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 7, 2017. |
Date: August 7, 2017 | 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 7, 2017. |
• | Consolidated revenue of $76.5 million, an increase of 19% compared to the second quarter 2016. |
• | Total automated sample to answer molecular product revenue of $10.7 million; pro-forma growth of 44% compared to $7.4 million in the second quarter of 2016. |
• | 270 multiplexing analyzers were shipped during the quarter; included in this figure is a combination of MAGPIX® systems, LX systems, FLEXMAP 3D® systems. |
• | Corporate gross margin decreased to 65% from 68% in the first quarter, 2017, primarily due to an anticipated shift in overall product mix. |
• | GAAP net income of $5.5 million, or $0.13 per diluted share. Non-GAAP net income of $11.2 million, or $0.26 per diluted share (see Non-GAAP reconciliation). |
• | Received FDA clearance of the ARIES® Bordetella assay and CE-IVD mark for the ARIES® Norovirus assay. In July, Luminex received FDA clearance of and CE-IVD mark for the ARIES® C.Difficile assay. |
• | Gained reimbursement approval in Japan for the VERIGENE® gram positive and gram negative blood culture assays. |
Three Months Ended | ||||||||||||||
June 30, | Variance | |||||||||||||
2017 | 2016 | ($) | (%) | |||||||||||
(unaudited) | ||||||||||||||
System sales | $ | 9,905 | $ | 8,993 | $ | 912 | 10 | % | ||||||
Consumable sales | 13,310 | 13,334 | (24 | ) | — | % | ||||||||
Royalty revenue | 10,813 | 11,352 | (539 | ) | (5 | )% | ||||||||
Assay revenue | 37,753 | 25,885 | 11,868 | 46 | % | |||||||||
Service revenue | 2,795 | 2,547 | 248 | 10 | % | |||||||||
Other revenue | 1,881 | 2,055 | (174 | ) | (8 | )% | ||||||||
$ | 76,457 | $ | 64,166 | $ | 12,291 | 19 | % |
LUMINEX CORPORATION | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands) | |||||||
June 30, | December 31, | ||||||
2017 | 2016 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 103,705 | $ | 93,452 | |||
Accounts receivable, net | 33,133 | 32,365 | |||||
Inventories, net | 47,095 | 40,775 | |||||
Prepaids and other | 8,208 | 7,145 | |||||
Total current assets | 192,141 | 173,737 | |||||
Property and equipment, net | 57,890 | 57,375 | |||||
Intangible assets, net | 80,318 | 84,841 | |||||
Deferred income taxes | 35,511 | 42,497 | |||||
Goodwill | 85,481 | 85,481 | |||||
Other | 7,611 | 6,785 | |||||
Total assets | $ | 458,952 | $ | 450,716 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 10,456 | $ | 12,276 | |||
Accrued liabilities | 18,327 | 22,804 | |||||
Deferred revenue | 4,933 | 5,120 | |||||
Total current liabilities | 33,716 | 40,200 | |||||
Deferred revenue | 1,720 | 1,875 | |||||
Other | 4,929 | 4,962 | |||||
Total liabilities | 40,365 | 47,037 | |||||
Stockholders' equity: | |||||||
Common stock | 43 | 43 | |||||
Additional paid-in capital | 341,290 | 336,430 | |||||
Accumulated other comprehensive loss | (1,090 | ) | (1,692 | ) | |||
Retained earnings | 78,344 | 68,898 | |||||
Total stockholders' equity | 418,587 | 403,679 | |||||
Total liabilities and stockholders' equity | $ | 458,952 | $ | 450,716 |
LUMINEX CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Revenue | $ | 76,457 | $ | 64,166 | $ | 154,236 | $ | 127,147 | |||||||
Cost of revenue | 26,396 | 19,245 | 51,389 | 37,420 | |||||||||||
Gross profit | 50,061 | 44,921 | 102,847 | 89,727 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 12,260 | 11,543 | 24,680 | 22,562 | |||||||||||
Selling, general and administrative | 28,153 | 24,190 | 52,150 | 44,549 | |||||||||||
Amortization of acquired intangible assets | 2,166 | 1,688 | 4,523 | 3,315 | |||||||||||
Total operating expenses | 42,579 | 37,421 | 81,353 | 70,426 | |||||||||||
Income from operations | 7,482 | 7,500 | 21,494 | 19,301 | |||||||||||
Other income, net | 1 | (1,446 | ) | (5 | ) | (1,425 | ) | ||||||||
Income before income taxes | 7,483 | 6,054 | 21,489 | 17,876 | |||||||||||
Income tax expense | (1,939 | ) | (401 | ) | (6,714 | ) | (3,453 | ) | |||||||
Net income | $ | 5,544 | $ | 5,653 | $ | 14,775 | $ | 14,423 | |||||||
Net income attributable to common stock holders | |||||||||||||||
Basic | $ | 5,441 | $ | 5,653 | $ | 14,499 | $ | 14,423 | |||||||
Diluted | $ | 5,441 | $ | 5,653 | $ | 14,499 | $ | 14,423 | |||||||
