Q1 2019 Highlights
- Total revenue, including royalty and
other revenue, was $231.7 million;
- Product revenue increased 12.8% to
$230.5 million, or 14.3% on a constant currency basis;
- Shipments of noninvasive technology
boards and monitors increased 18.8% to 63,700;
- GAAP net income per diluted share was
$0.87; and
- Non-GAAP net income per diluted share
increased 23.4% to $0.79.
Masimo (Nasdaq: MASI) today announced its financial results for
the first quarter ended March 30, 2019.
First Quarter 2019 Results:
Total revenue, including royalty and other revenue, was $231.7
million. Product revenue increased 12.8% to $230.5 million, or
14.3% on a constant currency basis. Shipments of noninvasive
technology boards and monitors increased approximately 18.8% to
63,700 in the first quarter of 2019, compared to 53,600 in the
first quarter of 2018.
GAAP operating margin was 24.2%. Non-GAAP operating margin
increased 160 basis points to 24.0%, compared to 22.4% in the prior
year period.
For the first quarter of 2019, GAAP net income was $49.3 million
or $0.87 per diluted share. Non-GAAP net income per diluted share
increased 23.4% to $0.79 per diluted share, compared to $0.64 per
diluted share in the prior year period.
Total cash and short-term investments increased by $40.4 million
during the quarter to reach $592.9 million as of March 30,
2019.
As a result of the strong performance in the first quarter,
Masimo is raising its guidance for fiscal year 2019. The Company
now expects product revenues of $918.0 million, which reflects
reported growth of 10.6% and constant currency growth of 11.4%.
Masimo is also raising its GAAP EPS guidance to $3.25 and its
non-GAAP EPS guidance to $3.12.
Joe Kiani, Chairman and Chief Executive Officer of Masimo, said,
“We’re off to a great start to 2019 and we are happy to report
first quarter results that once again exceeded expectations. Our
first quarter results illustrate the strength of our global
business. Our product revenue increased 14.3% on a constant
currency basis to reach $230.5 million, while we had record
worldwide shipments of 63,700 noninvasive technology boards and
monitors. While we are enabling more customers to improve their
patient care and simultaneously helping them reduce their cost of
care, our clinical leading noninvasive monitoring technologies are
the driving force behind our financial success. As we celebrate our
30th anniversary, we are delighted to be able raise our revenue and
earnings guidance for 2019.”
2019 Financial Guidance
The Company provided the following updated estimates for its
full year 2019 guidance:
2019 Updated Guidance(1) Prior 2019
Guidance(1) (in millions, except percentages and
earnings per share) GAAP Non-GAAP
GAAP Non-GAAP Total revenue $ 919.1 $ 918.0 $
912.0 $ 912.0 Product revenue $ 918.0 $ 918.0 $ 912.0 $ 912.0
Percentage growth - as reported 10.6 % 10.6 % 9.9 % 9.9 %
Percentage growth - constant currency N/A 11.4 % N/A 10.7 % Royalty
and other revenue $ 1.1 $ — $ — $ — Gross margin 66.8 % 66.8 % 66.7
% 66.8 % Operating margin 23.9 % 24.0 % 23.8 % 24.0 % Diluted
earnings per share $ 3.25 $ 3.12 $ 3.19 $ 3.08 EBITDA 26.4 % 30.5 %
26.4 % 30.4 % Estimated tax rate 19.9 % 23.2 % 19.8 % 23.2 %
______________ (1) Updated guidance provided May 6, 2019.
Prior guidance provided February 26, 2019.
- Total revenue, including royalty and
other revenue, increasing to $919.1 million;
- Product revenue increasing 10.6% to
$918.0 million, or 11.4% on a constant currency basis;
- GAAP diluted earnings per share
increasing to $3.25;
- Non-GAAP diluted earnings per share
increasing 17.7% to $3.12; and
- Included in our full year revenue
guidance is approximately $6.5 million of year-over-year currency
headwinds.
