AtriCure, Inc. (Nasdaq: ATRC), a leading innovator in surgical treatments and therapies for atrial fibrillation (Afib), left atrial appendage (LAA) management and post-operative pain management, today announced first quarter 2022 financial results.
“Our team delivered exceptional first quarter performance, with broad-based growth across all key products,” said Michael Carrel, President and Chief Executive Officer of AtriCure. “With EPi-Sense® adoption building, continued expansion of our Cryo Nerve Block team, and the full commercial launch of our EnCompass® clamp now underway, we are confident in the strength of our portfolio today while we invest in additional long-term drivers for sustained growth.”
First Quarter 2022 Financial Results
Revenue for the first quarter 2022 was $74.6 million, an increase of 25.8% (an increase of 26.7% on a constant currency basis) over first quarter 2021 revenue. U.S. revenue was $62.3 million, an increase of $12.0 million or 23.8%, compared to first quarter 2021 revenue. U.S. revenue growth was driven by sales across key product lines, notably the cryoSPHERE® probe and AtriClip® Flex-V devices. International revenue increased $3.3 million or 37.2% (an increase of 43.1% on a constant currency basis) to $12.3 million, reflecting growth in most major markets and across product lines. On a sequential basis, worldwide revenue for the first quarter 2022 increased approximately 1.9% over fourth quarter 2021.
Gross profit for the first quarter 2022 was $55.6 million compared to $44.5 million for the first quarter 2021. Gross margin was 74.5% and 75.1% for the first quarters 2022 and 2021 respectively, reflecting geographic and product mix, as well as increasing costs. Loss from operations for the first quarter 2022 was $14.2 million, compared to $15.9 million for the first quarter 2021. Basic and diluted net loss per share was $0.33 for the first quarter 2022, compared to $0.38 for the first quarter 2021.
Adjusted EBITDA was negative for the first quarter 2022 at $4.2 million, compared to negative $4.7 million for first quarter of 2021. Adjusted loss per share for the first quarter 2022 was $0.33 compared to $0.32 for the first quarter 2021.
Constant currency revenue, adjusted EBITDA and adjusted loss per share are non-GAAP measures. We discuss these non-GAAP measures and provide reconciliations to GAAP measures later in this release.
2022 Financial Guidance
Full year 2022 revenue is projected to be approximately $318 million to $330 million, reflecting growth of approximately 16% to 20% over full year 2021. Management continues to expect full year 2022 adjusted EBITDA to be a loss of approximately $2 million to $4 million, and the full year 2022 adjusted loss per share of approximately $1.07 to $1.12.
Conference Call
AtriCure will host a conference call at 4:30 p.m. Eastern Time on Tuesday, May 3, 2022 to discuss its first quarter 2022 financial results. The call may be accessed through an operator by calling (844) 884-9951 for domestic callers and (661) 378-9661 for international callers using conference ID number 6061899. A live audio webcast of the presentation may be accessed by visiting the Investors page of AtriCure’s corporate website at ir.atricure.com. A replay of the presentation will be available for 90 days following the presentation.
About AtriCure
AtriCure, Inc. provides innovative technologies for the treatment of Afib and related conditions. Afib affects more than 33 million people worldwide. Electrophysiologists and cardiothoracic surgeons around the globe use AtriCure technologies for the treatment of Afib and reduction of Afib related complications. AtriCure’s Isolator® Synergy™ Ablation System is the first medical device to receive FDA approval for the treatment of persistent Afib. AtriCure’s AtriClip® Left Atrial Appendage Exclusion System products are the most widely sold LAA management devices worldwide. AtriCure’s Hybrid AF™ Therapy is a minimally invasive procedure that provides a lasting solution for long-standing persistent Afib patients. AtriCure’s cryoICE cryoSPHERE® probe is cleared for temporary ablation of peripheral nerves to block pain, providing pain relief in cardiac and thoracic procedures. For more information, visit AtriCure.com or follow us on Twitter @AtriCure.
Forward-Looking Statements
This press release contains “forward-looking statements”– that is, statements related to future events that by their nature address matters that are uncertain. This press release also includes forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially. For details on the uncertainties that may cause our actual results to be materially different than those expressed in our forward-looking statements, visit http://www.atricure.com/forward-looking-statements as well as our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q which contain risk factors. Except where otherwise noted, the information contained in this release and the related attachment is as of May 3, 2022. We assume no obligation to update any forward-looking statements contained in this release and the related attachment as a result of new information or future events or developments, except as may be required by law.
