Haemonetics Reports Double Digit Growth in Revenue, Operating Income, and EPS for the Third Quarter Fiscal 2009
Company Increases Full Year Expectations for Revenue Growth
Excluding restructuring charges in both fiscal 2008 and 2009, third
quarter fiscal 2009 adjusted operating income was
Q3FY09 AND YEAR-TO-DATE FINANCIALS(1)
As noted,
Adjusted operating expenses were
Third quarter adjusted operating income was
Third quarter and year-to-date interest and other income declined due to
lower interest rates, exchange rate volatility in the quarter, and lower
invested cash as
Adjusted earnings per share were
REVENUE GROWTH HIGHLIGHTS
Plasma disposables revenue was
Blood bank disposables revenue was
Red cell disposables revenue was
Software and services revenue was
Surgical/diagnostics disposables revenue was
OrthoPAT(R) orthopedic perioperative autotransfusion system disposables
revenue was
Equipment revenue was
FISCAL 2009 GUIDANCE
The Company raised its annual revenue guidance to 15-16% growth (from
12-14% growth) on stronger than planned sales of plasma disposables, blood
bank disposables, and equipment sales, with strong contribution from each of
the geographies. Adjusted operating income is expected to grow 23-25%, and
adjusted earnings per share are expected to be between
For the full year 2009, the Company expects to generate
As part of this release,
CONFERENCE CALL
This release contains forward-looking statements that involve risks and
uncertainties, including technological advances in the medical field and
standards for transfusion medicine and our ability to successfully implement
products that incorporate such advances and standards, product demand, market
acceptance, regulatory uncertainties, 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, the effect of industry consolidation as seen
in the plasma market, the effect of communicable diseases and the effect of
uncertainties in markets outside the U.S. (including
(1) A reconciliation of GAAP to adjusted financial results is included at
the end of the financial sections of this press release as well as on the web
at http://www.haemonetics.com/investors. In the quarter,
Haemonetics Corporation Financial Summary
(Unaudited data in thousands, except per share data)
Consolidated Statements of Income for the Third Quarter FY09
12/27/08 As 12/29/07 As % Inc/(Dec)
Reported Reported vs Prior Year
------------ ------------ --------------
NET REVENUES $155,447 $134,587 15.5%
Gross profit 78,296 66,558 17.6%
R&D 5,840 5,529 5.6%
S,G&A 47,965 41,432 15.8%
Operating expenses 53,805 46,961 14.6%
------ ------
Operating income 24,491 19,597 25.0%
Interest income, net 449 1,070 (58.0%)
Other (expense)/income, net (1,451) 225 (744.9%)
------ ---
Income before taxes 23,489 20,892 12.4%
Tax expense 7,273 6,538 11.2%
------- -------
NET INCOME $16,216 $14,354 13.0%
======= =======
Net income per common
share assuming dilution $0.62 $0.54 14.5%
Weighted average number of shares
Basic 25,375 25,500
Diluted 26,056 26,437
Inc/(Dec) vs
prior year
profit
Profit Margins: margin %
-------------
Gross profit 50.4% 49.5% 0.9%
R&D 3.8% 4.1% (0.3%)
S,G&A 30.9% 30.8% 0.1%
Operating income 15.8% 14.6% 1.2%
Income before taxes 15.1% 15.5% (0.4%)
Net income 10.4% 10.7% (0.3%)
Consolidated Statements of Income for FY09 Year-To-Date
12/27/08 As 12/29/07 As % Inc/(Dec)
Reported Reported vs Prior Year
------------ ------------ --------------
NET REVENUES $445,482 $377,701 17.9%
Gross profit 226,022 187,940 20.3%
R&D 16,901 18,532 (8.8%)
S,G&A 141,687 119,418 18.6%
Operating expenses 158,588 137,950 15.0%
------- -------
Operating income 67,434 49,990 34.9%
Interest income, net 1,569 4,037 (61.1%)
