NuVasive Announces Fourth Quarter and Full Year 2019 Financial Results

Company provides 2020 guidance

SAN DIEGO, Feb. 20, 2020 /PRNewswire/ -- NuVasive, Inc. (NASDAQ: NUVA), the leader in spine technology innovation, focused on transforming spine surgery with minimally disruptive, procedurally integrated solutions, today announced financial results for the quarter and full year ended Dec. 31, 2019.

NuVasive Logo

Fourth Quarter 2019

  • Revenue increased 7.6% to $310.4 million, or 7.8% on a constant currency basis;
  • GAAP operating margin of 13.6%; Non-GAAP operating margin of 16.4%; and
  • GAAP diluted earnings per share of $0.55; Non-GAAP diluted earnings per share of $0.73.

Full Year 2019

  • Revenue increased 6.0% to $1.168 billion, or 6.6% on a constant currency basis;
  • GAAP operating margin of 10.5%; Non-GAAP operating margin of 15.8%; and
  • GAAP diluted earnings per share of $1.23; Non-GAAP diluted earnings per share of $2.47.

"NuVasive delivered strong financial results in 2019 with consistent, above-market growth of 6.0% over prior year," said J. Christopher Barry, chief executive officer of NuVasive. "In 2020, our primary growth drivers include continuing to lead in lateral spine surgery, further innovation in targeted spine segments and achieving scale in key global markets to drive value and deliver on our long-term commitments."

A full reconciliation of GAAP to non-GAAP financial measures can be found in the tables of this news release.

Fourth Quarter 2019 Results
NuVasive reported fourth quarter 2019 total revenue of $310.4 million, a 7.6% increase compared to $288.3 million for the fourth quarter 2018. On a constant currency basis, fourth quarter 2019 total revenue increased 7.8% compared to the same period last year.

For the fourth quarter 2019, both GAAP and non-GAAP gross profit was $227.1 million and GAAP and non-GAAP gross margin was 73.2%. These results compared to GAAP and non-GAAP gross profit of $202.2 million and GAAP and non-GAAP gross margin of 70.1%, for the fourth quarter 2018.

The Company reported GAAP net income of $29.9 million, or diluted earnings per share of $0.55, for the fourth quarter 2019 compared to GAAP net income of $12.2 million, or diluted earnings per share of $0.23, for the fourth quarter 2018. On a non-GAAP basis, the Company reported net income of $38.5 million, or diluted earnings per share of $0.73, for the fourth quarter 2019 compared to non-GAAP net income of $36.1 million, or diluted earnings per share of $0.69, for the fourth quarter 2018.

Full Year 2019 Results
NuVasive reported full year 2019 total revenue of $1.168 billion, a 6.0% increase compared to $1.102 billion for the full year 2018. On a constant currency basis, full year 2019 total revenue increased 6.6% compared to the full year 2018.

For the full year 2019, both GAAP and non-GAAP gross profit was $855.7 million and GAAP and non-GAAP gross margin was 73.3%. These results compared to GAAP and non-GAAP gross profit of $790.6 million and $791.6 million, respectively, and GAAP and non-GAAP gross margin of 71.8% and 71.9%, respectively, for the full year 2018. For the full year 2019, GAAP and non-GAAP operating expenses were $732.7 million and $670.7 million, respectively. These results compared to GAAP and non-GAAP operating expenses of $736.4 million and $624.8 million, respectively, for the full year 2018.

The Company reported GAAP net income of $65.2 million, or diluted earnings per share of $1.23, for the full year 2019 compared to GAAP net income of $12.5 million, or diluted earnings per share of $0.24, for the full year 2018. On a non-GAAP basis, the Company reported net income of $129.8 million, or diluted earnings per share of $2.47, for the full year 2019 compared to non-GAAP net income of $116.6 million, or diluted earnings per share of $2.23, for the full year 2018.

Annual Financial Guidance for 2020
The company estimates full year 2020 revenue growth to be in the range of 4.0% to 6.0%, GAAP diluted earnings per share in the range of $1.15 to $1.25 and non-GAAP diluted earnings per share in the range of $2.55 to $2.65.

