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Natus Medical Announces Third Quarter 2019 Financial Results

  • Third quarter revenue of $123.5 million

  • Third quarter GAAP earnings per diluted share of $0.25

  • Third quarter non-GAAP earnings per diluted share of $0.36

PLEASANTON, Calif., Oct. 24, 2019 (GLOBE NEWSWIRE) -- Natus Medical Incorporated (NASDAQ:NTUS) (the “Company” or “Natus”), a leading provider of medical device solutions focused on the diagnosis and treatment of central nervous and sensory system disorders for patients of all ages, today announced financial results for the three and nine months ended September 30, 2019.

Key Results During the Quarter

  • Achieved organic revenue growth of 2% after divestitures

  • Reduced inventory by $1.6 million during the quarter

  • Reduced days sales outstanding by six days year-over-year

  • Generated $23.9 million in operating cash flow

  • Reduced debt by $10.0 million

For the third quarter ended September 30, 2019, the Company reported revenue of $123.5 million, a decrease of 5.4% compared to $130.6 million reported for the third quarter 2018. GAAP gross profit margin was 59.1% during the third quarter of 2019 compared to 59.0% in the third quarter 2018. GAAP net income was $8.5 million, or $0.25 per diluted share, compared with GAAP net loss of $5.6 million, or $0.17 per share in the third quarter 2018.

Non-GAAP earnings per diluted share was $0.36 for the third quarter 2019, compared to $0.40 in the third quarter 2018. Non-GAAP net income was $12.1 million for the third quarter 2019 compared to $13.4 million in the third quarter 2018. Non-GAAP gross profit margin was 61.3% in the third quarter 2019 compared to 60.6% reported for the third quarter of 2018.

For the nine months ended September 30, 2019, the Company reported revenue of $363.8 million, a decrease of 6.7% compared to $389.9 million reported for the same period in 2018. GAAP gross profit margin was 58.1% vs. 57.4% reported for the same period in 2018. GAAP net loss was $17.4 million, or $0.52 per share, compared with GAAP net loss of $11.3 million, or $0.34 per share in the same period in 2018.

Non-GAAP earnings per diluted share was $0.79 for the nine months in 2019, compared to $0.99 in the same period in 2018. The Company reported non-GAAP net income of $26.5 million for the nine months ended September 30, 2019, compared to the prior year's non-GAAP net income of $33.0 million.

“Our third quarter results represent continued improvement in our business. Our performance in the quarter drove significant cash flow from operations of $23.9 million. Revenue from our neuro end market grew 8% adjusted for divestitures for the second consecutive quarter. Our newborn care and hearing & balance markets were down year-over-year, but showed growth in phototherapy, vision screening and hearing fitting devices. Overall, we achieved revenue growth of 2%, adjusted for divestitures and discontinued products,” said Jonathan Kennedy, President and Chief Executive Officer of Natus. “During the quarter, we continued to execute our strategic plan of focusing our efforts in the central nervous systems and sensory markets and believe we have achieved significant improvements in our operational efficiency.”

Financial Guidance

For the fourth quarter of 2019, the Company's revenue guidance is expected to be between $128.0 million and $132.0 million and non-GAAP earnings per share guidance is expected to be between $0.44 and $0.50.

For the full year 2019, the Company updated its expected revenue guidance to be between $492.0 million and $496.0 million and non-GAAP expected earnings per share guidance to be between $1.23 and $1.29.

The Company's non-GAAP earnings per share guidance excludes charges for amortization expense associated with intangible assets from prior acquisitions, certain other expenses, and related tax effects, which the Company expects to be approximately $6.7 million and $50.5 million for the fourth quarter 2019 and full year, respectively, and which the Company expects will reduce GAAP earnings per share by approximately $0.19 and $1.49 for the respective periods.

Use of Non-GAAP Financial Measures

The Company presents in this release its non-GAAP net income, non-GAAP earnings per share, non-GAAP gross margin and non-GAAP operating margin results which exclude amortization expense associated with certain acquisition-related intangibles, restructuring charges, certain discrete items, direct costs of acquisitions, and the related tax effects. A reconciliation between non-GAAP and GAAP financial measures is included in this press release.

