Texas
|
0001-09913
|
74-1891727
|
||
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
||
|
||||
8023 Vantage Drive
San Antonio, Texas
|
78230
|
|||
(Address of principal executive offices)
|
(Zip Code)
|
¨
|
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))
|
Exhibit No.
|
Description
|
99.1
|
Press Release dated July 26, 2011, entitled "Kinetic Concepts Reports Second Quarter and First Half 2011 Financial Results."
|
KINETIC CONCEPTS, INC.
(REGISTRANT)
|
|||
July 26, 2011
|
By:
|
/s/ Martin J. Landon
|
|
Name:
|
Martin J. Landon
|
||
Title:
|
Executive Vice President and Chief Financial Officer
|
Exhibit No.
|
Description
|
99.1
|
Press Release dated July 26, 2011, entitled "Kinetic Concepts Reports Second Quarter and First Half 2011 Financial Results."
|
Investors:
Todd Wyatt
Office: 210-255-6157
Wireless: 210-347-3540
todd.wyatt@kci1.com
|
Media:
Kevin Belgrade
Office: 210-255-6232
Wireless: 210-216-1236
kevin.belgrade@kci1.com
|
|
- Worldwide revenue of $519.8 million, up 4% from the prior-year period, as reported, and up 1% on a constant currency basis
|
|
- Worldwide Active Healing Solutions™ (“AHS”) revenue of $358.0 million, up 3% from $347.7 million in the prior-year period, as reported, and comparable to the prior-year period on a constant currency basis
|
|
- Worldwide LifeCell™ revenue of $96.3 million, up 15% from the prior-year period on both a reported and constant currency basis
|
|
- Worldwide Therapeutic Support Systems (“TSS”) revenue of $65.5 million, down 1% from $66.3 million in the prior-year period, as reported, and down 6% on a constant currency basis
|
|
- Net earnings per diluted share of $1.09, up 45% from the prior-year period, as reported, and up 22% on an adjusted non-GAAP basis
|
% Change
|
|||||
FY 2010
|
FY 2011
|
from 2010
|
|||
Total revenue
|
$ 2,018 | $ 2,050 – $ 2,090 | 2% – 4% | ||
Diluted EPS – GAAP basis
|
$ 3.57 | $ 4.35 – $ 4.45 | 22% – 25% | ||
Acquisition-related adjustments:
|
|||||
Amortization-related adjustments
|
0.43 | 0.35 | |||
Non-cash interest – accounting
|
|||||
for convertible debt
|
0.18 | 0.19 | |||
Restructuring and other charges
|
0.11 | 0.07 – 0.09 | |||
Adjusted Diluted EPS – non-GAAP basis
|
$ 4.29 | $ 4.96 – $ 5.08 | 16% – 18% | ||
Diluted weighted average shares outstanding
|
71.7 | 73.5 – 74.5 | 3% – 4% |
Domestic Dial-in Number:
|
877-537-8066
|
|
International Dial-in Number:
|
+706-758-3983
|
|
Conference ID Number:
|
83431776
|
KINETIC CONCEPTS, INC. AND SUBSIDIARIES
|
|||||||||||||||||||||
Condensed Consolidated Statements of Earnings
|
|||||||||||||||||||||
(in thousands, except per share data)
|
|||||||||||||||||||||
(unaudited)
|
|||||||||||||||||||||
Three months ended June 30,
|
Six months ended June 30,
|
||||||||||||||||||||
%
|
%
|
||||||||||||||||||||
2011
|
2010
|
Change
|
2011
|
2010
|
Change
|
||||||||||||||||
Revenue:
|
|||||||||||||||||||||
Rental
|
$ | 279,314 | $ | 283,084 | (1.3 | )% | $ | 558,014 | $ | 563,075 | (0.9 | )% | |||||||||
Sales
|
