Haemonetics Reports Strong Double Digit Growth in Revenue, Net Income, and EPS for Fiscal 2009 and Issues Guidance for Continued, Strong Growth in Fiscal 2010
For the year,
Fourth quarter fiscal 2009 GAAP net revenues were
STRATEGIC AND SEGMENT GROWTH HIGHLIGHTS(1)
-- Preferred provider contracts with Octapharma US in its plasma business
which can capitalize on ongoing collection market growth
-- Launch of a new plasma protocol that reduces plasma collection times,
and therefore, significantly improves customers' productivity
-- Ongoing business development activity culminating in the acquisitions
of Altivation(R) Software in March 2009 and Neoteric Technologies in
April 2009 which strategically broadened the Company's blood
management solutions
-- Integration and expanded geographic marketing of the TEG hemostasis
analyzer business, which was acquired late in fiscal 08
-- Integration of manufacturing and human resources into the Company's
enterprise resource planning system with Phase 2 completion in April
2009
As noted,
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 2010 GUIDANCE
Mr. Concannon added, "With current economic trends,
FISCAL 2010 SHARE REPURCHASE PROGRAM
The Company announced that its Board of Directors has approved a
ANNUAL INVESTOR DAY
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,
CONTACT:
Julie Fallon
Tel. (781) 356-9517
Alternate Tel. (617) 320-2401
fallon@haemonetics.com
Haemonetics Corporation Financial Summary
(Unaudited data in thousands, except per share data)
Consolidated Statements of Income for the Fourth Quarter FY09
3/28/09 As 3/29/08 As % Inc/(Dec) vs
Reported Reported Prior Year
----------- ----------- ---------------
NET REVENUES $152,397 $138,739 9.8%
Gross Profit 82,147 70,141 17.1%
R&D 6,958 5,790 20.2%
S,G&A 57,056 44,042 29.5%
Operating Expenses 64,014 49,832 28.5%
------ ------
Operating Income 18,133 20,309 (10.7%)
Interest Expense (4) (24) (83.3%)
Interest Income 339 1,028 (67.0%)
Other (Expense)/
Income, Net (103) 69 (249.3%)
------ ------
Income Before Taxes 18,365 21,382 (14.1%)
Tax Expense 4,426 7,589 (41.7%)
------- -------
NET INCOME $13,939 $13,793 1.1%
======= =======
Net Income Per
Common Share
Assuming Dilution $0.53 $0.52 2.7%
Weighted Average
Number of Shares
Basic 25,535 25,653
Diluted 26,197 26,602
Inc/(Dec) vs
prior year
Profit Margins: profit margin %
-----------------
Gross Profit 53.9% 50.6% 3.3%
R&D 4.6% 4.2% 0.4%
S,G&A 37.4% 31.7% 5.7%
Operating Income 11.9% 14.6% (2.7%)
Income Before Taxes 12.1% 15.4% (3.3%)
Net Income 9.1% 9.9% (0.8%)
Consolidated Statements of Income for Fiscal Year End 09
3/28/09 As 3/29/08 As % Inc/(Dec) vs
Reported Reported Prior Year
----------- ----------- ---------------
NET REVENUES $597,879 $516,440 15.8%
Gross Profit 308,169 257,725 19.6%
R&D 23,859 24,322 (1.9%)
S,G&A 198,743 163,116 21.8%
Operating Expenses 222,602 187,438 18.8%
------- -------
Operating Income 85,567 70,287 21.7%
Interest Expense (191) (377) (49.3%)
Interest Income 2,094 5,418 (61.4%)
Other (Expense)/
Income, Net (2,469) 1,974 (225.1%)
------ -----
Income Before Taxes 85,001 77,302 10.0%
Tax Expense 25,698 25,322 1.5%
------- -------
NET INCOME $59,303 $51,980 14.1%
======= =======
Net Income Per
Common Share
Assuming Dilution $2.27 $1.94 16.6%
Weighted Average
Number of Shares
Basic 25,389 25,824
Diluted 26,173 26,746
Inc/(Dec) vs
prior year
Profit Margins: profit margin %
-----------------