Other (expense)/income, net (2,366) 1,905 (224.2%)
------ -----
Income before taxes 66,637 55,932 19.1%
Tax expense 21,272 17,733 20.0%
------- -------
NET INCOME $45,365 $38,199 18.8%
======= =======
Net income per common share
assuming dilution $1.73 $1.43 21.5%
Weighted average number
of shares
Basic 25,340 25,881
Diluted 26,163 26,776
Inc/(Dec) vs
prior year
profit
Profit Margins: margin %
-------------
Gross profit 50.7% 49.8% 0.9%
R&D 3.8% 4.9% (1.1%)
S,G&A 31.8% 31.6% 0.2%
Operating income 15.1% 13.2% 1.9%
Income before taxes 15.0% 14.8% 0.2%
Net income 10.2% 10.1% 0.1%
Operating expense as % of
net Revenue 35.6% 36.5%
Arbitration Award Income 0.0% 0.0%
EPS to 3 decimals $1.734 $1.427 21.5%
Revenue Analysis for the Third Quarter and Year-To-Date FY09
Third Quarter
-------------
% Increase
12/27/08 As 12/29/07 As vs. Prior
Reported Reported Year
------------ ------------ ----------
Revenues by Geography
United States $73,448 $61,481 19.5%
International $81,999 $73,106 12.2%
------- -------
Net Revenues $155,447 $134,587 15.5%
======== ========
Disposable Revenues by
Product Family
Donor:
Plasma $53,594 $41,253 29.9%
Blood Bank $36,435 $33,207 9.7%
Red Cell $13,051 $12,478 4.6%
------- -------
$103,080 $86,938 18.6%
-------- -------
Patient:
Surgical / Diagnostic $22,967 $18,981 21.0%
OrthoPAT $9,112 $9,086 0.3%
------ ------
$32,079 $28,067 14.3%
------- -------
Subtotal $135,159 $115,005 17.5%
Equipment $10,246 $8,485 20.8%
Software & Services $10,042 $11,097 (9.5%)
------- -------
Net Revenues $155,447 $134,587 15.5%
======== ========
Nine Months Ended
-----------------
% Increase
12/27/08 As 12/29/07 As vs. Prior
Reported Reported Year
------------ ------------ ----------
Revenues by Geography
United States $205,748 $170,085 21.0%
International $239,734 $207,616 15.5%
-------- --------
Net Revenues $445,482 $377,701 17.9%
======== ========
Disposable Revenues by
Product Family
Donor:
Plasma $150,386 $114,788 31.0%
Blood Bank $108,388 $100,399 8.0%
Red Cell $36,651 $34,257 7.0%
------- -------
$295,425 $249,444 18.4%
-------- --------
Patient:
Surgical / Diagnostic $66,077 $50,907 29.8%
OrthoPAT $26,301 $25,122 4.7%
------- -------
$92,378 $76,029 21.5%
------- -------
Subtotal $387,803 $325,473 19.2%
Equipment $27,388 $22,286 22.9%
Software & Services $30,291 $29,942 1.2%
------- -------
Net Revenues $445,482 $377,701 17.9%
======== ========
Consolidated Balance Sheets
Period ending
---------------------------
12/27/08 3/29/08
-------- -------
Assets
------
Cash & cash equivalents $125,325 $133,553
Accounts receivable, net 124,575 120,252
Inventories, net 73,557 65,388
Other current assets 30,435 40,241
------ ------
Total current assets 353,892 359,434
Net PP&E 129,470 116,484
Other assets 138,986 133,032
------- -------
Total assets $622,348 $608,950
======== ========
Period ending
---------------------------
9/27/08 3/29/08
------- -------
Liabilities & Stockholders'
Equity
-------------------------
S/T debt & current
maturities $4,434 $6,326
Other current liabilities 81,100 91,351
------ ------
Total current liabilities 85,534 97,677
Long-term debt 5,522 6,037
Other long-term
liabilities 15,504 11,048
Stockholders' equity 515,788 494,188
------- -------
Total liabilities &
equity $622,348 $608,950
======== ========
FREE CASH FLOW RECONCILIATION
Three Months Ended
------------------
12/27/08 12/29/07
-------- --------
GAAP CASH FLOW FROM OPERATIONS $30,881 $24,876
------- -------
Capital expenditures (16,895) (15,242)
Proceeds from sale of property, plant and equipment 25 1,187
-- -----
Net investment in property, plant and equipment (16,870) (14,055)
------- -------
Free Cash Flow $14,011 $10,821
======= =======
