Natus Medical Incorporated (NASDAQ:NTUS) (the
“Company” or “Natus”), a leading provider of medical device
solutions to screen, diagnose, and treat disorders affecting the
brain, neural pathways, and eight sensory nervous systems, today
announced financial results for the three months and full year
ended December 31, 2021.
For the fourth quarter ended December 31,
2021, the Company reported revenue of $128.7 million, an increase
of 8.4% compared to $118.7 million reported for the fourth quarter
2020. GAAP gross margin was 56.8% during the fourth quarter of 2021
compared to 55.3% in the fourth quarter 2020. GAAP net income was
$1.7 million, or $0.05 earnings per diluted share, compared with
GAAP net income of $5.2 million, or $0.15 earnings per diluted
share in the fourth quarter 2020.
Non-GAAP gross margin was 59.3% in the fourth
quarter 2021 compared to 58.1% reported for the fourth quarter of
2020. Non-GAAP earnings per diluted share was $0.47 for the fourth
quarter 2021, compared to $0.39 in the fourth quarter 2020.
Non-GAAP net income was $16.2 million in the fourth quarter 2021
compared to $13.1 million in the fourth quarter 2020.
For the full year ended December 31, 2021,
the Company reported revenue of $473.4 million, an increase of
13.9% compared to $415.7 million reported for the same period in
2020. GAAP gross margin was 57.8% vs. 52.1% reported for the same
period in 2020. GAAP net income was $13.2 million, or $0.39
earnings per diluted share, compared with GAAP net loss of $16.6
million, or $0.49 per share in the same period in 2020.
Non-GAAP gross margin was 60.0% in 2021 vs.
56.6% reported for the same period in 2020. Non-GAAP earnings per
diluted share was $1.20 for the full year ended December 31,
2021, compared to $0.39 in the same period in 2020. The Company
reported non-GAAP net income of $40.8 million for the full year
ended December 31, 2021, compared to prior year's non-GAAP net
income of $13.1 million.
“I would like to thank our Natus Teammates for
their efforts to deliver growth in both revenue and income in the
fourth quarter despite challenges from both Covid and supply chain
related constraints,” said Thomas J. Sullivan, President and Chief
Executive Officer of Natus. “Throughout the year we focused on
ensuring our products were available to clinicians and despite
incurring over $1.7 million in higher costs in the fourth quarter
alone, our non-GAAP earnings per share increased more than
200%.”
Mr. Sullivan continued, “I would like to
congratulate Dr. Christopher Chung, Natus Vice President of
Quality, Regulatory Affairs and Chief Medical Officer, who has
informed me of his decision to retire in April after a
twenty-two-year career at the company. Dr. Chung is a valued leader
at Natus and I am pleased that he will continue to support our Team
in a consultative role as our Chief Medical Officer through the end
of the year. I wish Chris and his family the best in this next
phase of his life.”
“As a result of a strategic review of our
markets, Natus will realign its portfolio and commercial
infrastructure to focus on the clinical areas of the Brain, Neural
Pathways, and eight Sensory Nervous Systems.” “We believe a focus
on higher value markets will position us for increased growth while
also enabling us to reduce complexity to improve our execution and
long-term margin expansion,” concluded Mr. Sullivan.
Financial Guidance
In the first quarter of 2022, Natus will realign
its commercial organization on the clinical focus areas of Brain,
Neural Pathways, and eight Sensory Nervous Systems. The Company
will transition to a matrix infrastructure of non-commercial
resources in support of innovation and entrepreneurial growth in
each clinical focus area in the coming months while reviewing its
cost structure. As a result of these changes, the Company is only
providing annual guidance at this point which excludes the impact
of any acquisitions or divestitures.
For the full year 2022, the Company's revenue is
expected to be between $491.0 million and $499.0 million and
non-GAAP earnings per share is expected to be between $1.36 and
$1.49. 2022 guidance assumes an incremental $16.0 million of
extraordinary costs associated with acquiring semiconductors and
other components outside of our normal supply chain due to their
constrained availability. Additional unforeseen constraints could
further impact our profitability. While these extraordinary costs
negatively impact profitability in the near term, a return to more
normal supply chain conditions could positively impact
profitability in the future. At this time, we do not anticipate
semiconductor and component constraints to impact revenue.
The Company's non-GAAP earnings per share
guidance excludes charges for amortization expense associated with
intangible assets from prior acquisitions, certain other expenses,
and related tax effect, which the Company expects to be
approximately $15.6 million for the year 2022, which the Company
expects will reduce GAAP earnings per share by approximately
$0.46.
