ICU Medical, Inc. (Nasdaq:ICUI), a leader in the development,
manufacture and sale of innovative medical devices used in infusion
therapy, oncology and critical care applications, today announced
financial results for the first quarter ended March 31, 2016.
First Quarter 2016 Results
First quarter 2016 revenue was $89.9 million, compared to $81.5
million in the same period last year. GAAP net income for the first
quarter of 2016 was $15.9 million, or $0.96 per diluted share, as
compared to GAAP net income of $9.7 million, or $0.60 per diluted
share, for the first quarter of 2015. Adjusted diluted
earnings per share for the first quarter of 2016 were $1.14 as
compared to $1.02 for the first quarter of 2015. Also, adjusted
EBITDA was $32.7 million for the first quarter of 2016 as compared
to $26.0 million for the first quarter of 2015.
Vivek Jain, ICU Medical's Chief Executive Officer, said, "We are
pleased with our revenue, gross margin, adjusted EBITDA and net
income results in the first quarter as we achieved growth in both
our direct and OEM channels."
Revenues by market segment for the three months ended
March 31, 2016 were as follows:
|
|
|
|
|
(dollars in millions) |
|
|
Three months ended March 31,
2016 |
|
Three months ended March 31,
2015 |
|
|
Market Segment |
|
Direct |
|
OEM |
|
Total |
|
Direct |
|
OEM |
|
Total |
|
Total Change |
Infusion Therapy |
|
$ |
35.5 |
|
|
$ |
29.5 |
|
|
$ |
65.0 |
|
|
$ |
31.1 |
|
|
$ |
27.7 |
|
|
$ |
58.8 |
|
|
$ |
6.2 |
|
Oncology |
|
|
8.4 |
|
|
|
3.3 |
|
|
|
11.7 |
|
|
|
6.0 |
|
|
|
2.7 |
|
|
|
8.7 |
|
|
|
3.0 |
|
Critical Care |
|
|
13.0 |
|
|
|
- |
|
|
|
13.0 |
|
|
|
13.6 |
|
|
|
0.1 |
|
|
|
13.7 |
|
|
|
(0.7 |
) |
Other |
|
|
0.2 |
|
|
|
- |
|
|
|
0.2 |
|
|
|
0.3 |
|
|
|
- |
|
|
|
0.3 |
|
|
|
(0.1 |
) |
|
|
$ |
57.1 |
|
|
$ |
32.8 |
|
|
$ |
89.9 |
|
|
$ |
51.0 |
|
|
$ |
30.5 |
|
|
$ |
81.5 |
|
|
$ |
8.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company ended the first quarter of 2016 with a strong
balance sheet. As of March 31, 2016 cash, cash equivalents and
investment securities totaled $383.7 million and working capital
was $481.4 million. During Q1 2016 the Company used $15.4
million to repurchase 174,885 shares of our common stock.
Additionally, the Company generated operating cash flow of $14.8
million for the first quarter of 2016.
Fiscal Year 2016 Guidance
For the year, the Company is reiterating its 2016
guidance. It expects revenue to be in the range of $355
million to $365 million; adjusted diluted earnings per share to be
in the range of $4.34 to $4.46, and adjusted EBITDA to be in the
range of $123 million to $127 million.
Conference Call
The Company will release its first quarter 2016
results at approximately 4:00 p.m. EDT (1:00 p.m. PDT) and will be
conducting a conference call concerning those results at 4:30 p.m.
EDT (1:30 p.m. PDT) on Tuesday, May 10, 2016. The call can be
accessed at (800) 936-9761, international (408) 774-4587,
conference ID 94546223. The conference call will be simultaneously
available by webcast, which can be accessed by going to the
Company's website at www.icumed.com, clicking on the Investors tab,
clicking on the Webcast icon and following the prompts. The webcast
will also be available by replay.
About ICU Medical, Inc.
