DELAWARE | 0-19974 | 33-0022692 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
951 Calle Amanecer, San Clemente, California | 92673 | |
(Address of principal executive offices) | (Zip Code) |
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)) |
(c) | Exhibits | |
99.1 | Press release, dated May 5, 2015 announcing ICU Medical, Inc.'s first quarter 2015 earnings. |
ICU Medical, Inc. | ||
Date: May 5, 2015 | /s/ SCOTT E. LAMB Scott E. Lamb Secretary, Treasurer and Chief Financial Officer |
(dollars in millions) | |||
Three months ended March 31, | |||
Market Segment | 2015 | 2014 | Change |
Infusion Therapy | $58.5 | $50.0 | $8.5 |
Oncology | 8.9 | 9.0 | (0.1) |
Critical Care | 13.7 | 14.0 | (0.3) |
Other | 0.4 | 0.2 | 0.2 |
$81.5 | $73.2 | $8.3 |
March 31, 2015 | December 31, 2014 | ||||||||
(unaudited) | (1) | ||||||||
ASSETS | |||||||||
CURRENT ASSETS: | |||||||||
Cash and cash equivalents | $ | 308,533 | $ | 275,812 | |||||
Investment securities | 46,254 | 70,952 | |||||||
Cash, cash equivalents and investment securities | 354,787 | 346,764 | |||||||
Accounts receivable, net of allowance for doubtful accounts of $1,046 at March 31, 2015 and $1,127 at December 31, 2014 | 42,595 | 39,051 | |||||||
Inventories | 37,660 | 36,933 | |||||||
Prepaid income taxes | 4,941 | 3,963 | |||||||
Prepaid expenses and other current assets | 6,634 | 5,818 | |||||||
Deferred income taxes | 7,393 | 4,683 | |||||||
Total current assets | 454,010 | 437,212 | |||||||
PROPERTY AND EQUIPMENT, net | 82,288 | 86,091 | |||||||
GOODWILL | 1,478 | 1,478 | |||||||
INTANGIBLE ASSETS, net | 6,657 | 7,063 | |||||||
DEFERRED INCOME TAXES | 9,911 | 9,258 | |||||||
$ | 554,344 | $ | 541,102 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
CURRENT LIABILITIES: | |||||||||
Accounts payable | $ | 12,548 | $ | 11,378 | |||||
Accrued liabilities | 20,349 | 17,350 | |||||||
Total current liabilities | 32,897 | 28,728 | |||||||
DEFERRED INCOME TAXES | 2,123 | 1,376 | |||||||
INCOME TAX LIABILITY | 1,222 | 2,746 | |||||||
COMMITMENTS AND CONTINGENCIES | — | — | |||||||
STOCKHOLDERS’ EQUITY: | |||||||||
Convertible preferred stock, $1.00 par value Authorized-500 shares; Issued and outstanding- none | — | — | |||||||
Common stock, $0.10 par value - Authorized, 80,000 shares; Issued, 15,778 shares at March 31, 2015 and 15,595 shares at December 31, 2014; Outstanding, 15,769 shares March 31, 2015 and 15,595 shares at December 31, 2014 | 1,578 | 1,559 | |||||||
Additional paid-in capital | 118,367 | 107,336 | |||||||
Treasury stock, at cost - 9 shares at March 31, 2015 and 0 shares at December 31, 2014 | (795 | ) | — | ||||||
Retained earnings | 418,597 | 408,911 | |||||||
Accumulated other comprehensive loss | (19,645 | ) | (9,554 | ) | |||||
Total stockholders’ equity | 518,102 | 508,252 | |||||||
$ | 554,344 | $ | 541,102 |
Three months ended March 31, | |||||||||
2015 | 2014 | ||||||||
REVENUES: | |||||||||
Net sales | $ | 81,323 | $ | 73,113 | |||||
Other | 161 | 117 | |||||||
TOTAL REVENUE | 81,484 | 73,230 | |||||||
COST OF GOODS SOLD | 38,970 | 37,203 | |||||||
Gross profit | 42,514 | 36,027 | |||||||
OPERATING EXPENSES: | |||||||||
Selling, general and administrative | 20,174 | 22,519 | |||||||
Research and development | 4,308 | 3,631 | |||||||
Legal settlement | 7,059 | — | |||||||
Total operating expenses | 31,541 | 26,150 | |||||||
Income from operations | 10,973 | 9,877 | |||||||
OTHER INCOME | 526 | 210 | |||||||
Income before income taxes | 11,499 | 10,087 | |||||||
PROVISION FOR INCOME TAXES | (1,813 | ) | (3,430 | ) | |||||
NET INCOME | $ | 9,686 | $ | 6,657 | |||||
NET INCOME PER SHARE | |||||||||
Basic | $ | 0.62 | $ | 0.44 | |||||
Diluted | $ | 0.60 | $ | 0.43 | |||||
