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Haemonetics Reports Strong Double Digit Growth in Revenue, Net Income, and EPS for Fiscal 2009 and Issues Guidance for Continued, Strong Growth in Fiscal 2010

BRAINTREE, Mass., May 4 /PRNewswire-FirstCall/ -- Haemonetics Corporation (NYSE: HAE) today reported record revenues and earnings for fiscal 2009 and its eighth consecutive quarter of double digit revenue growth. The Company also announced fiscal 2010 guidance, including continued double digit growth in earnings.

For the year, Haemonetics reported GAAP net revenues of $598 million, up 16%; net income of $59 million, up 14%, and earnings per share of $2.27, up 17%. Excluding restructuring charges in both fiscal 2008 and 2009, adjusted full year net income was $64 million, up 14%, and adjusted earnings per share were $2.45, up 17%(1).

Fourth quarter fiscal 2009 GAAP net revenues were $152 million, up 10%; net income was $14 million, up 1%, and earnings per share were $0.53, up 3%. Excluding restructuring charges, adjusted fourth quarter net income was $17 million, up 10%, and earnings per share were $0.65, up 12%(1).

Haemonetics ended the year with $157 million in cash and $6 million of debt, and generated $62 million of free cash flow. In the year, cash was used for a $60 million share repurchase which Haemonetics completed in the second quarter of fiscal 2009.

Brian Concannon, Haemonetics' President and CEO, said, "Fiscal 2009 was a strong year operationally and strategically. I'm very pleased with our results. We maintained the momentum of fiscal 2008 with double digit growth and strengthened margins down the P&L, while simultaneously completing business transformation, integrating the TEG(R) business, and expanding our blood management solutions value proposition."

STRATEGIC AND SEGMENT GROWTH HIGHLIGHTS(1)

Haemonetics continues to make progress expanding its business. The Company reported the following highlights:

    --  Preferred provider contracts with Octapharma US in its plasma business
        which can capitalize on ongoing collection market growth
    --  Launch of a new plasma protocol that reduces plasma collection times,
        and therefore, significantly improves customers' productivity
    --  Ongoing business development activity culminating in the acquisitions
        of Altivation(R) Software in March 2009 and Neoteric Technologies in
        April 2009 which strategically broadened the Company's blood
        management solutions
    --  Integration and expanded geographic marketing of the TEG hemostasis
        analyzer business, which was acquired late in fiscal 08

    --  Integration of manufacturing and human resources into the Company's
        enterprise resource planning system with Phase 2 completion in April
        2009

As noted, Haemonetics' fiscal 2009 reported revenues were $598 million, up 16%. Excluding the effects of currency, full year net revenues grew 13%. Reported revenues break down as follows:

Plasma disposables revenue was $202 million for the year, up 30%. Haemonetics' plasma business benefited from long-term contract implementation and from global growth in plasma collections as demand for IVIG and Albumin increases. Haemonetics expects its plasma business will be an ongoing revenue growth driver for the Company.

Blood bank disposables revenue was $143 million for the year, up 5%. The blood bank business benefited from the impact of exchange rates, unit growth in emerging markets, and a contract with Canadian Blood Services which made Haemonetics its preferred provider of platelet collection systems.

Red cell disposables revenue was $50 million for the year, up 7%. Revenue growth was driven by the U.S. business and by the MCS(R) mobile collection system.

Software and services revenue was $44 million for the year, up 12%. Excluding services, software grew 31% for the year. Software growth was driven by implementation of a number of new contracts and growth in the plasma industry.

Surgical/diagnostics disposables revenue was $88 million, up 22% for the quarter. Surgical/Diagnostics revenue benefited from sales of the TEG Thrombelastograph(R) Hemostasis Analyzer which the Company acquired in November 2007. The TEG business is a $20 million business which grew 15% in the year.

OrthoPAT(R) orthopedic perioperative autotransfusion system disposables revenue was $35 million for the year, up 3%. The Company made progress in the year advancing OrthoPAT system sales in early-adopter blood management solutions accounts.

Equipment revenue was $36 million for the year, up 8%. Platelet and plasma collection equipment sales outside the U.S. were particularly strong in the year.

Haemonetics reported balanced double digit revenue growth in all geographies for the year, with North American sales up 20%, European sales up 13%, Japanese sales up 10%, and Asian sales up 16%.

FISCAL 2010 GUIDANCE

Haemonetics announced its fiscal 2010 annual guidance of revenue growth of 8-11%, operating income growth of 12-15%, and earnings per share in a range of $2.75 to $2.85. The Company expects 150 basis point gross margin improvement, 70 basis point operating margin improvement, and a tax rate of 31%. For the year, the Company expects to generate approximately $60 million of free cash flow.