About ICU Medical, Inc. (Nasdaq:ICUI) develops, manufactures and
sells innovative medical devices used in vascular therapy, oncology
and critical care applications. ICU Medical’s products improve
patient outcomes by helping prevent bloodstream infections and
protecting healthcare workers from exposure to infectious diseases
or hazardous drugs. The company’s complete product line includes
custom IV systems, closed delivery systems for hazardous drugs,
needlefree IV connectors, catheters and cardiac monitoring systems.
ICU Medical is headquartered in San Clemente, California. More
information about ICU Medical, Inc. can be found at
www.icumed.com.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such statements contain words such as ''will,''
''expect,'' ''believe,'' ''could,'' ''would,'' ''estimate,''
''continue,'' ''build,'' ''expand'' or the negative thereof or
comparable terminology, and may include (without limitation)
information regarding the Company's expectations, goals or
intentions regarding the future. These forward-looking statements
are based on Management's current expectations, estimates,
forecasts and projections about the Company, our full year 2016
guidance and assumptions Management believes are reasonable, all of
which are subject to risks and uncertainties that could cause
actual results and events to differ materially from those stated in
the forward-looking statements. These risks and uncertainties
include, but are not limited to, decreased demand for the Company's
products, decreased free cash flow, the inability to recapture
conversion delays or part/resource shortages on anticipated timing,
or at all, changes in product mix, increased competition from
competitors, lack of continued growth or improving efficiencies and
unexpected changes in the Company's arrangements with its largest
customers. Future results are subject to risks and uncertainties,
including the risk factors, and other risks and uncertainties,
described in the Company's filings with the Securities and Exchange
Commission, which include those in the Annual Report on Form 10-K
for the year ended December 31, 2015. Forward-looking statements
contained in this press release are made only as of the date
hereof, and the Company undertakes no obligation to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise.
|
ICU MEDICAL, INC. AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands) |
|
|
March 31,
2016 |
|
December 31, 2015 |
|
|
|
(unaudited) |
|
|
|
(1 |
) |
|
ASSETS |
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
347,370 |
|
|
$ |
|
336,164 |
|
|
Investment
securities |
|
36,351 |
|
|
|
|
41,233 |
|
|
Cash,
cash equivalents and investment securities |
|
383,721 |
|
|
|
|
377,397 |
|
|
Accounts receivable,
net |
|
55,674 |
|
|
|
|
57,847 |
|
|
Inventories |
|
49,240 |
|
|
|
|
43,632 |
|
|
Prepaid income
taxes |
|
11,297 |
|
|
|
|
14,366 |
|
|
Prepaid expenses and
other current assets |
|
11,198 |
|
|
|
|
7,631 |
|
|
Assets held for
sale |
|
4,304 |
|
|
|
|
4,134 |
|
|
TOTAL
CURRENT ASSETS |
|
515,434 |
|
|
|
|
505,007 |
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT,
net |
|
74,635 |
|
|
|
|
74,320 |
|
|
GOODWILL |
|
6,463 |
|
|
|
|
6,463 |
|
|
INTANGIBLE ASSETS,
net |
|
23,476 |
|
|
|
|
23,936 |
|
|
DEFERRED INCOME
TAXES |
|
15,949 |
|
|
|
|
17,099 |
|
|
TOTAL ASSETS |
$ |
635,957 |
|
|
$ |
|
626,825 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
Accounts payable |
$ |
12,678 |
|
|
$ |
|
13,670 |
|
|
Accrued
liabilities |
|
21,328 |
|
|
|
|
28,948 |
|
|
TOTAL
CURRENT LIABILITIES |
|
34,006 |
|
|
|
|
42,618 |
|
|
|
|
|
|
LONG-TERM
LIABILITIES |
|
1,380 |
|
|
|
|
1,476 |
|
|
DEFERRED INCOME
TAXES |
|
3,170 |
|
|
|
|
1,372 |
|
|
INCOME TAX
LIABILITY |
|
1,488 |
|
|
|
|
1,488 |
|
|
COMMITMENTS AND
CONTINGENCIES |
|
- |
|
|
|
|
- |
|
|
STOCKHOLDERS’
EQUITY: |
|
|
|
Convertible preferred
stock |
|
- |
|
|
|
|
- |
|
|
Common stock |
|
1,618 |
|
|
|
|
1,608 |
|
|
Additional paid-in
capital |
|
150,090 |
|
|
|
|
145,125 |
|
|
Treasury stock |
|
(8,933 |
) |
|
|
|
- |
|
|
Retained earnings |
|
469,797 |
|
|
|
|
453,896 |
|
|
Accumulated other
comprehensive loss |
|
(16,659 |
) |
|
|
|
(20,758 |
) |
|
TOTAL
STOCKHOLDERS' EQUITY |
|
595,913 |
|
|
|
|
579,871 |
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
$ |
635,957 |
|
|
$ |
|
626,825 |
|
|
|
|
|
|
______________________________________________________
(1) December 31, 2015 balances were derived from
audited consolidated financial statements.
