Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - NUVASIVE INC | d153265d8k.htm |
| EX-99.2 - EX-99.2 - NUVASIVE INC | d153265dex992.htm |
Exhibit 99.1
NEWS RELEASE
Investor/Media Contact:
Stacy Roughan
NuVasive, Inc.
1-858-909-1812
sroughan@nuvasive.com
NUVASIVE REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
Second Quarter 2015 Highlights:
| • | Revenue increased 6.4% to $202.9 million, or 8.5% on a constant currency basis; |
| • | Non-GAAP operating profit margin of 15.3%; GAAP operating profit margin of 12.7%; |
| • | Adjusted EBITDA margin of 24.9%; |
| • | Non-GAAP net income of $15.7 million; GAAP net income of $10.3 million; |
| • | Non-GAAP earnings per share of $0.31; GAAP earnings per share of $0.20; and |
| • | Company increases guidance for full year 2015 for non-GAAP operating margin, adjusted EBITDA and earnings per share. |
SAN DIEGO, CA – July 28, 2015 - NuVasive, Inc. (Nasdaq: NUVA), a leading medical device company focused on transforming spine surgery with minimally disruptive, procedurally-integrated solutions, announced today financial results for the quarter ended June 30, 2015.
“We are pleased to report another strong quarter that resulted in revenue growth of more than 8% and an impressive 460 basis point increase in profitability, as we continued to take market share and gain momentum in our efforts to improve operational efficiencies,” said Gregory T. Lucier, Chairman and Chief Executive Officer of NuVasive. “We are laser-focused on increasing our market share by rapidly developing disruptive technologies and services for spine surgery, expanding our global footprint in existing and new markets, and positioning NuVasive as a commercial powerhouse with integrated sales, service and specialized customer marketing programs. With these efforts underway, we look to move even faster to drive NuVasive’s next phase of growth and success, while generating enhanced long-term value for our shareholders.”
A full reconciliation of non-GAAP to GAAP measures can be found in the tables of this news release.
Second Quarter 2015 Results
NuVasive reported second quarter 2015 total revenue of $202.9 million, a 6.4% increase compared to $190.7 million for the second quarter 2014. On a constant currency basis, second quarter 2015 total revenue increased 8.5% compared to the same period last year.
GAAP gross profit for the second quarter 2015 was $154.5 million and gross margin was 76.1% compared to a gross profit of $145.8 million and a gross margin of 76.5% for the second quarter 2014.
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Total GAAP operating expenses for the second quarter 2015 were $128.6 million compared to $141.2 million in the second quarter 2014.
The Company reported a GAAP net income of $10.3 million, or $0.20 per share, for the second quarter 2015 compared to a GAAP net loss of $(4.1) million, or $(0.09) per share, for the second quarter 2014.
On a non-GAAP basis, the Company reported net income of $15.7 million, or $0.31 per share, for the second quarter 2015 compared to net income of $7.6 million, or $0.15 per share, for the second quarter 2014.
Cash, cash equivalents and short and long-term marketable securities were approximately $306.6 million at June 30, 2015.
Annual Guidance for 2015
The Company provided the following updated projections to its full year 2015 guidance:
| • | Revenue of approximately $810.0 million, which includes an approximate $13.0 million of currency headwinds, or approximately 6.2% growth compared to revenue of $762.4 million for 2014; on a constant currency basis revenue is expected to grow approximately 7.9%; versus a prior expectation of 7.8% for 2015; |
| • | GAAP earnings per share of approximately $1.18 compared to GAAP loss per share of ($0.36) for 2014; versus a prior expectation of $1.12 for 2015; |
| • | Non-GAAP earnings per share of approximately $1.17, an increase of approximately 74.2% compared to non-GAAP earnings of $0.67 for 2014; versus a prior expectation of $1.10 for 2015; |
| • | Non-GAAP operating margin of approximately 15.0%, an increase of approximately 360 basis points compared to 11.4% for 2014; versus a prior expectation of 14.4% for 2015; |
| • | Adjusted EBITDA margin of approximately 25.2%, an increase of approximately 330 basis points compared to 21.9% for 2014; versus a prior expectation of 24.6% for 2015; |
| • | GAAP effective tax expense rate of approximately 45.0%; versus a prior expectation of 46.0% for 2015; and |
| • | Non-GAAP effective tax expense rate of approximately 45.0%; versus a prior expectation of 46.0% for 2015. |
Supplementary Financial Information
For additional financial detail, please visit the Investor Relations section of the Company’s website at www.nuvasive.com to access Supplementary Financial Information.
