-----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, OOAE8Wq+/v8eI3s1Tn2nIOM1/bkueG8ARalBlBzvZB6eM5J300fahSdlHIOVuxKv 11eMPbIhHhrCNuIz1JZxzg== 0000950135-03-003864.txt : 20030717 0000950135-03-003864.hdr.sgml : 20030717 20030717080246 ACCESSION NUMBER: 0000950135-03-003864 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030717 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030717 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ZOLL MEDICAL CORPORATION CENTRAL INDEX KEY: 0000887568 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 042711626 STATE OF INCORPORATION: MA FISCAL YEAR END: 0928 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20225 FILM NUMBER: 03790262 BUSINESS ADDRESS: STREET 1: 32 SECOND AVENUE CITY: BURLINGTON STATE: MA ZIP: 01803-4420 BUSINESS PHONE: 7812290020 MAIL ADDRESS: STREET 1: 32 SECOND AVENUE CITY: BURLINGTON STATE: MA ZIP: 01803-4420 8-K 1 b47213zme8vk.txt ZOLL MEDICAL CORPORATION UNITED STATES 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): July 17, 2003 ZOLL MEDICAL CORPORATION (Exact Name of Registrant as Specified in Charter) Massachusetts 000-20225 04-2711626 (State or Other Jurisdic (Commission File (IRS Employer of Incorporation) Number) Identification No.) 32 Second Avenue, Northwest Park, Burlington, Massachusetts 01803 (Address of principal executive offices) (781) 229-0020 (Registrant's telephone number, including area code) ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibits Exhibit No. Description ----------- ----------- 99.1 Press release issued July 17, 2003 ITEM 9. REGULATION FD DISCLOSURE The following information is being provided under Item 12 - Results of Operations and Financial Condition. On July 17, 2003, ZOLL Medical Corporation issued the press release attached to this Form 8-K as Exhibit 99.1. 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. Dated: July 17, 2003 ZOLL MEDICAL CORPORATION By: /s/ Richard A. Packer --------------------------------------- Name: Richard A. Packer Title: Chairman and Chief Executive Officer EX-99.1 3 b47213zmexv99w1.txt PRESS RELEASE ISSUED JULY 17, 2003 EXHIBIT 99.1 PRESS RELEASE For further information contact: A. Ernest Whiton Chief Financial Officer ZOLL Medical Corporation 781-229-0020 FOR IMMEDIATE RELEASE ZOLL MEDICAL CORPORATION ANNOUNCES RECORD THIRD QUARTER RESULTS Burlington, MA, July 17, 2003 - ZOLL Medical Corporation (Nasdaq: ZOLL), a manufacturer of non-invasive cardiac resuscitation devices which provide pacing and defibrillation, today announced record third quarter revenues of $44,716,000, an increase of 29% as compared to revenues of $34,792,000 in the third quarter of last year. Net income for the quarter was $2,947,000, or $0.32 per diluted share, compared to $1,899,000, or $0.21 for the comparable prior year quarter, an increase of 55%. The Company experienced growth in all major business segments during the third quarter. Total North American shipments increased 24% as compared to the previous year. Equipment sales to the North American hospital market increased 15% to $13.7 million, as compared to the third quarter of 2002. North American pre-hospital equipment sales increased 45% to $15.1 million over the same period a year ago. International sales increased 44% to $10.9 million as compared to the prior year quarter. Total sales of the new AED Plus product achieved $4.8 million, compared to just under $0.8 million last year. Gross margins for the third quarter decreased slightly to 56.7% as compared to 57.4% in the prior year quarter. This decrease reflected increased shipments to the military market as compared to last year, including the balance of the US Military order and shipments to the German Army. These shipments have lower gross margins due to volume pricing. Commenting on the third quarter results, Richard A. Packer, President and Chief Executive Officer of ZOLL, observed, "We achieved another solid quarter of growth in revenue and earnings. International investments continue to pay off as our strengthened distribution has allowed us to win new customers. In North America, while the purchasing environment continues to be challenging in our core EMS and Hospital markets, the new AED Plus and our military business have allowed us to continue to grow." Reviewing ZOLL's progress in the AED market, Mr. Packer stated, "AED Plus sales increased significantly over the prior year as we were just starting to ship last year. We continue to expect to exceed $20 million in AED Plus sales this year, which would give us approximately 10% market share in our first full year. However, this market is highly competitive and we need to ramp up our level of effort if we are to continue to grow quickly. We will continue to focus on building distribution channels in this market and plan on adding significant resources to achieve our objectives. This market holds tremendous potential for ZOLL." Commenting on the short-term outlook, Mr. Packer said, "We expect to finish fiscal 2003 with a strong fourth quarter. Our outlook has remained unchanged. We remain cautious about the North American EMS and Hospital markets as we continue to see evidence of pressure on capital budgets. We believe International and AED's will drive our