-----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, ShzNj0xZfCJ58QZOAWcqL71rCZNbCnMKY/2P2wtQ/HTcVyHxEvJaJWb7KsiXnPqG aG8t8VEGHZKFkVcK68o66w== 0000910647-00-000025.txt : 20000204 0000910647-00-000025.hdr.sgml : 20000204 ACCESSION NUMBER: 0000910647-00-000025 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19991225 FILED AS OF DATE: 20000203 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: DE FISCAL YEAR END: 0403 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-14041 FILM NUMBER: 521076 BUSINESS ADDRESS: STREET 1: 400 WOOD RD CITY: BRAINTREE STATE: MA ZIP: 02184 BUSINESS PHONE: 6178487100 MAIL ADDRESS: STREET 1: 400 WOOD ROAD CITY: BRAINTREE STATE: MA ZIP: 02184 10-Q 1 BODY OF 10-Q FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Quarterly Report Under Section 13 or 15(d) of the Securities and Exchange Act of 1934 For the quarter ended: December 25, 1999 Commission File Number: 1-10730 ----------------- ------- HAEMONETICS CORPORATION ----------------------- (Exact name of registrant as specified in its charter) Massachusetts 04-2882273 - ---------------------------------- ------------------------------------ (State or other jurisdiction (I.R.S. Employer Identification No.) of incorporation or organization) 400 Wood Road, Braintree, MA 02184 ---------------------------------------- (Address of principal executive offices) Registrant's telephone number, including area code: (781) 848-7100 -------------- Indicate by check mark whether the registrant (1.) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) (2.) has been subject to the filing requirements for at least the past 90 days. Yes X No ----- ----- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 25,546,629 shares of Common Stock, $ .01 par value, as of --------------------------------------------------------- December 25, 1999 HAEMONETICS CORPORATION INDEX
PAGE ---- Part I. Financial Information Item 1. Financial Statements Consolidated Statements of Operations - 2 Three and Nine Months Ended December 25, 1999 and January 2, 1999 Consolidated Balance Sheets - December 25, 1999 3 and April 3, 1999 Consolidated Statements of Stockholders' Equity - 4 Nine Months Ended December 25, 1999 Consolidated Statements of Cash Flows - 5 Nine Months Ended December 25, 1999 and January 2, 1999 Notes to Consolidated Financial Statements 6-10 Item 2. Management's Discussion and Analysis of 11-20 Financial Condition and Results of Operations Item 3. Quantitative and Qualitative Disclosures About Market Risk 20-21 PART II. Other Information 22 Signatures 23
Item 1. Financial Statements HAEMONETICS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - in thousands, except share data)
Three Months Ended Nine Months Ended ------------------ ------------------- Dec 25, Jan 2, Dec 25, Jan 2, 1999 1999 1999 1999 ------- ------ ------- ------ Net revenues 70,778 67,958 208,094 207,741 Cost of goods sold 37,601 36,730 110,461 108,779 ------------------------------------------- Gross profit 33,177 31,228 97,633 98,962 Operating expenses: Research and development 3,792 3,906 11,197 11,035 Selling, general and administrative 20,546 20,101 61,818 65,496 ------------------------------------------- Total operating expenses 24,338 24,007 73,015 76,531 ------------------------------------------- Operating income 8,839 7,221 24,618 22,431 Interest expense (1,229) (1,051) (3,296) (3,062) Interest income 1,349 1,249 3,714 3,404 Other income, net 648 (45) 1,572 420 ------------------------------------------- Income from continuing operations before provision for income taxes 9,607 7,374 26,608 23,193 Provision for income taxes 3,074 2,581 8,514 8,118 ------------------------------------------- Earnings from continuing operations $ 6,533 $ 4,793 $ 18,094 $ 15,075 =========================================== Discontinued operations: Income (loss) from operations, net of income tax expense (YTD) of $68 in FY 00 and a $52 in FY 99 0 (8) 144 (95) ------------------------------------------- Net Income $ 6,533 $ 4,785 $ 18,238 $ 14,980 =========================================== Basic income(loss) per common share Continuing operations $ 0.254 $ 0.178 $ 0.689 $ 0.565 Discontinued operations - - 0.005 (0.004) Net income 0.254 0.178 0.694 0.561 Income(loss) per common share assuming dilution Continuing operations $ 0.250 $ 0.175 $ 0.682 $ 0.559 Discontinued operations - - 0.005 (0.004) Net income 0.250 0.175 0.687 0.556 Weighted average shares outstanding Basic 25,696 26,893 26,278 26,694 Diluted 26,097 27,408 26,530 26,953
The accompanying notes are an integral part of these consolidated financial statements. HAEMONETICS CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited - in thousands, except share data)
Dec. 25, April 3, 1999 1999 -------- -------- ASSETS Current assets: Cash and short term investments $ 46,525 $ 56,319 Accounts receivable, less allowance of $1,073 at Dec 25, 1999 and $747 at April 3, 1999 72,040 62,975 Inventories 59,245 59,773 Current investment in sales-type leases, net 9,702 12,303 Deferred tax asset 29,263 29,741 Other prepaid and current assets 8,398 10,211 -------------------- Total current assets 225,173 231,322 -------------------- Property, plant and equipment 184,026 178,066 Less accumulated depreciation 100,970 95,050 -------------------- Net property, plant and equipment 83,056 83,016 Other assets: Investment in sales-type leases, net (long term) 20,418 24,716 Distribution rights, net 11,808 10,518 Other assets, net 21,415 6,787 -------------------- Total other assets 53,641 42,021 -------------------- Total assets $361,870 $356,359 ==================== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable and current maturities of long-term debt $ 32,365 $ 6,645 Accounts payable 14,222 10,666 Accrued payroll and related costs 9,829 9,229 Accrued income taxes 18,885 21,850 Other accrued liabilities 15,171 17,476 Current liabilities and accrued losses net of current assets of discontinued operations --- 3,268 -------------------- Total current liabilities 90,472 69,134 -------------------- Deferred income taxes 11,718 11,684 Long-term debt, net of current maturities 45,410 52,526 Other long-term liabilities 2,194 1,008 Long-term liabilities, net of long-term assets of discontinued operations --- 146 Stockholders' equity: Common stock, $.01 par value; Authorized - 80,000,000 shares; Issued 29,829,591 shares at December 25, 1999; 29,702,623 shares at April 3, 1999 298 297 Additional paid-in capital 67,687 65,504 Retained earnings 229,971 211,834 Cumulative translation adjustments (10,973) (9,825) -------------------- Stockholders' equity before treasury stock 286,983 267,810 Less: treasury stock 4,282,962 shares at cost at December 25, 1999 and 2,756,969 shares at cost at April 3, 1999 74,907 45,949 -------------------- Total stockholders' equity 212,076 221,861 -------------------- Total liabilities and stockholders' equity $361,870 $356,359 ==================== Supplemental disclosure of balance sheet information: Net debt $ 31,250 $ 2,852