 

2020 Guidance Range 1

 

GAAP

Non-GAAP

Total Revenue Growth

4.0% - 6.0%

 

4.0% - 6.0%

U.S. Spinal Hardware

5.0% - 7.0%

 

5.0% - 7.0%

U.S. Surgical Support

(3.0%) - 1.0%

 

(3.0%) - 1.0%

International

10.0% - 12.0%

 

10.0% - 12.0%

Operating margin

10.1% - 10.5%

 

15.8% - 16.2%

Diluted earnings per share

$1.15 - 1.25

 

$2.55 - 2.65

   

1

Guidance reflects the range provided February 20, 2020.

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.

Reconciliation of Full Year EPS

 
 

2019 Actuals 1

 

2020 Guidance Range 1, 2

GAAP diluted earnings per share

$1.23

   

$1.15 - 1.25

Impact of change to diluted share count 3

0.01

   

0.05 - 0.10

Amortization of intangible assets

0.97

   

0.95 - 1.00

Non-cash interest expense on convertible notes

0.33

   

0.30 - 0.35

European medical device regulation 4

0.10

   

0.15 - 0.20

Other 5

0.20

   

0.15 - 0.20

Tax effect of adjustments 6

(0.38)

   

(0.30) - (0.35)

Non-GAAP diluted earnings per share

$2.47

   

$2.55 - 2.65

   

1

Items may not foot due to rounding.

2

Guidance reflects the range provided February 20, 2020.

3

Adjusted non-GAAP diluted WASO excludes the impact of dilutive convertible notes for which the Company is economically hedged through its anti-dilutive bond hedge arrangements.

4

Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with European medical device regulation.

5

Includes costs associated with certain ongoing litigation related expenses and settlements, net losses on strategic investments and business transition costs. See Reconciliation of GAAP to Non-GAAP Financial Measures tables for further detail.

6

Represents the impact from tax affecting the adjustments above at their statutory tax rate.

Reconciliation of Full Year Operating Margin %

 
   

2019 Actuals 1

 

2020 Guidance Range 1, 2

GAAP operating margin %

 

10.5%

 

10.1% - 10.5%

Amortization of intangible assets

 

4.4%

 

4.2% - 4.3%

European medical device regulation 3

 

0.4%

 

0.7% - 0.9%

Other 4

 

0.5%

 

0.7% - 0.9%

Non-GAAP operating margin %

 

15.8%

 

15.8% - 16.2%

   

1

Items may not foot due to rounding.

2

Guidance reflects the range provided February 20, 2020.

3

Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with European medical device regulation.

4

Includes costs associated with certain ongoing litigation related expenses and settlements and business transition costs. See Reconciliation of GAAP to Non-GAAP Financial Measures tables for further detail.

Reconciliation of GAAP to Non-GAAP Information
Management uses certain non-GAAP financial measures such as non-GAAP diluted earnings per share, non-GAAP net income, non-GAAP operating expenses and non-GAAP operating margin, which exclude amortization of intangible assets, business transition costs, purchased in-process research and development, one-time restructuring and related items in connection with acquisitions, investments and divestitures, non-recurring consulting fees, certain litigation expenses and settlements, certain European medical device regulation costs, gains and losses from strategic investments, and non-cash interest expense (excluding debt issuance cost). Management also uses certain non-GAAP measures which are intended to exclude the impact of foreign exchange currency fluctuations. The measure constant currency utilizes 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, business transition costs, purchased in-process research and development, one-time restructuring and related items in connection with acquisitions, investments and divestitures, non-recurring consulting fees, certain litigation expenses and settlements, certain European medical device regulation costs, gains and losses on strategic investments, 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 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.