Impact of Adoption of New Lease Accounting Standard
Effective December 30, 2018, we adopted Accounting Standards
Codification (ASC) Topic 842, Leases (ASC 842). Our adoption of ASC
842 generally resulted in (a) the recognition of lessee
right-of-use (ROU) assets for the right to use assets subject to
operating leases; (b) the recognition of lessee lease liabilities
for our obligation to make payments under operating leases; and (c)
the acceleration of when we recognize certain revenue and costs as
a lessor of equipment provided to end-user hospitals at no up-front
charge under deferred equipment agreements with fixed multi-year
sensor purchase commitments. For additional information with
respect to the impact of the adoption of this new accounting
standard, please reference Note 2 to our condensed consolidated
financial statements that will be included in Part I, Item 1 of our
Quarterly Report on Form 10-Q for the quarter ended March 30,
2019, once filed with the Securities and Exchange Commission (SEC)
and Exhibit 99.3 that was included in our Current Report on Form
8-K that was filed with the SEC today.
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 diluted earnings
per share, (iv) non-GAAP gross profit/margin, (v) non-GAAP
operating income/margin, (vi) non-GAAP product net income, (vii)
non-GAAP product diluted earnings per share, (viii) non-GAAP
product gross profit/margin, (ix) non-GAAP product operating
income/margin and (x) adjusted EBITDA. 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 non-GAAP product revenue growth percentage (%),
non-GAAP gross profit, non-GAAP operating income, non-GAAP net
income, non-GAAP net income per diluted share and adjusted EBITDA
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-related costs, including
depreciation and amortization.
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
rather than ongoing costs of operating our core business. As a
result, we believe that exclusion of these 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; most recently in connection with our November 2016
settlement agreement with Koninklijke Philips N.V. We believe that
exclusion of these gains 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 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.
Tax impacts that may not be representative
of the ongoing results of our core operations.
From time-to-time, we may experience significant non-recurring
tax events, such as changes in tax laws and regulations or the
derecognition of uncertain tax positions related to non-recurring
transactions due to the expiration of the statutes of limitations.
We believe that exclusion of such tax charges or benefits 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 tax items are unrelated to our core business and
generally unique and non-recurring in nature.
First Quarter 2019 Actuals versus First
Quarter 2018 Actuals
RECONCILIATION OF
GAAP TO NON-GAAP CONSTANT CURRENCY PRODUCT REVENUE:
Three Months Ended (in thousands, except
percentages)
March 30,
2019
March 31,
2018
GAAP product revenue $ 230,548 $ 204,389 Non-GAAP constant currency
adjustments: Constant currency F/X adjustments 3,049
N/A Total non-GAAP constant currency adjustments
3,049 N/A Non-GAAP (constant currency) product
revenue $ 233,597 $ 204,389 Product revenue growth %: GAAP
12.8 % Non-GAAP (constant currency) 14.3 %
RECONCILIATION OF
