SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): July 24, 2003
HAEMONETICS CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Massachusetts 1-10730 04-2882273
- ------------------------------- ---------------- ----------------------
(State or other jurisdiction of (Commission File (IRS Employer
incorporation or organization) Number) Identification Number)
400 Wood Road
Braintree, MA 02184
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(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code (781) 848-7100
Item 9. Regulation FD Disclosure.
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The following information is intended to be included under "Item 12.
Results of Operations and Financial Condition" and is included under this
Item 9 in accordance with SEC Release No. 33-8216.
On July 24,2003 Haemonetics Corporation (the "Company") issued a
press release regarding its financial results for the quarter ended June
28, 2003. The Company's press release is attached as Exhibit 99.1 to this
Current Report on Form 8-K.
The information in this Current Report on Form 8-K and the Exhibit
attached hereto shall not be deemed "filed" for purposes of Section 18 of
the Securities 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.
Exhibits
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99.1 Press Release dated July 24, 2003, of Haemonetics Corporation.
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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
Date: July 24, 2003 By: s/Ronald J. Ryan
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Ronald J. Ryan, Senior Vice President
and Chief Financial Officer
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Exhibit 99.1
FOR RELEASE: CONTACT:
Date: July 24, 2003 Lisa Lopez
7:00 am Tel. (781) 356-9517
Alternate Tel. (617) 320-2401
fallon@haemonetics.com
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HAEMONETICS REPORTS FIRST QUARTER FINANCIAL RESULTS
- --Company Also Announces Reorganization Plans --
Braintree, MA, July 24, 2003 - Haemonetics Corporation today announced
earnings per share of $0.21 for its first quarter ended June 28, 2003.
Revenues for the first quarter were $88.3 million, an increase of 7.7% over
the previous year. The Company announced that first quarter results
exceeded its internal plans and reconfirmed full fiscal year guidance of
high single digit revenue growth and earnings per share of $1.13.
FIRST QUARTER HIGHLIGHTS
Brad Nutter, the Company's President and CEO, commented, "I am pleased with
the results of the first quarter; we have achieved our internal
expectations. Revenues were driven by contributions throughout each area
of the business. Furthermore, we have begun to implement an organizational
model that gives greater focus and accountability to the organization."
For the first quarter of fiscal 2004, the Company reported net income of
$5.0 million, or $0.21 per diluted share, compared to $6.8 million, or
$0.26 per diluted share, in the first quarter last year; foreign exchange
and a tax rate increase were the primary contributors to the decrease from
the previous year. Operating income for the first quarter was $7.8
million, versus $9.8 million in the same quarter last year; the decline was
largely due to foreign exchange. The income tax rate in the first quarter
was 36%, versus 31% in the previous year.
Plasma disposables revenues increased 3% to $29.6 million over the previous
year, with the market for source plasma collection, as anticipated,
remaining somewhat soft.
Bloodbank disposables revenue increased 8% to $25.9 million, driven by
strong growth around the globe, particularly in the Asian and European
markets.
Worldwide red cell disposables revenue increased by 29% to $4.6 million.
U.S. red cell disposables revenue growth was 38%. Haemonetics continues to
see success in expanding
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automated red cell collection programs with existing customers in both the
fixed and mobile environments and also in starting programs with new blood
centers. Two additional American Red Cross regions commenced automated red
cell collection programs in the first quarter; nine of the Red Cross's 35
regions (representing 2 million total units of blood collected) have now
deployed Haemonetics technology for red cell collection.
Surgical disposables revenue grew 6% to $18.3 million, driven largely by
increases in OrthoPAT usage. As anticipated, end user use of OrthoPAT for
orthopedic surgical cell salvage increased by 47% as orthopedic physicians
continued to embrace cell salvage as a cost effective strategy to minimize
costly blood transfusions and make the orthopedic surgical process less
taxing to the patient.
Particularly strong geographic growth was seen in Europe at 23% and Asia at
16%.
WORLDWIDE REORGANIZATION ANNOUNCED
Haemonetics also said it planned to reorganize the Company into two
worldwide "Donor" and "Patient" divisions to better serve its customers.
The Donor division will deliver products and value added services to blood
banks and plasma collectors worldwide. The Patient division will deliver
products and value added services to hospital surgical suites worldwide.
The new divisions are designed to speed decision making, improve customer
service, simplify organizational structure, and reduce expenses.
Specifics of the reorganization are currently being finalized. The fiscal
2004 financial impact of the reorganization is anticipated to be neutral to
earnings.
FISCAL 2004 OUTLOOK REAFFIRMED
The Company reaffirmed its previously-communicated financial guidance for
fiscal 2004, including revenue growth in the high single digits; gross
margin in the mid- to high 40% range; a modest improvement in operating
margin over fiscal 2003; a tax rate increase to 36% from last year's 27%;
and a positive contribution in the second half from foreign exchange of
$0.05 to $0.10 compared with fiscal 2003. Haemonetics continues to expect
the combination of these factors to result in earnings per share flat with
those reported in fiscal 2003.
Supporting this outlook, the Company said that its expectations were based
upon its previously announced product line sales guidance for fiscal 2004,
which projected blood bank and plasma disposables growth to be flat.
