First Quarter 2021 Highlights
- Product revenue increased 10.9% to $299.0 million, or 9.5% on a
constant currency basis;
- GAAP net income per diluted share was $0.92; and
- Non-GAAP net income per diluted share was $0.90.
Masimo (Nasdaq: MASI) today announced its financial results for
the first quarter of 2021, ended April 3, 2021.
First Quarter 2021 Results:
Product revenue increased 10.9% to $299.0 million, or 9.5% on a
constant currency basis, compared to $269.6 million in the first
quarter of 2020. Excluding handheld and fingertip pulse oximeters,
shipments of noninvasive technology boards and instruments were
66,000 in the first quarter of 2021, compared to 72,100 in the
first quarter of 2020.
GAAP operating margin for the first quarter 2021 was 22.0%
compared to 25.6% in the first quarter of 2020. First quarter 2021
non-GAAP operating margin was 22.9% compared to 26.3% in the first
quarter of 2020.
For the first quarter of 2021, GAAP net income was $53.4
million, or $0.92 per diluted share compared to net income of $64.5
million, or $1.12 per diluted share, in 2020. Non-GAAP net income
was $52.1 million, or $0.90 per diluted share, compared to net
income of $55.9 million, or $0.97 per diluted share, in 2020.
The Company repurchased approximately 547,000 shares of Masimo
common stock for a total cost of approximately $128.9 million
during the first quarter of 2021. Total cash and cash equivalents
were $552.0 million as of April 3, 2021.
Joe Kiani, Chairman and Chief Executive Officer of Masimo, said,
“Our first quarter results illustrate the resiliency of our
customers and our business. Following a year in 2020 where we
achieved over 20% revenue growth and shipped over two times the
usual number of drivers due to the rise of the COVID pandemic, we
delivered double-digit revenue growth and driver shipments that
exceeded expectations in the first quarter. We are happy to see
signs of the pandemic receding in most states in the U.S. and in
many countries with the successful development and deployment of
vaccines, and expect hospital census to eventually return to
pre-COVID levels. We met the moment in 2020 by not only fulfilling
unprecedented demand for our products, but also by delivering new
innovative products that are life savers. There are more
advancements ahead which we believe will be well received by our
existing and new customers around the world.”
2021 Financial Guidance
The Company provided the following updated estimates for its
full-year 2021 guidance:
2021 Updated
Guidance(1)
Prior 2021 Guidance(1)
(in millions, except percentages and
earnings per share)
GAAP
Non-GAAP
GAAP
Non-GAAP
Total revenue
$
1,205.0
$
1,205.0
$
1,200.0
$
1,200.0
Product revenue
$
1,205.0
$
1,205.0
$
1,200.0
$
1,200.0
Percentage growth - as reported
5.4
%
N/A
4.9
%
N/A
Percentage growth - constant currency
N/A
4.5
%
N/A
3.6
%
Gross margin
66.7
%
67.0
%
66.8
%
67.0
%
Operating margin
23.2
%
24.5
%
23.5
%
24.5
%
Earnings per diluted share
$
3.83
$
3.83
$
3.81
$
3.80
Estimated tax rate
20.0
%
24.3
%
20.7
%
24.1
%
______________
(1) Updated guidance provided April 26,
2021. Prior guidance provided February 23, 2021.
- Product revenue increasing to $1.205 billion, which reflects
reported growth of 5.4% and constant currency growth of 4.5%;
- GAAP earnings per diluted share increasing to $3.83;
- Non-GAAP earnings per diluted share increasing to $3.83;
- Included in our full-year 2021 revenue guidance is
approximately $10.0 million of year-over-year currency tailwinds
compared to $15.0 million of currency tailwinds in our prior
guidance.
Supplementary Non-GAAP Financial Information
For additional non-GAAP financial details, please visit the
Investor Relations section of the Company’s website at www.masimo.com to access Supplementary Financial
Information.
