(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
The (NASDAQ Global Select Market) |
Exhibit No. | Description | ||||
99.1 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
NUVASIVE, INC. | |||||
Date: November 9, 2022 | /s/ Matthew K. Harbaugh | ||||
Matthew K. Harbaugh | |||||
Executive Vice President and Chief Financial Officer |
Prior guidance range ** | Current guidance range ** | |||||||||||||
GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||||
Net sales growth (reported)* | 6.0%-8.0% | 6.0%-8.0% | 5.5%-6.5% | 5.5%-6.5% | ||||||||||
Net sales growth (constant currency)* | 8.7%-10.7% | 8.7%-9.7% | ||||||||||||
Operating margin | 7.6%-9.1% | 13.0%-14.5% | 6.7%-7.4% | 12.3%-13.0% | ||||||||||
Diluted earnings per share | $0.95-$1.25*** | $2.15-$2.45 | $0.50-$0.60*** | $2.00-$2.10 |
NuVasive, Inc. | |||||||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(unaudited) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Products | $ | 267,208 | $ | 247,061 | $ | 813,600 | $ | 759,275 | |||||||||||||||
Services | 28,072 | 23,775 | 82,893 | 77,638 | |||||||||||||||||||
Total net sales | 295,280 | 270,836 | 896,493 | 836,913 | |||||||||||||||||||
Cost of sales (excluding below amortization of intangible assets): | |||||||||||||||||||||||
Products | 59,220 | 69,609 | 181,670 | 181,495 | |||||||||||||||||||
Services | 21,652 | 19,043 | 64,057 | 57,248 | |||||||||||||||||||
Total cost of sales | 80,872 | 88,652 | 245,727 | 238,743 | |||||||||||||||||||
Gross profit | 214,408 | 182,184 | 650,766 | 598,170 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling, general and administrative | 154,005 | 146,056 | 474,982 | 449,407 | |||||||||||||||||||
Research and development | 23,666 | 23,405 | 72,937 | 67,393 | |||||||||||||||||||
Amortization of intangible assets | 12,157 | 14,805 | 37,826 | 43,230 | |||||||||||||||||||
Business transition costs | 2,811 | 4,551 | (1,753) | 21,688 | |||||||||||||||||||
Total operating expenses | 192,639 | 188,817 | 583,992 | 581,718 | |||||||||||||||||||
Interest and other expense, net: | |||||||||||||||||||||||
Interest income | 820 | 23 | 1,125 | 119 | |||||||||||||||||||
Interest expense | (4,352) | (4,320) | (13,083) | (16,738) | |||||||||||||||||||
Other expense, net | (21,053) | (13,082) | (34,490) | (24,339) | |||||||||||||||||||
Total interest and other expense, net | (24,585) | (17,379) | (46,448) | (40,958) | |||||||||||||||||||
(Loss) income before income taxes | (2,816) | (24,012) | 20,326 | (24,506) | |||||||||||||||||||
Income tax benefit (expense) | 839 | 2,373 | (3,995) | (2,844) | |||||||||||||||||||
Consolidated net (loss) income | $ | (1,977) | $ | (21,639) | $ | 16,331 | $ | (27,350) | |||||||||||||||
Net (loss) income per share: | |||||||||||||||||||||||
Basic | $ | (0.04) | $ | (0.42) | $ | 0.31 | $ | (0.53) | |||||||||||||||
Diluted | $ | (0.04) | $ | (0.42) | $ | 0.31 | $ | (0.53) | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 52,067 | 51,669 | 51,974 | 51,539 | |||||||||||||||||||
Diluted | 52,067 | 51,669 | 52,512 | 51,539 |
NuVasive, Inc. | |||||||||||
Consolidated Balance Sheets | |||||||||||
(in thousands, except par value data) | |||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||
ASSETS | (unaudited) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 237,500 | $ | 246,091 | |||||||
Accounts receivable, net of allowances of $18,702 and $21,064, respectively | 235,582 | 214,398 | |||||||||
Inventory, net | 340,995 | 315,845 | |||||||||
Prepaid income taxes | 7,163 | 5,425 | |||||||||
Prepaid expenses and other current assets | 21,991 | 20,665 | |||||||||
Total current assets | 843,231 | 802,424 | |||||||||
Property and equipment, net | 336,808 | 303,664 | |||||||||
Intangible assets, net | 187,280 | 242,675 | |||||||||
Goodwill | 625,141 | 633,467 | |||||||||
Operating lease right-of-use assets | 96,352 | 102,987 | |||||||||
Deferred tax assets | 60,503 | 48,003 | |||||||||
Restricted cash and investments | 1,494 | 1,494 | |||||||||
Other assets | 24,136 | 19,361 | |||||||||
Total assets | $ | 2,174,945 | $ | 2,154,075 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | 119,297 | $ | 115,614 | |||||||