The accompanying notes are an integral part of these consolidated financial statements. HAEMONETICS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited- in thousands)
Nine Months Ended --------------------- Dec 25, Jan 2, 1999 1999 ------- ------ Cash Flows from Operating Activities: Net income $ 18,238 $ 14,980 Less net income (loss) from discontinued operations 144 (95) --------------------- Net income from continuing operations 18,094 15,075 Adjustments to reconcile net income to net cash provided by operating activities: Non cash items: Depreciation and amortization 21,586 20,612 Deferred tax benefit 64 408 Other 2,015 795 Change in operating assets and liabilities: Increase in accounts receivable - net (7,772) (4,802) Increase in inventories (113) (775) (Increase) decrease in sales-type leases (current) 2,431 (1,450) Decrease in prepaid income taxes 356 8,262 (Increase) decrease in other assets 1,047 (6,397) Decrease in accounts payable, accrued expenses and other current liabilities (4,058) (2,501) --------------------- Net cash provided by operating activities, continuing operations 33,650 29,227 --------------------- Net cash used in operating activities, discontinued operations (4,932) (14,932) --------------------- Net cash provided by operating activities 28,718 14,295 Cash Flows from Investing Activities: Capital expenditures on property, plant and equipment, net of retirements and disposals (21,198) (17,290) Other investments (15,000) --- Net decrease in sales-type leases (long-term) 4,774 8,614 --------------------- Net cash used in investing activities, continuing operations (31,424) (8,676) --------------------- Net cash provided by investing activities, discontinued operations 3,562 14,536 --------------------- Net cash provided by (used in) investing activities (27,862) 5,860 Cash Flows from Financing Activities: Payments on long-term real estate mortgage (8,191) (154) Net increase (decrease) in short-term credit agreements 24,267 (4,438) Net increase (decrease) in long-term credit agreements 415 (1,666) Employee stock purchase plan purchases 379 0 Exercise of stock options and related tax benefit 2,184 6,269 Purchase of treasury stock (29,437) 0 --------------------- Net cash used in financing activities (10,383) 11 Effect of exchange rates on cash and cash equivalents (267) 321 --------------------- Net increase (decrease) in cash and cash equivalents (9,794) 20,487 Cash and cash equivalents at beginning of period 56,319 21,766 --------------------- Cash and cash equivalents at end of period $ 46,525 $ 42,253 ===================== Supplemental disclosures of cash flow information: Net decrease in cash and cash equivalents, discontinued operations $ (1,370) $ (396) Net increase (decrease) in cash and cash equivalents, continuing operations $ (8,424) $ 20,883 Increase (decrease) in net debt $ 26,285 $(26,745) Interest paid $ 3,606 $ 3,708 Income taxes paid (refunded) $ 11,345 $ (6,478)
HAEMONETICS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in thousands)
Common Stock Additional Cumulative Total ------------- Paid-in Treasury Retained Translation Stockholders' Comprehensive Shares $'s Capital Stock Earnings Adjustment Equity Income ------------------------------------------------------------------------------------------------ Balance, April 3, 1999 29,703 $297 $65,504 $(45,949) $211,834 $ (9,825) $221,861 ============================================================================================ Employee stock purchase plan --- --- --- 480 (101) --- 379 Exercise of stock options and related tax benefit 127 1 2,183 --- --- --- 2,184 Purchase of treasury stock --- --- --- (29,437) --- --- (29,437) Net income --- --- --- --- 18,238 --- 18,238 $18,238 Foreign currency translation adjustment --- --- --- --- --- (1,148) (1,148) (1,148) ------- Comprehensive income --- --- --- --- --- --- --- $17,090 -------------------------------------------------------------------------------------======= Balance, Dec 25, 1999 29,830 $298 $67,687 $(74,907) $229,971 $(10,973) $212,076 ============================================================================
HAEMONETICS CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. BASIS OF PRESENTATION The results of operations for the interim periods shown in this report are not necessarily indicative of results for any future interim period or for the entire fiscal year. The Company believes that the quarterly information presented includes all adjustments (consisting only of normal, recurring adjustments) that the Company considers necessary for a fair presentation in accordance with generally accepted accounting principles. The accompanying consolidated financial statements and notes should be read in conjunction with the Company's audited annual financial statements. 2. FISCAL YEAR The Company's fiscal year ends on the Saturday closest to the last day of March. Fiscal year 2000 includes 52 weeks with the third quarter, ended December 25, 1999 including 12 weeks and the fourth quarter, ending March 31, 2000, including 14 weeks. 3. COMPREHENSIVE INCOME In June 1998, the Company adopted Statement of Financial Accounting Standard (SFAS) NO. 130, "Reporting Comprehensive Income." SFAS 130 requires the presentation, by major components and as a single total, the change in the Company's net assets during a period from non-owner sources. Currently, the Company's non-owner changes in equity are the foreign currency translation adjustments, which totaled $11.0 million and $9.8 million at December 25, 1999 and April 3, 1999, respectively. 4. NEW PRONOUNCEMENTS In June 1998, FASB issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities." SFAS No. 133 establishes accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair value. The SFAS No. 133 requires that changes in the derivatives fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Special accounting for qualifying hedges allows a derivative's gains and losses to offset related results on the hedged item in the income statement, or in the case of a hedge of a forecasted probable transaction, a derivative's gains and losses are included in other comprehensive income until the transaction is consummated. Additionally, a company must formally document, designate, and assess the effectiveness of transactions that receive hedge accounting. SFAS No. 133 is effective for fiscal years beginning after June 15, 2000. A company may implement SFAS No. 133 as of the beginning of any fiscal quarter after issuance. SFAS No. 133 cannot be applied retroactively. The impacts of adopting SFAS No. 133 on the Company's financial statements or the timing of adoption of SFAS No. 133 have not been determined. However, it is expected that the derivative financial instruments acquired in connection with the Company's hedging program will continue to qualify for hedge accounting. 