Press Release Details

Haemonetics Corporation Financial Summary

(Unaudited data in thousands, except per share data)

Consolidated Statements of Income for the Fourth Quarter of FY11 and FY10

4/2/2011
As Reported

4/3/2010
As Reported

% Inc/(Dec)
vs Prior Year

NET REVENUES

$170,033

$169,104

0.5%

Gross profit

87,501

88,124

(0.7%)

R&D

8,786

6,662

31.9%

S,G&A

49,820

64,024

(22.2%)

Contingent consideration income

-

(2,345)

(100.0%)

Asset writedowns

-

15,686

(100.0%)

Operating expenses

58,606

84,027

(30.3%)

Operating income

28,895

4,097

605.3%

Interest expense

(105)

(20)

425.0%

Interest income

83

90

(7.8%)

Other (expense)/income, net

(301)

(278)

8.3%

Income before taxes

28,572

3,889

634.6%

Tax expense

7,584

(78)

(9823.1%)

NET INCOME

$20,988

$3,967

429.0%

Net income per common share

assuming dilution

$0.81

$0.15

424.7%

Weighted average number of shares

Basic

25,509

25,192

Diluted

25,970

25,816

Profit Margins:

Inc/(Dec) vs prior

year profit margin %

Gross profit

51.5%

52.1%

(0.7%)

R&D

5.2%

3.9%

1.2%

S,G&A

29.3%

37.9%

(8.6%)

Operating income

17.0%

2.4%

14.6%

Income before taxes

16.8%

2.3%

14.5%

Net income

12.3%

2.3%

10.0%

Consolidated Statements of Income for FY11 and FY10

4/2/2011
As Reported

4/3/2010
As Reported

% Inc/(Dec)

vs Prior Year

NET REVENUES

$676,694

$645,430

4.8%

Gross profit

355,208

337,481

5.3%

R&D

32,657

26,376

23.8%

S,G&A

213,899

214,483

(0.3%)

Contingent consideration income

(1,894)

(2,345)

(19.2%)

Asset writedowns

-

15,686

(100.0%)

Operating expenses

244,662

254,200

(3.8%)

Operating income

110,546

83,281

32.7%

Interest expense

(6)

(742)

(99.2%)

Interest income

384

399

(3.8%)

Other (expense)/income, net

(843)

(1,667)

(49.4%)

Income before taxes

110,081

81,271

35.4%

Tax expense

30,101

22,901

31.4%

NET INCOME

$79,980

$58,370

37.0%

Net income per common share

assuming dilution

$3.12

$2.24

39.5%

Weighted average number of shares

Basic

25,077

25,451

Diluted

25,596

26,063

Profit Margins:

Inc/(Dec) vs prior

year profit margin %

Gross profit

52.5%

52.3%

0.2%

R&D

4.8%

4.1%

0.7%

S,G&A

31.6%

33.2%

(1.6%)

Operating income

16.3%

12.9%

3.4%

Income before taxes

16.3%

12.6%

3.7%

Net income

11.8%

9.0%

2.8%

Revenue Analysis for the Fourth Quarter and Year Ended FY11 and FY10

Fourth Quarter

4/2/2011
As Reported

4/3/2010
As Reported

% Inc/(Dec)

vs Prior Year

Revenues by geography

United States

$80,277

$79,053

1.5%

International

$89,756

$90,051

(0.3%)

Net revenues

$170,033

$169,104

0.5%

Disposable revenues

Plasma disposables

$54,965

$54,910

0.1%

Blood bank disposables

Platelet

$39,130

$39,677

(1.4%)

Red cell

$12,545

$12,746

(1.6%)

$51,675

$52,423

(1.4%)

Hospital disposables

Surgical

$17,024

$18,022

(5.5%)

OrthoPAT

$9,145

$9,953

(8.1%)

Diagnostics

$4,839

$4,884

(0.9%)

$31,008

$32,859

(5.6%)

Subtotal

$137,648

$140,192

(1.8%)

Software solutions

$17,722

$10,109

75.3%

Equipment & other

$14,663

$18,803

(22.0%)