For the Three Months Ended December 31, 2019

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited - in thousands, except per share data)

             
 

Gross Profit

Operating
Profit

Net Income

Diluted
EPS

Diluted
WASO 5

Net Income to
Adjusted EBITDA

Reported GAAP

$ 227,098

$ 42,166

$ 29,876

$ 0.55

54,638

$ 29,876

% of revenue

73.2%

13.6%

       

Amortization of intangible assets

 

12,599

12,599

     

Litigation related expenses and settlements 1

 

818

818

   

818

Business transition costs 2

 

(7,141)

(7,141)

   

(7,141)

European medical device regulation 3

 

2,384

2,384

   

2,384

Non-cash interest expense on convertible notes

   

4,492

     

Tax effect of adjustments 4

   

(4,513)

     

Interest expense/(income), net

         

9,147

Income tax expense

         

3,271

Depreciation and amortization

         

34,348

Non-cash stock based compensation

         

10,285

Adjusted Non-GAAP

$ 227,098

$ 50,826

$ 38,515

$ 0.73

52,979

$ 82,988

% of revenue

73.2%

16.4%

     

26.7%

   

1

Represents expenses associated with certain ongoing litigation matters, including infringement of the Company's intellectual property.

2

Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs, contingent consideration fair value adjustments, and other costs directly associated with such activities.

3

Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with European medical device regulation.

4

Represents the impact from tax affecting the adjustments above at their statutory tax rate. The impact of these adjustments to the tax rate results in an annual tax rate of ~19% on a GAAP basis and ~21% on a non-GAAP basis.

5

Adjusted non-GAAP diluted WASO excludes the impact of dilutive convertible notes for which the Company is economically hedged through its anti-dilutive bond hedge arrangements.

For the Year Ended December 31, 2019

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited - in thousands, except per share data)

             
 

Gross Profit

Operating
Profit

Net Income

Diluted
EPS

Diluted
WASO 5

Net Income to
Adjusted EBITDA

Reported GAAP

$ 855,713

$ 123,050

$ 65,234

$ 1.23

53,160

$ 65,234

% of revenue

73.3%

10.5%

       

Amortization of intangible assets

 

51,097

51,097

     

Litigation related expenses and settlements 1

 

7,794

7,794

   

7,794

Business transition costs 2

 

(1,995)

(1,995)

   

(1,995)

European medical device regulation 3

 

5,069

5,069

   

5,069

Non-cash interest expense on convertible notes

   

17,617

     

Net loss on strategic investments

   

4,767

   

4,767

Tax effect of adjustments 4

   

(19,782)

     

Interest expense/(income), net

         

36,608

Income tax expense

         

15,283

Depreciation and amortization

         

135,593

Non-cash stock based compensation

         

30,732

Adjusted Non-GAAP

$ 855,713

$ 185,015

$ 129,801

$ 2.47

52,629

$ 299,085

% of revenue

73.3%

15.8%

     

25.6%

   

1

Represents expenses associated with certain ongoing litigation matters, including infringement of the Company's intellectual property.

2

Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs, contingent consideration fair value adjustments, and other costs directly associated with such activities.

3

Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with European medical device regulation.

4

Represents the impact from tax affecting the adjustments above at their statutory tax rate. The impact of these adjustments to the tax rate results in an annual tax rate of ~19% on a GAAP basis and ~21% on a non-GAAP basis.

5

Adjusted non-GAAP diluted WASO excludes the impact of dilutive convertible notes for which the Company is economically hedged through its anti-dilutive bond hedge arrangements.

For the Three Months Ended December 31, 2018

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited - in thousands, except per share data)

             
 

Gross Profit

Operating
Profit

Net Income

Diluted
EPS

Diluted
WASO 5

Net Income to
Adjusted EBITDA

Reported GAAP

$ 202,198

$ 25,856

$ 12,157

$ 0.23

52,530

$ 12,157

% of revenue

70.1%

9.0%

       

Amortization of intangible assets

 

13,268

13,268

     

Litigation related expenses and settlements 1

 

2,750

2,750

   

2,750

Business transition costs 2

 

3,779

3,779

   

3,779

European medical device regulation 3

 

373

373

   

373

Non-cash interest expense on convertible notes

   

4,262

     

Net gain on strategic investments

   

(30)

   

(30)

Tax effect of adjustments 4

   

(444)

     

Interest expense/(income), net

         

9,193

Income tax expense

         

4,175

Depreciation and amortization

         

33,356

Non-cash stock based compensation

         

3,699

Adjusted Non-GAAP

$ 202,198

$ 46,026

$ 36,115

$ 0.69

52,471

$ 69,452

% of revenue

70.1%

16.0%

     

24.1%

   

1

Represents expenses associated with certain ongoing litigation matters, including infringement of the Company's intellectual property.

