UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended March 31, 2003
¨ TRANSITION PERIOD PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the transition period from_________ to__________.
Commission File Number: 0-20727
Novoste Corporation
(Exact Name of Registrant as Specified in Its Charter)
| Florida |
59-2787476 | |
| (State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) |
| 3890 Steve Reynolds Blvd. Norcross, GA |
30093 | |
| (Address of Principal Executive Offices) |
(Zip Code) |
(770) 717-0904
(Registrant’s telephone, including area code)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days.
(Item 1) YES x NO ¨
(Item 2) YES x NO ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
YES x NO ¨
As of April 29, 2003 there were 16,330,951 shares of the Registrant’s Common Stock outstanding.
1
NOVOSTE CORPORATION
FORM 10-Q
2
Item 1. Consolidated Financial Statements
NOVOSTE CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except per-share data)
| March 31, 2003 |
December 31, 2002 |
|||||||
| (Unaudited) |
||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
21,317 |
|
$ |
21,928 |
| ||
| Short-term investments |
|
11,202 |
|
|
11,647 |
| ||
| Accounts receivable, net of allowance of $1,070 and $1,135 respectively |
|
8,648 |
|
|
6,758 |
| ||
| Inventory, net |
|
3,588 |
|
|
3,927 |
| ||
| Prepaid expenses and other current assets |
|
1,061 |
|
|
986 |
| ||
| Total current assets |
|
45,816 |
|
|
45,246 |
| ||
| Property and equipment, net |
|
9,053 |
|
|
9,542 |
| ||
| Radiation and transfer devices, net |
|
9,606 |
|
|
11,353 |
| ||
| Receivable from officers |
|
119 |
|
|
283 |
| ||
| Other assets |
|
1,073 |
|
|
1,096 |
| ||
| $ |
65,667 |
|
$ |
67,520 |
| |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ |
1,608 |
|
$ |
2,176 |
| ||
| Accrued expenses |
|
7,210 |
|
|
9,967 |
| ||
| Unearned revenue |
|
1,301 |
|
|
2,429 |
| ||
| Capital lease obligations |
|
106 |
|
|
178 |
| ||
| Total current liabilities |
|
10,225 |
|
|
14,750 |
| ||
| Long-term liabilities |
||||||||
| Capital lease obligations |
|
5 |
|
|
5 |
| ||
| Total liabilities |
|
10,230 |
|
|
14,755 |
| ||
| Shareholders’ equity: |
||||||||
| Preferred stock, $.01 par value, 5,000,000 shares authorized; no shares issued and outstanding |
|
— |
|
|
— |
| ||
| Common stock, $.01 par value, 25,000,000 shares authorized; 16,351,953 shares issued |
|
164 |
|
|
164 |
| ||
| Additional paid-in capital |
|
187,983 |
|
|
187,813 |
| ||
| Accumulated other comprehensive income |
|
232 |
|
|
190 |
| ||
| Accumulated deficit |
|
(132,298 |
) |
|
(134,434 |
) | ||
|
|
56,081 |
|
|
53,733 |
| |||
| Less: Treasury stock, 51,002 and 118,077 shares of common stock at cost |
|
(186 |
) |
|
(445 |
) | ||
| Unearned compensation |
|
(458 |
) |
|
(523 |
) | ||
| Total shareholders’ equity |
|
55,437 |
|
|
52,765 |
| ||
| $ |
65,667 |
|
$ |
67,520 |
| |||
See accompanying notes.
3
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share data)
| Three Months Ended |
||||||||
| March 31, |
||||||||
| 2003 |
2002 |
|||||||
| Net sales |
$ |
20,705 |
|
$ |
22,932 |
| ||
| Cost of sales |
|
7,066 |
|
|
6,678 |
| ||
| Gross margin |
|
13,639 |
|
|
16,254 |
| ||
| Operating expenses: |
||||||||
| Research and development |
|
3,358 |
|
|
2,659 |
| ||
| Sales and marketing |
|
5,934 |
|
|
8,218 |
| ||
| General and administrative |
|
2,318 |
|
|
2,197 |
| ||
| Total operating expenses |
|
11,610 |
|
|
13,074 |
| ||
| Income from operations |
|
2,029 |
|
|
3,180 |
| ||
| Interest income |
|
113 |
|
|
371 |
| ||
| Interest expense |
|
(7 |
) |
|
(17 |
) | ||
| Other income (expense) |
|
2 |
|
|
(81 |
) | ||
| Total other income |
|
108 |
|
|
273 |
| ||
| Income before taxes |
|
2,137 |
|
|
3,453 |
| ||
| Income taxes |
|
— |
|
|
50 |
| ||
| Net income |
$ |
2,137 |
|
$ |
3,403 |
| ||
| Net income per share—Basic |
$ |
0.13 |
|
$ |
0.21 |
| ||
| Weighted average shares outstanding—Basic |
|
16,269 |
|
|
16,280 |
| ||
| Net income per share—Diluted |
$ |
0.13 |
|
$ |
0.21 |
| ||
| Weighted average shares outstanding—Diluted |
|
16,836 |
|
|
16,544 |
| ||
See accompanying notes.
4
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| For The Three Months Ended March 31, |
||||||||
| 2003 |
2002 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net income |
$ |
2,137 |
|
$ |
3,403 |
| ||
| Adjustments to reconcile net income to net cash used by operating activities: |
||||||||
| Depreciation and amortization |
|
878 |
|
|
425 |
| ||
| Issuance of stock for services or compensation |
|
— |
|
|
197 |
| ||
| Amortization of deferred compensation |
|
65 |
|
|
51 |
| ||
| Amortization of radiation and transfer devices |
|
2,459 |
|
|
1,582 |
| ||
| Provision for doubtful accounts |
|
30 |
|
|
— |
| ||
| Changes in assets and liabilities: |
||||||||
| Accounts receivable |
|
(1,910 |
) |
|
(945 |
) | ||
| Inventory |
|
337 |
|
|
(578 |
) | ||
| Prepaid expenses |
|
(74 |
) |
|
13 |
| ||
| Accounts payable |
|
(582 |
) |
|
380 |
| ||
| Accrued expenses |
|
(2,767 |
) |
|
(4,413 |
) | ||
| Unearned revenue |
|
(1,133 |
) |
|
(948 |
) | ||
| Other |
|
1 | ||||||