Non-GAAP Financial Measures
The non-GAAP financial measures contained herein are a
supplement to the corresponding financial measures prepared in
accordance with U.S. GAAP. The non-GAAP financial measures
presented exclude the items described below. Management believes
that adjustments for these items assist investors in making
comparisons of period-to-period operating results. Furthermore,
management also believes that these items are not indicative of the
Company’s on-going core operating performance. These non-GAAP
financial measures have certain limitations in that they do not
reflect all of the costs associated with the operations of the
Company’s business as determined in accordance with GAAP.
Therefore, investors should consider non-GAAP financial measures
in addition to, and not as a substitute for, or as superior to,
measures of financial performance prepared in accordance with GAAP.
The non-GAAP financial measures presented by the Company may be
different from the non-GAAP financial measures used by other
companies.
The Company has presented the following non-GAAP measures to
assist investors in understanding the Company’s core net operating
results on an on-going basis: (i) constant currency product revenue
growth %, (ii) non-GAAP net income, (iii) non-GAAP (net income)
earnings per diluted share and (iv) non-GAAP operating
income/margin. These non-GAAP financial measures may also assist
investors in making comparisons of the Company’s core operating
results with those of other companies. Management believes constant
currency product revenue growth, non-GAAP operating income/margin,
non-GAAP net income and non-GAAP earnings per diluted share are
important measures in the evaluation of the Company’s performance
and uses these measures to better understand and evaluate our
business.
The non-GAAP financial measures reflect adjustments for the
following items, as well as the related income tax effects
thereof:
Constant currency adjustments.
Some of our sales agreements with foreign customers provide for
payment in currencies other than the U.S. Dollar. These foreign
currency revenues, when converted into U.S. Dollars, can vary
significantly from period to period depending on the average and
quarter-end exchange rates during a respective period. We believe
that comparing these foreign currency denominated revenues by
holding the exchange rates constant with the prior year period is
useful to management and investors in evaluating our product
revenue growth rates on a period-to-period basis. We anticipate
that fluctuations in foreign exchange rates and the related
constant currency adjustments for calculation of our product
revenue growth rate will continue to occur in future periods.
Royalty and other revenue, net of related
costs.
We derive royalty and other revenue, net of related costs, from
certain non-recurring contractual arrangements that we do not
expect to continue in the future. We believe the exclusion of
royalty and other revenue, net of related costs, associated with
these non-recurring revenue streams is useful to management and
investors in evaluating the performance of our ongoing operations
on a period-to-period basis.
Acquisition/Strategic investment-related
costs, including depreciation and amortization.
In the event the Company acquires, invests in or divests certain
business operations, there may be non-recurring gains, losses or
expenses that will be recognized related to the assets and/or
liabilities sold or acquired that are not representative of normal
on-going cash flows. Furthermore, there may be depreciation and
amortization related to the revaluation of assets and liabilities
(primarily intangible assets, property, plant and equipment
adjustments, inventory revaluation, lease liabilities, etc.) to
fair value through purchase accounting related to value created by
the seller prior to the acquisition/strategic investment that does
not reflect the normal on-going costs of operating our core
business. We believe that exclusion of these gains, losses or costs
in presenting non-GAAP financial measures provides management and
investors a more effective means of evaluating historical
performance and projected costs and the potential for realizing
cost efficiencies within our core business. Depreciation and
amortization related to the revaluation of acquisition related
assets and liabilities will generally recur in future periods.
Litigation damages, awards and
settlements.
In connection with litigation proceedings arising in the course
of our business, we have recorded expenses as a defendant in such
proceedings in the form of damages, as well as gains as a plaintiff
in such proceedings in the form of litigation awards and settlement
proceeds. Litigation matters can vary in their characteristics,
frequency and significance to our operating results. We believe
that exclusion of these gains (net of any related costs incurred in
the period the award or settlement is recognized) and losses is
useful to management and investors in evaluating the performance of
our ongoing operations on a period-to-period basis. In this regard,
we note that these expenses and gains are generally unrelated to
our core business and/or are infrequent in nature.
Realized and unrealized gains or losses
from foreign currency transactions.