Use of Non-GAAP Financial
Measures
The Company presents in this release its
non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP
gross margin and non-GAAP operating margin results which exclude
amortization expense associated with certain acquisition-related
intangibles, restructuring charges, certain discrete items, direct
costs of acquisitions, and the related tax effects. A
reconciliation between non-GAAP and GAAP financial measures is
included in this press release.
The Company believes that the presentation of
results excluding these charges or gains provides meaningful
supplemental information to both management and investors that is
indicative of the Company's core operating results and better
reflects the ongoing economics of the Company's operations. The
Company believes these non-GAAP financial measures facilitate
comparison of operating results across reporting periods.
Specifically, the Company excludes the following
charges, gains, and their related tax effects in the calculation of
non-GAAP net income, non-GAAP earnings per diluted share and
non-GAAP operating profit: 1) Non-cash amortization expense
associated with certain acquisition-related intangibles. The
charges reflect an estimate of the cost of acquired intangible
assets over their estimated useful lives. 2) Restructuring and
other non-recurring charges. The Company has over time completed
multiple acquisitions of other companies and businesses. Following
an acquisition, the Company will, as it determines appropriate,
initiate restructuring events to eliminate redundant costs.
Restructuring expenses, which are excluded in the non-GAAP items,
are exclusively related to permanent reductions in our workforce
and redundant facility closures. Other non-recurring costs are
associated with the transition of the executive management team.
These costs can include stock compensation from accelerated vesting
of stock, severance payouts and related payroll expenses. 3)
Certain discrete items. These items represent significant
infrequent charges or gains that management believes should be
viewed outside of normal operating results, and each significant
discrete transaction is evaluated to determine whether it should be
excluded from non-GAAP reporting. These items are specifically
identified when they occur. 4) Direct costs of acquisitions. These
are direct acquisition-related costs that occur when the Company
makes an acquisition, such as professional fees, due diligence
costs, and earn-out adjustments.
The Company applies GAAP methodologies in
computing its non-GAAP tax provision by determining the annual
expected effective tax rate after taking into account items
excluded for non-GAAP financial reporting purposes. The Company’s
non-GAAP tax expense and its non-GAAP effective tax rate are
generally higher than its GAAP tax expense and GAAP effective tax
rate because the income subject to taxes would be higher due to the
effect of the expenses excluded from non-GAAP financial reporting.
The nature of each quarterly discrete transaction will be evaluated
to determine whether it should be excluded from non-GAAP
reporting.
The Company's management uses these non-GAAP
financial measures in assessing the Company's performance and when
planning, forecasting, and analyzing future periods and the Company
believes that investors also benefit from being able to refer to
these non-GAAP financial measures along with the GAAP operating
results. These non-GAAP financial measures also facilitate
management's internal comparisons to the Company's historical
performance. The non-GAAP financial measures disclosed by the
Company should not be considered a substitute for or superior to
financial measures calculated in accordance with GAAP, and the
financial results calculated in accordance with GAAP and
reconciliations to those financial statements should be carefully
evaluated.
Conference Call
Natus has scheduled a conference call to discuss
this announcement beginning at 8:00 a.m. Eastern Time (5:00 a.m.
Pacific Time) tomorrow, February 25, 2022. Individuals interested
in listening to the conference call may do so by dialing
1-844-634-1441 for domestic callers, or 1-508-637-5658 for
international callers, and entering reservation code 6682846. A
telephone replay will be available for 48 hours following the
conclusion of the call by dialing 1-855-859-2056 for domestic
callers, or 1-404-537-3406 for international callers, and entering
reservation code 6682846. The conference call also will be
available real-time via the Internet at http://investor.natus.com,
and a recording of the call will be available on the Company’s Web
site for 90 days following the completion of the call. A companion
Investor Presentation will be posted to the Company's Web site at
7:00 a.m. Eastern Time tomorrow, February, 25, 2022.
About Natus Medical
Incorporated
Natus delivers innovative and trusted solutions to screen,
diagnose, and treat disorders affecting the brain, neural pathways,
and eight sensory nervous systems to advance the standard of care
and improve patient outcomes and quality of life. The Company
offers hardware, advanced software and algorithms, and consumables
that provide stimulus, acquire and monitor physiological signals,
and capture the body’s response. With sales in over 100 countries,
Natus is the clear worldwide leader in neurodiagnostics, pediatric
retinal imaging, and infant hearing screening, as well as a leading
company in hearing assessment, hearing instrument fitting, balance,
and intracranial pressure monitoring.
Additional information about Natus Medical can
be found at www.natus.com.