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Reconciliation of Full Year EPS Guidance
| 2015 Guidance | ||||||||||||
| 2014 Actuals |
Prior 1 | Current 2 | ||||||||||
| GAAP earnings (loss) per share |
$ | (0.36 | ) | $ | 1.12 | $ | 1.18 | |||||
| Impact of change from basic to diluted share count |
0.02 | — | — | |||||||||
| Impact of treasury method on convertible notes 3 |
— | 0.03 | 0.03 | |||||||||
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| Adjusted GAAP earnings (loss) per share, adjusted to diluted share count |
$ | (0.34 | ) | $ | 1.15 | $ | 1.21 | |||||
| Amortization of intangible assets |
0.16 | 0.14 | 0.14 | |||||||||
| Leasehold related charges |
0.13 | 0.03 | 0.03 | |||||||||
| Litigation liability |
0.36 | (0.50 | ) | (0.49 | ) | |||||||
| Intangible asset impairment |
0.13 | — | — | |||||||||
| CEO transition related costs |
— | 0.04 | 0.04 | |||||||||
| One-time and acquisition related items 4 |
0.05 | 0.05 | 0.05 | |||||||||
| Non-cash interest expense on convertible notes |
0.18 | 0.19 | 0.19 | |||||||||
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| Non-GAAP earnings per share |
$ | 0.67 | $ | 1.10 | $ | 1.17 | ||||||
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| GAAP Weighted shares outstanding - basic |
46,715 | 48,593 | 48,593 | |||||||||
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| GAAP Weighted shares outstanding - diluted |
46,715 | 52,607 | 52,607 | |||||||||
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| Non-GAAP Weighted shares outstanding - diluted 3 |
49,676 | 51,431 | 51,431 | |||||||||
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| 1 | Effective tax expense rate of ~46% applied to GAAP earnings and ~40% applied to Non-GAAP adjustments |
| 2 | Effective tax expense rate of ~45% applied to GAAP earnings and ~40% applied to Non-GAAP adjustments |
| 3 | Excludes the impact of share dilution of the convertible bond for which the Company has a hedge in place but is considered anti-dilutive under US GAAP in weighted average shares outstanding |
| 4 | Acquisition related items include expenses associated with M&A related activity and as incurred |
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Reconciliation of Non-GAAP Operating Margin %
| 2015 Guidance | |||||||||||||||
| (in thousands, except %) | 2014 Actuals |
Prior | Current | ||||||||||||
| Non-GAAP Gross Margin % [A] |
76.1 | % | 77.3 | % | 76.7 | % | |||||||||
| GAAP Gross Margin [D] |
76.1 | % | 77.3 | % | 76.7 | % | |||||||||
| Non-GAAP Sales, Marketing & Administrative Expense [B] |
59.9 | % | 57.9 | % | 56.9 | % | |||||||||
| Leasehold related charges |
1.4 | % | 0.4 | % | 0.4 | % | |||||||||
| CEO transition related costs |
— | 0.4 | % | 0.4 | % | ||||||||||
| One-time and acquisition related items 1 |
0.3 | % | 0.5 | % | 0.5 | % | |||||||||
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| GAAP Sales, Marketing & Administrative Expense [E] |
61.6 | % | 59.2 | % | 58.2 | % | |||||||||
| Non-GAAP Research & Development Expense [C] |
4.8 | % | 5.0 | % | 4.8 | % | |||||||||
| One-time and acquisition related items 1 |
0.2 | % | — | — | |||||||||||
