The Economic Development and Growth Engine for Tennessee’s Memphis and Shelby County yesterday approved a $9 million, 11-year PILOT tax incentive for NuVasive Inc. (NSDQ:NUVA), which has distribution operations in Memphis.
The San Diego, Calif.-based company is planning to add 15 jobs yearly with average yearly wages of $38,000, and invest an additional $116 million in its Memphis distribution site, according to the report.
Approximately $700,000 will go towards facility renovations, while the rest will support equipment and tools at the facilities. Jobs added are expected to be in operations, distribution and quality control, according to a Commercial Appeal report.
The tax incentive is the 3rd of its kind of NuVasive and its Memphis facilities since 2006.
Earlier this month, NuVasive saw shares fall despite the medical device maker meeting expectations on The Street with its Q4 and fiscal year 2016 earnings. The company posted profits of $6.4 million, or 11¢ per share, on sales of $271.1 million for the 3 months ended December 31, for a bottom-line slide of 44.6% while sales grew 25.9% compared with the same period last year.
After adjusting to exclude 1-time items, earnings per share for the 4th quarter were 53¢, 2¢ ahead of consensus on The Street, where analysts were looking for sales of $261 million.
For the full year, NuVasive posted profits of $37.1 million, or 69¢ per share, on sales of $962 million. That equates to a bottom-line slide of 44% while sales grew 18.6% compared with the company’s fiscal year 2015.
Adjusted to exclude 1-time items, earnings per share for the year were $1.66, a solid 2¢ above what analysts on The Street were looking for. The company also topped revenue expectations by $10 million over The Street’s estimates.