Mr. Concannon added, "With current economic trends, Haemonetics' business solutions become even more critical to our customers, and many economic factors favor our value proposition. We are extremely well positioned to continue to deliver strong operating results."

Haemonetics has posted several items on its website: fiscal 2010 guidance; income scenarios reflecting guidance ranges; and potential fiscal 2010 product line growth. The information is posted at http://www.haemonetics.com/site/content/investor/guidance.asp.

FISCAL 2010 SHARE REPURCHASE PROGRAM

The Company announced that its Board of Directors has approved a $40 million share repurchase.

ANNUAL INVESTOR DAY

Haemonetics is hosting its annual investor and analyst day on Thursday, May 14th at its Corporate headquarters in Braintree, MA. Information on the event is posted on the Haemonetics website.

CONFERENCE CALL

Haemonetics will host a webcast on Monday, May 4th at 10:00 am Eastern to discuss these results. Interested parties can participate at http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=72118&eventID= 2195077.

Haemonetics (NYSE: HAE) is a global healthcare company dedicated to providing innovative blood management solutions for our customers. Together, our devices and consumables, information technology platforms, and consulting services deliver a suite of business solutions to help our customers improve clinical outcomes and reduce the cost of healthcare for blood collectors, hospitals, and patients around the world. Our technologies address important medical markets: blood and plasma component collection, the surgical suite, and hospital transfusion services. To learn more about Haemonetics, visit our web site at http://www.haemonetics.com.

This release contains forward-looking statements that involve risks and uncertainties, including technological advances in the medical field and standards for transfusion medicine and our ability to successfully implement products that incorporate such advances and standards, product demand, market acceptance, regulatory uncertainties, the effect of economic and political conditions, the impact of competitive products and pricing, blood product reimbursement policies and practices, foreign currency exchange rates, changes in customers' ordering patterns, the effect of industry consolidation as seen in the plasma market, the effect of communicable diseases and the effect of uncertainties in markets outside the U.S. (including Europe and Asia) in which we operate and other risks detailed in the Company's filings with the Securities and Exchange Commission. The foregoing list should not be construed as exhaustive. The forward-looking statements are based on estimates and assumptions made by management of the Company and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results and experience could differ materially from the forward-looking statements.

(1) A reconciliation of GAAP to adjusted financial results is included at the end of the financial sections of this press release as well as on the web at http://www.haemonetics.com/investors. In the quarter, Haemonetics incurred $4.4 million in pre-tax restructuring costs. For the year, restructuring costs were $7.0 million pre-tax.



    CONTACT:
    Julie Fallon
    Tel. (781) 356-9517
    Alternate Tel. (617) 320-2401
    fallon@haemonetics.com


                   Haemonetics Corporation Financial Summary
              (Unaudited data in thousands, except per share data)

         Consolidated Statements of Income for the Fourth Quarter FY09

                             3/28/09 As      3/29/08 As     % Inc/(Dec) vs
                              Reported        Reported        Prior Year
                            -----------     -----------    ---------------
    NET REVENUES              $152,397        $138,739                9.8%
    Gross Profit                82,147          70,141               17.1%

      R&D                        6,958           5,790               20.2%
      S,G&A                     57,056          44,042               29.5%
    Operating Expenses          64,014          49,832               28.5%
                                ------          ------

    Operating Income            18,133          20,309              (10.7%)
      Interest Expense              (4)            (24)             (83.3%)
      Interest Income              339           1,028              (67.0%)
      Other (Expense)/
       Income, Net                (103)             69             (249.3%)
                                ------          ------
    Income Before Taxes         18,365          21,382              (14.1%)

    Tax Expense                  4,426           7,589              (41.7%)

                               -------         -------
    NET INCOME                 $13,939         $13,793                1.1%
                               =======         =======

    Net Income Per
     Common Share
     Assuming Dilution           $0.53           $0.52                2.7%

    Weighted Average
     Number of Shares
      Basic                     25,535          25,653
      Diluted                   26,197          26,602

                                                            Inc/(Dec) vs
                                                             prior year
    Profit Margins:                                        profit margin %
                                                         -----------------
    Gross Profit                  53.9%           50.6%               3.3%
    R&D                            4.6%            4.2%               0.4%
    S,G&A                         37.4%           31.7%               5.7%
    Operating Income              11.9%           14.6%              (2.7%)
    Income Before Taxes           12.1%           15.4%              (3.3%)
    Net Income                     9.1%            9.9%              (0.8%)



