Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) of the

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 30, 2024

AtriCure, Inc.

(Exact name of registrant as specified in charter)


Delaware	000-51470	34-1940305
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

7555 Innovation Way, Mason OH 45040

(Address of Principal Executive Offices, and Zip Code)

(513) 755-4100

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


o			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.001 par value	ATRC	NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02. Results of Operations and Financial Condition.

On July 30, 2024, AtriCure, Inc. issued a press release regarding its financial results for the second quarter ended June 30, 2024. The Company will hold a conference call on July 30, 2024 at 4:30 p.m. Eastern Time to discuss the financial results. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

The information in Item 2.02 of Form 8-K and in the press release attached as Exhibit 99.1 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in each of Item 2.02 of this Form 8-K and Exhibit 99.1 shall not be incorporated by reference in any filing or other document under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing or document.

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits


No.						Description
99.1						Press Release dated July 30, 2024 relating to financial results for the second quarter ended June 30, 2024.
104						Cover Page Interactive Data File--the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		ATRICURE, INC.

Dated:	July 30, 2024	By:	/s/ Angela L. Wirick
			Angela L. Wirick
			Chief Financial Officer


			Exhibit 99.1

For immediate release

July 30, 2024

AtriCure Reports Second Quarter 2024 Financial Results

•Worldwide revenue of $116.3 million – an increase of 15.2% year over year

•Positive cash flow generation of $8.1 million in second quarter 2024

MASON, Ohio, July 30, 2024 – AtriCure, Inc. (Nasdaq: ATRC), a leading innovator in surgical treatments and therapies for atrial fibrillation (Afib), left atrial appendage (LAA) management and post-operative pain management, today announced second quarter 2024 financial results.

“Our second quarter results reflect strong growth worldwide, underscored by our pain management and open AtriClip® franchises, as we continued to deliver exceptional patient outcomes across all therapies, while driving positive cash flow,” said Michael Carrel, President and Chief Executive Officer at AtriCure. “Entering the second half of 2024, we are advancing several clinical initiatives including our LeAAPS™ stroke reduction trial and introducing new products across our markets, with two cryoSPHERE® probes to reduce freeze times and the most advanced, smallest profile AtriClip® device. We also remain focused on improving the efficiency of our business.”

Second Quarter 2024 Financial Results

Revenue for the second quarter 2024 was $116.3 million, an increase of 15.2% over second quarter 2023 revenue (15.4% on a constant currency basis), reflecting continued adoption of our products by physicians globally and an acceleration in U.S. pain management and international franchises, as well as U.S. open appendage management which outpaced overall growth. On a sequential basis, worldwide revenue for the second quarter 2024 increased approximately 7% from the first quarter.

U.S. revenue was $95.5 million, an increase of $10.6 million or 12.5%, compared to the second quarter 2023. U.S. revenue growth was driven by sales across key product lines, highlighted by cryoSPHERE® probes for post-operative pain management, the AtriClip® Flex·V® device in appendage management, and the ENCOMPASS® clamp in open ablation. International revenue increased $4.7 million or 29.4% (30.4% on a constant currency basis) to $20.7 million, realizing significant growth across all franchises and most major geographic regions.

Gross profit for the second quarter 2024 was $86.8 million compared to $77.1 million for the second quarter 2023. Gross margin was 74.7% for the second quarter 2024, a decrease of 168 basis points from the second quarter 2023, reflecting less favorable geographic and product mix, as well as increased product costs compared to the prior year. Loss from operations for the second quarter 2024 was $7.2 million, compared to $4.1 million for the second quarter 2023. Basic and diluted net loss per share was $0.17 for the second quarter 2024, compared to $0.11 for the second quarter 2023.

Adjusted EBITDA for the second quarter 2024 is $7.8 million, a decrease of $0.2 million from second quarter of 2023. Adjusted loss per share for the second quarter 2024 was $0.17, compared to $0.12 for the second quarter 2023.

Constant currency revenue, adjusted EBITDA and adjusted loss per share are non-GAAP financial measures. We discuss these non-GAAP financial measures and provide reconciliations to GAAP measures later in this release.

2024 Financial Guidance

AtriCure now expects full year 2024 revenue of approximately $456 million to $461 million, reflecting growth of approximately 15% at the midpoint of the range. Management continues to expect full year 2024 Adjusted EBITDA of approximately $26 million to $29 million, with improvements annually thereafter. Projected full year 2024 adjusted EBITDA represents a 34% to 49% increase over full year 2023. Full year 2024 adjusted loss per share is expected to be in the range of $0.74 to $0.82.