240,516 | 214,688 | 12.0 | 463,000 | 420,502 | 10.1 | |||||||||||||||
Total revenue
|
519,830 | 497,772 | 4.4 | 1,021,014 | 983,577 | 3.8 | |||||||||||||||
Rental expenses
|
146,353 | 155,622 | (6.0 | ) | 296,845 | 308,841 | (3.9 | ) | |||||||||||||
Cost of sales
|
60,418 | 62,307 | (3.0 | ) | 122,137 | 123,231 | (0.9 | ) | |||||||||||||
Gross profit
|
313,059 | 279,843 | 11.9 | 602,032 | 551,505 | 9.2 | |||||||||||||||
Selling, general and administrative expenses
|
152,155 | 147,212 | 3.4 | 296,522 | 282,591 | 4.9 | |||||||||||||||
Research and development expenses
|
23,411 | 21,718 | 7.8 | 44,594 | 46,502 | (4.1 | ) | ||||||||||||||
Acquired intangible asset amortization
|
8,856 | 9,556 | (7.3 | ) | 17,712 | 19,715 | (10.2 | ) | |||||||||||||
Operating earnings
|
128,637 | 101,357 | 26.9 | 243,204 | 202,697 | 20.0 | |||||||||||||||
Interest income and other
|
267 | 143 | 86.7 | 469 | 279 | 68.1 | |||||||||||||||
Interest expense
|
(17,157 | ) | (22,264 | ) | (22.9 | ) | (37,997 | ) | (45,826 | ) | (17.1 | ) | |||||||||
Foreign currency loss
|
(206 | ) | (2,657 | ) | (92.2 | ) | (25 | ) | (5,267 | ) | (99.5 | ) | |||||||||
Earnings before income taxes
|
111,541 | 76,579 | 45.7 | 205,651 | 151,883 | 35.4 | |||||||||||||||
Income taxes
|
30,116 | 22,974 | 31.1 | 55,808 | 45,565 | 22.5 | |||||||||||||||
Net earnings
|
$ | 81,425 | $ | 53,605 | 51.9 | % | $ | 149,843 | $ | 106,318 | 40.9 | % | |||||||||
Net earnings per share:
|
|||||||||||||||||||||
Basic
|
$ | 1.13 | $ | 0.76 | 48.7 | % | $ | 2.09 | $ | 1.50 | 39.3 | % | |||||||||
Diluted
|
$ | 1.09 | $ | 0.75 | 45.3 | % | $ | 2.04 | $ | 1.48 | 37.8 | % | |||||||||
Weighted average shares outstanding:
|
|||||||||||||||||||||
Basic
|
72,128 | 70,836 | 71,748 | 70,678 | |||||||||||||||||
Diluted
|
74,882 | 71,805 | 73,420 | 71,657 | |||||||||||||||||
KINETIC CONCEPTS, INC. AND SUBSIDIARIES
|
||||||||
Condensed Consolidated Balance Sheets
|
||||||||
(in thousands)
|
||||||||
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
(unaudited)
|
||||||||
Assets:
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 498,424 | $ | 316,603 | ||||
Accounts receivable, net
|
411,095 | 414,083 | ||||||
Inventories, net
|
168,647 | 172,552 | ||||||
Deferred income taxes
|
29,065 | 30,112 | ||||||
Prepaid expenses and other
|
47,738 | 34,199 | ||||||
Total current assets
|
1,154,969 | 967,549 | ||||||
Net property, plant and equipment
|
299,332 | 271,063 | ||||||
Debt issuance costs, net
|
30,691 | 22,622 | ||||||
Deferred income taxes
|
20,597 | 17,151 | ||||||
Goodwill
|
1,328,881 | 1,328,881 | ||||||
Identifiable intangible assets, net
|
443,922 | 453,802 | ||||||
Other non-current assets
|
15,537 | 14,931 | ||||||
$ | 3,293,929 | $ | 3,075,999 | |||||
Liabilities and Shareholders' Equity:
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 51,227 | $ | 60,137 | ||||
Accrued expenses and other
|
241,628 | 225,524 | ||||||
Current installments of long-term debt
|
27,500 | 169,500 | ||||||
Total current liabilities
|
320,355 | 455,161 | ||||||
