DELAWARE | 000-30109 | 74-2747608 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
12212 TECHNOLOGY BLVD., AUSTIN, TEXAS | 78727 | |
(Address of principal executive offices) | (Zip Code) |
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)) |
Exhibit No. | Description | |
99.1 | Press Release issued by Luminex Corporation dated August 3, 2015. |
Date: August 3, 2015 | LUMINEX CORPORATION | ||
By: | /s/ Harriss T. Currie | ||
Name: | Harriss T. Currie | ||
Title: | Chief Financial Officer, Senior Vice President of Finance |
Exhibit No. | Description | |
99.1 | Press Release issued by Luminex Corporation dated August 3, 2015. |
• | Increased second quarter 2015 revenue by 6 percent to $58.9 million, over the second quarter of 2014. |
• | Grew second quarter 2015 assay revenue by 22 percent to $24.2 million over results from the second quarter of 2014. |
• | Increased Q2 2015 royalty revenue by 17 percent to $11.1 million over the second quarter of 2014. |
• | Increased gross profit margin to 73 percent for the second quarter of 2015, up 4 points from the second quarter of 2014. |
• | Settled the litigation with Enzo Life Sciences, Inc. ("Enzo"), resulting in an expense of $7.1 million. The after-tax impact of the settlement decreased second quarter net earnings by approximately $0.12 per diluted share. |
• | Delivered GAAP net income for the second quarter of $2.6 million, including the effect of the litigation settlement, or $0.06 per diluted share. Non-GAAP net income for the second quarter was $11.6 million, or $0.27 per diluted share (see Non-GAAP reconciliation). |
• | Improved in operating profit for the quarter by over 100% as a result of expanding revenues and expense control |
• | Submitted 510(k) applications to the FDA for approval of the ARIES® System and ARIES® HSV 1&2 Assay in July after the second quarter’s close. |
Three Months Ended | ||||||||
June 30, | Variance | |||||||
2015 | 2014 | ($) | (%) | |||||
(unaudited) | ||||||||
System sales | $ 6,543 | $ 8,304 | $ (1,761) | (21 | )% | |||
Consumable sales | 11,878 | 12,629 | (751) | (6 | )% | |||
Royalty revenue | 11,073 | 9,476 | 1,597 | 17 | % | |||
Assay revenue | 24,238 | 19,886 | 4,352 | 22 | % | |||
All other revenue | 5,185 | 5,337 | (152) | (3 | )% | |||
$ 58,917 | $ 55,632 | $ 3,285 | 6 | % | ||||
Six Months Ended | ||||||||
June 30, | Variance | |||||||
2015 | 2014 | ($) | (%) | |||||
(unaudited) | ||||||||
System sales | $ 12,507 | $ 14,704 | $ (2,197) | (15 | )% | |||
Consumable sales | 21,774 | 25,397 | (3,623) | (14 | )% | |||
Royalty revenue | 21,775 | 19,525 | 2,250 | 12 | % | |||
Assay revenue | 49,684 | 41,546 | 8,138 | 20 | % | |||
All other revenue | 10,918 | 11,021 | (103) | (1 | )% | |||
$ 116,658 | $ 112,193 | $ 4,465 | 4 | % | ||||
• | Infectious disease assay sales were approximately 66 percent of total assay sales for the quarter and genetic testing assays were 34 percent. |
• | Royalty revenues reflect total royalty-bearing end-user sales for the quarter of $122.0 million. |
• | 234 multiplexing analyzers were shipped during the quarter, which included 119 MAGPIX systems, 94 LX systems, and 21 FLEXMAP 3D systems. |
• | Cash and investments at quarter-end totaled $127.1 million. |
• | Days sales outstanding (DSO) was 34 days at quarter-end. |
LUMINEX CORPORATION | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands) | |||||||
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 111,064 | $ | 91,694 | |||
