Press Release Details

Haemonetics Corporation Financial Summary

(Unaudited data in thousands, except per share data)

Consolidated Statements of Income for the Fourth Quarter of FY12 and FY11

3/31/2012

4/2/2011

% Inc/(Dec)

As Reported

As Reported

vs Prior Year

Net revenues

$      186,670

$      170,033

9.8 %

Gross profit

94,612

87,501

8.1 %

R&D

8,611

8,786

(2.0)%

S,G&A

65,041

49,820

30.6 %

Operating expenses

73,652

58,606

25.7 %

Operating income

20,960

28,895

(27.5)%

Other income (expense), net

369

(323)

(214.2)%

Income before taxes

21,329

28,572

(25.3)%

Tax expense

3,524

7,584

(53.5)%

Net income

$      17,805

$      20,988

(15.2)%

Net income per common share assuming dilution

$         0.69

$         0.81

(14.2)%

Weighted average number of shares:

Basic

25,229

25,509

Diluted

25,678

25,970

Profit Margins:

Inc/(Dec) vs prior year
profit margin %

Gross profit

50.7 %

51.5 %

(0.8)%

R&D

4.6 %

5.2 %

(0.6)%

S,G&A

34.8 %

29.3 %

5.5 %

Operating income

11.2 %

17.0 %

(5.8)%

Income before taxes

11.4 %

16.8 %

(5.4)%

Net income

9.5 %

12.3 %

(2.8)%

Haemonetics Corporation Financial Summary

Consolidated Statements of Income for FY12 and FY11

3/31/2012

4/2/2011

% Inc/(Dec)

As Reported

As Reported

vs Prior Year

Net revenues

$      727,844

$      676,694

7.6 %

Gross profit

369,240

355,209

4.0 %

R&D

36,801

32,656

12.7 %

S,G&A

245,261

213,899

14.7 %

Contingent consideration income

(1,580)

(1,894)

(16.6)%

Operating expenses

280,482

244,661

14.6 %

Operating income

88,758

110,548

(19.7)%

Other income (expense), net

740

(467)

(258.5)%

Income before taxes

89,498

110,081

(18.7)%

Tax expense

22,612

30,101

(24.9)%

Net income

$      66,886

$      79,980

(16.4)%

Net income per common share assuming dilution

$         2.59

$         3.12

(16.9)%

Weighted average number of shares:

Basic

25,364

25,077

Diluted

25,795

25,596

Profit Margins:

Inc/(Dec) vs prior
year profit margin %

Gross profit

50.7 %

52.5 %

(1.8)%

R&D

5.1 %

4.8 %

0.3 %

S,G&A

33.7 %

31.6 %

2.1 %

Operating income

12.2 %

16.3 %

(4.1)%

Income before taxes

12.3 %

16.3 %

(4.0)%

Net income

9.2 %

11.8 %

(2.6)%

Revenue Analysis for the Fourth Quarter and FY12 and FY11

(Unaudited data in thousands)

Three Months Ended

3/31/2012

4/2/2011

% Inc/(Dec)

As Reported

As Reported

vs Prior Year

Revenues by geography

United States

$      87,485

$      80,277

9.0 %

International

99,185

89,756

10.5 %

Net revenues

$    186,670

$    170,033

9.8 %

Disposable revenues

Plasma disposables

$      61,855

$      54,965

12.5 %

Blood center disposables

Platelet

44,058

39,130

12.6 %

Red cell

12,358

12,545

(1.5)%

56,416

51,675

9.2 %

Hospital disposables

Surgical

17,338

17,024

1.8 %

OrthoPAT

8,382

9,145

(8.3)%

Diagnostics

6,132

4,839

26.7 %

31,852

31,008

2.7 %

Subtotal

150,123

137,648

9.1 %

Software solutions

19,349

17,722

9.2 %

Equipment & other

17,198

14,663

17.3 %

Net revenues

$    186,670

$    170,033

9.8 %

Year Ended

3/31/2012

4/2/2011

% Inc/(Dec)