Net revenues

$170,033

$169,104

0.5%

Year Ended

4/2/2011
As Reported

4/3/2010
As Reported

% Inc/(Dec)

vs Prior Year

Revenues by geography

United States

$317,355

$303,965

4.4%

International

$359,339

$341,465

5.2%

Net revenues

$676,694

$645,430

4.8%

Disposable revenues

Plasma disposables

$227,210

$232,378

(2.2%)

Blood bank disposables

Platelet

$156,250

$151,026

3.5%

Red cell

$46,828

$48,031

(2.5%)

$203,078

$199,057

2.0%

Hospital disposables

Surgical

$66,503

$69,942

(4.9%)

OrthoPAT

$35,631

$37,079

(3.9%)

Diagnostics

$19,413

$16,771

15.8%

$121,547

$123,792

(1.8%)

Subtotal

$551,835

$555,227

(0.6%)

Software solutions

$66,878

$35,919

86.2%

Equipment & other

$57,981

$54,284

6.8%

Net revenues

$676,694

$645,430

4.8%

Consolidated Balance Sheets

Period ending

4/2/11

4/3/10

Assets

Cash & cash equivalents

$196,707

$141,562

Accounts receivable, net

127,166

118,580

Inventories, net

84,387

79,953

Other current assets

40,802

45,847

Total current assets

449,062

385,942

Net PP&E

155,528

154,313

Other assets

226,397

224,050

Total assets

$830,987

$764,305

Period ending

4/2/11

4/3/10

Liabilities & Stockholders' Equity

S/T debt & current maturities

$913

$16,062

Other current liabilities

105,780

118,861

Total current liabilities

106,693

134,923

Long-term debt

3,966

4,589

Other long-term liabilities

34,192

31,669

Stockholders' equity

686,136

593,124

Total liabilities & equity

$830,987

$764,305

Free Cash Flow Reconciliation

Three Months Ended

4/2/11

4/3/10

GAAP cash flow from operations

$30,976

$36,686

Capital expenditures

(11,683)

(11,428)

Proceeds from sale of property, plant and equipment

1,134

1,175

Net investment in property, plant and equipment

(10,549)

(10,253)

Free cash flow after transformation and deal costs

$20,427

$26,433

Transformation and deal costs

3,222

1,686

3,222

1,686

Free cash flow before transformation and deal costs

$23,649

$28,119

Year Ended

4/2/11

4/3/10

GAAP cash flow from operations

$123,455

$130,667

Capital expenditures

(46,669)

(56,304)

Proceeds from sale of property, plant and equipment

1,468

1,785

Net investment in property, plant and equipment

(45,201)

(54,519)

Free cash flow

$78,254

$76,148

Transformation and deal costs

12,567

1,686

Global Med employment contracts

2,122

-

14,689

1,686

Free cash flow before transformation and deal costs

$92,943

$77,834

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 costs, contingent consideration income, and asset writedowns from our GAAP expenses. Our restructuring is related to the integration of Global Med Technologies and the repositioning of our sales force. 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 FY11 and FY10

04/02/11

04/03/10

Non-GAAP gross profit

GAAP gross profit

$87,501

$88,124

Non-GAAP gross profit

$87,501

$88,124

Non-GAAP S,G&A

GAAP S,G&A

$49,820

$64,024

Restructuring, deal integration and closing costs

(1,705)

(10,364)

Non-GAAP S,G&A

$48,115

$53,660

Non-GAAP operating expenses

GAAP operating expenses

$58,606

$84,027

Restructuring, deal integration and closing costs

(1,705)

(10,364)

Contingent consideration income

-

2,345

Asset writedowns

-

(15,686)

Non-GAAP operating expenses

$56,901

$60,322

Non-GAAP operating income

GAAP operating income

$28,895

$4,097

Restructuring, deal integration and closing costs

1,705

10,364

Contingent consideration income

-

(2,345)

Asset writedowns

-

15,686

Non-GAAP operating income

$30,600

$27,802

Non-GAAP income before taxes

GAAP income before taxes

$28,572

$3,889

Restructuring, deal integration and closing costs

1,705

10,364

Contingent consideration income

-

(2,345)

Asset writedowns

-

15,686

Non-GAAP income before taxes

$30,277

$27,594

Non-GAAP net income

GAAP net income

$20,988

$3,967

Restructuring, deal integration and closing costs

1,705

10,364

Contingent consideration income

-

(2,345)

Asset writedowns

-

15,686

Tax benefit associated with non-GAAP items

(682)

(8,202)

Non-GAAP net income

$22,012

$19,470

Non-GAAP net income per common share assuming dilution

GAAP net income per common share assuming dilution

$0.81

$0.15

Non-GAAP items after tax per common share assuming dilution

$0.04

$0.60

Non-GAAP net income per common share assuming dilution

$0.85

$0.75

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 $1.20 per Euro, and 110 Yen to the $1.00. 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.

