Atricure reports first 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 first quarter 2021 financial results. “our growth in the first quarter is a testament of our team’s strong execution and unwavering dedication despite continued covid headwinds,” said michael carrel, president and chief executive officer of atricure. “as we navigate toward a return to normalcy, i am confident that we are extremely well positioned for the future with our pathway of growth catalysts and the realization of these opportunities underway, beginning with converge.” first quarter 2021 financial results revenue for the first quarter of 2021 was $59.3 million, an increase of $6.1 million or 11.4% (an increase of 10.5% on a constant currency basis), compared to first quarter 2020 revenue. u.s. revenue was $50.3 million, an increase of $6.8 million or 15.7%, compared to first quarter 2020 revenue. u.s. revenue growth was driven by increased sales across key products within open ablation, minimally invasive ablation and appendage management categories, reflecting continued recovery of domestic procedure volumes. international revenue decreased 8.1% (a decrease of 12.9% on a constant currency basis) to $9.0 million. the decline in international revenue was driven by the various covid-19 restrictions and delayed recoveries across the different geographies. on a sequential basis, worldwide revenue for the first quarter 2021 increased approximately 3% over fourth quarter 2020. gross profit for the first quarter of 2021 was $44.5 million compared to $38.9 million for the first quarter of 2020. gross margin was 75.1% and 73.1% for the first quarters of 2021 and 2020 respectively, reflecting the favorable impact of both geographic and product mix. loss from operations for the first quarter of 2021 was $15.9 million, compared to $15.5 million for the first quarter of 2020. net loss per share was $0.38 for the first quarter of 2021, compared to $0.42 for the first quarter of 2020. adjusted ebitda was a loss of $4.7 million for the first quarter of 2021 compared to a $6.1 million loss for the first quarter of 2020. adjusted loss per share for the first quarter of 2021 was $0.32 compared to $0.36 for the first 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 full year 2021 revenue is now projected to be approximately $252 million to $256 million. as with previous guidance, continued uncertainty relating to the dynamic environment with the covid-19 pandemic could materially impact this projection. additionally, the company is maintaining guidance for full year 2021 adjusted ebitda loss of approximately $10 million and adjusted loss per share of $1.15. conference call atricure will host a conference call at 4:30 p.m. eastern time on tuesday, april 27, 2021 to discuss its first 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 3349395. 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 and only 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. 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 march 31, 2021 2020 united states revenue: open ablation $ 21,075 $ 19,218 minimally invasive ablation 8,385 6,561 appendage management 20,587 17,419 total ablation and appendage management 50,047 43,198 valve tools 262 275 total united states 50,309 43,473 international revenue: open ablation 4,417 5,115 minimally invasive ablation 1,274 1,545 appendage management 3,258 3,062 total ablation and appendage management 8,949 9,722 valve tools 17 30 total international 8,966 9,752 total revenue 59,275 53,225 cost of revenue 14,735 14,341 gross profit 44,540 38,884 operating expenses: research and development expenses 11,217 11,587 selling, general and administrative expenses 49,208 42,751 total operating expenses 60,425 54,338 loss from operations (15,885 ) (15,454 ) other expense, net (1,001 ) (946 ) loss before income tax expense (16,886 ) (16,400 ) income tax expense (benefit) 31 8 net loss $ (16,917 ) $ (16,408 ) basic and diluted net loss per share $ (0.38 ) $ (0.42 ) weighted average shares used in computing net loss per share: basic and diluted 44,632 38,671 atricure, inc. and subsidiaries condensed consolidated balance sheets (in thousands) (unaudited) march 31, december 31, 2021 2020 assets current assets: cash, cash equivalents, and short-term investments $ 227,205 $ 244,218 accounts receivable, net 29,741 23,146 inventories 36,144 35,026 prepaid and other current assets 5,214 4,347 total current assets 298,304 306,737 property and equipment, net 27,633 28,290 operating lease right-of-use assets 1,622 1,914 long-term investments 9,127 14,178 goodwill and intangible assets, net 362,742 362,980 other noncurrent assets 474 440 total assets $ 699,902 $ 714,539 liabilities and stockholders' equity current liabilities: accounts payable and accrued liabilities $ 45,155 $ 40,720 other current liabilities and current maturities of debt and leases 13,308 8,417 total current liabilities 58,463 49,137 long-term debt 48,552 53,435 finance lease liabilities 10,749 10,969 operating lease liabilities 966 1,180 contingent consideration and other noncurrent liabilities 189,929 187,424 total liabilities 308,659 302,145 stockholders' equity: common stock 46 45 additional paid-in capital 738,484 742,389 accumulated other comprehensive (loss) income (18 ) 312 accumulated deficit (347,269 ) (330,352 ) total stockholders' equity 391,243 412,394 total liabilities and stockholders' equity $ 699,902 $ 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 march 31, 2021 2020 net loss, as reported $ (16,917 ) $ (16,408 ) income tax expense 31 8 other expense, net 1,001 946 depreciation and amortization expense 2,122 2,444 share-based compensation expense 6,604 4,384 contingent consideration adjustment 2,500 2,458 acquisition costs — 99 non-gaap adjusted loss (adjusted ebitda) $ (4,659 ) $ (6,069 ) reconciliation of non-gaap adjusted loss per share three months ended march 31, 2021 2020 net loss, as reported $ (16,917 ) $ (16,408 ) contingent consideration adjustment 2,500 2,458 net loss excluding contingent consideration adjustment $ (14,417 ) $ (13,950 ) basic and diluted adjusted net loss per share $ (0.32 ) $ (0.36 ) weighted average shares used in computing adjusted net loss per share basic and diluted 44,632 38,671
