NuVasive (NUVA) Provides Commentary on Expected Impact Of U.S. Tax Reform

NuVasive, Inc. (NASDAQ: NUVA) announced today the potential implications to its business based on the recent passage by the U.S. Congress and soon-to-occur signing by President Trump of the tax bill, An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, resulting in the reduction of the U.S. corporate tax rate from 35 percent to approximately 21 percent. This is the largest tax overhaul in 30 years and will significantly reduce the future corporate tax rate for NuVasive, which prior to the enactment of the tax overhaul was expected to be approximately 33 percent on a non-GAAP basis in 2018.

NuVasive continues to be a leader in bringing innovative and life-changing spine surgery solutions to market, a pattern that should only accelerate with the tax savings and the additional growth opportunities it provides. Based on the preliminary assessment of the legislation, the Company believes the new regulations will positively impact its non-GAAP earnings per share (EPS). While the Company will be undertaking a thorough analysis over the coming weeks, early analysis indicates that the NuVasive non-GAAP tax rate will drop into the low 20 percent range in 2018 and in future periods converge to a 20 percent non-GAAP tax rate.

"The savings from this landmark decision are expected to boost forward-looking free cash flow and non-GAAP EPS well in excess of 10 percent per year beginning in 2018, delivering incredible incremental value-generating opportunities for our shareholders," said Gregory T. Lucier, chairman and chief executive officer of NuVasive. "Innovation requires fuel, and this surplus can support increased investments in R&D to provide solutions that empower spine surgeons to change the lives of their patients. This is a tremendous opportunity for the medical device industry, and a major spark in our ability to continue to invest in life-changing innovations."

The ramifications of the U.S. corporate tax reform will continue to be monitored as NuVasive surveys the corporate landscape and devises ways to maximize the savings for optimum business growth moving forward.

You May Also Be Interested In

• Is the global equity rally broadening? UBS weighs in
• Investing.com’s stocks of the week
• CoStar Group acquires Zonda for $800M, adding new home data