Surgical disposables growth, including both cardiovascular and orthopedic
cell salvage, is targeted to grow in the double digits. The Company
expects its OrthoPAT sales to mirror end-user growth of 40% to 50% by the
second half of fiscal 2004. Red cell disposables are anticipated to grow
at a rate of 40% to 50% and result in an increase in U.S. penetration to 4%
of all red cells collected.
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NEWLY-ADOPTED STOCK OWNERSHIP POLICY
Haemonetics also announced an executive share ownership policy under which
senior management and members of the Board of Directors will be required to
meet specific beneficial ownership guidelines.
Ronald A. Matricaria, the Company's non-executive Chairman of the Board,
stated, "This stock ownership program is consistent with the goal of
Haemonetics to align management's interests with those of our shareholders.
With this alignment, we believe that this program will further help enhance
shareholder value."
Haemonetics will hold a conference call to review information contained in
this release at 10am (Eastern). Interested parties may listen to the call
at (877) 691-0879 or (973) 582-2745 (international). The call will be
replayed through August 7, 2003, at 5pm Eastern. The replay can be
accessed at (877) 519-4471 (domestic) or (973) 341-3080 (international)
with PIN 3688864. Additional information will be available on our website
prior to the start of the conference call.
About Haemonetics Corporation
Haemonetics (NYSE: HAE) is a global company engaged in the design,
manufacture and worldwide marketing of automated blood processing systems.
These systems address important medical markets: surgical blood salvage,
blood component collection, plasma collection, and blood component safety.
Haemonetics has been recognized by Forbes magazine as one of the nation's
best small companies. To learn more about Haemonetics, visit the Company's
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,
product demand, market acceptance, regulatory and political uncertainties,
the effect of economic conditions, the impact of competitive products and
pricing, blood product reimbursement policies and practices, foreign
currency exchange rates and other risks detailed in the Company's filings
with the Securities and Exchange Commission. 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.
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Haemonetics Corporation Financial Summary for the First Quarter FYE04
Consolidated Statements of Income
(Unaudited data in thousands, except per share data)
% Inc/(Dec)
INCOME STATEMENT 6-28-03 6-29-02 vs prior year
- ---------------- ------- ------- -------------
NET REVENUES $88,283 $81,935 7.7%
Gross profit 39,586 38,647 2.4%
R&D 4,997 4,939 1.2%
S, G & A 26,403 24,016 9.9%
Operating expenses 31,400 28,955 8.4%
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Operating income 8,186 9,692 (15.5%)
Interest expense (786) (877) (10.4%)
Interest income 283 441 (35.8%)
Other income, net 103 563 (81.7%)
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Income before taxes 7,786 9,819 (20.7%)
Tax expense 2,803 3,044 (7.9%)
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NET INCOME 4,983 6,775 (26.5%)
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Net income per common share
assuming dilution $ 0.21 $ 0.26 (20.7%)
Weighted average number of shares
Basic 24,063 25,318
Diluted 24,223 26,110
Inc/(Dec) vs
prior year
PROFIT MARGINS: profit margin %
- --------------- ---------------
Gross profit 44.8% 47.1%
R&D 5.6% 6.0%
S, G & A 29.9% 29.3%
Operating income 9.3% 11.8% (2.5%)
Income before taxes 8.8% 12.0% (3.2%)
Net income 5.6% 8.3%
Haemonetics Corporation Financial Summary for the First Quarter FYE04
Revenue Analysis
(Unaudited data in thousands)
First quarter
-----------------------------------
REVENUE ANALYSIS 6-28-03 6-29-02 % Inc/(Dec)
- ---------------- ------- ------- -----------
Revenues by Geography
United States $31,552 $30,930 2.0
International 56,731 51,005 11.2
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Net Revenues $88,283 $81,935 7.7
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Disposable Revenues by Product Line
Surgical $18,293 $17,263 6.0
Blood Bank 25,949 24,039 7.9
Red Cell 4,564 3,528 29.4
Plasma 29,589 28,658 3.2
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Subtotal $78,395 $73,488 6.7
Equipment 4,486 4,419 1.5
Misc & Service 5,402 4,028 34.1
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Net Revenues $88,283 $81,935 7.7
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Haemonetics Corporation Financial Summary for the First Quarter FYE04
Consolidated Balance Sheets
(Unaudited data in thousands)
Period ending Period ending
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BALANCE SHEET: 6-28-03 3-29-03 6-28-03 3-29-03
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Assets Liabilities & Stockholders' Equity
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Cash & available for sale investments $ 50,190 $ 49,885 S/T debt & current maturities $ 38,633 $ 39,005
Accounts receivable, net 84,326 77,913 Other current liabilities 59,511 61,370
Inventories, net 64,178 65,805 -------- --------
Other current assets 32,531 29,652 Total current liabilities 98,144 100,375
-------- -------- Long-term debt 31,502 31,612
Total current assets 231,225 223,255 Other long-term liabilities 4,100 3,984
Net PP&E 82,923 83,987 Stockholders' equity 232,437 223,237
Other assets 52,035 51,966 -------- --------
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Total assets $366,183 $359,208 Total liabilities & equity $366,183 $359,208
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