2

Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs, contingent consideration fair value adjustments, and other costs directly associated with such activities.

3

Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with European medical device regulation.

4

Represents the impact from tax affecting the adjustments above at their statutory tax rate. The impact of these adjustments to the tax rate results in an annual tax rate of ~43% benefit on a GAAP basis and ~18% on a non-GAAP basis.

5

Adjusted non-GAAP diluted WASO excludes the impact of dilutive convertible notes for which the Company is economically hedged through its anti-dilutive bond hedge arrangements.

For the Year Ended December 31, 2018

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited - in thousands, except per share data)

             
 

Gross Profit

Operating
Profit

Net Income

Diluted
EPS

Diluted
WASO 8

Net Income to
Adjusted EBITDA

Reported GAAP

$ 790,555

$ 54,168

$ 12,479

$ 0.24

52,355

$ 12,479

% of revenue

71.8%

4.9%

       

Non-cash purchase accounting adjustments on acquisitions 1

1,080

1,080

1,080

   

1,080

Non-recurring consulting fees 2

 

6,084

6,084

   

6,084

Amortization of intangible assets

 

50,670

50,670

     

Litigation related expenses and settlements 3

 

34,052

34,052

   

34,052

Business transition costs 4

 

11,473

11,473

   

11,473

Purchase of in-process research and development 5

 

8,913

8,913

   

8,913

European medical device regulation 6

 

373

373

   

373

Non-cash interest expense on convertible notes

   

16,722

     

Net loss on strategic investments

   

3,837

   

3,837

Tax effect of adjustments 7

   

(29,126)

     

Interest expense/(income), net

         

37,271

Income tax benefit

         

(3,756)

Depreciation and amortization

         

129,765

Non-cash stock based compensation

         

25,761

Adjusted Non-GAAP

$ 791,635

$ 166,813

$ 116,557

$ 2.23

52,178

$ 267,332

% of revenue

71.9%

15.1%

     

24.3%

1

Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized over the period in which underlying products are sold.

2

Non-recurring consulting fees associated with the implementation of our state tax-planning strategy.

3

Represents the loss recorded in connection with the settlement of the Madsen Medical, Inc. litigation matter, as well as expenses associated with certain ongoing litigation matters, including infringement of the Company's intellectual property.

4

Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs, contingent consideration fair value adjustments, and other costs directly associated with such activities.

5

Purchase of an in-process research and development asset which had no future alternative use.

6

Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with European medical device regulation.

7

Represents the impact from tax affecting the adjustments above at their statutory tax rate. The impact of these adjustments to the tax rate results in an annual tax rate of ~43% benefit on a GAAP basis and ~18% on a non-GAAP basis.

8

Adjusted non-GAAP diluted WASO excludes the impact of dilutive convertible notes for which the Company is economically hedged through its anti-dilutive bond hedge arrangements.

Investor Conference Call
NuVasive will hold a conference call today at 4:30 p.m. ET / 1:30 p.m. PT to discuss the results of its financial performance for the fourth quarter and full year 2019. 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 March 20, 2020. In addition, a telephone replay of the call will be available until February 27, 2020. The replay dial-in numbers are 1-844-512-2921 for domestic callers and 1-412-317-6671 for international callers. Please use pin number: 13698333.

About NuVasive
NuVasive, Inc. (NASDAQ: NUVA) is the leader in spine technology innovation, focused on transforming spine surgery and beyond with minimally disruptive, procedurally integrated solutions designed to deliver reproducible and clinically proven surgical outcomes. The Company's portfolio includes access instruments, implantable hardware, biologics, software systems for surgical planning, navigation and imaging solutions, magnetically adjustable implant systems for spine and orthopedics, and intraoperative monitoring service offerings. With more than $1 billion in revenue, NuVasive has approximately 2,800 employees and operates in more than 50 countries serving surgeons, hospitals and patients. For more information, please visit www.nuvasive.com.

