Highlights from the quarter include:
- Revenue increased 5.4 percent to $215.3 million, or 6.8 percent on a constant currency basis;
- Non-GAAP operating profit margin up 240 basis points to 17.1 percent; generally accepted accounting principles (GAAP) operating profit margin of 13.7 percent; and
- Non-GAAP diluted earnings per share of $0.35; GAAP diluted earnings per share of $0.22.
Highlights from the year include:
- Revenue increased 6.4 percent to $811.1 million, or 8.2 percent on a constant currency basis;
- Non-GAAP operating profit margin up 400 basis points to 15.4 percent; GAAP operating profit margin of 17.1 percent; and
- Non-GAAP diluted earnings per share of $1.31; GAAP diluted earnings per share of $1.26.
The acquisition reinforces NuVasive’s focus on transformative spine solutions to improve patient outcomes and extends its position as a global spine leader with a comprehensive approach to the fast-growing complex deformity market. Ellipse Technologies’ magnetic growing rod technology is currently receiving rapid adoption in the pediatric deformity and orthopedic markets, providing for new growth opportunities beyond NuVasive’s current portfolio of winning solutions that address adult degenerative and deformity spinal conditions.
The acquisition is expected to accelerate NuVasive’s revenue growth to high single-digits and be accretive to non-GAAP diluted earnings per share by approximately $0.01 in 2016. For 2015, Ellipse Technologies generated revenues of approximately $44 million and 2016 revenues are expected to be approximately $53 million on a reported basis and approximately $60 million on a pro forma basis as the company continues its exceptional growth trajectory.
“We are pleased to report strong results for 2015 that demonstrate solid revenue growth as NuVasive continues to gain market share globally, as well as record operating profit margin expansion for the year,” said Gregory T. Lucier, chairman and CEO of NuVasive. “In 2016, we expect to drive further market share gains fueled by the launch of innovations that fulfill unmet clinical and economic needs, coupled with additional investment in our commercial teams around the world. Very selectively, we also intend to explore compelling inorganic opportunities that add value, such as today’s completion of the acquisition of Ellipse Technologies, and reinforce our focus on transformative spine solutions. We remain committed to delivering more profitable growth as we scale the business, drive world-class operations and increase our in-sourced manufacturing capabilities. This winning combination of disruptive innovation, strategic growth and enhanced profitability will create value for our shareholders, and position us well on the path to achieving our long-term performance targets.”