Net income per share attributable to common stock holders | |||||||||||||||
Basic | $ | 0.13 | $ | 0.13 | $ | 0.34 | $ | 0.34 | |||||||
Diluted | $ | 0.13 | $ | 0.13 | $ | 0.34 | $ | 0.34 | |||||||
Weighted-average shares used in computing net income per share | |||||||||||||||
Basic | 43,160 | 42,534 | 43,030 | 42,440 | |||||||||||
Diluted | 43,259 | 42,575 | 43,128 | 42,440 | |||||||||||
Dividends declared per share | $ | 0.06 | — | $ | 0.12 | — |
LUMINEX CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 5,544 | $ | 5,653 | $ | 14,775 | $ | 14,423 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 5,651 | 4,276 | 11,270 | 8,488 | |||||||||||
Stock-based compensation | 4,026 | 3,475 | 4,748 | 4,655 | |||||||||||
Deferred income tax expense | 4,332 | (395 | ) | 7,267 | 2,931 | ||||||||||
Loss (gain) on sale or disposal of assets | — | 4 | — | 41 | |||||||||||
Other | 478 | (17 | ) | 922 | (71 | ) | |||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable, net | 3,911 | 7,221 | (758 | ) | 6,673 | ||||||||||
Inventories, net | (3,417 | ) | (4,142 | ) | (6,304 | ) | (4,040 | ) | |||||||
Other assets | (1,892 | ) | 508 | (1,197 | ) | 672 | |||||||||
Accounts payable | 1,337 | 3,737 | (2,369 | ) | 2,724 | ||||||||||
Accrued liabilities | 2,661 | 1,098 | (7,411 | ) | (6,174 | ) | |||||||||
Deferred revenue | (547 | ) | (209 | ) | (350 | ) | 621 | ||||||||
Net cash provided by operating activities | 22,084 | 21,209 | 20,593 | 30,943 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Sales and maturities of available-for-sale assets | — | 19,491 | — | 19,491 | |||||||||||
Purchase of property and equipment | (2,970 | ) | (2,871 | ) | (6,403 | ) | (5,719 | ) | |||||||
Proceeds from sale of assets | — | 3 | — | 3 | |||||||||||
Business acquisition consideration, net of cash acquired | — | (66,902 | ) | — | (66,902 | ) | |||||||||
Purchase of cost method investment | (500 | ) | — | (1,000 | ) | — | |||||||||
Acquired technology rights | — | — | — | (200 | ) | ||||||||||
Net cash used in investing activities | (3,470 | ) | (50,279 | ) | (7,403 | ) | (53,327 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Payments on debt | — | (25,000 | ) | — | (25,000 | ) | |||||||||
Proceeds from employee stock plans and issuance of common stock | 1,495 | 1,406 | 2,229 | 1,762 | |||||||||||
Shares surrendered for tax withholding | (40 | ) | (35 | ) | (2,096 | ) | (1,484 | ) | |||||||
Dividends | (2,636 | ) | — | (2,636 | ) | — | |||||||||
Net cash provided by (used in) financing activities | (1,181 | ) | (23,629 | ) | (2,503 | ) | (24,722 | ) | |||||||
Effect of foreign currency exchange rate on cash | (194 | ) | 115 | (434 | ) | 278 | |||||||||
Change in cash and cash equivalents | 17,239 | (52,584 | ) | 10,253 | (46,828 | ) | |||||||||
Cash and cash equivalents, beginning of period | 86,466 | 134,302 | 93,452 | 128,546 | |||||||||||
Cash and cash equivalents, end of period | $ | 103,705 | $ | 81,718 | $ | 103,705 | $ | 81,718 |
LUMINEX CORPORATION | |||||||||||||||
NON-GAAP RECONCILIATION | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Income from operations | $ | 7,482 | $ | 7,500 | $ | 21,494 | $ | 19,301 | |||||||
Stock-based compensation | 4,026 | 3,475 | 4,748 | 4,655 | |||||||||||
Amortization of acquired intangible assets | 2,166 | 1,688 | 4,523 | 3,315 | |||||||||||
Acquisition costs | — | 2,008 | — | 2,008 | |||||||||||
Severance costs | 559 | 160 | 658 | 814 | |||||||||||
Adjusted income from operations | $ | 14,233 | $ | 14,831 | $ | 31,423 | $ | 30,093 | |||||||
Other income, net | 1 | (1,446 | ) | (5 | ) | (1,425 | ) | ||||||||
Acquisition costs | — | 1,500 | — | 1,500 | |||||||||||
Income tax expense | (1,939 | ) | (401 | ) | (6,714 | ) | (3,453 | ) | |||||||
Income tax effect of above adjusting items | (1,112 | ) | (363 | ) | (1,292 | ) | (416 | ) | |||||||
Adjusted net income | $ | 11,183 | $ | 14,121 | $ | 23,412 | $ | 26,299 | |||||||
Adjusted net income per share, basic | $ | 0.26 | $ | 0.33 | $ | 0.54 | $ | 0.62 | |||||||
Shares used in computing adjusted net income per share, basic | 43,160 | 42,534 | 43,030 | 42,440 | |||||||||||
Adjusted net income per share, diluted | $ | 0.26 | $ | 0.33 | $ | 0.54 | $ | 0.62 | |||||||
Shares used in computing adjusted net income per share, diluted | 43,259 | 42,575 | 43,128 | 42,440 |