The Company believes that the presentation of results excluding these charges or gains provides meaningful supplemental information to both management and investors that is indicative of the Company's core operating results and better reflects the ongoing economics of the Company's operations. The Company believes these non-GAAP financial measures facilitate comparison of operating results across reporting periods.

Specifically, the Company excludes the following charges, gains, and their related tax effects in the calculation of non-GAAP net income, non-GAAP earnings per share and non-GAAP operating expense: 1) Non-cash amortization expense associated with certain acquisition-related intangibles. The charges reflect an estimate of the cost of acquired intangible assets over their estimated useful lives. 2) Restructuring and other non-recurring charges. The Company has over time completed multiple acquisitions of other companies and businesses. Following an acquisition the Company will, as it determines appropriate, initiate restructuring events to eliminate redundant costs. Restructuring expenses, which are excluded in the non-GAAP items, are exclusively related to permanent reductions in our workforce and redundant facility closures. Other non-recurring costs are associated with the transition of the executive management team. These costs can include stock compensation from accelerated vesting of stock, severance payouts and related payroll expenses. 3) Certain discrete items. These items represent significant infrequent charges or gains that management believes should be viewed outside of normal operating results, and each significant discrete transaction is evaluated to determine whether it should be excluded from non-GAAP reporting. These items are specifically identified when they occur. 4) Direct costs of acquisitions. These are direct acquisition-related costs that occur when the Company makes an acquisition, such as professional fees, due diligence costs, and earn-out adjustments.

The Company applies GAAP methodologies in computing its non-GAAP tax provision by determining the annual expected effective tax rate after taking into account items excluded for non-GAAP financial reporting purposes. The Company’s non-GAAP tax expense and its non-GAAP effective tax rate are generally higher than its GAAP tax expense and GAAP effective tax rate because the income subject to taxes would be higher due to the effect of the expenses excluded from non-GAAP financial reporting. The nature of each quarterly discrete transaction will be evaluated to determine whether it should be excluded from non-GAAP reporting.

The Company's management uses these non-GAAP financial measures in assessing the Company's performance and when planning, forecasting, and analyzing future periods and the Company believes that investors also benefit from being able to refer to these non-GAAP financial measures along with the GAAP operating results. 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.

Conference Call

Natus has scheduled a conference call to discuss this announcement beginning at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) today, October 24, 2019. Individuals interested in listening to the conference call may do so by dialing 1-844-634-1441 for domestic callers, or 1-508-637-5658 for international callers, and entering reservation code 8582045. A telephone replay will be available for 48 hours following the conclusion of the call by dialing 1-855-859-2056 for domestic callers, or 1-404-537-3406 for international callers, and entering reservation code 8582045. The conference call also will be available real-time via the Internet at http://investor.natus.com, and a recording of the call will be available on the Company’s Web site for 90 days following the completion of the call.

About Natus Medical Incorporated

Natus is a leading provider of medical device solutions focused on the diagnosis and treatment of central nervous and sensory system disorders for patients of all ages.

Additional information about Natus Medical can be found at www.natus.com.

Forward-Looking Statements

This press release contains forward-looking statements, which are generally statements that are not historical facts. Forward-looking statements can be identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates”, “plans”, “will”, “outlook” and similar expressions. Forward-looking statements are based on management's current plans, estimates, assumptions and projections, and speak only as of the date they are made. These forward-looking statements include, without limitation, statements regarding the Company's ability to achieve improvements in operational efficiency and to execute its strategic plans. These statements relate to current estimates and assumptions of our management as of the date of this press release and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements are only predictions and the actual events or results may differ materially. Natus cannot provide any assurance that its future results or the results implied by the forward-looking statements will meet expectations. The Company's future results could differ materially due to a number of factors, including the ability of the Company to realize the anticipated benefits from its new structure or from its consolidation strategy, effects of competition, the Company's ability to successfully integrate and achieve its profitability goals from recent acquisitions, the demand for Natus products and services, the impact of adverse global economic conditions and changing governmental regulations, including foreign exchange rate changes, on the Company's target markets, the Company's ability to expand its sales in international markets, the Company's ability to maintain current sales levels in a mature domestic market, the Company's ability to control costs, risks associated with bringing new products to market, and the Company's ability to fulfill product orders on a timely basis, as well as those factors identified under the heading Item 1A “Risk Factors” in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018. Natus disclaims any obligation to update information contained in any forward looking statement, except as required by law.