As Reported

As Reported

vs Prior Year

Revenues by geography

United States

$    352,160

$    317,355

11.0 %

International

375,684

359,339

4.5 %

Net revenues

$    727,844

$    676,694

7.6 %

Disposable revenues

Plasma disposables

$    258,061

$    227,209

13.6 %

Blood center disposables

Platelet

167,946

156,251

7.5 %

Red cell

48,034

46,828

2.6 %

215,980

203,079

6.4 %

Hospital disposables

Surgical

66,619

66,503

0.2 %

OrthoPAT

31,186

35,631

(12.5)%

Diagnostics

23,087

19,414

18.9 %

120,892

121,548

(0.5)%

Subtotal

594,933

551,836

7.8 %

Software solutions

70,557

66,876

5.5 %

Equipment & other

62,354

57,982

7.5 %

Net revenues

$    727,844

$    676,694

7.6 %

Consolidated Balance Sheets

As of

3/31/2012

4/2/2011

Assets

Cash and cash equivalents

$   228,861

$   196,707

Accounts receivable, net

135,464

127,166

Inventories, net

117,163

84,387

Other current assets

45,138

40,571

Total current assets

526,626

448,831

Net PP&E

161,657

155,528

Other assets

222,349

228,905

Total assets

$ 910,632

$ 833,264

As of

3/31/2012

4/2/2011

Liabilities & Stockholders' Equity

Short term debt & current maturities

$          894

$          913

Other current liabilities

129,850

107,758

Total current liabilities

130,744

108,671

Long-term debt

2,877

3,966

Other long-term liabilities

41,936

34,491

Stockholders' equity

735,075

686,136

Total liabilities & stockholders' equity         

$ 910,632

$ 833,264

Free Cash Flow Reconciliation

Three Months Ended

3/31/2012

4/2/2011

GAAP cash flow from operations

$    33,975

$   32,139

Capital expenditures

(16,239)

(11,683)

Proceeds from sale of property, plant and equipment

485

1,134

Net investment in property, plant and equipment

(15,754)

(10,549)

Free cash flow after restructuring and transformation costs

18,221

21,590

Restructuring and transformation costs

3,088

3,222

3,088

3,222

Free cash flow before restructuring and transformation costs         

$  21,309

$ 24,812

Year Ended

3/31/2012

4/2/2011

GAAP cash flow from operations

$  115,318

$ 123,455

Capital expenditures

(53,198)

(46,669)

Proceeds from sale of property, plant and equipment

1,002

1,468

Net investment in property, plant and equipment

(52,196)

(45,201)

Free cash flow after restructuring and transformation costs

63,122

78,254

Restructuring and transformation costs

12,336

12,567

Global Med employment contracts

-

2,122

12,336

14,689

Free cash flow before restructuring and transformation costs

$  75,458

$ 92,943

Cost of Quality

(in thousands, except per share data)

The cost of quality are included in both GAAP and Non-GAAP  results. This table is intended to provide further details.

Q4 FY12

Full Year

Revenue

$  (2,013)

$   (9,012)

Standard Margin

$  (2,177)

$   (9,489)

Gross Profit

$  (2,766)

$ (11,735)

Operating Expenses

$       704

$    2,760

Operating Income

$  (3,470)

$ (14,495)

Earnings Per Share

$    (0.10)

$     (0.41)

Haemonetics Corporation Financial Summary

Reconciliation of Non-GAAP Measures

Haemonetics has presented supplemental non-GAAP financial measures as part of this earnings release.  A reconciliation is provided below that reconciles each non-GAAP financial measure with the most comparable GAAP measure.  The presentation of non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the most directly comparable GAAP measures.  There are material limitations to the usefulness of non-GAAP measures on a standalone basis, including the lack of comparability to the GAAP financial results of other companies.

These measures are used by management to monitor the financial performance of the business, inform business decision making, and forecast future results.  Performance targets for management are established based upon these non-GAAP measures.  In the reconciliations below, we have removed restructuring and transformation costs from our GAAP expenses.  Our restructuring and transformation costs are principally related to transaction costs, HS Core customer related expenses, restructuring of certain departments and the disposal of a product line. We believe this information is useful for investors because it allows for an evaluation of the Company with a focus on the performance of our core operations.

Non-GAAP Gross Profit
The use of these non-GAAP measures allows management to monitor the level of total gross profits without the costs of our business transformation.  We establish our budgets, forecasts, and performance targets on this basis.