Short-term investments | 10,003 | — | |||||
Accounts receivable, net | 22,177 | 28,272 | |||||
Inventories, net | 32,598 | 36,616 | |||||
Deferred income taxes | 6,217 | 12,203 | |||||
Prepaids and other | 10,672 | 8,235 | |||||
Total current assets | 192,731 | 177,020 | |||||
Property and equipment, net | 47,903 | 39,945 | |||||
Intangible assets, net | 54,704 | 56,382 | |||||
Deferred income taxes | 15,121 | 15,400 | |||||
Long-term investments | 6,005 | 15,975 | |||||
Goodwill | 49,619 | 49,619 | |||||
Other | 2,949 | 3,185 | |||||
Total assets | $ | 369,032 | $ | 357,526 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 8,045 | $ | 11,841 | |||
Accrued liabilities | 17,305 | 14,118 | |||||
Deferred revenue | 4,410 | 4,407 | |||||
Total current liabilities | 29,760 | 30,366 | |||||
Deferred revenue | 2,117 | 2,297 | |||||
Other | 4,763 | 4,869 | |||||
Total liabilities | 36,640 | 37,532 | |||||
Stockholders' equity: | |||||||
Common stock | 42 | 42 | |||||
Additional paid-in capital | 312,073 | 309,424 | |||||
Accumulated other comprehensive loss | (1,077 | ) | (744 | ) | |||
Retained earnings | 21,354 | 11,272 | |||||
Total stockholders' equity | 332,392 | 319,994 | |||||
Total liabilities and stockholders' equity | $ | 369,032 | $ | 357,526 | |||
LUMINEX CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Revenue | $ | 58,917 | $ | 55,632 | $ | 116,658 | $ | 112,193 | |||||||
Cost of revenue | 15,647 | 17,485 | 33,169 | 34,092 | |||||||||||
Gross profit | 43,270 | 38,147 | 83,489 | 78,101 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 11,510 | 11,308 | 21,655 | 22,392 | |||||||||||
Selling, general and administrative | 21,025 | 20,970 | 40,504 | 40,415 | |||||||||||
Amortization of acquired intangible assets | 776 | 965 | 1,678 | 1,985 | |||||||||||
Restructuring costs | — | 133 | — | 353 | |||||||||||
Total operating expenses | 33,311 | 33,376 | 63,837 | 65,145 | |||||||||||
Income from operations | 9,959 | 4,771 | 19,652 | 12,956 | |||||||||||
Interest expense from long-term debt | — | — | — | (6 | ) | ||||||||||
Other income, net | 57 | (1 | ) | 951 | (20 | ) | |||||||||
Settlement of litigation | (7,100 | ) | — | (7,300 | ) | — | |||||||||
Income before income taxes | $ | 2,916 | $ | 4,770 | $ | 13,303 | $ | 12,930 | |||||||
Income tax expense | (287 | ) | (45 | ) | (3,221 | ) | (2,239 | ) | |||||||
Net income | $ | 2,629 | $ | 4,725 | $ | 10,082 | $ | 10,691 | |||||||
Net income per share, basic | $ | 0.06 | $ | 0.11 | $ | 0.24 | $ | 0.26 | |||||||
Shares used in computing net income per share, basic | 42,093 | 41,560 | 41,984 | 41,384 | |||||||||||
Net income per share, diluted | $ | 0.06 | $ | 0.11 | $ | 0.24 | $ | 0.26 | |||||||
Shares used in computing net income per share, diluted | 42,290 | 42,125 | 42,146 | 41,863 |
LUMINEX CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended | SIx Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 2,629 | $ | 4,725 | $ | 10,082 | $ | 10,691 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 3,124 | 3,607 | 6,322 | 7,535 | |||||||||||
Stock-based compensation | 3,090 | 2,801 | 4,669 | 4,430 | |||||||||||
Deferred income tax expense | 5,154 | 1,842 | 6,031 | 2,520 | |||||||||||
Excess income tax expense from employee stock-based awards | 991 | — | 991 | — | |||||||||||
Loss (gain) on sale or disposal of assets | 212 | 178 | (681 | ) | 183 | ||||||||||
Non-cash restructuring charges | — | 424 | — | 1,196 | |||||||||||