growth." Mr. Packer concluded his comments, "Over the long-term, we see strong opportunities for growth across all our major markets driven by continued emphasis on the need to shorten response times to cardiac arrest and the technology shift to biphasic. New opportunities to expand our portfolio of resuscitation products, such as the ResQPOD and the Lifevest, will become increasingly important. In spite of some difficult short term market conditions, we see this as a time to invest in our future as we expand our global market presence." ZOLL Medical Corporation, headquartered in Burlington, MA, designs, manufactures and markets an integrated line of proprietary, non-invasive resuscitation devices and disposable electrodes. Used by health care professionals to provide both types of cardiac resuscitation - pacing and defibrillation - these products are essential in the emergency treatment of cardiac arrest victims, both inside and outside the hospital. ZOLL also designs and markets software that automates collection and management of both clinical and non-clinical data for emergency medical service providers. ZOLL has operations in the United States, Canada, United Kingdom, Germany, France, the Netherlands, and Australia, and business partners in all of the world's major markets. For more information about ZOLL and its products, visit the ZOLL web site at www.zoll.com. Certain statements contained in this press release, including statements regarding the anticipated development of the Company's business, the intent, belief or current expectations of the Company, its directors or its officers, primarily with respect to the Company's business model and future operating performance of the Company, including expectations regarding results in future periods, operating performance, our ability to grow AED sales, our ability to increase our International sales, our anticipation regarding second half results, our ability to capture market share and other statements contained herein regarding matters that are not historical facts, are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those factors discussed in the section entitled "Risk Factors" in the Company's Quarterly Report on Form 10-Q filed with the SEC on May 14, 2003, including the future performance of the direct sales operations, as well as uncertainties regarding the market acceptance and profitability of the ZOLL AED Plus, the length and severity of the current economic slowdown and its impact on capital spending budgets, the reduction in overall capital equipment expenditures in the hospital and pre-hospital markets, the impact of governmental budget restraints on the purchase of capital equipment, the impact on the Company's operations during its planned move to Chelmsford, Massachusetts, the length and severity of the current SARS outbreak, or severe acute respiratory syndrome, the continued war in the Middle East, the impact of the war on terrorism, the potential disruption in the transportation industry on the Company's supply chain and product distribution channels, and the desire or ability of other parties to purchase the Company's products. (Financial Results to Follow) ZOLL MEDICAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
June 29, September 29, 2003 2002 ---- ---- ASSETS Current assets: Cash and cash equivalents $ 56,050 $ 55,658 Short-term investments 10,331 10,130 Accounts receivable, net 42,288 42,927 Inventory 35,826 29,140 Prepaid expenses and other current assets 3,889 4,049 -------- -------- Total current assets 148,384 141,904 Property and equipment, net 20,708 19,542 Other assets, net 8,610 4,408 -------- -------- $177,702 $165,854 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 7,992 $ 10,014 Accrued expenses and other liabilities 17,112 12,780 -------- -------- Total current liabilities 25,104 22,794 Deferred income taxes 1,148 1,148 Total stockholders' equity 151,450 141,912 -------- -------- $177,702 $165,854 ======== ========
ZOLL MEDICAL CORPORATION CONDENSED CONSOLIDATED INCOME STATEMENTS (IN THOUSANDS, EXCEPT PER SHARE AND SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED ------------------ ----------------- June 29, June 30, June 29, June 30, 2003 2002 2003 2002 ---- ---- ---- ---- Net sales $ 44,716 $ 34,792 $ 134,397 $ 102,850 Cost of goods sold 19,353 14,810 60,541 44,716 ---------- ---------- ---------- ---------- Gross profit 25,363 19,982 73,856 58,134 Expenses: Selling and marketing 14,817 12,056 44,214 34,488 General and administrative 3,088 2,997 9,298 8,015 Research and development 3,575 2,922 10,275 8,572 ---------- ---------- ---------- ---------- Total expenses 21,480 17,975 63,787 51,075 Income from operations 3,883 2,007 10,069 7,059 Income before taxes 4,398 2,873 11,914 8,616 ========== ========== ========== ========== Net income $ 2,947 $ 1,899 $ 7,983 $ 5,690 ========== ========== ========== ========== Earnings per share: Basic $ 0.33 $ 0.21 $ 0.89 $ 0.64 ========== ========== ========== ========== Diluted $ 0.32 $ 0.21 $ 0.87 $ 0.62 ========== ========== ========== ========== Weighted average common shares: Basic 9,056,000 8,929,000 9,019,000 8,912,000 Diluted 9,220,000 9,181,000 9,203,000 9,157,000
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