We are exposed to foreign currency gains or losses on
outstanding foreign currency denominated receivables and payables
related to certain customer sales agreements, product costs and
other operating expenses. As the Company does not actively hedge
these currency exposures, changes in the underlying currency rates
relative to the U.S. Dollar may result in realized and unrealized
foreign currency gains and losses between the time these
receivables and payables arise and the time that they are settled
in cash. Since such realized and unrealized foreign currency gains
and losses are the result of macro-economic factors and can vary
significantly from one period to the next, we believe that
exclusion of such realized and unrealized gains and losses are
useful to management and investors in evaluating the performance of
our ongoing operations on a period-to-period basis. Realized and
unrealized foreign currency gains and losses are likely to recur in
future periods.
Excess tax benefits from stock-based
compensation.
Current authoritative accounting guidance requires that excess
tax benefits or costs recognized on stock-based compensation
expense be reflected in our provision for income taxes rather than
paid-in capital. Since we cannot control or predict when stock
option awards will be exercised or the price at which such awards
will be exercised, the impact of such guidance can create
significant volatility in our effective tax rate from one period to
the next. We believe that exclusion of these excess tax benefits or
costs is useful to management and investors in evaluating the
performance of our ongoing operations on a period-to-period basis.
These excess tax benefits or costs will generally recur in future
periods as long as we continue to issue equity awards to our
employees.
First Quarter 2021 Actuals versus First
Quarter 2020 Actuals
RECONCILIATION OF GAAP TO NON-GAAP CONSTANT CURRENCY
PRODUCT REVENUE(1):
Three Months Ended
(in thousands, except
percentages)
April 3, 2021
March 28, 2020
GAAP product revenue
$
299,043
$
269,625
Non-GAAP constant currency
adjustments:
Constant currency F/X adjustments
(3,885
)
N/A
Total non-GAAP constant currency
adjustments
(3,885
)
N/A
Non-GAAP constant currency product
revenue
$
295,158
$
269,625
Product revenue growth %
GAAP
10.9
%
Non-GAAP constant currency
9.5
%
__________________
(1) May not foot due to rounding.
RECONCILIATION OF GAAP TO
NON-GAAP NET INCOME AND NET INCOME PER DILUTED SHARE(1):
Three Months Ended
April 3, 2021
March 28, 2020
(in thousands, except per share
amounts)
$
Per Diluted Share
$
Per Diluted Share
GAAP net income
$
53,383
$
0.92
$
64,456
$
1.12
Non-GAAP adjustments:
Acquisition/strategic investment related
costs
2,788
0.05
2,447
0.04
Litigation damages, awards and
settlements
—
—
(499
)
(0.01
)
Non-operating other (income) expense
799
0.01
(588
)
(0.01
)
Tax impact of pre-tax non-GAAP adjustments
above
(598
)
(0.01
)
(318
)
(0.01
)
Excess tax benefits from stock-based
compensation
(4,302
)
(0.07
)
(9,609
)
(0.17
)
Total non-GAAP adjustments
(1,313
)
(0.02
)
(8,568
)
(0.15
)
Non-GAAP net income
$
52,070
$
0.90
$
55,889
$
0.97
Weighted average shares outstanding -
diluted
57,901
57,585
__________________
(1) May not foot due to rounding.
RECONCILIATION OF GAAP TO
NON-GAAP OPERATING MARGIN(1):
Three Months Ended
April 3, 2021
March 28, 2020
(in thousands, except
percentages)
$
$
GAAP operating income/margin
$
65,664
$
69,010
Non-GAAP adjustments:
Acquisition/strategic investment related
costs
2,788
2,447
Litigation damages, awards and
settlements
—
(499
)
Total non-GAAP adjustments
2,788
1,948
Non-GAAP operating income/margin
$
68,452
$
70,958
GAAP operating income/margin %
22.0
%
25.6
%
Non-GAAP operating income/margin %
22.9
%
26.3
%
__________________
(1) May not foot due to rounding.
