Massachusetts | 001-14041 | 04-2882273 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
400 Wood Road, Braintree, MA | 02184 | |
(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 Number | Description | |
Press Release of Haemonetics Corporation dated February 5, 2019 announcing financial results for the third quarter ended December 29, 2018. |
HAEMONETICS CORPORATION | ||
Date: February 5, 2019 | By: | /s/ Christopher Simon |
Name: | Christopher Simon | |
Title: | President and Chief Executive Officer |
Exhibit 99.1 | |||
Earnings Release FY19 Q3 | Investor Contacts | Media Contact | |
Gerry Gould, VP-Investor Relations | Carla Burigatto, VP-Communications | ||
(781) 356-9402 | (781) 348-7263 | ||
gerry.gould@haemonetics.com | carla.burigatto@haemonetics.com | ||
Olga Vlasova, Sr. Mgr.-Investor Relations | |||
(781) 356-9763 | |||
olga.vlasova@haemonetics.com | |||
3rd Quarter 2019 | YTD 2019 | |
Revenue, increase | $247 million, +5.7% | $718 million, +7.1% |
Revenue increase, constant currency | +5.9% | +6.7% |
Net income per diluted share | $0.35 | $0.64 |
Adjusted net income per diluted share | $0.63 | $1.78 |
Cash flow from operating activities | $58 million | $139 million |
Free cash flow before restructuring & turnaround | $37 million | $58 million |
3rd Quarter 2019 | YTD 2019 | |||
Plasma | $131.8 | +16.6% | $373.1 | +15.0% |
Hospital | $ 48.4 | +3.6% | $145.3 | +8.1% |
Blood Center | $ 67.2 | ( 9.5%) | $199.9 | ( 5.5%) |
3rd Quarter 2019 | YTD 2019 | |
Plasma | +16.0% | +14.5% |
Hospital | + 4.5% | + 7.3% |
Blood Center | ( 9.2%) | ( 5.8%) |
FY19 - Guidance | |
As Of Feb. 5, 2019 | |
Plasma Revenue | 14-16% |
Hospital Revenue | 6-9% |
Blood Center Revenue | (3-6%) |
Total Revenue | 6-8% |
Operating Margin (GAAP) | 7-9% of Revenue |
Adjusted Operating Margin | 16-18% of Revenue |
Earnings per Diluted Share (EPS) (GAAP) | $0.85 - $0.95 |
Adjusted Earnings per Diluted Share (Adj'd EPS) | $2.25 - $2.35 |
Cash Flow From Operating Activities (GAAP) | $160 - $185 |
Free Cash Flow, Before Restructuring & Turnaround Expenses | $65 - $75 |
Haemonetics Corporation Financial Summary | ||||||||||
Condensed Consolidated Statements of Income (Loss) for the Third Quarter of FY19 and FY18 | ||||||||||
(Data in thousands, except per share data) | ||||||||||
12/29/2018 | 12/30/2017 | % Inc/(Dec) | ||||||||
vs Prior Year | ||||||||||
(unaudited) | ||||||||||
Net revenues | $ | 247,356 | $ | 234,043 | 5.7% | |||||
Gross profit | 111,175 | 111,295 | (0.1)% | |||||||
R&D | 8,978 | 12,427 | (27.8)% | |||||||
S,G&A | 73,877 | 97,855 | (24.5)% | |||||||
Operating expenses | 82,855 | 110,282 | (24.9)% | |||||||
Operating income | 28,320 | 1,013 | n/m | |||||||
Interest and other expense, net | (2,858 | ) | (806 | ) | n/m | |||||
Income before taxes | 25,462 | 207 | n/m | |||||||
Tax expense | 7,185 | 6,754 | 6.4% | |||||||
Net income (loss) | $ | 18,277 | $ | (6,547 | ) | n/m | ||||
Net income (loss) per common share assuming dilution | $ | 0.35 | $ | (0.12 | ) | n/m | ||||
Weighted average number of shares: | ||||||||||
Basic | 51,401 | 53,090 | ||||||||
Diluted | 52,822 | 53,090 | ||||||||
Profit Margins: | Inc/(Dec) vs prior year profit margin % | |||||||||
Gross profit | 44.9 | % | 47.6 | % | (2.7)% | |||||
R&D | 3.6 | % | 5.3 | % | (1.7)% | |||||
S,G&A | 29.9 | % | 41.8 | % | (11.9)% | |||||
Operating income | 11.4 | % | 0.4 | % | 11.0% | |||||
Income before taxes | 10.3 | % | 0.1 | % | 10.2% | |||||
Net income (loss) | 7.4 | % | (2.8 | )% | 10.2% |
Haemonetics Corporation Financial Summary | ||||||||||
Condensed Consolidated Statements of Income for Year-to-Date FY19 and FY18 | ||||||||||
(Data in thousands, except per share data) | ||||||||||
12/29/2018 | 12/30/2017 | % Inc/(Dec) | ||||||||
vs Prior Year | ||||||||||
(unaudited) | ||||||||||
Net revenues | 718,284 | 670,371 | 7.1% | |||||||
