NuVasive's fourth quarter and full year revenue increased for 2015, and the company completed a key acquisition to boost 2016 financial performance.
"In 2016, we expect to drive further market share gains fueled by the launch of innovations that fulfill unmet clinical and economic needs, coupled with additional investment in our commercial teams around the world," said NuVasive Chairman and CEO Gregory T. Lucier. "Very selectively, we also intend to explore compelling inorganic opportunities that add value, such as today's completion of the acquisition of Ellipse Technologies, and reinforce our focus on transformative spine solutions."
Here are 10 key notes on NuVasive's financial report:
1. Fourth quarter revenue was up 5.4 percent to $215.3 million; full year revenue reached $811.1 million, a 6.4 percent jump.
2. The company reported GAAP gross profit for the fourth quarter at $616.6 million and the gross margin was 76 percent.
3. The GAAP gross profit for the full year was $580.1 million with a gross margin of 76.1 percent.
4. Net income for the fourth quarter was $11.5 million, or 0.22 per share, up from $7.5 million, or $0.15 per share over the same period last year.
5. Full year net income was $66.3 million, or $1.26 per share, significantly up from a $16.7 million net loss last year, or $0.36 loss per share for 2014.
6. Cash, cash equivalents and short and long-term marketable securities were approximately $470.1 million as of Dec. 31, 2015.
7. NuVasive completed the Ellipse Technologies acquisition for $380 million upfront cash and the potential for $30 million more payable in 2017 related to the achievement of specific revenue targets. Ellipse generated revenues around $44 million, and 2016 revenues are expected to reach $53 million.
8. The Ellipse Technologies acquisition is expected to grow NuVasive's revenue in the high single-digits and be accretive to non-GAAP diluted earnings per share by around $0.01 this year.
9. NuVasive's full year for 2016 is projected at $923 million, around 13.8 percent growth over the same period last year.
10. Adjusted EBITDTA margin for the full year 2016 is estimated around 25.4 percent, an increase of around 20 basis points compared to 2015.