BABY - Natus Medical Announces Second Quarter 2019 Financial Results

July, 25 2019 04:22 PM Natus Medical Incorporated

Second quarter revenue of $125.5 million exceeded expectations
Second quarter GAAP earnings per share of $0.12
Second quarter non-GAAP earnings per share of $0.34 exceeded expectations
NASDAQ ticker symbol change to “NTUS,” effective July 26, 2019

PLEASANTON, Calif., July 25, 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 six months ended June 30, 2019.

Key Results During the Quarter

Achieved organic revenue growth after divestitures of 5%
Reduced inventory by $2.5 million during the quarter
Reduced days sales outstanding by 11 days year over year
Generated $17.6 million in operating cash flow
Reduced debt by $20.0 million

For the second quarter ended June 30, 2019, the Company reported revenue of $125.5 million, a decrease of 4.0% compared to $130.7 million reported for the second quarter 2018. GAAP gross profit margin was 57.1% during the second quarter of 2019 compared to 57.4% in the second quarter 2018. GAAP net income was $4.2 million, or $0.12 per diluted share, compared with GAAP net loss of $2.6 million, or $0.08 per share in the second quarter 2018.

Non-GAAP earnings per diluted share was $0.34 for the second quarter 2019, compared to $0.35 in the second quarter 2018. Non-GAAP net income was $11.3 million for the second quarter 2019 compared to the prior year's second quarter non-GAAP net income of $11.6 million. Non-GAAP gross profit margin was 59.3% in the second quarter 2019 compared to 62.1% reported for the second quarter of 2018.

For the six months ended June 30, 2019, the Company reported revenue of $240.3 million, a decrease of 7.3% compared to $259.3 million reported for the same period in 2018. GAAP gross profit margin was 57.5% vs. 56.6% reported for the same period in 2018. GAAP net loss was $25.8 million, or $0.77 per share, compared with GAAP net loss of $5.7 million, or $0.17 per share in the same period in 2018.

Non-GAAP earnings per diluted share was $0.43 for the first six months in 2019, compared to $0.59 in the same period in 2018. The Company reported non-GAAP net income of $14.4 million for the six months ended June 30, 2019, compared to the prior year's non-GAAP net income of $19.6 million.

“Second quarter results exceeded the high end of our expectations. Revenue from our neuro end market, grew 7% adjusted for the divested GND business. Sales of our Otoscan digital ear scanner and hearing aid fitting products drove growth in our audiology market. Sales of our Neoblue® phototherapy devices and Algo® hearing screening devices and supplies grew within newborn care market,” said Jonathan Kennedy, President and Chief Executive Officer of Natus. “Completing the divestitures of GND, Neurocom® and Medix in the first half of the year, enhances our ability to grow our core businesses, drive operational efficiency and increase cash flows.”

“Our One Natus initiatives are progressing according to plan, allowing us to now look forward beyond the reorganization. Natus has a rich portfolio of solutions focused on the diagnosis and treatment of central nervous and sensory system disorders for patients of all ages. With our customer focused organization and strategic direction now in place, we are in a solid position to expand and grow within our markets.” Kennedy continued. “Today, we also announced the change of our ticker symbol to NTUS, better reflecting the identity and diversity of our business.”

Financial Guidance

For the third quarter of 2019, the Company's revenue guidance is expected to be between $122.0 million and $126.0 million and non-GAAP earnings per share guidance is expected to be between $0.32 and $0.39.

For the full year 2019, the Company narrowed its expected revenue guidance to be between $492.0 million and $500.0 million from $489.0 million to $505.0 million and non-GAAP expected earnings per share guidance to be between $1.19 and $1.32 from $1.17 to $1.44.

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 $4.9 million and $49.8 million for the third quarter 2019 and full year, respectively, and which the Company expects will reduce GAAP earnings per share by approximately $0.13 and $1.45 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, July 25, 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 1776809. 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 1776809. 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 creating a more efficient operating model, creating a stronger and more profitable company, enhancing focus on operational excellence, positioning the company for growth and driving long-term value for stakeholders. 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

Six Months Ended

June 30, 2019

June 30, 2018

June 30, 2019

June 30, 2018
Revenue
$
125,539


$
130,653


$
240,296


$
259,261

Cost of revenue
52,164


52,897


98,534


108,266

Intangibles amortization
1,746


2,717


3,502


4,305

Gross profit
71,629


75,039


138,260


146,690

Gross profit margin
57.1
%

57.4
%

57.5
%

56.6
%
Operating expenses:







Marketing and selling
32,236


33,401


65,966


69,273

Research and development
12,769


15,616


25,827


31,059

General and administrative
12,691


23,721


28,995


41,169

Intangibles amortization
3,763


4,151


7,549


8,957

Restructuring
2,668


1,938


40,040


2,750

Total operating expenses
64,127


78,827


168,377


153,208

Income (loss) from operations
7,502


(3,788
)

