NxStage Reports Record First Quarter 2014 Financial Results And Exceeds Guidance - WTRF 7 News Sports Weather - Wheeling Steubenville

NxStage Reports Record First Quarter 2014 Financial Results And Exceeds Guidance

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SOURCE NxStage Medical, Inc.

-- Revenue Increases to $72.2 million, up 17% from Q1'13

-- Home Revenue Increases to $36.5 million, up 16% from Q1'13

-- Company Trending Toward Higher End of Annual Revenue Guidance Range

LAWRENCE, Mass., May 8, 2014 /PRNewswire/ -- NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported record first quarter financial results that exceed the top end of its guidance range.

NxStage Medical, Inc.

Revenue for the first quarter of 2014 increased 17 percent to a record $72.2 million, compared with revenue of $61.6 million for the first quarter of 2013. The Company's revenue guidance range for the first quarter was $69.5 to $70.5 million. The increase in revenue was driven by continued strong adoption of the NxStage® System One hemodialysis machine within the Home, both within US and international markets, and the Critical Care market.

Home revenue increased 16 percent to $36.5 million for the first quarter of 2014 compared with revenue of $31.5 million for the first quarter of 2013. 

Critical Care revenue increased 37 percent to $14.7 million for the first quarter of 2014 compared with revenue of $10.7 million for the first quarter of 2013, reflecting stronger-than-anticipated disposable and equipment sales.

In-center revenue increased to $18.9 million for the first quarter of 2014 compared with revenue of $18.7 million for the first quarter of 2013.

NxStage reported a net loss of $5.3 million, or $(0.09) per share for the first quarter of 2014 compared with a net loss of $5.0 million, or $(0.08) per share for the first quarter of 2013. Higher revenues and favorable product mix resulted in a better-than-expected net loss for the first quarter of 2014 versus the Company's guidance for net loss to be in a range of $7.5 to $6.5 million. Consistent with the Company's expectations, net loss for the first quarter of 2014 included $3.0 million in losses associated with the Company's market development activities with NxStage Kidney Care.

"NxStage had a strong start to the year and exceeded our guidance across all key metrics," stated Jeffrey H. Burbank, Founder and Chief Executive Officer of NxStage. "The progress we are making on our near term growth drivers is reflected in both strong growth across our business and increasing demand for our innovative new products with patients and customers. Our strategic growth initiatives remain solidly on track and we believe they are positioning the Company toward our goal of 15% annual home revenue growth in 2014."

Guidance:

"After a strong first quarter, we believe we are trending towards the higher end of our annual revenue guidance which was originally set to be between $283 million and $288 million," stated Matthew W. Towse, Chief Financial Officer. "Looking ahead to the second quarter, we expect revenue to be between $70.0 million and $71.5 million, and a net loss in the range of $7.5 million to $6.5 million."

Conference Call:

NxStage will also host a conference call today, Thursday, May 8, 2014 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 http://ir.nxstage.com.

A replay of the conference call will be available two hours after the completion of the call through May 16, 2014. To access the replay, dial 855-859-2056 (domestic) or 404-537-3406 (international) and reference conference ID 24591605. 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 the NxStage System One

The NxStage System One is the first and only truly portable hemodialysis system cleared for home use by the FDA. 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. 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, at home or on vacation, and at a medically appropriate treatment frequency. http://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 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 domestically and internationally, growth in home and/or more frequent hemodialysis, 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 the Company's NxStage Kidney Care initiative, 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, 2013.

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.

Condensed Consolidated Statements of Comprehensive Loss

(in thousands, except per share data)

(unaudited)




Three Months Ended March 31,



2014



2013









Revenues


$

72,221



$

61,644


Cost of revenues


43,287



37,644


Gross profit


28,934



24,000


Operating expenses:







Selling and marketing


13,218



10,696


Research and development


5,134



5,108


Distribution


6,550



4,908


General and administrative


8,821



7,824


Total operating expenses


33,723



28,536


Loss from operations


(4,789)



(4,536)


Other expense:







Interest expense


(198)



(150)


Other income (expense), net


23



(176)




(175)



(326)


Net loss before income taxes


(4,964)



(4,862)


Provision for income taxes


346



132


Net loss


(5,310)



(4,994)


Less: Net loss attributable to noncontrolling interests


(35)



-


Net loss attributable to stockholders of NxStage Medical, Inc.


