NxStage Medical, Inc.

CIK:0001333170|SEC Filings

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Revenues	$ 108,122	$ 97,295	$ 322,390	$ 290,340
Cost of revenues	61,589	56,688	183,745	167,377
Gross profit	46,533	40,607	138,645	122,963
Operating expenses:
Selling and marketing	17,549	16,984	53,735	50,595
Research and development	9,698	11,222	29,729	29,757
Distribution	8,636	8,065	26,539	23,394
General and administrative	9,388	12,619	29,599	31,237
Total operating expenses	45,271	48,890	139,602	134,983
Income (loss) from operations	1,262	(8,283)	(957)	(12,020)
Other income (expense):
Interest expense, net	(69)	(168)	(266)	(595)
Other income (expense), net	109	26	(858)	(565)
Total other expense	40	(142)	(1,124)	(1,160)
Net income (loss) before income taxes	1,302	(8,425)	(2,081)	(13,180)
Provision for (benefit from) income taxes	512	469	1,148	(166)
Net income (loss)	790	(8,894)	(3,229)	(13,014)
Less: Net loss attributable to noncontrolling interests	(91)	(449)	(62)	(1,291)
Net income (loss) attributable to NxStage Medical, Inc.	881	(8,445)	(3,167)	(11,723)
Add: Accretion to redemption value of noncontrolling interests	(68)	(481)	(68)	(481)
Net income (loss) attributable to common stockholders	$ 813	$ (8,926)	$ (3,235)	$ (12,204)
Net income (loss) per common share:
Net loss per share, basic (in dollars per share)	$ 0.01	$ (0.14)	$ (0.05)	$ (0.19)
Net loss per share, diluted (in dollars per share)	$ 0	$ 0	$ 0	$ 0
Weighted-average shares outstanding:
Weighted-average shares outstanding, basic (in shares)	66,660	66,082	66,522	65,723
Weighted-average shares outstanding, diluted (in shares)	68,009	66,082	66,522	65,723
Other comprehensive income (loss):
Unrealized income (loss) on derivative instruments, net of income taxes	$ 538	$ (661)	$ 177	$ 2,376
Other income (loss)	513	268	(31)	1,830
Total other comprehensive income (loss)	1,051	(393)	146	4,206
Total comprehensive income (loss)	1,841	(9,287)	(3,083)	(8,808)
Less: Comprehensive loss attributable to noncontrolling interests	(91)	(449)	(62)	(1,291)
Total comprehensive income (loss) attributable to NxStage Medical, Inc.	$ 1,932	$ (8,838)	$ (3,021)	$ (7,517)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (3,229)	$ (13,014)
Adjustments to reconcile net loss to net cash flow from operating activities:
Depreciation and amortization	25,630	25,321
Stock-based compensation	7,061	8,684
Other	1,636	1,183
Changes in operating assets and liabilities:
Accounts receivable	(30,212)	2,443
Inventory	(20,726)	(18,154)
Prepaid expenses and other assets	(198)	604
Accounts payable	5,150	(1,886)
Accrued expenses and other liabilities	7,081	(1,286)
Deferred revenues	28,514	(1,906)
Net cash provided by operating activities	20,707	1,989
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired	0	(100)
Purchase of cost method investment	0	(2,500)
Purchases of property and equipment	(4,364)	(7,550)
Net cash used in investing activities	(4,364)	(10,150)
Cash flows from financing activities:
Issuance of shares under stock incentive plans, net of payroll taxes paid	2,067	11,019
Proceeds from loans, lines of credit and capital lease obligations	0	452
Repayments on loans and lines of credit	(64)	(126)
Repayments on capital leases	(1,191)	(981)
Net cash provided by financing activities	812	10,364
Foreign exchange effect on cash and cash equivalents	(139)	1,144
Increase in cash and cash equivalents	17,016	3,347
Cash and cash equivalents, beginning of period	64,928	59,632
Cash and cash equivalents, end of period	$ 81,944	$ 62,979

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 81,944	$ 64,928
Accounts receivable, net	66,127	31,625
Inventory	53,353	49,212
Prepaid expenses and other current assets	9,819	7,609
Total current assets	211,243	153,374
Property and equipment, net	55,106	60,262
Field equipment, net	22,925	24,264
Deferred cost of revenues	33,012	31,410
Intangible assets, net	6,131	7,660
Goodwill	42,748	42,748
Other assets	6,284	5,911
Total assets	377,449	325,629
Current liabilities:
Accounts payable	19,811	14,785
Accrued expenses	34,854	27,985
Current portion of long-term debt	101	101
Other current liabilities	3,989	4,559
Total current liabilities	58,755	47,430
Deferred revenues	75,568	46,874
Long-term debt	444	520
Other long-term liabilities	17,069	17,824
Total liabilities	151,836	112,648
Commitments and contingencies (Note 10)
Noncontrolling interests subject to put provisions	(291)	(165)
Stockholders’ equity:
Undesignated preferred stock: par value $0.001 per share, 5,000,000 shares authorized; no shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively	0	0
Common stock: par value $0.001 per share, 100,000,000 shares authorized; 67,756,628 and 67,341,819 shares issued as of September 30, 2018 and December 31, 2017, respectively	68	67
Additional paid-in capital	667,620	657,640
Accumulated deficit	(418,799)	(421,593)
Accumulated other comprehensive loss	(3,527)	(3,673)
Treasury stock, at cost: 1,083,013 and 1,046,870 shares as of September 30, 2018 and December 31, 2017, respectively	(20,170)	(19,283)
Total NxStage Medical, Inc. stockholders' equity	225,192	213,158
Noncontrolling interests not subject to put provisions	712	(12)
Total stockholders' equity	225,904	213,146
Total liabilities and stockholders’ equity	$ 377,449	$ 325,629