UNION CITY, Calif.,
April 28, 2016 /PRNewswire/
-- Abaxis, Inc. (NasdaqGS: ABAX), a global diagnostics company
manufacturing point-of-care blood analysis instruments and
consumables for the medical and veterinary markets worldwide, today
reported financial results for the fourth quarter and fiscal year
ended March 31, 2016.
Fourth quarter and fiscal 2016 overview:
- Revenues from continuing operations of $57.0 million for the fourth quarter, up 10% over
last year's comparable quarter, and $218.9
million for fiscal 2016, up 8% year-over-year.
- Diluted EPS from continuing operations of $0.36 for the fourth quarter, up 112% over last
year's comparable quarter, and $1.36
for fiscal 2016, up 49% year-over-year.
- Diluted EPS, including discontinued operations, of $0.39 for the fourth quarter, down 22% over last
year's comparable quarter, and $1.38
for fiscal 2016, up 15% year-over-year.
Revenues highlights:
- Medical market revenues for the fourth quarter of $9.5 million, up 10% over last year's comparable
quarter, and $37.8 million for fiscal
2016, up 7% year-over-year.
- Veterinary market revenues for the fourth quarter of
$46.6 million, up 9% over last year's
comparable quarter, and $177.7
million for fiscal 2016, up 8% year-over-year.
- Revenues from sales of consumables, which include reagent
discs, hematology reagent kits, VSpro specialty cartridges,
i-STAT cartridges and rapid tests, for the fourth quarter of
$43.1 million, up 14% over last
year's comparable quarter, and $165.0
million for fiscal 2016, up 14% year-over year.
- Total medical and veterinary reagent disc revenues for the
fourth quarter of $31.5 million, up
8% over last year's comparable quarter, and $121.1 million for fiscal 2016, up 9%
year-over-year.
- Total medical and veterinary reagent disc sales of 2.5 million
units for the fourth quarter, up 9% over last year's comparable
quarter, and 9.5 million units for fiscal 2016, up 12%
year-over-year.
- Total medical and veterinary instrument revenues for the fourth
quarter of $11.1 million, down 5%
over last year's comparable quarter, and $43.0 million for fiscal 2016, down 12%
year-over-year.
- Total medical and veterinary instrument sales of 1,594 units
for the fourth quarter, up 4% over last year's comparable quarter,
and 6,078 units for fiscal 2016, down 10% year-over-year.
- North America revenues for the
fourth quarter of $46.4 million, up
11% over last year's comparable quarter, and $175.0 million for fiscal 2016, up 7%
year-over-year.
- International revenues for the fourth quarter of $10.5 million, up 3% over last year's comparable
quarter, and $43.9 million for fiscal
2016, up 12% year-over-year.
Other financial highlights:
- Gross profit from continuing operations of $32.3 million for the fourth quarter, up 14% over
last year's comparable quarter, and $123.3
million for fiscal 2016, up 13% year-over-year.
- Cash, cash equivalents and investments as of March 31, 2016 of $152.3
million.
- Abaxis paid dividends of $10.0
million in fiscal 2016.
- Abaxis repurchased 0.3 million shares of common stock at a
total purchase price of $13.0 million
in fiscal 2016.
Management Discussion
Clint Severson, chairman and
chief executive officer of Abaxis, commented, "We are pleased with
the Company's financial performance in the fourth quarter and the
fiscal year as we achieved our 15th consecutive year of
profitability. For both the quarter and the year we achieved
records in total revenues, revenues from consumables sales and
medical market revenues. We are particularly pleased with
annual revenues from our VetScan Rapid Tests increasing by 81%
year-over-year. This is a relatively new business that
complements our VetScan reagent discs. We believe that our
menu of expanded lateral flow tests has great potential in the
coming years. Our strong portfolio of consumable products has
continued to perform at a high level generating significant cash
flow, maintaining the strong financial foundation of Abaxis and
enabling us to take advantage of opportunities that may present
themselves."
"We continued to have a sharp focus on process and manufacturing
improvements in fiscal 2016 and generated a gross margin increase
of 252 basis points from fiscal year 2015. We set a record of
9.5 million unit sales of our reagent discs in fiscal 2016.
Total operating expenses decreased by 6% during the fourth quarter
and had a positive impact on income from operations in both the
fourth quarter and fiscal year 2016 with increases of 72% and 35%,
respectively, over last year. We concluded the fiscal year
with $152.3 million in cash, cash
equivalents and investments."
