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) |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
Emerging growth company | o |
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Exhibit No. | Description | |
Date: February 4, 2019 | LUMINEX CORPORATION | |
By: | /s/ Harriss T. Currie | |
Name: | Harriss T. Currie | |
Title: | Chief Financial Officer, Senior Vice President of Finance |
• | On December 31, 2018, the Company closed the acquisition of EMD Millipore Corporation’s flow cytometry portfolio for $69.9 million in cash, plus approximately $5.1 million in committed inventory purchases. |
• | Fourth quarter and full-year 2018 consolidated revenue were $81.1 million and $315.8 million, increases of 4% and 3%, respectively, compared to the fourth quarter and full-year 2017. Excluding sales to LabCorp, total revenue increased 22% and 9% for the fourth quarter and full-year, respectively. |
• | Assay revenues were $37.0 million and $156.7 million for the quarter and full-year ended December 31, 2018, a 12% decrease and 1% increase over assay revenue for the fourth quarter and full-year of 2018, respectively. Similarly, excluding sales to LabCorp, assay revenue increased 22% and 14% for the fourth quarter and full year 2018, respectively. |
• | Royalty revenue of approximately $49.3 million reflects approximately $532 million of royalty-bearing end user sales on our technology for 2018, a 6% increase over 2017. |
• | Placed 60 sample-to-answer molecular systems under contract during the fourth quarter of 2018. Active sample-to-answer customers are nearing 600. |
• | Sample-to-answer utilization per VERIGENE® customer grew approximately 10%, to over $109,000 from $100,000 in the prior year quarter; and utilization per ARIES® customer grew approximately 14%, to approximately $53,000 from $47,000 in the prior-year quarter. |
• | 268 multiplexing analyzers were shipped during the quarter; a combination of MAGPIX® systems, LX systems, and FLEXMAP 3D® systems. |
• | Fourth quarter GAAP net loss was $2.3 million, or a loss of $0.05 per diluted share, primarily driven by the departure of LabCorp Women’s Health and the closing of the transaction with Millipore/Sigma. Non-GAAP net income was $1.7 million, or earnings of $0.04 per diluted share (see Non-GAAP reconciliation). |
Three Months Ended | ||||||||||||||
December 31, | Variance | |||||||||||||
2018 | 2017 | ($) | (%) | |||||||||||
(unaudited) | ||||||||||||||
System sales | $ | 10,209 | $ | 10,342 | $ | (133 | ) | (1 | )% | |||||
Consumable sales | 15,678 | 10,005 | 5,673 | 57 | % | |||||||||
Royalty revenue | 13,507 | 11,329 | 2,178 | 19 | % | |||||||||
Assay revenue | 36,952 | 41,830 | (4,878 | ) | (12 | )% | ||||||||
Service revenue | 3,225 | 2,876 | 349 | 12 | % | |||||||||
Other revenue | 1,562 | 1,817 | (255 | ) | (14 | )% | ||||||||
$ | 81,133 | $ | 78,199 | $ | 2,934 | 4 | % | |||||||
Twelve Months Ended | ||||||||||||||
December 31, | Variance | |||||||||||||
2018 | 2017 | ($) | (%) | |||||||||||
(unaudited) | ||||||||||||||
System sales | $ | 39,986 | $ | 38,651 | $ | 1,335 | 3 | % | ||||||
Consumable sales | 50,144 | 49,319 | 825 | 2 | % | |||||||||
Royalty revenue | 49,394 | 44,704 | 4,690 | 10 | % | |||||||||
Assay revenue | 156,714 | 154,907 | 1,807 | 1 | % | |||||||||
