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 February 1, 2016. |
Date: February 1, 2016 | 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 February 1, 2016. |
• | Consolidated fourth quarter revenue of $60.4 million, a 4 percent increase compared to the fourth quarter of 2014; full-year 2015 revenue was $237.7 million, a 5 percent increase over 2014. |
• | Fourth quarter assay revenue of $26.9 million, a 12 percent increase over the fourth quarter of 2014; full-year 2015 assay revenue of $101.2 million, a 15 percent increase over 2014. |
• | Fourth quarter system revenue of $8.5 million, a 24 percent increase over the fourth quarter of 2014; full-year 2015 system revenue of $30.7 million, a 5 percent increase over 2014. |
• | GAAP net income for the fourth quarter and full-year of 2015 was $20.4 million and $36.9 million, or $0.47 and $0.86 per diluted share, respectively. Non-GAAP net income for the fourth quarter and full-year 2015 was $24.1 million and $54.5 million, or $0.56 and $1.28 per diluted share, respectively (see Non-GAAP reconciliation). |
• | Expanded full-year 2015 operating margins to 16% from 12% in 2014 as a result of both increased revenues and significant expense control. |
• | Cash and short and long-term investments at quarter’s end totaled approximately $148 million, an increase of approximately $40 million compared with year-end 2014. |
• | In December, Luminex announced the Company had received FDA Clearance for NxTAG® Respiratory Pathogen Panel. |
Three Months Ended | |||||||||||||
December 31, | Variance | ||||||||||||
2015 | 2014 | ($) | (%) | ||||||||||
(unaudited) | |||||||||||||
System sales | $ | 8,547 | $ | 6,872 | $ | 1,675 | 24% | ||||||
Consumable sales | 10,568 | 10,779 | (211 | ) | -2% | ||||||||
Royalty revenue | 9,489 | 10,194 | (705 | ) | -7% | ||||||||
Assay revenue | 26,893 | 24,051 | 2,842 | 12% | |||||||||
All other revenue | 4,952 | 6,210 | (1,258 | ) | -20% | ||||||||
$ | 60,449 | $ | 58,106 | $ | 2,343 | 4% | |||||||
Twelve Months Ended | |||||||||||||
December 31, | Variance | ||||||||||||
2015 | 2014 | ($) | (%) | ||||||||||
(unaudited) | |||||||||||||
System sales | $ | 30,676 | $ | 29,200 | $ | 1,476 | 5% | ||||||
Consumable sales | 43,282 | 48,300 | (5,018 | ) | -10% | ||||||||
Royalty revenue | 41,513 | 39,409 | 2,104 | 5% | |||||||||
Assay revenue | 101,216 | 87,653 | 13,563 | 15% | |||||||||
All other revenue | 21,021 | 22,421 | (1,400 | ) | -6% | ||||||||
$ | 237,708 | $ | 226,983 | $ | 10,725 | 5% | |||||||
• | Infectious disease assay sales were approximately 69 percent of total assay sales for the fourth quarter and genetic testing assays were 31 percent. |
• | Royalty revenues reflect total royalty-bearing end-user sales for the quarter of $9.5 million. |
• | Consolidated gross profit margin was 72 percent for the fourth quarter, and 71 percent for the full year 2015. |
• | 263 multiplexing analyzers were shipped during the quarter, which included 78 MAGPIX® systems, 137 LX systems, and 48 FLEXMAP 3D® systems. |
• | Days sales outstanding (DSO) was 44 days at quarter-end. |
• | The Company expects fiscal 2016 revenue to be between $245 million and $255 million. |
• | The company anticipates first quarter 2016 revenue to be between $60 million and $62 million. |
LUMINEX CORPORATION | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands) | |||||||
December 31, | December 31, | ||||||
2015 | 2014 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 128,546 | $ | 91,694 | |||