5. FOREIGN CURRENCY Foreign currency transactions and financial statements are translated into U.S. dollars following the provisions of SFAS No. 52, "Foreign Currency Translation." Accordingly, assets and liabilities of foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at year end. Net revenues and costs and expenses are translated at average rates in effect during the year. The effects of exchange rate changes on the Company's assets and liabilities are included in the cumulative translation adjustment account. Included in other income (expense) in the consolidated statement of operations for the first nine months of fiscal year 2000 and fiscal year 1999 are ($19,400) and ($1,035,000) respectively, in foreign currency transaction gains (losses). The Company enters into forward exchange contracts to hedge certain firm sales commitments to customers that are denominated in foreign currencies. The purpose of the Company's foreign hedging activities is to minimize, for a period of time, the unforeseen impact on the Company's results of operations of fluctuations in foreign exchange rates. The Company also enters into forward contracts that settle within 35 days to hedge certain intercompany receivables denominated in foreign currencies. Actual gains and losses on all forward contracts are recorded in operations, offsetting the gains and losses on the underlying transactions being hedged. These derivative financial instruments are not used for trading purposes. The cash flows related to the gains and losses on these foreign currency hedges are classified in the consolidated statements of cash flows as part of cash flows from operating activities. At December 25, 1999 and January 2, 1999, the Company had forward exchange contracts, all maturing in less than twelve months, to exchange foreign currencies (major European currencies and Japanese yen) primarily for U.S. dollars totaling $154.9 million and $165.5 million, respectively. Of the respective balances, $50.8 million and $52.9 million represented contracts related to intercompany receivables that settled within 35 days. The balance of the contracts relate to firm sales commitments. Gross unrealized gains and losses from hedging firm sales commitments, based upon current rates, were a $2.6 million gain and a ($6.2) million loss at December 25, 1999 and a $47.9 thousand gain and a ($7.6) million loss at January 2, 1999. Deferred gains and losses are recognized in earnings when the transactions being hedged are recognized. Management anticipates that these deferred amounts at December 25, 1999 will be offset by the foreign exchange effect on firmly committed sales of products to international customers in future periods. The Company is exposed to credit loss in the event of nonperformance by counter-parties on these foreign exchange contracts. The Company does not anticipate nonperformance by any of these parties. 6. INVENTORIES Inventories are stated at the lower of cost or market and include the cost of material, labor and manufacturing overhead. Cost is determined on the first-in, first-out method. Inventories consist of the following:
December 25, April 3, 1999 1999 ------------ -------- (in thousands) Raw materials $14,959 $14,497 Work-in-process 6,324 5,106 Finished goods 37,962 40,170 ------- ------- $59,245 $59,773 ======= =======
7. NET INCOME PER SHARE The following table provides a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations, as required by Statement of Financial Accounting Standards, "SFAS" No. 128, "Earnings Per Share." Basic EPS is computed by dividing reported earnings available to stockholders by weighted average shares outstanding. Diluted EPS includes the effect of other common stock equivalents.
For the three months ended -------------------------- December 25, January 2, 1999 1999 -------------------------- Basic EPS - --------- Net Income $ 6,533 $ 4,785 Weighted Average Shares 25,696 26,893 --------------------- Basic income per share $ .254 $ .178 --------------------- Diluted EPS - ----------- Net Income $ 6,533 $ 4,785 Basic Weighted Average shares 25,696 26,893 Effect of Stock options 401 515 --------------------- Diluted Weighted Average shares 26,097 27,408 --------------------- Diluted income per share $ .250 $ .175 --------------------- For the nine months ended -------------------------- December 25, January 2, 1999 1999 -------------------------- Basic EPS - --------- Net Income $18,238 $14,980 Weighted Average Shares 26,278 26,694 --------------------- Basic income per share $ .694 $ 0.561 --------------------- Diluted EPS - ----------- Net Income $18,238 $14,980 Basic Weighted Average shares 26,278 26,694 Effect of Stock options 252 259 --------------------- Diluted Weighted Average shares 26,530 26,953 --------------------- Diluted income per share $ .687 $ 0.556 t ---------------------
8. DISCONTINUED OPERATIONS During fiscal year 1999, the Company sold six of its seven regional blood systems for total cash proceeds of $5,325,000. The divestiture was completed during the first quarter of fiscal year 2000, with the sale of the last remaining center. During the second quarter of fiscal year 2000, the Company completed its accounting for the divestiture with the write-off of the excess reserve of $144,000, net of taxes of $68,000. 9. OTHER INVESTMENTS During the third quarter of fiscal year 2000, the Company made a $15.0 million in the securities of the privately-held company, Transfusion Technologies Corporation. The $15.0 million Investment will be accounted for using the cost basis method of accounting. Transfusion Technologies Corporation designs, develops, and markets equipment and disposable sets for the processing of human blood for transfusion to patients. 10. SEGMENT, GEOGRAPHIC AND CUSTOMER INFORMATION Segment Definition Criteria The Company manages its business on the basis of one operating segment: the design, manufacture and marketing of automated blood processing systems. Haemonetics chief operating decision-maker uses consolidated results to make operating and strategic decisions. Manufacturing processes, as well as the regulatory environment in which the company operates, are largely the same for all product lines. Product and Service Segmentation The Company's principal product offerings include blood bank, surgical and plasma products. The blood bank products comprise machines and single use disposables that perform "apheresis," the separation of whole blood into its components and subsequent collection of certain components. The device used for blood component therapy is the MCS(R)+, mobile collection system. Surgical products comprise machines and single use disposables that perform intraoperative autologous transfusion ("IAT") or surgical blood salvage as it is more commonly known. Surgical blood salvage is a procedure whereby shed blood is cleansed and then returned back to a patient. The devices used to perform this are a full line of Cell Saver(R) autologous blood recovery systems. Plasma collection products are machines and disposables that, like blood bank, perform apheresis for the separation of whole blood components and subsequent collection of plasma. The device used in automated plasma collection is the PCS(R)2. Three months ended (in thousands)
