ENDOLOGIX, INC.
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(Exact name of registrant as specified in its charter)
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Delaware
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000-28440
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68-0328265
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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2 Musick, Irvine, CA
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92618
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(Address of principal executive offices)
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(Zip Code)
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Registrant's telephone number, including area code:
(949) 595-7200
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N/A
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(Former name or former address, if changed since last report)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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ENDOLOGIX, INC.
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Date: May 2, 2018
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/s/ Vaseem Mahboob
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Vaseem Mahboob
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Chief Financial Officer
(Principal Financial and Accounting Officer)
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INVESTOR CONTACT:
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Endologix, Inc.
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Vaseem Mahboob, CFO
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(949) 595-7200
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Three Months Ended
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||||||
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March 31,
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||||||
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2018
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2017
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Revenue
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U.S.
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$
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29,375
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$
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30,889
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International
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12,909
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11,723
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Total Revenue
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42,284
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42,612
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Cost of goods sold
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13,958
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13,970
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Gross profit
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$
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28,326
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$
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28,642
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Operating expenses:
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Research and development
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5,499
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5,530
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Clinical and regulatory affairs
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3,571
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3,835
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Marketing and sales
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21,725
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25,900
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General and administrative
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10,369
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8,873
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Restructuring costs
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233
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166
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Total operating expenses
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41,397
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44,304
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Loss from operations
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(13,071
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)
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(15,662
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)
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Other income (expense)
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(5,441
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)
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(4,298
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)
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Change in fair value of contingent consideration related to acquisition
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1,100
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(1,200
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)
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Loss on debt extinguishment
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(2,270
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)
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—
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Total other income (expense)
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(6,611
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)
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(5,498
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)
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Net loss before income tax expense
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$
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(19,682
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)
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$
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(21,160
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)
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Income tax expense
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(85
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)
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(154
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)
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Net loss
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$
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(19,767
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)
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$
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(21,314
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)
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Other comprehensive income (loss) foreign currency translation
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(127
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)
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356
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Comprehensive loss
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$
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(19,894
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)
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$
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(20,958
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)
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Basic and diluted net loss per share
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$
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(0.24
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)
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$
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(0.26
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)
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Shares used in computing basic and diluted net loss per share
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83,706
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82,928
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Non-GAAP Reconciliations:
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Three Months Ended
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||||||
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March 31,
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||||||
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2018
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2017
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Net Loss to Adjusted Net Loss:
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Net loss
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$
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(19,767
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)
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$
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(21,314
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)
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Fair value adjustment to Nellix contingent consideration liability
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(1,100
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)
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1,200
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Interest expense
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5,807
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4,295
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Foreign currency (gain) loss
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(325
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)
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4
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Restructuring and other transition costs
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233
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547
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Loss on extinguishment of debt
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2,270
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—
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(1) Adjusted Net Loss
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$
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(12,882
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)
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$
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(15,268
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)
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Adjusted Net Loss to Adjusted EBITDA:
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Adjusted Net Loss
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$
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(12,882
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)
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$
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(15,268
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)
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Income tax expense
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85
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154
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Depreciation and amortization
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1,992
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2,313
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Stock-based compensation expense
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3,021
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2,954
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(2) Adjusted EBITDA
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$
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(7,784
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)
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$
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(9,847
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)
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March 31,
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December 31,
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2018
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2017
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ASSETS
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Current assets:
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Cash and cash equivalents
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$
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48,020
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$
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57,991
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Restricted cash
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2,067
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2,608
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Accounts receivable, net allowance for doubtful accounts of $634 and $470, respectively.
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29,241
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32,294
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Other receivables
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437
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418
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Inventories
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45,809
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45,153
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Prepaid expenses and other current assets
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3,120
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4,670
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Total current assets
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128,694
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143,134
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Property and equipment, net
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18,598
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19,212
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Goodwill
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120,977
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120,927
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Intangibles, net
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79,380
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80,403
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Deposits and other assets
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1,694
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1,371
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Total assets
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$
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349,343
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$
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365,047
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
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Accounts payable
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$
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13,005
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$
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12,351
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Accrued payroll
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14,519
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15,054
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Accrued expenses and other current liabilities
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15,571
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16,002
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Current portion of debt
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17,474
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17,202
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Revolving line of credit
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—
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21
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Total current liabilities
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60,569
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60,630
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Deferred income taxes
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201
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201
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Deferred rent
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7,742
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7,724
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Other liabilities
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3,150
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3,877
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Contingently issuable common stock
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8,200
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9,300
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Debt
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210,587
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208,253
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Total liabilities
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290,449
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289,985
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Commitments and contingencies
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Stockholders’ equity:
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Convertible preferred stock, $0.001 par value; 5,000,000 shares authorized. No shares issued and outstanding.
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—
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—
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Common stock, $0.001 par value; 135,000,000 shares authorized. 84,209,056 and 83,855,824
shares issued, respectively. 83,996,817 and 83,643,585
shares outstanding, respectively.
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84
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84
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Treasury stock, at cost, 212,239 shares.
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(2,942
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)
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(2,942
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)
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Additional paid-in capital
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598,312
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594,586
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Accumulated deficit
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(539,768
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)
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(520,001
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)
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Accumulated other comprehensive income
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3,208
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3,335
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Total stockholders’ equity
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58,894
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|
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75,062
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Total liabilities and stockholders’ equity
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$
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349,343
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$
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365,047
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INVESTOR CONTACT:
|
|
Endologix, Inc.
|
|
Vaseem Mahboob, CFO
|
|
(949) 595-7200
|
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