(30,117
)

(6,518
)
Interest expense
(1,388
)

(1,647
)

(2,894
)

(3,596
)
Other income (expense)
188


(751
)

(418
)

(622
)
Income (loss) before tax
6,302


(6,186
)

(33,429
)

(10,736
)
Provision for income tax expense (benefit)
2,114


(3,609
)

(7,616
)

(5,009
)
Net income (loss)
$
4,188


$
(2,577
)

$
(25,813
)

$
(5,727
)
Earnings (loss) per share:







Basic
$
0.12


$
(0.08
)

$
(0.77
)

$
(0.17
)
Diluted
$
0.12


$
(0.08
)

$
(0.77
)

$
(0.17
)
Weighted-average shares:







Basic
33,639


32,859


33,630


32,809

Diluted
33,690


32,859


33,630


32,809

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







June 30,

March 31,

December 31,

2019

2019

2018
ASSETS











Current assets:





Cash and investments
$
52,009


$
53,423


$
56,373

Accounts receivable
106,934


110,900


127,041

Inventories
78,275


82,866


79,736

Other current assets
28,022


26,793


22,625

Total current assets
265,240


273,982


285,775







Property and equipment
26,547


26,280


22,913

Operating lease right-of-use assets
17,217


18,982


—

Goodwill and intangible assets
274,725


279,595


287,097

Deferred income tax
19,187


19,165


22,639

Other assets
25,084


20,559


19,716

Total assets
$
628,000


$
638,563


$
638,140







LIABILITIES AND STOCKHOLDERS’ EQUITY











Current liabilities:





Accounts payable
$
25,235


$
25,103


$
28,805

Current portion of long-term debt
35,000


35,000


35,000

Accrued liabilities
51,605


51,157


52,568

Deferred revenue
19,861


19,017


17,073

Current portion of operating lease liabilities
5,960


6,251


—

Liabilities and accrued impairment held for sale
—


24,786


—

Total current liabilities
137,661


161,314


133,446







Long-term liabilities:





Long-term debt
44,570


64,522


69,474

Deferred income tax
8,649


8,467


16,931

Operating lease liabilities
14,326


15,234


—

Other long-term liabilities
21,237


21,325


19,845

Total liabilities
226,443


270,862


239,696

Total stockholders’ equity
401,557


367,701


398,444

Total liabilities and stockholders’ equity
$
628,000


$
638,563


$
638,140

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

(in thousands)







Three Months Ended

Six Months Ended

June 30, 2019

June 30, 2018

June 30, 2019

June 30, 2018
Operating activities:







Net income (loss)
$
4,188


$
(2,577
)

$
(25,813
)

$
(5,727
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:







Provision for losses on accounts receivable
360


3,171


960


4,089

Depreciation and amortization
7,716


8,779


15,427


16,694

(Gain) loss on disposal of property and equipment
303


108


482


160

Warranty reserve
1,323


2,100


1,677


975

Share-based compensation
1,908


3,270


4,462


5,632

Impairment of intangible assets held for sale
—


—


—


—

Impairment charge for held for sale assets
—


—


24,571


—

Changes in operating assets and liabilities:







Accounts receivable
3,615


4,306


19,170


2,064

Inventories
2,141


(5,368
)

(2,475
)

(2,483
)
Prepaid expenses and other assets
(3,357
)

(9,753
)

(11,060
)

(15,141
)
Accounts payable
(81
)

258


(3,517
)

(364
)
Accrued liabilities
(1,301
)

95


(2,620
)

3,414

Deferred revenue
757


373


2,739


1,687

Deferred income tax
(18
)

239


44


326

Net cash provided by operating activities
17,554


5,001


24,047


11,326

Investing activities:







Acquisition of businesses, net of cash acquired
—


151


—


151

Purchases of property and equipment
(458
)

(914
)

(2,919
)

(3,387
)
Purchase of intangible assets
(13
)

(298
)

(13
)

(298
)
Net cash used in investing activities
(471
)

(1,061
)

(2,932
)

(3,534
)
Financing activities:







Proceeds from stock option exercises and ESPP
1,406


4,515


1,674


5,092

Repurchase of common stock
—


(894
)

—


(5,630
)
Taxes paid related to settlement of equity awards
(6
)

(307
)

(1,573
)

(326
)
Principal payments of financing lease liability
(100
)

—


(265
)

—

Contingent consideration earn-out
—


—


—


(147
)
Payments on borrowings
(20,000
)

(10,000
)

(25,000
)

(35,000
)
Net cash used in financing activities
(18,700
)

(6,686
)

(25,164
)

(36,011
)
Exchange rate changes effect on cash and cash equivalents
203


(6,817
)

(315
)

