NuVasive Announces Second Quarter 2021 Financial Results
NuVasive Announces Second Quarter 2021 Financial Results
-- Net sales increase driven by recovery across all procedural segments and continued strong international growth --
-- Pulse platform clinical evaluations underway in Europe following latest CE certification --
-- Company provides full-year 2021 financial guidance --
PR Newswire
SAN DIEGO, July 28, 2021
SAN DIEGO, July 28, 2021 /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 June 30, 2021.
Second Quarter 2021 Highlights
- Net sales increased 44.8% to $294.8 million, or 43.3% on a constant currency basis;
- GAAP operating margin of 3.6%; Non-GAAP operating margin of 13.9%; and
- GAAP diluted earnings per share of $0.03; Non-GAAP diluted earnings per share of $0.60.
"NuVasive continued to see the spine market stabilize throughout the second quarter, providing us the opportunity to help more surgeons and patients around the globe. Our continued investments in the cervical and anterior procedural segments and our international commercial organization are advancing both our near- and long-term growth strategy," said J. Christopher Barry, chief executive officer of NuVasive. "Following our latest CE certification, the Pulse platform clinical evaluations and surgeon feedback have exceeded our expectations. The ability for multiple technologies to be utilized in a single, integrated platform enables surgeons to increase surgical reproducibility—a pivotal step in how NuVasive is transforming spine surgery."
A full reconciliation of GAAP to non-GAAP financial measures can be found in the tables of this news release.
Second Quarter 2021 Results
NuVasive reported second quarter 2021 total net sales of $294.8 million, a 44.8% increase compared to $203.6 million for the second quarter 2020. On a constant currency basis, second quarter 2021 total net sales increased 43.3% compared to the same period last year. The net sales results were due to recovery from the COVID-19 pandemic across all procedural segments and continued strong international growth.
For the second quarter 2021, GAAP gross profit was $216.5 million or $217.1 million on a non-GAAP basis, compared to GAAP and non-GAAP gross profit of $123.1 million in the prior year period. GAAP gross margin was 73.4% or 73.6% on a non-GAAP basis, compared to GAAP and non-GAAP gross margin of 60.5% in the prior year period. GAAP and non-GAAP gross profit improvement was primarily driven by incremental inventory reserves taken in the second quarter of 2020 resulting from pandemic-related impacts.
For the second quarter 2021, GAAP net income was $1.8 million or diluted earnings per share of $0.03, compared to GAAP net loss of $50.0 million or diluted loss per share of $0.98 in the prior year period. Non-GAAP net income was $31.2 million or diluted earnings per share of $0.60, compared to non-GAAP net loss of $20.4 million or diluted loss per share of $0.40 in the prior year period.
Cash, cash equivalents, and investments were $204.1 million as of June 30, 2021. In April 2021, the Simplify® Cervical Disc received approval from the U.S. Food and Drug Administration for two-level cervical total disc replacement, resulting in the payment of $45.8 million for the achievement of this regulatory milestone.
2021 Financial Guidance
Today, NuVasive announced full-year 2021 financial guidance. Please see our Reconciliation of Non-GAAP Financial Guidance included in this release for a reconciliation of the GAAP and non-GAAP financial measures. For full-year 2021, the Company expects:
- Net sales in the range of $1.19 billion to $1.21 billion;
- Non-GAAP operating margin in the range of 14.4% to 14.9%; and
- Non-GAAP diluted earnings per share in the range of $2.25 to $2.35.
