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
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