Gross Profit 51.5% 49.9% 1.6%
R&D 4.0% 4.7% (0.7%)
S,G&A 33.2% 31.6% 1.6%
Operating Income 14.3% 13.6% 0.7%
Income Before Taxes 14.2% 15.0% (0.8%)
Net Income 9.9% 10.1% (0.2%)
Revenue Analysis for the Fourth Quarter and Fiscal Year End 09
Fourth Quarter
--------------
% Increase
3/28/09 As 3/29/08 As vs. Prior
Reported Reported Year
----------- ----------- ----------
Revenues by Geography
United States $73,297 $62,727 16.9%
International $79,100 $76,012 4.1%
------- -------
Net Revenues $152,397 $138,739 9.8%
======== ========
Disposable Revenues by Product Family
Donor:
Plasma $51,787 $40,430 28.1%
Blood Bank $35,032 $35,749 (2.0%)
Red Cell $12,857 $12,120 6.1%
------- -------
$99,676 $88,299 12.9%
------- -------
Patient:
Surgical / Diagnostic $21,501 $21,178 1.5%
OrthoPAT $9,118 $9,179 (0.7%)
------ ------
$30,619 $30,357 0.9%
------- -------
Subtotal $130,295 $118,656 9.8%
Equipment $8,127 $10,527 (22.8%)
Software & Services $13,972 $9,556 46.2%
------- ------
Net Revenues $152,394 $138,739 9.8%
======== ========
Twelve Months Ended
-------------------
% Increase
3/28/09 As 3/29/08 As vs. Prior
Reported Reported Year
----------- ----------- ----------
Revenues by Geography
United States $279,045 $232,812 19.9%
International $318,834 $283,628 12.4%
-------- --------
Net Revenues $597,879 $516,440 15.8%
======== ========
Disposable Revenues by Product Family
Donor:
Plasma $202,173 $155,218 30.3%
Blood Bank $143,420 $136,148 5.3%
Red Cell $49,508 $46,377 6.8%
------- -------
$395,101 $337,743 17.0%
-------- --------
Patient:
Surgical / Diagnostic $87,578 $72,085 21.5%
OrthoPAT $35,419 $34,301 3.3%
------- -------
$122,997 $106,386 15.6%
-------- --------
Subtotal $518,098 $444,129 16.7%
Equipment $35,515 $32,813 8.2%
Software & Services $44,263 $39,498 12.1%
------- -------
Net Revenues $597,876 $516,440 15.8%
======== ========
Consolidated Balance Sheets
Period ending
-------------------------
3/28/09 3/29/08
------- -------
Assets
------
Cash & Cash Equivalents $156,721 $133,553
Accounts Receivable, Net 113,598 120,252
Inventories, Net 76,522 65,388
Other Current Assets 26,668 40,241
------ ------
Total Current Assets 373,509 359,434
Net PP&E 137,807 116,484
Other Assets 130,926 133,032
------- -------
Total Assets $642,242 $608,950
======== ========
Period ending
-------------------------
3/28/09 3/29/08
------- -------
Liabilities & Stockholders' Equity
----------------------------------
S/T Debt & Current Maturities $695 $6,326
Other Current Liabilities 82,293 91,351
------ ------
Total Current Liabilities 82,988 97,677
Long-Term Debt 5,343 6,037
Other Long-Term Liabilities 14,026 11,048
Stockholders' Equity 539,885 494,188
------- -------
Total Liabilities & Equity $642,242 $608,950
======== ========
FREE CASH FLOW RECONCILIATION
Three Months Ended
------------------
3/28/09 3/29/08
------- -------
GAAP CASH FLOW FROM OPERATIONS $47,413 $31,879
------- -------
Capital Expenditures (14,416) (15,293)
Proceeds from Sale of Property, Plant and Equipment (139) (1,315)
---- ------
Net Investment in Property, Plant and Equipment (14,555) (16,608)
------- -------
Free Cash Flow $32,858 $15,271
======= =======
Twelve Months
Ended
-------------
3/28/09 3/29/08
------- -------
GAAP CASH FLOW FROM OPERATIONS $116,596 $77,669
-------- -------
Capital Expenditures (56,611) (57,790)
Proceeds from Sale of Property, Plant and Equipment 2,383 1,834
----- -----