Long-term debt, net of current installments and discount
|
1,097,486 | 935,290 | ||||||
Non-current tax liabilities
|
37,395 | 35,588 | ||||||
Deferred income taxes
|
140,996 | 163,386 | ||||||
Other non-current liabilities
|
2,650 | 3,495 | ||||||
Total liabilities
|
1,598,882 | 1,592,920 | ||||||
Shareholders' equity:
|
||||||||
Common stock; authorized 225,000 at 2011 and 2010,
|
||||||||
issued and outstanding 72,928 at 2011 and 71,996 at 2010
|
73 | 72 | ||||||
Preferred stock; authorized 50,000 at 2011 and 2010; issued and
|
||||||||
outstanding 0 at 2011 and 2010
|
- | - | ||||||
Additional paid-in capital
|
904,845 | 852,152 | ||||||
Retained earnings
|
763,277 | 613,434 | ||||||
Accumulated other comprehensive income, net
|
26,852 | 17,421 | ||||||
Shareholders' equity
|
1,695,047 | 1,483,079 | ||||||
$ | 3,293,929 | $ | 3,075,999 | |||||
KINETIC CONCEPTS, INC. AND SUBSIDIARIES
|
||||||||
Condensed Consolidated Statements of Cash Flows
|
||||||||
(in thousands)
|
||||||||
(unaudited)
|
||||||||
Six months ended June 30,
|
||||||||
2011
|
2010
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$ | 149,843 | $ | 106,318 | ||||
Adjustments to reconcile net earnings to net cash provided
|
||||||||
by operating activities:
|
||||||||
Amortization of convertible debt discount
|
11,279 | 10,443 | ||||||
Depreciation and other amortization
|
71,685 | 80,511 | ||||||
Provision for bad debt
|
5,364 | 4,139 | ||||||
Write-off of deferred debt issuance costs
|
3,218 | 1,928 | ||||||
Share-based compensation expense
|
15,879 | 15,434 | ||||||
Deferred income tax benefit
|
(21,061 | ) | (29,647 | ) | ||||
Excess tax benefit from share-based payment arrangements
|
(2,082 | ) | (1,392 | ) | ||||
Change in assets and liabilities:
|
||||||||
Decrease in accounts receivable, net
|
3,586 | 30,932 | ||||||
Decrease (increase) in inventories, net
|
4,504 | (36,102 | ) | |||||
Increase in prepaid expenses and other
|
(13,540 | ) | (4,193 | ) | ||||
Decrease in accounts payable
|
(8,585 | ) | (632 | ) | ||||
Increase (decrease) in accrued expenses and other
|
17,824 | (20,687 | ) | |||||
Increase (decrease) in tax liabilities, net
|
2,088 | (18,692 | ) | |||||
Decrease in deferred income taxes, net
|
(3,541 | ) | (460 | ) | ||||
Net cash provided by operating activities
|
236,461 | 137,900 | ||||||
Cash flows from investing activities:
|
||||||||
Additions to property, plant and equipment
|
(66,750 | ) | (46,192 | ) | ||||
Decrease (increase) in inventory to be converted into equipment
|
||||||||
for short-term rental
|
(7,239 | ) | 7,265 | |||||
Dispositions of property, plant and equipment
|
913 | 1,067 | ||||||
Increase in identifiable intangible assets and other non-current assets
|
(17,364 | ) | (2,091 | ) | ||||
Net cash used by investing activities
|
(90,440 | ) | (39,951 | ) | ||||
Cash flows from financing activities:
|
||||||||
Repayments of long-term debt, revolving credit facility and
|
||||||||
capital lease obligations
|
(13,830 | ) | (125,054 | ) | ||||