Forward-Looking Statements
This press release contains forward-looking
statements, which are generally statements that are not historical
facts. Forward-looking statements can be identified by the words
“expects”, “anticipates”, “believes”, “intends”, “estimates”,
“plans”, “will”, “outlook” and similar expressions. Forward-looking
statements are based on management's current plans, estimates,
assumptions and projections, and speak only as of the date they are
made. These statements relate to current estimates and assumptions
of our management as of the date of this press release and involve
known and unknown risks, uncertainties and other factors that may
cause actual results, levels of activity, performance, or
achievements to differ materially from those expressed or implied
by the forward-looking statements. Forward-looking statements are
only predictions and the actual events or results may differ
materially. Natus cannot provide any assurance that its future
results or the results implied by the forward-looking statements
will meet expectations. The Company's future results could differ
materially due to a number of factors, including supply chain
delays and constraints, the business, social and economic impact of
the COVID-19 pandemic on the Company's business and results of
operations, the ability of the Company to realize the anticipated
benefits from its strategic alignment, the Company's ability to
successfully pursue, acquire and integrate acquisitions, the demand
for Natus products and services, the impact of adverse global
economic conditions and changing governmental regulations,
including foreign exchange rate changes, on the Company's target
markets, the Company's ability to expand its sales in international
markets, the Company's ability to maintain current sales levels in
a mature domestic market, the Company's ability to control costs,
risks associated with bringing new products to market, and the
Company's ability to fulfill product orders on a timely basis, as
well as those factors identified under the heading Item 1A “Risk
Factors” in the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2020, Quarterly Report on Form 10-Q for the
periods ended March 31, 2021, June 30, 2021, September 30, 2021.
Natus disclaims any obligation to update information contained in
any forward looking statement, except as required by law.
Natus Medical IncorporatedDrew DaviesExecutive
Vice President and Chief Financial Officer(925)
223-6700InvestorRelations@Natus.com
|
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited) |
(in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, 2021 |
|
December 31, 2020 |
|
December 31, 2021 |
|
December 31, 2020 |
Revenue |
|
$ |
128,656 |
|
|
$ |
118,718 |
|
|
$ |
473,438 |
|
|
$ |
415,684 |
|
Cost of revenue |
|
|
53,996 |
|
|
|
51,247 |
|
|
|
193,015 |
|
|
|
185,912 |
|
Intangibles amortization |
|
|
1,617 |
|
|
|
1,801 |
|
|
|
6,743 |
|
|
|
13,241 |
|
Gross profit |
|
|
73,043 |
|
|
|
65,670 |
|
|
|
273,680 |
|
|
|
216,531 |
|
Gross profit margin |
|
|
56.8 |
% |
|
|
55.3 |
% |
|
|
57.8 |
% |
|
|
52.1 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
Marketing and selling |
|
|
29,295 |
|
|
|
27,715 |
|
|
|
116,014 |
|
|
|
107,282 |
|
Research and development |
|
|
13,750 |
|
|
|
14,722 |
|
|
|
56,306 |
|
|
|
61,296 |
|
General and administrative |
