| |
SAN DIEGO, Oct. 29, 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 ended September 30, 2020.
Third Quarter 2020 Highlights
- Net sales increased 1.5% to $295.3 million, or 1.2% on a constant currency basis;
- GAAP operating margin of 9.2%; Non-GAAP operating margin of 15.8%; and
- GAAP diluted earnings per share of $0.11; Non-GAAP diluted earnings per share of $0.55.
"In the third quarter, NuVasive experienced faster-than-anticipated recovery from the impact of COVID-19 with net sales increasing year over year driven by high-single digit growth in our International business and further stability of the US spine market," said J. Christopher Barry, chief executive officer of NuVasive. "The Company remains focused in the fourth quarter on executing against its innovation roadmap, including the launch of our re-designed cervical portfolio, the furthering of our Advanced Materials Science implant portfolio with multiple new implants and executing on key Pulse milestones."
A full reconciliation of GAAP to non-GAAP financial measures can be found in the tables of this news release. NuVasive announced in April 2020 that it had withdrawn its annual financial guidance due to the uncertainty related to COVID-19, and is not reinstituting its annual financial guidance for the remainder of the year.
Third Quarter 2020 Results
NuVasive reported third quarter 2020 total net sales of $295.3 million, a 1.5% increase compared to $290.8 million for the third quarter 2019. On a constant currency basis, third quarter 2020 total net sales increased 1.2% compared to the same period last year.
For the third quarter 2020, both GAAP and non-GAAP gross profit was $210.6 million and GAAP and non-GAAP gross margin was 71.3%. These results compared to GAAP and non-GAAP gross profit of $213.8 million and GAAP and non-GAAP gross margin of 73.5%, for the third quarter 2019.
The Company reported GAAP net income of $5.9 million, or diluted earnings per share of $0.11, for the third quarter 2020, compared to GAAP net income of $11.0 million, or diluted earnings per share of $0.21, for the third quarter 2019. On a non-GAAP basis, the Company reported net income of $28.3 million, or diluted earnings per share of $0.55, for the third quarter 2020, compared to non-GAAP net income of $30.9 million, or diluted earnings per share of $0.59, for the third quarter 2019.
The Company ended the quarter with $982.1 million in cash and cash equivalents, and short term investments.
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 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, gains and losses from changes in fair value of derivatives 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, gains and losses from changes in fair value of derivatives 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 September 30, 2020
|
|
Reconciliation of GAAP to Non-GAAP Financial Measures
|
|
(Unaudited - in thousands, except per share data)
|
| |
|
|
|
|
|
|
| |
Gross Profit
|
Operating
Profit
|
Net Income
|
Diluted
EPS
|
Diluted
WASO5
|
Net Income to
Adjusted EBITDA
|
|
Reported GAAP
|
$ 210,649
|
$ 27,052
|
$ 5,872
|
$ 0.11
|
51,805
|
$ 5,872
|
|
% of revenue
|
71.3%
|
9.2%
|
|
|
|
|
|
Amortization of intangible assets
|
|
13,826
|
13,826
|
|
|
|
|
Litigation related expenses and settlements1
|
|
1,396
|
1,396
|
|
|
1,396
|
|
Business transition costs2
|
|
3,107
|
3,107
|
|
|
3,107
|
|
European medical device regulation3
|
|
1,149
|
1,149
|
|
|
1,149
|
|
Non-cash interest expense on convertible notes
|
|
|
12,683
|
|
|
|
|
Net gain on strategic investments
|
|
|
(1,132)
|
|
|
(1,132)
|
|
Tax effect of adjustments4
|
|
|
(8,575)
|
|
|
|
|
Interest expense/(income), net
|
|
|
|
|
|
20,852
|
|
Income tax expense
|
|
|
|
|
|
579
|
|
Depreciation and amortization
|
|
|
|
|
|
35,959
|
|
Non-cash stock-based compensation
|
|
|
|
|
|
7,572
|
|
Adjusted Non-GAAP
|
$ 210,649
|
$ 46,530
|
$ 28,326
|
$ 0.55
|
51,805
|
$ 75,354
|
|
% of revenue
|
71.3%
|
15.8%
|
|
|
|
25.5%
|
| |
|
|
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.