|
ICU MEDICAL, INC. AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) |
(In thousands, except per share data) |
|
|
|
Three Months Ended March 31, |
|
|
2016 |
|
|
|
2015 |
|
REVENUES: |
|
|
|
Net
sales |
$ |
89,849 |
|
|
$ |
81,323 |
|
Other |
|
6 |
|
|
|
161 |
|
TOTAL REVENUE |
|
89,855 |
|
|
|
81,484 |
|
COST OF GOODS SOLD |
|
40,622 |
|
|
|
38,970 |
|
GROSS
PROFIT |
|
49,233 |
|
|
|
42,514 |
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
Selling,
general and administrative |
|
21,975 |
|
|
|
20,174 |
|
Research
and development |
|
3,313 |
|
|
|
4,308 |
|
Legal
settlement |
|
- |
|
|
|
7,059 |
|
TOTAL
OPERATING EXPENSES |
|
25,288 |
|
|
|
31,541 |
|
INCOME
FROM OPERATIONS |
|
23,945 |
|
|
|
10,973 |
|
OTHER INCOME, net |
|
147 |
|
|
|
526 |
|
INCOME
BEFORE INCOME TAXES |
|
24,092 |
|
|
|
11,499 |
|
PROVISION FOR INCOME
TAXES |
|
(8,191 |
) |
|
|
(1,813 |
) |
NET INCOME |
$ |
15,901 |
|
|
$ |
9,686 |
|
NET INCOME PER
SHARE |
|
|
|
|
|
|
|
Basic |
|
0.99 |
|
|
$ |
0.62 |
|
Diluted |
|
0.96 |
|
|
$ |
0.60 |
|
WEIGHTED AVERAGE NUMBER
OF SHARES |
|
|
|
Basic |
|
16,042 |
|
|
|
15,693 |
|
Diluted |
|
16,556 |
|
|
|
16,234 |
|
|
|
|
|
|
|
|
|
|
ICU MEDICAL, INC. AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) |
(In thousands) |
|
|
Three months ended March
31, |
|
|
2016 |
|
|
|
2015 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
Net income |
$ |
15,901 |
|
|
$ |
9,686 |
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
4,801 |
|
|
|
4,629 |
|
Provision
for warranty and returns |
|
39 |
|
|
|
31 |
|
Stock
compensation |
|
3,808 |
|
|
|
2,813 |
|
(Gain)
loss on disposal of property and equipment |
|
(1 |
) |
|
|
2 |
|
Bond
premium amortization |
|
528 |
|
|
|
943 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts
receivable |
|
2,552 |
|
|
|
(4,947 |
) |
Inventories |
|
(4,866 |
) |
|
|
(1,785 |
) |
Prepaid
expenses and other assets |
|
(3,474 |
) |
|
|
(980 |
) |
Accounts
payable |
|
(1,383 |
) |
|
|
1,951 |
|
Accrued
liabilities |
|
(8,014 |
) |
|
|
3,300 |
|
Income
taxes, including excess tax benefits and deferred income taxes |
|
4,893 |
|
|
|
(2,392 |
) |
Net cash
provided by operating activities |
|
14,784 |
|
|
|
13,251 |
|
CASH
FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
Purchases
of property and equipment |
|
(3,963 |
) |
|
|
(2,357 |
) |
Proceeds
from sale of assets |
|
1 |
|
|
|
- |
|
Intangible asset additions |
|
(219 |
) |
|
|
(208 |
) |
Purchases
of investment securities |
|
(7,061 |
) |
|
|
(9,205 |
) |
Proceeds
from sale of investment securities |
|
11,802 |
|
|
|
31,785 |
|
Net cash
provided by investing activities |
|
560 |
|
|
|
20,015 |
|
CASH
FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Proceeds
from exercise of stock options |
|
5,421 |
|
|
|
4,777 |
|
Proceeds
from employee stock purchase plan |
|
1,197 |
|
|
|
1,041 |
|
Tax
benefits from exercise of stock options and vested awards |
|
2,511 |
|
|
|
3,059 |
|
Purchase
of treasury stock |
|
(16,897 |
) |
|
|
(1,435 |
) |
Net cash
(used in) provided by financing activities |
|
(7,768 |
) |
|
|
7,442 |
|
Effect of
exchange rate changes on cash |
|
3,630 |
|
|
|
(7,987 |
) |
NET
INCREASE IN CASH AND CASH EQUIVALENTS |
|
11,206 |
|
|
|
32,721 |
|
CASH AND
CASH EQUIVALENTS, beginning of period |
|