|
|
12,436 |
|
|
|
12,359 |
|
|
|
52,753 |
|
|
|
49,113 |
|
Intangibles amortization |
|
|
5,632 |
|
|
|
3,894 |
|
|
|
17,129 |
|
|
|
15,224 |
|
Restructuring |
|
|
7,230 |
|
|
|
1,966 |
|
|
|
7,699 |
|
|
|
3,809 |
|
Total operating expenses |
|
|
68,343 |
|
|
|
60,656 |
|
|
|
249,901 |
|
|
|
236,724 |
|
Income (loss) from
operations |
|
|
4,700 |
|
|
|
5,014 |
|
|
|
23,779 |
|
|
|
(20,193 |
) |
Interest expense |
|
|
(217 |
) |
|
|
(856 |
) |
|
|
(1,872 |
) |
|
|
(3,656 |
) |
Other income (expense),
net |
|
|
(852 |
) |
|
|
2,182 |
|
|
|
(2,552 |
) |
|
|
1,784 |
|
Income (loss) before provision
for (benefit from) income tax |
|
|
3,631 |
|
|
|
6,340 |
|
|
|
19,355 |
|
|
|
(22,065 |
) |
Provision for (benefit from)
income tax |
|
|
1,886 |
|
|
|
1,135 |
|
|
|
6,178 |
|
|
|
(5,452 |
) |
Net income (loss) |
|
$ |
1,745 |
|
|
$ |
5,205 |
|
|
$ |
13,177 |
|
|
$ |
(16,613 |
) |
Net income (loss) per
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.05 |
|
|
$ |
0.15 |
|
|
$ |
0.39 |
|
|
$ |
(0.49 |
) |
Diluted |
|
$ |
0.05 |
|
|
$ |
0.15 |
|
|
$ |
0.39 |
|
|
$ |
(0.49 |
) |
Weighted-average shares: |
|
|
|
|
|
|
|
|
Basic |
|
|
33,799 |
|
|
|
33,861 |
|
|
|
33,670 |
|
|
|
33,562 |
|
Diluted |
|
|
34,122 |
|
|
|
33,903 |
|
|
|
33,974 |
|
|
|
33,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited) |
(in thousands) |
|
|
|
|
|
December 31, |
|
December 31, |
|
2021 |
|
2020 |
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
Cash and investments |
$ |
75,595 |
|
$ |
82,082 |
Accounts receivable |
|
111,760 |
|
|
93,133 |
Inventories |
|
67,745 |
|
|
75,650 |
Other current assets |
|
22,191 |
|
|
20,837 |
Total current assets |
|
277,291 |
|
|
271,702 |
|
|
|
|
Property and equipment |
|
21,783 |
|
|
24,516 |
Operating lease right-of-use assets |
|
9,288 |
|
|
11,669 |
Goodwill and intangible assets |
|
214,170 |
|
|
244,040 |
Deferred income tax |
|
23,161 |
|
|
27,563 |
Other assets |
|
18,595 |
|
|
20,904 |
Total assets |
$ |
564,288 |
|
$ |
600,394 |
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
36,405 |
|
$ |
23,429 |
Current portion of long-term debt |
|
— |
|
|
50,000 |
Accrued liabilities |
|
48,135 |
|
|
44,236 |
Deferred revenue |
|
25,097 |
|
|
21,308 |
Current portion of operating lease liabilities |
|
4,964 |
|
|
6,779 |
Total current liabilities |
|
114,601 |
|
|
145,752 |
|
|
|
|
Long-term debt |
|
— |
|
|
5,840 |
Deferred income tax |
|
1,133 |
|
|
10,298 |
Operating lease liabilities |
|
6,567 |
|
|
8,959 |
Other long-term liabilities |
|
17,237 |
|
|
18,451 |
Total liabilities |
|
139,538 |
|
|
189,300 |
Total stockholders’
equity |
|
424,750 |
|
|
411,094 |
Total liabilities and
stockholders’ equity |
$ |
564,288 |
|
$ |
600,394 |
|
|
|
|
|
|
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited) |
(in thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31,2021 |
|
December 31,2020 |
|
December 31,2021 |
|
December 31, 2020 |
Operating activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
1,744 |
|
|
$ |
5,205 |
|
|
$ |
13,177 |
|
|
$ |
(16,613 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Provision for losses on accounts receivable |
|
|
(92 |
) |
|
|
32 |
|
|
|
181 |
|
|
|
1,190 |
|
Depreciation and amortization |
|
|
6,754 |
|
|
|
7,126 |
|
|
|
28,091 |
|
|
|
28,115 |
|
Loss on equity method investment adjustment |
|
|
