 for 2020 compared to $0.94 for 2019. The adjusted loss per share for 2020 was $1.01 compared to an adjusted loss per share of $1.07 for 2019.
2021 Financial Guidance
Full year 2021 revenue is projected to be approximately $250 million. Continued uncertainty relating to the dynamic environment with the COVID-19 pandemic could materially impact this projection. Full year 2021 adjusted EBITDA is expected to be a loss of approximately $10 million and the full year 2021 adjusted loss per share approximately $1.15.
First quarter 2021 revenue is expected to be in the range of $55 million to $57 million. First quarter 2021 adjusted EBITDA is expected to be a loss in the range of $5 million to $6 million. Adjusted loss per share for the first quarter 2021 is projected to be in the range of $0.36 to $0.39.
Conference Call
AtriCure will host a conference call at 4:30 p.m. Eastern Time on Tuesday, February 23, 2021 to discuss its fourth quarter 2020 and full year 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 6352259. 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. Due to the nonrecurring nature of legal settlement costs, the Company has modified the calculation of adjusted EBITDA to exclude legal settlement costs. Legal settlement costs reflect the Company’s estimated settlement value of a claim by former nContact stockholders. The Company believes it is now appropriate to modify the calculation of adjusted EBITDA to exclude legal settlement costs because the Company has concluded that settlement costs are generally nonrecurring and are not reflective of the operational results of the Company’s core business, and the Company believes this approach is more comparable to peer company reporting. 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 in fair value of contingent consideration liabilities and legal settlement costs. Management believes it is now appropriate to modify the calculation of adjusted loss per share to exclude legal settlement costs, as such amounts 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.
CONTACTS:
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
|
ATRICURE, INC. AND SUBSIDIARIES |
||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||
|
(In Thousands, Except Per Share Amounts) |
||||||||||||
|
(Unaudited) |
||||||||||||
|
|
||||||||||||
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
|
December 31, |
|
December 31, |
||||||||
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||
|
United States Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Open ablation |
|
$ |
20,720 |
|
$ |
20,894 |
|
$ |
75,399 |
|
$ |
80,205 |
|
Minimally invasive ablation |
|
|
7,352 |
|
|
8,982 |
|
|
25,647 |
|
|
34,842 |
|
Appendage management |
|
|
19,111 |
|
|
19,091 |
|
|
66,981 |
|
|
68,166 |
|
Total ablation and appendage management |
|
|
47,183 |
|
|
48,967 |
|
|
168,027 |
|
|
183,213 |
|
Valve tools |
|
|
223 |
|
|
570 |
|
|
1,217 |
|
|
2,616 |
|
Total United States |
|
|
47,406 |
|
|
49,537 |
|
|
169,244 |
|
|
185,829 |
|
International Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Open ablation |
|
|
4,889 |
|
|
6,003 |
|
|
18,655 |
|
|
24,945 |
|
Minimally invasive ablation |
|
|
1,825 |
|
|
2,227 |
|
|
6,171 |
|
|
8,349 |
|
Appendage management |
|
|
3,575 |
|
|
3,513 |
|
|
12,353 |
|
|
11,476 |
|
Total ablation and appendage management |
|
|
10,289 |
|
|
11,743 |
|
|
37,179 |
|
|
44,770 |
|
Valve tools |
|
|
30 |
|
|
41 |
|
|
108 |
|
|
208 |
|
Total international |
|
|
10,319 |
|
|
11,784 |
|
|
37,287 |
|
|
44,978 |
|
Total revenue |
|
|
57,725 |
|
|
61,321 |
|
|
206,531 |
|
|
230,807 |
|
Cost of revenue |
|
|
15,288 |
|
|
16,547 |
|
|
57,222 |
|
|
60,472 |
|
Gross profit |
|
|
42,437 |
|
|
44,774 |
|
|
149,309 |
|
|
170,335 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses |
|
|
10,871 |
|
|
13,096 |
|
|
43,070 |
|
|
41,230 |
|
Selling, general and administrative expenses |
|
|
49,069 |
|
|
47,004 |
|
|
150,472 |
|
|
162,227 |
|
Total operating expenses |
|
|
59,940 |
|
|
60,100 |
|
|
193,542 |
|
|
203,457 |
|
Loss from operations |
|
|
(17,503) |
|
|
(15,326) |
|
|
(44,233) |
|
|
(33,122) |
|
Other expense, net |