(5,823
)
Net decrease in cash and cash equivalents
(1,414
)

(9,563
)

(4,364
)

(34,042
)
Cash and cash equivalents, beginning of period
53,423


64,471


56,373


88,950

Cash and cash equivalents, end of period
$
52,009


$
54,908


$
52,009


$
54,908

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









Three Months Ended

Six Months Ended

June 30, 2019

June 30, 2018

June 30, 2019

June 30, 2018
GAAP based results:







Income (loss) before provision for income tax
$
6,302


$
(6,186
)

$
(33,429
)

$
(10,736
)








Non-GAAP adjustments:







Intangibles amortization (COGS)
1,746


2,717


3,502


4,305

Recall accrual and remediation efforts (COGS)
322


2,305


67


2,573

Restructuring and other non-recurring costs (COGS)
738


27


989


27

Direct costs of acquisitions (COGS)
40


1,072


123


3,480

Intangibles amortization (OPEX)
3,763


4,151


7,549


8,957

Direct costs of acquisitions (M&S)
15


387


33


409

Recall accrual and remediation efforts (R&D)
—


1,741


—


3,587

Direct costs of acquisitions (R&D)
46


138


91


184

Restructuring and other non-recurring costs (OPEX)
2,594


4,239


40,258


5,206

Direct costs of acquisitions (G&A)
90


789


134


3,180

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


(2
)

—


366

Extraordinary annual meeting expenses
—


2,214


—


2,214

Litigation (OPEX)
10


754


697


996

Non-GAAP income before provision for income tax
15,666


14,346


20,014


24,748









Income tax expense, as adjusted
$
4,350


$
2,755


$
5,591


$
5,130









Non-GAAP net income
$
11,316


$
11,591


$
14,423


$
19,618

Non-GAAP earnings per share:







Basic
$
0.34


$
0.35


$
0.43


$
0.60

Diluted
$
0.34


$
0.35


$
0.43


$
0.59









Weighted-average shares used to compute







Basic non-GAAP earnings per share
33,639


32,859


33,630


32,809

Diluted non-GAAP earnings per share
33,690


33,241


33,733


33,196

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









Three Months Ended

Six Months Ended

June 30, 2019

June 30, 2018

June 30, 2019

June 30, 2018
GAAP Gross Profit
$
71,629


$
75,039


$
138,260


$
146,690

Amortization of intangibles
1,746


2,717


3,502


4,305

Direct cost of acquisitions
40


1,072


123


3,480

Recall accrual and remediation efforts
322


2,305


67


2,573

Restructuring and other non-recurring costs
738


27


989


27

Non-GAAP Gross Profit
$
74,475


$
81,160


$
142,941


$
157,075

Non-GAAP Gross Margin
59.3
%

62.1
%

59.5
%

60.6
%








GAAP Operating Income (Loss)
$
7,502


$
(3,788
)

$
(30,117
)

$
(6,518
)
Amortization of intangibles
5,509


6,868


11,051


13,262

Recall accrual and remediation efforts
322


4,046


67


6,160

Litigation
10


754


697


996

Restructuring and other non-recurring costs
3,332


4,266


41,247


5,233

Direct cost of acquisitions
191


2,386


381


7,253

Extraordinary annual meeting expenses
—


2,214


—


2,214

Non-GAAP Operating Profit
$
16,866


$
16,746


$
23,326


$
28,600

Non-GAAP Operating Margin
13.4
%

12.8
%

9.7
%

11.0
%








GAAP Income Tax Benefit (Expense)
$
2,114


$
(3,609
)

$
(7,616
)

$
(5,009
)
Effect of accumulated change of pretax income
2,662


7,072


5,707


10,791

Effect of change in annual expected tax rate
(503
)

(1,531
)

(606
)

(1,584
)
Repatriation tax adjustment
—


(88
)

(177
)

101

Stock-based compensation adjustment
—


911


—


831

Restructuring expenses
77


—


8,283


—

Non-GAAP Income Tax Expense
$
4,350


$
2,755


$
5,591


$
5,130










Three Months Ended

Year Ended





September 30, 2019

December 31, 2019




GAAP EPS Guidance
$0.19 - $0.26

($0.26) - ($0.13)




Amortization of intangibles
0.17

0.66




Restructuring and other non-recurring costs
0.01

1.24




Litigation
—

0.02




Direct cost of acquisitions
—

0.01




Tax effect
(0.05)

(0.48)




Non-GAAP EPS Guidance
$0.32 - $0.39

$1.19 - $1.32

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





Three Months Ended

Six Months Ended

June 30, 2019

June 30, 2018

June 30, 2019

June 30, 2018
Neuro:







Revenue
$
71,598


$
70,375


$
133,988


$
136,244

Cost of revenue
27,906


26,381


50,579


54,232

Intangibles amortization
940


1,814


1,882


2,464

Gross profit
$
42,752


$
42,180


$
81,527


$
79,548

Gross profit margin
59.7
%

59.9
%

60.8
%

58.4
%








Newborn care:







Revenue
$
26,563


$
30,573


$
56,099


$
64,477

Cost of revenue
11,424


13,644


23,822


26,135

Intangibles amortization
64


119


129


239

Gross profit
$
15,075


$
16,810


$
32,148


$
38,103

Gross profit margin
56.8
%

55.0
%

57.3
%

59.1
%








Audiology:







Revenue
$
27,378


$
29,705


$
50,209


$
58,540

Cost of revenue
12,834


12,872


24,133


27,899

Intangibles amortization
742


784


1,491


1,602

Gross profit
$
13,802


$
16,049


$
24,585


$
29,039

Gross profit margin
50.4
%

54.0
%

49.0
%

49.6
%








Consolidated:







Revenue
$
125,539


$
130,653


$
240,296


$
259,261

Cost of revenue
52,164


52,897


98,534


108,266

Intangibles amortization
1,746


2,717


3,502


4,305

Gross profit
$
71,629


$
75,039


$
138,260


$
146,690

Gross profit margin
57.1
%

57.4
%

57.5
%

56.6
%








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

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









Three Months Ended

Six Months Ended

June 30, 2019

June 30, 2018

June 30, 2019

June 30, 2018
Neuro:







GAAP Gross Profit
$
42,752


$
42,180


$
81,527


$
79,548

Amortization of intangibles
940


1,814


1,882


2,464

Acquisition charges
40


1,022


123


3,430

Non-GAAP Gross Profit
$
43,732


$
45,016


$
83,532


$
85,442

Non-GAAP Gross Margin
61.1
%

64.0
%

62.3
%

62.7
%








Newborn care:







GAAP Gross Profit
$
15,075


$
16,810


$
32,148


$
38,103

Amortization of intangibles
64


119


129


239

Recall accrual and remediation efforts
(316
)

2,305


(571
)

2,573

Restructuring and other non-recurring costs
738


2


814


2

Non-GAAP Gross Profit
$
15,561


$
19,236


$
32,520


$
40,917

Non-GAAP Gross Margin
58.6
%

62.9
%

58.0
%

63.5
%








Audiology:







GAAP Gross Profit
$
13,802


$
16,049


$
24,585


$
29,039

Amortization of intangibles
742


784


1,491


1,602

Acquisition charges
—


50


—


50

Recall accrual and remediation efforts
638


—


638


—

Restructuring and other non-recurring costs
—


25


175


25

Non-GAAP Gross Profit
$
15,182


$
16,908


$
26,889


$
30,716

Non-GAAP Gross Margin
55.5
%

56.9
%

53.6
%

52.5
%








Consolidated:







GAAP Gross Profit
$
71,629


$
75,039


$
138,260


$
146,690

Amortization of intangibles
1,746


2,717


3,502


4,305

Acquisition charges
40


1,072


123


3,480

Recall accrual and remediation efforts
322


2,305


67


2,573

Restructuring and other non-recurring costs
738


27


989


27

Non-GAAP Gross Profit
$
74,475


$
81,160


$
142,941


$
157,075

Non-GAAP Gross Margin
59.3
%

62.1
%

59.5
%

60.6
%

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









Three Months Ended

Six Months Ended

June 30, 2019

June 30, 2018

June 30, 2019

June 30, 2018
Consolidated Revenue:







United States
$
73,531


$
75,467


$
139,598


$
144,154

International
52,008


55,186


100,698


115,107

Totals
$
125,539


$
130,653


$
240,296


$
259,261









United States
59
%

58
%

58
%

56
%
International
41
%

42
%

42
%

44
%
Totals
100
%

100
%

100
%

100
%

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













Three Months Ended

Six Months Ended

Year Ended

June 30, 2019

June 30, 2018

June 30, 2019

June 30, 2018

December 31, 2018

December 31, 2017
Revenue
$
125.5


$
130.7


$
240.3


$
259.3


$
530.9


$
501.0

Newborn care
(1.4
)

(4.1
)

(3.7
)

(10.2
)

(20.6
)

(35.0
)
Neuro
(0.1
)

(4.4
)

(1.0
)

(7.7
)

(14.3
)

(14.6
)
Audiology
—


(1.8
)

—


(8.3
)

(7.9
)

(6.9
)
Impact of ship holds
2.8


—


6.6


—




—

Revenue after exited products/ship holds
$
126.8


$
120.4


$
242.2


$
233.1


$
488.1


$
444.5













Note: Newborn care, Neuro, and Audiology include exited businesses (GND, Neurocom, Medix) and other end of sales products.

Company Name:	Natus Medical Incorporated
Stock Symbol:	BABY
Market:	NASDAQ

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