PALO ALTO, Calif., July 24, 2019 /PRNewswire/ --
Third Quarter 2019 Summary
- Oncology Systems gross orders grew 2% in dollars, or 4% in
constant currency; Trailing twelve months gross orders grew 11% in
dollars, or 13% in constant currency
- Total company revenues grew 16% in dollars, or 19% in constant
currency, to $826 million
- GAAP operating earnings declined 48% at 6.5% of revenues;
Non-GAAP operating earnings grew 22% at 17.5% of revenues
- GAAP net earnings per diluted share of $0.32; Non-GAAP net earnings per diluted share of
$1.32
- GAAP net earnings include a $51
million impairment charge to Proton Solutions goodwill and
$31 million in acquisition related
costs
- US/China tariffs negatively
impacted revenue growth by $10
million or 140 basis points and GAAP operating earnings
growth by $15 million and as a
percentage of revenues by 170 basis points
- Updating fiscal year 2019 guidance; raising revenue growth
range to 9% to 10% and narrowing Non-GAAP net earnings per diluted
share range to $4.58 to $4.63
- Closed the acquisitions of CyberHeart, Cancer Treatment
Services International, Endocare, and Alicon
Varian (NYSE: VAR) today announced its third quarter fiscal year
2019 results.
"In the third quarter, our team delivered exceptional
performance growing Non-GAAP operating earnings faster than
revenue," said Dow Wilson, Chief Executive Officer of Varian.
"We are also excited about the progress we made in the quarter
toward our long-term strategy with additions to our portfolio in
technology-enabled services, interventional oncology, and cardiac
radioablation."
Summary
(Dollars and shares
in millions, except per share amounts)
|
Q3
2019
|
|
Q3
2018
|
|
Y/Y
|
|
FY
2019
|
|
FY
2018
|
|
Y/Y
|
Revenues
|
$
|
825.8
|
|
|
$
|
709.1
|
|
|
16
|
%
|
|
$
|
2,346.2
|
|
|
$
|
2,117.5
|
|
|
11
|
%
|
Gross margin as a
percentage of revenues
|
42.5
|
%
|
|
44.2
|
%
|
|
(170
bps)
|
|
|
42.0
|
%
|
|
44.2
|
%
|
|
(220
bps)
|
|
GAAP net earnings
attributable to Varian
|
$
|
29.4
|
|
|
$
|
72.6
|
|
|
(60)
|
%
|
|
$
|
221.2
|
|
|
$
|
33.5
|
|
|
N/M
|
|
GAAP net earnings per
share - diluted
|
$
|
0.32
|
|
|
$
|
0.79
|
|
|
(59)
|
%
|
|
$
|
2.41
|
|
|
$
|
0.36
|
|
|
N/M
|
|
Net cash provided by
operating activities
|
$
|
130.1
|
|
|
$
|
102.2
|
|
|
27
|
%
|
|
$
|
257.6
|
|
|
$
|
346.7
|
|
|
(26)
|
%
|
Non-GAAP net earnings
(1)
|
$
|
120.8
|
|
|
$
|
96.6
|
|
|
25
|
%
|
|
$
|
314.3
|
|
|
$
|
301.7
|
|
|
4
|
%
|
Non-GAAP net earnings
per share - diluted (1)
|
$
|
1.32
|
|
|
$
|
1.04
|
|
|
26
|
%
|
|
$
|
3.42
|
|
|
$
|
3.26
|
|
|
5
|
%
|
Shares used in
computing GAAP and non-GAAP net earnings per diluted
share
|
91.8
|
|
|
92.5
|
|
|
|
|
91.9
|
|
|
92.6
|
|
|
|
|
N/M - Not
meaningful
|
(1)
|
Non-GAAP net earnings
and Non-GAAP net earnings per diluted share are defined as GAAP net
earnings and GAAP net earnings per diluted share adjusted to
exclude the amortization of intangible assets and amortization of
inventory step-up, acquisition-related expenses or benefits and
in-process research and development, impairment charges,
significant litigation charges or benefits and legal costs, gains
and losses on equity investments, and significant non-recurring tax
expense or benefit.
|
The company ended the quarter with $523
million in cash and cash equivalents and $401 million in debt. Net cash provided by
operating activities was $130
million, up $28 million, due
to increased operating profit and strong collection momentum in the
Oncology business. During the quarter, the company invested
$49 million to repurchase three
hundred and fifty thousand shares of common stock.