            Consolidated Statements of Income for Fiscal Year End 09

                             3/28/09 As      3/29/08 As     % Inc/(Dec) vs
                              Reported        Reported        Prior Year
                            -----------     -----------    ---------------
    NET REVENUES              $597,879        $516,440               15.8%
    Gross Profit               308,169         257,725               19.6%

      R&D                       23,859          24,322               (1.9%)
      S,G&A                    198,743         163,116               21.8%
    Operating Expenses         222,602         187,438               18.8%
                               -------         -------

    Operating Income            85,567          70,287               21.7%
      Interest Expense            (191)           (377)             (49.3%)
      Interest Income            2,094           5,418              (61.4%)
      Other (Expense)/
       Income, Net              (2,469)          1,974             (225.1%)
                                ------           -----

    Income Before Taxes         85,001          77,302               10.0%

    Tax Expense                 25,698          25,322                1.5%

                               -------         -------
    NET INCOME                 $59,303         $51,980               14.1%
                               =======         =======

    Net Income Per
     Common Share
     Assuming Dilution           $2.27           $1.94               16.6%

    Weighted Average
     Number of Shares
      Basic                     25,389          25,824
      Diluted                   26,173          26,746

                                                            Inc/(Dec) vs
                                                             prior year
    Profit Margins:                                        profit margin %
                                                         -----------------
    Gross Profit                  51.5%           49.9%               1.6%
    R&D                            4.0%            4.7%              (0.7%)
    S,G&A                         33.2%           31.6%               1.6%
    Operating Income              14.3%           13.6%               0.7%
    Income Before Taxes           14.2%           15.0%              (0.8%)
    Net Income                     9.9%           10.1%              (0.2%)



      Revenue Analysis for the Fourth Quarter and Fiscal Year End 09

                                          Fourth Quarter
                                          --------------
                                                           % Increase
                                3/28/09 As   3/29/08 As     vs. Prior
                                 Reported     Reported        Year
                               -----------  -----------    ----------
    Revenues by Geography
      United States               $73,297      $62,727         16.9%
      International               $79,100      $76,012          4.1%
                                  -------      -------
      Net Revenues               $152,397     $138,739          9.8%
                                 ========     ========

    Disposable Revenues by Product Family

    Donor:
      Plasma                      $51,787      $40,430         28.1%
      Blood Bank                  $35,032      $35,749         (2.0%)
      Red Cell                    $12,857      $12,120          6.1%
                                  -------      -------
                                  $99,676      $88,299         12.9%
                                  -------      -------
    Patient:
      Surgical / Diagnostic       $21,501      $21,178          1.5%
      OrthoPAT                     $9,118       $9,179         (0.7%)
                                   ------       ------
                                  $30,619      $30,357          0.9%
                                  -------      -------

      Subtotal                   $130,295     $118,656          9.8%

    Equipment                      $8,127      $10,527        (22.8%)
    Software & Services           $13,972       $9,556         46.2%
                                  -------       ------
    Net Revenues                 $152,394     $138,739          9.8%
                                 ========     ========


                                        Twelve Months Ended
                                        -------------------
                                                            % Increase
                                3/28/09 As   3/29/08 As      vs. Prior
                                 Reported     Reported         Year
                               -----------  -----------    ----------
    Revenues by Geography
      United States              $279,045     $232,812         19.9%
      International              $318,834     $283,628         12.4%
                                 --------     --------
      Net Revenues               $597,879     $516,440         15.8%
                                 ========     ========

    Disposable Revenues by Product Family

    Donor:
      Plasma                     $202,173     $155,218         30.3%
      Blood Bank                 $143,420     $136,148          5.3%
      Red Cell                    $49,508      $46,377          6.8%
                                  -------      -------
                                 $395,101     $337,743         17.0%
                                 --------     --------
    Patient:
      Surgical / Diagnostic       $87,578      $72,085         21.5%
      OrthoPAT                    $35,419      $34,301          3.3%
                                  -------      -------
                                 $122,997     $106,386         15.6%
                                 --------     --------

      Subtotal                   $518,098     $444,129         16.7%

    Equipment                     $35,515      $32,813          8.2%
    Software & Services           $44,263      $39,498         12.1%
                                  -------      -------
    Net Revenues                 $597,876     $516,440         15.8%
                                 ========     ========



                         Consolidated Balance Sheets

                                                   Period ending
                                             -------------------------
                                             3/28/09           3/29/08
                                             -------           -------

