NTUS - Natus Medical Announces Fourth Quarter and Full Year 2019 Financial Results

February, 06 2020 04:05 PM Natus Medical Incorporated

Fourth quarter revenue of $131.8 million
Fourth quarter GAAP earnings per diluted share of $0.10
Fourth quarter non-GAAP earnings per diluted share of $0.46
Provides annual revenue and earnings guidance for 2020

PLEASANTON, Calif., Feb. 06, 2020 (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 months and full year ended December 31, 2019.

Key Results During the Quarter

GAAP gross profit margins increased 440 basis points during the fourth quarter year over year
GAAP and Non-GAAP EPS increased $0.45 and $0.03, respectively
Reduced inventory by $8.5 million during the fourth quarter
Generated $12.7 million in operating cash flow
Reduced debt by $15.0 million, with net cash exceeding net debt

For the fourth quarter ended December 31, 2019, the Company reported revenue of $131.8 million, a decrease of 6.5% compared to $141.0 million reported for the fourth quarter 2018. GAAP gross profit margin was 61.3% during the fourth quarter of 2019 compared to 56.9% in the fourth quarter 2018. GAAP net income was $3.2 million, or $0.10 per diluted share, compared with GAAP net loss of $11.6 million, or $0.35 per share in the fourth quarter 2018.

Non-GAAP earnings per diluted share was $0.46 for the fourth quarter 2019, compared to $0.43 in the fourth quarter 2018. Non-GAAP net income was $15.4 million for the fourth quarter 2019 compared to $14.5 million in the fourth quarter 2018. Non-GAAP gross profit margin was 62.1% in the fourth quarter 2019 compared to 58.2% reported for the fourth quarter of 2018.

For the full year ended December 31, 2019, the Company reported revenue of $495.5 million, a decrease of 6.7% compared to $530.9 million reported for the same period in 2018. GAAP gross profit margin was 59.0% vs. 57.3% reported for the same period in 2018. GAAP net loss was $14.1 million, or $0.42 per share, compared with GAAP net loss of $22.9 million, or $0.69 per share in the same period in 2018.

Non-GAAP earnings per diluted share was $1.24 for the full year ended December 31, 2019, compared to $1.42 in the same period in 2018. The Company reported non-GAAP net income of $42.0 million for the year ended December 31, 2019, compared to the prior year's non-GAAP net income of $47.5 million.

“Our Neuro business showed significant growth during the quarter with a 14.5% increase in year over year after adjusting for the divestiture of GND, driven by new cybersecurity features and Windows® 10 upgrades in our EEG products as well as strength in our sleep and neurosurgery business. Overall, we achieved organic revenue growth of 1% after adjusting for our divestitures. Our non-GAAP gross profit margins improved 390 basis points during the quarter. Strong operating cash flows of $12.7 million and another $15 million in debt reduction put Natus in a net cash position at the end of the year,” said Jonathan Kennedy, President and Chief Executive Officer of Natus. “Both the Newborn Care and the Hearing & Balance businesses declined during the quarter. However, we expect them to return to growth in the first quarter of 2020 as we return key products to the market.”

“2019 was a year of major transformation and accomplishment for Natus,” continued Mr. Kennedy. “We completed our ‘One Natus’ restructuring project, exited five non-core businesses and, focused on the execution of our central nervous and sensory systems strategy. We simplified our supply chain, consolidating multiple distribution centers and two of our manufacturing locations. We also executed a strategic agreement with industry leader Pediatrix Medical Group to supply our best-in-class ALGO newborn hearing screeners and supplies to their 500 hospitals.”

“With most of our restructuring complete, we can now focus on the execution of our strategic plan and growing our business,” concluded Mr. Kennedy.

Financial Guidance

For the first quarter of 2020, the Company's revenue is expected to be between $113.0 million and $117.0 million and non-GAAP earnings per share is expected to be between $0.19 and $0.25.

For the full year 2020, the Company's revenue is expected to be between $480.0 million and $490.0 million and non-GAAP expected earnings per share to be between $1.45 and $1.55.