Nine Months Ended
-----------------
12/27/08 12/29/07
-------- --------
GAAP CASH FLOW FROM OPERATIONS $72,658 $45,754
------- -------
Capital expenditures (45,670) (42,497)
Proceeds from sale of property, plant and equipment 2,522 3,149
----- -----
Net investment in property, plant and equipment (43,148) (39,348)
------- -------
Free Cash Flow $29,510 $6,406
======= ======
Haemonetics Corporation Financial Summary
Reconciliation of Non-GAAP Measures
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
from our GAAP expenses. These restructuring costs result from a significant
transformation of our business during the third quarter and first nine months
of our fiscal years 2009 and 2008. This transformation resulted in the
formation of a shared service center in
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 Third Quarter of FY09
and FY08
-------- --------
12/27/08 12/29/07
-------- --------
GAAP Gross Profit $78,296 $66,558
Restructuring Costs 0 0
---- ------
Non-GAAP Gross Profit $78,296 $66,558
======= =======
GAAP S,G&A $47,965 $41,432
Restructuring Costs (432) (1,225)
---- ------
Non-GAAP S,G&A $47,533 $40,207
======= =======
GAAP Operating Expenses $53,805 $46,961
Restructuring Costs (432) (1,225)
---- ------
Non-GAAP Operating Expenses $53,373 $45,736
======= =======
GAAP Operating Income $24,491 $19,597
Restructuring Costs 432 1,225
---- ------
Non-GAAP Operating income $24,923 $20,822
======= =======
GAAP Income before taxes $23,489 $20,892
Restructuring Costs 432 1,225
---- ------
Non-GAAP Income before taxes $23,921 $22,117
======= =======
GAAP Net Income $16,216 $14,354
Restructuring Costs 432 1,225
Tax benefit associated with
Restructuring Costs (152) (386)
---- ------
Non-GAAP Net Income $16,496 $15,193
======= =======
GAAP Net Income per common share
assuming dilution $0.62 $0.54
Restructuring Costs after tax per
common share assuming dilution $0.01 $0.03
---- ------
Non-GAAP Net Income per common share
assuming dilution $0.63 $0.57
===== =====
Reconciliation of Non-GAAP Measures for the First Nine Months of FY09
and FY08
-------- --------
12/27/08 12/29/07
-------- --------
GAAP Gross Profit $226,022 $187,940
Restructuring Costs 72 0
---- ------
Non-GAAP Gross Profit $226,094 $187,940
======== ========
GAAP S,G&A $141,687 $119,418
Restructuring Costs (2,605) (4,009)
------ ------
Non-GAAP S,G&A $139,082 $115,409
======== ========
GAAP Operating Expenses $158,588 $137,950
Restructuring Costs (2,605) (4,009)
------ ------
Non-GAAP Operating Expenses $155,983 $133,941
======== ========
GAAP Operating Income $67,434 $49,990
Restructuring Costs 2,677 4,009
------ ------
Non-GAAP Operating income $70,111 $53,999
======= =======
GAAP Income before taxes $66,637 $55,932
Restructuring Costs 2,677 4,009
------ ------
Non-GAAP Income before taxes $69,314 $59,941
======= =======
GAAP Net Income $45,365 $38,199
Restructuring Costs 2,677 4,009
Tax benefit associated with Restructuring Costs (939) (1,341)
------ ------
Non-GAAP NET INCOME $47,103 $40,867
======= =======
GAAP Net Income per common share
assuming dilution $1.73 $1.43
Restructuring Costs after tax per common share
assuming dilution $0.07 $0.10
------ ------
Non-GAAP Net Income per common share
assuming dilution $1.80 $1.53
===== =====
CONTACT:
Julie Fallon
Tel. (781) 356-9517
Alternate Tel. (617) 320-2401
fallon@haemonetics.com
SOURCEHaemonetics Corporation -0-02/02/2009 /CONTACT:Julie Fallon , +1-781-356-9517, Alternate Tel. +1-617-320-2401, fallon@haemonetics.com/ /Web Site: http://www.haemonetics.com/ / (HAE) CO:Haemonetics Corporation ST:Massachusetts IN: MTC SU: ERN CCA ERP PR -- NE64097 -- 919702/02/2009 08:32 EST http://www.prnewswire.com