    Assets
    ------
    Cash & Cash Equivalents                 $156,721          $133,553
    Accounts Receivable, Net                 113,598           120,252
    Inventories, Net                          76,522            65,388
    Other Current Assets                      26,668            40,241
                                              ------            ------
        Total Current Assets                 373,509           359,434
    Net PP&E                                 137,807           116,484
    Other Assets                             130,926           133,032
                                             -------           -------

        Total Assets                        $642,242          $608,950
                                            ========          ========


                                                  Period ending
                                             -------------------------
                                             3/28/09           3/29/08
                                             -------           -------

    Liabilities & Stockholders' Equity
    ----------------------------------
    S/T Debt & Current Maturities               $695            $6,326
    Other Current Liabilities                 82,293            91,351
                                              ------            ------
    Total Current Liabilities                 82,988            97,677
    Long-Term Debt                             5,343             6,037
    Other Long-Term Liabilities               14,026            11,048
    Stockholders' Equity                     539,885           494,188
                                             -------           -------

        Total Liabilities & Equity          $642,242          $608,950
                                            ========          ========



                         FREE CASH FLOW RECONCILIATION

                                                        Three Months Ended
                                                        ------------------
                                                         3/28/09  3/29/08
                                                         -------  -------

    GAAP CASH FLOW FROM OPERATIONS                       $47,413  $31,879
                                                         -------  -------

    Capital Expenditures                                 (14,416) (15,293)
    Proceeds from Sale of Property, Plant and Equipment     (139)  (1,315)
                                                            ----   ------
    Net Investment in Property, Plant and Equipment      (14,555) (16,608)
                                                         -------  -------

    Free Cash Flow                                       $32,858  $15,271
                                                         =======  =======


                                                          Twelve Months
                                                               Ended
                                                          -------------
                                                         3/28/09  3/29/08
                                                         -------  -------

    GAAP CASH FLOW FROM OPERATIONS                      $116,596  $77,669
                                                        --------  -------

    Capital Expenditures                                 (56,611) (57,790)
    Proceeds from Sale of Property, Plant and Equipment    2,383    1,834
                                                           -----    -----
    Net Investment in Property, Plant and Equipment      (54,228) (55,956)
                                                         -------  -------

    Free Cash Flow                                       $62,368  $21,713
                                                         =======  =======



                    Haemonetics Corporation Financial Summary
                       Reconciliation of Non-GAAP  Measures

Haemonetics has presented supplemental non-GAAP financial measures as part of this earnings release. A reconciliation is provided below that reconciles each non-GAAP financial measure with the most comparable GAAP measure. The presentation of non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the most directly comparable GAAP measures. There are material limitations to the usefulness of non-GAAP measures on a standalone basis, including the lack of comparability to the GAAP financial results of other companies.

These measures are used by management to monitor the financial performance of the business, inform business decision making, and forecast future results. Performance targets for management are established based upon these non-GAAP measures. In the reconciliations below, we have removed restructuring costs from our GAAP expenses. These restructuring costs result from a significant transformation of our business during our fiscal years 2009 and 2008. This transformation resulted in the formation of a shared service center in Europe, exiting various offices across Europe and Japan and, most recently, in repositioning our technical operations organization. We believe this information is useful for investors because it allows for an evaluation of the Company with a focus on the performance of our core operations.

Non-GAAP Gross Profit

The use of these non-GAAP measures allows management to monitor the level of total gross profits without the costs of our business transformation. We establish our budgets, forecasts, and performance targets on this basis.

Non-GAAP S,G&A and Non-GAAP Operating Expenses

The use of this non-GAAP measure allows management to monitor the ongoing level of spend that is necessary to support the business in a period when we are not transforming our business or completing an acquisition of in-process research and development. We establish our budgets, forecasts, and performance targets excluding these costs.

Non-GAAP Operating Income and Non-GAAP Income before Income Taxes

The use of these non-GAAP measures allows management to monitor the level of operating and total pre-tax profits without the costs of our business transformation. We establish our budgets, forecasts, and performance targets on this basis.

Non-GAAP Net Income and Earnings per Share

The use of these non-GAAP measures allows management to monitor the level of net income and earnings per share excluding both the costs of our business transformation, as well as any related tax effects. We establish our budgets, forecasts, and performance targets on this basis.