Non-GAAP S,G&A and Non-GAAP Operating Expenses
The use of this non-GAAP measure allows management to monitor the ongoing level of spend that is necessary to support the business in a period when we are not transforming our business or completing an acquisition of in-process research and development.  We establish our budgets, forecasts, and performance targets excluding these costs.

Non-GAAP Operating Income and Non-GAAP Income before Income Taxes
The use of these non-GAAP measures allows management to monitor the level of operating and total pre-tax profits without the costs of our business transformation.  We establish our budgets, forecasts, and performance targets on this basis.

Non-GAAP Net Income and Earnings per Share
The use of these non-GAAP measures allows management to monitor the level of net income and earnings per share excluding both the costs of our business transformation, as well as any related tax effects. We establish our budgets, forecasts, and performance targets on this basis.

Reconciliation of Non-GAAP Measures for the Fourth Quarter of FY12 and FY11

Three Months Ended

3/31/2012

4/2/2011

Non-GAAP gross profit

GAAP gross profit

$         94,612

$   87,501

Restructuring and transformation costs

167

-

Non-GAAP gross profit

$        94,779

$   87,501

Non-GAAP R&D

GAAP R&D

$           8,611

$      8,786

Restructuring and transformation costs

(962)

-

Non-GAAP R&D

$          7,649

$      8,786

Non-GAAP S,G&A

GAAP S,G&A

$         65,041

$   49,820

Restructuring and transformation costs

(4,998)

(1,705)

Non-GAAP S,G&A

$        60,043

$   48,115

Non-GAAP operating expenses

GAAP operating expenses

$         73,652

$   58,606

Restructuring and transformation costs

(5,960)

(1,705)

Contingent consideration income

-

-

Non-GAAP operating expenses

$        67,692

$   56,901

Non-GAAP operating income

GAAP operating income

$         20,960

$   28,895

Restructuring and transformation costs

6,127

1,705

Contingent consideration income

-

-

Non-GAAP operating income

$        27,087

$   30,600

Non-GAAP income before taxes

GAAP income before taxes

$         21,329

$   28,572

Restructuring and transformation costs

6,127

1,705

Contingent consideration income

-

-

Non-GAAP income before taxes

$        27,456

$   30,277

Non-GAAP net income

GAAP net income

$         17,805

$   20,988

Restructuring and transformation costs

6,127

1,705

Contingent consideration income

-

-

Tax benefit associated with non-GAAP items

(3,282)

(681)

Non-GAAP net income

$        20,650

$   22,012

Non-GAAP net income per common share assuming dilution

GAAP net income per common share assuming dilution

$            0.69

$       0.81

Non-GAAP items after tax per common share assuming dilution

$              0.11

$        0.04

Non-GAAP net income per common share assuming dilution

$            0.80

$       0.85

Presented below are additional Constant Currency performance measures.  We measure different components of our business at constant currency.  We believe this information is useful for investors because it allows for an evaluation of the Company without the effect of changes in foreign exchange rates.  These results convert our local foreign currency operating results to the US Dollar at constant exchange rates of 0.833 Euro to 1.00 US Dollar and 110 Yen to 1.00 US Dollar.  They also exclude the results of our foreign currency hedging program described in Note 7 to our consolidated financial statements in our Form 10-K.

Three Months Ended

3/31/2012

4/2/2011

Non-GAAP revenues

GAAP revenue

$      186,670

$ 170,033

Foreign currency effects

(14,614)

(11,449)

Non-GAAP revenue - constant currency

$      172,056

$ 158,584

Non-GAAP net income

Non-GAAP net income, adjusted for restructuring and transformation costs

$        20,650

$   22,012

Foreign currency effects

(4,815)

(4,135)

Income tax associated with foreign currency effects

Non-GAAP net income - constant currency

$        15,835

$   17,877

Non-GAAP net income per common share assuming dilution

Non-GAAP net income per common share assuming dilution, adjusted for restructuring and transformation costs

$            0.80

$       0.85

Foreign currency effects after tax per common share assuming dilution

$            (0.18)

$       (0.16)