December 25, 1999 Blood Bank Surgical Plasma Other Total ----------------- ---------- -------- ------ ----- ----- Revenues from external customers 29,851 16,514 21,391 3,022 70,778 January 2, 1999 --------------- Revenues from external customers 30,295 13,806 20,747 3,110 67,958 Nine months ended (in thousands) December 25, 1999 Blood Bank Surgical Plasma Other Total ----------------- ---------- -------- ------ ----- ----- Revenues from external customers 87,344 47,489 64,691 8,570 208,094 January 2, 1999 --------------- Revenues from external customers 89,550 44,801 63,346 10,044 207,741
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF CONTINUING OPERATIONS The table outlines the components of the consolidated statements of income for continuing operations as a percentage of net revenues:
Percentage of Net Revenues Percentage Incr/(decr) Three Months Ended Three Months Ended --------------------------- --------------------- Dec 25, 1999 Jan 2, 1999 FY 00/FY 99 - --------------------------------------------------------------------------------------------- Net revenues 100.0% 100.0% 4.1% Cost of goods sold 53.1 54.0 2.4 ------------------------------------------ Gross Profit 46.9 46.0 6.2 Operating Expenses: Research and development 5.4 5.8 (2.9) Selling, general and administrative 29.0 29.6 2.2 ------------------------------------------ Total operating expenses 34.4 35.4 1.4 Operating income 12.5 10.6 22.4 Interest expense (1.7) (1.5) 16.9 Interest income 1.9 1.9 8.0 Other income(expense) 0.9 (0.1) 1540.0 ------------------------------------------ Income from continuing operations before provision for income taxes 13.6 10.9 30.3 Provision for income taxes 4.4 3.8 19.1 Earnings from continuing operations 9.2% 7.1% 36.2% ==========================================
Three Months Ended December 25, 1999 Compared to Three Months Ended January 2, 1999 Net Revenue Summary - ------------------- ( in thousands) - -------------------
Percent Increase / (Decrease) By geography: ------------------------------ FY 00 FY 99 Actual dollars At constant as reported currency ---------------------------------------------------- United States $21,840 $20,586 6.1 % 6.1 % International 48,398 47,372 3.3 3.9 ------------------------------------------------ Net revenues $70,778 67,958 4.1 % 4.6 % Percent Increase / (Decrease) By product type: ------------------------------ FY 00 FY 99 Actual dollars At constant as reported currency ---------------------------------------------------- Disposables $64,685 $59,388 8.9 % 9.6 % Misc & service 3,022 3,110 (2.8) (10.1) Equipment 3,071 5,460 (43.8) (43.1) ------------------------------------------------ Net revenues $70,778 $67,958 4.1 % 4.6 % Disposables Percent Increase / (Decrease) By product line: ------------------------------ FY 00 FY 99 Actual dollars At constant as reported currency ---------------------------------------------------- Surgical $15,420 $12,274 25.6 % 24.5 % Blood bank* 28,250 26,658 6.0 7.1 Plasma 21,015 20,456 2.7 4.0 ------------------------------------------------ Disposable revenues 64,685 59,388 8.9 % 9.6 % Includes red cell disposables
Three months ended December 25, 1999 compared to three months ended January 2, 1999 Net Revenues Net revenues in fiscal year 2000 increased 4.1% to $70.8 million from $68.0 million in fiscal year 1999. With currency rates held constant, net revenues increased 4.6% for the quarter year over year. Disposable sales increased approximately 8.9% year over year at actual foreign exchange rates. With currency rates held constant, disposable sales increased 9.6%. The 9.6% increase was a result of growth in all three product lines, worldwide surgical 24.5%, worldwide blood bank 7.1% and worldwide plasma 4.0%. Constant currency sales of disposable products, excluding service and other miscellaneous revenue, accounted for approximately 92% and 88% of net revenues for fiscal year 2000 and fiscal year 1999, respectively. Service generated from equipment repairs performed under preventive maintenance contracts or emergency service billings and miscellaneous revenues accounted for approximately 4.0% and 4.7% of the Company's net revenues, at constant currency, for fiscal year 2000 and fiscal year 1999, respectively. Equipment revenues decreased approximately 43.8 % from $5.5 million in fiscal year 1999. With currency rates held constant, equipment revenues decreased 43.1% from fiscal year 1999 to fiscal year 2000. International sales as reported accounted for approximately 68% and 70% of net revenues for fiscal year 2000 and fiscal year 1999, respectively. Gross profit Gross profit of $33.2 million in fiscal year 2000 increased $2.0 million from $31.2 million fiscal year 1999. At constant currency rates gross profit, as a percent of sales, increased by 0.7% and increased in dollars by $1.9 million from fiscal year 1999 to fiscal year 2000. The $1.9 million increase was attributable to higher sales dollars in fiscal year 2000 over fiscal year 1999 and the Company's Customer Oriented Redesign for Excellence or CORE Program which contributed approximately $0.3 million in labor savings. Expenses The Company expended $3.8 million (5.4% of net revenues) on research and development in fiscal year 2000 and $3.9 million (5.8% of net revenues) in fiscal year 1999. At constant currency rates, research and development as a percent of sales decreased by 0.8% and decreased in dollars by $0.3 million from fiscal year 1999 to fiscal year 2000. Selling, general and administrative expenses increased $0.4 million to $20.5 million in fiscal year 2000 from $20.1 million in fiscal year 1999. At constant currency rates, selling, general and administrative expenses increased $0.1 million from fiscal year 1999 to fiscal year 2000 but decreased 1.0% as a percent of sales from fiscal year 1999 to fiscal year 2000. The CORE Program contributed approximately $0.3 million to reductions in distribution-related selling, general and administrative expenses. Operating Income Operating income, as a percentage of net revenues, increased 1.9 percentage points to 12.5% in fiscal year 2000 from 10.6% in fiscal year 1999. At constant currency rates, operating income, as a percent of net revenues, increased 2.6% from fiscal year 1999 or $2.1 million. The $2.1 million increase in operating income resulted primarily from gross profit improvement. Other Income and Expense Both interest expense and interest income remained relatively unchanged from fiscal year 1999 to fiscal year 2000, increasing by only $0.2 and $0.1 million respectively. Other income increased $0.6 million due primarily to increases in income earned from points on forward contracts and decreases in foreign exchange transaction losses. Taxes The provision for income taxes, as a percentage of pretax income, was reduced from 35.0% in fiscal year 1999 to 32.0% in fiscal year 2000 Contributing to the decrease in the tax rates was a decrease in the Japanese statutory tax rate, the allocation of income between jurisdictions and greater utilization of foreign sales corporation benefits. Nine months Ended December 25, 1999 Compared to Nine months Ended January 2, 1999