336,164 |
|
|
|
275,812 |
|
CASH AND
CASH EQUIVALENTS, end of period |
$ |
347,370 |
|
|
$ |
308,533 |
|
|
Use of Non-GAAP Financial Information
This press release contains financial measures that are not
calculated in accordance with U.S. generally accepted accounting
principles ("GAAP"). The non-GAAP financial measures should
be considered supplemental to, and not as a substitute for, or
superior to, financial measures calculated in accordance with
GAAP. There are material limitations in using these non-GAAP
financial measures because they are not prepared in accordance with
GAAP and may not be comparable to similarly titled non-GAAP
financial measures used by other companies, including peer
companies. Our management believes that the non-GAAP data
provides useful supplemental information to management and
investors regarding our performance and facilitates a more
meaningful comparison of results of operations between current and
prior periods. We use non-GAAP financial measures in addition
to and in conjunction with GAAP financial measures to analyze and
assess the overall performance of our business, in making
financial, operating and planning decisions, and in determining
executive incentive compensation. The non-GAAP financial
measures included in this press release are adjusted EBITDA and
adjusted diluted earnings per share ("Adjusted Diluted
EPS").
Adjusted EBITDA excludes the following items:
Intangible asset amortization expense: We do not acquire
businesses or capitalize certain patent costs on a predictable
cycle. The amount of purchase price allocated to intangible
assets and the term of amortization can vary significantly and are
unique to each acquisition. Capitalized patent costs can vary
significantly based on our current level of development
activities. We believe that excluding amortization of
intangible assets provides the users of our financial statements
with a consistent basis for comparison across accounting
periods;
Depreciation expense: We exclude depreciation expense in
deriving adjusted EBITDA because companies utilize productive
assets of different ages and the depreciable lives can vary
significantly resulting in considerable variability in
depreciation expense among companies;
Stock compensation expense: Stock-based compensation is
generally fixed at the time the stock-based instrument is granted
and amortized over a period of several years. The value of
stock options is determined using a complex formula that
incorporates factors, such as market volatility, that are beyond
our control. The value of our restricted stock awards is
determined using the grant date stock price, which may not be
indicative of our operational performance over the expense
period. Additionally, in order to establish the fair value of
performance-based stock awards, which are currently an element of
our ongoing stock-based compensation, we are required to apply
judgment to estimate the probability of the extent to which
performance objectives will be achieved. Based on the above
factors, we believe it is useful to exclude stock-based
compensation in order to better understand our operating
performance;
Legal settlement: We may incur charges or benefits as well
as legal costs related to litigation and other contingencies.