Non-GAAP net income per common share assuming dilution - constant currency

$            0.62

$       0.69

Reconciliation of Non-GAAP Measures for FY12 and FY11

Year Ended

3/31/2012

4/2/2011

Non-GAAP gross profit

GAAP gross profit

$      369,240

$ 355,209

Restructuring and transformation costs

1,510

-

Non-GAAP gross profit

$     370,750

$ 355,209

Non-GAAP R&D

GAAP R&D

$         36,801

$   32,656

Restructuring and transformation costs

(2,864)

-

Non-GAAP R&D

$        33,937

$   32,656

Non-GAAP S,G&A

GAAP S,G&A

$      245,261

$ 213,899

Restructuring and transformation costs

(14,947)

(8,303)

Non-GAAP S,G&A

$     230,314

$ 205,596

Non-GAAP operating expenses

GAAP operating expenses

$      280,482

$ 244,661

Restructuring and transformation costs

(17,811)

(8,303)

Contingent consideration income

1,580

1,894

Non-GAAP operating expenses

$     264,251

$ 238,252

Non-GAAP operating income

GAAP operating income

$        88,758

$ 110,548

Restructuring and transformation costs

19,321

8,303

Contingent consideration income

(1,580)

(1,894)

Non-GAAP operating income

$     106,499

$ 116,957

Non-GAAP income before taxes

GAAP income before taxes

$         89,498

$ 110,081

Restructuring and transformation costs

19,321

8,303

Contingent consideration income

(1,580)

(1,894)

Non-GAAP income before taxes

$     107,239

$ 116,490

Non-GAAP net income

GAAP net income

$         66,886

$   79,980

Restructuring and transformation costs

19,321

8,303

Contingent consideration income

(1,580)

(1,894)

Tax benefit associated with non-GAAP items

(6,227)

(2,622)

Non-GAAP net income

$        78,400

$   83,767

Non-GAAP net income per common share assuming dilution

GAAP net income per common share assuming dilution

$            2.59

$       3.12

Non-GAAP items after tax per common share assuming dilution

$            0.45

$        0.15

Non-GAAP net income per common share assuming dilution

$            3.04

$       3.27

Presented below are additional Constant Currency performance measures.  We measure different components of our business at constant currency.  We believe this information is useful for investors because it allows for an evaluation of the Company without the effect of changes in foreign exchange rates.  These results convert our local foreign currency operating results to the US Dollar at constant exchange rates of 0.833 Euro to 1.00 US Dollar and 110 Yen to 1.00 US Dollar.  They also exclude the results of our foreign currency hedging program described in Note 7 to our consolidated financial statements in our Form 10-K.

Year Ended

3/31/2012

4/2/2011

Non-GAAP revenues

GAAP revenue

$       727,844

$        676,694

Foreign currency effects

(54,720)

(41,237)

Non-GAAP revenue - constant currency

$       673,124

$635,457

Non-GAAP net income

Non-GAAP net income, adjusted for restructuring, transformation costs and
contingent consideration income

$         78,400

$         83,767

Foreign currency effects

(14,479)

(13,207)

Income tax associated with foreign currency effects

2

Non-GAAP net income - constant currency

$         63,921

$         70,562

Non-GAAP net income per common share assuming dilution

Non-GAAP net income per common share assuming dilution, adjusted for
restructuring, transformation costs and contingent consideration income

$             3.04

$            3.27

Foreign currency effects after tax per common share assuming dilution

$           (0.56)

$          (0.51)

Non-GAAP net income per common share assuming dilution - constant currency

$             2.48

$            2.76

Restructuring and Transformation Costs

(in thousands)

GAAP results include the following items which are excluded from adjusted results.

Three Months Ended

3/31/2012

4/2/2011

Restructuring and Transformation

$     2,774

$   1,705

HS Core Claims

(1,097)

-

Transaction Costs

4,450

-

Contingent Consideration

-

-

Total

$   6,127

$ 1,705

Twelve Months Ended

3/31/2012

4/2/2011

Restructuring and Transformation

$   11,759

$   8,303

HS Core Claims

3,112

-

Transaction Costs

4,450

-

Contingent Consideration

(1,580)

(1,894)

Total

$ 17,741

$ 6,409