GAAP TO NON-GAAP NET INCOME AND NET INCOME PER DILUTED
SHARE:
Three Months Ended
March 30,
2019
March 31,
2018
(in thousands, except per share amounts) $
Per Diluted
Share
$
Per Diluted
Share
GAAP net income $ 49,322 $ 0.87 $ 45,630 $ 0.82 Non-GAAP
adjustments: Royalty and other revenue, net of related costs (1,048
) (0.02 ) (8,390 ) (0.15 ) Acquisition-related depreciation and
amortization 361 — 360 0.01 Non-operating other (income) expense
(534 ) (0.01 ) (1,113 ) (0.02 ) Tax impact of pre-tax non-GAAP
adjustments above 362 0.01 2,101 0.04 Excess tax benefits from
stock-based compensation (3,432 ) (0.06 ) (3,148 ) (0.06 ) 2017
U.S. Tax Reform — — 16
— Total non-GAAP adjustments (4,291 )
(0.08 ) (10,174 ) (0.18 ) Non-GAAP net income $
45,031 $ 0.79 $ 35,456 $ 0.64 Weighted
average shares outstanding - diluted 56,799 55,496
RECONCILIATION OF
GAAP TO NON-GAAP OPERATING MARGIN
Three Months Ended
March 30,
2019
March 31,
2018
(in thousands, except percentages) $
$ GAAP operating income/margin $ 56,023 $
53,885 Non-GAAP adjustments: Royalty and other revenue, net of
related costs (1,048 ) (8,390 ) Acquisition-related depreciation
and amortization 361 360 Total non-GAAP
adjustments (687 ) (8,030 ) Non-GAAP operating
income/margin $ 55,336 $ 45,855 GAAP operating
income/margin % 24.2 % 25.3 % Non-GAAP operating income/margin %(1)
24.0 % 22.4 %
Full Year 2019 Guidance versus Full
Year 2018 Actuals
RECONCILIATION OF
GAAP PRODUCT REVENUE GROWTH % TO
CONSTANT CURRENCY
PRODUCT REVENUE GROWTH %:
Full Year 2019
Updated
Guidance(2)
Full Year 2018
Actuals
GAAP product revenue $ 918,000 $ 829,874 Non-GAAP constant currency
adjustments: Constant currency F/X adjustments 6,500
N/A Total non-GAAP constant currency adjustments
6,500 N/A Non-GAAP (constant currency) product
revenue $ 924,500 $ 829,874 Product revenue growth %: GAAP
10.6 % Non-GAAP (constant currency) 11.4 % __________________ (1)
Calculated based upon product revenue versus total revenue.
(2) Updated guidance provided May 6, 2019. Prior guidance provided
February 26, 2019
RECONCILIATION OF
GAAP TO NON-GAAP NET INCOME AND
NET INCOME PER
DILUTED SHARE:
Full Year 2019
Updated Guidance(2)
Full Year 2018
Actuals
(in thousands, except per share amounts) $
Per Diluted
Share
$
Per Diluted
Share
GAAP net income $ 186,925 $ 3.25 $ 193,543 $ 3.45 Non-GAAP
adjustments: Royalty and other revenue, net of related costs (1,048
) (0.02 ) (27,704 ) (0.50 ) Acquisition-related depreciation and
amortization 1,430 0.03 1,442 0.02 Litigation damages, awards and
settlements — — 425 0.01 Non-operating other (income) expense — —
2,027 0.03 Tax impact of pre-tax non-GAAP adjustments above 182 —
5,531 0.11 Excess tax benefits from stock-based compensation (8,032
) (0.14 ) (22,036 ) (0.39 ) Expiration of certain statutes of
limitations related to unique and non-recurring tax positions — —
(4,169 ) (0.07 ) 2017 U.S. Tax Reform — —
(675 ) (0.01 ) Total non-GAAP adjustments
(7,468 ) (0.13 ) (45,159 ) (0.80 )
Non-GAAP net income $ 179,457 $ 3.12 $ 148,384
$ 2.65 Weighted average shares outstanding - diluted 57,599
56,039
RECONCILIATION OF
GAAP TO NON-GAAP GROSS PROFIT AND OPERATING MARGIN:
Full Year 2019
Updated
Guidance(2)
Full Year 2018
Actuals
(in thousands, except percentages) $
$ GAAP gross margin 613,814 574,892 Non-GAAP
adjustments: Royalty and other revenue, net of related costs (1,048
) (27,704 ) Acquisition-related depreciation and amortization