Percentage of Net Revenues Percentage Incr/(decr) Nine Months Ended Nine Months Ended --------------------------- --------------------- Dec 25, 1999 Jan 2, 1999 FY 00/FY 99 - --------------------------------------------------------------------------------------------- Net revenues 100.0% 100.0% 0.2% Cost of goods sold 53.1 52.4 1.6 ----------------------------------------- Gross Profit 46.9 47.6 (1.3) Operating Expenses: Research and development 5.4 5.3 1.4 Selling, general and administrative 29.7 31.5 (5.6)% ----------------------------------------- Total operating expenses 35.1 36.8 (4.6) Operating income 11.8 10.8 9.8 Interest expense (1.6) (1.5) 7.6 Interest income 1.8 1.7 9.1 Other income 0.8 0.2 274.3 ----------------------------------------- Income from continuing operations before provision for income taxes 12.8 11.2 14.7 Provision for income taxes 4.1 3.9 4.9 ----------------------------------------- Earnings from continuing operations 8.7% 7.3% 20.0%
Nine months Ended December 25, 1999 Compared to Nine Months Ended January 2, 1999 Net Revenue Summary - ------------------- ( in thousands) - -------------------
Percent Increase / (Decrease) By geography: ------------------------------------ On a comparable* FY 00 FY 99 Actual dollars basis at constant as reported currency ----------------------------------------------------------- United States $ 66,386 $ 65,008 2.1 % 4.8 % International 141,708 142,733 (0.7) 4.4 ---------------------------------------------------- Net revenues $208,094 207,741 0.2 % 4.5 % Percent Increase / (Decrease) By product type: ------------------------------------ On a comparable* FY 00 FY 99 Actual dollars basis at constant as reported currency ----------------------------------------------------------- Disposables $188,789 $183,923 2.6 % 7.5 % Misc & service 8,561 10,043 (14.8) (15.1) Equipment 10,744 13,775 (22.0) (20.8) ---------------------------------------------------- Net revenues $208,094 $207,741 0.2 % 4.5 % Disposables Percent Increase / (Decrease) By product line: ------------------------------------ On a comparable* FY 00 FY 99 Actual dollars basis at constant as reported currency ----------------------------------------------------------- Surgical $ 43,633 $ 39,783 9.7 % 13.2 % Blood bank** 82,128 81,499 0.8 6.3 Plasma 63,028 62,641 0.6 5.4 ---------------------------------------------------- Disposable revenues 188,789 183,923 2.6 % 7.5 % Comparable Basis Adjustments Adjustments made for comparison purposes only were as follows: All Profit and Loss Statement Items To make fiscal year 1999 comparable with fiscal year 2000, the additional (14th) week in Q1 of fiscal year 1999 was removed. Operating Expenses To make fiscal year 1999 comparable with fiscal year 2000, the settlement cost relating to litigation included in SG&A expenses in Q1 of fiscal year 1999 was removed. Includes red cell disposables
Net Revenues Net revenues in fiscal year 2000 increased 0.2% to $208.1 million from $207.7 million in fiscal year 1999. With currency rates held constant and reflected on a comparable basis, net revenues increased 4.5% from fiscal year 1999 to fiscal year 2000. Disposable sales increased approximately 2.6% year over year at actual foreign exchange rates. With currency rates held constant, disposable sales on a comparable basis increased 7.5%. The 7.5% increase was a result of growth in all three disposable product line sales, worldwide surgical 13.2%, worldwide blood bank 6.3% and worldwide plasma 5.4%. Constant currency sales of disposable products on a comparable basis, excluding service and other miscellaneous revenue, accounted for approximately 91% and 89% of net revenues for fiscal year 2000 and fiscal year 1999, respectively. Service generated from equipment repairs performed under preventive maintenance contracts or emergency service billings and miscellaneous revenues accounted for approximately 3.9% and 4.8% of the Company's net revenues, at constant currency, for fiscal year 2000 and fiscal year 1999, respectively. Equipment revenues decreased 22.0% from $13.8 million in fiscal year 1999. With currency rates held constant and reflected on a comparable basis, equipment revenues decreased 20.8% year over year. International sales as reported accounted for approximately 68% and 69% of net revenues for fiscal year 2000 and fiscal year 1999, respectively. Gross profit Gross profit of $97.6 million in fiscal year 2000 decreased $1.3 million from $98.9 million in fiscal year 1999. At constant currency rates and with gross profit reflected on a comparable basis, gross profit as a percent of sales increased by 0.3% and increased in dollars by $5.0 million from fiscal year 1999 to fiscal year 2000. The $5.0 million increase was attributable to higher sales dollars in fiscal year 2000 over fiscal year 1999 and the Company's Customer Oriented Redesign for Excellence or CORE Program which contributed approximately $1.4 million in labor savings. Expenses The Company expended $11.2 million (5.4% of net revenues) on research and development in fiscal year 2000 and $11.0 million (5.3% of net revenues) in fiscal year 1999. At constant currency rates and with research and development reflected on a comparable basis, research and development as a percent of sales decreased slightly by 0.3% and decreased slightly in dollars by $0.1 million from fiscal year 1999 to fiscal year 2000. Selling, general and administrative expenses were $61.8 million in fiscal year 2000, representing 29.7% of net revenues and a 1.8 percentage point reduction year over year from fiscal year 1999 to fiscal year 2000. At constant currency rates and reflected on a comparable basis, selling, general and administrative expenses increased $0.7 million, but decreased 1.0% as a percent of sales from fiscal year 1999 to fiscal year 2000. The CORE Program contributed approximately $1.3 million of savings, especially relative to prior year selling, general and administrative expenses through reductions in distribution costs. Operating Income Operating income as a percentage of net revenues increased 1.0% to 11.8% in fiscal year 2000 from 10.8% in fiscal year 1999. At constant currency rates and reflected on a comparable basis, operating income, as a percent of net revenues, increased 1.7% from fiscal year 1999 or $4.4 million. The $4.4 million increase in operating income resulted mainly from the gross profit improvement. Other Income and Expense Interest expense increased $0.2 million from fiscal year 1999 to fiscal year 2000. Interest income increased $0.3 million from fiscal year 1999 to fiscal year 2000 due to both higher average cash balances and higher average yields. Other income increased $1.2 