EX-99.1 4 pressrelease21214.htm PRESS RELEASE Press Release 2.12.14


Exhibit 99.1

ICU Medical, Inc. Announces Fourth Quarter and Fiscal Year 2013 Results
Company Appoints Mr. Vivek Jain as New Chief Executive Officer and Chairman
Full Year 2013 Operating Cash Flow Totaled $64.0 million
Earnings Conference Call to be Held on February 20, 2014

SAN CLEMENTE, Calif.-February 12, 2014-ICU Medical, Inc., (Nasdaq: ICUI), a leader in innovative medical devices used in infusion therapy, oncology and critical care applications, today announced specific financial results for fourth quarter and fiscal year ended December 31, 2013. In addition, in a separate release today, the Company announced that Mr. Vivek Jain has been appointed the Company’s Chief Executive Officer and will serve as Chairman on ICU Medical’s Board of Directors, effective February 13, 2014. Mr. Jain joins ICU Medical after departing as president of the Procedural Solutions division for CareFusion (NYSE: CFN).
Fiscal Year 2014 Guidance
Due to the timing of the appointment of the Company’s new Chief Executive Officer, the Company expects to provide 2014 guidance on the day of its earnings conference call, February 20, 2014.
Fourth Quarter and Full Fiscal Year 2013 Results

Fourth quarter of 2013 revenue was $77.9 million, compared to $82.7 million in the same period last year. Net income for the fourth quarter of 2013 was $13.3 million, or $0.86 per diluted share, as compared to net income of $12.3 million, or $0.82 per diluted share, for the fourth quarter of 2012. The fourth quarter of 2013 net income had a tax rate of 3.1% compared to same period last year tax rate of 34.8%. The lower tax rate was due to a one-time benefit from a change in foreign tax legislation. For the fiscal year ended December 31, 2013, revenue was $313.7 million, compared to $316.9 million in the same period last year. Net income for the fiscal year ended December 31, 2013 was $40.4 million, or $2.65 per diluted share, compared to net income of $41.3 million, or $2.80 per diluted share, for the same period last year.
"We are pleased with our continued strong operating cash flow during the fourth quarter of 2013 and our continued growth in oncology; however, this was offset by lower than expected critical care and infusion therapy revenue," said Scott Lamb, ICU Medical's Chief Financial Officer. "Fourth quarter international sales were up 18.3%, while domestic sales were down 13.6%. Gross margins were 49.7% as we continued to benefit from a favorable product mix."
"Entering 2014, we are very excited to have Mr. Jain leading our Company as we focus on a number of key initiatives that we believe will better utilize our strong portfolio of products and solid operational platforms. In addition, we expect to utilize our strong free cash flow and balance sheet to enhance shareholder value" concluded Mr. Lamb.




Revenues by market segment for the fiscal years ended December 31, 2013 and 2012 were as follows:
(dollars in millions)
Market Segment
2013
2012
Change
Infusion Therapy
$ 211.2
$ 215.3
-1.9%
Critical Care
$ 51.5
$ 55.5
-7.3%
Oncology
$ 37.5
$ 30.3
23.7%
Other
$ 13.5
$ 15.8
-14.3%
 
$ 313.7
$ 316.9
-1.0%
The Company ended the fourth quarter with a strong balance sheet. As of December 31, 2013, cash, cash equivalents and investment securities totaled $296.9 million and working capital was $367.4 million. Additionally, the Company generated operating cash flow of $64.0 million for the fiscal year of 2013.
Conference Call
The Company will be conducting a conference call concerning its fourth quarter and fiscal year results on February 20th at 4:30 p.m. EST (1:30 p.m. PST). The call can be accessed at 800-936-9761 (U.S. and Canada) or 408-774-4587 (international), conference ID number 90674287. The conference call will be simultaneously available by webcast, which can be accessed by going to the Company's website at www.icumed.com, clicking on the Investors tab, clicking on the Webcast icon and following the prompts. The webcast will also be available by replay. 
About ICU Medical, Inc.
ICU Medical, Inc. (Nasdaq:ICUI) develops, manufactures and sells innovative medical technologies used in vascular therapy, oncology, and critical care applications. ICU Medical's products improve patient outcomes by helping prevent bloodstream infections, protecting healthcare workers from exposure to infectious diseases or hazardous. The Company's complete product line includes custom IV systems, closed delivery systems for hazardous drugs, needlefree IV connectors, catheters and cardiac monitoring systems. ICU Medical is headquartered in San Clemente, California. More information about ICU Medical, Inc. can be found at www.icumed.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as ''will,'' ''expect,'' ''believe,'' ''could,'' ''would,'' ''estimate,'' ''continue,'' ''build,'' ''expand'' or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding the future, including, but not limited to, statements regarding exploring new global strategic alliances, utilizing strong free cash flow to enhance shareholder value through an expanded share repurchase program and potential future acquisitions, the Company’s focus on future key initiatives, better utilizing the Company’s products and balance sheet, the Company's being positioned for further investments in its product portfolio and expansion of its market presence and delivering value to shareholders. These forward-looking statements are based on Management's current expectations, estimates, forecasts and projections about the Company and assumptions Management believes are reasonable, all of which are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated in the forward-looking statements. These risks and uncertainties include, but are not limited to, decreased demand for the Company's products, decreased free cash flow, changes in product mix, increased competition from competitors, lack of continued growth or improving efficiencies and unexpected changes in the Company's arrangements with its largest customers. Future results are subject to risks and uncertainties, including the risk factors, and other risks and uncertainties, described in the Company's filings with the Securities and Exchange Commission, which include those in the Annual Report on Form 10-K for the year end