"The continued success of Abaxis is due to the hard work and
dedication of our employees to drive operational efficiencies
throughout the company and deliver reliable diagnostic solutions to
our customers. I greatly appreciate their efforts. Our
point-of-care diagnostic solutions play a critically important role
in accurately diagnosing the conditions of our customer's patients
in both the medical and veterinary markets. We are proud of
the speed, accuracy and reliability of our products. We
remain dedicated to developing new innovative diagnostic products,
leveraging our strategic partnerships and operating the business in
a prudent manner to enhance our market share globally."
Dividend Declared
Abaxis today announced that its Board of Directors declared a
quarterly cash dividend of $0.12 per
common share, to be paid on June 17,
2016, to all shareholders of record as of the close of
business on June 3, 2016. This
represents a 9% increase compared to the prior quarterly dividend
of $0.11 per common share.
Results of Continuing Operations
Quarterly Results
For the fiscal quarter ended March 31,
2016, Abaxis reported revenues from continuing operations of
$57.0 million, as compared with
revenues of $52.0 million for the
comparable period last year, an increase of 10 percent.
Revenues from sales of instruments, which include chemistry
analyzers, hematology instruments, VSpro specialty analyzers
and i‑STAT analyzers, decreased by $0.6
million, or 5 percent, compared to the same period last
year. Revenues from sales of consumables, which include
reagent discs, hematology reagent kits, VSpro specialty
cartridges, i‑STAT cartridges and rapid tests, increased by
$5.3 million, or 14 percent, over the
same period last year. Abaxis reported net income from
continuing operations of $8.3 million
for the fiscal quarter ended March 31,
2016, compared to $3.8 million
for the fiscal quarter ended March
31, 2015. Abaxis' effective tax rate in the fiscal
quarter ended March 31, 2016 was 33
percent, compared to 42 percent for the same period last
year. Abaxis reported diluted net income per share from
continuing operations of $0.36
(calculated based on 22,810,000 shares) for the three-month period
ended March 31, 2016, compared to
$0.17 per share (calculated based on
22,870,000 shares) for the same period last year.
Fiscal 2016 Results
For the fiscal year ended March 31,
2016, Abaxis reported revenues from continuing operations of
$218.9 million, as compared with
revenues of $202.6 million for the
comparable period last year, an increase of 8 percent.
Revenues from instrument sales decreased by $5.6 million, or 12 percent, compared to the
prior year. Revenues from consumables sales increased by
$20.6 million, or 14 percent, over
the prior year. Abaxis reported net income from continuing
operations of $31.1 million for the
fiscal year ended March 31, 2016,
compared to $20.8 million for the
prior year. Abaxis' effective tax rate in the fiscal year
ended March 31, 2016 was 34 percent,
compared to 37 percent for the prior year. Abaxis reported
diluted net income per share from continuing operations of
$1.36 (calculated based on 22,883,000
shares) for fiscal 2016, compared to $0.91 per share (calculated based on 22,787,000
shares) for fiscal 2015.
Other Reported Information
During the fourth quarter of fiscal 2016, Abaxis repurchased 0.3
million shares of common stock at a total purchase price of
$13.0 million and an average per
share price of $40.18. Abaxis
declared and paid a cash dividend of $0.11 per common share, or $2.5 million, to shareholders in the fourth
quarter of fiscal 2016.
In March 2015, we sold our Abaxis
Veterinary Reference Laboratories ("AVRL") business to Antech
Diagnostics, Inc. The sale transaction closed on March 31, 2015. The total purchase price
under the Asset Purchase Agreement was $21.0
million in cash. We received $20.1 million in cash proceeds during the fourth
quarter of fiscal 2015, while the remaining $0.9 million ($0.6
million after-tax) was realized in the fourth quarter of
fiscal 2016, upon meeting certain conditions on the one year
anniversary of the closing.
Non-cash compensation expense recognized for share-based awards
during the fourth quarter of fiscal 2016 was $2.9 million, compared to $2.6 million for the same period last
year.
Conference Call
Abaxis has scheduled a conference call to discuss its financial
results at 4:15 p.m. Eastern Time on
Thursday, April 28, 2016.
Participants can dial (844) 855-9498 or (412) 317-5496 to access
the conference call, or can listen via a live Internet webcast,
which is available in the Investor Relations section of the
company's website at http://www.abaxis.com. A replay of the
call will be available by visiting http://www.abaxis.com for the
next 30 days or by calling (877) 344-7529 or (412) 317-0088,
confirmation code 10083984, through May
5, 2016. This press release is also available prior to
and after the call via Abaxis' website or the Securities and
Exchange Commission's website at http://www.sec.gov.
About Abaxis
Abaxis, Inc. is a worldwide developer, manufacturer and marketer
of portable blood analysis systems that are used in a broad range
of medical specialties in human or veterinary patient care to
provide clinicians with rapid blood constituent measurements.