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 gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP net income (loss), and non-GAAP diluted earnings (loss) per share. These non-GAAP financial measures exclude amortization of intangible assets, business transition costs, purchased in-process research and development, one-time restructuring, non-cash purchase accounting adjustments, certain foreign currency impacts and related items in connection with acquisitions, investments and divestitures, 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, non-cash interest expense (excluding debt issuance cost) and other significant one-time items. 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, non-cash purchase accounting adjustments, certain foreign currency impacts and related items in connection with acquisitions, investments and divestitures, 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 June 30, 2021 | ||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||
(Unaudited - in thousands, except per share data) | ||||||
Gross Profit | Operating | Net Income | Diluted | Diluted | Net Income to | |
Reported GAAP | $ 216,548 | $ 10,746 | $ 1,799 | $ 0.03 | 52,211 | $ 1,799 |
% of net sales | 73.4% | 3.6% | ||||
Non-cash purchase accounting adjustments on acquisitions1 | 556 | 556 | 556 | 556 | ||
Amortization of intangible assets | 15,088 | 15,088 | ||||
Litigation related expenses and settlements2 | 1,287 | 1,287 | 1,287 | |||
Business transition costs3 | 11,553 | 11,553 | 11,553 | |||
European medical device regulation4 | 1,689 | 1,689 | 1,689 | |||
Net gain on strategic investments | (2,101) | (2,101) | ||||
Non-cash acquisition-related foreign currency impacts5 | 3,545 | 3,545 | ||||
Tax effect of adjustments6 | (2,243) | |||||
Interest expense/(income), net | 4,379 | |||||
Income tax expense | 5,837 | |||||
Depreciation and amortization | 37,522 | |||||
Non-cash stock-based compensation | 5,298 | |||||
Adjusted Non-GAAP | $ 217,104 | $ 40,919 | $ 31,173 | $ 0.60 | 52,211 | $ 71,364 |
% of net sales | 73.6% | 13.9% | 24.2% | |||
1 | Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized |
2 | Represents expenses associated with certain ongoing litigation matters, including infringement of the Company's intellectual property. |
3 | Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and |
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 non-cash adjustments to acquisition-related intercompany balances and contingent consideration liabilities held in a foreign currency. |
6 | Represents the impact from tax effecting 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 |
For the Six Months Ended June 30, 2021 | ||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||
(Unaudited - in thousands, except per share data) | ||||||
Gross Profit | Operating | Net (Loss) | Diluted | Diluted | Net (Loss) to | |
Reported GAAP | $ 415,986 | $ 23,085 | $ (5,711) | $ (0.11) | 51,473 | $ (5,711) |
% of net sales | 73.5% | 4.1% | ||||
Non-cash purchase accounting adjustments on acquisitions1 | 742 | 742 | 742 | 742 | ||
Amortization of intangible assets | 28,425 | 28,425 | ||||
Litigation related expenses and settlements2 | 3,248 | 3,248 | 3,248 | |||
Business transition costs3 | 17,137 | 17,137 | 17,137 | |||
European medical device regulation4 | 3,564 | 3,564 | 3,564 | |||
Net gain on strategic investments | (2,101) | (2,101) | ||||
Non-cash acquisition-related foreign currency impacts5 | 13,393 | 13,393 | ||||
Tax effect of adjustments6 | (8,494) | |||||
Interest expense/(income), net | 12,322 | |||||
Income tax expense | 5,217 | |||||
Depreciation and amortization | 73,954 | |||||
Non-cash stock-based compensation | 13,007 | |||||
Adjusted Non-GAAP | $ 416,728 | $ 76,201 | $ 50,203 | $ 0.96 | 52,140 | $ 134,772 |
% of net sales | 73.6% | 13.5% | 23.8% | |||
1 | Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized | ||||||
2 | Represents expenses associated with certain ongoing litigation matters, including infringement of the Company's intellectual property. | ||||||
3 | Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party | ||||||
4 | Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with European medical | ||||||
5 | Represents non-cash adjustments to acquisition-related intercompany balances and contingent consideration liabilities held in a foreign currency. | ||||||
6 | Represents the impact from tax effecting 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 | ||||||
For the Three Months Ended June 30, 2020 | ||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||
(Unaudited - in thousands, except per share data) | ||||||
Gross Profit | Operating | Net (Loss) | Diluted | Diluted | Net (Loss) to | |
Reported GAAP | $ 123,107 | $ (37,303) | $ (50,015) | $ (0.98) | 51,224 | $ (50,015) |
% of net sales | 60.5% | (18.3%) | ||||
Amortization of intangible assets | 12,675 | 12,675 | ||||