Full-Year 2021 Guidance versus
Full-Year 2020 Actuals
RECONCILIATION OF GAAP PRODUCT
REVENUE GROWTH % TO CONSTANT CURRENCY PRODUCT REVENUE GROWTH
%(1):
(in thousands, except
percentages)
Full-Year 2021
Updated Guidance(2)
Full-Year 2020
Actuals
GAAP product revenue
$
1,205,000
$
1,143,744
Non-GAAP constant currency
adjustments:
Constant currency F/X adjustments
(10,000
)
N/A
Total non-GAAP constant currency
adjustments
(10,000
)
N/A
Non-GAAP constant currency product
revenue
$
1,195,000
$
1,143,744
Product revenue growth %:
GAAP
5.4
%
Non-GAAP constant currency
4.5
%
__________________
(1) May not foot due to rounding.
(2) Updated guidance provided April 26,
2021. Prior guidance provided February 23, 2021.
RECONCILIATION OF GAAP TO
NON-GAAP NET INCOME AND NET INCOME PER DILUTED SHARE(1):
Full-Year 2021
Updated Guidance(2)
Full-Year 2020
Actuals
(in thousands, except per share
amounts)
$
Per Diluted Share
$
Per Diluted Share
GAAP net income
$
223,500
$
3.83
$
240,302
$
4.14
Non-GAAP adjustments:
Acquisition/strategic investment related
costs
15,000
0.26
8,286
0.14
Litigation damages, awards and
settlements
—
—
(474
)
(0.01
)
Non-operating other (income) expense
800
0.01
(2,631
)
(0.05
)
Tax impact of pre-tax non-GAAP adjustments
above
(2,500
)
(0.04
)
(6,096
)
(0.11
)
Excess tax benefits from stock-based
compensation
(13,500
)
(0.23
)
(30,172
)
(0.52
)
Total non-GAAP adjustments
(200
)
—
(31,086
)
(0.54
)
Non-GAAP product net income
$
223,300
$
3.83
$
209,216
$
3.60
Weighted average shares outstanding -
diluted
58,300
58,037
__________________
(1) May not foot due to rounding.
(2) Updated guidance provided April 26,
2021. Prior guidance provided February 23, 2021.
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND
OPERATING MARGIN(1):
Full-Year 2021
Updated Guidance(2)
Full-Year 2020
Actuals
(in thousands, except
percentages)
$
$
GAAP gross margin
$
803,900
$
743,065
Non-GAAP adjustments:
Acquisition/strategic investment-related
costs
4,000
1,807
Total non-GAAP adjustments
4,000
1,807
Non-GAAP gross margin
$
807,900
$
744,872
GAAP gross margin %
66.7
%
65.0
%
Non-GAAP gross margin %
67.0
%
65.1
%
GAAP operating income/margin
$
280,100
$
255,823
Non-GAAP adjustments:
Acquisition/strategic investment-related
costs
15,000
8,286
Litigation damages, awards and
settlements
—
(474
)
Total non-GAAP adjustments
15,000
7,812
Non-GAAP operating income/margin
$
295,100
$
263,636
GAAP operating income/margin %
23.2
%
22.4
%
Non-GAAP operating income/margin %
24.5
%
23.1
%
__________________
(1) May not foot due to rounding.
(2) Updated guidance provided April 26,
2021. Prior guidance provided February 23, 2021.
Conference Call:
The conference call to review the results will begin at 1:30
p.m. PT today (4:30 p.m. ET) and will be hosted by Joe Kiani,
Chairman and Chief Executive Officer, and Micah Young, Executive
Vice President and Chief Financial Officer.
To register for the conference call and receive the dial-in
number, please use the link below. Upon registering, each
participant will be provided with call details and a registrant ID
number.
Conference Call Registration Link:
http://www.directeventreg.com/registration/event/4934128
A replay of the webcast and conference call will be available
shortly after the conclusion of the call and will be archived on
the Company’s website.