The Company's non-GAAP earnings per share guidance excludes charges of approximately $4.6 million and $19.1 million for amortization expense associated with intangible assets from prior acquisitions, certain other expenses, and related tax effects for the first quarter 2020 and full year, respectively, which the Company anticipates will reduce GAAP earnings per share by approximately $0.13 and $0.56 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 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) today, February 6, 2020. 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 1227558. 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 1227558. 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 and the anticipated performance and product offerings of the Company's business units. 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)









Quarter Ended

Year Ended

December 31, 2019

December 31, 2018

December 31, 2019

December 31, 2018
Revenue
$
131,756


$
140,991


$
495,515


$
530,891

Cost of revenue
49,251


58,103


196,491


217,952

Intangibles amortization
1,679


2,689


6,916


8,924

Gross profit
80,826


80,199


292,108


304,015

Gross profit margin
61.3
%

56.9
%

59.0
%

57.3
%
Operating expenses:







Marketing and selling
31,696


34,206


128,509


136,680

Research and development
18,354


15,296


58,295


61,482

General and administrative
15,310


13,632


59,419


70,599

Intangibles amortization
3,844


9,151


15,144


22,585

Restructuring
3,592


23,049


44,739


37,231

Total operating expenses
72,796


95,334


306,106


328,577

Income (loss) from operations
8,030


(15,135
)

(13,998
)

(24,562
)
Interest expense
(878
)

(1,545
)

(4,937
)

(6,785
)
Other income (expense)
105


(1,209
)

(757
)

(913
)
Income (loss) before tax
7,257


(17,889
)

(19,692
)

(32,260
)
Provision for income tax expense (benefit)
4,018


(6,256
)

(5,579
)

(9,325
)
Net income (loss)
$
3,239


$
(11,633
)

$
(14,113
)

$
(22,935
)
Earnings (loss) per share:







Basic
$
0.10


$
(0.35
)

$
(0.42
)

$
(0.69
)
Diluted
$
0.10


$
(0.35
)

$
(0.42
)

$
(0.69
)
Weighted-average shares:







Basic
33,691


33,495


33,696


33,111

Diluted
33,829


33,495


33,696


33,111


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)







December 31,

September 30,

December 31,

2019

2019

2018
ASSETS











Current assets:





Cash and investments
$
63,297


$
63,062


$
56,373

Accounts receivable
115,226


108,964


127,041

Inventories
71,215


75,107


79,736

Other current assets
19,204


27,735


22,625

Total current assets
268,942


274,868


285,775







Property and equipment
24,702


25,095


22,913

Operating lease right-of-use assets
15,046


16,059


—

Goodwill and intangible assets
262,116


265,152


287,097

Deferred income tax
31,006


21,955


22,639

Other assets
21,509


25,984


19,716

Total assets
$
623,321


$
629,113


$
638,140







LIABILITIES AND STOCKHOLDERS’ EQUITY











Current liabilities:





Accounts payable
$
27,065


$
30,096


$
28,805

Current portion of long-term debt
35,000


35,000


35,000

Accrued liabilities
53,851


56,657


52,568

Deferred revenue
20,246


19,242


17,073

Current portion of operating lease liabilities
5,871


5,901


—

Liabilities and accrued impairment held for sale
—


—


—

Total current liabilities
142,033


146,896


133,446







Long-term liabilities:





Long-term debt
19,665


34,618


69,474

Deferred income tax
14,249


8,129


16,931

Operating lease liabilities
12,051


13,112


—

Other long-term liabilities
17,644


20,200


19,845

Total liabilities
205,642


222,955


239,696

Total stockholders’ equity
417,679


406,158


398,444

Total liabilities and stockholders’ equity
$
623,321


$
629,113


$
638,140


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(in thousands)







Quarter Ended

Year Ended

December 31, 2019

December 31, 2018

December 31, 2019

December 31, 2018
Operating activities:







Net income (loss)
$
3,239


$
(11,633
)

$
(14,113
)

$
(22,935
)
Adjustments to reconcile net loss to net cash provided by operating activities:







