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 August 10, 2015 announcing ICU Medical, Inc.'s second quarter 2015 earnings. |
ICU Medical, Inc. | ||
Date: August 10, 2015 | /s/ SCOTT E. LAMB Scott E. Lamb Secretary, Treasurer and Chief Financial Officer |
(dollars in millions) | |||
Three months ended June 30, | |||
Market Segment | 2015 | 2014 | Change |
Infusion Therapy | $58.0 | $54.5 | $3.5 |
Oncology | 10.4 | 9.3 | 1.1 |
Critical Care | 15.1 | 14.6 | 0.5 |
Other | 0.3 | 0.3 | 0.0 |
$83.8 | $78.7 | $5.1 |
June 30, 2015 | December 31, 2014 | ||||||||
(unaudited) | (1) | ||||||||
ASSETS | |||||||||
CURRENT ASSETS: | |||||||||
Cash and cash equivalents | $ | 331,092 | $ | 275,812 | |||||
Investment securities | 36,223 | 70,952 | |||||||
Cash, cash equivalents and investment securities | 367,315 | 346,764 | |||||||
Accounts receivable, net of allowance for doubtful accounts of $1,114 at June 30, 2015 and $1,127 at December 31, 2014 | 43,428 | 39,051 | |||||||
Inventories | 38,231 | 36,933 | |||||||
Prepaid income taxes | 8,263 | 3,963 | |||||||
Prepaid expenses and other current assets | 6,930 | 5,818 | |||||||
Deferred income taxes | 6,885 | 4,683 | |||||||
Total current assets | 471,052 | 437,212 | |||||||
PROPERTY AND EQUIPMENT, net | 81,376 | 86,091 | |||||||
GOODWILL | 1,478 | 1,478 | |||||||
INTANGIBLE ASSETS, net | 6,415 | 7,063 | |||||||
DEFERRED INCOME TAXES | 9,916 | 9,258 | |||||||
$ | 570,237 | $ | 541,102 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
CURRENT LIABILITIES: | |||||||||
Accounts payable | $ | 12,587 | $ | 11,378 | |||||
Accrued liabilities | 16,090 | 17,350 | |||||||
Total current liabilities | 28,677 | 28,728 | |||||||
DEFERRED INCOME TAXES | 2,278 | 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 and outstanding, 15,794 shares at June 30, 2015 and 15,595 shares at December 31, 2014 | 1,579 | 1,559 | |||||||
Additional paid-in capital | 122,091 | 107,336 | |||||||
Retained earnings | 432,167 | 408,911 | |||||||
Accumulated other comprehensive loss | (17,777 | ) | (9,554 | ) | |||||
Total stockholders’ equity | 538,060 | 508,252 | |||||||
$ | 570,237 | $ | 541,102 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||
REVENUES: | |||||||||||||||||||
Net sales | $ | 83,662 | $ | 78,555 | $ | 164,985 | $ | 151,668 | |||||||||||
Other | 119 | 122 | 280 | 239 | |||||||||||||||
TOTAL REVENUE | 83,781 | 78,677 | 165,265 | 151,907 | |||||||||||||||
COST OF GOODS SOLD | 40,020 | 41,135 | 78,990 | 78,338 | |||||||||||||||
Gross profit | 43,761 | 37,542 | 86,275 | 73,569 | |||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||
Selling, general and administrative | 20,318 | 24,278 | 40,492 | 46,797 | |||||||||||||||
Research and development | 3,122 | 4,566 | 7,430 | 8,197 | |||||||||||||||
Legal settlement | — | — | 7,059 | — | |||||||||||||||
Total operating expenses | 23,440 | 28,844 | 54,981 | 54,994 | |||||||||||||||
Income from operations | 20,321 | 8,698 | 31,294 | 18,575 | |||||||||||||||
OTHER INCOME | 240 | 207 | 766 | 417 | |||||||||||||||
Income before income taxes | 20,561 | 8,905 | 32,060 | 18,992 | |||||||||||||||
PROVISION FOR INCOME TAXES | (6,991 | ) | (3,027 | ) | (8,804 | ) | (6,457 | ) | |||||||||||
NET INCOME | $ | 13,570 | $ | 5,878 | $ | 23,256 | $ | 12,535 | |||||||||||
NET INCOME PER SHARE | |||||||||||||||||||
Basic | $ | 0.86 | $ | 0.39 | $ | 1.48 | $ | 0.83 | |||||||||||