Contingent consideration liabilities | 59,477 | 7,986 | |||||||||
Accrued payroll and related expenses | 60,889 | 66,596 | |||||||||
Operating lease liabilities | 10,025 | 9,867 | |||||||||
Income tax liabilities | 819 | 828 | |||||||||
Senior convertible notes | 446,898 | — | |||||||||
Total current liabilities | 697,405 | 200,891 | |||||||||
Long-term senior convertible notes | 443,533 | 884,984 | |||||||||
Deferred tax liabilities | 11,697 | 3,049 | |||||||||
Operating lease liabilities | 104,729 | 111,592 | |||||||||
Contingent consideration liabilities | 71,740 | 139,824 | |||||||||
Other long-term liabilities | 13,695 | 18,528 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.001 par value; 5,000 shares authorized, none outstanding | — | — | |||||||||
Common stock, $0.001 par value; 150,000 shares authorized at September 30, 2022 and December 31, 2021; 58,880 shares issued and 52,076 outstanding at September 30, 2022; 58,469 shares issued and 51,769 outstanding at December 31, 2021 | 63 | 63 | |||||||||
Additional paid-in capital | 1,457,828 | 1,434,976 | |||||||||
Accumulated other comprehensive loss | (4,355) | (7,792) | |||||||||
Retained earnings | 62,039 | 45,708 | |||||||||
Treasury stock at cost; 6,804 shares and 6,700 shares at September 30, 2022 and December 31, 2021, respectively | (683,429) | (677,748) | |||||||||
Total equity | 832,146 | 795,207 | |||||||||
Total liabilities and equity | $ | 2,174,945 | $ | 2,154,075 |
NuVasive, Inc. | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
(in thousands) | |||||||||||
Nine Months Ended September 30, | |||||||||||
(unaudited) | 2022 | 2021 | |||||||||
Operating activities: | |||||||||||
Consolidated net income (loss) | $ | 16,331 | $ | (27,350) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 110,200 | 111,818 | |||||||||
Deferred income taxes | (5,004) | (5,211) | |||||||||
Amortization of non-cash interest | 5,906 | 6,672 | |||||||||
Stock-based compensation | 19,136 | 17,972 | |||||||||
Changes in fair value of contingent consideration | (8,560) | 6,646 | |||||||||
Net loss (gain) on strategic investments | 1,248 | (2,101) | |||||||||
Net loss from foreign currency adjustments | 33,619 | 26,572 | |||||||||
Reserves on current assets | (342) | 25,418 | |||||||||
Other non-cash adjustments | 13,654 | 8,750 | |||||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||||||
Accounts receivable | (27,934) | 4,142 | |||||||||
Inventory | (26,469) | (29,266) | |||||||||
Prepaid expenses and other current assets | 4,538 | (367) | |||||||||
Accounts payable and accrued liabilities | (8,329) | (779) | |||||||||
Accrued payroll and related expenses | (3,878) | 3,021 | |||||||||
Income taxes | (1,769) | (1,167) | |||||||||
Net cash provided by operating activities | 122,347 | 144,770 | |||||||||
Investing activities: | |||||||||||
Acquisition of Simplify Medical, net of cash acquired | (750) | (149,463) | |||||||||
Payment of contingent consideration for Simplify Medical | — | (45,850) | |||||||||
Acquisitions and investments | (5,650) | (500) | |||||||||
Purchases of intangible assets | — | (1,200) | |||||||||
Purchases of property and equipment | (107,120) | (85,630) | |||||||||
Proceeds from sales of marketable securities | — | 127,023 | |||||||||
Proceeds from maturities of marketable securities | — | 46,000 | |||||||||
Other investing activities | (697) | (819) | |||||||||
Net cash used in investing activities | (114,217) | (110,439) | |||||||||
Financing activities: | |||||||||||
Payment of contingent consideration | (6,839) | (3) | |||||||||
Proceeds from the issuance of common stock | 3,716 | 3,803 | |||||||||
Purchases of treasury stock | (5,681) | (7,309) | |||||||||
Payments upon settlement of senior convertible notes | — | (649,426) | |||||||||
Other financing activities | (1,362) | (1,038) | |||||||||
Net cash used in financing activities | (10,166) | (653,973) | |||||||||
Effect of exchange rate changes on cash | (6,555) | (2,649) | |||||||||
