ntus-20210630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 000-33001

NATUS MEDICAL INCORPORATED

(Exact name of registrant as specified in its charter)


Delaware						77-0154833
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

6701 Koll Center Parkway, Suite 120, Pleasanton, CA 94566

(Address of principal executive offices) (Zip Code)

(925) 223-6700

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	NTUS	The Nasdaq Stock Market LLC
		(The Nasdaq Global Market)

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 shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” or an “emerging growth company” in Rule 12b-2 of the Exchange Act.:

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of issued and outstanding shares of the registrant’s Common Stock, $0.001 par value, as of July 30, 2021 was 34,130,686.

Table of Contents

NATUS MEDICAL INCORPORATED

TABLE OF CONTENTS


		Page No.
PART I.	FINANCIAL INFORMATION	3

Item 1.	Financial Statements	3

	Condensed Consolidated Balance Sheets as of June 30 , 2021 and December 31, 2020 (unaudited)	3

	Condensed Consolidated Statements of Operations for the three and six months ended June 30 , 2021 and 2020 (unaudited)	4

	Condensed Consolidated Statements of Comprehensive Income (Loss ) for the three and six months ended June 30 , 2021 and 2020 (unaudited)	5

	Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended June 30 , 2021 and 2020 (unaudited)	6

	Condensed Consolidated Statements of Cash Flows for the six months ended June 30 , 2021 and 2020 (unaudited)	7

	Notes to Condensed Consolidated Financial Statements (unaudited)	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	25

Item 4.	Controls and Procedures	26

PART II.	OTHER INFORMATION	26

Item 1.	Legal Proceedings	26

Item 1A.	Risk Factors	26

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26

Item 5.	Other Information	27

Item 6.	Exhibits	27

Signatures		28

-2-

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

NATUS MEDICAL INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except share and per share amounts)


	June 30, 2021		December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	62,494	$	82,082

Accounts receivable, net of allowance for doubtful accounts of $6,130 in 2021 and $6,213 in 2020	92,793		93,133
Inventories	68,350		75,650
Prepaid expenses and other current assets	22,062		20,837

Total current assets	245,699		271,702
Property and equipment, net	23,552		24,516
Operating lease right-of-use assets	10,946		11,669
Intangible assets, net	80,054		92,741
Goodwill	150,482		151,299
Deferred income tax	26,349		27,563
Other assets	19,136		20,904
Total assets	$	556,218	$	600,394
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	26,892	$	23,429
Current portion of long-term debt	—		50,000
Accrued liabilities	45,253		44,236
Deferred revenue	24,465		21,308
Current portion of operating lease liabilities	5,853		6,779

Total current liabilities	102,463		145,752
Other liabilities	17,829		18,451
Operating lease liabilities	8,061		8,959
Long-term debt, net of current portion	—		5,840
Deferred income tax	10,038		10,298
Total liabilities

SEC Form 10-Q filed by Natus Medical Incorporated