About Masimo
Masimo (Nasdaq: MASI) is a global medical technology company
that develops and produces a wide array of industry-leading
monitoring technologies, including innovative measurements,
sensors, patient monitors, and automation and connectivity
solutions. Our mission is to improve patient outcomes and reduce
the cost of care. Masimo SET® Measure-through Motion and Low
Perfusion™ pulse oximetry, introduced in 1995, has been shown in
over 100 independent and objective studies to outperform other
pulse oximetry technologies.4 Masimo SET® has also been shown to
help clinicians reduce severe retinopathy of prematurity in
neonates,5 improve CCHD screening in newborns,6 and, when used for
continuous monitoring with Masimo Patient SafetyNet™ in
post-surgical wards, reduce rapid response team activations, ICU
transfers, and costs.7-10 Masimo SET® is estimated to be used on
more than 200 million patients in leading hospitals and other
healthcare settings around the world,1 and is the primary pulse
oximetry at 9 of the top 10 hospitals according to the 2020-21 U.S.
News and World Report Best Hospitals Honor Roll.3 Masimo continues
to refine SET® and in 2018, announced that SpO2 accuracy on RD SET®
sensors during conditions of motion has been significantly
improved, providing clinicians with even greater confidence that
the SpO2 values they rely on accurately reflect a patient’s
physiological status. In 2005, Masimo introduced rainbow® Pulse
CO-Oximetry technology, allowing noninvasive and continuous
monitoring of blood constituents that previously could only be
measured invasively, including total hemoglobin (SpHb®), oxygen
content (SpOC™), carboxyhemoglobin (SpCO®), methemoglobin (SpMet®),
Pleth Variability Index (PVi®), RPVi™ (rainbow® PVi), and Oxygen
Reserve Index (ORi™). In 2013, Masimo introduced the Root® Patient
Monitoring and Connectivity Platform, built from the ground up to
be as flexible and expandable as possible to facilitate the
addition of other Masimo and third-party monitoring technologies;
key Masimo additions include Next Generation SedLine® Brain
Function Monitoring, O3® Regional Oximetry, and ISA™ Capnography
with NomoLine® sampling lines. Masimo’s family of continuous and
spot-check monitoring Pulse CO-Oximeters® includes devices designed
for use in a variety of clinical and non-clinical scenarios,
including tetherless, wearable technology, such as Radius-7® and
Radius PPG™, portable devices like Rad-67™, fingertip pulse
oximeters like MightySat® Rx, and devices available for use both in
the hospital and at home, such as Rad-97®. Masimo hospital
automation and connectivity solutions are centered around the
Masimo Hospital Automation™ platform, and include Iris® Gateway,
iSirona™, Patient SafetyNet, Replica™, Halo ION™, UniView™, UniView
:60™, and Masimo SafetyNet™. Additional information about Masimo
and its products may be found at www.masimo.com. Published clinical studies on
Masimo products can be found at www.masimo.com/evidence/featured-studies/feature/.
ORi and RPVi have not received FDA 510(k) clearance and are not
available for sale in the United States. The use of the trademark
Patient SafetyNet is under license from University HealthSystem
Consortium.
References
- Estimate: Masimo data on file.
-
https://content.govdelivery.com/accounts/USFDA/bulletins/2c276cb.
-
http://health.usnews.com/health-care/best-hospitals/articles/best-hospitals-honor-roll-and-overview.
- Published clinical studies on pulse oximetry and the benefits
of Masimo SET® can be found on our website at
http://www.masimo.com. Comparative studies include independent and
objective studies which are comprised of abstracts presented at
scientific meetings and peer-reviewed journal articles.
- Castillo A et al. Prevention of Retinopathy of Prematurity in
Preterm Infants through Changes in Clinical Practice and SpO2
Technology. Acta Paediatr. 2011 Feb;100(2):188-92.
- de-Wahl Granelli A et al. Impact of pulse oximetry screening on
the detection of duct dependent congenital heart disease: a Swedish
prospective screening study in 39,821 newborns. BMJ. 2009;Jan
8;338.
- Taenzer A et al. Impact of pulse oximetry surveillance on
rescue events and intensive care unit transfers: a before-and-after
concurrence study. Anesthesiology. 2010:112(2):282-287.