Decrease in cash, cash equivalents and restricted cash | (8,591) | (622,291) | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 247,585 | 858,363 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 238,994 | $ | 236,072 |
For the Three Months Ended September 30, 2022 | |||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||||||||||||
(Unaudited - in thousands, except per share data) | |||||||||||||||||||||||
Gross Profit | Operating Profit | Net (Loss) Income | Diluted EPS | Diluted WASO 6 | Net (Loss) to Adjusted EBITDA | ||||||||||||||||||
Reported GAAP | $ | 214,408 | $ | 21,769 | $ | (1,977) | $ | (0.04) | 52,067 | $ | (1,977) | ||||||||||||
% of net sales | 72.6 | % | 7.4 | % | |||||||||||||||||||
Amortization of intangible assets | 12,157 | 12,157 | |||||||||||||||||||||
Litigation related expenses and settlements1 | 828 | 828 | 828 | ||||||||||||||||||||
Business transition costs2 | 2,811 | 2,811 | 2,811 | ||||||||||||||||||||
European medical device regulation3 | 2,517 | 2,517 | 2,517 | ||||||||||||||||||||
Net loss on strategic investments | 1,016 | 1,016 | |||||||||||||||||||||
Non-cash acquisition-related foreign currency impacts4 | 18,434 | 18,434 | |||||||||||||||||||||
Tax effect of adjustments5 | (7,461) | ||||||||||||||||||||||
Interest expense/(income), net | 3,532 | ||||||||||||||||||||||
Income tax benefit | (839) | ||||||||||||||||||||||
Depreciation and amortization | 36,915 | ||||||||||||||||||||||
Non-cash stock-based compensation | 4,815 | ||||||||||||||||||||||
Adjusted Non-GAAP | $ | 214,408 | $ | 40,082 | $ | 28,325 | $ | 0.54 | 52,584 | $ | 68,052 | ||||||||||||
% of net sales | 72.6 | % | 13.6 | % | 23.0 | % | |||||||||||||||||
1 | Represents expenses and settlements associated with certain ongoing litigation matters, including infringement of the Company’s intellectual property. | ||||||||||||||||||||||
2 | Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs, contingent consideration fair value adjustments, and other costs directly associated with such activities. | ||||||||||||||||||||||
3 | Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with European medical device regulation. | ||||||||||||||||||||||
4 | Represents non-cash adjustments to acquisition-related intercompany balances and contingent consideration liabilities held in a foreign currency. | ||||||||||||||||||||||
5 | Represents the impact from tax affecting the adjustments above at their statutory tax rate. | ||||||||||||||||||||||
6 | Adjusted non-GAAP diluted WASO excludes the impact of dilutive convertible notes for which the Company is economically hedged through its anti-dilutive bond hedge arrangements. |
For the Nine Months Ended September 30, 2022 | |||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||||||||||||
(Unaudited - in thousands, except per share data) | |||||||||||||||||||||||
Gross Profit | Operating Profit | Net Income | Diluted EPS7 | Diluted WASO8 | Net Income to Adjusted EBITDA | ||||||||||||||||||
Reported GAAP | $ | 650,766 | $ | 66,774 | $ | 16,331 | $ | 0.31 | 52,512 | $ | 16,331 | ||||||||||||
% of net sales | 72.6 | % | 7.4 | % | |||||||||||||||||||
Non-cash purchase accounting adjustments on acquisitions1 | 557 | 557 | 557 | 557 | |||||||||||||||||||
Amortization of intangible assets | 37,826 | 37,826 | |||||||||||||||||||||
Litigation related expenses and settlements2 | 3,676 | 3,676 | 3,676 | ||||||||||||||||||||
Business transition costs3 | (1,753) | (1,753) | (1,753) | ||||||||||||||||||||
European medical device regulation4 | 7,463 | 7,463 | 7,463 | ||||||||||||||||||||
Net loss on strategic investments | 1,248 | 1,248 | |||||||||||||||||||||
Non-cash acquisition-related foreign currency impacts5 | 34,209 | 34,209 | |||||||||||||||||||||
Tax effect of adjustments6 | (18,238) | ||||||||||||||||||||||
Interest expense/(income), net | 11,958 | ||||||||||||||||||||||
Income tax expense | 3,995 | ||||||||||||||||||||||
Depreciation and amortization | 110,200 | ||||||||||||||||||||||
Non-cash stock-based compensation | 19,136 | ||||||||||||||||||||||
Adjusted Non-GAAP | $ | 651,323 | $ | 114,543 | $ | 81,319 | $ | 1.55 | 52,512 | $ | 207,020 | ||||||||||||