Short-term investments | 11,988 | — | |||||
Accounts receivable, net | 28,853 | 28,272 | |||||
Inventories, net | 31,252 | 36,616 | |||||
Deferred income taxes | — | 12,203 | |||||
Prepaids and other | 8,887 | 8,235 | |||||
Total current assets | 209,526 | 177,020 | |||||
Property and equipment, net | 47,796 | 39,945 | |||||
Intangible assets, net | 52,482 | 56,382 | |||||
Deferred income taxes | 31,821 | 15,400 | |||||
Long-term investments | 7,459 | 15,975 | |||||
Goodwill | 49,619 | 49,619 | |||||
Other | 3,853 | 3,185 | |||||
Total assets | 402,556 | 357,526 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 7,868 | $ | 11,841 | |||
Accrued liabilities | 15,152 | 14,118 | |||||
Deferred revenue | 4,212 | 4,407 | |||||
Total current liabilities | 27,232 | 30,366 | |||||
Deferred revenue | 2,064 | 2,297 | |||||
Other | 4,724 | 4,869 | |||||
Total liabilities | 34,020 | 37,532 | |||||
Stockholders' equity: | |||||||
Common stock | 42 | 42 | |||||
Additional paid-in capital | 321,657 | 309,424 | |||||
Accumulated other comprehensive loss | (1,296 | ) | (744 | ) | |||
Retained earnings | 48,133 | 11,272 | |||||
Total stockholders' equity | 368,536 | 319,994 | |||||
Total liabilities and stockholders' equity | $ | 402,556 | $ | 357,526 | |||
LUMINEX CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Revenue | $ | 60,449 | $ | 58,106 | $ | 237,708 | $ | 226,983 | |||||||
Cost of revenue | 17,043 | 15,365 | 69,001 | 67,131 | |||||||||||
Gross profit | 43,406 | 42,741 | 168,707 | 159,852 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 10,942 | 10,416 | 42,690 | 43,135 | |||||||||||
Selling, general and administrative | 23,020 | 20,947 | 84,760 | 82,785 | |||||||||||
Amortization of acquired intangible assets | 1,445 | 964 | 3,900 | 3,913 | |||||||||||
Restructuring costs | — | 229 | — | 1,882 | |||||||||||
Total operating expenses | 35,407 | 32,556 | 131,350 | 131,715 | |||||||||||
Income from operations | 7,999 | 10,185 | 37,357 | 28,137 | |||||||||||
Interest expense from long-term debt | — | — | — | (6 | ) | ||||||||||
Other income, net | 23 | (11 | ) | 987 | (46 | ) | |||||||||
Settlement of litigation | 2,000 | — | (5,300 | ) | — | ||||||||||
Income before income taxes | 10,022 | 10,174 | 33,044 | 28,085 | |||||||||||
Income tax expense | 10,355 | 12,628 | 3,817 | 10,958 | |||||||||||
Net income | $ | 20,377 | $ | 22,802 | $ | 36,861 | $ | 39,043 | |||||||
Net income per share, basic | $ | 0.48 | $ | 0.55 | $ | 0.88 | $ | 0.94 | |||||||
Shares used in computing net income per share, basic | 42,241 | 41,744 | 42,091 | 41,558 | |||||||||||
Net income per share, diluted | $ | 0.47 | $ | 0.54 | $ | 0.86 | $ | 0.93 | |||||||
Shares used in computing net income per share, diluted | 42,923 | 42,401 | 42,637 | 42,156 |
LUMINEX CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 20,377 | $ | 22,802 | $ | 36,861 | $ | 39,043 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 4,011 | 3,270 | 13,744 | 14,205 | |||||||||||
Stock-based compensation | 3,087 | 2,496 | 10,855 | 9,548 | |||||||||||
Deferred income tax benefit | (11,831 | ) | (7,501 | ) | (5,624 | ) | (8,549 | ) | |||||||
Excess income tax (benefit) expense from employee stock-based awards | (1,015 | ) | 1,028 | (10 | ) | (287 | ) | ||||||||
Loss (gain) on sale or disposal of assets | 1,128 | (50 | ) | 385 | 181 | ||||||||||
Non-cash restructuring charges | — | 448 | — | 2,836 | |||||||||||