Proceeds from exercise of stock options
|
36,004 | 10,185 | ||||||
Proceeds from the purchase of stock in ESPP and other
|
4,107 | 3,451 | ||||||
Excess tax benefit from share-based payment arrangements
|
2,082 | 1,392 | ||||||
Purchase of immature shares for minimum tax withholdings
|
(3,681 | ) | (1,108 | ) | ||||
Refinancing of senior credit facility:
|
||||||||
Proceeds from borrowings on refinancing of senior credit facility
|
146,012 | - | ||||||
Repayments on senior credit facility – due 2013
|
(123,346 | ) | - | |||||
Payment of debt issuance costs
|
(14,676 | ) | - | |||||
Net cash provided (used) by financing activities
|
32,672 | (111,134 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents
|
3,128 | (2,904 | ) | |||||
Net increase (decrease) in cash and cash equivalents
|
181,821 | (16,089 | ) | |||||
Cash and cash equivalents, beginning of period
|
316,603 | 263,157 | ||||||
Cash and cash equivalents, end of period
|
$ | 498,424 | $ | 247,068 |
KINETIC CONCEPTS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||
Reconciliation from GAAP to Non-GAAP
|
||||||||||||||||||||
Supplemental Revenue Data
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Three months ended June 30,
|
||||||||||||||||||||
2011
|
GAAP
|
Constant
|
||||||||||||||||||
Constant
|
2010
|
%
|
Currency %
|
|||||||||||||||||
GAAP
|
FX Impact
|
Currency
|
GAAP
|
Change
|
Change (1)
|
|||||||||||||||
Total Revenue:
|
|
|||||||||||||||||||
AHS
|
$ | 357,971 | $ | (11,382 | ) | $ | 346,589 | $ | 347,726 | 2.9 | % | (0.3 | ) % | |||||||
LifeCell
|
96,330 | (380 | ) | 95,950 | 83,743 | 15.0 | 14.6 | |||||||||||||
TSS
|
65,529 | (3,334 | ) | 62,195 | 66,303 | (1.2 | ) | (6.2 | ) | |||||||||||
Total Revenue
|
$ | 519,830 | $ | (15,096 | ) | $ | 504,734 | $ | 497,772 | 4.4 | % | 1.4 | % | |||||||
AHS:
|
||||||||||||||||||||
Americas revenue
|
||||||||||||||||||||
Rental
|
$ | 184,478 | $ | (325 | ) | $ | 184,153 | $ | 189,076 | (2.4 | ) % | (2.6 | ) % | |||||||
Sales
|
82,381 | (365 | ) | 82,016 | 77,605 | 6.2 | 5.7 | |||||||||||||
Total Americas revenue
|
266,859 | (690 | ) | 266,169 | 266,681 | 0.1 | (0.2 | ) | ||||||||||||
EMEA revenue
|
||||||||||||||||||||
Rental
|
31,775 | (3,744 | ) | 28,031 | 33,271 | (4.5 | ) | (15.7 | ) | |||||||||||
Sales
|
43,380 | (5,040 | ) | 38,340 | 38,648 | 12.2 | (0.8 | ) | ||||||||||||
Total EMEA revenue
|
75,155 | (8,784 | ) | 66,371 | 71,919 | 4.5 | (7.7 | ) | ||||||||||||
APAC revenue
|
||||||||||||||||||||
Rental
|
8,861 | (995 | ) | 7,866 | 4,502 | 96.8 | 74.7 | |||||||||||||
Sales
|
7,096 | (913 | ) | 6,183 | 4,624 | 53.5 | 33.7 | |||||||||||||
Total APAC revenue
|
15,957 | (1,908 | ) | 14,049 | 9,126 | 74.9 | 53.9 | |||||||||||||
Total rental revenue
|
225,114 | (5,064 | ) | 220,050 | 226,849 | (0.8 | ) | (3.0 | ) | |||||||||||
Total sales revenue
|
132,857 | (6,318 | ) | 126,539 | 120,877 | 9.9 | 4.7 | |||||||||||||
Total AHS Revenue
|
$ | 357,971 | $ | (11,382 | ) | $ | 346,589 | $ | 347,726 | 2.9 | % | (0.3 | ) % | |||||||