Litigation related expenses and settlements1 | 1,187 | 1,187 | 1,187 | |||
Business transition costs2 | 874 | 874 | 874 | |||
Purchase of in-process research and development3 | 1,011 | 1,011 | 1,011 | |||
European medical device regulation4 | 1,683 | 1,683 | 1,683 | |||
Non-cash interest expense on convertible notes | 9,615 | |||||
Net loss recognized on change in fair value of derivatives5 | 12,301 | 12,301 | ||||
Tax effect of adjustments6 | (9,697) | |||||
Interest expense/(income), net | 16,220 | |||||
Income tax benefit | (15,170) | |||||
Depreciation and amortization | 35,166 | |||||
Non-cash stock-based compensation | 5,037 | |||||
Adjusted Non-GAAP | $ 123,107 | $ (19,873) | $ (20,366) | $ (0.40) | 51,224 | $ 8,294 |
% of net sales | 60.5% | (9.8%) | 4.1% | |||
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 | ||||||
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 | ||||||
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 effecting 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 | ||||||
For the Six Months Ended June 30, 2020 | ||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||
(Unaudited - in thousands, except per share data) | ||||||
Gross Profit | Operating | Net (Loss) | Diluted | Diluted | Net (Loss) to | |
Reported GAAP | $ 311,123 | $ (8,984) | $ (44,717) | $ (0.87) | 51,531 | $ (44,717) |
% of net sales | 67.1% | (1.9%) | ||||
Amortization of intangible assets | 25,324 | 25,324 | ||||
Litigation related expenses and settlements1 | 4,290 | 4,290 | 4,290 | |||
Business transition costs2 | (566) | (566) | (566) | |||
Purchase of in-process research and development3 | 1,011 | 1,011 | 1,011 | |||
European medical device regulation4 | 2,930 | 2,930 | 2,930 | |||
Non-cash interest expense on convertible notes | 15,339 | |||||
Net loss on strategic investments | 1,411 | 1,411 | ||||
Net loss recognized on change in fair value of derivatives5 | 12,301 | 12,301 | ||||
Tax effect of adjustments6 | (12,259) | |||||
Interest expense/(income), net | 27,006 | |||||
Income tax benefit | (10,343) | |||||
Depreciation and amortization | 70,138 | |||||
Non-cash stock-based compensation | 2,179 | |||||
Adjusted Non-GAAP | $ 311,123 | $ 24,005 | $ 5,064 | $ 0.10 | 52,148 | $ 65,640 |
% of net sales | 67.1% | 5.2% | 14.2% | |||
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 |
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 |
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 effecting 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 |
Full-Year 2021 Financial Guidance | |||||||
Reconciliation of GAAP to Non-GAAP EPS | |||||||
2020 Actuals 1 | 2021 Guidance Range 1, 2 | ||||||
GAAP diluted earnings (loss) per share | $ (0.72) | $ 0.54 - 0.64 | |||||
Impact of change to diluted share count 3 | 0.01 | 0.00 - 0.05 | |||||
Amortization of intangible assets | 0.99 | 1.09 - 1.14 | |||||
Non-cash interest expense on convertible notes 4 | 0.79 | - | |||||
European medical device regulation5 | 0.15 | 0.17 - 0.22 | |||||
Other 6 | 0.60 | 0.72 - 0.77 | |||||
Tax effect of adjustments 7 | (0.59) | (0.33) - (0.38) | |||||
Non-GAAP diluted earnings per share | $ 1.23 | $ 2.25- 2.35 | |||||
1 | Data has been intentionally rounded and may not sum. |
2 | Guidance reflects the range provided July 28, 2021. |
3 | Adjusted non-GAAP diluted WASO excludes the impact of dilutive convertible notes for which the Company is economically hedged |
4 | Discontinuation of debt discount accretion for our Senior Convertible Notes resulting from adopting ASU 2020-06 on January 1, 2021. |
5 | Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply |
6 | Include costs primarily associated with litigation related expenses and settlements, non-cash acquisition-related foreign currency |
7 | Represents the impact from tax effecting the adjustments above at their statutory tax rate. |
Full-Year 2021 Financial Guidance | ||||||
Reconciliation of GAAP to non-GAAP Operating Margin % | ||||||
2020 Actuals 1 | 2021 Guidance Range 1, 2 | |||||
GAAP Operating Margin % | 3.7% | 6.5% - 7.0% | ||||
Amortization of intangible assets | 4.9% | 4.7% - 4.9% | ||||
European medical device regulation3 | 0.7% | 0.7% - 0.9% | ||||
Other 4 | 1.8% | 2.2% - 2.4% | ||||
Non-GAAP Operating Margin % | 11.1% | 14.4% - 14.9% | ||||
1 | Data has been intentionally rounded and may not sum. |
2 | Guidance reflects the range provided July 28, 2021. |
3 | Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply |
4 | Include costs primarily associated with litigation related expenses and settlements, purchase of in-process research and |
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 second quarter 2021. 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 event, the webcast will remain available on NuVasive's website for 30 days. In addition, an audio replay of the call will be available until August 4, 2021. 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: 13720558.
