UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 2, 2011
HAEMONETICS CORPORATION
(Exact name of registrant as specified in its charter)
| Massachusetts | 1-14041 | 04-2882273 | ||
| (State or other jurisdiction | (Commission | (I.R.S. Employer | ||
| of incorporation) | File Number) | Identification No.) |
| 400 Wood Road | 02184 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code 781-848-7100
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On May 2, 2011, Haemonetics Corporation (the “Company”) issued a press release announcing financial
results for the fourth quarter ended April 2, 2011. A copy of the release is furnished with this
report as exhibit 99.1.
The information in this current report on Form 8-K and the exhibit attached hereto shall not be
deemed “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934 (the
“Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act,
regardless of any general incorporation language in such filing.
Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS
| (c) | Exhibits |
99.1: Press Release of Haemonetics Corporation dated May 2, 2011 announcing financial results for
the fourth quarter ended April 2, 2011.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HAEMONETICS CORPORATION (Registrant) |
||||
| Date: May 2, 2011 | /s/ Christopher Lindop | |||
| Christopher Lindop, Vice President and | ||||
| Chief Financial Officer | ||||
3
EXHIBIT INDEX
| 99.1 | Press Release issued by Haemonetics Corporation on May 2, 2011. |
4
Exhibit 99.1
| FOR RELEASE: | CONTACT: | |||
Date
|
May 2, 2011 | Bryanne Salmon | ||
Time
|
8:00 am Eastern | Tel. (781) 356-9613 | ||
| bsalmon@haemonetics.com | ||||
Haemonetics Reports 15% Growth in Adjusted EPS to $3.27 for Fiscal 2011
Issues Guidance for Continued Revenue Growth in Fiscal 2012 of 4%- 6%
Issues Guidance for Continued Revenue Growth in Fiscal 2012 of 4%- 6%
Braintree, MA, May 2, 2011— Haemonetics Corporation (NYSE: HAE) today reported record revenues of
$677 million, up 5% for fiscal 2011. An extra week in fiscal 2010 reduced fiscal 2011 annual
revenue growth by 2% and fourth quarter revenue growth by 7%.
Fourth quarter fiscal 2011 GAAP net revenues were $170 million, up 1%, and up 8% excluding the
effect of the extra week in fiscal 2010. Net income was $21 million, up more than 100%, and
earnings per share were $0.81, up more than 100%. Excluding transformation costs and contingent
consideration income in fiscal 2010, adjusted fourth quarter net income was $22 million, up 13%,
and earnings per share were $0.85, up
12%.1
For the year, Haemonetics reported GAAP net revenues of $677 million, up 5%, and up 7% excluding
the effect of the extra week in fiscal 2010. Net income was $80 million, up 37%, and earnings per
share were $3.12, up 40%. Excluding transformation costs and contingent consideration income,
adjusted full year net income was $84 million, up 13%, and adjusted earnings per share were $3.27,
up 15%.1
Haemonetics ended the year with nearly $200 million in cash and $5 million of debt, and generated
$93 million of free cash flow before funding $15 million in cash transformation costs.
Brian Concannon, Haemonetics’ President and CEO, said “I am very pleased with our continued strong
earnings growth and cash flow generation despite the challenging market environment we faced in
fiscal 11. This marks the eighth straight year of double digit adjusted earnings per share growth
at Haemonetics.”
STRATEGIC AND SEGMENT GROWTH HIGHLIGHTS
Haemonetics continues to make progress expanding its business. The Company reported the following
highlights:
| • | The launch of IMPACT™ Online 3.0 — a proprietary web based blood management dash board to enhance blood management by hospital leadership. | ||
| • | 197 Global IMPACT customers in fiscal 2011 driving solid revenue growth, with rapid adoption by our European customer base. | ||
| • | The successful integration of our software businesses aimed at delivering the “information highway” focused on the compliance, productivity, availability and safety of blood products from the donor to the patient. | ||
| • | Launch of Cell Saver Elite™ designed to meet our customers growing blood management needs. |
As noted, Haemonetics’ fiscal 2011 reported revenues were $677 million, up 5%. Excluding the
effect of the extra week in fiscal 2010, fiscal 2011 revenues were up 7% for the year. Fiscal 2011
annual revenues break down as follows:
Plasma disposables revenue was $227 million for the year, down 2%, and flat excluding the effect of
the extra week. Haemonetics’ plasma business growth has accelerated over the course of the year
following
Haemonetics Corporation • 400 Wood Road • Braintree, MA 02184 USA
a cyclical adjustment in the commercial Plasma business earlier this year. Plasma revenues have
also been negatively impacted by a change in collection practices in Japan.
Blood bank
Platelet disposables revenue was $156 million for the year, up 3%, and up 5% excluding the effect
of the extra week. Platelet revenues benefited from strong sales in emerging markets.
Red cell disposables revenue was $47 million for the year, down 3%, and down 1% excluding the
effect of the extra week. Revenue declined due to decreased demand for red cells as a result of
declining surgical procedures and fewer transfusions.
Hospital
Surgical disposables revenue was $67 million for the year, down 5%, and down 3% excluding the
effect of the extra week. The surgical business was challenged by declining surgical procedures.