|
|
5
|
Adjusted non-GAAP diluted WASO excludes the impact of all dilutive securities, including convertible notes for which the Company is economically hedged through its anti-dilutive bond hedge arrangements.
|
|
For the Nine Months Ended September 30, 2020
|
|
Reconciliation of GAAP to Non-GAAP Financial Measures
|
|
(Unaudited - in thousands, except per share data)
|
| |
|
|
|
|
|
|
| |
Gross Profit
|
Operating
Profit
|
Net (Loss)
Income
|
Diluted
EPS
|
Diluted
WASO7
|
Net (Loss) to
Adjusted EBITDA
|
|
Reported GAAP
|
$ 521,772
|
$ 18,068
|
$ (38,845)
|
$ (0.76)
|
51,440
|
$ (38,845)
|
|
% of revenue
|
68.8%
|
2.4%
|
|
|
|
|
|
Amortization of intangible assets
|
|
39,150
|
39,150
|
|
|
|
|
Litigation related expenses and settlements1
|
|
5,686
|
5,686
|
|
|
5,686
|
|
Business transition costs2
|
|
2,541
|
2,541
|
|
|
2,541
|
|
Purchase of in-process research and development3
|
|
1,011
|
1,011
|
|
|
1,011
|
|
European medical device regulation4
|
|
4,079
|
4,079
|
|
|
4,079
|
|
Non-cash interest expense on convertible notes
|
|
|
28,022
|
|
|
|
|
Net loss on strategic investments
|
|
|
278
|
|
|
278
|
|
Net loss recognized on change in fair value of derivatives5
|
|
|
12,301
|
|
|
12,301
|
|
Tax effect of adjustments6
|
|
|
(20,834)
|
|
|
|
|
Interest expense/(income), net
|
|
|
|
|
|
47,858
|
|
Income tax benefit
|
|
|
|
|
|
(9,764)
|
|
Depreciation and amortization
|
|
|
|
|
|
106,097
|
|
Non-cash stock-based compensation
|
|
|
|
|
|
9,751
|
|
Adjusted Non-GAAP
|
$ 521,772
|
$ 70,535
|
$ 33,389
|
$ 0.64
|
52,033
|
$ 140,993
|
|
% of revenue
|
68.8%
|
9.3%
|
|
|
|
18.6%
|
| |
|
|
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
|
Purchase of an in-process research and development asset which had no future alternative use.
|
|
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
|
Represents the net change in fair value of the Company's derivative asset and liability associated with the 2023 Notes.
|
|
6
|
Represents the impact from tax affecting the adjustments above at their statutory tax rate.
|
|
7
|
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 September 30, 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
WASO5
|
Net Income to
Adjusted EBITDA
|
|
Reported GAAP
|
$ 213,807
|
$ 30,514
|
$ 11,010
|
$ 0.21
|
53,056
|
$ 11,010
|
|
% of revenue
|
73.5%
|
10.5%
|
|
|
|
|
|
Amortization of intangible assets
|
|
12,596
|
12,596
|
|
|
|
|
Litigation related expenses and settlements1
|
|
1,899
|
1,899
|
|
|
1,899
|
|
Business transition costs2
|
|
(333)
|
(333)
|
|
|
(333)
|
|
European medical device regulation3
|
|
953
|
953
|
|
|
953
|
|
Non-cash interest expense on convertible notes
|
|
|
4,432
|
|
|
|
|
Net loss on strategic investments
|
|
|
4,767
|
|
|
4,767
|
|
Tax effect of adjustments4
|
|
|
(4,455)
|
|
|
|
|
Interest expense/(income), net
|
|
|
|
|
|
9,034
|
|
Income tax expense
|
|
|
|
|
|
4,774
|
|
Depreciation and amortization
|
|
|
|
|
|
33,631
|
|
Non-cash stock-based compensation
|
|
|
|
|
|
7,829
|
|
Adjusted Non-GAAP
|
$ 213,807
|
$ 45,629
|
$ 30,869
|
$ 0.59
|
52,590
|
$ 73,564
|
|
% of revenue
|
73.5%
|
15.7%
|
|
|
|
25.3%
|
| |
|
|
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. As of October 30, 2019, the Company estimated an annual tax rate of ~26% on a GAAP basis and ~23% 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 Nine Months Ended September 30, 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
WASO5
|
Net Income to
Adjusted EBITDA
|
|
Reported GAAP
|
$ 628,615
|
$ 80,884
|
$ 35,358
|
$ 0.67
|
52,667
|
$ 35,358
|
|
% of revenue
|
73.3%
|
9.4%
|