LifeCell Revenue:
|
||||||||||||||||||||
Americas revenue
|
||||||||||||||||||||
Rental
|
$ | 355 | $ | - | $ | 355 | $ | - | - | % | - | % | ||||||||
Sales
|
92,913 | (49 | ) | 92,864 | 82,188 | 13.0 | 13.0 | |||||||||||||
Total Americas revenue
|
93,268 | (49 | ) | 93,219 | 82,188 | 13.5 | 13.4 | |||||||||||||
EMEA revenue
|
||||||||||||||||||||
Sales
|
3,062 | (331 | ) | 2,731 | 1,555 | 96.9 | 75.6 | |||||||||||||
Total rental revenue
|
355 | - | 355 | - | - | - | ||||||||||||||
Total sales revenue
|
95,975 | (380 | ) | 95,595 | 83,743 | 14.6 | 14.2 | |||||||||||||
Total LifeCell Revenue
|
$ | 96,330 | $ | (380 | ) | $ | 95,950 | $ | 83,743 | 15.0 | % | 14.6 | % | |||||||
TSS Revenue:
|
||||||||||||||||||||
Americas revenue
|
||||||||||||||||||||
Rental
|
$ | 33,505 | $ | (321 | ) | $ | 33,184 | $ | 38,584 | (13.2 | ) % | (14.0 | ) % | |||||||
Sales
|
7,461 | (109 | ) | 7,352 | 5,979 | 24.8 | 23.0 | |||||||||||||
Total Americas revenue
|
40,966 | (430 | ) | 40,536 | 44,563 | (8.1 | ) | (9.0 | ) | |||||||||||
EMEA revenue
|
||||||||||||||||||||
Rental
|
20,323 | (2,457 | ) | 17,866 | 17,648 | 15.2 | 1.2 | |||||||||||||
Sales
|
3,868 | (412 | ) | 3,456 | 3,916 | (1.2 | ) | (11.7 | ) | |||||||||||
Total EMEA revenue
|
24,191 | (2,869 | ) | 21,322 | 21,564 | 12.2 | (1.1 | ) | ||||||||||||
APAC revenue
|
||||||||||||||||||||
Rental
|
17 | (1 | ) | 16 | 3 | 466.7 | 433.3 | |||||||||||||
Sales
|
355 | (34 | ) | 321 | 173 | 105.2 | 85.5 | |||||||||||||
Total APAC revenue
|
372 | (35 | ) | 337 | 176 | 111.4 | 91.5 | |||||||||||||
Total rental revenue
|
53,845 | (2,779 | ) | 51,066 | 56,235 | (4.3 | ) | (9.2 | ) | |||||||||||
Total sales revenue
|
11,684 | (555 | ) | 11,129 | 10,068 | 16.1 | 10.5 | |||||||||||||
Total TSS Revenue
|
$ | 65,529 | $ | (3,334 | ) | $ | 62,195 | $ | 66,303 | (1.2 | ) % | (6.2 | ) % | |||||||
|
||||||||||||||||||||
(1) Represents percentage change between 2011 Non-GAAP Constant Currency revenue and 2010 GAAP revenue.
|
KINETIC CONCEPTS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||
Reconciliation from GAAP to Non-GAAP
|
||||||||||||||||||||
Supplemental Revenue Data
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Six months ended June 30,
|
||||||||||||||||||||
2011
|
GAAP
|
Constant
|
||||||||||||||||||
Constant
|
2010
|
%
|
Currency %
|
|||||||||||||||||
GAAP
|
FX Impact
|
Currency
|
GAAP
|
Change
|
Change (1)
|
|||||||||||||||
Total Revenue:
|
|
|||||||||||||||||||
AHS
|
$ | 698,510 | $ | (12,815 | ) | $ | 685,695 | $ | 680,679 | 2.6 | % | 0.7 | % | |||||||
LifeCell
|
189,344 | (587 | ) | 188,757 | 162,758 | 16.3 | 16.0 | |||||||||||||
TSS
|
133,160 | (3,509 | ) | 129,651 | 140,140 | (5.0 | ) | (7.5 | ) | |||||||||||
Total Revenue
|
$ | 1,021,014 | $ | (16,911 | ) | $ | 1,004,103 | $ | 983,577 | 3.8 | % | 2.1 | % | |||||||
AHS:
|
||||||||||||||||||||
Americas revenue
|
||||||||||||||||||||
Rental
|
$ | 366,340 | $ | (599 | ) | $ | 365,741 | $ | 368,069 | (0.5 | ) % | (0.6 | ) % | |||||||
Sales
|
158,379 | (637 | ) | 157,742 | 148,444 | 6.7 | 6.3 | |||||||||||||