We exclude these charges or benefits, when significant as well as
the legal costs associated with significant legal matters, because
we do not believe they are an indication of our operating
performance;
Adjusted Diluted EPS excludes, net of tax, intangible
asset amortization expense, stock compensation expense and legal
settlement. We apply our GAAP consolidated effective tax rate
to our non-GAAP financial measures, other than when the underlying
item has a materially different tax treatment.
From time to time in the future, there may be other items that
we may exclude if we believe that doing so is consistent with the
goal of providing useful information to investors and
management.
The following tables reconcile our GAAP and non-GAAP financial
measures:
|
ICU MEDICAL, INC. AND
SUBSIDIARIES |
Reconciliation of GAAP to Non-GAAP Financial
Measures (Unaudited) |
(In thousands, except per share data) |
|
|
Adjusted
EBITDA |
|
Q1 |
|
|
2016 |
|
|
|
2015 |
|
GAAP net
income |
$ |
15,901 |
|
|
$ |
9,686 |
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
Stock
compensation expense |
|
3,808 |
|
|
|
2,813 |
|
Depreciation and amortization expense |
|
4,801 |
|
|
|
4,629 |
|
Legal
settlement |
|
- |
|
|
|
7,059 |
|
Provision
for income taxes |
|
8,191 |
|
|
|
1,813 |
|
Total non-GAAP
adjustments |
|
16,800 |
|
|
|
16,314 |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
32,701 |
|
|
$ |
26,000 |
|
|
|
|
|
|
Adjusted diluted
earnings per share |
|
Q1 |
|
|
2016 |
|
|
|
2015 |
|
GAAP diluted
earnings per share |
$ |
0.96 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
Stock
compensation expense |
$ |
0.23 |
|
|
$ |
0.17 |
|
Amortization expense |
$ |
0.04 |
|
|
$ |
0.04 |
|
Legal
settlement |
$ |
- |
|
|
$ |
0.43 |
|
Estimated
income tax impact from adjustments |
$ |
(0.09 |
) |
|
$ |
(0.22 |
) |
Adjusted diluted
earnings per share |
$ |
1.14 |
|
|
$ |
1.02 |
|
|
|
|
|
|
ICU MEDICAL, INC. AND
SUBSIDIARIES |
Reconciliation of GAAP to Non-GAAP Financial
Measures - Fiscal Year 2016 Outlook (Unaudited) |
(In millions, except per share data) |
|
|
GAAP net
income |
$ |
61 |
|
|
$ |
63 |
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
Stock
compensation expense |
|
15 |
|
|
|
15 |
|
Depreciation and
amortization expense |
|
19 |
|
|
|
19 |
|
Provision for
income taxes |
|
28 |
|
|
|
30 |
|
Total non-GAAP
adjustments |
|
62 |
|
|
|
64 |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
123 |
|
|
$ |
127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted
earnings per share |
$ |
3.62 |
|
|
$ |
3.74 |
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
Stock
compensation expense |
$ |
0.89 |
|
|
$ |
0.89 |
|
Amortization
expense |
$ |
0.17 |
|
|
$ |
0.17 |
|
Estimated income
tax impact from adjustments |
$ |
(0.34 |
) |
|
$ |
(0.34 |
) |
Adjusted diluted
earnings per share |
$ |
4.34 |
|
|
$ |
4.46 |
|
|
|
|
|
CONTACT:
ICU Medical, Inc.
Scott Lamb, Chief Financial Officer
(949) 366-2183
ICR, Inc.
John Mills, Partner
(646) 277-1254
ICU Medical (NASDAQ:ICUI)
Historical Stock Chart
From Aug 2024 to Sep 2024
ICU Medical (NASDAQ:ICUI)
Historical Stock Chart
From Sep 2023 to Sep 2024