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 surgical access instruments, spinal implants, fixation systems, biologics, software for surgical planning, navigation and imaging solutions, magnetically adjustable implant systems for spine and orthopedics, and intraoperative neuromonitoring technology and service offerings. With more than $1 billion in net sales, NuVasive has approximately 2,700 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 second quarter 2021, as well as projections for 2021 financial guidance and longer-term financial performance goals. The Company's results for the second quarter 2021 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 2021 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, 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 June 30, | Six Months Ended June 30, | |||||||
(unaudited) | 2021 | 2020 | 2021 | 2020 | ||||
Net sales: | ||||||||
Products | $ 266,763 | $ 183,664 | $ 512,214 | $ 418,351 | ||||
Services | 28,065 | 19,948 | 53,863 | 45,142 | ||||
Total net sales | 294,828 | 203,612 | 566,077 | 463,493 | ||||
Cost of sales (excluding below amortization of intangible assets): | ||||||||
Products | 58,584 | 64,373 | 111,886 | 116,018 | ||||
Services | 19,696 | 16,132 | 38,205 | 36,352 | ||||
Total cost of sales | 78,280 | 80,505 | 150,091 | 152,370 | ||||
Gross profit | 216,548 | 123,107 | 415,986 | 311,123 | ||||
Operating expenses: | ||||||||
Selling, general and administrative | 157,397 | 126,444 | 303,351 | 256,675 | ||||
Research and development | 21,764 | 19,406 | 43,988 | 37,663 | ||||
Amortization of intangible assets | 15,088 | 12,675 | 28,425 | 25,324 | ||||
Purchase of in-process research and development | — | 1,011 | — | 1,011 | ||||
Business transition costs | 11,553 | 874 | 17,137 | (566) | ||||
Total operating expenses | 205,802 | 160,410 | 392,901 | 320,107 | ||||
Interest and other expense, net: | ||||||||
Interest income | 9 | 304 | 96 | 1,035 | ||||
Interest expense | (4,388) | (16,524) | (12,418) | (28,041) | ||||
Other income (expense), net | 1,269 | (11,662) | (11,257) | (19,070) | ||||
Total interest and other expense, net | (3,110) | (27,882) | (23,579) | (46,076) | ||||
Income (loss) before income taxes | 7,636 | (65,185) | (494) | (55,060) | ||||
Income tax (expense) benefit | (5,837) | 15,170 | (5,217) | 10,343 | ||||
Consolidated net income (loss) | $ 1,799 | $ (50,015) | $ (5,711) | $ (44,717) | ||||
Net income (loss) per share: | ||||||||
Basic | $ 0.03 | $ (0.98) | $ (0.11) | $ (0.87) | ||||
Diluted | $ 0.03 | $ (0.98) | $ (0.11) | $ (0.87) | ||||
Weighted average shares outstanding: | ||||||||
Basic | 51,567 | 51,224 | 51,473 | 51,531 | ||||
Diluted | 52,211 | 51,224 | 51,473 | 51,531 | ||||
NuVasive, Inc. | ||||
Consolidated Balance Sheets | ||||
(in thousands, except par value data) | ||||
June 30, 2021 | December 31, 2020 | |||
ASSETS | (Unaudited) | |||
Current assets: | ||||
Cash and cash equivalents | $ 204,138 | $ 856,869 | ||
Short-term marketable securities | — | 173,145 | ||
Accounts receivable, net of allowances of $20,881 and $20,631, respectively | 216,915 | 207,071 | ||
Inventory, net | 319,734 | 300,623 | ||
Prepaid income taxes | 3,990 | 4,727 | ||
Prepaid expenses and other current assets | 20,971 | 19,749 | ||
Total current assets | 765,748 | 1,562,184 | ||
Property and equipment, net | 295,779 | 286,369 | ||
Intangible assets, net | 278,097 | 152,264 | ||
Goodwill | 636,727 | 559,553 | ||
Operating lease right-of-use assets | 105,983 | 102,270 | ||
Deferred tax assets | 46,699 | 15,755 | ||
Restricted cash and investments | 1,494 | 1,494 | ||
Other assets | 15,946 | 13,193 | ||
Total assets | $ 2,146,473 | $ 2,693,082 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities: | ||||
Accounts payable and accrued liabilities | $ 110,702 | $ 110,401 | ||
Contingent consideration liabilities | 7,404 | 7,289 | ||
Accrued payroll and related expenses | 64,902 | 63,421 | ||
Operating lease liabilities | 9,404 | 7,875 | ||
Income tax liabilities | 1,320 | 2,073 | ||
Senior convertible notes | — | 645,303 | ||
Total current liabilities | 193,732 | 836,362 | ||