|
|
|
|
|
Amortization of intangible assets
|
|
38,498
|
38,498
|
|
|
|
|
Litigation related expenses and settlements1
|
|
6,976
|
6,976
|
|
|
6,976
|
|
Business transition costs2
|
|
5,146
|
5,146
|
|
|
5,146
|
|
European medical device regulation3
|
|
2,685
|
2,685
|
|
|
2,685
|
|
Non-cash interest expense on convertible notes
|
|
|
13,125
|
|
|
|
|
Net loss on strategic investments
|
|
|
4,767
|
|
|
4,767
|
|
Tax effect of adjustments4
|
|
|
(15,269)
|
|
|
|
|
Interest expense/(income), net
|
|
|
|
|
|
27,461
|
|
Income tax expense
|
|
|
|
|
|
12,012
|
|
Depreciation and amortization
|
|
|
|
|
|
101,245
|
|
Non-cash stock-based compensation
|
|
|
|
|
|
20,447
|
|
Adjusted Non-GAAP
|
$ 628,615
|
$ 134,189
|
$ 91,286
|
$ 1.74
|
52,512
|
$ 216,097
|
|
% of revenue
|
73.3%
|
15.6%
|
|
|
|
25.2%
|
| |
|
|
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. As of October 30, 2019, the Company estimated an annual tax rate of ~26% on a GAAP basis and ~23% 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.
|
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 third quarter 2020. 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 November 29, 2020. In addition, a telephone replay of the call will be available until November 5, 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: 13708396.
About NuVasive
NuVasive, Inc. (NASDAQ: NUVA) is the leader in spine technology innovation, with a mission to transform surgery, advance care and change lives. The Company's less invasive, procedurally integrated surgical solutions are designed to deliver reproducible and clinically proven outcomes. The Company's comprehensive procedural portfolio includes access, implants and fixation systems, biologics, software 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 net sales, 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 third quarter 2020. The Company's results for the third quarter 2020 are prior to the completion of review and audit procedures by the Company's external auditors and are subject to adjustment. The potential risks and uncertainties which contribute to the uncertain nature of these statements include, among others, the impact of the COVID-19 pandemic on the Company's business and financial results; the Company's ability to maintain operations to support its customers and patients in the near-term and to capitalize on future growth opportunities; 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 September 30,
|
|
Nine Months Ended September 30,
|
|
(unaudited)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
Products
|
|
$ 267,571
|
|
$ 260,173
|
|
$ 685,922
|
|
$ 765,377
|
|
Services
|
|
27,711
|
|
30,662
|
|
72,853
|
|
92,339
|
|
Total net sales
|
|
295,282
|
|
290,835
|
|
758,775
|
|
857,716
|
|
Cost of sales (excluding below amortization of intangible assets):
|
|
|
|
|
|
|
|
|
|
Products
|
|
66,049
|
|
57,164
|
|
182,067
|
|
169,263
|
|
Services
|
|
18,584
|
|
19,864
|
|
54,936
|
|
59,838
|
|
Total cost of sales
|
|
84,633
|
|
77,028
|
|
237,003
|
|
229,101
|
|
Gross profit
|
|
210,649
|
|
213,807
|
|
521,772
|
|
628,615
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
146,260
|
|
152,887
|
|
402,935
|
|
450,816
|
|
Research and development
|
|
20,404
|
|
18,143
|
|
58,067
|
|
53,271
|
|
Amortization of intangible assets
|
|
13,826
|
|
12,596
|
|
39,150
|
|
38,498
|
|
Purchase of in-process research and development
|
|
—
|
|
—
|
|
1,011
|
|
—
|
|
Business transition costs
|
|
3,107
|
|
(333)
|
|
2,541
|
|
5,146
|
|
Total operating expenses
|
|
183,597
|
|
183,293
|
|
503,704