    Reconciliation of Non-GAAP Measures for the
    Fourth Quarter of FY09 and FY08

                                           --------  --------
                                           03/28/09  03/29/08
                                           --------  --------
    Non-GAAP Gross Profit
    GAAP Gross Profit                       $82,147   $70,141
    Restructuring Costs                           0         0
                                            -------   -------
    Non-GAAP Gross Profit                   $82,147   $70,141
                                            =======   =======

    Non-GAAP S,G&A
    GAAP S,G&A                              $57,056   $44,042
    Restructuring Costs                      (4,359)   (2,384)
                                            -------   -------
    Non-GAAP S,G&A                          $52,697   $41,658
                                            =======   =======

    Non-GAAP Operating Expenses
    GAAP Operating Expenses                 $64,014   $49,832
    Restructuring Costs                      (4,359)   (2,384)
    Non-GAAP Operating Expenses             $59,655   $47,448
                                            =======   =======

    Non-GAAP Operating Income
    GAAP Operating Income                   $18,133   $20,309
    Restructuring Costs                       4,359     2,384
                                            -------   -------
    Non-GAAP Operating Income               $22,492   $22,693
                                            =======   =======

    Non-GAAP Income Before Taxes
    GAAP Income Before Taxes                $18,365   $21,382
    Restructuring Costs                       4,359     2,384
                                            -------   -------
    Non-GAAP Income Before Taxes            $22,724   $23,766
                                            =======   =======

    Non-GAAP Net Income
    GAAP Net Income                         $13,939   $13,793
    Restructuring Costs                       4,359     2,384
                                            -------   -------
    Tax Benefit Associated
     with Restructuring Costs                (1,381)     (847)
                                            -------   -------
    Non-GAAP NET INCOME                     $16,917   $15,330
                                            =======   =======

    Non-GAAP Net Income Per Common Share
     Assuming Dilution
    GAAP Net Income Per Common Share
     Assuming Dilution                        $0.53     $0.52
    Restructuring Costs After Tax Per
     Common Share Assuming Dilution           $0.11     $0.06
                                              -----     -----
    Non-GAAP Net Income Per Common Share
     Assuming Dilution                        $0.65     $0.58
                                              =====     =====



    Reconciliation of Non-GAAP Measures for FY09 and FY08

                                           --------  --------
                                           03/28/09  03/29/08
                                           --------  --------
    Non-GAAP Gross Profit
    GAAP Gross Profit                      $308,169  $257,725
    Restructuring Costs                          72         0
                                           --------  --------
    Non-GAAP Gross Profit                  $308,241  $257,725
                                           ========  ========

    Non-GAAP S,G&A
    GAAP S,G&A                             $198,743  $163,116
    Restructuring Costs                      (6,964)   (6,307)
                                           --------  --------
    Non-GAAP S,G&A                         $191,779  $156,809
                                           ========  ========

    Non-GAAP Operating Expenses
    GAAP Operating Expenses                $222,602  $187,438
    Restructuring Costs                      (6,964)   (6,307)
                                           --------  --------
    Non-GAAP Operating Expenses            $215,638  $181,131
                                           ========  ========

    Non-GAAP Operating Income
    GAAP Operating Income                   $85,567   $70,287
    Restructuring Costs                       7,036     6,307
                                            -------   -------
    Non-GAAP Operating Income               $92,603   $76,594
                                            =======   =======

    Non-GAAP Income Before Taxes
    GAAP Income Before Taxes                $85,001   $77,302
    Restructuring Costs                       7,036     6,307
                                            -------   -------
    Non-GAAP Income Before Taxes            $92,037   $83,609
                                            =======   =======

    Non-GAAP Net Income
    GAAP Net Income                         $59,303   $51,980
    Restructuring Costs                       7,036     6,307
    Tax Benefit Associated with
     Restructuring Costs                     (2,320)   (2,067)
                                            -------   -------
    Non-GAAP NET INCOME                     $64,019   $56,220
                                            =======   =======

    Non-GAAP Net Income Per Common Share
     Assuming Dilution
    GAAP Net Income Per Common Share
     Assuming Dilution                        $2.27     $1.94
    Restructuring Costs After Tax Per
     Common Share Assuming Dilution           $0.18     $0.16
                                              -----     -----
    Non-GAAP Net Income Per Common Share
     Assuming Dilution                        $2.45     $2.10
                                              =====     =====

SOURCE  Haemonetics Corporation

    -0-                           05/04/2009
    /CONTACT:  Julie Fallon of Haemonetics Corporation, +1-781-356-9517, or
Alternate Tel., +1-617-320-2401, fallon@haemonetics.com/
    /Web Site:  http://www.haemonetics.com /
    (HAE)

CO:  Haemonetics Corporation

ST:  Massachusetts
IN:  MEQ HEA
SU:  ERN ERP CCA

PR
-- NE09403 --
4503 05/04/2009 08:00 EDT http://www.prnewswire.com