Gross profit | 306,326 | 307,522 | (0.4)% | |||||||
R&D | 26,967 | 28,141 | (4.2)% | |||||||
S,G&A | 219,670 | 237,499 | (7.5)% | |||||||
Operating expenses | 246,637 | 265,640 | (7.2)% | |||||||
Operating income | 59,689 | 41,882 | 42.5% | |||||||
Gain on divestiture | — | 8,000 | (100.0)% | |||||||
Interest and other expense, net | (7,875 | ) | (3,562 | ) | n/m | |||||
Income before taxes | 51,814 | 46,320 | 11.9% | |||||||
Tax expense | 17,630 | 12,628 | 39.6% | |||||||
Net income | $ | 34,184 | $ | 33,692 | 1.5% | |||||
Net income per common share assuming dilution | $ | 0.64 | $ | 0.63 | 1.6% | |||||
Weighted average number of shares: | ||||||||||
Basic | 51,708 | 52,717 | ||||||||
Diluted | 53,184 | 53,285 | ||||||||
Profit Margins: | Inc/(Dec) vs prior year profit margin % | |||||||||
Gross profit | 42.6 | % | 45.9 | % | (3.3)% | |||||
R&D | 3.8 | % | 4.2 | % | (0.4)% | |||||
S,G&A | 30.6 | % | 35.4 | % | (4.8)% | |||||
Operating income | 8.3 | % | 6.2 | % | 2.1% | |||||
Income before taxes | 7.2 | % | 6.9 | % | 0.3% | |||||
Net income | 4.8 | % | 5.0 | % | (0.2)% |
Revenue Analysis for the Third Quarter of FY19 and FY18 | |||||||||||||||||
(Data in thousands) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
12/29/2018 | 12/30/2017 | Reported growth | Currency impact | Constant currency growth (1) | |||||||||||||
(unaudited) | |||||||||||||||||
Revenues by geography | |||||||||||||||||
United States | $ | 157,457 | $ | 140,840 | 11.8 | % | — | % | 11.8 | % | |||||||
International | 89,899 | 93,203 | (3.5 | )% | (0.6 | )% | (2.9 | )% | |||||||||
Net revenues | $ | 247,356 | $ | 234,043 | 5.7 | % | (0.2 | )% | 5.9 | % | |||||||
Revenues by business unit | |||||||||||||||||
Plasma | $ | 131,823 | $ | 113,098 | 16.6 | % | 0.6 | % | 16.0 | % | |||||||
Blood Center | 67,155 | 74,227 | (9.5 | )% | (0.3 | )% | (9.2 | )% | |||||||||
Hospital(2) | 48,378 | 46,718 | 3.6 | % | (0.9 | )% | 4.5 | % | |||||||||
Net revenues | $ | 247,356 | $ | 234,043 | 5.7 | % | (0.2 | )% | 5.9 | % | |||||||
(1) Constant currency growth, a non-GAAP financial measure, measures the change in sales between the current and prior year period using a constant currency. See description of non-GAAP financial measures contained in this release. (2) Hospital revenue includes both Cell Processing and Hemostasis Management revenue. Hemostasis Management revenue was $21.3 million and $19.9 million for the three months ended December 29, 2018 and December 30, 2017, respectively. Hemostasis Management revenue increased 7.3% in the third quarter of fiscal 2019 as compared with the same period of fiscal 2018. Without the effect of foreign exchange, Hemostasis Management revenue increased 9.0% in the third quarter of fiscal 2019 as compared with the same period of fiscal 2018. |
Revenue Analysis for the Year-to-Date FY19 and FY18 | |||||||||||||||||
(Data in thousands) | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
12/29/2018 | 12/30/2017 | Reported growth | Currency impact | Constant currency growth (1) | |||||||||||||
(unaudited) | |||||||||||||||||
Revenues by geography | |||||||||||||||||
United States | $ | 452,523 | $ | 410,671 | 10.2 | % | — | % | 10.2 | % | |||||||
International | 265,761 | 259,700 | 2.3 | % | 0.9 | % | 1.4 | % | |||||||||
Net revenues | $ | 718,284 | $ | 670,371 | 7.1 | % | 0.4 | % | 6.7 | % | |||||||
Revenues by business unit | |||||||||||||||||
Plasma | $ | 373,078 | $ | 324,376 | 15.0 | % | 0.5 | % | 14.5 | % | |||||||
Blood Center | 199,881 | 211,502 | (5.5 | )% | 0.3 | % | (5.8 | )% | |||||||||
Hospital(2) | 145,325 | 134,493 | 8.1 | % | 0.8 | % | 7.3 | % | |||||||||
Net revenues | $ | 718,284 | $ | 670,371 | 7.1 | % | 0.4 | % | 6.7 | % | |||||||
