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Natus Medical Announces Fourth Quarter And Full Year 2012 Results

Stocks in this article: BABY

Additional information about Natus Medical can be found at www.natus.com.

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, particularly statements regarding the expectations, beliefs, plans, intentions and strategies of Natus. These forward-looking statements include statements regarding non-GAAP earnings in the first quarter and full year 2013 and expected amortization expense associated with acquired intangible assets. These statements relate to current estimates and assumptions of our management as of the date of this press release, and future events or Natus' future financial performance or results, and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements are only predictions and the actual events or results may differ materially. Natus cannot provide any assurance that its future results or the results implied by the forward-looking statements will meet expectations. Our future results could differ materially due to a number of factors, including the effects of competition, the demand for our products and services, the impact of adverse global economic conditions on our target markets, our ability to expand our sales in international markets, our ability to maintain current sales levels in a mature domestic market, our ability to control costs, risks associated with bringing new products to market and integrating acquired businesses, and our ability to fulfill product orders on a timely basis. Natus disclaims any obligation to update information contained in any forward looking statement.

More information about potential risk factors that could affect the business and financial results of Natus is included in Natus' annual report on Form 10-K for the year ended December 31, 2011, and its quarterly reports on Form 10-Q, and in other reports filed from time to time by Natus with the U.S. Securities and Exchange Commission.

NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
       
Three Months Ended Twelve Months Ended
December December December December
2012 2011 2012 2011

 

 

 

 

 
Revenue $ 90,450 $ 64,111 $ 291,699 $ 232,652
Cost of revenue   39,332     28,611     128,592     101,776

 

 

 

 

Gross profit   51,118     35,500     163,107     130,876

 

 

 

 

Operating expenses:
Marketing and selling 22,534 18,171 77,290 62,989
Research and development 8,107 6,985 29,967 25,562
General and administrative 12,096 8,053 51,347 32,880
Goodwill impairment charge   -     20,000     -     20,000

 

 

 

 

Total operating expenses   42,737     53,209     158,604     141,431

 

 

 

 

Income (loss) from operations   8,381     (17,709 )   4,503     (10,555 )

 

 

 

 

Other income/(expense):
Interest income 36 5 56 28
Interest expense (258 ) (108 ) (489 ) (268 )
Other income, net   (719 )   (99 )   (282 )   10

 

 

 

 

Total other income/(expense)   (941 )   (202 )   (715 )   (230 )

 

 

 

 

Income (loss) before provision for income tax 7,440 (17,911 ) 3,788 (10,785 )
 
Provision for income tax (benefit) expense   2,681     (595 )   168     912

 

 

 

 

Net income (loss) $ 4,759   $ (17,316 ) $ 3,620   $ (11,697 )

 

 

 

 

Earnings (loss) per share:
Basic $ 0.16 $ (0.61 ) $ 0.12 $ (0.41 )
Diluted $ 0.16 $ (0.61 ) $ 0.12 $ (0.41 )
 
Weighted-average shares used to compute:
Basic earnings (loss) per share 29,282 28,565 29,031 28,565
Diluted earnings (loss) per share 29,974 28,565 29,837 28,565
 

NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP ADJUSTMENTS (UNAUDITED)
(in thousands, except per share amounts)
         
Three Months Ended Twelve Months Ended
December December December December
2012 2011 2012 2011

 

 

 

 

GAAP based results:
 
Income (loss) before provision for income tax $ 7,440 $ (17,911 ) $ 3,788 $ (10,785 )
 
Non-GAAP adjustments:
 
Goodwill impairment charge - 20,000 - 20,000 (a)
 

Amortization expense associated with certain acquired intangible assets reported as a component of:

(b)
 
Cost of revenue 740 571 2,503 2,163
Marketing and selling 542 420 2,005 1,638
Research and development 338 334 1,351 1,324
 
Impairment of trade names (M&S) 560 700 560 700 (c)
 
Restructuring charge (G&A) 716 630 9,627 2,786 (d)
 
Direct costs of acquisitions (G&A) 80 32 2,858 322 (e)
 
Inventory FMV adjustments (COGS) 342 77 968 77 (f)
 
Backlog FMV adjustments (M&S) - - 720 - (g)
 
Accelerate ERP system depreciation (G&A)   -     451     902     451 (h)

 

 

 

 

Non-GAAP income before provision for income tax

10,758 5,304 25,282 18,676
 
Provision for income tax expense, as adjusted   2,142     1,240     6,910     4,690

 

 

 

 

 
Non-GAAP net income $ 8,616   $ 4,064   $ 18,372   $ 13,986

 

 

 

 

Non-GAAP earnings per share:
Basic $ 0.29 $ 0.14 $ 0.63 $ 0.49
Diluted $ 0.29 $ 0.14 $ 0.62 $ 0.47
 

Weighted-average shares used to compute:

Basic non-GAAP earnings per share 29,282 28,826 29,031 28,565
Diluted non-GAAP earnings per share 29,974 29,265 29,837 29,524
 
Memo, Gross profit percentage:
GAAP basis 56.5 % 55.4 % 55.9 % 56.3 %
non-GAAP basis 57.7 % 56.4 % 57.1 % 57.2 %
 




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