Forward-Looking Statements
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 fourth quarter and full year 2019, as well as projections for 2020 financial guidance and longer-term financial performance goals. The Company's results for the fourth quarter and full year 2019 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 2020 financial guidance and longer-term financial performance goals represent 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 which contribute to the uncertain nature of these statements include, among others, risks associated with acceptance of the Company's surgical products and procedures by spine surgeons and hospitals, development and acceptance of new products or product enhancements, clinical and statistical verification of the benefits achieved via the use of NuVasive's products, the Company's ability to adequately manage inventory as it continues to release new products, its ability to recruit and retain management and key personnel, and the 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.

NuVasive, Inc.

Consolidated Statements of Operations

(in thousands, except per share data)

                 
   

Three Months Ended December 31,

 

Year Ended December 31,

   

2019

 

2018

 

2019

 

2018

   

(Unaudited)

 

(Unaudited)

       

Revenue

               

Product revenue

 

$ 279,234

 

$ 258,226

 

$ 1,044,611

 

$ 986,458

Service revenue

 

31,120

 

30,101

 

123,459

 

115,256

Total revenue

 

310,354

 

288,327

 

1,168,070

 

1,101,714

Cost of revenue (excluding below amortization of intangible assets)

               

Cost of products sold

 

63,211

 

66,375

 

232,474

 

234,509

Cost of services

 

20,045

 

19,754

 

79,883

 

76,650

Total cost of revenue

 

83,256

 

86,129

 

312,357

 

311,159

Gross profit

 

227,098

 

202,198

 

855,713

 

790,555

Operating expenses:

               

Sales, marketing and administrative

 

160,365

 

142,201

 

611,181

 

575,836

Research and development

 

19,109

 

17,094

 

72,380

 

61,695

Amortization of intangible assets

 

12,599

 

13,268

 

51,097

 

50,670

Purchase of in-process research and development

 

 

 

 

8,913

Litigation liability loss

 

 

 

 

27,800

Business transition costs

 

(7,141)

 

3,779

 

(1,995)

 

11,473

Total operating expenses

 

184,932

 

176,342

 

732,663

 

736,387

Interest and other expense, net:

               

Interest income

 

561

 

206

 

1,917

 

586

Interest expense

 

(9,708)

 

(9,399)

 

(38,525)

 

(37,857)

Other (expense) income, net

 

128

 

(331)

 

(5,925)

 

(8,174)

Total interest and other expense, net

 

(9,019)

 

(9,524)

 

(42,533)

 

(45,445)

Income before income taxes

 

33,147

 

16,332

 

80,517

 

8,723

Income tax (expense) benefit

 

(3,271)

 

(4,175)

 

(15,283)

 

3,756

Consolidated net income

 

$ 29,876

 

$ 12,157

 

$ 65,234

 

$ 12,479

                 

Net income per share:

               

Basic

 

$ 0.57

 

$ 0.24

 

$ 1.26

 

$ 0.24

Diluted

 

$ 0.55

 

$ 0.23

 

$ 1.23

 

$ 0.24

Weighted average shares outstanding:

               

Basic

 

52,117

 

51,504

 

51,956

 

51,382

Diluted

 

54,638

 

52,530

 

53,160

 

52,355

NuVasive, Inc.

Consolidated Balance Sheets

(in thousands, except par values and share amounts)

         
   

December 31,

   

2019

 

2018

ASSETS

       

Current assets:

       

Cash and cash equivalents

 

$ 213,034

 

$ 117,840

Accounts receivable, net of allowances of $17,019 and $16,171, respectively

 

211,532

 

196,487

Inventory, net

 

312,419

 

273,244

Prepaid income taxes

 

10,434

 

16,905

Prepaid expenses and other current assets

 

16,917

 

13,733

Total current assets

 

764,336

 

618,209

Property and equipment, net

 

266,318

 

238,841

Intangible assets, net

 

201,092

 

252,048

Goodwill

 

561,064

 

561,366

Operating lease right-of-use assets

 

66,932

 

Deferred tax assets

 

9,162

 

5,263

Restricted cash and investments

 

1,494

 

2,395

Other assets

 

