NATUS MEDICAL INC

CIK:0000878526|SEC Filings

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Revenue	$ 119,793	$ 114,927
Cost of revenue	52,781	46,688
Intangibles amortization	1,600	1,751
Gross profit	65,412	66,488
Operating expenses:
Marketing and selling	29,551	28,971
Research and development	13,224	14,040
General and administrative	12,807	14,855
Intangibles amortization	3,598	3,897
Restructuring	2,051	205
Total operating expenses	61,231	61,968
Income from operations	4,181	4,520
Other expense, net	(807)	(1,656)
Income before provision for income tax	3,374	2,864
Provision for income taxes	1,471	468
Net income	$ 1,903	$ 2,396
Net income per share:
Basic (dollars per share)	$ 0.06	$ 0.07
Diluted (dollars per share)	$ 0.06	$ 0.07
Weighted average shares used in the calculation of net income per share:
Basic (in shares)	34,119	33,611
Diluted (in shares)	34,276	33,782

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating activities:
Net income	$ 1,903	$ 2,396
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for losses on accounts receivable	87	101
Depreciation and amortization	6,673	7,257
Loss on disposal of property and equipment	30	8
Warranty reserve	1,363	341
Share-based compensation	2,619	3,114
Loss on commencement of sales-type leases	0	6
Loss on equity method investment	192	136
Changes in operating assets and liabilities:
Accounts receivable	8,803	4,962
Inventories	(6,132)	4,139
Prepaid expenses and other assets	(4,752)	(4,028)
Accounts payable	(1,957)	1,303
Accrued liabilities	(1,762)	1,172
Deferred revenue	1,949	2,732
Deferred income tax	(119)	1,064
Net cash provided by operating activities	8,897	24,703
Investing activities:
Purchase of property and equipment	(1,062)	(731)
Purchase of equity method investments	(572)	0
Net cash used in investing activities	(1,634)	(731)
Financing activities:
Proceeds from stock option exercises and Employee Stock Purchase Program purchases	4,191	0
Taxes paid related to net share settlement of equity awards	(1,228)	(1,150)
Principal payments of financing lease liability	(447)	(125)
Payments on borrowings	0	(20,000)
Net cash provided by (used in) financing activities	2,516	(21,275)
Exchange rate changes effect on cash and cash equivalents	(1,089)	(4,230)
Net increase (decrease) in cash and cash equivalents	8,690	(1,533)
Cash and cash equivalents, beginning of period	75,595	82,082
Cash and cash equivalents, end of period	84,285	80,549
Supplemental disclosure of cash flow information:
Cash paid for interest	114	513
Cash paid for income taxes	1,066	(320)
Non-cash investing activities:
Property and equipment included in accounts payable	32	39
Inventory transferred to property and equipment	291	94
Transfer of leased assets to sales-type leases	$ 0	$ 13

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 84,285	$ 75,595
Accounts receivable, net of allowance for doubtful accounts of $4,997 in 2022 and $5,271 in 2021	103,714	111,760
Inventories	72,238	67,745
Prepaid expenses and other current assets	26,531	22,191
Total current assets	286,768	277,291
Property and equipment, net	21,391	21,783
Operating lease right-of-use assets	8,027	9,288
Intangible assets, net	59,815	65,513
Goodwill	148,304	148,657
Deferred income tax	23,548	23,161
Other assets	20,230	18,595
Total assets	568,083	564,288
Current liabilities:
Accounts payable	34,342	36,405
Accrued liabilities	47,185	48,135
Deferred revenue	26,846	25,097
Current portion of operating lease liabilities	4,482	4,964
Total current liabilities	112,855	114,601
Liabilities, Noncurrent [Abstract]
Other liabilities	17,128	17,237
Operating lease liabilities	5,755	6,567
Deferred income tax	1,451	1,133
Total liabilities	137,189	139,538
Stockholders’ equity:
Common stock, $0.001 par value, 120,000,000 shares authorized; shares issued and outstanding 34,576,100 in 2022 and 34,225,682 in 2021	359,319	353,737
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding in 2021 and 2020	0	0
Retained earnings	86,389	84,486
Accumulated other comprehensive loss	(14,814)	(13,473)
Total stockholders’ equity	430,894	424,750
Total liabilities and stockholders’ equity	$ 568,083	$ 564,288