(1) Constant currency growth, a non-GAAP financial measure, measures the change in sales between the current and prior year period using a constant currency. See description of non-GAAP financial measures contained in this release. (2) Hospital revenue includes both Cell Processing and Hemostasis Management revenue. Hemostasis Management revenue was $65.4 million and $55.6 million for the nine months ended December 29, 2018 and December 30, 2017, respectively. Hemostasis Management revenue increased 17.6% in the first nine months of fiscal 2019 as compared with the same period of fiscal 2018. Without the effect of foreign exchange, Hemostasis Management revenue increased 17.0% in the first nine months of fiscal 2019 as compared with the same period of fiscal 2018. |
Condensed Consolidated Balance Sheets | |||||||||
(Data in thousands) | |||||||||
As of | |||||||||
12/29/2018 | 3/31/2018 | ||||||||
(unaudited) | |||||||||
Assets | |||||||||
Cash and cash equivalents | $ | 154,871 | $ | 180,169 | |||||
Accounts receivable, net | 167,641 | 151,226 | |||||||
Inventories, net | 168,936 | 160,799 | |||||||
Other current assets | 24,449 | 28,983 | |||||||
Total current assets | 515,897 | 521,177 | |||||||
Property, plant & equipment, net | 351,108 | 332,156 | |||||||
Intangible assets, net | 134,724 | 156,589 | |||||||
Goodwill | 210,723 | 211,395 | |||||||
Other assets | 15,185 | 16,022 | |||||||
Total assets | $ | 1,227,637 | $ | 1,237,339 | |||||
Liabilities & Stockholders' Equity | |||||||||
Short-term debt & current maturities | $ | 17,199 | $ | 194,259 | |||||
Other current liabilities | 194,083 | 190,444 | |||||||
Total current liabilities | 211,282 | 384,703 | |||||||
Long-term debt | 326,618 | 59,423 | |||||||
Other long-term liabilities | 46,608 | 40,784 | |||||||
Stockholders' equity | 643,129 | 752,429 | |||||||
Total liabilities & stockholders' equity | $ | 1,227,637 | $ | 1,237,339 |
Condensed Consolidated Statements of Cash Flows | |||||||
(Data in thousands) | |||||||
Nine Months Ended | |||||||
12/29/2018 | 12/30/2017 | ||||||
(unaudited) | |||||||
Cash Flows from Operating Activities: | |||||||
Net income | $ | 34,184 | $ | 33,692 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 79,637 | 66,267 | |||||
Impairment of assets | 21,170 | 218 | |||||
Stock-based compensation expense | 12,743 | 7,360 | |||||
Gain on divestiture | — | (8,000 | ) | ||||
Provision for losses on accounts receivable and inventory | 3,220 | 514 | |||||
Change in other non-cash operating activities | 1,038 | 398 | |||||
Change in accounts receivable, net | (19,752 | ) | 8,204 | ||||
Change in inventories, net | (11,624 | ) | 17,460 | ||||
Change in other working capital | 18,027 | 36,610 | |||||
Net cash provided by operating activities | 138,643 | 162,723 | |||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures | (105,245 | ) | (55,696 | ) | |||
Proceeds from divestiture | — | 9,000 | |||||
Proceeds from sale of property, plant and equipment | 2,314 | 1,627 | |||||
Net cash used in investing activities | (102,931 | ) | (45,069 | ) | |||
Cash Flows from Financing Activities: | |||||||
Borrowings, net of repayments | 89,677 | (44,475 | ) | ||||
Share repurchases | (160,000 | ) | — | ||||
Proceeds from employee stock programs | 12,700 | 36,485 | |||||
Net cash provided used in financing activities | (57,623 | ) | (7,990 | ) | |||
Effect of exchange rates on cash and cash equivalents | (3,387 | ) | 2,363 | ||||
Net Change in Cash and Cash Equivalents | (25,298 | ) | 112,027 | ||||
Cash and Cash Equivalents at Beginning of the Period | 180,169 | 139,564 | |||||
Cash and Cash Equivalents at End of Period | $ | 154,871 | $ | 251,591 | |||
Free Cash Flow Reconciliation: | |||||||
Cash provided by operating activities | $ | 138,643 | $ | 162,723 | |||
Capital expenditures, net of proceeds from sale of property, plant and equipment | (102,931 | ) | (54,069 | ) | |||
Free cash flow after restructuring and turnaround costs | 35,712 | 108,654 | |||||
Restructuring and turnaround costs | 27,528 | 13,253 | |||||