Provision for losses on accounts receivable
409


1,038


1,903


6,909

Depreciation and amortization
7,308


8,211


30,254


33,863

Goodwill impairment
—


14,846


—


14,846

(Gain) loss on disposal of property and equipment
(33
)

336


449


746

Warranty reserve
298


2,095


2,886


2,168

Share-based compensation
1,975


1,605


8,352


17,051

Impairment of intangible assets
—


8,192


—


8,192

Impairment charge for sale of entity
—


—


24,571


—

Changes in operating assets and liabilities:







Accounts receivable
(7,137
)

(8,154
)

10,153


(5,199
)
Inventories
9,412


(2,260
)

7,338


(7,443
)
Prepaid expenses and other assets
8,749


9,280


(1,894
)

(5,118
)
Accounts payable
(3,162
)

7,904


(1,555
)

4,105

Accrued liabilities
(6,134
)

(3,495
)

(5,061
)

(2,527
)
Deferred revenue
1,021


331


3,392


2,076

Deferred income tax
(3,198
)

(14,231
)

(6,015
)

(13,714
)
Net cash provided by operating activities
12,747


14,065


60,660


33,020

Investing activities:







Acquisition of businesses, net of cash acquired
—


—


—


151

Purchases of property and equipment
(986
)

(2,748
)

(4,858
)

(7,875
)
Purchase of intangible assets
—


(28
)

(13
)

(665
)
Net cash used in investing activities
(986
)

(2,776
)

(4,871
)

(8,389
)
Financing activities:







Proceeds from stock option exercises and ESPP
1,441


933


3,634


11,448

Repurchase of common stock
—


—


—


(5,630
)
Taxes paid related to settlement of equity awards
(93
)

(10
)

(1,689
)

(5,183
)
Principal payments of financing lease liability
(198
)

—


(602
)

—

Contingent consideration earn-out
—


—


—


(147
)
Payments on borrowings
(15,000
)

(10,000
)

(50,000
)

(50,000
)
Net cash used in financing activities
(13,850
)

(9,077
)

(48,657
)

(49,512
)
Exchange rate changes effect on cash and cash equivalents
2,324


(279
)

(208
)

(7,696
)
Net decrease in cash and cash equivalents
235


1,933


6,924


(32,577
)
Cash and cash equivalents, beginning of period
63,062


54,440


56,373


88,950

Cash and cash equivalents, end of period
$
63,297


$
56,373


$
63,297


$
56,373


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP ADJUSTMENTS (unaudited)
(in thousands, except per share amounts)









Quarter Ended

Year Ended

December 31, 2019

December 31, 2018

December 31, 2019

December 31, 2018
GAAP based results:







Income (loss) before provision for income tax
$
7,257


$
(17,889
)

$
(19,692
)

$
(32,260
)








Non-GAAP adjustments:







Intangibles amortization (COGS)
1,679


2,689


6,916


8,924

Recall accrual and remediation efforts (COGS)
(492
)

163


(425
)

1,538

Restructuring and other non-recurring costs (COGS)
—


(548
)

989


326

Direct costs of acquisitions (COGS)
(153
)

(439
)

887


3,443

Intangibles amortization (OPEX)
3,844


9,151


15,145


22,591

Recall accrual and remediation efforts (R&D)
—


1,328


—


6,203

Restructuring and other non-recurring costs (OPEX)
6,759


23,156


20,653


41,476

Restructuring and other non-recurring costs (OI&E)
—


—


28,218


366

Direct costs of acquisitions (OPEX)
285


273


1,241


4,399

Extraordinary annual meeting expenses
—


—


—


2,230

Litigation (OPEX)
185


310


887


1,306













Non-GAAP income before provision for income tax
19,364


18,194


54,819


60,542









Income tax expense, as adjusted
$
3,923


$
3,692


$
12,846


$
13,049









Non-GAAP net income
$
15,441


$
14,502


$
41,973


$
47,493

Non-GAAP earnings per share:







Basic
$
0.46


$
0.43


$
1.25


$
1.43

Diluted
$
0.46


$
0.43


$
1.24


$
1.42









Weighted-average shares used to compute







Basic non-GAAP earnings per share
33,691


33,495


33,696


33,111

Diluted non-GAAP earnings per share
33,829


33,658


33,800


33,455


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP ADJUSTMENTS (unaudited)
(in thousands, except per share amounts)









Quarter Ended

Year Ended

December 31, 2019

December 31, 2018

December 31, 2019

December 31, 2018
GAAP Gross Profit
$
80,826


$
80,199


$
292,108


$
304,015

Amortization of intangibles
1,679


2,689


6,916


8,924

Direct cost of acquisitions
(153
)

(439
)

887


3,443

Recall accrual and remediation efforts
(492
)

163


(425
)

1,538

Restructuring and other non-recurring costs
—


(548
)

989


326

Non-GAAP Gross Profit
$
81,860


$
82,064


$
300,475


$
318,246

Non-GAAP Gross Margin
62.1
%

58.2
%

60.6
%

59.9
%








GAAP Operating Income (Loss)
$
8,030


$
(15,135
)

$
(13,998
)

$
(24,562
)
Amortization of intangibles
5,523


11,840


22,061


31,515

Recall accrual and remediation efforts
(492
)

1,491


(425
)

7,741

Litigation
185


310


887


1,306

Restructuring and other non-recurring costs
6,759


22,608


49,860


41,802

Direct cost of acquisitions
132


(166
)

2,128


7,842

Extraordinary annual meeting expenses
—


—


—


2,230

Non-GAAP Operating Profit
$
20,137


$
20,948


$
60,513


$
67,874

Non-GAAP Operating Margin
15.3
%

14.9
%

12.2
%

12.8
%








GAAP Income Tax Benefit (Expense)
$
4,018


$
(6,256
)

$
(5,579
)

$
(9,325
)
Effect of accumulated change of pretax income
407


24,704


9,254


20,003

Effect of change in annual expected tax rate
(558
)

(16,719
)

(2,298
)

(2,599
)
Repatriation tax adjustment
—


2,576


(177
)

2,676

Stock-based compensation adjustment
—


79


—


1,701

Valuation allowance for GAAP purposes
—


(15
)

—


1,270

Restructuring and other expenses
56


(677
)

11,646


(677
)
Non-GAAP Income Tax Expense
$
3,923


$
3,692


$
12,846


$
13,049










Three Months Ended

Year Ended





March 31, 2020

December 31, 2020




GAAP EPS Guidance

$0.06 - $0.12


$0.89 - $0.99




Amortization of intangibles

0.16


0.64




Restructuring and other non-recurring costs

0.01


0.02




Tax effect

(0.04)


(0.10)




Non-GAAP EPS Guidance

$0.19 - $0.25


$1.45 - $1.55


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
GROSS PROFIT MARGIN BY END MARKETS (unaudited)
(in thousands)





Quarter Ended

Year Ended

December 31, 2019

December 31, 2018

December 31, 2019

December 31, 2018
Neuro:







Revenue
$
80,879


$
73,664


$
287,058


$
279,787

Cost of revenue
28,471


28,273


104,281


107,845

Intangibles amortization
883


980


3,702


4,487

Gross profit
$
51,525


$
44,411


$
179,075


$
167,455

Gross profit margin
63.7
%

60.3
%

62.4
%

59.9
%








Newborn care:







Revenue
$
27,807


$
35,174


$
110,912


$
133,872

Cost of revenue
10,016


13,634


45,197


57,054

Intangibles amortization
64


953


257


1,311

Gross profit
$
17,727


$
20,587


$
65,458


$
75,507

Gross profit margin
63.8
%

58.5
%

59.0
%

56.4
%








Hearing & balance:







Revenue
$
23,070


$
32,153


$
97,545


$
117,232

Cost of revenue
10,764


16,196


47,013


53,053

Intangibles amortization
732


756


2,957


3,126

Gross profit
$
11,574


$
15,201


$
47,575


$
61,053

Gross profit margin
50.2
%

47.3
%

48.8
%

52.1
%








Consolidated:







Revenue
$
131,756


$
140,991


$
495,515


$
530,891

Cost of revenue
49,251


58,103


196,491


217,952

Intangibles amortization
1,679


2,689


6,916


8,924

Gross profit
$
80,826


$
80,199


$
292,108


$
304,015

Gross profit margin
61.3
%

56.9
%

59.0
%

57.3
%


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP GROSS MARGIN BY END MARKETS (unaudited)
(in thousands)









Quarter Ended

Year Ended

December 31, 2019

December 31, 2018

December 31, 2019

December 31, 2018
Neuro:







GAAP Gross Profit
$
51,525


$
44,411


$
179,075


$
167,455

Amortization of intangibles
883


980


3,702


4,487

Acquisition charges
(153
)

(449
)

887


3,383

Recall accrual and remediation efforts
(67
)

—


(67
)

—

Restructuring and other non-recurring costs
—


159


—


159

Non-GAAP Gross Profit
$
52,188


$
45,101


$
183,597


$
175,484

Non-GAAP Gross Margin
64.5
%

61.2
%

64.0
%

62.7
%








Newborn care:







GAAP Gross Profit
$
17,727


$
20,587


$
65,458


$
75,507

Amortization of intangibles
64


953


257


1,311

Recall accrual and remediation efforts
(425
)

163


(996
)

1,538

Restructuring and other non-recurring costs
—


(731
)

814


118

Non-GAAP Gross Profit
$
17,366


$
20,972


$
65,533


$
78,474

Non-GAAP Gross Margin
62.5
%

59.6
%

59.1
%

58.6
%








Hearing & balance:







GAAP Gross Profit
$
11,574


$
15,201


$
47,575


$
61,053

Amortization of intangibles
732


756


2,957


3,126

Acquisition charges
—


10


—


60

Recall accrual and remediation efforts
—


—


638


—

Restructuring and other non-recurring costs
—


24


175


49

Non-GAAP Gross Profit
$
12,306


$
15,991


$
51,345


$
64,288

Non-GAAP Gross Margin
53.3
%

49.7
%

52.6
%

54.8
%








Consolidated:







GAAP Gross Profit
$
80,826


$
80,199


$
292,108


$
304,015

Amortization of intangibles
1,679


2,689


6,916


8,924

Acquisition charges
(153
)

(439
)

887


3,443

Recall accrual and remediation efforts
(492
)

163


(425
)

1,538

Restructuring and other non-recurring costs
—


(548
)

989


326

Non-GAAP Gross Profit
$
81,860


$
82,064


$
300,475


$
318,246

Non-GAAP Gross Margin
62.1
%

58.2
%

60.6
%

59.9
%


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
GEOGRAPHIC REVENUE (unaudited)
(in thousands)









Quarter Ended

Year Ended

December 31, 2019

December 31, 2018

December 31, 2019

December 31, 2018
Consolidated Revenue:







United States
$
79,166


$
78,725


$
292,221


$
300,860

International
52,590


62,266


203,294


230,031

Totals
$
131,756


$
140,991


$
495,515


$
530,891









United States
60
%

56
%

59
%

57
%
International
40
%

44
%

41
%

43
%
Totals
100
%

100
%

100
%

100
%


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
REVENUE AFTER EXITED PRODUCTS (unaudited)
(in millions)









Quarter Ended

Year Ended

December 31, 2019

December 31, 2018

December 31, 2019

December 31, 2018
Revenue
$
131.8


$
141.0


$
495.5


$
530.9

Newborn care*
(0.4
)

(5.3
)

(4.5
)

(20.6
)
Neuro*
(0.1
)

(3.4
)

(1.2
)

(14.3
)
Hearing & balance*
(0.1
)

(1.5
)

(0.1
)

(11.3
)
Revenue after exited products
$
131.2


$
130.8


$
489.7


$
484.7









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

Company Name:	Natus Medical Incorporated
Stock Symbol:	NTUS
Market:	NYSE
Website:	natus.com

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