WEIGHTED AVERAGE NUMBER OF SHARES | |||||||||
Basic | 15,693 | 15,097 | |||||||
Diluted | 16,234 | 15,395 |
Three months ended March 31, | |||||||||
2015 | 2014 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
Net income | $ | 9,686 | $ | 6,657 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 4,629 | 4,765 | |||||||
Provision for doubtful accounts | — | 3 | |||||||
Provision for warranty and returns | 31 | (410 | ) | ||||||
Stock compensation | 2,813 | 1,973 | |||||||
Loss (gain) on disposal of property and equipment | 2 | (5 | ) | ||||||
Bond premium amortization | 943 | 601 | |||||||
Cash provided (used) by changes in operating assets and liabilities | |||||||||
Accounts receivable | (4,947 | ) | 2,416 | ||||||
Inventories | (1,785 | ) | (2,267 | ) | |||||
Prepaid expenses and other assets | (980 | ) | (800 | ) | |||||
Accounts payable | 1,951 | 382 | |||||||
Accrued liabilities | 3,300 | (2,557 | ) | ||||||
Income taxes, including excess tax benefits and deferred income taxes | (2,392 | ) | 1,956 | ||||||
Net cash provided by operating activities | 13,251 | 12,714 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
Purchases of property and equipment | (2,357 | ) | (5,908 | ) | |||||
Proceeds from sale of asset | — | 5 | |||||||
Intangible asset additions | (208 | ) | (120 | ) | |||||
Purchases of investment securities | (9,205 | ) | (36,908 | ) | |||||
Proceeds from sale of investment securities | 31,785 | 30,936 | |||||||
Net cash provided (used) by investing activities | 20,015 | (11,995 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
Proceeds from exercise of stock options | 4,777 | 4,202 | |||||||
Proceeds from employee stock purchase plan | 1,041 | 1,384 | |||||||
Tax benefits from exercise of stock options | 3,059 | 1,178 | |||||||
Purchase of treasury stock | (1,435 | ) | (5,835 | ) | |||||
Net cash provided by financing activities | 7,442 | 929 | |||||||
Effect of exchange rate changes on cash | (7,987 | ) | (47 | ) | |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 32,721 | 1,601 | |||||||
CASH AND CASH EQUIVALENTS, beginning of period | 275,812 | 226,022 | |||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 308,533 | $ | 227,623 | |||||
NON-CASH INVESTING ACTIVITIES | |||||||||
Accrued liabilities for property and equipment | $ | 144 | $ | 1,008 |
Adjusted EBITDA | |||||||||
Q1 | |||||||||
2015 | 2014 | ||||||||
GAAP net income | $ | 9,686 | $ | 6,657 | |||||
Non-GAAP adjustments: | |||||||||
Stock compensation expense (a) | 2,813 | 1,973 | |||||||
Depreciation and amortization expense (b) | 4,629 | 4,765 | |||||||
Legal settlement (c) | 7,059 | — | |||||||
Provision for income taxes (d) | 1,813 | 3,430 | |||||||
Total non-GAAP adjustments | 16,314 | 10,168 | |||||||
Adjusted EBITDA | $ | 26,000 | $ | 16,825 | |||||
Adjusted diluted earnings per share | |||||||||
Q1 | |||||||||
2015 | 2014 | ||||||||
GAAP diluted earnings per share | $ | 0.60 | $ | 0.43 | |||||
Non-GAAP adjustments: | |||||||||
Stock compensation expense (a) | $ | 0.17 | $ | 0.13 | |||||
Amortization expense (e) | $ | 0.04 | $ | 0.04 | |||||
Legal settlement (c) | $ | 0.43 | $ | — | |||||
Estimated income tax impact from adjustments (f) | $ | (0.22 | ) | $ | (0.06 | ) | |||
Adjusted diluted earnings per share | $ | 1.02 | $ | 0.54 | |||||
(a) Stock-based compensation expense in accordance with ASC 718. (b) Depreciation of fixed assets and amortization of intangible assets. (c) Legal settlement. | |||||||||
(d) Income tax expense recognized during the period. (e) Amortization expense (f) Estimated income tax effect on adjustments for stock compensation expense, amortization expense and legal settlement. | |||||||||