Tax benefit on restructuring and turnaround costs | (5,734 | ) | (8,549 | ) | |||
Free cash flow before restructuring and turnaround costs | $ | 57,506 | $ | 113,358 |
Haemonetics Corporation Financial Summary | ||||
Reconciliation of Non-GAAP Measures |
Reconciliation of Adjusted Measures for the Third Quarter of FY19 and FY18 | |||||||
(Data in thousands except per share data) | |||||||
Three Months Ended | |||||||
12/29/2018 | 12/30/2017 | ||||||
(unaudited) | |||||||
GAAP gross profit | $ | 111,175 | $ | 111,295 | |||
Accelerated depreciation | 4,822 | — | |||||
Restructuring and turnaround costs | 894 | 212 | |||||
Adjusted gross profit | $ | 116,891 | $ | 111,507 | |||
GAAP operating expenses | $ | 82,855 | $ | 110,282 | |||
Restructuring and turnaround costs | (897 | ) | (31,086 | ) | |||
Deal amortization | (6,131 | ) | (6,506 | ) | |||
Legal charges (1) | (1,614 | ) | (3,011 | ) | |||
Adjusted operating expenses | $ | 74,213 | $ | 69,679 | |||
GAAP operating income | $ | 28,320 | $ | 1,013 | |||
Accelerated depreciation | 4,822 | — | |||||
Restructuring and turnaround costs | 1,791 | 31,298 | |||||
Deal amortization | 6,131 | 6,506 | |||||
Legal charges (1) | 1,614 | 3,011 | |||||
Adjusted operating income | $ | 42,678 | $ | 41,828 | |||
GAAP net income (loss) | 18,277 | (6,547 | ) | ||||
Accelerated depreciation | 4,822 | — | |||||
Restructuring and turnaround costs | 1,754 | 31,298 | |||||
Deal amortization | 6,131 | 6,506 | |||||
Legal charges (1) | 1,614 | 3,011 | |||||
Tax impact associated with adjustments | 829 | (630 | ) | ||||
Adjusted net income | $ | 33,427 | $ | 33,638 | |||
GAAP net income (loss) per common share assuming dilution | $ | 0.35 | $ | (0.12 | ) | ||
Adjusted items after tax per common share assuming dilution | 0.28 | 0.74 | |||||
Adjusted net income per common share assuming dilution | $ | 0.63 | $ | 0.62 | |||
(1) Reflects amounts accrued for resolution of customer damages assessments associated with product recalls. |
Reconciliation of Adjusted Measures for Year-to-Date FY19 and FY18 | |||||||
(Data in thousands except per share data) | |||||||
Nine Months Ended | |||||||
12/29/2018 | 12/30/2017 | ||||||
(unaudited) | |||||||
GAAP gross profit | $ | 306,326 | $ | 307,522 | |||
Impairment of assets | 21,170 | — | |||||
Accelerated depreciation | 13,203 | — | |||||
Restructuring and turnaround costs | 984 | 478 | |||||
Adjusted gross profit | $ | 341,683 | $ | 308,000 | |||
GAAP operating expenses | $ | 246,637 | $ | 265,640 | |||
Restructuring and turnaround costs | (6,274 | ) | (39,090 | ) | |||
Deal amortization | (18,667 | ) | (19,501 | ) | |||
Legal charges (1) | (2,289 | ) | (3,011 | ) | |||
Adjusted operating expenses | $ | 219,407 | $ | 204,038 | |||
GAAP operating income | $ | 59,689 | $ | 41,882 | |||
Impairment of assets | 21,170 | — | |||||
Accelerated depreciation | 13,203 | — | |||||
Restructuring and turnaround costs | 7,258 | 39,568 | |||||
Deal amortization | 18,667 | 19,501 | |||||
Legal charges (1) | 2,289 | 3,011 | |||||
Adjusted operating income | $ | 122,276 | $ | 103,962 | |||
GAAP net income | $ | 34,184 | $ | 33,692 | |||
Impairment of assets | 21,170 | — | |||||
Accelerated depreciation | 13,203 | — | |||||
Restructuring and turnaround costs | 7,221 | 39,568 | |||||
Deal amortization | 18,667 | 19,501 | |||||
Legal charges (1) | 2,289 | 3,011 | |||||
Gain on divestiture | — | (8,000 | ) | ||||
Tax impact associated with adjustments | (1,926 | ) | (10,996 | ) | |||
Adjusted net income | $ | 94,808 | $ | 76,776 | |||
GAAP net income per common share assuming dilution | $ | 0.64 | $ | 0.63 | |||
Adjusted items after tax per common share assuming dilution | 1.14 | 0.81 | |||||
Adjusted net income per common share assuming dilution | $ | 1.78 | $ | 1.44 | |||
(1) Reflects amounts accrued for resolution of customer damages assessments associated with product recalls. |