- Taenzer A et al. Postoperative Monitoring – The Dartmouth
Experience. Anesthesia Patient Safety Foundation Newsletter.
Spring-Summer 2012.
- McGrath S et al. Surveillance Monitoring Management for General
Care Units: Strategy, Design, and Implementation. The Joint
Commission Journal on Quality and Patient Safety. 2016
Jul;42(7):293-302.
- McGrath S et al. Inpatient Respiratory Arrest Associated With
Sedative and Analgesic Medications: Impact of Continuous Monitoring
on Patient Mortality and Severe Morbidity. J Patient Saf. 2020 14
Mar. DOI: 10.1097/PTS.0000000000000696.
Forward-Looking Statements
All statements other than statements of historical facts
included in this press release that address activities, events or
developments that we expect, believe or anticipate will or may
occur in the future are forward-looking statements including, in
particular, the statements about our expectations for full year
2021 financial guidance; our long-term outlook; demand for our
products; anticipated revenue and earnings growth; our financial
condition, results of operations and business generally;
expectations regarding our ability to design and deliver innovative
new noninvasive technologies and reduce the cost of care; and
demand for our technologies. These forward-looking statements are
based on management’s current expectations and beliefs and are
subject to uncertainties and factors, all of which are difficult to
predict and many of which are beyond our control and could cause
actual results to differ materially and adversely from those
described in the forward-looking statements. These risks include,
but are not limited to, those related to: our dependence on Masimo
SET® and Masimo rainbow SET™ products and technologies for
substantially all of our revenue; any failure in protecting our
intellectual property exposure to competitors’ assertions of
intellectual property claims; the highly competitive nature of the
markets in which we sell our products and technologies; any failure
to continue developing innovative products and technologies; the
lack of acceptance of any of our current or future products and
technologies; obtaining regulatory approval of our current and
future products and technologies; the risk that the implementation
of our international realignment will not continue to produce
anticipated operational and financial benefits, including a
continued lower effective tax rate; the loss of our customers; the
failure to retain and recruit senior management; product liability
claims exposure; a failure to obtain expected returns from the
amount of intangible assets we have recorded; the maintenance of
our brand; the amount and type of equity awards that we may grant
to employees and service providers in the future; our ongoing
litigation and related matters; risks related to global economic
and marketplace uncertainties related to the impact of the COVID-19
pandemic; and other factors discussed in the “Risk Factors” section
of our most recent periodic reports filed with the Securities and
Exchange Commission (“SEC”), including our most recent Form 10-K
and Form 10-Q, all of which you may obtain for free on the SEC’s
website at www.sec.gov. Although we believe that the expectations
reflected in our forward-looking statements are reasonable, we do
not know whether our expectations will prove correct. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof, even if
subsequently made available by us on our website or otherwise. We
do not undertake any obligation to update, amend or clarify these
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
Masimo, SET, Signal Extraction Technology, Improving Patient
Outcome and Reducing Cost of Care... by Taking Noninvasive
Monitoring to New Sites and Applications, rainbow, SpHb, SpOC,
SpCO, SpMet, PVI and ORI are trademarks or registered trademarks of
Masimo Corporation.
