Atricure reports second quarter 2021 financial results
Mason, ohio--(business wire)--atricure, inc. (nasdaq: atrc), a leading innovator in treatments for atrial fibrillation (afib) and left atrial appendage (laa) management, today announced second quarter 2021 financial results. “our second quarter results were driven by outperformance across our business, as strong underlying demand returned and we saw continued progress toward making our platforms the standard of care,” said michael carrel, president and chief executive officer of atricure. “we are poised for accelerating growth with the recent fda approval of our epi-sense® system to improve the lives of millions of patients with long-standing persistent afib. this approval enriches the foundation of our company, built on core technologies which continue to deliver solid growth as we address vastly underpenetrated markets.” second quarter 2021 financial results revenue for the second quarter of 2021 was $71.4 million, an increase of 74.8% (an increase of 73.5% on a constant currency basis) over second quarter 2020 revenue. u.s. revenue was $60.1 million, an increase of $26.4 million or 78.4%, compared to second quarter 2020 revenue. u.s. revenue growth was seen across all product lines, driven by the receding impact of the covid-19 pandemic in 2021 which resulted in stabilizing cardiac surgery procedure volumes and increasing demand. international revenue increased $4.1 million or 57.9% (an increase of 50.2% on a constant currency basis) to $11.3 million, reflecting growth in most major markets and across product lines. on a sequential basis, worldwide revenue for the second quarter 2021 increased approximately 20% over first quarter 2021. gross profit for the second quarter of 2021 was $54.1 million compared to $27.7 million for the second quarter of 2020. gross margin was 75.8% and 67.7% for the second quarters of 2021 and 2020 respectively, reflecting the increase in revenue and reduced fixed cost burden on cost of revenue with the return to normal production in 2021, along with the favorable impact of both geographic and product mix. loss from operations for the second quarter of 2021 was $15.1 million, compared to $7.3 million for the second quarter of 2020. net loss per share was $0.36 for the second quarter of 2021, compared to $0.20 for the second quarter of 2020. adjusted ebitda was a loss of $2.7 million for the second quarter of 2021 compared to a $6.1 million loss for the second quarter of 2020. adjusted loss per share for the second quarter of 2021 was $0.30 compared to $0.38 for the second quarter of 2020. 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. 2021 financial guidance management is updating revenue guidance for full year 2021 to a range of $270 to $275 million, corresponding to growth of approximately 31% to 33% for the year. as with previous guidance, continued uncertainty relating to the dynamic environment with the covid-19 pandemic could materially impact this projection. the company is maintaining guidance for full year 2021 adjusted ebitda loss of approximately $10 million, and updating guidance for an adjusted loss per share of approximately $1.20. conference call atricure will host a conference call at 4:30 p.m. eastern time on wednesday, august 4, 2021 to discuss its second quarter 2021 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 8299332. 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 aftm 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/fls as well as our annual reports on form 10-k and quarterly reports on form 10-q which contain risk factors. we do not undertake to update our forward-looking statements. 