Total Americas revenue
|
524,719 | (1,236 | ) | 523,483 | 516,513 | 1.6 | 1.3 | |||||||||||||
EMEA revenue
|
||||||||||||||||||||
Rental
|
62,224 | (3,444 | ) | 58,780 | 68,856 | (9.6 | ) | (14.6 | ) | |||||||||||
Sales
|
81,871 | (5,216 | ) | 76,655 | 78,668 | 4.1 | (2.6 | ) | ||||||||||||
Total EMEA revenue
|
144,095 | (8,660 | ) | 135,435 | 147,524 | (2.3 | ) | (8.2 | ) | |||||||||||
APAC revenue
|
||||||||||||||||||||
Rental
|
16,821 | (1,562 | ) | 15,259 | 8,281 | 103.1 | 84.3 | |||||||||||||
Sales
|
12,875 | (1,357 | ) | 11,518 | 8,361 | 54.0 | 37.8 | |||||||||||||
Total APAC revenue
|
29,696 | (2,919 | ) | 26,777 | 16,642 | 78.4 | 60.9 | |||||||||||||
Total rental revenue
|
445,385 | (5,605 | ) | 439,780 | 445,206 | - | (1.2 | ) | ||||||||||||
Total sales revenue
|
253,125 | (7,210 | ) | 245,915 | 235,473 | 7.5 | 4.4 | |||||||||||||
Total AHS Revenue
|
$ | 698,510 | $ | (12,815 | ) | $ | 685,695 | $ | 680,679 | 2.6 | % | 0.7 | % | |||||||
LifeCell Revenue:
|
||||||||||||||||||||
Americas revenue
|
||||||||||||||||||||
Rental
|
$ | 590 | $ | - | $ | 590 | $ | - | - | % | - | % | ||||||||
Sales
|
182,915 | (70 | ) | 182,845 | 160,162 | 14.2 | 14.2 | |||||||||||||
Total Americas revenue
|
183,505 | (70 | ) | 183,435 | 160,162 | 14.6 | 14.5 | |||||||||||||
EMEA revenue
|
||||||||||||||||||||
Sales
|
5,839 | (517 | ) | 5,322 | 2,596 | 124.9 | 105.0 | |||||||||||||
Total rental revenue
|
590 | - | 590 | - | - | - | ||||||||||||||
Total sales revenue
|
188,754 | (587 | ) | 188,167 | 162,758 | 16.0 | 15.6 | |||||||||||||
Total LifeCell Revenue
|
$ | 189,344 | $ | (587 | ) | $ | 188,757 | $ | 162,758 | 16.3 | % | 16.0 | % | |||||||
TSS Revenue:
|
||||||||||||||||||||
Americas revenue
|
||||||||||||||||||||
Rental
|
$ | 72,028 | $ | (617 | ) | $ | 71,411 | $ | 79,994 | (10.0 | ) % | (10.7 | ) % | |||||||
Sales
|
13,491 | (215 | ) | 13,276 | 12,969 | 4.0 | 2.4 | |||||||||||||
Total Americas revenue
|
85,519 | (832 | ) | 84,687 | 92,963 | (8.0 | ) | (8.9 | ) | |||||||||||
EMEA revenue
|
||||||||||||||||||||
Rental
|
39,990 | (2,295 | ) | 37,695 | 37,828 | 5.7 | (0.4 | ) | ||||||||||||
Sales
|
7,071 | (307 | ) | 6,764 | 8,625 | (18.0 | ) | (21.6 | ) | |||||||||||
Total EMEA revenue
|
47,061 | (2,602 | ) | 44,459 | 46,453 | 1.3 | (4.3 | ) | ||||||||||||
APAC revenue
|
||||||||||||||||||||
Rental
|
21 | (6 | ) | 15 | 47 | (55.3 | ) | (68.1 | ) | |||||||||||
Sales
|
559 | (69 | ) | 490 | 677 | (17.4 | ) | (27.6 | ) | |||||||||||
Total APAC revenue
|
580 | (75 | ) | 505 | 724 | (19.9 | ) | (30.2 | ) | |||||||||||
Total rental revenue
|
112,039 | (2,918 | ) | 109,121 | 117,869 | (4.9 | ) | (7.4 | ) | |||||||||||
Total sales revenue
|
21,121 | (591 | ) | 20,530 | 22,271 | (5.2 | ) | (7.8 | ) | |||||||||||
Total TSS Revenue
|
$ | 133,160 | $ | (3,509 | ) | $ | 129,651 | $ | 140,140 | (5.0 | ) % | (7.5 | ) % | |||||||
|
||||||||||||||||||||
(1) Represents percentage change between 2011 Non-GAAP Constant Currency revenue and 2010 GAAP revenue.
