-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Be2UnS/L4+rmhRnBdROnXMl9fW2TpoGt5hfnAgKqR4V2r2syOVLusFgk9Wkqs4eW kXabWfWM74mhC3mnLfg4sw== 0000891092-04-003701.txt : 20040729 0000891092-04-003701.hdr.sgml : 20040729 20040729080730 ACCESSION NUMBER: 0000891092-04-003701 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040729 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040729 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HAEMONETICS CORP CENTRAL INDEX KEY: 0000313143 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 042882273 STATE OF INCORPORATION: MA FISCAL YEAR END: 0403 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14041 FILM NUMBER: 04937388 BUSINESS ADDRESS: STREET 1: 400 WOOD RD CITY: BRAINTREE STATE: MA ZIP: 02184 BUSINESS PHONE: 7818487100 MAIL ADDRESS: STREET 1: 400 WOOD ROAD CITY: BRAINTREE STATE: MA ZIP: 02184 8-K 1 e18573_8k.txt FORM 8-K ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) July 29, 2004 HAEMONETICS CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) Massachusetts 1-10730 04-2882273 - ---------------------------- ---------------- ------------------- (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.) 400 Wood Road Braintree, MA 02184 - ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (781) 848-7100 - -------------------------------------------------------------------------------- (Former name or former address if changed since last report) Item. 7 FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 99.1: Press Release of Haemonetics Corporation dated July 29, 2004 Item. 12 RESULTS OF OPERATIONS AND FINANCIAL CONDITION On July 29, 2004, Haemonetics Corporation (the "Company") issued a press release announcing financial results for the first quarter ended July 3, 2004. A copy of the release is furnished with this report as exhibit 99.1. The information in this current report on Form 8-K and the exhibit attached hereto shall not be deemed "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. (Registrant) Date: July 29, 2004 By: /s/ Ronald J. Ryan ---------------------------------------- Ronald J. Ryan, Vice President and Chief Financial Officer 2 EXHIBIT INDEX Exhibit No. Subject Matter - ----------- -------------- 99.1 Press Release of Haemonetics Corporation dated July 29, 2004. 3 EX-99.1 2 e18573ex99_1.txt PRESS RELEASE Exhibit 99.1 Haemonetics Reports First Quarter Results Affirms Full Year Guidance BRAINTREE, Mass., July 29 /PRNewswire-FirstCall/ -- Haemonetics Corporation reported today first quarter 2005 net revenue of $95 million, a 7% increase over first quarter fiscal 2004. Diluted net earnings per share were $0.38, up 81% over Q1:04. The Company also affirmed its full fiscal 2005 guidance of mid-single digit revenue growth, gross profit margins in the high 40% range, operating income growing more than 20%, improved operating margin, and net earnings per share in the range of $1.38 to $1.43. FINANCIAL HIGHLIGHTS Haemonetics reported the following financial results for the quarter: -- Net revenue of $95 million, up 7% from $88 million in Q1:04 -- Gross profit of $47 million, up 19% from $40 million in Q1:04 -- Gross margin of 50%, up from 45% in Q1:04 -- Operating expenses of $32 million, up 2% from $31 million in Q1:04 -- Operating income of $15 million, up 83% from $8 million Q1:04 -- Operating margin of 16%, up from 9% in Q1:04 -- Net earnings per share of $0.38, up 81% from $0.21 in Q1:04 Several factors affected the Company's financial results in the quarter. There was a $4 million negative impact to revenue due to consolidation in the plasma market. Currency affected results favorably. There was also a $600 thousand income tax benefit in the quarter in Japan that is reflected in this quarter's 32% income tax rate. The Company projects the tax rate to be 36% for the balance of the year. Haemonetics will post a non-GAAP financial reconciliation on its website prior to its conference call. Haemonetics maintained a strong balance