Net Investment in Property, Plant and Equipment (54,228) (55,956)
------- -------
Free Cash Flow $62,368 $21,713
======= =======
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 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
Fourth Quarter of FY09 and FY08
-------- --------
03/28/09 03/29/08
-------- --------
Non-GAAP Gross Profit
GAAP Gross Profit $82,147 $70,141
Restructuring Costs 0 0
------- -------
Non-GAAP Gross Profit $82,147 $70,141
======= =======
Non-GAAP S,G&A
GAAP S,G&A $57,056 $44,042
Restructuring Costs (4,359) (2,384)
------- -------
Non-GAAP S,G&A $52,697 $41,658
======= =======
Non-GAAP Operating Expenses
GAAP Operating Expenses $64,014 $49,832
Restructuring Costs (4,359) (2,384)
Non-GAAP Operating Expenses $59,655 $47,448
======= =======
Non-GAAP Operating Income
GAAP Operating Income $18,133 $20,309
Restructuring Costs 4,359 2,384
------- -------
Non-GAAP Operating Income $22,492 $22,693
======= =======
Non-GAAP Income Before Taxes
GAAP Income Before Taxes $18,365 $21,382
Restructuring Costs 4,359 2,384
------- -------
Non-GAAP Income Before Taxes $22,724 $23,766
======= =======
Non-GAAP Net Income
GAAP Net Income $13,939 $13,793
Restructuring Costs 4,359 2,384
------- -------
Tax Benefit Associated
with Restructuring Costs (1,381) (847)
------- -------
Non-GAAP NET INCOME $16,917 $15,330
======= =======
Non-GAAP Net Income Per Common Share
Assuming Dilution
GAAP Net Income Per Common Share
Assuming Dilution $0.53 $0.52
Restructuring Costs After Tax Per
Common Share Assuming Dilution $0.11 $0.06
----- -----
Non-GAAP Net Income Per Common Share
Assuming Dilution $0.65 $0.58
===== =====
Reconciliation of Non-GAAP Measures for FY09 and FY08
-------- --------
03/28/09 03/29/08
-------- --------
Non-GAAP Gross Profit
GAAP Gross Profit $308,169 $257,725
Restructuring Costs 72 0
-------- --------
Non-GAAP Gross Profit $308,241 $257,725
======== ========
Non-GAAP S,G&A
GAAP S,G&A $198,743 $163,116
Restructuring Costs (6,964) (6,307)
-------- --------
Non-GAAP S,G&A $191,779 $156,809
======== ========
Non-GAAP Operating Expenses
GAAP Operating Expenses $222,602 $187,438
Restructuring Costs (6,964) (6,307)
-------- --------
Non-GAAP Operating Expenses $215,638 $181,131
======== ========
Non-GAAP Operating Income
GAAP Operating Income $85,567 $70,287
Restructuring Costs 7,036 6,307
------- -------
Non-GAAP Operating Income $92,603 $76,594
======= =======
Non-GAAP Income Before Taxes
GAAP Income Before Taxes $85,001 $77,302
Restructuring Costs 7,036 6,307
------- -------
Non-GAAP Income Before Taxes $92,037 $83,609
======= =======
Non-GAAP Net Income
GAAP Net Income $59,303 $51,980
Restructuring Costs 7,036 6,307
Tax Benefit Associated with
Restructuring Costs (2,320) (2,067)
------- -------
Non-GAAP NET INCOME $64,019 $56,220
======= =======
Non-GAAP Net Income Per Common Share
Assuming Dilution
GAAP Net Income Per Common Share
Assuming Dilution $2.27 $1.94
Restructuring Costs After Tax Per
Common Share Assuming Dilution $0.18 $0.16
----- -----
Non-GAAP Net Income Per Common Share
Assuming Dilution $2.45 $2.10
===== =====
SOURCEHaemonetics Corporation -0-05/04/2009 /CONTACT:Julie Fallon ofHaemonetics Corporation , +1-781-356-9517, or Alternate Tel., +1-617-320-2401, fallon@haemonetics.com/ /Web Site: http://www.haemonetics.com / (HAE) CO:Haemonetics Corporation ST:Massachusetts IN: MEQ HEA SU: ERN ERP CCA PR -- NE09403 -- 450305/04/2009 08:00 EDT http://www.prnewswire.com