159 |
|
|
|
133 |
|
|
|
602 |
|
|
|
133 |
|
(Gain) loss on disposal of property and equipment |
|
|
90 |
|
|
|
119 |
|
|
|
(1,426 |
) |
|
|
268 |
|
Impairment of intangible assets |
|
|
2,004 |
|
|
|
— |
|
|
|
2,004 |
|
|
|
6,678 |
|
Impairment of property and equipment |
|
|
279 |
|
|
|
— |
|
|
|
279 |
|
|
|
— |
|
Warranty reserve |
|
|
2,466 |
|
|
|
880 |
|
|
|
3,989 |
|
|
|
2,009 |
|
Share-based compensation |
|
|
5,889 |
|
|
|
2,507 |
|
|
|
14,161 |
|
|
|
9,566 |
|
Loss on commencement of sales-type leases |
|
|
— |
|
|
|
20 |
|
|
|
3 |
|
|
|
1,881 |
|
Non cash lease expense |
|
|
— |
|
|
|
1,353 |
|
|
|
— |
|
|
|
1,353 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(12,683 |
) |
|
|
(12,716 |
) |
|
|
(13,111 |
) |
|
|
17,651 |
|
Inventories |
|
|
1,175 |
|
|
|
8,356 |
|
|
|
4,830 |
|
|
|
1,939 |
|
Prepaid expenses and other assets |
|
|
1,998 |
|
|
|
9,021 |
|
|
|
(1,880 |
) |
|
|
(1,055 |
) |
Accounts payable |
|
|
8,301 |
|
|
|
(4,504 |
) |
|
|
13,530 |
|
|
|
(4,523 |
) |
Accrued liabilities |
|
|
315 |
|
|
|
417 |
|
|
|
(507 |
) |
|
|
(13,427 |
) |
Deferred revenue |
|
|
(171 |
) |
|
|
1,779 |
|
|
|
4,458 |
|
|
|
838 |
|
Deferred income tax |
|
|
(5,446 |
) |
|
|
(3,403 |
) |
|
|
(4,386 |
) |
|
|
(1,577 |
) |
Net cash provided by operating
activities |
|
|
12,782 |
|
|
|
16,325 |
|
|
|
63,995 |
|
|
|
34,426 |
|
Investing activities: |
|
|
|
|
|
|
|
|
Acquisition of businesses, net of cash acquired |
|
|
— |
|
|
|
(1,997 |
) |
|
|
— |
|
|
|
(1,997 |
) |
Purchase of property and equipment |
|
|
(671 |
) |
|
|
(992 |
) |
|
|
(3,620 |
) |
|
|
(8,609 |
) |
Purchase of equity investments |
|
|
— |
|
|
|
(1,000 |
) |
|
|
(1,000 |
) |
|
|
(2,000 |
) |
Proceeds from sale of property and equipment |
|
|
— |
|
|
|
— |
|
|
|
2,674 |
|
|
|
— |
|
Net cash used in investing
activities |
|
|
(671 |
) |
|
|
(3,989 |
) |
|
|
(1,946 |
) |
|
|
(12,606 |
) |
Financing activities: |
|
|
|
|
|
|
|
|
Proceeds from stock option exercises and ESPP |
|
|
243 |
|
|
|
656 |
|
|
|
855 |
|
|
|
1,314 |
|
Repurchase of common stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,495 |
) |
Taxes paid related to settlement of equity awards |
|
|
(2,853 |
) |
|
|
(58 |
) |
|
|
(4,107 |
) |
|
|
(1,994 |
) |
Deferred debt issuance costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,175 |
) |
Principal payments of financing lease liability |
|
|
(84 |
) |
|
|
(112 |
) |
|
|
(410 |
) |
|
|
(527 |
) |
Proceeds from long-term borrowings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
60,000 |
|
Payments on borrowings |
|
|
— |
|
|
|
(10,000 |
) |
|
|
(57,000 |
) |
|
|
(58,000 |
) |
Net cash used in financing
activities |
|
|
(2,694 |
) |
|
|
(9,514 |
) |
|
|
(60,662 |
) |
|
|
(10,877 |
) |
Exchange
rate changes effect on cash and cash equivalents |
|
|
(2,601 |
) |
|
|
4,724 |
|
|
|
(7,874 |
) |
|
|
7,842 |
|
Net
increase (decrease) in cash and cash equivalents |
|
|
6,816 |
|
|
|
7,546 |
|
|
|
(6,487 |
) |
|
|
18,785 |
|
Cash and
cash equivalents, beginning of period |
|
|
68,779 |
|
|
|
74,536 |
|
|
|
82,082 |
|
|
|
63,297 |
|
Cash and
cash equivalents, end of period |
|
$ |
75,595 |
|
|
$ |
82,082 |
|
|
$ |
75,595 |
|
|
$ |
82,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP ADJUSTMENTS
(unaudited) |
(in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, 2021 |
|
December 31, 2020 |
|