% of net sales | 72.7 | % | 12.8 | % | 23.1 | % | |||||||||||||||||
1 | Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized over the period in which underlying products are sold. | ||||||||||||||||||||||
2 | Represents expenses and settlements associated with certain ongoing litigation matters, including infringement of the Company’s intellectual property. | ||||||||||||||||||||||
3 | Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs, contingent consideration fair value adjustments, and other costs directly associated with such activities. | ||||||||||||||||||||||
4 | Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with European medical device regulation. | ||||||||||||||||||||||
5 | Represents non-cash adjustments to acquisition-related intercompany balances and contingent consideration liabilities held in a foreign currency. | ||||||||||||||||||||||
6 | Represents the impact from tax affecting the adjustments above at their statutory tax rate. | ||||||||||||||||||||||
7 | Reported GAAP diluted EPS is calculated using Net Income plus interest and debt issuance costs on senior convertible notes whose effect is dilutive, net of tax divided by diluted WASO. | ||||||||||||||||||||||
8 | Adjusted non-GAAP diluted WASO excludes the impact of dilutive convertible notes for which the Company is economically hedged through its anti-dilutive bond hedge arrangements. |
For the Three Months Ended September 30, 2021 | |||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||||||||||||
(Unaudited - in thousands, except per share data) | |||||||||||||||||||||||
Gross Profit | Operating (Loss) Profit | Net (Loss) Income | Diluted EPS | Diluted WASO8 | Net (Loss) to Adjusted EBITDA | ||||||||||||||||||
Reported GAAP | $ | 182,184 | $ | (6,633) | $ | (21,639) | $ | (0.42) | 51,669 | $ | (21,639) | ||||||||||||
% of net sales | 67.3 | % | (2.4) | % | |||||||||||||||||||
Non-cash purchase accounting adjustments on acquisitions1 | 557 | 557 | 557 | 557 | |||||||||||||||||||
Inventory charges associated with product withdrawals2 | 14,215 | 14,215 | 14,215 | 14,215 | |||||||||||||||||||
Amortization of intangible assets | 14,805 | 14,805 | |||||||||||||||||||||
Litigation related expenses and settlements3 | 762 | 762 | 762 | ||||||||||||||||||||
Business transition costs4 | 4,551 | 4,551 | 4,551 | ||||||||||||||||||||
European medical device regulation5 | 2,132 | 2,132 | 2,132 | ||||||||||||||||||||
Non-cash acquisition-related foreign currency impacts6 | 10,280 | 10,280 | |||||||||||||||||||||
Tax effect of adjustments7 | (8,775) | ||||||||||||||||||||||
Interest expense/(income), net | 4,297 | ||||||||||||||||||||||
Income tax benefit | (2,373) | ||||||||||||||||||||||
Depreciation and amortization | 37,864 | ||||||||||||||||||||||
Non-cash stock-based compensation | 4,965 | ||||||||||||||||||||||
Adjusted Non-GAAP | $ | 196,956 | $ | 30,389 | $ | 16,888 | $ | 0.32 | 52,268 | $ | 55,611 | ||||||||||||
% of net sales | 72.7 | % | 11.2 | % | 20.5 | % | |||||||||||||||||
1 | Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized over the period in which underlying products are sold. | ||||||||||||||||||||||
2 | Represents charges for inventory write-offs associated with the Company’s product withdrawals. During the three months ended September 30, 2021, the Company made a determination to withdraw certain products marketed and sold by its wholly-owned subsidiary, NuVasive Specialized Orthopedics. | ||||||||||||||||||||||
3 | Represents expenses associated with certain ongoing litigation matters, including infringement of the Company’s intellectual property. | ||||||||||||||||||||||
4 | Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs, contingent consideration fair value adjustments, and other costs directly associated with such activities. | ||||||||||||||||||||||
5 | Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with European medical device regulation. | ||||||||||||||||||||||
6 | Represents non-cash adjustments to acquisition-related intercompany balances and contingent consideration liabilities held in a foreign currency. | ||||||||||||||||||||||