$

(5,275)



(4,994)









Net loss per share, basic and diluted


$

(0.09)



$

(0.08)


Weighted-average shares outstanding, basic and diluted


61,252



59,381









Other comprehensive income


182



145


Total comprehensive loss


(5,128)



(4,849)


Less: Comprehensive loss attributable to noncontrolling interests


(35)



-


Total comprehensive loss attributable to stockholders of NxStage Medical, Inc.


$

(5,093)



$

(4,849)


 

 

NxStage Medical, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share data)

(unaudited)



March 31,



December 31,



2014



2013








ASSETS






Current assets:






Cash and cash equivalents

$

76,829



$

84,134


Accounts receivable, net

25,263



20,158


Inventory

40,804



37,801


Prepaid expenses and other current assets

4,098



4,027


Total current assets

146,994



146,120


Property and equipment, net

56,826



52,478


Field equipment, net

14,822



13,041


Deferred cost of revenues

33,815



34,730


Intangible assets, net

16,491



17,194


Goodwill

41,817



41,817


Other assets

1,941



1,582


Total assets

$

312,706



$

306,962


LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities:






Accounts payable

$

22,310



$

14,610


Accrued expenses

20,538



21,025


Current portion of long-term debt

103



102


Other current liabilities

1,801



1,870


Total current liabilities

44,752



37,607


Deferred revenues

52,242



53,277


Long-term debt

1,030



1,044


Other long-term liabilities

21,346



20,273


Total liabilities

119,370



112,201


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, 2014 and December 31, 2013

-



-


Common stock: par value $0.001, 100,000,000 shares authorized; 61,996,196 and

61,666,048 shares issued as of March 31, 2014 and December 31, 2013, respectively

62



61


Additional paid-in capital

571,217



567,468


Accumulated deficit

(368,817)



(363,542)


Accumulated other comprehensive income

394



212


Treasury stock, at cost: 579,121 and 575,895 shares as of March 31, 2014 and December 31, 2013, respectively

(10,010)



(9,963)


Total NxStage Medical, Inc. stockholders' equity

192,846



194,236


Noncontrolling interest

490



525


Total stockholders' equity

193,336



194,761


Total liabilities and stockholders' equity

$

312,706



$

306,962








 

 

NxStage Medical, Inc.

Cash Flows from Operating Activities

(in thousands)

(unaudited)



Three Months Ended March 31,


2014


2013







Cash flows from operating activities:






Net loss

$

(5,310)



$

(4,994)


Adjustments to reconcile net loss to net cash used in operating activities:






Depreciation and amortization

6,591



6,080


Stock-based compensation

2,641



2,646


Other

80



230


Changes in operating assets and liabilities:






Accounts receivable

(5,118)



(3,072)


Inventory

(8,224)



(6,350)


Prepaid expenses and other assets

(393)



(1,474)


Accounts payable

7,702



4,124


Accrued expenses and other liabilities

(339)



(216)


Deferred revenues

(1,010)



(1,887)


Net cash used in operating activities

$

(3,380)



$

(4,913)


 

 

NxStage Medical, Inc.

Revenues by Segment

(in thousands)

(unaudited)




Three Months Ended March 31,



2014



2013


System One segment







Home


$

36,495



$

31,459


Critical Care


14,692



10,710


Total System One segment


51,187



42,169


In-Center segment


18,916



18,700


Other


2,054



775


Services segment


116



-


Elimination of intersegment revenues


(52)



-


     Total


$

72,221



$

61,644


 

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