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| GAAP Research & Development Expense [F] |
5.0 | % | 5.0 | % | 4.8 | % | |||||||||
| Litigation liability [G] |
3.9 | % | -5.3 | % | -5.2 | % | |||||||||
| Intangible asset impairment [H] |
1.4 | % | — | — | |||||||||||
| Amortization of intangible assets [I] |
1.8 | % | 1.5 | % | 1.5 | % | |||||||||
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| Non-GAAP Operating Margin % [A-B-C] |
11.4 | % | 14.4 | % | 15.0 | % | |||||||||
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| GAAP Operating Margin % [D-E-F-G-H-I] |
2.4 | % | 16.9 | % | 17.4 | % | |||||||||
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| 1 | Acquisition related items include expenses associated with M&A related activity and as incurred |
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Reconciliation of EBITDA %
| 2015 Guidance | |||||||||||||||
| (in thousands, except %) | 2014 Actuals |
Prior | Current | ||||||||||||
| Net Income / (Loss) |
-2.2 | % | 7.3 | % | 7.7 | % | |||||||||
| Interest (income) / expense, net |
3.5 | % | 3.5 | % | 3.6 | % | |||||||||
| Provision for income taxes |
0.8 | % | 6.0 | % | 6.1 | % | |||||||||
| Depreciation and amortization 1 |
8.1 | % | 7.5 | % | 7.8 | % | |||||||||
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| EBITDA |
10.2 | % | 24.3 | % | 25.2 | % | |||||||||
| Non-cash stock based compensation |
4.4 | % | 4.2 | % | 3.9 | % | |||||||||
| Leasehold related charges |
1.4 | % | 0.4 | % | 0.4 | % | |||||||||
| Litigation liability |
3.9 | % | -5.3 | % | -5.2 | % | |||||||||
| Intangible asset impairment |
1.4 | % | — | — | |||||||||||
| CEO transition related costs 2 |
— | 0.4 | % | 0.4 | % | ||||||||||
| One-time and acquisition related items 3 |
0.5 | % | 0.5 | % | 0.5 | % | |||||||||
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| Adjusted EBITDA |
21.9 | % | 24.6 | % | 25.2 | % | |||||||||
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| 1 | Included in leasehold related charges are accelerated depreciation as a result of early leasehold terminations, which thereby were excluded from the depreciation line |
| 2 | Included in CEO transition related costs are $1.2m of stock based compensation charges, which thereby were excluded from the non-cash stock based compensation line |
| 3 | Acquisition related items include expenses associated with M&A related activity and as incurred |
Reconciliation of Non-GAAP Information
Management uses certain non-GAAP financial measures such as non-GAAP earnings per share, non-GAAP net income, non-GAAP operating expenses and non-GAAP operating margin, which exclude amortization of intangible assets, leasehold related charges, one-time restructuring and acquisition related items, CEO transition related costs, certain litigation charges and non-cash interest expense on convertible notes. Management also uses certain non-GAAP measures which are intended to exclude the impact of foreign exchange currency fluctuations. The measure constant currency is the use of an exchange rate that eliminates fluctuations when calculating financial performance numbers.
