Haemonetics Provides Fiscal 2017 Guidance
The Company follows a fiscal year reporting convention, ending on the Saturday closest to
Overall fiscal 2017 revenue is expected to be in a range of
The Company expects strong revenue growth in its identified growth franchises of Plasma and Hemostasis Management, declining revenue in Cell Processing and a double digit percentage revenue decline in its Donor business. Including the 1.7% headwind of one less week in fiscal 2017, franchise revenue guidance follows:
- Plasma: 7-9% revenue growth as reported or 8-10% in constant currency.
- Hemostasis Management: 17-20% revenue growth as reported or 20-23% in constant currency.
- Cell Processing: approximately 10% revenue decline as reported or 6% in constant currency, with flat revenue in Cell Saver and growth in BloodTrack HaemoBank more than offset by a continuing decline in OrthoPAT.
- Donor (whole blood, red cell and platelet): 19-23% revenue decline as reported or 16-20% decline in constant currency.
Adjusted gross margin and adjusted operating margin are expected to approximate 45% and 13% of revenue, respectively. Cost savings are expected to enable fiscal 2017 operating earnings to grow by 3-8% on a constant currency basis.
Income taxes are expected to approximate 25-26% of pre-tax adjusted income.
Adjusted earnings per share – excluding restructuring charges, restructuring-related expenses and deal amortization – are expected to be in a range of
RESTRUCTURING CHARGE, RESTRUCTURING RELATED EXPENSES AND DEAL AMORTIZATION
The Company recently completed a strategic review of its business portfolio and formulated a plan to optimize growth and profitability. For fiscal 2017, that plan includes a repositioning of the Company's organization and cost structure. Enactment of that plan will include, in fiscal 2017, pre-tax restructuring charges, primarily termination benefits, approximating
Acquisition related amortization is expected to approximate
Fiscal 2017 free cash flow is expected to approximate
ADDITIONAL INFORMATION AND WEBCAST
More information on fiscal 2017 guidance, including income statement scenarios underlying the lower and upper ends of the adjusted earnings per share guidance range, can be found in the Investor Relations section of the Company's web site at www.haemonetics.com.
Forward Looking Statements
The Company provides forward-looking statements that could be influenced by risks and uncertainties, including the effects of disruption from the manufacturing transformation making it more difficult to maintain relationships with employees and timely deliver high quality products, changes in executive management, possible changes in operations as a result of our ongoing strategic review, asset revaluations to reflect current business conditions, technological advances in the medical field and standards for transfusion medicine and our ability to successfully implement products that incorporate such advances and standards, demand for whole blood and blood components, product quality, market acceptance, regulatory uncertainties, including in the receipt or timing of regulatory approvals, the effect of economic and political conditions, the impact of competitive products and pricing, blood product reimbursement policies and practices, foreign currency exchange rates, changes in customers' ordering patterns including single-source tenders, the effect of industry consolidation as seen in the plasma and blood center markets, the effect of communicable diseases and the effect of uncertainties in markets outside the U.S. (including
The foregoing list should not be construed as exhaustive.
Forward-looking statements are based on estimates and assumptions made by management of the Company and are believed to be reasonable, though inherently uncertain and difficult to predict. Actual results and experience could differ materially from the forward-looking statements. Information set forth in this press release is current as of today and the Company undertakes no duty or obligation to update this information.
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