ed December 31, 2012. Forward-looking statements contained in this press release are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:

ICU Medical, Inc.
Scott Lamb, Chief Financial Officer
(949) 366-2183

ICR, LLC.
John Mills, Partner
(310) 954-1105




ICU MEDICAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
(Unaudited) 

 
December 31,
 
2013
 
2012
ASSETS
 
 
 
CURRENT ASSETS:
 
 
 
Cash and cash equivalents
$
226,022

 
 
$
146,900

 
Investment securities
70,869
 
 
 
79,259
 
 
Cash, cash equivalents and investment securities
296,891
 
 
 
226,159
 
 
Accounts receivable, net of allowance for doubtful accounts of $1,208 and $998 at December 31, 2013 and 2012, respectively
45,318
 
 
 
49,127
 
 
Inventories
34,451
 
 
 
36,333
 
 
Prepaid income taxes
5,966
 
 
 
2,320
 
 
Prepaid expenses and other current assets
7,319
 
 
 
7,271
 
 
Deferred income taxes
4,351
 
 
 
4,293
 
 
Total current assets
394,296
 
 
 
325,503
 
 
 
 
 
 
PROPERTY AND EQUIPMENT, net
87,861
 
 
 
85,937
 
 
GOODWILL
1,478
 
 
 
1,478
 
 
INTANGIBLE ASSETS, net
8,490
 
 
 
9,952
 
 
DEFERRED INCOME TAXES
7,518
 
 
 
5,642
 
 
 
$
499,643

 
 
$
428,512

 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
CURRENT LIABILITIES:
 
 
 
Accounts payable
$
11,335

 
 
$
11,308

 
Accrued liabilities
15,551
 
 
 
17,810
 
 
Total current liabilities
26,886
 
 
 
29,118
 
 
 
 
 
 
DEFERRED INCOME TAXES
3,630
 
 
 
5,247
 
 
INCOME TAX LIABILITY
4,402
 
 
 
3,290
 
 
COMMITMENTS AND CONTINGENCIES
0
 
 
 
0
 
 
STOCKHOLDERS’ EQUITY:
 
 
 
Convertible preferred stock, $1.00 par value Authorized-500 shares; Issued and outstanding- none
0
 
 
 
0
 
 
Common stock, $0.10 par value - Authorized-80,000 shares; Issued 15,103 shares at December 31, 2013 and 14,855 at December 31, 2012, outstanding 15,102 shares at December 31, 2013 and 14,458 shares at December 31, 2012
1,510
 
 
 
1,486
 
 
Additional paid-in capital
78,495
 
 
 
63,770
 
 
Treasury stock, at cost - 1 shares at December 31, 2013 and 397 shares at December 31, 2012
(49
)
 
 
(15,128
)
 
Retained earnings
382,576
 
 
 
342,158
 
 
Accumulated other comprehensive gain (loss)
2,193
 
 
 
(1,429
)
 
Total stockholders’ equity
464,725
 
 
 
390,857
 
 
 
$
499,643

 
 
$
428,512

 





ICU MEDICAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)

 
Year ended December 31,
 
2013
 
2012
 
2011
REVENUES:
 
 
 
 
 
Net sales
$
313,056

 
 
$
316,322

 
 
$
301,642

 
Other
660
 
 
 
547
 
 
 
553
 
 
TOTAL REVENUE
313,716
 
 
 
316,869
 
 
 
302,195
 
 
COST OF GOODS SOLD
158,984
 
 
 
160,359
 
 
 
159,841
 
 
Gross profit
154,732
 
 
 
156,510
 
 
 
142,354
 
 
OPERATING EXPENSES:
 
 
 
 
 
Selling, general and administrative
90,376
 
 
 
84,604
 
 
 
85,287
 
 
Research and development
12,407
 
 
 
10,630
 
 
 
8,588
 
 
Legal settlement
0
 
 
 