|
|
547,731
|
|
Interest and other expense, net:
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
271
|
|
620
|
|
1,306
|
|
1,356
|
|
Interest expense
|
|
(21,123)
|
|
(9,654)
|
|
(49,164)
|
|
(28,817)
|
|
Other income (expense), net
|
|
251
|
|
(5,696)
|
|
(18,819)
|
|
(6,053)
|
|
Total interest and other expense, net
|
|
(20,601)
|
|
(14,730)
|
|
(66,677)
|
|
(33,514)
|
|
Income (loss) before income taxes
|
|
6,451
|
|
15,784
|
|
(48,609)
|
|
47,370
|
|
Income tax (expense) benefit
|
|
(579)
|
|
(4,774)
|
|
9,764
|
|
(12,012)
|
|
Consolidated net income (loss)
|
|
$ 5,872
|
|
$ 11,010
|
|
$ (38,845)
|
|
$ 35,358
|
| |
|
|
|
|
|
|
|
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.11
|
|
$ 0.21
|
|
$ (0.76)
|
|
$ 0.68
|
|
Diluted
|
|
$ 0.11
|
|
$ 0.21
|
|
$ (0.76)
|
|
$ 0.67
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
51,261
|
|
52,057
|
|
51,440
|
|
51,901
|
|
Diluted
|
|
51,805
|
|
53,056
|
|
51,440
|
|
52,667
|
|
NuVasive, Inc.
|
|
Consolidated Balance Sheets
|
|
(in thousands, except par values and share amounts)
|
| |
|
|
|
|
| |
|
September 30, 2020
|
|
December 31, 2019
|
|
ASSETS
|
|
(Unaudited)
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ 774,544
|
|
$ 213,034
|
|
Short-term marketable securities
|
|
207,605
|
|
—
|
|
Accounts receivable, net of allowances of $20,924 and $17,019, respectively
|
|
205,255
|
|
211,532
|
|
Inventory, net
|
|
305,634
|
|
312,419
|
|
Prepaid income taxes
|
|
13,322
|
|
10,434
|
|
Prepaid expenses and other current assets
|
|
15,576
|
|
16,917
|
|
Total current assets
|
|
1,521,936
|
|
764,336
|
|
Property and equipment, net
|
|
281,339
|
|
266,318
|
|
Intangible assets, net
|
|
165,499
|
|
201,092
|
|
Goodwill
|
|
558,985
|
|
561,064
|
|
Operating lease right-of-use assets
|
|
103,994
|
|
66,932
|
|
Deferred tax assets
|
|
9,291
|
|
9,162
|
|
Restricted cash and investments
|
|
1,494
|
|
1,494
|
|
Other assets
|
|
14,033
|
|
14,892
|
|
Total assets
|
|
$ 2,656,571
|
|
$ 1,885,290
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$ 112,392
|
|
$ 97,160
|
|
Contingent consideration liabilities
|
|
7,275
|
|
15,727
|
|
Accrued payroll and related expenses
|
|
53,005
|
|
86,458
|
|
Operating lease liabilities
|
|
7,513
|
|
5,567
|
|
Income tax liabilities
|
|
760
|
|
2,005
|
|
Senior convertible notes
|
|
639,682
|
|
—
|
|
Total current liabilities
|
|
820,627
|
|
206,917
|
|
Long-term senior convertible notes
|
|
756,167
|
|
623,298
|
|
Deferred and income tax liabilities
|
|
8,236
|
|
14,655
|
|
Operating lease liabilities
|
|
113,105
|
|
73,153
|
|
Other long-term liabilities
|
|
48,734
|
|
52,060
|
|
Commitments and contingencies
|
|
|
|
|
|
Redeemable equity component of senior convertible notes
|
|
10,318
|
|
—
|
|
Stockholders' equity:
|
|
|
|
|
|
Preferred stock, $0.001 par value; 5,000,000 shares authorized, none outstanding
|
|
—
|
|
—
|
|
Common stock, $0.001 par value; 150,000,000 and 120,000,000 shares authorized at September 30, 2020 and December 31, 2019, respectively; 57,813,261 and 57,524,658 issued and outstanding at September 30, 2020 and December 31, 2019, respectively
|
|
62
|
|
62
|
|
Additional paid-in capital
|
|
1,533,409
|
|
1,429,854
|
|
Accumulated other comprehensive loss
|
|
(10,152)
|
|
(9,418)
|
|
Retained earnings
|
|
43,630
|
|
82,475
|
|
Treasury stock at cost; 6,540,526 shares and 5,379,536 shares at September 30, 2020 and December 31, 2019, respectively
|
|
(667,565)
|
|
(587,766)
|
|
Total equity
|
|
899,384
|
|
915,207
|
|
Total liabilities and equity
|
|
$ 2,656,571
|
|
$ 1,885,290
|
|
NuVasive, Inc.