Natus Medical Incorporated
Drew Davies
Executive Vice President and Chief Financial Officer
(925) 223-6700
InvestorRelations@Natus.com

NATUS MEDICAL INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)

(in thousands, except per share amounts)

Three Months Ended

Nine Months Ended

September 30,
2019

September 30,
2018

September 30,
2019

September 30,
2018

Revenue

$

123,463

$

130,638

$

363,759

$

389,900

Cost of revenue

48,706

51,583

147,240

159,849

Intangibles amortization

1,736

1,930

5,237

6,235

Gross profit

73,021

77,125

211,282

223,816

Gross profit margin

59.1

%

59.0

%

58.1

%

57.4

%

Operating expenses:

Marketing and selling

30,848

33,200

96,813

102,474

Research and development

14,114

15,127

39,941

46,186

General and administrative

15,113

15,799

44,108

56,966

Intangibles amortization

3,751

4,477

11,300

13,434

Restructuring

1,106

11,432

41,147

14,182

Total operating expenses

64,932

80,035

233,309

233,242

Income (loss) from operations

8,089

(2,910

)

(22,027

)

(9,426

)

Interest expense

(1,165

)

(1,644

)

(4,059

)

(5,240

)

Other income (expense)

(444

)

918

(862

)

296

Income (loss) before tax

6,480

(3,636

)

(26,948

)

(14,370

)

Provision for income tax expense (benefit)

(1,981

)

1,940

(9,596

)

(3,069

)

Net income (loss)

$

8,461

$

(5,576

)

$

(17,352

)

$

(11,301

)

Earnings (loss) per share:

Basic

$

0.25

$

(0.17

)

$

(0.52

)

$

(0.34

)

Diluted

$

0.25

$

(0.17

)

$

(0.52

)

$

(0.34

)

Weighted-average shares:

Basic

33,655

33,321

33,666

32,982

Diluted

33,738

33,321

33,666

32,982


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

September 30,

June 30,

December 31,

2019

2019

2018

ASSETS

Current assets:

Cash and investments

$

63,062

$

52,009

$

56,373

Accounts receivable

108,964

106,934

127,041

Inventories

75,107

78,275

79,736

Other current assets

27,735

28,022

22,625

Total current assets

274,868

265,240

285,775

Property and equipment

25,095

26,547

22,913

Operating lease right-of-use assets

16,059

17,217

Goodwill and intangible assets

265,152

274,725

287,097

Deferred income tax

21,955

19,187

22,639

Other assets

25,984

25,084

19,716

Total assets

$

629,113

$

628,000

$

638,140

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

30,096

$

25,235

$

28,805

Current portion of long-term debt

35,000

35,000

35,000

Accrued liabilities

56,657

51,605

52,568

Deferred revenue

19,242

19,861

17,073

Current portion of operating lease liabilities

5,901

5,960

Liabilities and accrued impairment held for sale

Total current liabilities

146,896

137,661

133,446

Long-term liabilities:

Long-term debt

34,618

44,570

69,474

Deferred income tax

8,129

8,649

16,931

Operating lease liabilities

13,112

14,326

Other long-term liabilities

20,200

21,237

19,845

Total liabilities

222,955

226,443

239,696

Total stockholders’ equity

406,158

401,557

398,444

Total liabilities and stockholders’ equity

$

629,113

$

628,000

$

638,140


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(in thousands)

Three Months Ended

Nine Months Ended

September
30, 2019

September
30, 2018

September
30, 2019

September
30, 2018

Operating activities:

Net income (loss)

$

8,461

$

(5,576

)