Use of Non-GAAP Financial Measures
To supplement AtriCure’s condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, AtriCure provides certain non-GAAP financial measures in this release as supplemental financial metrics.
Revenue reported on a constant currency basis is a non-GAAP measure, calculated by applying previous period foreign currency exchange rates, which are determined by the average daily Euro to Dollar exchange rate, to each of the comparable periods. Management analyzes revenue on a constant currency basis to better measure the comparability of results between periods. Because changes in foreign currency exchange rates have a non-operating impact on revenue, the Company believes that evaluating growth in revenue on a constant currency basis provides an additional and meaningful assessment of revenue to both management and investors.
Adjusted EBITDA is calculated as net income (loss) before other income/expense (including interest), income tax expense, depreciation and amortization expense, share-based compensation expense, acquisition costs, legal settlement costs, impairment of intangible asset and change in fair value of contingent consideration liabilities.
Management believes in order to properly understand short-term and long-term financial trends, investors may wish to consider the impact of these excluded items in addition to GAAP measures. The excluded items vary in frequency and/or impact on our continuing results of operations and management believes that the excluded items are typically not reflective of our ongoing core business operations and financial condition. Further, management uses adjusted EBITDA for both strategic and annual operating planning. A reconciliation of adjusted EBITDA reported in this release to the most comparable GAAP measure for the respective periods appears in the table captioned “Reconciliation of Non-GAAP Adjusted Loss (Adjusted EBITDA)” later in this release.
Adjusted income (loss) per share is a non-GAAP measure which calculates the net income (loss) per share before non-cash adjustments in fair value of contingent consideration liabilities, impairment of intangible asset and legal settlement costs. A reconciliation of adjusted income (loss) per share reported in this release to the most comparable GAAP measure for the respective periods appears in the table captioned “Reconciliation of Non-GAAP Adjusted Loss Per Share” later in this release.
The non-GAAP financial measures used by AtriCure may not be the same or calculated in the same manner as those used and calculated by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for AtriCure’s financial results prepared and reported in accordance with GAAP. We urge investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financials measures included in this press release, and not to rely on any single financial measure to evaluate our business.
ATRICURE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Amounts) (Unaudited)
|
|||||||
|
Three Months Ended
|
||||||
|
2022 |
|
2021 |
||||
United States Revenue: |
|
|
|
||||
Open ablation |
$ |
18,974 |
|
|
$ |
17,439 |
|
Minimally invasive ablation |
|
8,615 |
|
|
|
8,385 |
|
Pain management |
|
8,014 |
|
|
|
3,898 |
|
Total ablation |
|
35,603 |
|
|
|
29,722 |
|
Appendage management |
|
26,669 |
|
|
|
20,587 |
|
Total United States |
|
62,272 |
|
|
|
50,309 |
|
International Revenue: |
|
|
|
||||
Open ablation |
|
6,492 |
|
|
|
4,434 |
|
Minimally invasive ablation |
|
1,533 |
|
|
|
1,274 |
|
Pain management |
|
140 |
|
|
|
— |
|
Total ablation |
|
8,165 |
|
|
|
5,708 |
|
Appendage management |
|
4,139 |
|
|
|
3,258 |
|
Total International |
|
12,304 |
|
|
|
8,966 |
|
Total revenue |
|
74,576 |
|
|
|
59,275 |
|
Cost of revenue |
|
18,981 |
|
|
|
14,735 |
|
Gross profit |
|
55,595 |
|
|
|
44,540 |