Our mission is to improve the efficiency of care delivery to and
the quality of life of patients in the medical and veterinary
markets. We provide leading edge technology and tools that
support best medical practices, enabling physicians and
veterinarians to respond to the health needs of their clients at
the point of care while operating economical and profitable
practices. For more information, visit
http://www.abaxis.com.
Forward Looking Statements
This press release includes, and our conference call will
include, statements that constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 (the "Reform Act"), including but not limited to statements
related to Abaxis' beliefs regarding the potential of its products
in the coming years and their ability to perform at a high level,
generate significant cash flow, maintain the strong financial
foundation of Abaxis and enable Abaxis to take advantage of
opportunities, the continued success of Abaxis, plans to develop
new innovative diagnostic products, leverage strategic partnerships
and operate the business in a prudent manner to enhance global
market share, payment of future cash dividends, financial resources
and potential for future growth, market acceptance and penetration
of product offerings, and future revenues, income and results of
operations. Abaxis claims the protection of the safe-harbor
for forward-looking statements contained in the Reform Act.
These forward-looking statements are often characterized by the
terms "may," "believes," "projects," "expects," "anticipates," or
words of similar import, and do not reflect historical facts.
Specific forward-looking statements contained in this press release
or in Abaxis' conference call may be affected by risks and
uncertainties, including, but not limited to, those related to
risks related to Abaxis' manufacturing operations, including the
vulnerability of its manufacturing operations to potential
interruptions and delays and its ability to manufacture products
free of defects, the effect of exchange rate fluctuations on
international operations, fluctuations in quarterly operating
results and difficulty in predicting future results, Abaxis'
dependence on Abbott Point of Care, Inc. for its U.S. medical
sales, the performance of Abaxis' independent distributors and
Abaxis' ability to manage their inventory levels effectively,
dependence on sole or limited source suppliers, the market
acceptance of Abaxis' products, expansion of Abaxis' sales and
marketing and distribution efforts, dependence on key personnel,
the continuing development of its products, required United States
Food and Drug Administration clearance and other government
approvals, risks related to the introduction of new instruments
manufactured by third parties, risks associated with competing in
the human diagnostic market, risks related to the protection of
Abaxis' intellectual property or claims of infringement of
intellectual property asserted by third parties. Readers
should also refer to the section entitled "Risk Factors" in Abaxis'
Annual Report on Form 10‑K, and subsequently filed quarterly
reports on Form 10‑Q filed with the United States Securities and
Exchange Commission. Forward-looking statements speak only as
of the date the statements were made. Abaxis does not
undertake and specifically disclaims any obligation to update any
forward-looking statements.
Financial Tables to Follow
ABAXIS,
INC.
Condensed
Consolidated Statements of Income
(Unaudited)
(In thousands,
except per share data)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
March
31,
|
|
March
31,
|
|
2016
|
2015
|
|
2016
|
2015
|
Revenues
|
$
56,960
|
$
52,017
|
|
$
218,901
|
$
202,593
|
Cost of
revenues
|
24,664
|
23,609
|
|
95,649
|
93,623
|
Gross
profit
|
32,296
|
28,408
|
|
123,252
|
108,970
|
Operating
expenses:
|
|
|
|
|
|
Research
and development
|
4,548
|
4,563
|
|
18,388
|
16,327
|
Sales
and marketing
|
10,760
|
11,954
|
|
42,526
|
42,147
|
General
and administrative
|
4,683
|
4,717
|
|
15,984
|
16,192
|
Total operating
expenses
|
19,991
|
21,234
|
|
76,898
|
74,666
|
Income from
operations
|
12,305
|
7,174
|
|
46,354
|
34,304
|
Interest and
other income (expense), net
|
77
|
(667)
|
|
793
|
(1,262)
|
Income from
continuing operations before income tax provision
|
12,382
|
6,507
|
|
47,147
|
33,042
|
Income tax
provision
|
4,080
|
2,705
|
|
16,073
|
12,239
|
Income from
continuing operations
|
8,302
|
3,802
|
|
31,074
|
20,803
|
Discontinued
operations:
|
|
|
|
|
|
Loss from
discontinued operations, net of tax (1)
|
-
|
(153)
|
|
(3)
|
(1,154)
|
Gain on sale
of discontinued operations, net of tax (1)
|
559
|
7,682
|
|
559
|
7,682
|
Net income
|
$
8,861
|
$
11,331
|
|
$
31,630
|
$
27,331
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
Basic
|
|
|
|
|
|
Continuing operations
|
$
0.37
|
$
0.17
|
|
$
1.37
|
$
0.92
|
Discontinued operations
|
0.02
|
0.33
|
|
0.03
|
0.29
|
Basic net
income per share
|
$
0.39
|
$
0.50
|
|
$
1.40
|
$
1.21
|
Diluted
|
|
|
|
|
|
Continuing operations
|
$
0.36
|
$
0.17
|
|
$
1.36
|
$
0.91
|
Discontinued operations
|
0.03
|
0.33
|
|
0.02
|
0.29
|
Diluted net
income per share
|
$
0.39
|
$
0.50
|
|
$
1.38
|
$
1.20
|
Shares used in the
calculation of net income per share:
|
|
|
|
|
|
Weighted
average common shares outstanding - basic
|
22,593
|
22,538
|
|
22,661
|
22,497
|
Weighted
average common shares outstanding - diluted
|
22,810
|
22,870
|
|
22,883
|
22,787
|
Cash dividends
declared per share
|
$
0.11
|
$
0.10
|
|
$
0.44
|
$
0.40
|
|
|
(1)
|
Represents the AVRL
business within our veterinary market segment, which was sold
during the fourth quarter of fiscal 2015.