$

(17,352

)

$

(11,301

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Provision for losses on accounts receivable

534

1,782

1,494

5,871

Depreciation and amortization

7,519

8,958

22,946

25,652

(Gain) loss on disposal of property and equipment

250

482

410

Warranty reserve

911

(902

)

2,588

73

Share-based compensation

1,915

9,814

6,377

15,446

Impairment charge for held for sale assets

24,571

Changes in operating assets and liabilities:

Accounts receivable

(1,880

)

891

17,290

2,955

Inventories

401

(2,700

)

(2,074

)

(5,183

)

Prepaid expenses and other assets

417

743

(10,643

)

(14,398

)

Accounts payable

5,124

(3,435

)

1,607

(3,799

)

Accrued liabilities

3,693

(2,446

)

1,073

968

Deferred revenue

(368

)

58

2,371

1,745

Deferred income tax

(2,861

)

191

(2,817

)

517

Net cash provided by operating activities

23,866

7,628

47,913

18,956

Investing activities:

Acquisition of businesses, net of cash acquired

151

Purchases of property and equipment

(953

)

(1,740

)

(3,872

)

(5,127

)

Purchase of intangible assets

(339

)

(13

)

(637

)

Net cash used in investing activities

(953

)

(2,079

)

(3,885

)

(5,613

)

Financing activities:

Proceeds from stock option exercises and ESPP

519

5,423

2,193

10,515

Repurchase of common stock

(5,629

)

Taxes paid related to settlement of equity awards

(23

)

(4,847

)

(1,596

)

(5,173

)

Principal payments of financing lease liability

(139

)

(404

)

Contingent consideration earn-out

(147

)

Payments on borrowings

(10,000

)

(5,000

)

(35,000

)

(40,000

)

Net cash used in financing activities

(9,643

)

(4,424

)

(34,807

)

(40,434

)

Exchange rate changes effect on cash and cash equivalents

(2,217

)

(1,593

)

(2,532

)

(7,419

)

Net decrease in cash and cash equivalents

11,053

(468

)

6,689

(34,510

)

Cash and cash equivalents, beginning of period

52,009

54,908

56,373

88,950

Cash and cash equivalents, end of period

$

63,062

$

54,440

$

63,062

$

54,440


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP ADJUSTMENTS (unaudited)

(in thousands, except per share amounts)

Three Months Ended

Nine Months Ended

September
30, 2019

September
30, 2018

September
30, 2019

September
30, 2018

GAAP based results:

Income (loss) before provision for income tax

$

6,480

$

(3,636

)

$

(26,948

)

$

(14,370

)

Non-GAAP adjustments:

Intangibles amortization (COGS)

1,736

1,930

5,237

6,235

Recall accrual and remediation efforts (COGS)

(1,198

)

67

1,375

Restructuring and other non-recurring costs (COGS)

846

989

873

Direct costs of acquisitions (COGS)

917

402

1,040

3,882

Intangibles amortization (OPEX)

3,751

4,483

11,300

13,439

Direct costs of acquisitions (M&S)

7

14

40

423

Recall accrual and remediation efforts (R&D)

1,288

4,875

Direct costs of acquisitions (R&D)

61

50

152

235

Restructuring and other non-recurring costs (OPEX)

1,855

12,904

42,112

18,108

Direct costs of acquisitions (G&A)

630

502

764

3,682

Direct costs of acquisitions (OI&E)

366

Extraordinary annual meeting expenses

15

2,230

Litigation (OPEX)

5

702

996

Non-GAAP income before provision for income tax

15,442

17,600

35,455

42,349

Income tax expense, as adjusted

$

3,331

$

4,227

$

8,922

$

9,357

Non-GAAP net income

$

12,111

$

13,373

$

26,533

$

32,992

Non-GAAP earnings per share:

Basic

$

0.36

$

0.40

$

0.79

$

1.00

Diluted

$

0.36

$

0.40

$

0.79

$

0.99

Weighted-average shares used to compute

Basic non-GAAP earnings per share

33,655

33,321

33,666

32,982

Diluted non-GAAP earnings per share

33,738

33,551

33,772

33,388


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP ADJUSTMENTS (unaudited)