Service revenue | 12,159 | 11,470 | 689 | 6 | % | |||||||||
Other revenue | 7,421 | 7,520 | (99 | ) | (1 | )% | ||||||||
$ | 315,818 | $ | 306,571 | $ | 9,247 | 3 | % |
LUMINEX CORPORATION | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands) | |||||||
December 31, | December 31, | ||||||
2018 | 2017 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 76,441 | $ | 127,112 | |||
Accounts receivable, net | 53,396 | 40,648 | |||||
Inventories, net | 63,250 | 49,478 | |||||
Prepaids and other | 9,657 | 7,403 | |||||
Total current assets | 202,744 | 224,641 | |||||
Property and equipment, net | 66,288 | 58,258 | |||||
Intangible assets, net | 105,148 | 75,985 | |||||
Deferred income taxes | 21,470 | 37,552 | |||||
Goodwill | 118,127 | 85,481 | |||||
Other | 11,398 | 8,599 | |||||
Total assets | 525,175 | 490,516 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 14,504 | $ | 14,537 | |||
Accrued liabilities | 26,772 | 25,990 | |||||
Deferred revenue | 10,099 | 4,721 | |||||
Total current liabilities | 51,375 | 45,248 | |||||
Deferred revenue | 1,079 | 1,498 | |||||
Other | 5,065 | 5,863 | |||||
Total liabilities | 57,519 | 52,609 | |||||
Stockholders' equity: | |||||||
Common stock | 44 | 43 | |||||
Additional paid-in capital | 365,349 | 350,834 | |||||
Accumulated other comprehensive loss | (1,127 | ) | (625 | ) | |||
Retained earnings | 103,390 | 87,655 | |||||
Total stockholders' equity | 467,656 | 437,907 | |||||
Total liabilities and stockholders' equity | $ | 525,175 | $ | 490,516 | |||
LUMINEX CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Revenue | $ | 81,133 | $ | 78,199 | $ | 315,818 | $ | 306,571 | |||||||
Cost of revenue | 32,792 | 27,819 | 120,327 | 107,525 | |||||||||||
Gross profit | 48,341 | 50,380 | 195,491 | 199,046 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 13,170 | 10,367 | 47,164 | 45,717 | |||||||||||
Selling, general and administrative | 32,036 | 28,717 | 111,816 | 107,322 | |||||||||||
Amortization of acquired intangible assets | 2,167 | 2,166 | 8,665 | 8,854 | |||||||||||
Total operating expenses | 47,373 | 41,250 | 167,645 | 161,893 | |||||||||||
Income from operations | 968 | 9,130 | 27,846 | 37,153 | |||||||||||
Other income, net | — | 2 | 465 | (4 | ) | ||||||||||
Income before income taxes | 968 | 9,132 | 28,311 | 37,149 | |||||||||||
Income tax expense | (3,263 | ) | (12,097 | ) | (9,803 | ) | (7,726 | ) | |||||||
Net income | $ | (2,295 | ) | $ | (2,965 | ) | $ | 18,508 | $ | 29,423 | |||||
Net income attributable to common stock holders | |||||||||||||||
Basic | $ | (2,257 | ) | $ | (2,915 | ) | $ | 18,196 | $ | 28,894 | |||||
Diluted | $ | (2,258 | ) | $ | (2,915 | ) | $ | 18,197 | $ | 28,894 | |||||
Net income per share attributable to common stock holders | |||||||||||||||
Basic | $ | (0.05 | ) | $ | (0.07 | ) | $ | 0.42 | $ | 0.67 | |||||
Diluted | $ | (0.05 | ) | $ | (0.07 | ) | $ | 0.41 | $ | 0.67 | |||||
Weighted-average shares used in computing net income per share | |||||||||||||||
Basic | 43,867 | 43,357 | 43,727 | 43,173 | |||||||||||
Diluted | 44,563 | 43,524 | 44,291 | 43,300 | |||||||||||
Dividends declared per share | $ | 0.06 | $ | 0.06 | $ | 0.24 | $ | 0.24 |
LUMINEX CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | (2,295 | ) | $ | (2,965 | ) | $ | 18,508 | $ | 29,423 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 5,937 | 5,762 | 23,674 | 22,641 | |||||||||||
