NXSTAGE MEDICAL, INC. LAWRENCE, Mass., Feb. 10, 2016 /PRNewswire/ --
Highlights:
-- Full-Year Revenue Increases to $336 million, up 11% from 2014
-- Full-Year Home Revenue Increases to $183 million, up 16% from 2014
-- Full-Year Operating Income from Products Business Increases to $9
million
-- Company Highlights Significant Product Introductions for the Next Three
Years
-- For Third Consecutive Year, Company Targets 15% Annual Home Revenue
Growth
NxStage Medical, Inc. (Nasdaq: NXTM), a leading medical technology company focused on advancing renal care, today reported record revenue for the fourth quarter and fiscal year ended December 31, 2015, topping its recent upwardly revised revenue guidance.
http://photos.prnewswire.com/prnvar/20110503/MM94799LOGO
Fourth Quarter Financial Results
Total revenue for the fourth quarter of 2015 increased 12 percent from 2014 to a record $89.8 million, which exceeded the top end of the Company's revenue guidance range of $86 to $87 million. Net loss attributable to NxStage Medical, Inc.'s stockholders was $2.7 million for the fourth quarter of 2015, compared with a net loss of $4.9 million for the fourth quarter of 2014. The net loss included $3.8 million of income from operations from the Products Business.
Fiscal Year 2015 Financial Results
Total revenue for the full-year 2015 increased 11 percent from 2014 to a record $336.1 million, which exceeded the top end of the Company's revenue guidance range of $332 to $333 million. Net loss attributable to NxStage Medical, Inc.'s stockholders was $15.3 million for the full-year 2015, compared with a net loss of $23.9 million for the full-year 2014. The net loss for the full-year included $9.2 million of income from operations from the Products Business.
The Company's performance improvements in both periods were driven by the Products Business, and more specifically, outperformance in NxStage's largest segment, the System One segment which consists of Home and Critical Care markets. For the full-year 2015, System One revenue increased 16 percent to $247.8 million. Home revenue increased 16 percent to $182.6 million, exceeding the Company's target for 15 percent annual growth. Critical Care revenue increased 17 percent to $65.2 million.
"It was a strong year for NxStage. We're very pleased to again exceed our guidance on revenue, narrow our net loss and deliver a year of increasing profitability in our Products Business," said Jeff Burbank, Founder and Chief Executive Officer of NxStage. "We have a rich portfolio of current products that are expected to drive continued growth within Home and Critical Care, our largest high growth markets, in 2016 and beyond."
Burbank continued, "In addition, we continue to advance our innovative pipeline, including our next generation hemodialysis system, our new peritoneal dialysis (PD) system and our next generation critical care system. As we are beginning pilot production of our next generation hemodialysis system, we continue to align our assets and focus our execution in support of these tremendous long-term growth opportunities."
Guidance
The Company is forecasting revenue to be between $355 million and $360 million for the full fiscal year 2016, and between $87 million and $89 million for the first quarter of 2016. The Company also expects a net loss in the range of $7 million to $12 million for the full fiscal year 2016, and a net loss in the range of $2 million to $4 million for the first quarter of 2016. The Company's net loss guidance for both periods reflects expectations for continued operating income from the Products Business offset by the Company's continued investment in NxStage Kidney Care.
"Our guidance for the full fiscal year 2016 includes continued strong performance from our System One segment, with expectations for annual growth within Home and Critical Care of 15 percent and 9 percent, respectively, and a modest increase in our Services segment. We've also guided to a much lower revenue level for our low margin In-Center segment," stated Matt Towse, Chief Financial Officer. "As we continue to scale the higher margin System One segment and align our business in support of our growth opportunities, we remain on track to achieve our long-term growth and profitability targets."
Conference Call:
NxStage will also host a conference call today, Wednesday, February 10, 2016, at 9:00 a.m. Eastern Time to discuss its fourth quarter and full-year 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 http://ir.nxstage.com.
A replay of the conference call will be available two hours after the completion of the call through February 17, 2016. To access the replay, dial 855-859-2056 (domestic) or 404-537-3406 (international) and reference conference ID 26460722. An online archive of the conference call can be accessed via the investor relations section of the Company's website at http://ir.nxstage.com.
About NxStage
NxStage Medical, Inc. (Nasdaq: NXTM) is a leading medical technology company, headquartered in Lawrence, Massachusetts, USA, that develops, manufactures and markets innovative products for the treatment of end-stage renal disease (ESRD) and acute kidney failure. NxStage has also established a small number of dialysis clinics committed to the development of innovative care delivery models for patients with ESRD. For more information on NxStage and its products and services, please visit the Company's website at http://www.nxstage.com and www.nxstagekidneycare.com.
