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8-K - FORM 8-K - NUVASIVE INC | a57286e8vk.htm |
Exhibit 99.1
PRESS RELEASE
Contact:
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Investors: | |
Michael J. Lambert
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Patrick F. Williams | |
EVP & Chief Financial Officer
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Vice President, Finance & Investor Relations | |
NuVasive, Inc.
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NuVasive, Inc. | |
858-909-1998
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858-638-5511 | |
investorrelations@nuvasive.com
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investorrelations@nuvasive.com | |
Media: | ||
Jason Rando | ||
The Ruth Group | ||
646-536-7025 | ||
jrando@theruthgroup.com |
NUVASIVE PROVIDES UPDATED GUIDANCE
IN CONJUNCTION WITH INVESTOR MORNING
IN CONJUNCTION WITH INVESTOR MORNING
SAN DIEGO, September 14, 2010 NuVasive, Inc. (Nasdaq: NUVA), a medical device company
focused on developing products for minimally disruptive surgical treatments for the spine, updated
guidance for 2010 today in conjunction with a meeting that it will host for analysts and investors
this morning beginning at 10 a.m. ET.
Updated Full Year 2010 Financial Guidance:
| Revenue of $485 million to $495 million; compared to previous guidance of $485 million to $500 million | ||
| Third quarter revenue of $120 million to $123 million | ||
| GAAP EPS, net of tax and If-converted method, of $1.77 to $1.87, compared to previous guidance of $1.77 to $1.91 | ||
| Non-GAAP EPS, net of tax and If-converted method, of $1.50 to $1.60, compared to previous guidance of $1.50 to $1.64 | ||
| Non-GAAP Operating Margin of ~17% remains unchanged |
NuVasive expects to continue growing at multiples of the market in both 2010 and 2011; however
recent industry results and commentary suggest that future spine market volume growth has become
less predictable. As a result, NuVasive will also provide an updated outlook for full year 2011 at
todays meeting. The Company now anticipates revenue growth in 2011 of 15% to 20% over 2010,
compared to prior expectations of 25% to 30%. Slower market volume
growth, coupled with preserving strategic
investments intended to
accelerate our global market share taking strategy will also impact operating margin. NuVasive now
anticipates that its Non-GAAP operating margin will expand to approximately 20% for the full year
2011 from approximately 17% in 2010, which is below prior expectations for an operating margin of
approximately 22% in 2011. The Company will give more detailed revenue and earnings guidance for
2011 in conjunction with fourth quarter 2010 results. The Company
expects to announce third quarter 2010 results on October 28,
2010.
Alex Lukianov, Chairman and Chief Executive Officer, said, While we continue to execute well on
our strategies for growth, industry reports suggest that procedure volumes in the spine market
slowed considerably in the current quarter and give us pause regarding the outlook for market
growth going forward. We expect to continue to gain market share at a pace unmatched in the
industry and intend to take advantage of this downturn by preserving strategic
investments into NuVasives product portfolio and global footprint. We continue to drive to be the
most creative spine technology company in the world and to achieve exceptional results through
speed of innovation, Absolute Responsiveness®, and superior clinical outcomes as we
drive towards $1 billion in revenue with increasing profitability.
NuVasives market share taking strategy will be the focus of a strategic update presented at the
meeting with analysts and investors this morning. A live webcast of the meeting will be available
online from the investor relations page of the Companys corporate website at www.nuvasive.com.
After the live webcast, the presentation will remain available on the website for 30 days.
Reconciliation of Non-GAAP Information
Management uses certain Non-GAAP financial measures such as Non-GAAP earnings per share, which exclude intellectual property litigation expenses, acquisition related items, non-cash stock-based compensation, the amortization of intangible assets, and the reversal of a remaining valuation allowance. Management does not consider these costs in evaluating the continuing operations of the Company. Therefore, management calculates the Non-GAAP financial measures provided in this earnings release excluding these costs and uses these Non-GAAP financial measures to enable it to analyze further, and more consistently, the period-to-period financial performance of its core business operations. Management believes that providing investors with these Non-GAAP measures gives them additional important information to enable them to assess, in the same way management assesses, the Companys current and future continuing operations. These Non-GAAP measures are not in accordance with, or an alternative for, GAAP, and may be different from Non-GAAP measures used by other companies. Set forth below are reconciliations of the Non-GAAP financial measures to the comparable GAAP financial measure.