sheet, highlighted by a cash increase of $12 million to an ending cash balance of $130 million. The Company achieved $9.5 million of cash flow from operating activities for the quarter. Brad Nutter, Haemonetics' President and CEO, said, "It was a challenge to produce these strong results in light of the loss in revenue versus last year in the plasma market. We did this by continuing to grow in all other product lines. At the same time, our bottom line improved because we managed costs and expenses well." DONOR PRODUCT LINE HIGHLIGHTS Plasma disposables revenue was $25 million for the quarter, down 14% over Q1:04. Blood bank disposables revenue was $31 million, up 19% over Q1:04. Platelet disposables represent the majority of the blood bank product line, and about 80% of platelet disposables revenues are in Europe and Japan. These regions continued to perform well and experienced favorable impact from currency. Red cell disposables revenue was $6 million, up 42% over Q1:04. This product is predominantly sold in the U.S. where blood shortages are more frequent. In the quarter, Haemonetics renegotiated and extended its agreement with the American Red Cross. The Red Cross launched its national double red cell donation program in 2002 and has now implemented a significant number of collection devices across 19 of its 35 regions to support its efforts to increase supply of type O and B red cells. PATIENT PRODUCT LINE HIGHLIGHTS Cell Saver(R) brand disposables revenue was $16 million, up 4% over Q1:04 despite a decline in open heart surgeries. OrthoPAT(R) brand disposables revenue was $4 million, up 71% over Q1:04. The OrthoPAT brand has gained momentum, posting growth over 30% for five consecutive quarters. SUMMARY OF RECENT ANNOUNCEMENTS In the quarter, Haemonetics reported on several activities in support of its strategy to leverage its core business to improve growth and profitability. In April, the Company's stand-alone bacterial detection blood sampling system was cleared for use in the U.S. Bacterial detection of platelets was mandated by the American Association of Blood Banks in March 2004. Therefore, Haemonetics' technology supports blood center customers' regulatory needs. In June, the Company announced it had extended for three years its exclusive marketing agreement in Japan with Arizant Inc. for Arizant's Bair Hugger(R) patient warming system. Additionally, Haemonetics will market Arizant's Ranger(R) product line, a blood fluid warming system, in Japan once the system clears the Japanese regulatory process. Also in June, Haemonetics received U.S. regulatory clearance for its high- separation ("HS") core bowl, a proprietary plasma collection bowl that removes white blood cells from plasma without the need for an attached filtration device. The system meets customers' needs and gives them a significant improvement in plasma quality and ease of collection. Finally, early in the second quarter, Haemonetics announced that it will exclusively market Crit-Scan(R) to blood and plasma collectors globally. Crit-Scan is manufactured by Hema Metrics Inc. and is the first non-invasive device to measure hematocrit in blood without a painful needle stick to the finger or ear. "We will continue to leverage our strong market share and brand name to grow our business. We are confident that we can achieve continued growth and profitability to meet full year guidance," Mr. Nutter said. CONFERENCE CALL DETAILS Haemonetics will hold a conference call on Thursday, July 29th at 10:00 am eastern to review financial and operational highlights. Interested parties can participate by calling (800) 921-9431 (US only) or (973) 935-8505. The call will be replayed through August 12th at (877) 519-4471 (US only) or (973) 341-3080 using PIN 4938383. Haemonetics (NYSE: HAE) is a global company engaged in the design, manufacture and worldwide marketing of automated blood processing systems. These systems address important medical markets: surgical blood salvage, blood