14,892

 

29,737

Total assets

 

$ 1,885,290

 

$ 1,707,859

LIABILITIES AND EQUITY

       

Current liabilities:

       

Accounts payable and accrued liabilities

 

$ 97,160

 

$ 107,292

Contingent consideration liabilities

 

15,727

 

7,560

Accrued payroll and related expenses

 

86,458

 

59,960

Operating lease liabilities

 

5,567

 

Income tax liabilities

 

2,005

 

4,648

Total current liabilities

 

206,917

 

179,460

Senior Convertible Notes

 

623,298

 

602,526

Deferred and income tax liabilities

 

14,655

 

4,964

Operating lease liabilities

 

73,153

 

Other long-term liabilities

 

52,060

 

86,384

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 December 31, 2019 and December 31, 2018, 57,524,658 and 56,648,077 issued and outstanding at December 31, 2019 and December 31, 2018, respectively

 

62

 

61

Additional paid-in capital

 

1,429,854

 

1,397,829

Accumulated other comprehensive loss

 

(9,418)

 

(8,628)

Retained earnings

 

82,475

 

17,241

Treasury stock at cost; 5,379,536 shares and 5,116,496 shares at December 31, 2019 and December 31, 2018, respectively

 

(587,766)

 

(571,978)

Total equity

 

915,207

 

834,525

Total liabilities and equity

 

$ 1,885,290

 

$ 1,707,859

NuVasive, Inc.

Consolidated Statements of Cash Flows

(in thousands)

         
   

Year Ended December 31,

   

2019

 

2018

Operating activities:

       

Consolidated net income

 

$ 65,234

 

$ 12,479

Adjustments to reconcile net income to net cash provided by operating activities:

       

Depreciation and amortization

 

135,593

 

129,765

Purchase of in-process research and development

 

 

8,913

Deferred income taxes

 

5,844

 

(11,396)

Amortization of non-cash interest

 

21,288

 

20,123

Stock-based compensation

 

30,297

 

25,673

Net loss on strategic investments

 

4,767

 

4,421

Reserves on current assets

 

18,382

 

14,834

Other non-cash adjustments

 

5,650

 

22,186

Changes in operating assets and liabilities, net of effects from acquisitions:

       

Accounts receivable

 

(16,407)

 

4,562

Inventory

 

(54,872)

 

(38,646)

Prepaid expenses and other current assets

 

(4,622)

 

(1,280)

Accounts payable and accrued liabilities

 

(3,253)

 

22,035

Contingent consideration liabilities

 

(626)

 

(300)

Accrued payroll and related expenses

 

24,256

 

2,595

Litigation liability

 

(45)

 

1,165

Income taxes

 

3,804

 

2,054

Net cash provided by operating activities

 

235,290

 

219,183

Investing activities:

       

Acquisitions and investments

 

(4,100)

 

(55,266)

Proceeds from other investments

 

 

3,584

Purchases of intangible assets

 

(7,501)

 

(7,682)

Purchases of property and equipment

 

(122,883)

 

(101,921)

Net cash used in investing activities

 

(134,484)

 

(161,285)

Financing activities:

       

Proceeds from the issuance of common stock

 

6,415

 

8,127

Payment of contingent consideration

 

(809)

 

(19,450)

Purchase of treasury stock

 

(14,478)

 

(2,928)

Repurchases of convertible notes

 

 

Proceeds from revolving line of credit

 

 

100,000

Repayments on revolving line of credit

 

 

(100,000)

Other financing activities

 

2,228

 

(327)

Net cash used in financing activities

 

(6,644)

 

(14,578)

Effect of exchange rate changes on cash

 

131

 

(1,283)

Increase (decrease) in cash, cash equivalents and restricted cash

 

94,293

 

42,037

Cash, cash equivalents and restricted cash at beginning of period

 

120,235

 

78,198

Cash, cash equivalents and restricted cash at end of period

 

$ 214,528

 

$ 120,235

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/nuvasive-announces-fourth-quarter-and-full-year-2019-financial-results-301008628.html

SOURCE NuVasive, Inc.


Company Codes: NASDAQ-NMS:NUVA

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