|
ABAXIS,
INC.
Condensed
Consolidated Balance Sheets
(Unaudited and in
thousands)
|
|
|
|
|
March
31,
|
March
31,
|
|
2016
|
2015
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$
88,323
|
$
107,015
|
Short-term
investments
|
41,474
|
26,109
|
Receivables,
net
|
35,148
|
29,015
|
Inventories
|
35,131
|
36,179
|
Prepaid
expenses and other current assets
|
6,351
|
2,893
|
Net deferred
tax assets, current
|
4,810
|
6,575
|
Current assets
of discontinued operations
|
961
|
2,075
|
Total
current assets
|
212,198
|
209,861
|
Long-term
investments
|
22,458
|
24,181
|
Investment in
unconsolidated affiliate
|
2,705
|
2,683
|
Property and
equipment, net
|
26,842
|
27,316
|
Intangible assets,
net
|
1,324
|
1,491
|
Net deferred tax
assets, non-current
|
3,903
|
3,413
|
Non-current assets of
discontinued operations
|
-
|
12
|
Other
assets
|
1,950
|
107
|
Total
assets
|
$
271,380
|
$
269,064
|
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$
7,292
|
$
7,277
|
Accrued payroll
and related expenses
|
8,349
|
11,094
|
Accrued
taxes
|
1,145
|
4,829
|
Current
liabilities of discontinued operations
|
112
|
5,536
|
Other accrued
liabilities
|
9,393
|
9,804
|
Deferred
revenue
|
1,600
|
1,322
|
Warranty
reserve
|
1,281
|
1,423
|
Total
current liabilities
|
29,172
|
41,285
|
Non-current
liabilities:
|
|
|
Deferred
revenue
|
2,274
|
3,219
|
Warranty
reserve
|
1,927
|
1,733
|
Net deferred
tax liabilities
|
384
|
310
|
Notes payable,
less current portion
|
379
|
480
|
Other
non-current liabilities
|
932
|
1,843
|
Total
non-current liabilities
|
5,896
|
7,585
|
Total
liabilities
|
35,068
|
48,870
|
Shareholders'
equity:
|
|
|
Common
stock
|
127,016
|
132,559
|
Retained
earnings
|
109,303
|
87,643
|
Accumulated
other comprehensive loss
|
(7)
|
(8)
|
Total
shareholders' equity
|
236,312
|
220,194
|
Total
liabilities and shareholders' equity
|
$
271,380
|
$
269,064
|
Revenues by
Geographic Region and Customer Group
(Unaudited and in
thousands)
|
|
The following table
presents our revenues by source for the three and twelve months
ended March 31, 2016 and 2015.
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
March
31,
|
|
March
31,
|
Revenues by
Geographic Region
|
2016
|
2015
|
|
2016
|
2015
|
North
America
|
$
46,423
|
$
41,776
|
|
$
175,019
|
$
163,308
|
International
|
10,537
|
10,241
|
|
43,882
|
39,285
|
Total
revenues
|
$
56,960
|
$
52,017
|
|
$
218,901
|
$
202,593
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
March
31,
|
|
March
31,
|
Revenues by
Customer Group
|
2016
|
2015
|
|
2016
|
2015
|
Medical
Market
|
$
9,528
|
$
8,657
|
|
$
37,845
|
$
35,364
|
Veterinary
Market
|
46,583
|
42,564
|
|
177,667
|
164,018
|
Other
|
849
|
796
|
|
3,389
|
3,211
|
Total
revenues
|
$
56,960
|
$
52,017
|
|
$
218,901
|
$
202,593
|
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visit:http://www.prnewswire.com/news-releases/abaxis-reports-financial-performance-for-the-fourth-quarter-and-fiscal-2016-and-declares-a-9-increase-in-quarterly-cash-dividend-300259489.html
SOURCE Abaxis, Inc.