Other | (124 | ) | 13 | (252 | ) | (347 | ) | ||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable, net | (2,695 | ) | (1,778 | ) | (594 | ) | 1,964 | ||||||||
Inventories, net | (1,938 | ) | (3,581 | ) | 5,476 | (7,046 | ) | ||||||||
Other assets | 661 | (2,096 | ) | (968 | ) | (2,888 | ) | ||||||||
Accounts payable | (1,407 | ) | 1,719 | (3,943 | ) | 841 | |||||||||
Accrued liabilities | 3,354 | 157 | 276 | 564 | |||||||||||
Deferred revenue | (215 | ) | (867 | ) | (427 | ) | (814 | ) | |||||||
Net cash provided by operating activities | 13,393 | 16,060 | 55,779 | 49,251 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Purchases of available-for-sale securities | (7,488 | ) | (8,003 | ) | (7,488 | ) | (18,999 | ) | |||||||
Sales and maturities of available-for-sale securities | 4,000 | — | 4,000 | 7,509 | |||||||||||
Purchase of property and equipment | (3,407 | ) | (5,283 | ) | (18,706 | ) | (17,078 | ) | |||||||
Proceeds from sale of assets | — | 54 | 893 | 98 | |||||||||||
Acquired technology rights | — | — | (852 | ) | (64 | ) | |||||||||
Net cash used in investing activities | (6,895 | ) | (13,232 | ) | (22,153 | ) | (28,534 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Payments on debt | — | — | — | (1,621 | ) | ||||||||||
Proceeds from employee stock plans and issuance of common stock | 1,428 | 939 | 3,118 | 4,746 | |||||||||||
Excess income tax (benefit) expense from employee stock-based awards | 1,015 | (1,028 | ) | 10 | 287 | ||||||||||
Net cash provided by (used in) financing activities | 2,443 | (89 | ) | 3,128 | 3,412 | ||||||||||
Effect of foreign currency exchange rate on cash | 52 | (168 | ) | 98 | (359 | ) | |||||||||
Change in cash and cash equivalents | 8,993 | 2,571 | 36,852 | 23,770 | |||||||||||
Cash and cash equivalents, beginning of period | 119,553 | 89,123 | 91,694 | 67,924 | |||||||||||
Cash and cash equivalents, end of period | $ | 128,546 | $ | 91,694 | $ | 128,546 | $ | 91,694 |
LUMINEX CORPORATION | |||||||||||||||
NON-GAAP RECONCILIATION | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Income from operations | $ | 7,999 | $ | 10,185 | $ | 37,357 | $ | 28,137 | |||||||
Stock-based compensation | 3,087 | 2,496 | 10,855 | 9,548 | |||||||||||
Amortization of acquired intangible assets | 1,445 | 964 | 3,900 | 3,913 | |||||||||||
Costs associated with legal proceedings | (14 | ) | 578 | 616 | 3,206 | ||||||||||
Severance costs | 107 | 243 | 391 | 1,230 | |||||||||||
Restructuring costs | — | 448 | — | 3,100 | |||||||||||
Adjusted income from operations | $ | 12,624 | $ | 14,914 | $ | 53,119 | $ | 49,134 | |||||||
Interest expense from long-term debt | — | — | — | (6 | ) | ||||||||||
Other income, net | 23 | (11 | ) | 987 | (46 | ) | |||||||||
Gain on sale of cost method equity investment | — | — | (892 | ) | — | ||||||||||
Income tax expense | 10,355 | 12,628 | 3,817 | 10,958 | |||||||||||
Income tax effect of above adjusting items | 1,049 | (1,507 | ) | (2,539 | ) | (3,156 | ) | ||||||||
Income tax benefit from intercompany debt cancellation | — | (18,046 | ) | — | (19,040 | ) | |||||||||
Adjusted net income | $ | 24,051 | $ | 7,978 | $ | 54,492 | $ | 37,844 | |||||||
Adjusted net income per share, basic | $ | 0.57 | $ | 0.19 | $ | 1.29 | $ | 0.91 | |||||||
Shares used in computing adjusted net income per share, basic | 42,241 | 41,744 | 42,091 | 41,558 | |||||||||||
Adjusted net income per share, diluted | $ | 0.56 | $ | 0.19 | $ | 1.28 | $ | 0.9 | |||||||
Shares used in computing adjusted net income per share, diluted | 42,923 | 42,401 | 42,637 | 42,156 |