million due primarily to increases in income earned from points on forward contracts and decreases in foreign exchange transaction losses. Taxes The provision for income taxes, as a percentage of pretax income, was lower by 3.0 % from 35.0% in fiscal year 1999 to 32.0% in fiscal year 2000. The Company expects the provision rate to remain at 32.0% for the full 12 months of fiscal 2000. Contributing to the decrease in the tax rates was a decrease in the Japanese statutory tax rate, the allocation of income between jurisdictions and greater utilization of foreign sales corporation benefits. LIQUIDITY AND CAPITAL RESOURCES The Company has satisfied its cash requirements principally from internally generated cash flow and borrowings. The Company's need for funds is derived primarily from capital expenditures, other investments, stock repurchases, new business development and working capital. During the nine months ended December 25, 1999, the Company decreased its cash balances, before the effect of exchange rates, by $9.5 million from operating, investing and financing activities which represents a decrease of $29.7 million from the $20.2 million generated by the Company's operating, investing and financing activities during the nine months ended January 2, 1999. The decrease was largely a result of $44.1 million more cash utilized by the Company's investing and financing activities, offset $14.4 million more cash provided by the Company's operating activities. Operating Activities: The Company generated $33.6 million in cash from operating activities of continuing operations in fiscal year 2000 as compared to $29.2 million generated during fiscal year 1999. The $4.4 million decrease in operating cash flow from continuing operations was a result of; a $4.9 million increase in net income adjusted for non cash items, a $0.7 million decrease in inventory as seen in the improved disposable finished goods inventory turns, a short-term sales-type lease reduction of $3.8 and a $7.4 decrease in other assets. These increased sources of cash were offset by a $2.9 million increase in accounts receivable, a $7.9 million change to the prepaid income tax account due to fiscal year 1999 refunds not recurring in fiscal year 2000 and a $1.6 million decrease in accounts payable, accrued expenses and other current liabilities. The increase in accounts receivable was attributable to condensing the quarter to 12 weeks in accordance with the Company's Y2k contingency plan. If the actual collections received in the 13th week were taken into account, the DSO was in line with that the third quarter of fiscal year 1999. During fiscal year 2000, the Company's discontinued operations utilized $10.0 million less in operating cash flows as compared to fiscal year 1999. Investing Activities The Company utilized $31.4 million in cash for investing activities from continuing operations in fiscal year 2000, an increase of $22.7 million from the $8.7 million utilized in fiscal year 1999. The $22.7 increase in investing activity during the nine months ended December 25, 1999 was due to a $15.0 million investment in Transfusion Technologies Corporation during the third quarter of fiscal year 2000, a $3.9 million increase in capital expenditures, net of retirements and disposals and $3.8 million decrease in the cash generated by long-term sales contracts. During the nine months ended December 25, 1999, discontinued operations provided $3.6 million in investing cash flows. This reflects a decrease in investing cash flows provided from discontinued operations of $11.0 as compared to the $14.6 million in cash provided during the first nine months of fiscal year 1999. Financing Activities: During the nine months ended December 25, 1999, the Company's net debt increased $26.3 million, a $53.0 million increase as compared to the nine months ended January 2, 1999. This $53.0 million increase resulted primarily from the operating and investing activities in fiscal year 2000 which provided $19.3 million less cash than in fiscal year 1999, $3.7 million less cash provided from employee stock purchase plan and stock option activity, a $0.6 million unfavorable impact of currency and the Company's repurchase in fiscal year 2000 of 1.6 million shares of common stock for its treasury for $29.4 million. Future share repurchases are dependent upon the availability of shares at acceptable price levels and compliance with restrictive convenants in the Company's financing agreements. At December 25, 1999, the Company had working capital of $134.7 million. This reflects a decrease of $27.5 million in working capital for the nine months ended December 25, 1999. The Company believes its sources of cash are adequate to meet its projected needs. RECENT ACCOUNTING PRONOUNCEMENTS In June 1998, FASB issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities." SFAS No. 133 establishes accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair value. The SFAS No. 133 requires that changes in the derivatives fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Special accounting for qualifying hedges allows a derivative's gains and losses to offset related results on the hedged item in the income statement, or in the case of a hedge of a forecasted probable transaction, a derivative's gains and losses are included in other comprehensive income until the transaction is consummated. Additionally, a company must formally document, designate, and assess the effectiveness of transactions that receive hedge accounting. SFAS No. 133 is effective for fiscal years beginning after June 15, 2000. A company may implement SFAS No. 133 as of the beginning of any fiscal quarter after issuance. SFAS No. 133 cannot be applied retroactively. The impacts of adopting SFAS No. 133 on the Company's financial statements or the timing of adoption of SFAS No. 133 have not been determined. However, it is expected that the derivative financial instruments acquired in connection with the Company's hedging program will continue to qualify for hedge accounting. Cautionary Statement Regarding Forward-Looking Information Statements contained in this report, as well as oral statements made by the Company that are prefaced with the words "may," "will," "expect," "anticipate," "continue," "estimate," "project," "intend," "designed" and similar expressions, are intended to identify forward looking statements regarding events, conditions and financial trends that may affect the Company's future plans of operations, business strategy, results of operations and financial position. These statements are based on the Company's current expectations and estimates as to prospective events and circumstances about which the Company can give no firm assurance. Further, any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made. As it is not possible to predict every new factor that may emerge, forward-looking statements should not be relied upon as a prediction of actual future financial condition or results. These