December 31, 2021 |
|
December 31, 2020 |
GAAP based
results: |
|
|
|
|
|
|
|
|
Income (loss) before provision for income tax |
|
$ |
3,631 |
|
|
$ |
6,340 |
|
|
$ |
19,355 |
|
|
$ |
(22,065 |
) |
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
Intangibles amortization
(COGS) |
|
|
1,617 |
|
|
|
1,801 |
|
|
|
6,743 |
|
|
|
13,241 |
|
Recall accrual and remediation
efforts (COGS) |
|
|
— |
|
|
|
(63 |
) |
|
|
— |
|
|
|
(428 |
) |
Restructuring and other
non-recurring costs (COGS) |
|
|
1,700 |
|
|
|
1,615 |
|
|
|
4,069 |
|
|
|
5,849 |
|
COVID-19 relief (COGS) |
|
|
(21 |
) |
|
|
— |
|
|
|
(505 |
) |
|
|
— |
|
Intangibles amortization
(OPEX) |
|
|
5,632 |
|
|
|
3,894 |
|
|
|
17,129 |
|
|
|
15,224 |
|
Direct costs of acquisitions
(OPEX) |
|
|
— |
|
|
|
112 |
|
|
|
21 |
|
|
|
112 |
|
Restructuring and other
non-recurring costs (OPEX) |
|
|
7,976 |
|
|
|
3,033 |
|
|
|
9,077 |
|
|
|
4,793 |
|
COVID-19 relief (OPEX) |
|
|
(266 |
) |
|
|
— |
|
|
|
(3,391 |
) |
|
|
— |
|
Restructuring and other
non-recurring costs (OI&E) |
|
|
— |
|
|
|
206 |
|
|
|
(80 |
) |
|
|
206 |
|
Non-GAAP income (loss) before
provision for (benefit from) income tax |
|
|
20,269 |
|
|
|
16,938 |
|
|
|
52,418 |
|
|
|
16,932 |
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit),
as adjusted |
|
$ |
4,077 |
|
|
$ |
3,885 |
|
|
$ |
11,631 |
|
|
$ |
3,790 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income |
|
$ |
16,192 |
|
|
$ |
13,053 |
|
|
$ |
40,787 |
|
|
$ |
13,142 |
|
Non-GAAP earnings per
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.48 |
|
|
$ |
0.39 |
|
|
$ |
1.21 |
|
|
$ |
0.39 |
|
Diluted |
|
$ |
0.47 |
|
|
$ |
0.39 |
|
|
$ |
1.20 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used
to compute |
|
|
|
|
|
|
|
|
Basic non-GAAP earnings per share |
|
|
33,799 |
|
|
|
33,861 |
|
|
|
33,670 |
|
|
|
33,562 |
|
Diluted non-GAAP earnings per share |
|
|
34,122 |
|
|
|
33,903 |
|
|
|
33,974 |
|
|
|
33,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP ADJUSTMENTS
(unaudited) |
(in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, 2021 |
|
December 31, 2020 |
|
December 31, 2021 |
|
December 31, 2020 |
GAAP Gross Profit |
|
$ |
73,043 |
|
|
$ |
65,670 |
|
|
$ |
273,680 |
|
|
$ |
216,531 |
|
Amortization of
intangibles |
|
|
1,617 |
|
|
|
1,801 |
|
|
|
6,743 |
|
|
|
13,241 |
|
Recall accrual and remediation
efforts |
|
|
— |
|
|
|
(63 |
) |
|
|
— |
|
|
|
(428 |
) |
COVID-19 Relief |
|
|
(21 |
) |
|
|
— |
|
|
|
(505 |
) |
|
|
— |
|
Restructuring and other
non-recurring costs |
|
|
1,700 |
|
|
|
1,615 |
|
|
|
4,069 |
|
|
|
5,849 |
|
Non-GAAP Gross Profit |
|
$ |
76,339 |
|
|
$ |
69,023 |
|
|
$ |
283,987 |
|
|
$ |
235,193 |
|
Non-GAAP Gross
Margin |
|
|
59.3 |
% |
|
|
58.1 |
% |
|
|
60.0 |
% |
|
|
56.6 |
% |
|
|
|
|
|
|
|
|
|
GAAP Operating Income
(Loss) |
|
$ |
4,700 |
|
|
$ |
5,014 |
|
|
$ |
23,779 |
|
|
$ |
(20,193 |
) |
Amortization of
intangibles |
|
|
7,249 |
|
|
|
5,695 |
|
|
|
23,872 |
|
|
|
28,465 |
|
COVID-19 Relief |
|
|
(287 |
) |
|
|
— |
|
|
|
(3,896 |
) |
|
|
— |
|
Recall accrual and remediation
efforts |
|
|
— |
|
|
|
(63 |
) |
|
|
— |
|
|
|
(428 |
) |
Restructuring and other
non-recurring costs |
|
|
9,676 |
|
|
|
4,648 |
|
|
|
13,146 |
|
|
|
10,642 |
|
Direct cost of
acquisitions |
|
|
— |
|
|
|
112 |
|
|
|
21 |
|
|
|
112 |
|
Non-GAAP Operating Income |
|
$ |
21,338 |
|
|
$ |
