Natus Medical Incorporated (NASDAQ: BABY) today announced financial results for the fourth quarter and full year ended December 31, 2013.
For the fourth quarter ended December 31, 2013, the Company reported revenue of $90.6 million, compared to $90.8 million in the fourth quarter of the 2012. Included in the Company's 2012 fourth quarter revenues were $2.2 million of one-time shipments of proprietary product to CareFusion. Natus agreed to manufacture this product for CareFusion through a supply agreement that was part of the purchase of Nicolet. Net income for the quarter was a record $9.1 million, or $0.29 per diluted share compared with net income of $5.0 million, or $0.17 per diluted share, in the fourth quarter of 2012.
For the twelve months ended December 31, 2013, the Company reported revenue of $344.1 million, compared to $292.3 million reported in 2012. Net income was a record $22.9 million, or $0.74 per diluted share, compared with a net income of $3.9 million, or $0.13 per diluted share, for the twelve months ended December 31, 2012.
The Company reported record non-GAAP earnings per share of $0.37 per diluted share for the fourth quarter 2013, up 23% from the $0.30 per diluted share reported for the fourth quarter of 2012, and $1.03 per diluted share for the twelve months ended December 31, 2013, up 61% from the $0.64 per diluted share reported for the same period in the previous year.
The Company's cash and cash equivalents increased $12 million to $56.1 million during the quarter while total debt was reduced by $10 million.
"I am very pleased to report our fourth quarter results. We exceeded our revenue and earnings guidance and achieved record profitability. Our non-GAAP operating profit margin of 19.1% was extremely satisfying. As a result, we have established a new long term annual non-GAAP operating profit margin goal of 20%," said Jim Hawkins, President and Chief Executive Officer of the Company. "Our international revenues were higher than expected during the quarter with solid growth in the Pacific Rim and improving sales in Europe, while our domestic business remained stable." continued Mr. Hawkins.
"The record 2013 results were highlighted by non-GAAP earnings growth of 61% to $1.03. Other major achievements include significantly improving operating margins, the successful integration of the Nicolet and Grass acquisitions and the reorganization of the Company into two business units - Neurology and Newborn Care," Hawkins added. "Looking forward to 2014, we believe we are well positioned to continue to achieve solid earnings growth and increased cash generation."
As previously announced, for the first quarter of 2014, the Company expects to report revenue of $82 million to $86 million and non-GAAP earnings per share of $0.21 to $0.24, an increase of 40% to 60% over the first quarter of 2013 non-GAAP earnings per share of $0.15.
The Company updated its non-GAAP earnings guidance for the full year 2014 and now expects to report non-GAAP earnings per share of $1.14 to $1.18, an increase from previous guidance of $1.12 to $1.16. Full year 2014 revenue guidance remained unchanged at $345 million to $350 million.
Use of Non-GAAP Financial Measures
The Company's non-GAAP results exclude amortization expense associated with certain acquisition-related intangibles, restructuring charges, and direct costs of acquisitions. The Company's non-GAAP earnings guidance includes the impact of expensing employee share based compensation. All non-GAAP earnings per share amounts are on a diluted basis. A reconciliation between non-GAAP and GAAP financial measures is included on page 6 of this press release.
The Company believes that the presentation of results excluding these charges provides meaningful supplemental information to both management and investors that is indicative of the Company's core operating results. Therefore, the Company believes these non-GAAP financial measures facilitate comparison of operating results across reporting periods.
The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company's performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for or superior to financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated.
Natus Medical Incorporated