component collection, plasma collection, and blood component safety. To learn more about Haemonetics' products and markets, visit its web site at http://www.haemonetics.com. This release contains forward looking statements that involve risks and uncertainties, including technological advances in the medical field and standards for transfusion medicine and our ability to successfully implement products that incorporate such advances and standards, product demand, market acceptance, regulatory uncertainties, the effect of economic and political conditions, the impact of competitive products and pricing, blood product reimbursement policies and practices, foreign currency exchange rates, changes in customers' ordering patterns, the effect of industry consolidation as seen in the plasma market, the effect of communicable diseases and the effect of uncertainties in markets outside the U.S. (including Europe and Asia) in which we operate and other risks detailed in the Company's filings with the Securities and Exchange Commission. The foregoing list should not be construed as exhaustive. The forward-looking statements are based on estimates and assumptions made by management of the Company and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results and experience could differ materially from the forward-looking statements. Cell Saver and OrthoPAT are registered trademarks of Haemonetics Corporation. Bair Hugger and Ranger are registered trademarks of Arizant Inc. Crit-Scan is a registered trademark of Hema Metrics Corp. Haemonetics Corporation Financial Summary for the First Quarter FYE05 (Unaudited data in thousands, except per share data) CONSOLIDATED INCOME STATEMENT % Inc/(Dec) vs prior 7/3/04 6/28/03 year NET REVENUES $94,602 $88,283 7.2 Gross profit 47,100 39,586 19.0 R&D 4,054 4,997 (18.9) S, G & A 28,084 26,403 6.4 Operating expenses 32,138 31,400 2.4 Operating income 14,962 8,186 82.8 Interest expense (661) (786) (15.9) Interest income 363 283 28.3 Other income (expense), net (232) 103 (325.2) Income before taxes 14,432 7,786 85.4 Tax expense 4,612 2,803 64.5 NET INCOME $9,820 $4,983 97.1 Net income per common share assuming dilution $0.38 $0.21 81.0 Weighted average number of shares Basic 25,155 24,063 Diluted 25,579 24,223 PROFIT MARGINS Gross profit 49.8% 44.8% R&D 4.2% 5.6% S, G & A 29.7% 29.9% Operating income 15.8% 9.3% 6.5 Income before taxes 15.3% 8.8% 6.5 Net income 10.4% 5.6% REVENUE ANALYSIS % 7/3/04 6/28/03 Inc/(Dec) Revenues by Geography United States $32,907 $31,552 4.3 International 61,695 56,731 8.8 Net Revenues $94,602 $88,283 7.2 Disposable Revenues by Product Family Donor: Plasma 25,486 29,589 (13.9) Blood Bank 30,769 25,949 18.6 Red Cell 6,461 4,564 41.6 62,716 60,102 4.3 Patient: Surgical $20,773 $18,293 13.6 Subtotal $83,489 $78,395 6.5 Equipment 6,673 4,486 48.8 Misc & Service 4,440 5,402 (17.8) Net Revenues $94,602 $88,283 7.2 Period ending BALANCE SHEET: 7/3/04 4/3/04 Assets Cash & cash equivalents $130,356 $118,117 Accounts receivable, net 84,046 82,640 Inventories, net 52,589 52,235 Other current assets 28,676 28,457 Total current assets 295,667 281,449 Net PP&E 73,810 78,030 Other assets 46,906 47,915 Total assets $416,383 $407,394 Period ending 7/3/04 4/3/04 Liabilities & Stockholders' Equity S/T debt & current maturities $30,647 $32,818 Other current liabilities 59,581 63,025 Total current liabilities 90,228 95,843 Deferred tax liability, net 1,592 1,682 Long-term debt 25,322 25,442 Other long-term liabilities 4,609 4,678 Stockholders' equity 294,632 279,749 Total liabilities & equity $416,383 $407,394 Contact: Julie Fallon Tel. (781) 356-9517 Alternate Tel. (617) 320-2401 fallon@haemonetics.com SOURCE Haemonetics Corporation -0- 07/29/2004 /CONTACT: Julie Fallon of Haemonetics Corporation, +1-781-356-9517, fallon@haemonetics.com/ /Web site: http://www.haemonetics.com/ (HAE) CO: Haemonetics Corporation ST: Massachusetts IN: MTC BIO SU: ERN CCA MAV -----END PRIVACY-ENHANCED MESSAGE-----