|
Operating expenses: |
|
|
|
||||
Research and development expenses |
|
13,629 |
|
|
|
11,217 |
|
Selling, general and administrative expenses |
|
56,116 |
|
|
|
49,208 |
|
Total operating expenses |
|
69,745 |
|
|
|
60,425 |
|
Loss from operations |
|
(14,150 |
) |
|
|
(15,885 |
) |
Other expense, net |
|
(977 |
) |
|
|
(1,001 |
) |
Loss before income tax expense |
|
(15,127 |
) |
|
|
(16,886 |
) |
Income tax expense |
|
56 |
|
|
|
31 |
|
Net loss |
$ |
(15,183 |
) |
|
$ |
(16,917 |
) |
Basic and diluted net loss per share |
$ |
(0.33 |
) |
|
$ |
(0.38 |
) |
Weighted average shares used in computing net loss per share: |
|
|
|
||||
Basic and diluted |
|
45,528 |
|
|
|
44,632 |
|
ATRICURE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands) (Unaudited)
|
|||||||
|
March 31,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash, cash equivalents, and short-term investments |
$ |
111,397 |
|
|
$ |
119,090 |
|
Accounts receivable, net |
|
40,878 |
|
|
|
33,021 |
|
Inventories |
|
40,762 |
|
|
|
38,964 |
|
Prepaid and other current assets |
|
6,570 |
|
|
|
5,001 |
|
Total current assets |
|
199,607 |
|
|
|
196,076 |
|
Long-term investments |
|
70,514 |
|
|
|
104,338 |
|
Property and equipment, net |
|
32,867 |
|
|
|
31,409 |
|
Operating lease right-of-use assets |
|
4,509 |
|
|
|
4,761 |
|
Goodwill and intangible assets, net |
|
276,801 |
|
|
|
277,773 |
|
Other noncurrent assets |
|
685 |
|
|
|
955 |
|
Total assets |
$ |
584,983 |
|
|
$ |
615,312 |
|
Liabilities and Stockholders' Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
45,615 |
|
|
$ |
54,689 |
|
Other current liabilities and current maturities of leases |
|
1,760 |
|
|
|
1,756 |
|
Total current liabilities |
|
47,375 |
|
|
|
56,445 |
|
Long-term debt |
|
59,848 |
|
|
|
59,741 |
|
Finance lease liabilities |
|
9,845 |
|
|
|
10,082 |
|
Operating lease liabilities |
|
3,865 |
|
|
|
4,068 |
|
Other noncurrent liabilities |
|
1,225 |
|
|
|
1,220 |
|
Total liabilities |
|
122,158 |
|
|
|
131,556 |
|
Stockholders' equity: |
|
|
|
||||
Common stock |
|
46 |
|
|
|
46 |
|
Additional paid-in capital |
|
761,580 |
|
|
|
764,811 |
|
Accumulated other comprehensive loss |
|
(3,465 |
) |
|
|
(948 |
) |
Accumulated deficit |
|
(295,336 |
) |
|
|
(280,153 |
) |
Total stockholders' equity |
|
462,825 |
|
|
|
483,756 |
|
Total liabilities and stockholders' equity |
$ |
584,983 |
|
|
$ |
615,312 |
|
ATRICURE, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS (In Thousands) (Unaudited)
|
|||||||
Reconciliation of Non-GAAP Adjusted Loss (Adjusted EBITDA) |
|||||||
|
Three Months Ended
|
||||||
|
2022 |
|
2021 |
||||
Net loss, as reported |
$ |
(15,183 |
) |
|
$ |
(16,917 |
) |
Income tax expense |
|
56 |
|
|
|
31 |
|
Other expense, net |
|
977 |
|
|
|
1,001 |
|
Depreciation and amortization expense |
|
2,867 |
|
|
|
2,122 |
|
Share-based compensation expense |
|
7,049 |
|
|
|
6,604 |
|
Change in fair value of contingent consideration |
|
— |
|
|
|
2,500 |
|
Non-GAAP adjusted loss (adjusted EBITDA) |
$ |
(4,234 |
) |
|
$ |
(4,659 |
) |
Reconciliation of Non-GAAP Adjusted Loss Per Share |
|||||||
|
Three Months Ended
|
||||||
|
2022 |
|
2021 |
||||
Net loss, as reported |
$ |
(15,183 |
) |
|
$ |
(16,917 |
) |
Change in fair value of contingent consideration |
|
— |
|
|
|
2,500 |
|
Non-GAAP adjusted net loss |
$ |
(15,183 |
) |
|
$ |
(14,417 |
) |
Basic and diluted adjusted net loss per share |
$ |
(0.33 |
) |
|
$ |
(0.32 |
) |
Weighted average shares used in computing adjusted net loss per share |
|
|
|
||||
Basic and diluted |
|
45,528 |
|
|
|
44,632 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220503005997/en/
Contacts
Angie Wirick
AtriCure, Inc.
Chief Financial Officer
(513) 755-5334
awirick@atricure.com
Lynn Lewis
Gilmartin Group
Investor Relations
(415) 937-5402
lynn@gilmartinir.com