forward-looking statements, like any forward-looking statements, involve risks and uncertainties that could cause actual results to differ materially from those projected or unanticipated. Such risks and uncertainties include technological advances in the medical field and the Company's ability to successfully implement products that incorporate such advances, product demand and market acceptance of the Company's products, regulatory uncertainties, the effect of economic conditions, the impact of competitive products and pricing, foreign currency exchange rates, changes in customers' ordering patterns, the effect of uncertainties in markets outside the U.S. (including Europe and Asia) in which the Company operates, and the implications of Year 2000 including but not limited to the cost and expense of updating software and hardware and any potential system interruptions. The foregoing list should not be construed as exhaustive. Year 2000 Costs Haemonetics made the transition to the calendar year 2000 without "Year 2000" interruptions. Throughout the approximately $3 million year 2000 project, the Company replaced or upgraded over 700 PCs and other computers, telecommunication systems around the world and added back-up capabilities. In addition, a complete inventory of computer software was developed. Over 35% of the software applications were upgraded, remediated, or retired. Several non-information technology functions were also improved including manufacturing facilities and customer support areas. The Company also took this opportunity to leverage Year 2000 contingency planning activities into disaster recovery plans for locations around the world. Risks The Company continues to evaluate the risks associated with potential delayed impact Year 2000 related failures. The failure to correct a material Year 2000 problem could result in an interruption in, or a failure of, certain normal business activities or operations. Such failures could materially and adversely affect the Company's business, financial condition, and results of operations. Due to the general uncertainty inherent in the Year 2000 problem, resulting in part from the uncertainty of the Year 2000 readiness of third-parties, the Company is unable to determine at this time whether the consequences of Year 2000 failures will have a material impact on the Company's business, financial condition, and results of operations. The Company's Year 2000 project has significantly reduced the Company's level of uncertainty about the Year 2000 problem and, in particular, about the Year 2000 compliance and readiness of its critical vendors. The Company believes that, with the implementation of new business systems and completion of the Company's Year 2000 project as scheduled, the possibility of significant interruptions of normal operations has been reduced. Euro Currency Effective January 1, 1999, 11 of the 15 countries in the European Union (Austria, Belgium, Finland, France, Germany, Holland, Ireland, Italy, Luxembourg, Portugal and Spain) adopted a single currency known as the Euro. For the next three years, these countries will be allowed to transact business in both the Euro and in their own currencies at fixed exchange rates. Beginning on July 1, 2002, the Euro will become the only currency for these 11 countries. Operations in Europe The introduction of the Euro may have a significant impact on the Company's operations. The Company has 10 subsidiaries located throughout Europe, that generate one-third of its sales. State of Readiness The Company has formed a Euro Steering Committee (the "Committee") to address all issues related to the Euro. This Committee is now preparing a detailed action plan which will cover all areas of concern including information systems, finance, tax, treasury, legal, marketing and human resources. As a part of the detailed action plan, a comprehensive questionnaire was distributed to all of the Company's European subsidiaries to gain a better understanding of the impact of the Euro currency in each location. Currently, the responses to the questionnaires are being analyzed and specific action plans are being developed for each subsidiary. Date of conversion The target date for conversion of the Company's local and corporate information systems to the Euro is April 2, 2001, which is the first day of the Company's fiscal year 2002. Business activities Although the introduction of the Euro will likely result in greater transparency of pricing throughout Europe, it is anticipated that these changes will have little impact on Haemonetics. The Company's products are heavily regulated by organizations specific to each country and as a result, transactions between countries are infrequent. Information systems The Company is continuing to gain a more complete view of the impact of the Euro conversion on its information systems. The Company realizes it will create technical challenges to adapt information technology and other systems to accommodate Euro-denominated transactions. The Committee is in the process of identifying all systems and determining their state of Euro readiness. The cost of adapting these systems is not yet known, but the Company does not believe it to be significant. All systems will be tested during the first two quarters of Fiscal Year 2001. Accounting, Finance & Treasury At the point the Company adopts the Euro, it expects to experience the benefits of simplified hedging, banking and financial transaction systems. The Corporate local currency bank accounts have been consolidated to a single Euro account. Each subsidiary will maintain bank accounts, which are capable of processing transactions in both the local currency and the Euro. The transactions between the local currency accounts and Euro accounts throughout Europe do not result in any additional expense for the company. Tax It is expected that some of the European countries will allow costs related to the introduction of the Euro to be fully deductible. Additionally, it is anticipated that most countries will allow tax relief by means of a one-time depreciation or amortization charge related to assets utilized in the Euro conversion. Legal The EU has adopted regulations precluding a party from using the Euro conversion as the reason for breaching or changing its contractual obligations, unless the other parties to the contract are in agreement. The Company is now in the process of identifying any contracts between the Company and parties outside the USA, which fall under these regulations. At this point, the Company is not aware of substantial risk related to such contracts. The conversion to Euro on April 2, 2001 will result in the conversion of the share capital of the 6 subsidiaries within the EMU. The amount of the converted share capital must be modified in order to eliminate uneven amounts and decimals resulting from the conversion. The Committee has identified the new amounts of the share capital per the requested minimum capital requirements