|
|
(961) |
|
|
(722) |
|
|
(3,808) |
|
|
(1,873) |
|
Loss before income tax expense |
|
|
(18,464) |
|
|
(16,048) |
|
|
(48,041) |
|
|
(34,995) |
|
Income tax expense |
|
|
98 |
|
|
48 |
|
|
114 |
|
|
199 |
|
Net loss |
|
$ |
(18,562) |
|
$ |
(16,096) |
|
$ |
(48,155) |
|
$ |
(35,194) |
|
Basic and diluted net loss per share |
|
$ |
(0.42) |
|
$ |
(0.42) |
|
$ |
(1.14) |
|
$ |
(0.94) |
|
Weighted average shares used in computing net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
44,124 |
|
|
38,190 |
|
|
42,125 |
|
|
37,589 |
|
|
||||||||||||
|
|
|
|
|
|
|
|
ATRICURE, INC. AND SUBSIDIARIES |
|||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
|
(In Thousands) |
|||||
|
(Unaudited) |
|||||
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
||
|
|
2020 |
|
2019 |
||
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash, cash equivalents, and short-term investments |
$ |
244,218 |
|
$ |
81,801 |
|
Accounts receivable, net |
|
23,146 |
|
|
28,046 |
|
Inventories |
|
35,026 |
|
|
29,414 |
|
Prepaid and other current assets |
|
4,347 |
|
|
3,899 |
|
Total current assets |
|
306,737 |
|
|
143,160 |
|
Property and equipment, net |
|
28,290 |
|
|
32,646 |
|
Operating lease right-of-use assets |
|
1,914 |
|
|
4,032 |
|
Long-term investments |
|
14,178 |
|
|
12,675 |
|
Goodwill and intangible assets, net |
|
362,980 |
|
|
364,662 |
|
Other noncurrent assets |
|
440 |
|
|
705 |
|
Total assets |
$ |
714,539 |
|
$ |
557,880 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
40,720 |
|
$ |
47,698 |
|
Other current liabilities and current maturities of debt and leases |
|
8,417 |
|
|
2,218 |
|
Total current liabilities |
|
49,137 |
|
|
49,916 |
|
Long-term debt |
|
53,435 |
|
|
59,634 |
|
Finance lease liabilities |
|
10,969 |
|
|
11,774 |
|
Operating lease liabilities |
|
1,180 |
|
|
2,796 |
|
Contingent consideration and other noncurrent liabilities |
|
187,424 |
|
|
186,417 |
|
Total liabilities |
|
302,145 |
|
|
310,537 |
|
Stockholders' equity: |
|
|
|
|
|
|
Common stock |
|
45 |
|
|
40 |
|
Additional paid-in capital |
|
742,389 |
|
|
529,658 |
|
Accumulated other comprehensive income (loss) |
|
312 |
|
|
(158) |
|
Accumulated deficit |
|
(330,352) |
|
|
(282,197) |
|
Total stockholders' equity |
|
412,394 |
|
|
247,343 |
|
Total liabilities and stockholders' equity |
$ |
714,539 |
|
$ |
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 |
|
Twelve Months Ended |
||||||||
|
|
December 31, |
|
December 31, |
||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||
|
Net loss, as reported |
$ |
(18,562) |
|
$ |
(16,096) |
|
$ |
(48,155) |
|
$ |
(35,194) |
|
Income tax expense |
|
98 |
|
|
48 |
|
|
114 |
|
|
199 |
|
Other expense, net |
|
961 |
|
|
722 |
|
|
3,808 |
|
|
1,873 |
|
Depreciation and amortization expense |
|
2,167 |
|
|
2,383 |
|
|
9,548 |
|
|
9,366 |
|
Share-based compensation expense |
|
6,516 |
|
|
5,161 |
|
|
22,642 |
|
|
17,977 |
|
Contingent consideration adjustment |
|
4,497 |
|
|
2,018 |
|
|
(357) |
|
|
(4,916) |
|
Acquisition costs |
|
— |
|
|
333 |
|
|
138 |
|
|
3,978 |
|
Legal settlement |
|
6,000 |
|
|
— |
|
|
6,000 |
|
|
— |
|
Non-GAAP adjusted income (loss) (adjusted EBITDA) |
$ |
1,677 |
|
$ |
(5,431) |
|
$ |
(6,262) |
|
$ |
(6,717) |
|
|
|||||||||||
|
|
|||||||||||
|
|
|||||||||||
|
Reconciliation of Non-GAAP Adjusted Loss Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
December 31, |
|
December 31, |
||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||
|
Net loss, as reported |
$ |
(18,562) |
|
$ |
(16,096) |
|
$ |
(48,155) |
|
$ |
(35,194) |
|
Contingent consideration adjustment |
|
4,497 |
|
|
2,018 |
|
|
(357) |
|
|
(4,916) |
|
Legal settlement |
|
6,000 |
|
|
— |
|
|
6,000 |
|
|
— |
|
Net loss excluding contingent consideration adjustment and legal settlement |
$ |
(8,065) |
|
$ |
(14,078) |
|
$ |
(42,512) |
|
$ |
(40,110) |
|
Basic and diluted adjusted net loss per share |
$ |
(0.18) |
|
$ |
(0.37) |
|
$ |
(1.01) |
|
$ |
(1.07) |
|
Weighted average shares used in computing adjusted net loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
44,124 |
|
|
38,190 |
|
|
42,125 |
|
|
37,589 |
|
|
|||||||||||