Conference Call

AtriCure will host a conference call at 4:30 p.m. Eastern Time on Tuesday, July 30, 2024 to discuss second quarter 2024 financial results. To access the webcast, please visit the Investors page of AtriCure’s corporate website at https://ir.atricure.com/events-and-presentations/events. Participants are encouraged to register more than 15 minutes before the webcast start time. A replay of the presentation will be available for 90 days following the presentation.

About AtriCure

AtriCure, Inc. provides innovative technologies for the treatment of Afib and related conditions. Afib affects more than 37 million people worldwide. Electrophysiologists, cardiothoracic and thoracic surgeons around the globe use AtriCure technologies for the treatment of Afib, reduction of Afib related complications, and post-operative pain management. AtriCure’s Isolator® Synergy™ Ablation System is the first medical device to receive FDA approval for the treatment of persistent Afib. AtriCure’s AtriClip® Left Atrial Appendage Exclusion System products are the most widely sold LAA management devices worldwide. AtriCure’s Hybrid AF™ Therapy is a minimally invasive procedure that provides a lasting solution for long-standing persistent Afib patients. AtriCure’s cryoICE cryoSPHERE® probes are cleared for temporary ablation of peripheral nerves to block pain, providing pain relief in cardiac and thoracic procedures. For more information, visit AtriCure.com or follow us on X (formerly known as Twitter) @AtriCure.

Forward-Looking Statements

This press release contains “forward-looking statements”– that is, statements related to future events that by their nature address matters that are uncertain. This press release also includes forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially. For details on the uncertainties that may cause our actual results to be materially different than those expressed in our forward-looking statements, visit http://www.atricure.com/forward-looking-statements as well as our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q which contain risk factors. Except where otherwise noted, the information contained in this release is as of July 30, 2024. We assume no obligation to update any forward-looking statements contained in this release as a result of new information or future events or developments, except as may be required by law.

Use of Non-GAAP Financial Measures

To supplement AtriCure’s condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, AtriCure provides certain non-GAAP financial measures in this release as supplemental financial metrics.

Revenue reported on a constant currency basis is a non-GAAP measure, calculated by applying previous period foreign currency exchange rates to each of the comparable periods. Management analyzes revenue on a constant currency basis to better measure the comparability of results between periods. Because changes in foreign currency exchange rates have a non-operating impact on revenue, the Company believes that evaluating growth in revenue on a constant currency basis provides an additional and meaningful assessment of revenue to both management and investors.

Adjusted EBITDA is calculated as net income (loss) before other income/expense (including interest), income tax expense, depreciation and amortization expense, share-based compensation expense, acquisition costs, legal settlement costs, impairment of intangible assets and change in fair value of contingent consideration liabilities. Management believes in order to properly understand short-term and long-term financial trends, investors may wish to consider the impact of these excluded items in addition to GAAP measures. The excluded items vary in frequency and/or impact on our continuing results of operations and management believes that the excluded items are typically not reflective of our ongoing core business operations and financial condition. Further, management uses adjusted EBITDA for both strategic and annual operating planning. A reconciliation of adjusted EBITDA reported in this release to the most comparable GAAP measure for the respective periods appears in the table captioned “Reconciliation of Non-GAAP Adjusted Income (Adjusted EBITDA)” later in this release.

Adjusted loss per share is a non-GAAP measure which calculates the net loss per share before non-cash adjustments in fair value of contingent consideration liabilities, impairment of intangible assets, debt extinguishment and legal settlements. A reconciliation of adjusted loss per share reported in this release to the most comparable GAAP measure for the respective periods appears in the table captioned “Reconciliation of Non-GAAP Adjusted Loss Per Share” later in this release.

The non-GAAP financial measures used by AtriCure may not be the same or calculated in the same manner as those used and calculated by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for AtriCure’s financial results prepared and reported in accordance with GAAP. We urge

investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financials measures included in this press release, and not to rely on any single financial measure to evaluate our business.

CONTACTS:

Angie Wirick

AtriCure, Inc.