Other | 50 | (140 | ) | (103 | ) | (332 | ) | ||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable, net | 2,140 | (478 | ) | 6,086 | 3,539 | ||||||||||
Inventories, net | 1,122 | (623 | ) | 4,050 | (1,522 | ) | |||||||||
Other assets | (2,717 | ) | (295 | ) | (2,393 | ) | 37 | ||||||||
Accounts payable | (2,932 | ) | 476 | (3,774 | ) | (2,105 | ) | ||||||||
Accrued liabilities | 8,077 | (2,081 | ) | 388 | (4,515 | ) | |||||||||
Deferred revenue | (383 | ) | (209 | ) | (176 | ) | 7 | ||||||||
Net cash provided by operating activities | 20,557 | 10,227 | 31,492 | 21,664 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Purchases of available-for-sale securities | — | — | — | (2,996 | ) | ||||||||||
Sales and maturities of available-for-sale securities | — | 1,516 | — | 4,513 | |||||||||||
Purchase of property and equipment | (3,670 | ) | (3,150 | ) | (12,568 | ) | (6,255 | ) | |||||||
Proceeds from sale of assets | — | 39 | 893 | 39 | |||||||||||
Acquired technology rights | (25 | ) | (64 | ) | (202 | ) | (64 | ) | |||||||
Net cash used in investing activities | (3,695 | ) | (1,659 | ) | (11,877 | ) | (4,763 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Payments on debt | — | (1,621 | ) | — | (1,621 | ) | |||||||||
Proceeds from employee stock plans and issuance of common stock | 308 | 2,378 | 713 | 3,480 | |||||||||||
Excess income tax expense from employee stock-based awards | (991 | ) | — | (991 | ) | — | |||||||||
Net cash (used in) provided by financing activities | (683 | ) | 757 | (278 | ) | 1,859 | |||||||||
Effect of foreign currency exchange rate on cash | (22 | ) | (1 | ) | 33 | 26 | |||||||||
Change in cash and cash equivalents | 16,157 | 9,324 | 19,370 | 18,786 | |||||||||||
Cash and cash equivalents, beginning of period | 94,907 | 77,386 | 91,694 | 67,924 | |||||||||||
Cash and cash equivalents, end of period | $ | 111,064 | $ | 86,710 | $ | 111,064 | $ | 86,710 | |||||||
LUMINEX CORPORATION | |||||||||||||||
NON-GAAP RECONCILIATION | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Income from operations | $ | 9,959 | $ | 4,771 | $ | 19,652 | $ | 12,956 | |||||||
Stock-based compensation | 3,090 | 2,801 | 4,669 | 4,430 | |||||||||||
Amortization of acquired intangible assets | 776 | 965 | 1,678 | 1,985 | |||||||||||
Costs associated with legal proceedings | 183 | 810 | 620 | 1,600 | |||||||||||
Severance costs | 157 | — | 194 | 45 | |||||||||||
Restructuring costs | — | 510 | — | 1,320 | |||||||||||
Adjusted income from operations | $ | 14,165 | $ | 9,857 | $ | 26,813 | $ | 22,336 | |||||||
Interest expense from long-term debt | — | — | — | (6 | ) | ||||||||||
Other income, net | 57 | (1 | ) | 951 | (20 | ) | |||||||||
Gain on sale of cost method equity investment | — | — | (892 | ) | — | ||||||||||
Income tax expense | (287 | ) | (45 | ) | (3,221 | ) | (2,239 | ) | |||||||
Income tax effect of above adjusting items | (2,343 | ) | (320 | ) | (2,473 | ) | (708 | ) | |||||||
Income tax benefit from intercompany debt cancellation | — | (994 | ) | — | (994 | ) | |||||||||
Adjusted net income | $ | 11,592 | $ | 8,497 | $ | 21,178 | $ | 18,369 | |||||||
Adjusted net income per share, basic | $ | 0.28 | $ | 0.20 | $ | 0.50 | $ | 0.44 | |||||||
Shares used in computing adjusted net income per share, basic | 42,093 | 41,560 | 41,984 | 41,384 | |||||||||||
Adjusted net income per share, diluted | $ | 0.27 | $ | 0.20 | $ | 0.50 | $ | 0.44 | |||||||
Shares used in computing adjusted net income per share, diluted | 42,290 | 42,125 | 42,146 | 41,863 |