Stock-based compensation | 3,766 | 3,901 | 12,226 | 12,478 | |||||||||||
Deferred income tax expense | (491 | ) | 9,495 | 8,159 | 6,383 | ||||||||||
Loss on sale or disposal of assets | 287 | 545 | 730 | 964 | |||||||||||
Other | (83 | ) | 252 | (1,369 | ) | 1,531 | |||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable, net | (11,192 | ) | (4,213 | ) | (1,569 | ) | (8,265 | ) | |||||||
Inventories, net | (1,243 | ) | (3,351 | ) | (6,827 | ) | (8,668 | ) | |||||||
Other assets | 1,424 | 2,678 | (3,319 | ) | (83 | ) | |||||||||
Accounts payable | 1,712 | 6,332 | 4 | 1,798 | |||||||||||
Accrued liabilities | 6,543 | 5,151 | 103 | 14 | |||||||||||
Deferred revenue | (74 | ) | (516 | ) | 579 | (785 | ) | ||||||||
Net cash provided by operating activities | 4,291 | 23,071 | 50,899 | 57,431 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Purchase of property and equipment | (7,028 | ) | (4,252 | ) | (21,292 | ) | (14,635 | ) | |||||||
Proceeds from sale of assets | 2 | 61 | 2 | 62 | |||||||||||
Business acquisition consideration, net of cash acquired | (65,381 | ) | — | (65,381 | ) | — | |||||||||
Issuance of note receivable | — | (700 | ) | (1,000 | ) | (1,400 | ) | ||||||||
Purchase of investment | — | — | (1,782 | ) | (1,000 | ) | |||||||||
Acquired technology rights | — | (80 | ) | (4,000 | ) | (140 | ) | ||||||||
Net cash used in investing activities | (72,407 | ) | (4,971 | ) | (93,453 | ) | (17,113 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from employee stock plans and issuance of common stock | 588 | 1,072 | 4,570 | 4,305 | |||||||||||
Shares surrendered for tax withholding | (278 | ) | (226 | ) | (2,312 | ) | (2,350 | ) | |||||||
Dividends | (2,676 | ) | (2,648 | ) | (10,654 | ) | (7,930 | ) | |||||||
Net cash used in financing activities | (2,366 | ) | (1,802 | ) | (8,396 | ) | (5,975 | ) | |||||||
Effect of foreign currency exchange rate on cash | 29 | (97 | ) | 279 | (683 | ) | |||||||||
Change in cash and cash equivalents | (70,453 | ) | 16,201 | (50,671 | ) | 33,660 | |||||||||
Cash and cash equivalents, beginning of period | 146,894 | 110,911 | 127,112 | 93,452 | |||||||||||
Cash and cash equivalents, end of period | $ | 76,441 | $ | 127,112 | $ | 76,441 | $ | 127,112 |
LUMINEX CORPORATION | |||||||||||||||
NON-GAAP RECONCILIATION | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Reported Net Income | $ | (2,295 | ) | $ | (2,965 | ) | $ | 18,508 | $ | 29,423 | |||||
Acquisition related costs | 2,499 | — | 2,732 | — | |||||||||||
Severance & costs associated with legal proceedings | 221 | 1,265 | 522 | 2,270 | |||||||||||
Income tax effect of above adjusting items | (526 | ) | (208 | ) | (737 | ) | (458 | ) | |||||||
Income tax effect from discrete tax items | 1,796 | 10,597 | 412 | (1,826 | ) | ||||||||||
Adjusted Net Income | $ | 1,695 | $ | 8,689 | $ | 21,437 | $ | 29,409 | |||||||
Adjusted net income per share, basic | $ | 0.04 | $ | 0.20 | $ | 0.49 | $ | 0.68 | |||||||
Shares used in computing adjusted net income per share, basic | 43,867 | 43,357 | 43,727 | 43,173 | |||||||||||
Adjusted net income per share, diluted | $ | 0.04 | $ | 0.20 | $ | 0.48 | $ | 0.68 | |||||||
Shares used in computing adjusted net income per share, diluted | 44,563 | 43,524 | 44,291 | 43,300 |