OrthoPAT® orthopedic perioperative autotransfusion system disposables revenue was $36
million for the year, down 4%, and down 2% excluding the effect of the extra week. OrthoPAT growth
at IMPACT accounts was 14% reinforcing our confidence in IMPACT selling. The Company is making
improvements to the reliability of our OrthoPAT system and will continue to advance Quick Connect™
to reinforce the value proposition of this important blood management device.
Diagnostics revenue was $19 million for the year, up 16%, and up 18% excluding the effect of the
extra week. Revenues related to the TEG Thrombelastograph® Hemostasis Analyzer business
were also driven by the Company’s IMPACT initiative.
Software Solutions revenue was $67 million for the year, up 86%. We integrated the Global Med
acquisition and significantly enhanced our offering of software products for our Blood Bank and
Hospital customers.
Equipment and other revenue was $58 million for the year, up 7%. Placements of equipment under use
plans were strong with 7% total growth in our installed base during the year.
Haemonetics reported revenue growth in all geographies for the year, with North American sales up
4%, European sales up 4%, Japanese sales up 1%, and Asian sales up 20%.
FISCAL
2012 GUIDANCE1
Haemonetics announced its fiscal 2012 annual guidance for organic revenue growth of 4-6%, adjusted
operating income growth of 8-10% excluding the impact of planned transformation and integration
costs of approximately $8 million, and adjusted earnings per share of $3.50 to $3.62. The Company
expects more than 200 basis point gross margin improvement and
approximately 70 basis points of
adjusted operating margin improvement, and a tax rate of approximately 28%. For the year, the
Company expects to generate approximately $85 million of adjusted free cash flow before funding $9
million of cash transformation costs.
Mr. Concannon added. “As demand for blood components returns to normal levels, we are uniquely
positioned with compelling products and services to help our customers with their growing blood
management needs in this period of health care reform. We are gaining traction implementing our
blood management solutions and this is contributing to improved growth rates in our hospital and
blood center products.”
Haemonetics has posted several items on its website: fiscal 2012 guidance; income scenarios
reflecting guidance ranges; and potential fiscal 2012 product category growth. The information is
posted at http://phx.corporate-ir.net/phoenix.zhtml?c=72118&p=irol-guidance.
Haemonetics Corporation • 400 Wood Road • Braintree, MA 02184 USA
FISCAL 2012 SHARE REPURCHASE PROGRAM
The Company announced that its Board of Directors has approved a $50 million share repurchase.
ANNUAL INVESTOR DAY
Haemonetics is hosting its annual investor and analyst day on Thursday, May 12th at its
corporate headquarters in Braintree, MA. Information on the event is posted on the Haemonetics
website.
CONFERENCE CALL
Haemonetics will host a webcast on Monday, May 2nd at 10:00 am Eastern to discuss these
results. Interested parties can participate at
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=72118&eventID=3909107
Haemonetics (NYSE: HAE) is a global healthcare company dedicated to providing innovative blood
management solutions for our customers. Together, our devices and consumables, information
technology platforms, and consulting services deliver a suite of business solutions to help our
customers improve clinical outcomes and reduce the cost of healthcare for blood collectors,
hospitals, and patients around the world. Our technologies address important medical markets:
blood and plasma component collection, the surgical suite, and hospital transfusion services. To
learn more about Haemonetics, visit our web site at http://www.haemonetics.com.
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 Europe and Asia) in which we operate and other
risks detailed in the Company’s filings with the Securities and Exchange Commission. The foregoing
list should not be construed as exhaustive. The forward-looking statements are based on estimates
and assumptions made by management of the Company and are believed to be reasonable, though are
inherently uncertain and difficult to predict. Actual results and experience could differ
materially from the forward-looking statements.
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.
In FY11 Haemonetics incurred $8.3 million in transformation costs
related to the integration of Global Med and the transformation of our European sales organization
and certain manufacturing activities, and recorded $1.9 million in contingent consideration income,
all amounts stated pre-tax. The total earnings per share effect of the amounts excluded from our
non-GAAP earnings per share were $0.15 in FY11. Our FY12 guidance excludes $8 million of planned
transformation and integration costs associated with the infrastructure supporting our research and
supply chain organization and the integration of our software solutions business.
Haemonetics Corporation • 400 Wood Road • Braintree, MA 02184 USA
Haemonetics Corporation Financial Summary
(Unaudited data in thousands, except per share data)
(Unaudited data in thousands, except per share data)
Consolidated Statements of Income for the Fourth Quarter of FY11 and FY10
| 4/2/2011 | 4/3/2010 | % Inc/(Dec) | ||||||||||
| As Reported | As Reported | 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 | ||||||||||
| Inc/(Dec) vs | ||||||||||||
| prior year profit | ||||||||||||
| Profit Margins: | 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 | 4/3/2010 | % Inc/(Dec) vs | ||||||||||
| As Reported | As Reported | 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 | ||||||||||
| Inc/(Dec) vs | ||||||||||||
| prior year profit | ||||||||||||
| Profit Margins: | 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 | 4/3/2010 | % Inc/(Dec) vs | ||||||||||
| As Reported | As Reported | 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 | 4/3/2010 | % Inc/(Dec) vs | ||||||||||
| As Reported | As Reported | 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 | 118,684 | ||||||
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
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 | ||||