Long-term senior convertible notes | 881,381 | 766,226 | ||
Deferred tax liabilities | 2,798 | 2,807 | ||
Operating lease liabilities | 114,490 | 111,634 | ||
Contingent consideration liabilities | 92,966 | 29,752 | ||
Other long-term liabilities | 20,205 | 22,686 | ||
Commitments and contingencies | ||||
Redeemable equity component of senior convertible notes | — | 4,697 | ||
Stockholders' equity: | ||||
Preferred stock, $0.001 par value; 5,000 shares authorized, none outstanding | — | — | ||
Common stock, $0.001 par value; 150,000 shares authorized at June 30, 2021 and December 31, 2020; 58,332 shares issued and 51,665 outstanding at June 30, 2021; 57,945 shares issued and 51,376 outstanding at December 31, 2020 | 62 | 62 | ||
Additional paid-in capital | 1,420,277 | 1,550,001 | ||
Accumulated other comprehensive loss | (7,622) | (7,585) | ||
Retained earnings | 104,083 | 45,322 | ||
Treasury stock at cost; 6,667 shares and 6,569 shares at June 30, 2021 and December 31, 2020, respectively | (675,899) | (668,882) | ||
Total equity | 840,901 | 918,918 | ||
Total liabilities and equity | $ 2,146,473 | $ 2,693,082 | ||
NuVasive, Inc. | ||||
Consolidated Statements of Cash Flows | ||||
(in thousands) | ||||
Six Months Ended June 30, | ||||
(unaudited) | 2021 | 2020 | ||
Operating activities: | ||||
Consolidated net loss | $ (5,711) | $ (44,717) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Depreciation and amortization | 73,954 | 70,138 | ||
Amortization of non-cash interest | 4,721 | 18,573 | ||
Stock-based compensation | 13,007 | 2,235 | ||
Reserves on current assets | 8,716 | 33,148 | ||
Purchase of in-process research and development | — | 1,011 | ||
Net (gain) loss on strategic investments | (2,101) | 1,411 | ||
Net loss on change in fair value of derivatives | — | 12,301 | ||
Net loss from foreign currency adjustments | 13,402 | 5,255 | ||
Other non-cash adjustments | 13,206 | 2,431 | ||
Deferred income taxes | (2,942) | (5,712) | ||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||
Accounts receivable | (11,541) | 25,132 | ||
Inventory | (20,442) | (32,997) | ||
Prepaid expenses and other current assets | (1,589) | (2,727) | ||
Accounts payable and accrued liabilities | (5,244) | 1,319 | ||
Accrued payroll and related expenses | 1,902 | (44,388) | ||
Income taxes | 58 | (9,306) | ||
Net cash provided by operating activities | 79,396 | 33,107 | ||
Investing activities: | ||||
Acquisition of Simplify Medical, net of cash acquired | (149,463) | — | ||
Payment of contingent consideration for Simplify Medical | (45,850) | — | ||
Acquisitions and investments | (500) | — | ||
Purchases of intangible assets | (1,200) | (2,490) | ||
Purchases of property and equipment | (53,483) | (52,065) | ||
Purchases of marketable securities | — | (130,096) | ||
Proceeds from sales of marketable securities | 127,023 | — | ||
Proceeds from maturities of marketable securities | 46,000 | — | ||
Other investing activities | 180 | — | ||
Net cash used in investing activities | (77,293) | (184,651) | ||
Financing activities: | ||||
Proceeds from the issuance of common stock | 3,803 | 3,871 | ||
Purchases of treasury stock | (6,964) | (79,026) | ||
Payment of contingent consideration | (3) | (7,053) | ||
Proceeds from issuance of convertible debt, net of issuance costs | — | 874,404 | ||
Proceeds from sale of warrants | — | 93,915 | ||
Purchases of convertible note hedges | — | (147,825) | ||
Payments upon settlement of senior convertible notes | (649,426) | — | ||
Other financing activities | (671) | (2,307) | ||
Net cash (used in) provided by financing activities | (653,261) | 735,979 | ||
Effect of exchange rate changes on cash | (1,573) | (696) | ||
(Decrease) increase in cash, cash equivalents and restricted cash | (652,731) | 583,739 | ||
Cash, cash equivalents and restricted cash at beginning of period | 858,363 | 214,528 | ||
Cash, cash equivalents and restricted cash at end of period | $ 205,632 | $ 798,267 | ||
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SOURCE NuVasive, Inc.
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