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 loss before other income/expense (including interest), income tax expense, depreciation and amortization expense, share-based compensation expense, acquisition costs, legal settlement costs, 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 income (loss) (adjusted ebitda)” later in this release. adjusted loss per share is a non-gaap measure which calculates the net loss per share before non-cash adjustments in fair value of contingent consideration liabilities and legal settlement costs. a reconciliation of adjusted 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 june 30, six months ended june 30, 2021 2020 2021 2020 united states revenue: open ablation $ 24,839 $ 15,550 $ 45,914 $ 34,768 minimally invasive ablation 9,702 4,755 18,087 11,316 appendage management 25,156 13,021 45,743 30,440 total ablation and appendage management 59,697 33,326 109,744 76,524 valve tools 373 338 635 613 total united states 60,070 33,664 110,379 77,137 international revenue: open ablation 5,513 3,744 9,930 8,859 minimally invasive ablation 1,575 1,109 2,849 2,654 appendage management 4,194 2,271 7,452 5,333 total ablation and appendage management 11,282 7,124 20,231 16,846 valve tools 24 36 41 66 total international 11,306 7,160 20,272 16,912 total revenue 71,376 40,824 130,651 94,049 cost of revenue 17,298 13,170 32,033 27,511 gross profit 54,078 27,654 98,618 66,538 operating expenses: research and development expenses 12,197 10,036 23,414 21,623 selling, general and administrative expenses 56,958 24,903 106,166 67,654 total operating expenses 69,155 34,939 129,580 89,277 loss from operations (15,077 ) (7,285 ) (30,962 ) (22,739 ) other expense, net (1,108 ) (939 ) (2,109 ) (1,885 ) loss before income tax expense (16,185 ) (8,224 ) (33,071 ) (24,624 ) income tax expense (benefit) 66 12 97 20 net loss $ (16,251 ) $ (8,236 ) $ (33,168 ) $ (24,644 ) basic and diluted net loss per share $ (0.36 ) $ (0.20 ) $ (0.74 ) $ (0.61 ) weighted average shares used in computing net loss per share: basic and diluted 45,035 41,649 44,834 40,160 atricure, inc. and subsidiaries condensed consolidated balance sheets (in thousands) (unaudited) june 30, december 31, 2021 2020 assets current assets: cash, cash equivalents, and short-term investments $ 159,865 $ 244,218 accounts receivable, net 33,835 23,146 inventories 37,608 35,026 prepaid and other current assets 4,636 4,347 total current assets 235,944 306,737 property and equipment, net 30,175 28,290 operating lease right-of-use assets 2,683 1,914 long-term investments 69,770 14,178 goodwill and intangible assets, net 362,015 362,980 other noncurrent assets 488 440 total assets $ 701,075 $ 714,539 liabilities and stockholders' equity current liabilities: accounts payable and accrued liabilities $ 48,940 $ 40,720 other current liabilities and current maturities of debt and leases 18,493 8,417 total current liabilities 67,433 49,137 long-term debt 43,669 53,435 finance lease liabilities 10,540 10,969 operating lease liabilities 1,833 1,180 contingent consideration and other noncurrent liabilities 192,517 187,424 total liabilities 315,992 302,145 stockholders' equity: common stock 46 45 additional paid-in capital 748,644 742,389 accumulated other comprehensive (loss) income (87 ) 312 accumulated deficit (363,520 ) (330,352 ) total stockholders' equity 385,083 412,394 total liabilities and stockholders' equity $ 701,075 $ 714,539 atricure, inc. and subsidiaries reconciliation of gaap results to non-gaap results (in thousands) (unaudited) reconciliation of non-gaap adjusted income (loss) (adjusted ebitda) three months ended june 30, six months ended june 30, 2021 2020 2021 2020 net loss, as reported $ (16,251 ) $ (8,236 ) $ (33,168 ) $ (24,644 ) income tax expense 66 12 97 20 other expense, net 1,108 939 2,109 1,885 depreciation and amortization expense 2,658 2,458 4,780 4,902 share-based compensation expense 7,141 6,193 13,745 10,577 contingent consideration adjustment 2,600 (7,504 ) 5,100 (5,046 ) acquisition costs — 39 — 138 non-gaap adjusted loss (adjusted ebitda) $ (2,678 ) $ (6,099 ) $ (7,337 ) $ (12,168 ) reconciliation of non-gaap adjusted loss per share three months ended june 30, six months ended june 30, 2021 2020 2021 2020 net loss, as reported $ (16,251 ) $ (8,236 ) $ (33,168 ) $ (24,644 ) contingent consideration adjustment 2,600 (7,504 ) 5,100 (5,046 ) net loss excluding contingent consideration adjustment $ (13,651 ) $ (15,740 ) $ (28,068 ) $ (29,690 ) basic and diluted adjusted net loss per share $ (0.30 ) $ (0.38 ) $ (0.63 ) $ (0.74 ) weighted average shares used in computing adjusted net loss per share basic and diluted 45,035 41,649 44,834 40,160
