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): May 3, 2004
HAEMONETICS CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Massachusetts 1-10730 04-2882273
(State or other jurisdiction of (Commission (IRS Employer
incorporation or organization) File Number) Identification Number)
400 Wood Road
Braintree, MA 02184
(Address of principal executive (Zip Code)
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 May 3, 2004 Haemonetics Corporation (the "Company") issued a press
release regarding its financial results for the quarter and fiscal year
ended April 3, 2004 and outlook for fiscal 2005. 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 May 3, 2004 of Haemonetics Corporation.
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
Date: May 3, 2004 By: s/Ronald J. Ryan
-------------------------------
Ronald J. Ryan, Vice President
and Chief Financial Officer
3
EXHIBIT 99.1
FOR RELEASE: CONTACT:
Date: May 3, 2004 Lisa Lopez
Time: 4:30 pm Eastern Tel. (781) 356-9517
Alternate Tel. (617) 320-2401
fallon@haemonetics.com
Haemonetics Reports Fourth Quarter and
Fiscal Year End Results and Sets Fiscal 2005 Guidance
BRAINTREE, MA - Haemonetics Corporation reported today fourth quarter and
fiscal year end 2004 financial results which exceed company guidance.
For the quarter, net revenues were $98 million, a 21% increase over the
fourth quarter fiscal 2003. Net earnings per share were $0.37. For the fiscal
year, net revenues were $364 million, an 8% increase over fiscal 2003.
Revenues were boosted by the ongoing strength of Haemonetics' red cell and
OrthoPAT(R) product lines which grew more than 40% for the year. Fiscal 2004
net earnings per share were $1.19.
In line with guidance the Company provided at the beginning of the
fiscal year, Haemonetics met its goal of closing the year with a gross
margin of 47.3%, up from 45.9% in fiscal 2003, and an improved operating
margin, 12.6% versus 11.1% in fiscal 2003.
In reporting on financial results, Ronald Ryan, Haemonetics' Chief
Financial Officer commented, "We have been very successful at leveraging
sales increases to the profit line as a result of continued financial
discipline. For the quarter, we leveraged 21% sales growth into
33% gross profit growth and a 139% increase in operating income. For the
full year, we leveraged 8% sales growth into 11% gross profit growth and a
22% increase in operating income. This performance is a direct result of
structural manufacturing cost reductions and operating expense management."
Net earnings for the fiscal year include a second quarter reorganization
charge of $2.6 million, as well as the positive effects of a 53rd sales week
resulting from the policy Haemonetics uses to determine its fiscal year end.
About half of the quarterly and annual revenue growth is the result of the
positive impact of foreign exchange.
The Company further strengthened its balance sheet in fiscal 2004,
highlighted by an annual $14 million inventory reduction and an annual cash
increase of $68 million to an ending cash balance of $118 million. The
Company achieved $76 million of cash flow from operating activities for the
year and excellent management of working capital assets.
Brad Nutter, Haemonetics' President and CEO, said, "I am very pleased with
the state of the business despite challenges in the year. We exceeded the
financial goals set at the beginning of the year while making significant
progress on our core competency review which is the foundation for a long
term strategic plan. We supported our core businesses by strengthening our
partnerships and gaining market share."
PRODUCT LINE HIGHLIGHTS
Plasma disposables revenue was $27 million for the quarter, up 4% over
Q4:03, and $114 million for the year, level with fiscal 03. Annual plasma
sales were negatively affected $7 million by the loss of Haemonetics'
largest customer after it was purchased by a competitor in October 2003.
Blood bank disposables revenue was $30 million for the quarter, up 22% over
Q4:03, and $112 million for the year, up 12% over fiscal 03. Platelet
disposables represent the majority of the blood bank product
line, and about 80% of platelet disposables revenues are in Europe and
Japan. These regions both gained market share and experienced favorable
impact from currency for the quarter and the year.
Red cell disposables revenue was $7 million for the quarter, up 54% over
Q4:03, and $22 million for the year, up 43.6% over fiscal 03. Haemonetics
had planned to add two new customers per quarter. Actual results were
significantly higher as the Company added 15 new customers, including 12
more Red Cross regions. Haemonetics' double red cell technology is now
installed at more than half of the 36 Red Cross regions. The regions
combined collect about 4 million units of red cells annually in the United
States, almost one-third of the U.S. blood supply.
Patient disposables revenue was $22 million for the quarter, up 25% over
Q4:03, and $77 million for the year, up 12.2% over fiscal 03. These
revenues were boosted by competitive customer gains, OrthoPAT brand
disposables growth of more than 65%, and increased market penetration in
underserved markets.
Miscellaneous and services revenue was $7 million, up 53% over Q4:03, and
$22 million for the full year, up 20% over fiscal 03. Haemonetics'
subsidiary, Fifth Dimension Information Systems', had excellent growth.
Its revenues now represent about one third of total miscellaneous and service
revenues.
FISCAL YEAR 2005 GUIDANCE
Haemonetics announced fiscal year 05 guidance of mid-single digit revenue
growth, gross profit margin in the high forties, operating income growing
more than 20%, improved operating margin, and net earnings per share from
$1.38 to $1.43. This guidance includes the favorable impact of currency
which is expected to contribute more than half the revenue growth
and more than $0.20 to net earnings per share. Disposables revenues by
product line including the effects of currency are expected to be in the
following ranges: plasma declining in the high single digits, blood bank
growing in the low double digits, patient growing in the low double digits
(with OrthoPAT disposables sales contributing about 50% growth), and red cell
growing about 35-40%.
