EX-99.1 2 stjude071725_ex99-1.htm PRESS RELEASE DATED APRIL 19, 2007 Exhibit 99.1 to St. Jude Medical, Inc. Form 8-K dated April 19, 2007

Exhibit 99.1

 

St. Jude Medical, Inc.
One Lillehei Plaza
St. Paul, Minnesota 55117
(651) 483.2000
www.sjm.com

Contacts:

Angela Craig

Kathleen Janasz

 

Investor Relations

Media Relations

 

(651) 481-7789

(651) 415-7042


 

St. Jude Medical Reports First Quarter Results

 

St. Paul, Minn. – April 19, 2007 – St. Jude Medical, Inc. (NYSE: STJ) today reported sales and net earnings for the first quarter ended March 31, 2007.

 

First Quarter Results

 

The company reported net sales of $887 million in the first quarter of 2007, an increase of 13% compared to the $784 million in the first quarter of 2006. Favorable foreign currency translation comparisons increased first quarter sales by approximately $18 million.

 

Reported net earnings for the first quarter of 2007 were $146 million, or $0.41 per diluted share. This compares to reported net earnings for the first quarter of 2006 of $137 million, or $0.36 per diluted share.

 

Commenting on the first quarter results, St. Jude Medical Chairman, President and Chief Executive Officer Daniel J. Starks said, “Our first quarter results reflect solid contributions from each of our major growth programs. The investments we made in new people, new products and new programs in 2006 already are beginning to favorably impact our results. St. Jude Medical is raising its guidance for consolidated earnings per share for the full year 2007 to the range of $1.72 to $1.77.”

 

Cardiac Rhythm Management (CRM)

 

Total Cardiac Rhythm Management sales, which include implantable cardioverter defibrillator (ICD) and pacemaker products, were $549 million for the first quarter of 2007, a 14% increase compared to the first quarter of 2006.

 

Of that total, ICD product sales were $302 million in the first quarter, a 15% increase over the comparable quarter of 2006.

 

First quarter pacemaker sales were $247 million, an increase of 12% from the comparable quarter of 2006.




 

Atrial Fibrillation (AF)

 

 

AF product sales for the first quarter totaled $93 million, a 26% increase over the first quarter of 2006.

 

Neuromodulation

 

St. Jude Medical sales of neuromodulation products were $48 million in the first quarter of 2007, up 14% from the comparable quarter of 2006.

 

Cardiovascular

 

Total cardiovascular sales, which primarily include vascular closure and heart valve products, were $197 million for the first quarter of 2007, a 6% increase over the first quarter of 2006.

 

Sales of vascular closure products in the first quarter of 2007 were $90 million of total cardiovascular sales, a 7% increase over the first quarter of 2006.

 

Total heart valve product sales for the first quarter of 2007 were $72 million, a 4% increase over the first quarter of 2006.

 

Second Quarter and Full Year 2007 Revenue and Earnings Guidance

 

During a conference call today, St. Jude Medical will update its revenue expectations for several product categories and provide consolidated earnings guidance for the second quarter and full-year 2007.

 

The company expects its consolidated earnings for the second quarter of 2007 to be in the range of $0.42 to $0.44 per diluted share and is raising its estimates for consolidated earnings for the full-year 2007 to the range of $1.72 to $1.77.

 

Conference Call/Webcast

 

St. Jude Medical’s first quarter earnings call can be heard live today at 7:30 a.m. CT (also archived for 90 days) on the following website:

 

http://phx.corporate-ir.net/phoenix.zhtml?p=eventDetails&c=73836&eventID=1492507.

 

About St. Jude Medical

 

St. Jude Medical is dedicated to making life better for cardiac, neurological and chronic pain patients worldwide through excellence in medical device technology and services. The Company has five major focus areas that include: cardiac rhythm management, atrial fibrillation, cardiac surgery, cardiology and neuromodulation. Headquartered in St. Paul, Minn., St. Jude Medical employs more than 11,000 people worldwide. For more information, please visit www.sjm.com.

 




Forward-Looking Statements

 

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements include the expectations, plans and prospects for the Company, including potential clinical successes, anticipated regulatory approvals and future product launches, and projected revenues, margins, earnings, and market shares. The statements made by the Company are based upon management’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include market conditions and other factors beyond the Company’s control and the risk factors and other cautionary statements described in the Company’s filings with the SEC, including those described in the Company’s Annual Report on Form 10-K filed on February 28, 2007 (see Item 1A on pages 13-20, and page 20 of Exhibit 13 to the Company’s Form 10-K). The Company does not intend to update these statements and undertakes no duty to any person to provide any such update under any circumstance.

 














St. Jude Medical, Inc.

Condensed Consolidated Statements of Earnings

(in thousands, except per share amounts)

(Unaudited)

 

 

 

 

Three Months Ended

 

 

 

March 31, 2007

 

April 1, 2006

 

Net sales

 

$

886,978

 

$

784,416

 

Cost of sales

 

 

238,977

 

 

208,447

 

Gross profit

 

 

648,001

 

 

575,969

 

 

 

 

 

 

 

 

 

Selling, general & administrative

 

 

328,340

 

 

284,208

 

Research & development

 

 

115,958

 

 

105,258

 

 

 

 

 

 

 

 

 

Operating profit

 

 

203,703

 

 

186,503

 

Other income (expense)

 

 

(5,168

)

 

(704

)

Earnings before taxes

 

 

198,535

 

 

185,799

 

Income tax expense

 

 

52,810

 

 

48,730

 

Net earnings

 

$

145,725

 

$

137,069

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.41

 

$

0.36

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding-diluted

 

 

359,276

 

 

384,997

 

 

 

 

Condensed Consolidated Balance Sheets

(in thousands)

(Unaudited)

 

 

 

 

March 31, 2007

 

December 30, 2006

 

Cash & cash equivalents

 

$

111,435

 

$

79,888

 

Accounts receivable, net

 

 

905,093

 

 

882,098

 

Inventories

 

 

477,535

 

 

452,812

 

Other current assets

 

 

273,507

 

 

275,367

 

Property, plant & equipment, net

 

 

646,417

 

 

617,851

 

Goodwill

 

 

1,650,776

 

 

1,649,581

 

Other intangible assets, net

 

 

554,860

 

 

560,276

 

Other assets

 

 

286,341

 

 

271,921

 

Total assets

 

$

4,905,964

 

$

4,789,794

 

 

 

 

 

 

 

 

 

Short-term debt

 

$

350,000

 

$

0

 

Other current liabilities

 

 

535,903

 

 

676,207

 

Long-term debt

 

 

1,112,175

 

 

859,376

 

Deferred income taxes, net

 

 

162,033

 

 

163,336

 

Long-term other liabilities

 

 

218,488

 

 

121,888

 

Total equity

 

 

2,527,365

 

 

2,968,987

 

Total liabilities & equity

 

$

4,905,964

 

$

4,789,794