-----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, WzkxGcpf1Z/UY7ai1gvGmFyLEtsO9Rb4YVNNkNcoWr7IyozpNmtPALIRRrFjpXkX CejUgLhVuggE91eJe4Jlyg== 0001275287-05-002817.txt : 20050728 0001275287-05-002817.hdr.sgml : 20050728 20050728082616 ACCESSION NUMBER: 0001275287-05-002817 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050728 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050728 DATE AS OF CHANGE: 20050728 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: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14041 FILM NUMBER: 05979081 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 hc3187.txt ================================================================================ 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 28, 2005 HAEMONETICS CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) Massachusetts 1-10730 04-2882273 ---------------------------- ------------ ------------------- (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 400 Wood Road 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.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION On July 28, 2005 Haemonetics Corporation (the "Company") issued a press release announcing financial results for the first quarter ended July 2, 2005. 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. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 99.1: Press Release of Haemonetics Corporation dated July 28, 2005. 2 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. HAEMONETICS CORPORATION ----------------------- (Registrant) Date: July 28, 2005 /s/ RONALD J. RYAN ----------------------- Ronald J. Ryan, Vice President and Chief Financial Officer 3 99.1 Press Release issued by Haemonetics Corporation on July 28, 2005 4 EX-99.1 2 hc3187ex991.txt Exhibit 99.1 HAEMONETICS REPORTS FIRST QUARTER FISCAL YEAR 2006 EARNINGS BRAINTREE, Mass., July 28 /PRNewswire-FirstCall/ -- Haemonetics Corporation (NYSE: HAE) reported today first quarter fiscal year 2006 net revenue of $103.2 million, a 9.1% increase over first quarter of fiscal year 2005. Diluted net earnings per share for the quarter were $0.47, up 23.3% over Q1:05. Brad Nutter, Haemonetics President and CEO, said, "The solid first quarter results reflect balanced growth in each of our core product lines, with our newer red cell and OrthoPAT product lines growing at about 30%. Our results in the quarter also benefited from the positive impact of currency exchange rates. As a result, we continue to be confident that for the full year, we will meet our target revenue growth of 11-13%, operating income growth of approximately 20%, operating margin in excess of 16% and diluted net earnings per share in the range of $1.73 to $1.83." The Company's first quarter disposables revenues by product line were: % Inc Product Line Revenue over Q1:05 --------------------------- --------------- ---------- Plasma $27.3 million 7.1% Blood Bank $32.7 million 6.2% Red Cells $8.5 million 30.9% Patient $22.7 million 9.2% FINANCIAL HIGHLIGHTS Haemonetics reported the following additional financial results: P&L Highlights Change from 7/2/05 7/3/04 prior year -------- -------- ------------ Net revenue $ 103.2 $ 94.6 +9.1% Gross profit $ 54.5 $ 47.1 +15.8% Operating expenses $ 36.0 $ 32.1 +12.1% Operating income $ 18.5 $ 15.0 +23.6% Diluted net earnings per share $ 0.47 $ 0.38 +23.3% Gross margin 52.8% 49.8% +300 bp Operating margin 17.9% 15.8% +210 bp In addition to currency, two other factors affected the Company's net income. Higher short-term interest rates affected net income favorably, and a higher tax rate impacted net income negatively. The tax rate for the quarter increased to 36% versus 32% in Q1:05 (when the Company had received a one-time $600,000 income tax benefit in the quarter in Japan). Balance Sheet Highlights Haemonetics achieved an increase in cash and short term investments on the balance sheet of $12.3 million over Q4:05 for a first quarter end cash balance of $198.1 million. The Company also generated $11.8 million in cash flow from operating activities for the quarter. Haemonetics will post detailed information on the positive effects of currency and the Company's annual guidance on the web at http://www.haemonetics.com/site/content/investor/fin_history.asp. DONOR PRODUCT LINE HIGHLIGHTS Plasma disposables revenue was $27.3 million for the quarter, up 7.1% from Q1:05. In the quarter, the Company successfully completed the first phase of a two part plan to convert 55 plasma collection centers owned by ZLB Plasma Services ("ZLB") to utilize Haemonetics' technology. Plasma disposable revenue in the quarter benefited from the additional disposables sales to ZLB as well as from disposables unit growth in the rebounding U.S. market. Blood bank revenue was $32.7 million for the quarter, up 6.2% over Q1:05. Currency and strong disposables revenue growth in Asian markets, exclusive of Japan, contributed to the blood bank revenue growth. Red cell disposables revenue was $8.5 million for the quarter, up 30.9% over Q1:05. Unit growth in the U.S. was a key driver of red