The Company also uses measures such as free cash flow, which represents cash flow from operations less cash used in the acquisition and disposition of capital. Additionally, the Company uses an adjusted EBITDA measure which represents earnings before interest, taxes, depreciation and amortization and excludes the impact of stock-based compensation, leasehold related charges, CEO transition related costs, certain litigation liabilities, acquisition related items and other significant one-time items. 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 further and more consistently analyze the period-to-period financial performance of its core business operations. Management believes that providing investors with these non-GAAP measures gives them additional information to enable them to assess, in the same way management assesses, the Company’s current and future
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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 Second Quarter 2015 Results
GAAP Earnings per Share to Non-GAAP Earnings per Share
| (in thousands, except per share data) | Pre-Tax Adjustments |
Net of Tax | Earnings Per Share | |||||||||
| GAAP net income |
$ | 10,268 | $ | 0.21 | ||||||||
| GAAP impact of change from basic to diluted share count |
(0.01 | ) | ||||||||||
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| GAAP net income, adjusted to diluted share count |
0.20 | |||||||||||
| Impact of treasury method on convertible notes 1 |
0.00 | |||||||||||
| Amortization of intangible assets |
2,974 | 1,784 | 0.04 | |||||||||
| Leasehold related charges |
159 | 95 | 0.00 | |||||||||
| Litigation liability |
568 | 341 | 0.01 | |||||||||
| CEO transition related costs |
110 | 66 | 0.00 | |||||||||
| One-time and acquisition related items 2 |
1,366 | 820 | 0.02 | |||||||||
| Non-cash interest expense on convertible notes |
3,912 | 2,347 | 0.05 | |||||||||
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| Non-GAAP earnings |
$ | 15,721 | 0.31 | |||||||||
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| GAAP weighted shares outstanding - basic |
48,545 | |||||||||||
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| GAAP weighted shares outstanding - diluted |
51,681 | |||||||||||
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| Non-GAAP weighted shares outstanding - diluted 1 |
50,740 | |||||||||||
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| 1 | Excludes the impact of share dilution of the convertible bond for which the Company has a hedge in place but is considered anti-dilutive under US GAAP in weighted average shares outstanding (941k shares) |
| 2 | Acquisition related items include expenses associated with M&A related activity and as incurred |
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Reconciliation of Year To Date 2015 Results
GAAP Earnings per Share to Non-GAAP Earnings per Share
| (in thousands, except per share data) | Pre-Tax Adjustments |
Net of Tax | Earnings Per Share | |||||||||
| GAAP net income |
41,828 | $ | 0.87 | |||||||||
| GAAP impact of change from basic to diluted share count |
(0.06 | ) | ||||||||||
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| GAAP net income, adjusted to diluted share count |
0.81 | |||||||||||
| Impact of treasury method on convertible notes 1 |
0.01 | |||||||||||
| Amortization of intangible assets |
5,970 | 3,582 | 0.07 | |||||||||
| Leasehold related charges |
3,040 | 1,824 | 0.04 | |||||||||
| Litigation liability |
(42,007 | ) | (25,204 | ) | (0.50 | ) | ||||||
| CEO transition related costs |
3,470 | 2,082 | 0.04 | |||||||||
| One-time and acquisition related items 2 |
3,385 | 2,031 | 0.04 | |||||||||
| Non-cash interest expense on convertible notes |
7,754 | 4,652 | 0.09 | |||||||||
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| Non-GAAP earnings |
$ | 30,795 | $ | 0.61 | ||||||||
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| GAAP weighted shares outstanding - basic |
48,269 | |||||||||||
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| GAAP weighted shares outstanding - diluted |
51,700 | |||||||||||
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| Non-GAAP weighted shares outstanding - diluted 1 |
50,784 | |||||||||||
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| 1 | Excludes the impact of share dilution of the convertible bond for which the Company has a hedge in place but is considered anti-dilutive under US GAAP in weighted average shares outstanding (916k shares) |
| 2 | Acquisition related items include expenses associated with M&A related activity and as incurred |
Reconciliation of Second Quarter and Six Months 2015 Results
GAAP net income to Adjusted EBITDA
| (in thousands, except per share data) | Three months ended June 30, 2015 |
Six months ended June 30, 2015 |
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| GAAP net income |
$ | 10,268 | $ | 41,828 | ||||
| Interest (income) / expense, net |
6,897 | 13,604 | ||||||
| Provision for income taxes |
8,644 | 26,529 | ||||||
| Depreciation and amortization |
16,553 | 32,630 | ||||||
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| EBITDA |
$ | 42,362 | $ | 114,591 | ||||
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| Non-cash stock based compensation 1 |
5,883 | 12,261 | ||||||
| Leasehold related charges |
159 | 3,040 | ||||||
| Litigation liability |
568 | (42,007 | ) | |||||
| CEO related transition costs |
110 | 3,470 | ||||||
| One-time and acquisition related items |
1,366 | 3,385 | ||||||
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| Adjusted EBITDA |
$ | 50,448 | $ | 94,740 | ||||
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| As a percentage of revenue |
24.9 | % | 24.0 | % | ||||
| 1 | Included in CEO related transition costs are $1.2m of stock based compensation charges, which thereby were excluded from the non-cash stock based compensation line in the six months ended |
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Investor Conference Call
The Company will hold a conference call today at 4:30 p.m. ET / 1:30 p.m. PT to discuss the results of its second quarter 2015 financial performance. The dial-in numbers are 1-877-407-9039 for domestic callers and 1-201-689-8470 for international callers. A live webcast of the conference call will be available online from the Investor Relations page of the Company’s website at www.nuvasive.com.