(in thousands, except per share amounts)

Three Months Ended

Nine Months Ended

September 30,
2019

September 30,
2018

September 30,
2019

September 30,
2018

GAAP Gross Profit

$

73,021

$

77,125

$

211,282

$

223,816

Amortization of intangibles

1,736

1,930

5,237

6,235

Direct cost of acquisitions

917

402

1,040

3,882

Recall accrual and remediation efforts

(1,198

)

67

1,375

Restructuring and other non-recurring costs

846

989

873

Non-GAAP Gross Profit

$

75,674

$

79,105

$

218,615

$

236,181

Non-GAAP Gross Margin

61.3

%

60.6

%

60.1

%

60.6

%

GAAP Operating Income (Loss)

$

8,089

$

(2,910

)

$

(22,027

)

$

(9,426

)

Amortization of intangibles

5,487

6,413

16,537

19,674

Recall accrual and remediation efforts

90

67

6,250

Litigation

5

702

996

Restructuring and other non-recurring costs

1,855

13,750

43,101

18,981

Direct cost of acquisitions

1,615

968

1,996

8,222

Extraordinary annual meeting expenses

15

2,230

Non-GAAP Operating Profit

$

17,051

$

18,326

$

40,376

$

46,927

Non-GAAP Operating Margin

13.8

%

14.0

%

11.1

%

12.0

%

GAAP Income Tax Benefit (Expense)

$

(1,981

)

$

1,940

$

(9,596

)

$

(3,069

)

Effect of accumulated change of pretax income

3,141

(15,493

)

8,847

(4,701

)

Effect of change in annual expected tax rate

(1,135

)

15,704

(1,740

)

14,120

Repatriation tax adjustment

(177

)

101

Stock-based compensation adjustment

791

1,621

Valuation allowance for GAAP purposes

1,285

1,285

Restructuring and other expenses

3,306

11,588

Non-GAAP Income Tax Expense

$

3,331

$

4,227

$

8,922

$

9,357

Three Months Ended

Year Ended

December 31, 2019

December 31, 2019

GAAP EPS Guidance

$0.24 - $0.30

($0.27) - ($0.21)

Amortization of intangibles

0.16

0.65

Restructuring and other non-recurring costs

1.28

Litigation

0.02

Direct cost of acquisitions

0.06

Tax effect

0.03

(0.52

)

Non-GAAP EPS Guidance

$0.44 - $0.50

$1.23 - $1.29


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES

GROSS MARGIN BY END MARKETS (unaudited)

(in thousands)

Three Months Ended

Nine Months Ended

September 30,
2019

September 30,
2018

September 30,
2019

September 30,
2018

Neuro:

Revenue

$

72,192

$

69,762

$

206,179

$

206,124

Cost of revenue

25,571

25,251

75,785

79,511

Intangibles amortization

938

1,042

2,819

3,507

Gross profit

$

45,683

$

43,469

$

127,575

$

123,106

Gross profit margin

63.3

%

62.3

%

61.9

%

59.7

%

Newborn care:

Revenue

$

27,005

$

34,220

$

83,105

$

98,697

Cost of revenue

11,058

13,912

35,238

40,050

Intangibles amortization

64

119

193

358

Gross profit

$

15,883

$

20,189

$

47,674

$

58,289

Gross profit margin

58.8

%

59.0

%

57.4

%

59.1

%

Hearing & balance:

Revenue

$

24,266

$

26,656

$

74,475

$

85,079

Cost of revenue

12,077

12,420

36,217

40,288

Intangibles amortization

734

769

2,225

2,370

Gross profit

$

11,455

$

13,467

$

36,033

$

42,421

Gross profit margin

47.2

%

50.5

%

48.4

%

49.9

%

Consolidated:

Revenue

$

123,463

$

130,638

$

363,759

$

389,900

Cost of revenue

48,706

51,583

147,240

159,849

Intangibles amortization

1,736

1,930

5,237

6,235

Gross profit

$

73,021

$

77,125

$

211,282

$

223,816

Gross profit margin

59.1

%

59.0

%

58.1

%

57.4

%

Note: The revenue and gross margin for our AccuScreen® newborn hearing screening product has been reclassified from Hearing & Balance to Newborn Care for both the current and prior periods. Hearing & Balance was formerly name Audiology.