cell disposables revenue growth as the U.S. continues to outpace other markets in converting to automated red cell collection. PATIENT PRODUCT LINE HIGHLIGHTS Disposables revenue for the Patient family of products was $22.7 million for the quarter, up 9.2% over Q1:05. Patient product growth was driven by OrthoPAT(R) brand disposables revenue which was $5.6 million for the quarter, up 28.3% over Q1:05. The Cell Saver(R) 5+, a new product launched worldwide in Q4:05, contributed to strong equipment sales for the Patient Division in the first quarter. CORPORATE UPDATE Haemonetics continues to make progress with new products, but announced that launch of the CritScan(R) is currently delayed until later in the year. The Company is addressing issues with the device not performing to quality standards in initial customer trials. Additionally, while the cardioPAT(TM) surgical blood salvage system launched on time, Haemonetics announced today that it is voluntarily recalling the 30 devices at customer trial sites. The Company discovered a potential problem with a valve on the disposable. Customers continue to affirm the value of this new device for their patients, and Haemonetics expects to resume marketing the device by early calendar year 2006. All other new product launches remain on track and on budget. Finally, a highlight for the quarter was the award of $27.8 million in damages, plus attorney's fees and other costs, by an arbitration panel to Haemonetics on its breach of contract claim against Baxter Healthcare Corporation. The Company expects to receive the payment by the end of the calendar year.(1) CONFERENCE CALL Haemonetics will hold a conference call on Thursday, July 28th at 10:00 am eastern to review the financial and operational performance of the quarter. Interested parties can participate by calling (800) 322-0079 (US only) or (973) 935-2100. The call will be replayed through August 12th at (877) 519- 4471 (US only) or (973) 341-3080 using PIN 6230156. INVESTOR CONFERENCE Brad Nutter will be presenting at the Adams Harkness 25th Annual Summer Seminar in Boston on August 2, 2005. 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. (1) For more information on this arbitration and decision, see Haemonetics' press release of May 25, 2005 at http://www.haemonetics.com/site/content/km/news_198.asp. 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. CONTACT: Julie Fallon Tel. (781) 356-9517 Alternate Tel. (617) 320-2401 fallon@haemonetics.com HAEMONETICS CORPORATION FINANCIAL SUMMARY FOR FIRST QUARTER FYE06 (UNAUDITED DATA IN THOUSANDS, EXCEPT PER SHARE DATA) CONSOLIDATED STATEMENTS OF INCOME
% Inc/(Dec) vs prior 07/02/05 07/03/04 year ------------ ------------ ------------ NET REVENUES $ 103,173 $ 94,602 9.1 Gross profit 54,524 47,100 15.8 R&D 5,541 4,054 36.7 S, G & A 30,488 28,084 8.6 Operating expenses 36,029 32,138 12.1 Operating income 18,495 14,962 23.6 Interest expense (541) (661) (18.2) Interest income 1,313 363 261.7 Other income/(expense), net 864 (232) (472.4) Income before taxes 20,131 14,432 39.5 Tax expense 7,247 4,612 57.1 NET INCOME $ 12,884 $ 9,820 31.2 Net income per common share assuming dilution $ 0.47 $ 0.38 23.3 Weighted average number of shares Basic 26,280 25,155 Diluted 27,209 25,579 Inc/(Dec) vs prior year profit PROFIT MARGINS margin % - --------------------------------------------- ------------ ------------ ------------ Gross profit 52.8% 49.8% 3.0 R&D 5.4% 4.3% S, G & A 29.6% 29.7% Operating income 17.9% 15.8% 2.1 Income before taxes 19.5% 15.3% 4.2 Net income 12.5% 10.4% REVENUE ANALYSIS 07/02/05 07/03/04 % Inc/(Dec) ------------ ------------ ------------ Revenues by Geography United States $ 38,223 $ 32,907 16.2 International 64,950 61,695 5.3 Net Revenues $ 103,173 $ 94,602 9.1 Disposable Revenues by Product Family Donor: Plasma $ 27,303 $ 25,486 7.1 Blood Bank 32,690 30,769 6.2 Red Cell 8,455 6,461 30.9 $ 68,448 $ 62,716 9.1 Patient: Surgical $ 22,685 $ 20,773 9.2 Subtotal $ 91,133 $ 83,489 9.2 Equipment $ 6,111 $ 6,673 (8.4) Misc & Service 5,929 4,440 33.5 Net Revenues $ 103,173 $ 94,602 9.1
CONSOLIDATED BALANCE SHEETS
Period ending Period ending ---------------------- ---------------------- 07/02/05 04/02/05 07/02/05 04/02/05 ---------- ---------- ---------- --------- Assets Liabilities & Stockholders' Equity S/T debt & Cash & cash current equivalents $ 198,067 $ 185,815 maturities $ 26,258 $ 26,612 Accounts Other current receivable, net 83,625 80,719 liabilities 62,885 61,310 Inventories, net 55,998 53,088 Total current liabilities 89,143 87,922 Other current assets 27,175 23,989 Long-term debt 19,101 19,231 Total current Other long-term assets 364,865 343,611 liabilities 5,049 5,469 Net PP&E 67,910 69,337 Other assets 53,087 54,809 Stockholders' equity 372,569 355,135 TOTAL LIABILITIES & TOTAL ASSETS $ 485,862 $ 467,757 EQUITY $ 485,862 $ 467,757
SOURCE Haemonetics Corporation -0- 07/28/2005 /CONTACT: Julie Fallon, +1-781-356-9517, Alternate Tel. +1-617-320-2401, fallon@haemonetics.com/ /Web site: http://www.haemonetics.com/ -----END PRIVACY-ENHANCED MESSAGE-----