7 | Represents the impact from tax affecting the adjustments above at their statutory tax rate. | ||||||||||||||||||||||
8 | Adjusted non-GAAP diluted WASO excludes the impact of dilutive convertible notes for which the Company is economically hedged through its anti-dilutive bond hedge arrangements. |
For the Nine Months Ended September 30, 2021 | |||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||||||||||||
(Unaudited - in thousands, except per share data) | |||||||||||||||||||||||
Gross Profit | Operating Profit | Net (Loss) Income | Diluted EPS | Diluted WASO8 | Net (Loss) to Adjusted EBITDA | ||||||||||||||||||
Reported GAAP | $ | 598,170 | $ | 16,452 | $ | (27,350) | $ | (0.53) | 51,539 | $ | (27,350) | ||||||||||||
% of net sales | 71.5 | % | 2.0 | % | |||||||||||||||||||
Non-cash purchase accounting adjustments on acquisitions1 | 1,299 | 1,299 | 1,299 | 1,299 | |||||||||||||||||||
Inventory charges associated with product withdrawals2 | 14,215 | 14,215 | 14,215 | 14,215 | |||||||||||||||||||
Amortization of intangible assets | 43,230 | 43,230 | |||||||||||||||||||||
Litigation related expenses and settlements3 | 4,010 | 4,010 | 4,010 | ||||||||||||||||||||
Business transition costs4 | 21,688 | 21,688 | 21,688 | ||||||||||||||||||||
European medical device regulation5 | 5,696 | 5,696 | 5,696 | ||||||||||||||||||||
Net gain on strategic investments | (2,101) | (2,101) | |||||||||||||||||||||
Non-cash acquisition-related foreign currency impacts6 | 23,673 | 23,673 | |||||||||||||||||||||
Tax effect of adjustments7 | (17,269) | ||||||||||||||||||||||
Interest expense/(income), net | 16,619 | ||||||||||||||||||||||
Income tax expense | 2,844 | ||||||||||||||||||||||
Depreciation and amortization | 111,818 | ||||||||||||||||||||||
Non-cash stock-based compensation | 17,972 | ||||||||||||||||||||||
Adjusted Non-GAAP | $ | 613,684 | $ | 106,590 | $ | 67,091 | $ | 1.29 | 52,184 | $ | 190,383 | ||||||||||||
% of net sales | 73.3 | % | 12.7 | % | 22.7 | % | |||||||||||||||||
1 | Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized over the period in which underlying products are sold. | ||||||||||||||||||||||
2 | Represents charges for inventory write-offs associated with the Company’s product withdrawals. During the three months ended September 30, 2021, the Company made a determination to withdraw certain products marketed and sold by its wholly-owned subsidiary, NuVasive Specialized Orthopedics. | ||||||||||||||||||||||
3 | Represents expenses associated with certain ongoing litigation matters, including infringement of the Company’s intellectual property. | ||||||||||||||||||||||
4 | Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs, contingent consideration fair value adjustments, and other costs directly associated with such activities. | ||||||||||||||||||||||
5 | Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with European medical device regulation. | ||||||||||||||||||||||
6 | Represents non-cash adjustments to acquisition-related intercompany balances and contingent consideration liabilities held in a foreign currency. | ||||||||||||||||||||||
7 | Represents the impact from tax affecting the adjustments above at their statutory tax rate. | ||||||||||||||||||||||
8 | Adjusted non-GAAP diluted WASO excludes the impact of dilutive convertible notes for which the Company is economically hedged through its anti-dilutive bond hedge arrangements. |
Full Year 2022 Financial Guidance | ||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP EPS | ||||||||||||||||||||
2022 Guidance Range1, 2 | ||||||||||||||||||||
2021 Actuals1 | Prior | Current | ||||||||||||||||||
GAAP diluted earnings (loss) per share | $(1.24) | $0.95-1.25 | $0.50-0.60 | |||||||||||||||||
Impact of dilution3 | 0.02 | ~0.05 | — | |||||||||||||||||
Amortization of intangible assets | 1.10 | ~1.00 | ~0.95 | |||||||||||||||||
European medical device regulation4 | 0.16 | ~0.25 | ~0.25 | |||||||||||||||||
Inventory charges associated with product withdrawal5 | 0.27 | — | — | |||||||||||||||||
Other6 | 1.83 | ~0.30 | ~0.75 | |||||||||||||||||