Haemonetics will hold a conference call on Tuesday, May 4th at 9:00 am
eastern to review financial and operational highlights. Interested parties
can participate by calling (800) 231-5571 (US only) or (973) 935-8504. The
call will be replayed through May 18th at (877) 519-4471 (US only) or (973)
341-3080 using PIN 4677770.
Non-GAAP financial reconciliation will be posted on the Company's website
prior to the conference call.
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.
To learn more about Haemonetics' products and markets, visit its 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
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 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.
###
Haemonetics Corporation Financial Summary for the Fourth Quarter FYE04
Consolidated Statements of Income
(Unaudited data in thousands, except per share data)
% Inc/(Dec)
INCOME STATEMENT 4/3/2004 3/29/2003 vs prior year
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NET REVENUES $97,721 $80,881 20.8%
Gross profit 48,041 36,218 32.6%
R&D 4,102 4,830 (15.1%)
S, G & A 29,250 25,249 15.8%
Operating expenses 33,352 30,079 10.9%
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Operating income 14,689 6,139 139.3%
Interest expense (668) (965) (30.8%)
Interest income 574 1,103 (48.0%)
Other income, net 291 772 (62.3%)
------- -------
Income before taxes 14,886 7,049 111.2%
Tax expense 5,358 2,572 108.3%
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NET INCOME $ 9,528 $ 4,477 112.8%
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Net income per common share
assuming dilution $ 0.37 $ 0.18 105.6%
Weighted average number of shares
Basic 24,997 24,108
Diluted 25,439 24,362
Inc/(Dec) vs
prior year
profit margin
PROFIT MARGINS: %
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Gross profit 49.2% 44.8%
R&D 4.2% 6.0%
S, G & A 29.9% 31.2%
Operating income 15.0% 7.6% 7.4%
Income before taxes 15.2% 8.7% 6.5%
Net income 9.8% 5.5%
Haemonetics Corporation Financial Summary for FYE04
Consolidated Statements of Income
(Unaudited data in thousands, except per share data)
% Inc/(Dec)
Income Statement: 4/3/2004 3/29/2003 vs prior year
- ---------------------------------------------------------------------------
NET REVENUES $364,229 $336,956 8.1%
Gross profit 172,120 154,696 11.3%
R&D 17,793 19,512 (8.8%)
S, G & A 108,450 97,705 11.0%
Operating expenses 126,243 117,217 7.7%
Operating income 45,877 37,479 22.4%
Interest expense (2,903) (3,495) (16.9%)
Interest income 1,848 2,214 (16.5%)
Other income, net 990 2,409 (58.9%)
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Income before taxes 45,812 38,607 18.7%
Tax expense 16,492 10,228 61.2%
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NET INCOME $ 29,320 $ 28,379 3.3%
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Net income per common share
assuming dilution $ 1.19 $ 1.13 5.3%
Weighted average number of shares
Basic 24,435 24,591
Diluted 24,695 25,048
Inc/(Dec) vs
prior year
profit margin
PROFIT MARGINS: %
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Gross profit 47.3% 45.9%
R&D 4.9% 5.8%
S, G & A 29.8% 29.0%
Operating income 12.6% 11.1% 1.5%
Income before taxes 12.6% 11.4% 1.2%
Net income 8.0% 8.4%
Haemonetics Corporation Financial Summary for FYE 04
Revenue Analysis
(Unaudited data in thousands)
Fourth quarter Twelve Months Ended
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REVENUE ANALYSIS 4/3/2004 3/29/2003 % Inc/(Dec) 4/3/2004 3/29/2003 % Inc/(Dec)
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Revenues by Geography
United States $32,631 $30,541 6.8 $126,872 $127,241 (0.3)
International 65,090 50,340 29.3 237,357 209,715 13.2
Net Revenues $97,721 $80,881 20.8 $364,229 $336,956 8.1
Disposable Revenues by Product Family
Donor:
Plasma 27,207 26,058 4.4 114,346 114,436 (0.1)
Blood Bank 29,879 24,547 21.7 112,209 99,921 12.3
Red Cell 7,182 4,662 54.1 22,321 15,542 43.6
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64,268 55,267 16.3 248,876 229,899 8.3
Patient:
Surgical $21,622 $17,365 24.5 $ 76,664 $ 68,321 12.2
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Subtotal $85,890 $72,632 18.3 $325,540 $298,220 9.2
Equipment 5,136 3,870 32.7 16,687 20,381 (18.1)
Misc & Service 6,695 4,379 52.9 22,002 18,355 19.9
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Net Revenues $97,721 $80,881 20.8 $364,229 $336,956 8.1
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Haemonetics Corporation Financial Summary for FYE04
Consolidated Balance Sheets
(Unaudited data in thousands)
Period ending Period ending
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BALANCE SHEET: 4/3/2004 3/29/2003 4/3/2004 3/29/2003
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Assets Liabilities & Stockholders' Equity
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Cash & cash equivalents $118,117 $ 49,885 S/T debt & current maturities $ 32,818 $ 39,005
Accounts receivable, net 82,640 78,582 Other current liabilities 63,025 61,647
Inventories, net 52,235 65,805 -------- --------
Other current assets 28,457 29,260 Total current liabilities 95,843 100,652
-------- -------- Deferred tax liability, net 1,682 0
Total current assets 281,449 223,532 Long-term debt 25,442 31,612
Net PP&E 78,030 83,987 Other long-term liabilities 4,678 3,984
Other assets 47,915 51,966 Stockholders' equity 279,749 223,237
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Total assets $407,394 $359,485 Total liabilities & equity $407,394 $359,485
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