NuVasive Inc. (NUVA, Financial) filed Annual Report for the period ended 2011-12-31.
Nuvasive Inc has a market cap of $646.33 million; its shares were traded at around $15.3 with a P/E ratio of 26.38 and P/S ratio of 1.2.
Our total revenues increased $62.3 million in 2011 compared to 2010 and $107.9 million in 2010 compared to 2009, representing total revenue growth of 13% and 29%, respectively. Revenue from our Spine Surgery Products increased $43.7 million, or 11%, in 2011 compared to 2010 and $78.8 million, or 25%, in 2010 compared to 2009. Revenue from Biologics increased $9.1 million, or 10%, in 2011 compared to 2010 and $28.9 million, or 47%, in 2010 compared to 2009. Revenue from Monitoring Services increased $9.5 million, in 2011 compared to 2010, and $0.3 million from zero in 2010 compared to 2009. Total revenues were impacted by small unfavorable changes in price of approximately 1.7% in both 2011 and 2010 as compared to prior years.
The increases in sales, marketing and administrative expenses principally result from growth in our revenue and the overall growth of the Company, including: expenses that tend to vary based on revenue such as commissions, depreciation expense for surgical instrument sets, worldwide sales force headcount and shipping; expenses associated with investments in our worldwide infrastructure such as operating systems and real estate; legal expenses; and non-sales related headcount growth, offset by the decrease in depreciation expense due to the change in useful life of certain surgical instrument sets. As a percentage of revenue, sales, marketing and administrative expenses decreased in 2011 and 2010 compared to the prior years principally as a result of increased operating leverage in our expenses, as well as lower legal expenses incurred on non-Medtronic related litigation, relative to the 13% and 29% growth in revenue in 2011 and 2010, respectively, compared to the prior years.
Excluding the impact resulting from a change in an accounting estimate related to the useful life of certain surgical instrument sets in 2011, costs that tend to vary based on revenue increased $16.4 million and $39.2 million in 2011 and 2010, respectively, compared to the prior years. In 2011 as compared to 2010, the increases are slightly less than our increased revenue growth of approximately 13%, and in 2010 as compared to
Cash provided by operating activities was $63.0 million in 2011, compared to $65.8 million in 2010. The $2.9 million decrease in cash provided by operating activities in 2011 as compared to 2010 is primarily due to an increase in amounts paid for other current assets, including an overpayment of $11.2 million, which was refunded in January 2012, and increased payments related to accounts payable and accrued liabilities, offset by improved collections from accounts receivable. Cash provided by operating activities increased $19.4 million in 2010 as compared with 2009 primarily due to improvement in our profitability profile and an increase in non-cash expenses of depreciation, amortization and stock-based compensation. These increases were partially offset by the non-cash benefit resulting from the reversal of the valuation allowance on our domestic deferred tax assets.
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Nuvasive Inc has a market cap of $646.33 million; its shares were traded at around $15.3 with a P/E ratio of 26.38 and P/S ratio of 1.2.
Highlight of Business Operations:
On August 18, 2008, Medtronic filed suit against NuVasive in the United States District Court for the Southern District of California, alleging that certain of our products infringe, or contribute to the infringement of, U.S. patents owned by Medtronic. Trial in the first phase of the case began on August 20, 2011 and on September 20, 2011, a jury delivered an unfavorable verdict against us with respect to three Medtronic patents and a favorable verdict with respect to a NuVasive patent. Judgment was entered by the court on September 29, 2011. The jury awarded monetary damages of approximately $660,000 to NuVasive which includes back royalty payments. Additionally, the jury awarded monetary damages of approximately $101.2 million to Medtronic which includes lost profits and back royalties. Medtronic sought a permanent injunction against us with respect to the sale of our CoRoent XL, MaXcess Retractor and Helix ACP Cervical Plate. The court denied the motion; provided, however, Medtronic may continue to seek an injunction and may appeal the courts denial of their request. Additional damages, including interest and potential ongoing royalties may still be awarded. A final appealable judgment is expected in the coming months. While we intend to timely appeal the unfavorable verdict, we may be required to secure the amount of the judgment, or an even greater amount at the courts discretion, during the appeals process which could result in a material reduction in the liquidity required to run or grow our business. Should Medtronic receive an injunction or should the court award a much higher royalty rate in any appeal initiated by Medtronic, our ability to generate profits and cash flow, and, as a result, to invest in and grow our business, including the investment into new and innovative technologies may suffer.Our total revenues increased $62.3 million in 2011 compared to 2010 and $107.9 million in 2010 compared to 2009, representing total revenue growth of 13% and 29%, respectively. Revenue from our Spine Surgery Products increased $43.7 million, or 11%, in 2011 compared to 2010 and $78.8 million, or 25%, in 2010 compared to 2009. Revenue from Biologics increased $9.1 million, or 10%, in 2011 compared to 2010 and $28.9 million, or 47%, in 2010 compared to 2009. Revenue from Monitoring Services increased $9.5 million, in 2011 compared to 2010, and $0.3 million from zero in 2010 compared to 2009. Total revenues were impacted by small unfavorable changes in price of approximately 1.7% in both 2011 and 2010 as compared to prior years.
The increases in sales, marketing and administrative expenses principally result from growth in our revenue and the overall growth of the Company, including: expenses that tend to vary based on revenue such as commissions, depreciation expense for surgical instrument sets, worldwide sales force headcount and shipping; expenses associated with investments in our worldwide infrastructure such as operating systems and real estate; legal expenses; and non-sales related headcount growth, offset by the decrease in depreciation expense due to the change in useful life of certain surgical instrument sets. As a percentage of revenue, sales, marketing and administrative expenses decreased in 2011 and 2010 compared to the prior years principally as a result of increased operating leverage in our expenses, as well as lower legal expenses incurred on non-Medtronic related litigation, relative to the 13% and 29% growth in revenue in 2011 and 2010, respectively, compared to the prior years.
Excluding the impact resulting from a change in an accounting estimate related to the useful life of certain surgical instrument sets in 2011, costs that tend to vary based on revenue increased $16.4 million and $39.2 million in 2011 and 2010, respectively, compared to the prior years. In 2011 as compared to 2010, the increases are slightly less than our increased revenue growth of approximately 13%, and in 2010 as compared to
Cash provided by operating activities was $63.0 million in 2011, compared to $65.8 million in 2010. The $2.9 million decrease in cash provided by operating activities in 2011 as compared to 2010 is primarily due to an increase in amounts paid for other current assets, including an overpayment of $11.2 million, which was refunded in January 2012, and increased payments related to accounts payable and accrued liabilities, offset by improved collections from accounts receivable. Cash provided by operating activities increased $19.4 million in 2010 as compared with 2009 primarily due to improvement in our profitability profile and an increase in non-cash expenses of depreciation, amortization and stock-based compensation. These increases were partially offset by the non-cash benefit resulting from the reversal of the valuation allowance on our domestic deferred tax assets.
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