issued by the EU. The Committee is currently in the process of coordinating all activities related to these changes such as meetings of the subsidiary board of directors, shareholder meetings, changes in by-laws and defining the appropriate accounting transactions. The Company anticipates that all required changes will be completed during fiscal year 2001. The Company does not anticipate material exposure resulting from the share capital conversion. Human Resources The Committee has decided not to rewrite the existing employee contracts in subsidiaries located in the EMU, but rather, to give a letter to each employee which will form an integrated part of the existing employee contract. This letter will indicate the salary amount in Euro, as well as provide general information about the Euro. The effective date of this letter will be April 2, 2001. An Euro contact person responsible for organizing regular employee updates and for communicating the company-wide progress of the Euro implementation has been identified at each European subsidiary. Costs Although the total cost of the Euro conversion has not yet been quantified, the Company does not believe that the total cost will be significant or have a material impact on its business, results of operations, financial position or cash flows. Item 3. Quantitative and Qualitative Disclosures About Market Risk The Company's exposures relative to market risk are due to foreign exchange risk and interest rate risk. Foreign exchange risk Over two-thirds of the Company's revenues are generated outside the U.S. yet the Company's reporting currency is the U.S. dollar. Foreign exchange risk arises because the Company engages in business in foreign countries in local currency. Exposure is partially mitigated by producing and sourcing product in local currency. Accordingly, whenever the US dollar strengthens relative to the other major currencies, there is an adverse affect on the Company's results of operations and alternatively, whenever the U.S. dollar weakness relative to the other major currencies, there is a positive effect on the Company's results of operations. It is the Company's policy to minimize for a period of time, the unforeseen impact on its results of operations of fluctuations in foreign exchange rates by using derivative financial instruments known as forward contracts to hedge the majority of its firm sales commitments to customers that are denominated in foreign currencies. The Company also enters into forward contracts that settle within 35 days to hedge certain intercompany receivables denominated in foreign currencies. Actual gains and losses on all forward contracts are recorded in operations, offsetting the gains and losses on the underlying transactions being hedged. These derivative financial instruments are not used for trading purposes. The Company's primary foreign currency exposures in relation to the U.S. dollar are the Japanese Yen and the Euro equivalent of the French Franc, Deutsche Mark and Italian Lire. The Company has the following significant foreign exchange contracts to hedge certain firm sales commitments denominated in foreign currency outstanding:
Hedged (BUY) / SELL Weighted Forward US$ @ Unrealized Currency Local Currency Contract Rate Forward Rate Gain / (Loss) Maturity - ------------------------------------------------------------------------------------------------------ Euro Equivalent 7,500,000 $1.146 $ 7,617,200 $ 974,050 Jan-Mar 2000 Euro Equivalent 7,500,000 $1.054 $ 7,666,050 $ 240,100 Apr-Jun 2000 Euro Equivalent 7,200,000 $1.077 $ 7,406,600 $ 350,560 Jul-Sep 2000 Euro Equivalent 7,500,000 $1.108 $ 7,764,650 $ 542,850 Oct-Dec 2000 Japanese Yen 1,670,000,000 125.4 per US$ $16,424,539 $(3,110,725) Jan-Mar 2000 Japanese Yen 1,850,000,000 117.3 per US$ $18,453,408 $(2,678,928) Apr-Jun 2000 Japanese Yen 1,975,000,000 111.9 per US$ $20,016,763 $(2,368,147) Jul-Sep 2000 Japanese Yen 2,075,000,000 99.7 per US$ $21,376,225 $ (555,363) Oct-Dec 2000 Includes forward points.
The Company estimated the change in the fair value of all forward contracts assuming both a 10% strengthening and weakening of the U.S. dollar relative to all other major currencies. In the event of a 10% strengthening of the U.S. dollar, the fair value of all forward contracts would increase by $8.1 million. Assuming a 10% weakening of the U.S. dollar relative to all other major currencies, the fair value of all forward contracts would decrease by $9.2 million. Interest Rate Risk Approximately 91%, of the Company's long-term debt is at fixed rates. Accordingly, a change in interest rates has an insignificant effect on the Company's interest expense amounts. The fair value of the Company's long- term debt however would change in response to interest rates movements due to its fixed rate nature. At December 25, 1999, the fair value of the Company's long-term debt was approximately equivalent to the value of the debt reflected on the Company's financial statements. Approximately 88% of the Company's outstanding long-term borrowing is represented by the $40 million in 7.05% fixed rate senior notes at December 25, 1999. Using scenario analysis, the Company changed the interest rate on all long-term maturities by 10% from the rate levels, which existed at December 25, 1999. The effect was a change in the fair value of the Company's long- term debt, of approximately $1.6 million. PART II - OTHER INFORMATION Item 1. Legal Proceedings ----------------- Not applicable. Item 2. Changes in Securities --------------------- Not applicable. Item 3. Defaults upon Senior Securities ------------------------------- Not applicable. Item 4. Submission of Matters to a Vote of Security Holders --------------------------------------------------- None Item 5. Other Information ----------------- None Item 6. Exhibits and Reports on Form 8-K. --------------------------------- (a). Exhibits The following exhibits will be filed as part of this form 10-Q: Exhibit 27 Financial Data Schedule (b). Reports on Form 8-K. none 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 thereunto duly authorized. HAEMONETICS CORPORATION Date: February 2, 2000 By: s/ James L. Peterson -------------------- James L. Peterson, President and Chief Executive Officer Date: February 2, 2000 By: s/ Ronald J. Ryan ------------------ Ronald J. Ryan, Sr. Vice President and Chief Financial Officer, (Principal Accounting Officer) EX-27.1 2 ART. 5 FDS FOR THIRD QUARTER 10-Q
5 9-MOS APR-01-2000 DEC-25-1999 46,525 0 73,113 1,073 59,245 225,173 184,026 100,970 361,870 90,472 45,410 0 0 298 211,778 361,870 208,094 208,094 110,461 110,461 11,197 0 3,296 26,608 8,514 18,094 144 0 0 18,238 0.69 0.69
EX-27.2 3 RESTATED ART. 5 FOR THIRD QUARTER 10-Q
5 9-MOS APR-03-1999 JAN-02-1999 42,253 0 66,034 765 64,045 217,367 179,753 96,219 353,237 65,425 51,642 0 0 297 221,449 353,237 207,741 207,741 108,779 108,779 11,035 0 3,062 23,193 8,118 15,075 (95) 0 0 14,980 0.56 0.56
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