Natus Medical Reports 2013 Financial Results

Natus Medical Inc. has announced its fourth quarter and full year financial results for fiscal year 2013, which ended on Dec. 31.

For the fourth quarter ended Dec. 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.

For the twelve months ended Dec. 31 2013, the Natus 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 FY2013.

Natus 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 percent 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 its total debt was reduced by $10 million.

“We exceeded our revenue and earnings guidance and achieved record profitability,” said Jim Hawkins, president and CEO of Natus. “Our non-GAAP operating profit margin of 19.1 percent was extremely satisfying. As a result, we have established a new long term annual non-GAAP operating profit margin goal of 20 percent. 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.

“The record 2013 results were highlighted by non-GAAP earnings growth of 61 percent to $1.03,” added Hawkins. “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. 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, Natus 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 percent to 60 percent over the first quarter of 2013 non-GAAP earnings per share of $0.15.

San Carlos, Calif.-based Natus Medical makes medical devices and software.