Chief Financial Officer

(513) 755-5334

awirick@atricure.com

Marissa Bych

Gilmartin Group

Investor Relations

(415) 937-5402

marissa@gilmartinir.com

ATRICURE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Amounts)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
United States Revenue:
Open ablation	$	30,760	$	27,002	$	60,060	$	52,144
Minimally invasive ablation	11,828		11,370		24,146		21,007
Pain management	15,006		12,590		27,745		23,658
Total ablation	57,594		50,962		111,951		96,809
Appendage management	37,945		33,941		73,837		66,283
Total United States	95,539		84,903		185,788		163,092
International Revenue:
Open ablation	9,170		7,722		17,072		15,008
Minimally invasive ablation	1,764		1,375		3,878		3,242
Pain management	1,241		439		2,178		667
Total ablation	12,175		9,536		23,128		18,917
Appendage management	8,555		6,479		16,204		12,403
Total International	20,730		16,015		39,332		31,320
Total revenue	116,269		100,918		225,120		194,412
Cost of revenue	29,425		23,841		57,008		47,726
Gross profit	86,844		77,077		168,112		146,686
Operating expenses:
Research and development expenses	20,416		17,438		40,261		32,765
Selling, general and administrative expenses	73,596		63,783		145,936		123,847
Total operating expenses	94,012		81,221		186,197		156,612
Loss from operations	(7,168)		(4,144)		(18,085)		(9,926)
Other expense, net	(587)		(881)		(2,756)		(1,497)
Loss before income tax expense	(7,755)		(5,025)		(20,841)		(11,423)
Income tax expense	253		93		436		171
Net loss	$	(8,008)	$	(5,118)	$	(21,277)	$	(11,594)
Basic and diluted net loss per share	$	(0.17)	$	(0.11)	$	(0.45)	$	(0.25)
Weighted average shares used in computing net loss per share:
Basic and diluted	46,909		46,266		46,814		46,187

ATRICURE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

(Unaudited)


	June 30, 2024		December 31, 2023
Assets
Current assets:
Cash, cash equivalents, and short-term investments	$	114,020	$	137,285
Accounts receivable, net	55,568		52,501
Inventories	73,654		67,897
Prepaid and other current assets	9,610		8,563
Total current assets	252,852		266,246

Property and equipment, net	42,175		42,435
Operating lease right-of-use assets	4,030		4,324
Goodwill and intangible assets, net	295,019		298,767
Other noncurrent assets	3,197		2,160
Total Assets	$	597,273	$	613,932
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities	$	58,684	$	72,036
Current lease liabilities	2,541		2,533
Total current liabilities	61,225		74,569
Long-term debt	61,865		60,593
Finance and operating lease liabilities	10,910		11,368

Other noncurrent liabilities	1,188		1,234
Total Liabilities	135,188		147,764
Stockholders' Equity:
Common stock	49		48
Additional paid-in capital	840,939		824,170
Accumulated other comprehensive loss	(569)		(993)
Accumulated deficit	(378,334)		(357,057)
Total Stockholders' Equity	462,085		466,168
Total Liabilities and Stockholders' Equity	$	597,273	$	613,932

ATRICURE, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS

(In Thousands)

(Unaudited)

Reconciliation of Non-GAAP Adjusted Income (Adjusted EBITDA)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net loss, as reported	$	(8,008)	$	(5,118)	$	(21,277)	$	(11,594)
Income tax expense	253		93		436		171
Other expense, net	587		881		2,756		1,497
Depreciation and amortization expense	4,527		3,580		8,979		6,523
Share-based compensation expense	10,391		8,995		19,656		17,755
Gain from legal settlements	—		(412)		—		(4,412)
Non-GAAP adjusted income (adjusted EBITDA)	$	7,750	$	8,019	$	10,550	$	9,940

Reconciliation of Non-GAAP Adjusted Loss Per Share


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net loss, as reported	$	(8,008)	$	(5,118)	$	(21,277)	$	(11,594)
Loss on debt extinguishment	—		—		1,362		—
Gain from legal settlements	—		(412)		—		(4,412)


Non-GAAP adjusted net loss	$	(8,008)	$	(5,530)	$	(19,915)	$	(16,006)
Basic and diluted adjusted net loss per share	$	(0.17)	$	(0.12)	$	(0.43)	$	(0.35)
Weighted average shares used in computing adjusted net loss per share
Basic and diluted	46,909		46,266		46,814		46,187

Cover	Jul. 30, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jul. 30, 2024
Entity Registrant Name	AtriCure, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	000-51470
Entity Tax Identification Number	34-1940305
Entity Address, Address Line One	7555 Innovation Way
Entity Address, City or Town	Mason
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45040
City Area Code	513
Local Phone Number	755-4100
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $.001 par value
Trading Symbol	ATRC
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Central Index Key	0001323885
Amendment Flag	false