|
|
Consolidated Statements of Cash Flows
|
|
(in thousands)
|
| |
|
|
|
|
| |
|
Nine Months Ended September 30,
|
|
(unaudited)
|
|
2020
|
|
2019
|
|
Operating activities:
|
|
|
|
|
|
Consolidated net (loss) income
|
|
$ (38,845)
|
|
$ 35,358
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
106,097
|
|
101,245
|
|
Amortization of non-cash interest
|
|
33,714
|
|
15,853
|
|
Stock-based compensation
|
|
9,806
|
|
20,447
|
|
Reserves on current assets
|
|
44,927
|
|
11,539
|
|
Purchase of in-process research and development
|
|
1,011
|
|
—
|
|
Net loss on strategic investments
|
|
278
|
|
4,767
|
|
Net loss recognized on change in fair value of derivatives
|
|
12,301
|
|
—
|
|
Other non-cash adjustments
|
|
13,899
|
|
10,168
|
|
Deferred income taxes
|
|
(6,257)
|
|
9,810
|
|
Changes in operating assets and liabilities, net of effects from acquisitions:
|
|
|
|
|
|
Accounts receivable
|
|
2,388
|
|
(8,645)
|
|
Inventory
|
|
(37,523)
|
|
(45,571)
|
|
Prepaid expenses and other current assets
|
|
(1,620)
|
|
(2,499)
|
|
Accounts payable and accrued liabilities
|
|
10,176
|
|
6,593
|
|
Accrued payroll and related expenses
|
|
(33,529)
|
|
4,108
|
|
Income taxes
|
|
(3,625)
|
|
(2,588)
|
|
Net cash provided by operating activities
|
|
113,198
|
|
160,585
|
|
Investing activities:
|
|
|
|
|
|
Acquisitions and investments
|
|
—
|
|
(4,100)
|
|
Proceeds from other investments
|
|
1,132
|
|
—
|
|
Purchases of intangible assets
|
|
(3,810)
|
|
(7,501)
|
|
Purchases of property and equipment
|
|
(77,857)
|
|
(94,430)
|
|
Purchases of marketable securities
|
|
(207,695)
|
|
—
|
|
Net cash used in investing activities
|
|
(288,230)
|
|
(106,031)
|
|
Financing activities:
|
|
|
|
|
|
Proceeds from the issuance of common stock
|
|
3,871
|
|
3,888
|
|
Purchases of treasury stock
|
|
(79,680)
|
|
(13,343)
|
|
Payment of contingent consideration
|
|
(7,053)
|
|
(809)
|
|
Proceeds from issuance of convertible debt, net of issuance costs
|
|
873,890
|
|
—
|
|
Proceeds from sale of warrants
|
|
93,915
|
|
—
|
|
Purchases of convertible note hedges
|
|
(147,825)
|
|
—
|
|
Other financing activities
|
|
(1,405)
|
|
2,283
|
|
Net cash provided by (used in) financing activities
|
|
735,713
|
|
(7,981)
|
|
Effect of exchange rate changes on cash
|
|
829
|
|
(1,014)
|
|
Increase in cash, cash equivalents and restricted cash
|
|
561,510
|
|
45,559
|
|
Cash, cash equivalents and restricted cash at beginning of period
|
|
214,528
|
|
120,235
|
|
Cash, cash equivalents and restricted cash at end of period
|
|
$ 776,038
|
|
$ 165,794
|
 View original content to download multimedia:http://www.prnewswire.com/news-releases/nuvasive-announces-third-quarter-2020-financial-results-301163281.html
SOURCE NuVasive, Inc.
|
|