About the NxStage System One
The NxStage System One is the first and only truly portable hemodialysis system cleared specifically by the FDA for home hemodialysis and home nocturnal hemodialysis. Its simplicity and revolutionary size (just over a foot tall) are intended to allow convenient use in patients' homes and give patients the freedom to travel with their therapy. When combined with the NxStage PureFlow SL Dialysis Preparation System, patients are able to further simplify, using ordinary tap water to create dialysis fluid on demand. Unlike conventional hemodialysis systems, the System One requires no special infrastructure to operate. Under the guidance of their physician, patients can use the NxStage System One, with their trained partners, where, how and when it best meets their needs, including while they are sleeping - at home or on vacation and at a medically appropriate treatment frequency. In addition, NxStage's Nx2Me Connected Health platform collects important NxStage System One and patient information for flexible viewing, monitoring and reporting that may improve patient management and simplify alternative site care. The System One is also used to provide a range of flexible therapy options in more traditional care settings such as hospitals and dialysis centers. Its safety and efficacy have been demonstrated by experience with more than 12 million treatments with thousands of patients around the world. http://www.nxstage.com/.
Forward-Looking Statements
This release contains forward-looking statements concerning our business, operations and financial condition. 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, market opportunities, timing of our new product launches, and our financial guidance for 2016 and beyond, including anticipated revenues and net loss. 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 domestically and internationally, growth in home and/or more frequent hemodialysis, regulatory approvals, competition, unanticipated difficulties in achieving operational efficiencies and cost reductions, changes in reimbursement for home and more frequent 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, including in response to NxStage Kidney 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 Quarterly Report on Form 10-Q for the quarter ended September 30, 2015.
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
ksheppard@nxstage.com
---------------------
NxStage Medical, Inc.
Consolidated Statements of Comprehensive Loss
(in thousands, except per share data)
(unaudited)
Three Months Ended December 31, Twelve Months Ended December 31,
------------------------------- --------------------------------
2015 2014 2015 2014
---- ---- ---- ----
Revenues $89,804 $79,911 $336,123 $301,501
Cost of revenues 54,041 49,059 204,652 185,598
------ ------ ------- -------
Gross profit 35,763 30,852 131,471 115,903
------ ------ ------- -------
Operating expenses:
Selling and marketing 15,017 14,705 58,528 55,385
Research and development 6,989 5,611 26,237 22,635
Distribution 7,071 6,539 26,211 26,001
General and administrative 8,985 8,470 35,124 34,069
----- ----- ------ ------
Total operating expenses 38,062 35,325 146,100 138,090
------ ------ ------- -------
Loss from operations (2,299) (4,473) (14,629) (22,187)
------ ------ ------- -------
Other income (expense):
Interest expense (320) (215) (1,115) (863)
Other income (expense), net 25 (6) 561 (10)
Total other expense (295) (221) (554) (873)
---- ---- ---- ----
Net loss before income
taxes (2,594) (4,694) (15,183) (23,060)
Provision for (benefit
from) income taxes 207 280 1,077 1,253
--- -----
Net loss (2,801) (4,974) (16,260) (24,313)
------ ------ ------- -------
Less: Net loss attributable
to noncontrolling
interests (131) (122) (918) (367)
---- ---- ---- ----
Net loss attributable to
stockholders of NxStage
Medical, Inc. $(2,670) $(4,852) $(15,342) $(23,946)
------- ------- -------- --------
Net loss per share, basic
and diluted $(0.04) $(0.08) $(0.24) $(0.39)
Weighted-average shares
outstanding, basic and
diluted 63,871 62,271 63,384 61,700
Other comprehensive loss,
net of tax (80) (1,609) (1,839) (2,404)
Total comprehensive loss (2,881) (6,583) (18,099) (26,717)
Less: Comprehensive loss
attributable to
noncontrolling interests (131) (122) (918) (367)
---- ---- ---- ----
Total comprehensive loss
attributable to
stockholders of NxStage
Medical, Inc. $(2,750) $(6,461) $(17,181) $(26,350)
======= ======= ======== ========
NxStage Medical, Inc.
