-----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, IrHseCO6CLxXV4cUw8hAjiPaMEY+qBD2MzX4AM2haCDCIE3xSpj0uIJsmbkKXeQr NJ8t11RSWMV/ED5h+Ext4w== 0000914190-98-000426.txt : 19981120 0000914190-98-000426.hdr.sgml : 19981120 ACCESSION NUMBER: 0000914190-98-000426 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981117 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19981119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEDTRONIC INC CENTRAL INDEX KEY: 0000064670 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 410793183 STATE OF INCORPORATION: MN FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-07707 FILM NUMBER: 98755329 BUSINESS ADDRESS: STREET 1: 7000 CENTRAL AVE NE STREET 2: MS 316 CITY: MINNEAPOLIS STATE: MN ZIP: 55432 BUSINESS PHONE: 6125744000 8-K 1 FORM 8-K FILING PRESS RELEASE 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): November 17, 1998 Medtronic, Inc. (Exact name of Registrant as Specified in its Charter) Minnesota (State or Other Jurisdiction of Incorporation) 1-7707 41-0793183 (Commission File Number) (IRS Employer Identification No.) 7000 Central Avenue N.E. Minneapolis, Minnesota 55432-3576 (Address of Principal Executive Offices and Zip Code) (612) 514-4000 (Registrant's telephone number, including area code) Not Applicable (Former Name or Former Address, if Changed Since Last Report) Item 5. Other Events On November 17, 1998, the Registrant issued a press release relating to second-quarter earnings. The full text of the press release is set forth in Exhibit 99 which is attached hereto and incorporated in this Report as if fully set forth herein. Item 7. Financial Statements and Exhibits Exhibit 99 Press release dated November 17, 1998. 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. MEDTRONIC, INC. By /s/ Robert L. Ryan Date: November 19, 1998 Robert L. Ryan Senior Vice President and Chief Financial officer EXHIBIT INDEX Medtronic, Inc. Form 8-K Current Report Dated November 19, 1998 Exhibit Number Description 99 Press release dated November 17, 1998 EX-99 2 PRESS RELEASE DATED NOVEMBER 17, 1998 Exhibit 99 Contacts: Chris O'Connell Investor Relations 612/514-4971 Jessica Stoltenberg Public Relations 612/514-3333 F O R I M M E D I A T E R E L E A S E ACCELERATING DEFIBRILLATOR, NEUROLOGICAL SALES DRIVE QUARTERLY EARNINGS GAIN FOR MEDTRONIC MINNEAPOLIS, MN, November 17, 1998 -- Citing particularly strong sales performance in implantable cardiac defibrillators and neurological devices, Medtronic, Inc. (NYSE: MDT) announced today that quarterly earnings for the period ended October 30, 1998, increased 9.8 percent to $159.1 million and diluted earnings per share increased 10.0 percent to $0.33 before one-time transaction charges related to the merger with Physio-Control International Corporation. Quarterly revenues of $728.4 million increased 6.8 percent over the year earlier on a constant currency basis. Foreign exchange negatively affected revenues by $4.3 million, bringing the reported revenue gain to 6.2 percent. Prior year financial results are restated to reflect the results from Physio-Control, accounted for as a pooling of interests. William W. George, chairman and chief executive officer, credited accelerating sales in two of the company's fastest-growing product lines, Cardiac Rhythm Management and Neurological and noted that products and platforms are now in place to build exceptionally strong growth momentum over the next several quarters. "We are rapidly gaining market share on a worldwide basis with the introduction of the GEM DR and GEM implantable defibrillators, and have established market leadership internationally with about 50 percent of the market." George also noted that the launch of the GEM DR in the U.S. in early October signaled a major inflection point for Medtronic's tachyarrhythmia product line. "Although selling for only three weeks this quarter, the GEM DR sparked a significant surge, propelling U.S. tachyarrhythmia revenues to a sequential increase of more than 10 percent." Worldwide sales of tachyarrhythmia management products increased 17 percent, led by international growth of 45 percent. Worldwide revenue and unit sales of bradycardia pacemakers rose five percent, with the Medtronic.Kappa 700 pacemakers making solid gains in the European market. "The U.S. Bradycardia business is poised for accelerated growth with the pending FDA clearance of the Kappa 700," George said. Medtronic Physio-Control, the world's leading provider of external defibrillators, made a meaningful contribution to the quarter, growing in excess of 20 percent. "Medtronic Neurological again headlined revenue growth with greater than 30 percent growth in its core neurostimulation and drug delivery product lines," George said. Neurological's 28 percent growth