After the live webcast, the call will remain available on NuVasive’s website through August 28, 2015. In addition, a telephone replay of the call will be available until August 4, 2015. The replay dial-in numbers are 1-877-870-5176 for domestic callers and 1-858-384-5517 for international callers. Please use pin number: 13612991.
About NuVasive
NuVasive is an innovative global medical device company that is changing spine surgery with minimally disruptive surgical products and procedurally-integrated solutions for the spine. NuVasive has emerged from a small startup to become the #3 player in the $9 billion global spine market and remains focused on market share-taking strategies as the Company continues on its path to become the industry’s leading spine company. NuVasive offers a comprehensive spine portfolio of more than 90 unique products developed to improve spine surgery and patient outcomes. The Company’s principal procedural solution is its Maximum Access Surgery, or MAS®, platform for lateral spine fusion. MAS was designed to provide safe, reproducible, and clinically proven outcomes, and is a highly differentiated solution with fully integrated neuromonitoring, customizable exposure, and a broad offering of application-specific implants and fixation devices designed to address a variety of pathologies.
NuVasive cautions you that statements included in this news release or made on the investor conference call referenced herein 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 NuVasive’s results to differ materially from historical results or those expressed or implied by such forward-looking statements. In addition, this news release contains selected financial results from the second quarter 2015, as well as financial projections for 2015. The numbers for second quarter 2015 are prior to the completion of review and audit procedures by the Company’s external auditors and are subject to adjustment. In addition, the Company’s projections for 2015 represent its initial estimates, and are subject to the risk of being inaccurate because of the preliminary nature of the forecasts, the risk of further adjustment, or unanticipated difficulty in selling products or generating expected profitability. The potential risks and uncertainties that could cause actual growth and results to differ materially include, but are not limited to: the risk that NuVasive’s revenue or earnings projections may turn out to be inaccurate because of the preliminary nature of the forecasts; the risk of further adjustment to financial results or future financial expectations; unanticipated difficulty in selling products, generating revenue or producing expected profitability; and those other risks and uncertainties more fully described in the Company’s news releases and periodic filings with the Securities and Exchange Commission. NuVasive’s 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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NuVasive, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (unaudited) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Revenue |
$ | 202,910 | $ | 190,677 | $ | 395,293 | $ | 368,172 | ||||||||
| Cost of goods sold (excluding below amortization of intangible assets) |
48,415 | 44,836 | 94,079 | 88,130 | ||||||||||||
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| Gross profit |
154,495 | 145,841 | 301,214 | 280,042 | ||||||||||||
| Operating expenses: |
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| Sales, marketing and administrative |
115,317 | 116,970 | 231,413 | 235,074 | ||||||||||||
| Research and development |
8,782 | 10,067 | 18,046 | 19,522 | ||||||||||||
| Amortization of intangible assets |
2,974 | 3,473 | 5,970 | 7,470 | ||||||||||||
| Impairment of intangible assets |
— | 10,708 | — | 10,708 | ||||||||||||
| Litigation liability (gain) loss |
568 | — | (42,007 | ) | 30,000 | |||||||||||
| Business transition costs |
991 | — | 6,364 | — | ||||||||||||
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| Total operating expenses |
128,632 | 141,218 | 219,786 | 302,774 | ||||||||||||
| Interest and other expense, net: |
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| Interest income |
344 | 233 | 763 | 450 | ||||||||||||
| Interest expense |
(7,242 | ) | (6,979 | ) | (14,368 | ) | (13,844 | ) | ||||||||
| Other income (expense), net |
(281 | ) | (205 | ) | 143 | 171 | ||||||||||
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| Total interest and other expense, net |