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP GROSS MARGIN BY END MARKETS (unaudited)

(in thousands)

Three Months Ended

Nine Months Ended

September 30, 2019

September 30, 2018

September 30, 2019

September 30, 2018

Neuro:

GAAP Gross Profit

$

45,683

$

43,469

$

127,575

$

123,106

Amortization of intangibles

938

1,042

2,819

3,507

Acquisition charges

917

402

1,040

3,832

Non-GAAP Gross Profit

$

47,538

$

44,913

$

131,434

$

130,445

Non-GAAP Gross Margin

65.8

%

64.4

%

63.7

%

63.3

%

Newborn care:

GAAP Gross Profit

$

15,883

$

20,189

$

47,674

$

58,289

Amortization of intangibles

64

119

193

358

Recall accrual and remediation efforts

(1,198

)

(571

)

1,375

Restructuring and other non-recurring costs

846

814

848

Non-GAAP Gross Profit

$

15,947

$

19,956

$

48,110

$

60,870

Non-GAAP Gross Margin

59.1

%

58.3

%

57.9

%

61.7

%

Hearing & balance:

GAAP Gross Profit

$

11,455

$

13,467

$

36,033

$

42,421

Amortization of intangibles

734

769

2,225

2,370

Acquisition charges

50

Recall accrual and remediation efforts

638

Restructuring and other non-recurring costs

175

25

Non-GAAP Gross Profit

$

12,189

$

14,236

$

39,071

$

44,866

Non-GAAP Gross Margin

50.2

%

53.4

%

52.5

%

52.7

%

Consolidated:

GAAP Gross Profit

$

73,021

$

77,125

$

211,282

$

223,816

Amortization of intangibles

1,736

1,930

5,237

6,235

Acquisition charges

917

402

1,040

3,882

Recall accrual and remediation efforts

(1,198

)

67

1,375

Restructuring and other non-recurring costs

846

989

873

Non-GAAP Gross Profit

$

75,674

$

79,105

$

218,615

$

236,181

Non-GAAP Gross Margin

61.3

%

60.6

%

60.1

%

60.6

%


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES

GEOGRAPHIC REVENUE (unaudited)

(in thousands)

Three Months Ended

Nine Months Ended

September 30,
2019

September 30,
2018

September 30,
2019

September 30,
2018

Consolidated Revenue:

United States

$

73,553

$

77,980

$

213,055

$

222,135

International

49,910

52,658

150,704

167,765

Totals

$

123,463

$

130,638

$

363,759

$

389,900

United States

60

%

60

%

59

%

57

%

International

40

%

40

%

41

%

43

%

Totals

100

%

100

%

100

%

100

%


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES

REVENUE AFTER EXITED PRODUCTS (unaudited)

(in thousands)

Three Months Ended

Nine Months Ended

Year Ended

September 30,
2019

September 30,
2018

September 30, 2
019

September 30,
2018

December 31,
2018**

December 31,
2017

Revenue

$

123.5

$

130.6

$

363.8

$

389.9

$

530.9

$

501.0

Newborn care*

(0.4

)

(5.2

)

(4.1

)

(15.4

)

(20.6

)

(35.0

)

Neuro*

(0.2

)

(3.2

)

(1.2

)

(10.9

)

(14.3

)

(14.6

)

Hearing & balance*

(1.5

)

(9.8

)

(7.9

)

(6.9

)

Revenue after exited products/ship holds

$

122.9

$

120.7

$

358.5

$

353.8

$

488.1

$

444.5

*Newborn care, Neuro, and Hearing & balance include exited businesses (GND, Neurocom, Medix) and other end of sales products.

**Year ended December 31, 2018 included $30.6M of Neurosurgery which did not exist before November 2017.