15,406 |
|
|
$ |
56,922 |
|
|
$ |
18,598 |
|
Non-GAAP Operating
Margin |
|
|
16.6 |
% |
|
|
13.0 |
% |
|
|
12.0 |
% |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
GAAP Income Tax Expense
(Benefit) |
|
$ |
1,886 |
|
|
$ |
1,135 |
|
|
$ |
6,178 |
|
|
$ |
(5,452 |
) |
Effect of accumulated change
of pretax income |
|
|
2,921 |
|
|
|
2,237 |
|
|
|
7,336 |
|
|
|
8,729 |
|
Effect of change in annual
expected tax rate |
|
|
(2,289 |
) |
|
|
(139 |
) |
|
|
(2,903 |
) |
|
|
(139 |
) |
Difference in GAAP vs Non-GAAP
discrete |
|
|
539 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Restructuring and other
expenses |
|
|
1,020 |
|
|
|
652 |
|
|
|
1,020 |
|
|
|
652 |
|
Non-GAAP Income Tax Expense
(Benefit) |
|
$ |
4,077 |
|
|
$ |
3,885 |
|
|
$ |
11,631 |
|
|
$ |
3,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
|
|
|
December 31, 2022 |
|
|
|
|
|
|
GAAP EPS Guidance |
|
$0.90 - $1.03 |
|
|
|
|
|
|
Amortization of
intangibles |
|
0.53 |
|
|
|
|
|
|
Tax effect |
|
(0.07) |
|
|
|
|
|
|
Non-GAAP EPS Guidance |
|
$1.36 - $1.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES |
GROSS MARGIN BY END MARKETS (unaudited) |
(in thousands) |
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, 2021 |
|
December 31, 2020 |
|
December 31, 2021 |
|
December 31, 2020 |
Neuro: |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
75,213 |
|
|
$ |
68,060 |
|
|
$ |
284,767 |
|
|
$ |
235,739 |
|
Cost of revenue |
|
|
30,330 |
|
|
|
29,301 |
|
|
|
112,384 |
|
|
|
98,745 |
|
Intangibles amortization |
|
|
750 |
|
|
|
828 |
|
|
|
3,024 |
|
|
|
9,697 |
|
Gross profit |
|
$ |
44,133 |
|
|
$ |
37,931 |
|
|
$ |
169,359 |
|
|
$ |
127,297 |
|
Gross profit margin |
|
|
58.7 |
% |
|
|
55.7 |
% |
|
|
59.5 |
% |
|
|
54.0 |
% |
|
|
|
|
|
|
|
|
|
Newborn
Care: |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
28,261 |
|
|
$ |
28,165 |
|
|
$ |
105,023 |
|
|
$ |
105,024 |
|
Cost of revenue |
|
|
12,776 |
|
|
|
10,763 |
|
|
|
43,967 |
|
|
|
46,277 |
|
Intangibles amortization |
|
|
— |
|
|
|
67 |
|
|
|
135 |
|
|
|
260 |
|
Gross profit |
|
$ |
15,485 |
|
|
$ |
17,335 |
|
|
$ |
60,921 |
|
|
$ |
58,487 |
|
Gross profit margin |
|
|
54.8 |
% |
|
|
61.5 |
% |
|
|
58.0 |
% |
|
|
55.7 |
% |
|
|
|
|
|
|
|
|
|
Hearing &
Balance: |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
25,182 |
|
|
$ |
22,493 |
|
|
$ |
83,648 |
|
|
$ |
74,921 |
|
Cost of revenue |
|
|
10,890 |
|
|
|
11,183 |
|
|
|
36,664 |
|
|
|
40,890 |
|
Intangibles amortization |
|
|
867 |
|
|
|
906 |
|
|
|
3,584 |
|
|
|
3,284 |
|
Gross profit |
|
$ |
13,425 |
|
|
$ |
10,404 |
|
|
$ |
43,400 |
|
|
$ |
30,747 |
|
Gross profit margin |
|
|
53.3 |
% |
|
|
46.3 |
% |
|
|
51.9 |
% |
|
|
41.0 |
% |
|
|
|
|
|
|
|
|
|
Consolidated: |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
128,656 |
|
|
$ |
118,718 |
|
|
$ |
473,438 |
|
|
$ |
415,684 |
|
Cost of revenue |
|
|
53,996 |
|
|
|
51,247 |
|
|
|
193,015 |
|
|
|
185,912 |
|
Intangibles amortization |
|
|
1,617 |
|
|
|
1,801 |
|
|
|
6,743 |
|
|
|
13,241 |
|
Gross profit |
|
$ |
73,043 |
|
|
$ |
65,670 |
|
|
$ |
273,680 |
|
|
$ |
216,531 |
|
Gross profit margin |
|
|
56.8 |
% |
|
|
55.3 |
% |
|
|
57.8 |
% |
|
|
52.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES |
|
RECONCILIATION OF NON-GAAP GROSS MARGIN BY END MARKETS
(unaudited) |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, 2021 |
|