MASIMO CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited, in
thousands)
April 3, 2021
January 2, 2021
ASSETS
Current assets
Cash and cash equivalents
$
551,992
$
641,447
Accounts receivable, net of allowance for
credit losses
134,304
141,350
Inventories
216,142
215,952
Other current assets
80,672
102,416
Total current assets
983,110
1,101,165
Lease receivable, noncurrent
58,566
57,666
Deferred costs and other contract
assets
21,352
20,076
Property and equipment, net
274,570
272,511
Intangible assets, net
72,937
73,923
Goodwill
102,092
103,206
Deferred tax assets
39,310
39,363
Other non-current assets
45,871
44,642
Total assets
$
1,597,808
$
1,712,552
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Accounts payable
$
62,883
$
64,061
Accrued compensation
47,915
71,601
Deferred revenue and other contract
liabilities, current
39,113
44,935
Other current liabilities
46,961
53,239
Total current liabilities
196,872
233,836
Other non-current liabilities
72,811
71,076
Total liabilities
269,683
304,912
Commitments and contingencies
Stockholders’ equity
Common stock
55
55
Treasury stock
(767,653
)
(638,736
)
Additional paid-in capital
702,596
703,693
Accumulated other comprehensive (loss)
income
(1,471
)
1,413
Retained earnings
1,394,598
1,341,215
Total stockholders’ equity
1,328,125
1,407,640
Total liabilities and stockholders’
equity
$
1,597,808
$
1,712,552
MASIMO CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited, in thousands,
except per share amounts)
Three Months Ended
April 3, 2021
March 28, 2020
Product revenue
$
299,043
$
269,625
Cost of goods sold
102,168
83,996
Gross profit
196,875
185,629
Operating expenses:
Selling, general and administrative
96,700
89,877
Research and development
34,511
27,241
Litigation awards
—
(499
)
Total operating expenses
131,211
116,619
Operating income
65,664
69,010
Non-operating (loss) income
(737
)
3,346
Income before provision for income
taxes
64,927
72,356
Provision for income taxes
11,544
7,900
Net income
53,383
64,456
Net income per share:
Basic
$
0.97
$
1.20
Diluted
$
0.92
$
1.12
Weighted-average shares used in per share
calculations:
Basic
55,200
53,867
Diluted
57,901
57,585
The following table presents details of the stock-based
compensation expense that is included in each functional line item
in the condensed consolidated statements of operations (in
thousands):
Three Months Ended
April 3, 2021
March 28, 2020
Cost of goods sold
$
205
$
131
Selling, general and administrative
9,412
8,736
Research and development
3,091
2,405
Total
$
12,708
$
11,272
MASIMO CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited, in
thousands)
Three Months Ended
April 3, 2021
March 28, 2020
Cash flows from operating
activities:
Net income
$
53,383
$
64,456
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
8,493
6,379
Stock-based compensation
12,708
11,272
Loss on disposal of equipment, intangibles
and other assets
29
49
Provision for credit losses
49
94
Changes in operating assets and
liabilities:
Decrease (increase) in accounts
receivable
6,823
(17,105
)
(Increase) decrease in inventories
(915
)
427
Decrease in other current assets
16,326
5,469
Increase in lease receivable, net
(919
)
(1,747
)
Increase in deferred costs and other
contract assets
(1,307
)
(796
)
Increase in other non-current assets
(77
)
(51
)
Decrease in accounts payable
(599
)
(7,968
)
Decrease in accrued compensation
(23,343
)
(17,687
)
(Decrease) increase in accrued
liabilities
(5,813
)
1,704
Decrease in income tax payable
(303
)
(2,041
)
Decrease in deferred revenue and other
contract-related liabilities
(5,308
)
(676
)
Increase in other non-current
liabilities
33
576
Net cash provided by operating
activities
59,260
42,355
Cash flows from investing
activities:
Maturities of short-term investments
—
70,000
Purchases of property and equipment,
net
(8,903
)
(37,004
)
Increase in intangible assets
(1,572
)
(1,135
)
Business combinations, net of cash
acquired
—
(47,250
)
Net cash used in investing
activities
(10,475
)
(15,389
)
Cash flows from financing
activities:
Proceeds from issuance of common stock
5,756
13,044
Payroll tax withholdings on behalf of
employees for vested equity awards
(16,691
)
(1,424
)
Repurchases of common stock
(128,917
)
(371
)
Net cash (used in) provided by
financing activities
(139,852
)
11,249
Effect of foreign currency exchange rates
on cash
279
2
Net (decrease) increase in cash, cash
equivalents and restricted cash
(90,788
)
38,217
Cash, cash equivalents and restricted cash
at beginning of period
645,004
568,075
Cash, cash equivalents and restricted cash
at end of period
$
554,216
$
606,292
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210426005811/en/
Investor Contact: Eli Kammerman (949) 297-7077
ekammerman@masimo.com
Media Contact: Evan Lamb (949) 396-3376
elamb@masimo.com
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