458 458 Total non-GAAP adjustments
(590 ) (27,246 ) Non-GAAP gross margin $ 613,224
$ 547,646 GAAP gross margin % 66.8 % 67.0 % Non-GAAP
gross margin %(1) 66.8 % 66.0 % GAAP operating income/margin
219,938 208,044 Non-GAAP adjustments: Royalty and other revenue,
net of related costs (1,048 ) (27,704 ) Acquisition-related
depreciation and amortization 1,430 1,442 Litigation damages,
awards and settlements — 425 Total
non-GAAP adjustments 382 (25,837 ) Non-GAAP
operating income/margin $ 220,320 $ 182,207 GAAP
operating income/margin % 23.9 % 24.2 % Non-GAAP operating
income/margin %(1) 24.0 % 22.0 % __________________ (1)
Calculated based upon product revenue versus total revenue. (2)
Updated guidance provided May 6, 2019. Prior guidance provided
February 26, 2019
RECONCILIATION OF
EBITDA TO ADJUSTED EBITDA:
Full Year 2019
Updated Guidance(2)
Full Year 2018
Actuals
(in thousands, except percentages) $
% of Revenue
$ % of Revenue GAAP net income $
186,925 20.3 % $ 193,543 22.5 % Other (income)/expense(3) (13,405 )
(1.5 ) (5,732 ) (0.7 ) Provision for income taxes 46,419 5.1 20,233
2.4 Depreciation and amortization 22,773 2.5
21,127 2.5 EBITDA 242,712 26.4 229,171 26.7
Add: Non-cash stock-based compensation expense 37,174 4.1 27,416
3.2 Add: Litigation damages, awards and settlements —
— 425 — Adjusted EBITDA $ 279,886
30.5 % $ 257,012 29.9 % __________________ (2)
Updated guidance provided May 6, 2019. Prior guidance provided
February 26, 2019 (3) Other (income)/expense consists primarily of
interest (income)/expense and net foreign currency (gains)/losses.
Conference Call
Masimo will hold a conference call today at 1:30 p.m. PT (4:30
p.m. ET) to discuss the results. A live webcast of the call will be
available online from the investor relations page of the Company’s
website at www.masimo.com. The dial-in numbers are (888) 520-7182
for domestic callers and +1 (706) 758-3929 for international
callers. The reservation code for both dial-in numbers is 2399557.
After the live webcast, the call will be available on Masimo’s
website through June 6, 2019. In addition, a telephonic replay of
the call will be available through May 13, 2019. The replay dial-in
numbers are (855) 859-2056 for domestic callers and +1 (404)
537-3406 for international callers. Please use reservation code
2399557.
About Masimo
Masimo (Nasdaq: MASI) is a global leader in innovative
noninvasive monitoring technologies. Our mission is to improve
patient outcomes and reduce the cost of care. In 1995, the Company
debuted Masimo SET® Measure-through Motion and Low Perfusion® pulse
oximetry, which has been shown in multiple studies to significantly
reduce false alarms and accurately monitor for true alarms. Masimo
SET® is estimated to be used on more than 100 million patients in
leading hospitals and other healthcare settings around the world.
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®) and more recently, Oxygen Reserve Index
(ORi™), in addition to SpO2, pulse rate and perfusion index (PI).
In 2014, Masimo introduced Root™, an intuitive patient monitoring
and connectivity platform with the Masimo Open Connect® (MOC-9®)
interface. Masimo is also taking an active leadership role in
mobile health applications (mHealth) with products such as the
Radius-7® wearable patient monitor and the MightySat™ fingertip
pulse oximeter. Additional information about Masimo and its
products may be found at www.masimo.com.