December 31, 2020 |
|
December 31, 2021 |
|
December 31, 2020 |
Neuro: |
|
|
|
|
|
|
|
|
GAAP Gross Profit |
|
$ |
44,133 |
|
|
$ |
37,931 |
|
|
$ |
169,359 |
|
|
$ |
127,297 |
|
Amortization of
intangibles |
|
|
750 |
|
|
|
828 |
|
|
|
3,024 |
|
|
|
9,697 |
|
Direct costs of
acquisitions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
COVID-19 Relief |
|
|
(7 |
) |
|
|
— |
|
|
|
(156 |
) |
|
|
— |
|
Restructuring and other
non-recurring costs |
|
|
1,541 |
|
|
|
511 |
|
|
|
3,266 |
|
|
|
2,804 |
|
Non-GAAP Gross Profit |
|
$ |
46,417 |
|
|
$ |
39,270 |
|
|
$ |
175,493 |
|
|
$ |
139,798 |
|
Non-GAAP Gross
Margin |
|
|
61.7 |
% |
|
|
57.7 |
% |
|
|
61.6 |
% |
|
|
59.3 |
% |
|
|
|
|
|
|
|
|
|
Newborn
Care: |
|
|
|
|
|
|
|
|
GAAP Gross Profit |
|
$ |
15,485 |
|
|
$ |
17,335 |
|
|
$ |
60,921 |
|
|
$ |
58,487 |
|
Amortization of
intangibles |
|
|
— |
|
|
|
67 |
|
|
|
135 |
|
|
|
260 |
|
Recall accrual and remediation
efforts |
|
|
— |
|
|
|
(63 |
) |
|
|
— |
|
|
|
(428 |
) |
Restructuring and other
non-recurring costs |
|
|
159 |
|
|
|
753 |
|
|
|
522 |
|
|
|
1,075 |
|
Non-GAAP Gross Profit |
|
$ |
15,644 |
|
|
$ |
18,092 |
|
|
$ |
61,578 |
|
|
$ |
59,394 |
|
Non-GAAP Gross
Margin |
|
|
55.4 |
% |
|
|
64.2 |
% |
|
|
58.6 |
% |
|
|
56.6 |
% |
|
|
|
|
|
|
|
|
|
Hearing &
Balance: |
|
|
|
|
|
|
|
|
GAAP Gross Profit |
|
$ |
13,425 |
|
|
$ |
10,404 |
|
|
$ |
43,400 |
|
|
$ |
30,747 |
|
Amortization of
intangibles |
|
|
867 |
|
|
|
906 |
|
|
|
3,584 |
|
|
|
3,284 |
|
COVID-19 Relief |
|
|
(14 |
) |
|
|
— |
|
|
|
(349 |
) |
|
|
— |
|
Restructuring and other
non-recurring costs |
|
|
— |
|
|
|
351 |
|
|
|
281 |
|
|
|
1,970 |
|
Non-GAAP Gross Profit |
|
$ |
14,278 |
|
|
$ |
11,661 |
|
|
$ |
46,916 |
|
|
$ |
36,001 |
|
Non-GAAP Gross
Margin |
|
|
56.7 |
% |
|
|
51.8 |
% |
|
|
56.1 |
% |
|
|
48.1 |
% |
|
|
|
|
|
|
|
|
|
Consolidated: |
|
|
|
|
|
|
|
|
GAAP Gross Profit |
|
$ |
73,043 |
|
|
$ |
65,670 |
|
|
$ |
273,680 |
|
|
$ |
216,531 |
|
Amortization of
intangibles |
|
|
1,617 |
|
|
|
1,801 |
|
|
|
6,743 |
|
|
|
13,241 |
|
COVID-19 Relief |
|
|
(21 |
) |
|
|
— |
|
|
|
(505 |
) |
|
|
— |
|
Recall accrual and remediation
efforts |
|
|
— |
|
|
|
(63 |
) |
|
|
— |
|
|
|
(428 |
) |
Restructuring and other
non-recurring costs |
|
|
1,700 |
|
|
|
1,615 |
|
|
|
4,069 |
|
|
|
5,849 |
|
Non-GAAP Gross Profit |
|
$ |
76,339 |
|
|
$ |
69,023 |
|
|
$ |
283,987 |
|
|
$ |
235,193 |
|
Non-GAAP Gross
Margin |
|
|
59.3 |
% |
|
|
58.1 |
% |
|
|
60.0 |
% |
|
|
56.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES |
GEOGRAPHIC REVENUE (unaudited) |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, 2021 |
|
December 31, 2020 |
|
December 31, 2021 |
|
December 31, 2020 |
Consolidated
Revenue: |
|
|
|
|
|
|
|
|
United States |
|
$ |
75,355 |
|
|
$ |
69,317 |
|
|
$ |
285,979 |
|
|
$ |
252,496 |
|
International |
|
|
53,301 |
|
|
|
49,401 |
|
|
|
187,459 |
|
|
|
163,188 |
|
Totals |
|
$ |
128,656 |
|
|
$ |
118,718 |
|
|
$ |
473,438 |
|
|
$ |
415,684 |
|
|
|
|
|
|
|
|
|
|
United States |
|
|
59 |
% |
|
|
58 |
% |
|
|
60 |
% |
|
|
61 |
% |
International |
|
|
41 |
% |
|
|
42 |
% |
|
|
40 |
% |
|
|
39 |
% |
Totals |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
Grafico Azioni Natus Medical (NASDAQ:NTUS)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Natus Medical (NASDAQ:NTUS)
Storico
Da Giu 2023 a Giu 2024