Consolidated Balance Sheets
(in thousands, except share data)
(unaudited)
December 31,
2015 2014
---- ----
ASSETS
Current assets:
Cash and cash
equivalents $59,065 $52,884
Accounts receivable,
net 25,195 24,099
Inventory 38,391 45,401
Prepaid expenses and
other current
assets 6,254 6,767
----- -----
Total current assets 128,905 129,151
Property and
equipment, net 66,711 66,574
Field equipment, net 20,744 21,118
Deferred cost of
revenues 33,068 34,039
Intangible assets,
net 11,744 14,370
Goodwill 42,710 41,817
Other assets 2,992 2,657
----- -----
Total assets $306,874 $309,726
======== ========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $10,767 $13,845
Accrued expenses 27,266 24,653
Current portion of
long-term debt 315 93
Other current
liabilities 4,394 6,165
----- -----
Total current
liabilities 42,742 44,756
Deferred revenues 51,362 52,943
Long-term debt 1,664 848
Other long-term
liabilities 17,367 19,624
------ ------
Total liabilities 113,135 118,171
Commitments and contingencies
(Note 10)
Noncontrolling
interests subject
to put provisions 219 -
Stockholders' equity:
Undesignated
preferred stock:
par value $0.001
per share,
5,000,000 shares
authorized; no
shares issued and
outstanding as of
December 31, 2015
and 2014 - -
Common stock: par
value $0.001 per
share, 100,000,000
shares authorized;
64,873,038 and
63,429,005 shares
issued as of
December 31, 2015
and 2014,
respectively 64 63
Additional paid-in
capital 612,487 593,073
Accumulated deficit (402,830) (387,488)
Accumulated other
comprehensive loss (4,031) (2,192)
Treasury stock, at
cost: 822,059 and
772,273 shares as
of December 31,
2015 and 2014,
respectively (13,864) (12,989)
------- -------
Total NxStage
Medical, Inc.
stockholders'
equity 191,826 190,467
Noncontrolling
interests not
subject to put
provisions 1,694 1,088
----- -----
Total stockholders'
equity 193,520 191,555
------- -------
Total liabilities
and stockholders'
equity $306,874 $309,726
======== ========
NxStage Medical, Inc.
Cash Flows from Operating Activities
(in thousands)
(unaudited)
Twelve Months Ended December 31,
--------------------------------
2015 2014
---- ----
Cash flows from operating
activities:
Net loss $(16,260) $(24,313)
Adjustments to reconcile
net loss to net cash
provided by (used in)
operating activities:
Depreciation
and
amortization 30,715 27,697
Stock-based
compensation 12,598 12,881
Other 1,302 1,877
Changes in operating
assets and liabilities:
Accounts
receivable (1,130) (4,188)
Inventory (12,113) (35,063)
Prepaid
expenses
and other
assets (77) (2,214)
Accounts
payable (2,775) (212)
Accrued
expenses
and other
liabilities 635 4,235
Deferred
revenues (2,353) (973)
Net cash
provided by
(used in)
operating
activities $10,542 $(20,273)
======= ========
NxStage Medical, Inc.
Revenues by Segment
(in thousands)
(unaudited)
Three Months Ended December 31, Twelve Months Ended December 31,
------------------------------- --------------------------------
2015 2014 2015 2014
---- ---- ---- ----
System One segment
Home $47,812 $42,475 $182,572 $157,822
Critical Care 18,143 15,224 65,203 55,609
------ ------ ------ ------
Total System One
segment 65,955 57,699 247,775 213,431
In-Center segment 18,898 19,525 74,768 78,885
Other 3,180 2,367 10,302 8,282
----- ----- ------ -----
Products subtotal 88,033 79,591 332,845 300,598
Services segment 2,845 694 6,412 1,749
Elimination of
intersegment
revenues (1,074) (374) (3,134) (846)
Total $89,804 $79,911 $336,123 $301,501
======= ======= ======== ========
NxStage Medical, Inc.
Segment Financial Performance
(in thousands)
(unaudited)
Twelve Months Ended December 31,
--------------------------------
2015 2014 2013
---- ---- ----
Products business (System One Segment,
In-Center Segment and Other)
Revenues $332,845 $300,598 $263,077
Gross profit $146,188 $123,011 $103,295
Gross margin
percentage 44% 41% 39%
Income (Loss) from
operations $9,197 $(7,261) $(12,108)
Services Segment
Revenues $6,412 $1,749 $352
Gross profit $(14,717) $(7,108) $(792)
Gross margin
percentage n/a n/a n/a
Loss from operations $(23,826) $(14,926) $(5,690)
Eliminations
Elimination of
intersegment revenues $(3,134) $(846) $ -
Total Company
Revenues $336,123 $301,501 $263,429
Gross profit $131,471 $115,903 $102,503
Gross margin
percentage 39% 38% 39%
Loss from operations $(14,629) $(22,187) $(17,798)
Logo - http://photos.prnewswire.com/prnh/20110503/MM94799LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nxstage-reports-record-fourth-quarter-and-full-year-2015-revenue-300218024.html
SOURCE NxStage Medical, Inc.