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 fiscal
year GAAP and non-GAAP 2019 total revenue, product revenue, royalty
and other revenues, gross margin, operating margin, diluted
earnings per share, EBITDA, estimated tax rate and 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; 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)
March 30,
2019
December 29,
2018
ASSETS Current assets Cash and cash equivalents $ 412,861 $
552,490 Short-term investments 180,000 — Accounts receivable, net
of allowance for doubtful accounts 117,822 109,629 Inventories
93,259 94,732 Other current assets 46,355
29,227 Total current assets 850,297 786,078 Lease
receivable, noncurrent 41,149 — Deferred costs and other contract
assets 15,599 126,105 Property and equipment, net 167,288 165,972
Intangible assets, net 27,830 27,924 Goodwill 22,376 23,297
Deferred tax assets 30,464 21,210 Other non-current assets
24,373 4,232 Total assets $ 1,179,376 $
1,154,818
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities Accounts payable $ 32,970 $ 40,388 Accrued
compensation 30,040 49,486 Other current liabilities 35,470 24,627
Deferred revenue and other contract-related liabilities, current
22,677 33,106 Total current liabilities
121,157 147,607 Other non-current liabilities 53,143
38,146 Total liabilities 174,300 185,753 Commitments
and contingencies Stockholders’ equity Common stock 53 53 Treasury
stock (489,026 ) (489,026 ) Additional paid-in capital 547,225
533,164 Accumulated other comprehensive loss (6,776 ) (6,199 )
Retained earnings 953,600 931,073 Total
stockholders’ equity 1,005,076 969,065
Total liabilities and stockholders’ equity $ 1,179,376 $
1,154,818
MASIMO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(unaudited, in thousands, except per
share amounts)
Three Months Ended
March 30,
2019
March 31,
2018
Revenue: Product $ 230,548 $ 204,389 Royalty and other revenue
1,116 8,564 Total revenue 231,664 212,953 Cost of
goods sold 80,022 69,292 Gross profit 151,642 143,661
Operating expenses: Selling, general and administrative 74,204
70,217 Research and development 21,415 19,559 Total
operating expenses 95,619 89,776 Operating income
56,023 53,885 Non-operating income 3,886 1,647 Income
before provision for income taxes 59,909 55,532 Provision for
income taxes 10,587 9,902 Net income $ 49,322 $
45,630 Net income per share: Basic $ 0.93 $ 0.88 Diluted $
0.87 $ 0.82 Weighted-average shares used in per share
calculations: Basic 53,210 51,709 Diluted
56,799 55,496
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
March 30,
2019
March 31,
2018
Cost of goods sold $ 97 $ 78 Selling, general and administrative
5,725 4,036 Research and development 1,495 1,218
Total $ 7,317 $ 5,332
MASIMO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(unaudited, in thousands)
Three Months Ended
March 30,
2019
March 31,
2018
Cash flows from operating activities: Net income $ 49,322 $
45,630 Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 5,419 5,241
Stock-based compensation 7,317 5,332 Loss on disposal of property,
equipment and intangibles 65 429 Provision from doubtful accounts
234 (394 ) Benefit from deferred income taxes (31 ) — Changes in
operating assets and liabilities: (Increase) decrease in accounts
receivable (8,531 ) 17,776 Decrease in inventories 1,357 1,139
Decrease (increase) in other current assets 3,043 (204 ) Increase
in lease receivable, net (3,104 ) — Decrease (increase) in deferred
costs and other contract assets 7,120 (5,706 ) (Increase) decrease
in other non-current assets (115 ) 644 (Decrease) increase in
accounts payable (6,097 ) 2,363 Decrease in accrued compensation
(19,364 ) (11,074 ) (Decrease) increase in accrued liabilities
(2,736 ) 2,193 Increase in income tax payable 5,566 6,318 Increase
in deferred revenue and other contract-related liabilities 2,377
2,381 Increase (decrease) in other non-current liabilities
626 (73 )
Net cash provided by operating
activities 42,468 71,995
Cash
flows from investing activities: Purchases of short-term
investments (180,000 ) — Purchases of property and equipment, net
(6,963 ) (3,788 ) Increase in intangible assets (1,040 )
(3,583 )
Net cash used in investing activities
(188,003 ) (7,371 )
Cash flows from financing
activities: Proceeds from issuance of common stock 6,288 8,415
Payroll tax withholdings on behalf of employees for vested equity
awards (123 ) (168 ) Repurchases of common stock —
(18,479 )
Net cash provided by (used in) financing
activities 6,165 (10,232 ) Effect of
foreign currency exchange rates on cash (261 ) (225 )
Net (decrease) increase in cash, cash equivalents, and restricted
cash (139,631 ) 54,167 Cash, cash equivalents and restricted cash
at beginning of period 552,641 315,483
Cash, cash equivalents and restricted cash at end of period $
413,010 $ 369,650
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190506005671/en/
Investor Contact: Eli Kammerman(949)
297-7077ekammerman@masimo.com
Media Contact: Irene Paigah(858)
859-7001irenep@masimo.com
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Masimo (NASDAQ:MASI)
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From Apr 2023 to Apr 2024