(7,179 | ) | (6,951 | ) | (13,462 | ) | (13,223 | ) | ||||||||
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| Income (loss) before income taxes |
18,684 | (2,328 | ) | 67,966 | (35,955 | ) | ||||||||||
| Income tax (expense) benefit |
(8,644 | ) | (1,942 | ) | (26,529 | ) | 13,153 | |||||||||
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| Consolidated net income (loss) |
$ | 10,040 | $ | (4,270 | ) | $ | 41,437 | $ | (22,802 | ) | ||||||
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| Add back net loss attributable to non-controlling interests |
$ | (228 | ) | $ | (182 | ) | $ | (391 | ) | $ | (438 | ) | ||||
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| Net income (loss) attributable to NuVasive, Inc. |
$ | 10,268 | $ | (4,088 | ) | $ | 41,828 | $ | (22,364 | ) | ||||||
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| Net income (loss) per share attributable to NuVasive, Inc.: |
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| Basic |
$ | 0.21 | $ | (0.09 | ) | $ | 0.87 | $ | (0.48 | ) | ||||||
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| Diluted |
$ | 0.20 | $ | (0.09 | ) | $ | 0.81 | $ | (0.48 | ) | ||||||
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| Weighted average shares outstanding: |
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| Basic |
48,545 | 46,832 | 48,269 | 46,320 | ||||||||||||
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| Diluted |
51,681 | 46,832 | 51,700 | 46,320 | ||||||||||||
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NuVasive, Inc.
Consolidated Balance Sheets
(in thousands, except par values and share amounts)
| June 30, | December 31, | |||||||
| 2015 | 2014 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: |
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| Cash and cash equivalents |
$ | 78,637 | $ | 142,387 | ||||
| Short-term marketable securities |
200,052 | 220,329 | ||||||
| Restricted cash and investments |
32,755 | — | ||||||
| Accounts receivable, net of allowances of $6,251 and $5,844, respectively |
116,835 | 118,959 | ||||||
| Inventory, net |
163,651 | 154,638 | ||||||
| Deferred and prepaid taxes |
83,978 | 59,233 | ||||||
| Prepaid expenses and other current assets |
8,423 | 10,325 | ||||||
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| Total current assets |
684,331 | 705,871 | ||||||
| Property and equipment, net |
142,076 | 128,565 | ||||||
| Long-term marketable securities |
27,921 | 43,042 | ||||||
| Intangible assets, net |
89,978 | 96,555 | ||||||
| Goodwill |
154,305 | 154,443 | ||||||
| Deferred tax assets, non-current |
42,035 | 65,330 | ||||||
| Restricted cash and investments |
119,731 | 123,233 | ||||||
| Other assets |
25,388 | 26,420 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 1,285,765 | $ | 1,343,459 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: |
||||||||
| Accounts payable and accrued liabilities |
$ | 61,099 | $ | 133,324 | ||||
| Accrued payroll and related expenses |
29,490 | 38,032 | ||||||
| Litigation liabilities |
41,065 | 30,000 | ||||||
| Deferred and income tax liabilities |
785 | 13,543 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
132,439 | 214,899 | ||||||
| Senior Convertible Notes |
368,501 | 360,746 | ||||||
| Deferred and income tax liabilities, non-current |
9,289 | 12,526 | ||||||
| Non-current litigation liabilities |
87,495 | 93,700 | ||||||
| Other long-term liabilities |
12,679 | 13,230 | ||||||
| Commitments and contingencies |
||||||||
| Stockholders’ equity: |
||||||||
| Preferred stock, $0.001 par value; 5,000,000 shares authorized, none outstanding |
— | — | ||||||
| Common stock, $0.001 par value; 120,000,000 shares authorized at June 30, 2015 and December 31, 2014, 51,299,463 and 47,691,744 issued and outstanding at June 30, 2015 and December 31, 2014, respectively |
51 | 48 | ||||||
| Additional paid-in capital |
940,765 | 847,145 | ||||||
| Accumulated other comprehensive loss |
(10,970 | ) | (9,670 | ) | ||||
| Accumulated deficit |
(145,110 | ) | (186,938 | ) | ||||
| Treasury stock at cost; 2,468,592 shares and 233,369 shares at June 30, 2015 and December 31, 2014, respectively |
(117,293 | ) | (10,537 | ) | ||||
|
|
|
|
|
|||||
| Total NuVasive, Inc. stockholders’ equity |
667,443 | 640,048 | ||||||
| Non-controlling interests |
7,919 | 8,310 | ||||||
|
|
|
|
|
|||||
| Total equity |
$ | 675,362 | $ | 648,358 | ||||
|
|
|
|
|
|||||
| Total liabilities and equity |
$ | 1,285,765 | $ | 1,343,459 | ||||
|
|
|
|
|
|||||
10
NuVasive, Inc.