Tax effect of adjustments7 | (0.45) | ~(0.40) | ~(0.45) | |||||||||||||||||
Non-GAAP diluted earnings per share | $1.68 | $2.15-2.45 | $2.00-2.10 | |||||||||||||||||
1 | Data has been intentionally rounded and may not sum. | |||||||||||||||||||
2 | Prior guidance reflects the range provided August 3, 2022. Current guidance reflects the range provided November 9, 2022. | |||||||||||||||||||
3 | GAAP diluted EPS includes the dilutive impact of applying the if-converted method to the Company's convertible notes. Adjusted non-GAAP diluted WASO excludes the impact of dilutive convertible notes for which the Company is economically hedged through its anti-dilutive bond hedge arrangements. | |||||||||||||||||||
4 | Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with European medical device regulation. | |||||||||||||||||||
5 | Represents charges for inventory write-offs associated with the Company’s product withdrawals. During the third quarter of 2021, the Company made a determination to withdraw certain products marketed and sold by its wholly-owned subsidiary, NuVasive Specialized Orthopedics. | |||||||||||||||||||
6 | Includes costs primarily associated with litigation related expenses and settlements, non-cash acquisition-related foreign currency impacts, non-cash purchase accounting adjustments on acquisitions, net gain on strategic investments and business transition costs. See Reconciliation of GAAP to Non-GAAP Financial Measures tables within respective earnings releases for further detail. | |||||||||||||||||||
7 | Represents the impact from tax affecting the adjustments above at their statutory tax rate. |
Full Year 2022 Financial Guidance | |||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Operating Margin % | |||||||||||||||||||||||
2022 Guidance Range1, 2 | |||||||||||||||||||||||
2021 Actuals1 | Prior | Current | |||||||||||||||||||||
GAAP Operating Margin % | (1.1) | % | 7.6%-9.1% | 6.7%-7.4% | |||||||||||||||||||
Amortization of intangible assets | 5.0 | % | ~4.4% | ~4.2% | |||||||||||||||||||
European medical device regulation3 | 0.7 | % | ~1.0% | ~1.0% | |||||||||||||||||||
Inventory charges associated with product withdrawal4 | 1.3 | % | — | — | |||||||||||||||||||
Other 5 | 6.8 | % | — | ~0.4% | |||||||||||||||||||
Non-GAAP Operating Margin % | 12.8 | % | 13.0%-14.5% | 12.3%-13.0% | |||||||||||||||||||
1 | Data has been intentionally rounded and may not sum. | ||||||||||||||||||||||
2 | Prior guidance reflects the range provided August 3, 2022. Current guidance reflects the range provided November 9, 2022. | ||||||||||||||||||||||
3 | Represents costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with European medical device regulation. | ||||||||||||||||||||||
4 | Represents charges for inventory write-offs associated with the Company’s product withdrawals. During the third quarter of 2021, the Company made a determination to withdraw certain products marketed and sold by its wholly-owned subsidiary, NuVasive Specialized Orthopedics. | ||||||||||||||||||||||
5 | Includes costs primarily associated with litigation related expenses and settlements, non-cash purchase accounting adjustments on acquisitions, and business transition costs. See Reconciliation of GAAP to Non-GAAP Financial Measures tables within respective earnings releases for further detail. |
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Cover |
Nov. 09, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Nov. 09, 2022 |
Entity Registrant Name | NUVASIVE, INC |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 000-50744 |
Entity Tax Identification Number | 33-0768598 |
Entity Address, Address Line One | 12101 Airport Way |
Entity Address, City or Town | Broomfield |
Entity Address, State or Province | CO |
Entity Address, Postal Zip Code | 80021 |
City Area Code | (800) |
Local Phone Number | 455-1476 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $0.001 per share |
Trading Symbol | NUVA |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001142596 |
Amendment Flag | false |
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