Diluted | $ | 0.83 | $ | 0.38 | $ | 1.43 | $ | 0.81 | |||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES | |||||||||||||||||||
Basic | 15,781 | 15,242 | 15,738 | 15,170 | |||||||||||||||
Diluted | 16,352 | 15,362 | 16,302 | 15,439 |
Six months ended June 30, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
Net income | $ | 23,256 | $ | 12,535 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 9,026 | 9,666 | ||||||||||||||
Provision for doubtful accounts | 53 | 3 | ||||||||||||||
Provision for warranty and returns | 38 | (597 | ) | |||||||||||||
Stock compensation | 5,947 | 4,459 | ||||||||||||||
Loss (gain) on disposal of property and equipment | (33 | ) | 2 | |||||||||||||
Bond premium amortization | 1,223 | 1,060 | ||||||||||||||
Cash provided (used) by changes in operating assets and liabilities | ||||||||||||||||
Accounts receivable | (5,529 | ) | 4,786 | |||||||||||||
Inventories | (2,267 | ) | (3,456 | ) | ||||||||||||
Prepaid expenses and other assets | (1,375 | ) | 548 | |||||||||||||
Accounts payable | 1,894 | (134 | ) | |||||||||||||
Accrued liabilities | (1,027 | ) | 498 | |||||||||||||
Income taxes, including excess tax benefits and deferred income taxes | (5,456 | ) | (95 | ) | ||||||||||||
Net cash provided by operating activities | 25,750 | 29,275 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of property and equipment | (5,005 | ) | (12,729 | ) | ||||||||||||
Proceeds from sale of asset | 34 | 5 | ||||||||||||||
Intangible asset additions | (440 | ) | (377 | ) | ||||||||||||
Purchases of investment securities | (17,092 | ) | (60,090 | ) | ||||||||||||
Proceeds from sale of investment securities | 49,555 | 49,863 | ||||||||||||||
Net cash provided (used) by investing activities | 27,052 | (23,328 | ) | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
Proceeds from exercise of stock options | 5,797 | 7,016 | ||||||||||||||
Proceeds from employee stock purchase plan | 1,041 | 1,384 | ||||||||||||||
Tax benefits from exercise of stock options | 3,425 | 1,985 | ||||||||||||||
Purchase of treasury stock | (1,435 | ) | (5,835 | ) | ||||||||||||
Net cash provided by financing activities | 8,828 | 4,550 | ||||||||||||||
Effect of exchange rate changes on cash | (6,350 | ) | (568 | ) | ||||||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 55,280 | 9,929 | ||||||||||||||
CASH AND CASH EQUIVALENTS, beginning of period | 275,812 | 226,022 | ||||||||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 331,092 | $ | 235,951 | ||||||||||||
NON-CASH INVESTING ACTIVITIES | ||||||||||||||||
Accrued liabilities for property and equipment | $ | 232 | $ | 140 |
GAAP net income | $ | 43,022 | $ | 46,289 | |||
Non-GAAP adjustments: | |||||||
Stock compensation expense (a) | 12,631 | 12,631 | |||||
Depreciation and amortization expense (b) | 18,391 | 18,391 | |||||
Legal settlement (c) | 7,059 | 7,059 | |||||
Provision for income taxes (d) | 18,987 | 20,670 | |||||
Total non-GAAP adjustments | 57,068 | 58,751 | |||||
Adjusted EBITDA | $ | 100,090 | $ | 105,040 | |||
GAAP diluted earnings per share | $ | 2.63 | $ | 2.83 | |||
Non-GAAP adjustments: | |||||||
Stock compensation expense (a) | $ | 0.77 | $ | 0.77 | |||
Amortization expense (e) | $ | 0.11 | $ | 0.11 | |||
Legal settlement (c) | $ | 0.43 | $ | 0.43 | |||
Estimated income tax impact from adjustments (f) | $ | (0.45 | ) | $ | (0.45 | ) | |
Adjusted diluted earnings per share | $ | 3.49 | $ | 3.69 |
(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. |