was led by sales of neurostimulation devices for pain, tremor and incontinence, which were up nearly 35 percent, and a 30 percent increase for implantable drug delivery systems. Going forward, Medtronic Neurological expects to benefit from two new acquisitions -- Medtronic Midas Rex, which closed late October, and Sofamor Danek Group, Inc., when that transaction is closed. "Combined with Sofamor Danek, Medtronic Neurological will be a $1 billion enterprise next year and will continue to build on its franchise position in advanced technologies and therapies for the treatment of neurological and spinal disorders," George said. Medtronic Cardiac Surgery recorded an increase in sales of more than 5 percent, primarily on the strength of prosthetic heart valves. Total valve sales increased more than 10 percent over the prior year, with better-than-20 percent growth in tissue valves. In addition, the acquisition of AVECOR Cardiovascular Inc., is proceeding and is expected to enhance the Perfusion Systems product line once closed. Medtronic Vascular revenues declined significantly in the quarter due to strong competitive pressures in the worldwide coronary balloon angioplasty and stent markets. Including the effects of a $21.1 million pre-tax one-time transaction-related charge associated with the closing of Physio-Control, Medtronic reported net earnings of $145.0 million or $0.30 a share. Earnings for the first half of Fiscal 1999 were $313.5 million ($0.64 per share), an increase of 6.5 percent, before the one-time transaction related charges. Revenues were $1,434.1 million, compared with sales of $1,377.5 million in the comparable prior period. Medtronic, Inc., headquartered in Minneapolis, is the world's leading medical technology company specializing in implantable and interventional therapies. Its Internet address is www.medtronic.com. - 0 - Any statements made regarding the company's anticipated financial results and regulatory approvals are forward-looking statements subject to risks and uncertainties, such as those described in the company's Annual Report on Form 10K for the year ended April 30, 1998. Actual results may differ materially from anticipated results. (tabulation follows)
MEDTRONIC, INC. CONSOLIDATED STATEMENT OF EARNINGS (Unaudited) (in thousands, except per share data) Three Three Six Six months ended months ended months ended months ended Oct. 30, 1998 Oct.31, 1997 Oct. 30, 1998 Oct.31, 1997 -------------------------------- ------------ --------------------------------- ------------ Before One-Time Before One-Time One-Time Transaction Related One-Time Transaction Related Charges Charges Reported Charges Charges Reported -------------------------------- --------------------------------- Net sales $ 728,405 $ 728,405 $ 686,218 $ 1,434,060 $ 1,434,060 $1,377,508 Costs and expenses: Cost of products sold 206,137 206,137 182,007 402,085 402,085 364,127 Research and development expense 80,750 80,750 76,239 160,048 160,048 151,820 Selling, general, and administrative expense 210,228 210,228 209,707 413,196 413,196 417,777 Non-recurring charges 0 21,101 21,101 0 0 21,101 21,101 0 Interest expense 2,960 2,960 2,310 5,222 5,222 4,661 Interest income (10,167) (10,167) (5,263) (17,163) (17,163) (10,331) --------- ---------- --------- --------- ----------- ---------- ----------- --------- Total costs and expenses 489,908 21,101 511,009 465,000 963,388 21,101 984,489 928,054 --------- ---------- --------- --------- ----------- ---------- ----------- ---------- Earnings before income taxes 238,497 (21,101) 217,396 221,218 470,672 (21,101) 449,571 449,454 Provision for income taxes 79,426 (7,069) 72,357 76,330 157,205 (7,069) 150,136 155,095 --------- ---------- --------- --------- ----------- ---------- ----------- ---------- Net earnings $ 159,071 $ (14,032) $145,039 $144,888 $ 313,467 $ (14,032) $ 299,435 $ 294,359 ========= ========== ========= ========= =========== ========== =========== ========== Weighted average shares outstanding 480,937 480,937 480,937 477,099 479,553 479,553 479,553 476,872 Basic earnings per share $ 0.33 $ (0.03) $ 0.30 $ 0.30 $ 0.65 $ (0.03) $ 0.62 $ 0.62 ========= ========== ========= ========= =========== ========== =========== ========== Earnings per share assuming dilution $ 0.33 $ (0.03) $ 0.30 $ 0.30 $ 0.64 $ (0.03) $ 0.61 $ 0.61 ========= ========== ========= ========= =========== ========== =========== ========== Weighted average shares outstanding assuming dilution 488,222 488,222 488,222 485,499 486,909 486,909 486,909 484,847
Note: The first quarter of FY99 and the prior year FY98 amounts have been restated to reflect the September 1998 acquisition of Physio-Control International Corporation which was accounted for as a pooling-of-interests. -----END PRIVACY-ENHANCED MESSAGE-----