Non-GAAP revenues

GAAP revenue

$170,033

$169,104

Foreign currency effects

(11,449)

(9,673)

Non-GAAP revenue - constant currency

$158,584

$159,431

Non-GAAP net income

Non-GAAP net income, adjusted for restructuring and deal integration costs, contingent consideration income, and asset writedowns

$22,012

$19,470

Foreign currency effects

(4,135)

(3,202)

Income tax associated with foreign currency effects

-

1

Non-GAAP net income - constant currency

17,877

16,269

Non-GAAP net income per common share assuming dilution

Non-GAAP net income per common share assuming dilution, adjusted for restructuring and deal integration costs, contingent consideration income, and asset writedowns

$0.85

$0.75

Foreign currency effects after tax per common share assuming dilution

($0.16)

($0.12)

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

$0.69

$0.63

Reconciliation of Non-GAAP Measures for FY11 and FY10

04/02/11

04/03/10

Non-GAAP gross profit

GAAP gross profit

$355,208

$337,481

Non-GAAP gross profit

$355,208

$337,481

Non-GAAP S,G&A

GAAP S,G&A

$213,899

$214,483

Restructuring, deal integration and closing costs

(8,303)

(10,814)

Non-GAAP S,G&A

$205,596

$203,669

Non-GAAP operating expenses

GAAP operating expenses

$244,662

$254,200

Restructuring, deal integration and closing costs

(8,303)

(10,814)

Contingent consideration income

1,894

2,345

Asset writedowns

-

(15,686)

Non-GAAP operating expenses

$238,253

$230,045

Non-GAAP operating income

GAAP operating income

$110,546

$83,281

Restructuring, deal integration and closing costs

8,303

10,814

Contingent consideration income

(1,894)

(2,345)

Asset writedowns

-

15,686

Non-GAAP operating income

$116,955

$107,436

Non-GAAP income before taxes

GAAP income before taxes

$110,081

$81,271

Restructuring, deal integration and closing costs

8,303

10,814

Contingent consideration income

(1,894)

(2,345)

Asset writedowns

-

15,686

Non-GAAP income before taxes

$116,490

$105,426

Non-GAAP net income

GAAP net income

$79,980

$58,370

Restructuring, deal integration and closing costs

8,303

10,814

Contingent consideration income

(1,894)

(2,345)

Asset writedowns

-

15,686

Tax benefit associated with non-GAAP items

(2,622)

(8,359)

Non-GAAP net income

$83,767

$74,166

Non-GAAP net income per common share assuming dilution

GAAP net income per common share assuming dilution

$3.12

$2.24

Non-GAAP items after tax per common share assuming dilution

$0.15

$0.61

Non-GAAP net income per common share assuming dilution

$3.27

$2.85

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 $1.20 per Euro, and 110 Yen to the $1.00. 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.

Non-GAAP revenues

GAAP revenue

$676,694

$645,430

Foreign currency effects

(41,237)

(40,151)

Non-GAAP revenue - constant currency

$635,457

$605,279

Non-GAAP net income

Non-GAAP net income, adjusted for restructuring and deal integration costs, contingent consideration income, and asset writedowns

$83,767

$74,166

Foreign currency effects

(13,207)

(13,957)

Income tax associated with foreign currency effects

2

23

Non-GAAP net income - constant currency

70,562

60,232

Non-GAAP net income per common share assuming dilution

Non-GAAP net income per common share assuming dilution, adjusted for restructuring and deal integration costs, contingent consideration income, and asset writedowns

$3.27

$2.85

Foreign currency effects after tax per common share assuming dilution

($0.51)

($0.54)

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

$2.76

$2.31