|
KINETIC CONCEPTS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||
Selected Financial Information - GAAP to Non-GAAP Reconciliation | |||||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||
Three months ended June 30,
|
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Interest
|
|||||||||||||||||||||||||||
Expense -
|
|||||||||||||||||||||||||||
Debt
|
Adoption of
|
Refinancing
|
|||||||||||||||||||||||||
Amortization
|
Issuance
|
Required
|
of Senior
|
Restructuring
|
|||||||||||||||||||||||
2011
|
of Acquired
|
Cost
|
Accounting
|
Credit
|
and Other
|
Adjusted
|
Adjusted
|
%
|
|||||||||||||||||||
GAAP
|
Intangibles
|
Amortization
|
Standards
|
Facility
|
Charges
|
2011
|
2010
|
Change
|
|||||||||||||||||||
Operating earnings
|
$ | 128,637 | $ | 8,856 | $ | - | $ | - | $ | - | $ | 1,206 | $ | 138,699 | $ | 123,624 | 12.2 | % | |||||||||
Net earnings (1)
|
$ | 81,425 | $ | 5,447 | $ | 1,065 | $ | 3,502 | $ | - | $ | 742 | $ | 92,181 | $ | 72,533 | 27.1 | % | |||||||||
Diluted earnings per share
|
$ | 1.09 | $ | 0.07 | $ | 0.01 | $ | 0.05 | $ | - | $ | 0.01 | $ | 1.23 | $ | 1.01 | 21.8 | % |
Six months ended June 30,
|
|||||||||||||||||||||||||||
Interest
|
|||||||||||||||||||||||||||
Expense -
|
|||||||||||||||||||||||||||
Debt
|
Adoption of
|
Refinancing
|
|||||||||||||||||||||||||
Amortization
|
Issuance
|
Required
|
of Senior
|
Restructuring
|
|||||||||||||||||||||||
2011
|
of Acquired
|
Cost
|
Accounting
|
Credit
|
and Other
|
Adjusted
|
Adjusted
|
%
|
|||||||||||||||||||
GAAP
|
Intangibles
|
Amortization
|
Standards
|
Facility
|
Charges
|
2011
|
2010
|
Change
|
|||||||||||||||||||
Operating earnings
|
$ | 243,204 | $ | 17,712 | $ | - | $ | - | $ | - | $ | 1,206 | $ | 262,122 | $ | 235,123 | 11.5 | % | |||||||||
Net earnings (1)
|
$ | 149,843 | $ | 10,893 | $ | 2,084 | $ | 6,937 | $ | 1,979 | $ | 742 | $ | 172,478 | $ | 137,125 | 25.8 | % | |||||||||
Diluted earnings per share
|
$ | 2.04 | $ | 0.15 | $ | 0.03 | $ | 0.09 | $ | 0.03 | $ | 0.01 | $ | 2.35 | $ | 1.91 | 23.0 | % |
Three months ended June 30,
|
|||||||||||||||||||
Interest
|
|||||||||||||||||||
Expense -
|
|||||||||||||||||||
Debt
|
Adoption of
|
||||||||||||||||||
Amortization
|
Issuance
|
Required
|
Restructuring
|
||||||||||||||||
2010
|
of Acquired
|
Cost
|
Accounting
|
and Other
|
Adjusted
|
||||||||||||||
GAAP
|
Intangibles
|
Amortization
|
Standards
|
Charges
|
2010
|
||||||||||||||
Operating earnings
|
$ | 101,357 | $ | 9,556 | $ | - | $ | - | $ | 12,711 | $ | 123,624 | |||||||
Net earnings (1)
|
$ | 53,605 | $ | 5,878 | $ | 1,989 | $ | 3,243 | $ | 7,818 | $ | 72,533 | |||||||
Diluted earnings per share
|
$ | 0.75 | $ | 0.08 | $ | 0.03 | $ | 0.04 | $ | 0.11 | $ | 1.01 |
Six months ended June 30,
|
|||||||||||||||||||
Interest
|
|||||||||||||||||||
Expense -
|
|||||||||||||||||||
Debt
|
Adoption of
|
||||||||||||||||||
Amortization
|
Issuance
|
Required
|
Restructuring
|
||||||||||||||||
2010
|
of Acquired
|
Cost
|
Accounting
|
and Other
|
Adjusted
|
||||||||||||||
GAAP
|
Intangibles
|
Amortization
|
Standards
|
Charges
|
2010
|
||||||||||||||
Operating earnings
|
$ | 202,697 | $ | 19,715 | $ | - | $ | - | $ | 12,711 | $ | 235,123 | |||||||
Net earnings (1)
|
$ | 106,318 | $ | 12,125 | $ | 4,441 | $ | 6,423 | $ | 7,818 | $ | 137,125 | |||||||
Diluted earnings per share
|
$ | 1.48 | $ | 0.17 | $ | 0.06 | $ | 0.09 | $ | 0.11 | $ | 1.91 | |||||||
|
|||||||||||||||||||
(1) Adjustments to “Net earnings” are presented net of tax. The tax effect of each reconciling item is calculated using the Company’s estimated incremental U.S. combined federal and state tax rate of 38.5%.
|
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