Consolidated Statements of Cash Flows
(in thousands)
| Six Months Ended June 30, | ||||||||
| (Unaudited) | 2015 | 2014 | ||||||
| Operating activities: |
||||||||
| Consolidated net income (loss) |
$ | 41,437 | $ | (22,802 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
32,630 | 31,043 | ||||||
| Amortization of non-cash interest |
8,749 | 8,081 | ||||||
| Stock-based compensation |
13,493 | 16,549 | ||||||
| Impairment of intangible assets |
— | 10,708 | ||||||
| Deferred income taxes |
19,996 | — | ||||||
| Reserves on current assets |
4,083 | 2,383 | ||||||
| Other non-cash adjustments |
10,669 | 4,114 | ||||||
| Changes in operating assets and liabilities, net of effects from acquisitions: |
||||||||
| Accounts receivable |
637 | (8,603 | ) | |||||
| Inventory |
(15,181 | ) | (20,930 | ) | ||||
| Prepaid expenses and other current assets |
1,182 | (2,839 | ) | |||||
| Accounts payable and accrued liabilities |
6,841 | 12,999 | ||||||
| Income taxes |
(38,666 | ) | (15,111 | ) | ||||
| Accrued royalties |
(47,112 | ) | 7,192 | |||||
| Litigation liability |
4,795 | 30,000 | ||||||
| Accrued payroll and related expenses |
(8,370 | ) | (4,473 | ) | ||||
|
|
|
|
|
|||||
| Net cash provided by operating activities |
35,183 | 48,311 | ||||||
| Investing activities: |
||||||||
| Cash paid for acquisitions and investments |
(1,357 | ) | (59 | ) | ||||
| Purchase of intangible assets |
(28,589 | ) | — | |||||
| Purchases of property and equipment |
(47,976 | ) | (32,560 | ) | ||||
| Purchases of marketable securities |
(129,549 | ) | (129,080 | ) | ||||
| Sales of marketable securities |
164,147 | 103,650 | ||||||
| Purchases of restricted investments |
(62,625 | ) | — | |||||
| Sales of restricted investments |
33,809 | — | ||||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(72,140 | ) | (58,049 | ) | ||||
| Financing activities: |
||||||||
| Incremental tax benefits related to stock-based compensation awards |
9,928 | — | ||||||
| Proceeds from the issuance of common stock |
8,360 | 14,193 | ||||||
| Payment of contingent consideration |
(514 | ) | (498 | ) | ||||
| Purchase of treasury stock |
(43,937 | ) | (44 | ) | ||||
| Other financing activities |
(87 | ) | (644 | ) | ||||
|
|
|
|
|
|||||
| Net cash (used in) provided by financing activities |
(26,250 | ) | 13,007 | |||||
| Effect of exchange rate changes on cash |
(543 | ) | 367 | |||||
|
|
|
|
|
|||||
| (Decrease) increase in cash and cash equivalents |
(63,750 | ) | 3,636 | |||||
| Cash and cash equivalents at beginning of period |
142,387 | 102,825 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents at end of period |
$ | 78,637 | $ | 106,461 | ||||
|
|
|
|
|
|||||
11