NxStage Reports First Quarter 2013 Financial Results Highlights: - Revenue Increases to $61.6 million, up 8% from Q1'12 - Home Revenue Increases to $31.5 million, up 6% from Q1'12 - Gross Margin Increases to 39%, up from 37% in Q1'12 - Company Announces FDA Clearance of High Flow Capabilities with System One™ - Company Reaffirms Full-Year Outlook for 2013 PR Newswire LAWRENCE, Mass., May 2, 2013 LAWRENCE, Mass., May 2, 2013 /PRNewswire/ -- NxStage^® Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported first quarter financial results with revenue at the upper end of its guidance range. (Logo: http://photos.prnewswire.com/prnh/20110503/MM94799LOGO ) Revenue for the first quarter of 2013 increased 8% to $61.6 million, compared with revenue of $57.0 million for the first quarter of 2012. The higher revenues were driven by increased adoption of the NxStage System One™. Home revenue for the first quarter of 2013 increased 6% to $31.5 million compared with revenue of $29.6 million for the first quarter of 2012. These results, which reflect the Company's transition to a direct sales operation from a distribution relationship in the United Kingdom, were in-line with the Company's guidance. Critical Care revenue increased to $10.7 million for the first quarter of 2013 compared with revenue of $9.8 million for the first quarter of 2012. In-center revenue increased to $18.7 million for the first quarter of 2013 compared with revenue of $17.6 million for the first quarter of 2012. NxStage reported a net loss of $5.0 million or $(0.08) per share for the first quarter of 2013 compared with a net loss of $5.1 million or $(0.09) per share for the first quarter of 2012. The Company's first quarter net loss reflects increased investments in new products and market development efforts to accelerate future revenue growth. "Our first quarter performance represents a good start to the year," stated Jeffrey H. Burbank, Founder and Chief Executive Officer of NxStage. "In addition to meeting our near-term financial objectives, we're on track with strong and systematic execution against initiatives that are focused on accelerating growth over the long term. Our recent regulatory successes which include approval for a number of significant product innovations, including CE mark for nocturnal home dialysis and both CE mark and FDA clearance for our new high flow capabilities with our System One, reinforce our confidence in our ability to reduce barriers to home adoption and drive demand for our therapy." Burbank continued, "Based on our outlook and our continuing progress in key areas, we are reaffirming both our guidance for 2013, and our belief that we are creating significant catalysts for adoption of NxStage therapies in 2014 and beyond." Guidance: For the second quarter of 2013, the Company is forecasting revenues to be between $64.0 million and $65.5 million, a net loss in the range of $4.0 million to $5.0 million, or $(0.07) to $(0.08) per share. The Company reaffirmed its full year guidance for 2013. Conference Call: NxStage will also host a conference call today, Thursday, May2, 2013 at 9:00 a.m. Eastern Time to discuss its first quarter financial results. To listen to the conference call, please dial 877-392-9886 (domestic) or 707-287-9329 (international). The call will also be webcast LIVE and can be accessed via the investor relations section of the Company's website at www.nxstage.com. A replay of the conference call will be available 2 hours after the completion of the call through May 9, 2013. To access the replay dial 855-859-2056 (domestic) or 404-537-3406 (international) and reference conference ID 34519800. An online archive of the conference call can be accessed via the investor relations section of the Company's website at www.nxstage.com. About NxStage NxStage Medical, Inc. (Nasdaq: NXTM) is a medical device company, headquartered in Lawrence, Massachusetts, USA, that develops, manufactures and markets innovative products for the treatment of ESRD and acute kidney failure. For more information on NxStage and its products, please visit the company's website at www.nxstage.com. Forward-Looking Statements This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. Examples of these forward-looking statements include statements as to the anticipated demand for the Company's products, anticipated operating results, including revenues, loss, gross margin and Adjusted EBITDA numbers, and other expectations as to future operating results. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond NxStage's control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements, including market acceptance and demand for NxStage's products, growth in home and/or daily hemodialysis, unanticipated difficulties in achieving operational efficiencies and cost reductions, changes in reimbursement for home and daily hemodialysis, changes in the regulatory environment, changes in the historical purchasing patterns and preferences of our customers, including DaVita Healthcare Partners Inc. and Fresenius Medical Care, and certain other factors that may affect future operating results and which are detailed in NxStage's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2012. In addition, the statements in this press release represent NxStage's expectations and beliefs as of the date of this press release. NxStage anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while NxStage may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing NxStage's expectations or beliefs as of any date subsequent to the date of this press release. Contact: Kristen K. Sheppard, Esq. VP, Investor Relations firstname.lastname@example.org Non-GAAP Financial Measure The Company discloses a certain non-GAAP financial measure to supplement the Company's consolidated financial statements presented on a GAAP basis. This non-GAAP measure is not in accordance with, or an alternative for, generally accepted accounting principles in the United States and may be different from similar non-GAAP financial measures used by other companies. The non-GAAP financial measure disclosed by the Company is not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Management uses Adjusted EBITDA (EBITDA adjusted for stock based-compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expenses) to understand operational cash usage. The Company believes the non-GAAP financial measure provides useful and supplementary information allowing investors greater transparency to one measure used by management. The non-GAAP financial measure is meant to supplement, and to be viewed in conjunction with, GAAP financial measures. The non-GAAP financial measure is reconciled to the most comparable GAAP financial measure below. NxStage Medical, Inc. Condensed Consolidated Statements of Comprehensive Loss (in thousands, except per share data) (unaudited) Three Months Ended March 31, 2013 2012 Revenues $ 61,644 $ 56,951 Cost of revenues 37,644 35,639 Gross profit 24,000 21,312 Operating expenses: Selling and marketing 10,696 9,920 Research and development 5,108 3,897 Distribution 4,908 4,532 General and administrative 7,824 6,622 Total operating expenses 28,536 24,971 Loss from operations (4,536) (3,659) Other expense: Interest expense (150) (1,193) Other expense, net (176) (52) (326) (1,245) Net loss before income taxes (4,862) (4,904) Provision for income taxes 132 240 Net loss $ (4,994) $ (5,144) Net loss per share, basic and diluted $ (0.08) $ (0.09) Weighted-average shares outstanding, basic and 59,381 55,773 diluted Other comprehensive gain 145 173 Total comprehensive loss $ (4,849) $ (4,971) NxStage Medical, Inc. Condensed Consolidated Balance Sheets (in thousands, except share data) (unaudited) March 31, December 31, 2013 2012 ASSETS Current assets: Cash and cash equivalents $ 99,803 $ 106,439 Accounts receivable, net 22,058 18,990 Inventory 36,966 33,504 Prepaid expenses and other current assets 4,825 2,534 Total current assets 163,652 161,467 Property and equipment, net 37,317 36,320 Field equipment, net 10,297 10,101 Deferred cost of revenues 36,135 38,028 Intangible assets, net 19,120 19,819 Goodwill 42,421 42,421 Other assets 3,261 3,793 Total assets $ 312,203 $ 311,949 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 20,593 $ 16,645 Accrued expenses 19,561 20,400 Other current liabilities 2,165 2,187 Total current liabilities 42,319 39,232 Deferred revenues 57,191 59,262 Other long-term liabilities 15,920 15,864 Total liabilities 115,430 114,358 Commitments and contingencies Stockholders' equity: Undesignated preferred stock: par value $0.001, 5,000,000 shares authorized; no — — shares issued and outstanding as of March 31, 2013 and December 31, 2012 Common stock: par value $0.001, 100,000,000 shares authorized; 60,279,658 and 60 59 59,850,117 shares issued as of March 31, 2013 and December 31, 2012, respectively Additional paid-in capital 555,850 551,594 Accumulated deficit (349,975) (344,981) Accumulated other comprehensive income 615 470 Treasury stock, at cost: 561,808 and 541,584 shares as of March 31, 2013 and (9,777) (9,551) December 31, 2012, respectively Total stockholders' equity 196,773 197,591 Total liabilities and stockholders' equity $ 312,203 $ 311,949 NxStage Medical, Inc. Cash Flows from Operating Activities (in thousands) (unaudited) Three Months Ended March 31, 2013 2012 Cash flows from operating activities: Net loss $ (4,994) $ (5,144) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 6,080 5,720 Stock-based compensation 2,646 3,199 Other 230 794 Changes in operating assets and liabilities: Accounts receivable (3,072) (1,779) Inventory (6,350) (4,738) Prepaid expenses and other assets (1,474) (96) Accounts payable 4,124 (32) Accrued expenses and other liabilities (511) 1,916 Deferred revenues (1,887) (1,248) Net cash used in operating activities $ (5,208) $ (1,408) NxStage Medical, Inc. Revenues by Segment (in thousands) (unaudited) Three Months Ended March 31, 2013 2012 System One segment Home $ 31,459 $ 29,553 Critical Care 10,710 9,787 Total System One segment 42,169 39,340 In-Center segment 18,700 17,611 Other 775 — Total $ 61,644 $ 56,951 NxStage Medical, Inc. Non-GAAP Financial Measures (in millions) (unaudited) Three Months Ended March 31, 2013 2012 Net loss $ (5.0) $ (5.1) Less: Depreciation, amortization, interest, and 6.5 7.2 taxes Less: Adjusting items* (1.2) (0.3) Adjusted EBITDA $ 0.3 $ 1.8 * Adjusting items include stock-based compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expenses SOURCE NxStage Medical, Inc. Website: http://www.nxstage.com Contact: Kristen K. Sheppard, Esq., VP, Investor Relations, +1-978-332-5923, email@example.com
NxStage Reports First Quarter 2013 Financial Results
Press spacebar to pause and continue. Press esc to stop.