0
 
 
 
(2,500
)
 
Gain on sale of assets
0
 
 
 
0
 
 
 
(14,242
)
 
Total operating expenses
102,783
 
 
 
95,234
 
 
 
77,133
 
 
Income from operations
51,949
 
 
 
61,276
 
 
 
65,221
 
 
OTHER INCOME
765
 
 
 
563
 
 
 
1,201
 
 
Income before income taxes
52,714
 
 
 
61,839
 
 
 
66,422
 
 
PROVISION FOR INCOME TAXES
(12,296
)
 
 
(20,558
)
 
 
(21,753
)
 
NET INCOME
$
40,418

 
 
$
41,281

 
 
$
44,669

 
NET INCOME PER SHARE
 
 
 
 
 
Basic
$
2.75

 
 
$
2.90

 
 
$
3.23

 
Diluted
$
2.65

 
 
$
2.80

 
 
$
3.15

 
WEIGHTED AVERAGE NUMBER OF SHARES
 
 
 
 
 
Basic
14,688
 
 
 
14,223
 
 
 
13,835
 
 
Diluted
15,274
 
 
 
14,725
 
 
 
14,161
 
 
 




.
ICU MEDICAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
 (Unaudited)

 
Year ended December 31,
 
2013
 
2012
 
2011
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
Net income
$
40,418

 
 
$
41,281

 
 
$
44,669

 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
19,506
 
 
 
19,001
 
 
 
18,294
 
 
Provision for doubtful accounts
185
 
 
 
(237
)
 
 
648
 
 
Provision for warranty and returns
671
 
 
 
220
 
 
 
—
 
 
Stock compensation
5,434
 
 
 
5,563
 
 
 
4,016
 
 
Loss (gain) on disposal of property and equipment
(36
)
 
 
212
 
 
 
(42
)
 
Gain on sale of assets
—
 
 
 
—
 
 
 
(14,242
)
 
Bond premium amortization
2,715
 
 
 
2,585
 
 
 
1,294
 
 
Changes in operating assets and liabilities:
 
 
 
 
 
Accounts receivable
3,556
 
 
(5,395
)
 
6,232
 
 
Inventories
2,319
 
 
 
4,573
 
 
 
3,170
 
 
Prepaid expenses and other assets
(383
)
 
(415
)
 
(920
)
 
Accounts payable
(31
)
 
 
(1,536
)
 
2,673
 
 
Accrued liabilities
(2,215
)
 
1,199
 
 
1,684
 
 
Deferred revenue
—
 
 
 
—
 
 
(254
)
 
Income taxes, including excess tax benefits and deferred income taxes
(8,119
)
 
(780
)
 
(2,735
)
 
Net cash provided by operating activities
64,020
 
 
 
66,271
 
 
 
64,487
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
Purchases of property and equipment
(18,415
)
 
 
(19,160
)
 
 
(15,824
)
 
Proceeds from sale of assets
49
 
 
 
10
 
 
 
16,201
 
 
Proceeds from insurance
—
 
 
 
—
 
 
 
2,781
 
 
Intangible asset additions
(1,080
)
 
 
(1,145
)
 
 
—
 
 
Purchases of investment securities
(86,022
)
 
 
(98,876
)
 
 
(90,502
)
 
Proceeds from sale of investment securities
92,348
 
 
 
77,798
 
 
 
41,610
 
 
Net cash used by investing activities
(13,120
)
 
 
(41,373
)
 
 
(45,734
)
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
Proceeds from exercise of stock options
18,004
 
 
 
14,844
 
 
 
7,974
 
 
Proceeds from employee stock purchase plan
2,457
 
 
 
2,220
 
 
 
1,828
 
 
Tax benefits from exercise of stock options
8,672
 
 
 
4,567
 
 
 
4,288
 
 
Purchase of treasury stock
(3,033
)
 
 
—
 
 
 
(11,956
)
 
Net cash provided by financing activities
26,100
 
 
 
21,631
 
 
 
2,134
 
 
Effect of exchange rate changes on cash
2,122
 
 
 
781
 
 
 
(147
)
 
NET INCREASE IN CASH AND CASH EQUIVALENTS
79,122
 
 
 
47,310
 
 
 
20,740
 
 
CASH AND CASH EQUIVALENTS, beginning of period
146,900
 
 
 
99,590
 
 
 
78,850
 
 
CASH AND CASH EQUIVALENTS, end of period
$
226,022

 
 
$
146,900

 
 
$
99,590

 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
 
 
 
 
 
  Cash paid during the year for income taxes
$
12,172

 
 
$
16,741

 
 
$
20,110

 
NON-CASH INVESTING ACTIVITIES
 
 
 
 
 
  Accrued liabilities for property and equipment
$
212

 
 
$
427

 
 
$
418