Management uses certain Non-GAAP financial measures such as Non-GAAP earnings per share, which exclude intellectual property litigation expenses, acquisition related items, non-cash stock-based compensation, the amortization of intangible assets, and the reversal of a remaining valuation allowance. Management does not consider these costs in evaluating the continuing operations of the Company. Therefore, management calculates the Non-GAAP financial measures provided in this earnings release excluding these costs and uses these Non-GAAP financial measures to enable it to analyze further, and more consistently, the period-to-period financial performance of its core business operations. Management believes that providing investors with these Non-GAAP measures gives them additional important information to enable them to assess, in the same way management assesses, the Companys current and future continuing operations. These Non-GAAP measures are not in accordance with, or an alternative for, GAAP, and may be different from Non-GAAP measures used by other companies. Set forth below are reconciliations of the Non-GAAP financial measures to the comparable GAAP financial measure.
Reconciliation of Full Year 2010 Guidance
(Net of Tax, If Converted method)
(Net of Tax, If Converted method)
Range for Year Ending | ||||||||
December 31, 2010 | ||||||||
(in thousands, except per share amounts) | Low | High | ||||||
GAAP earnings per share |
$ | 1.77 | $ | 1.87 | ||||
Intellectual property litigation expenses |
0.09 | 0.09 | ||||||
Non-cash stock-based compensation |
0.55 | 0.55 | ||||||
Amortization of intangible assets |
0.11 | 0.11 | ||||||
Reversal of remaining valuation allowance |
(1.02 | ) | (1.02 | ) | ||||
Non-GAAP earnings per share |
$ | 1.50 | $ | 1.60 | ||||
Weighted shares outstanding Diluted |
46,000 | 46,000 | ||||||
About NuVasive
NuVasive is a medical device company focused on the design, development, and marketing of products for the surgical treatment of spine disorders. The Companys product portfolio is focused primarily on the $5.1 billion U.S. spine implant market. Additionally, the Company has expanded into the $1.7 billion global biologics market, the $1.7 billion international market, and is developing products for the emerging motion preservation market.
NuVasive is a medical device company focused on the design, development, and marketing of products for the surgical treatment of spine disorders. The Companys product portfolio is focused primarily on the $5.1 billion U.S. spine implant market. Additionally, the Company has expanded into the $1.7 billion global biologics market, the $1.7 billion international market, and is developing products for the emerging motion preservation market.
NuVasives principal product offering is based on its Maximum Access Surgery, or MAS®
platform. The MAS platform combines four categories of products that collectively minimize soft
tissue disruption during spine surgery with maximum visualization and safe, easy reproducibility
for the surgeon: NeuroVision®, a proprietary software-driven nerve avoidance system;
MaXcess®, a unique split-blade retractor system; a wide variety of specialized implants;
and several biologic fusion enhancers. MAS significantly reduces surgery time and returns patients
to activities of daily living much faster than conventional approaches. Having redefined spine
surgery with the MAS platforms lateral approach, known as eXtreme Lateral Interbody Fusion, or
XLIF®, NuVasive has built an entire spine franchise. With over 55 products today
spanning lumbar, thoracic and cervical applications, the Company will continue to expand and evolve
its offering predicated on its R&D focus and dedication to outstanding service levels supported by
a culture of Absolute Responsiveness®.
NuVasive cautions you that statements included in this press release that are not a description of
historical facts are forward-looking statements that involve risks, uncertainties, assumptions and
other factors which, if they do not materialize or prove correct, could cause NuVasives results to
differ materially from historical results or those expressed or implied by such forward-looking
statements. The potential risks and uncertainties that could cause actual growth and results to
differ materially include, but are not limited to: the risk that NuVasives revenue or earnings
projections may turn out to be inaccurate because of the preliminary nature of the forecasts and
the risk of further adjustment, or unanticipated difficulty in selling products or generating
expected profitability; the uncertain process of seeking regulatory approval or clearance for
NuVasives products or devices, including risks that such process could be significantly delayed;
the possibility that the FDA may require significant changes to NuVasives products or clinical
studies; the risk that products may not perform as intended and may therefore not achieve
commercial success; the risk that competitors may develop superior products or may have a greater
market position enabling more successful commercialization; the risk that additional clinical data
may call into question the benefits of NuVasives products to patients, hospitals and surgeons; and
other risks and uncertainties more fully described in NuVasives press releases and periodic
filings with the Securities and Exchange Commission. NuVasives public filings with the Securities
and Exchange Commission are available at www.sec.gov. NuVasive assumes no obligation to update any
forward-looking statement to reflect events or circumstances arising after the date on which it was
made.
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