Oncology Systems Segment
In the third quarter, Oncology revenues totaled $793
million, up 19%. Operating earnings were $149 million, up 18%. Oncology orders
were $778 million, up 2%. Orders in the Americas
decreased 1%. In EMEA, orders rose 8%, the eighth consecutive
quarter of double-digit growth on a constant currency basis for the
region. In APAC, orders decreased 1% with softness across the
region except in China, which saw
strong double-digit growth.
Proton Solutions Segment
In the third quarter, Proton Solutions revenues totaled
$31 million, down 26%.
Operating earnings were negatively impacted by a goodwill
impairment. Three new orders were taken in the quarter
totaling $108 million.
Non-GAAP Adjustments
Varian's GAAP net earnings include an impairment of $51 million related to the Proton Solutions
business, a $21 million charge
associated with the write-off of in-process research and
development acquired in the CyberHeart acquisition, and
$10 million of costs related to the
acquisitions of Cancer Treatment Services International, Endocare,
Alicon, and the anticipated asset purchase of the Boston Scientific
beads portfolio. Together, these costs, and their associated
tax effects, reduced Varian's net earnings in the third quarter of
fiscal 2019 by $0.88 per diluted
share on a GAAP basis and were excluded from non-GAAP results.
Guidance for Full Fiscal Year 2019
Varian is pleased with the underlying operational performance,
progress on tariff mitigation activities to date, and the recent
approval by the U.S. Trade Representative to retroactively exclude
tariffs on multi-leaf collimators sourced from China. The
company is investing more in innovation to drive long-term growth,
infrastructure to support the growth, and accelerating investments
in recent acquisitions.
The company is raising revenue growth guidance and updating the
following guidance for fiscal year 2019:
|
Prior
Guidance
|
|
Updated
Guidance
|
Revenues
|
$3.09 to $3.18
billion
|
|
$3.18 to $3.21
billion
|
Y/Y
|
6% to
9%
|
|
9% to
10%
|
Non-GAAP operating
earnings as a percentage of revenues
|
16.5% to
17.5%
|
|
16.5%
|
Non-GAAP net earnings
per share – diluted
|
$4.55 to
$4.70
|
|
$4.58 to
$4.63
|
Cash flows from
operations
|
$440 to $490
million
|
|
$430 to $470
million
|
The guidance assumes a Non-GAAP effective tax rate of 21% to 22%
and a weighted average diluted share count of 92 million, unchanged
from our original assumptions. The guidance also assumes
currency rates as of the beginning of the fiscal fourth quarter of
2019, includes the expected net impact of all tariffs currently in
effect, and includes acquisitions announced to date.
Unless otherwise stated, in this release all growth rates are
year-over-year, and any references to orders are gross
orders. All periods referred to are fiscal periods, and all
references to trailing twelve months refer to the trailing twelve
months ending on the last day of our most recently completed fiscal
quarter. Please refer to "Discussion of Non-GAAP Financial
Measures" below for a description of items excluded from expected
non-GAAP earnings.
Investor Conference Call
Varian Medical Systems is scheduled to conduct its third quarter
fiscal year 2019 conference call at 1:30
p.m. Pacific Time today. To access the live webcast or
replay of the call, visit the Investor Relations page on our
website at www.varian.com/investors. To access the call via
telephone, dial 1-877-869-3847 from inside the U.S. or
1-201-689-8261 from outside the U.S. The replay can be
accessed by dialing 1-877-660-6853 from inside the U.S. or
1-201-612-7415 from outside the U.S. and entering conference ID
13691935. The teleconference replay will be available through
5:00 p.m. Pacific Time, Friday, July 26, 2019.
About Varian
At Varian, we envision a world without fear of cancer. For
more than 70 years, we have developed, built and delivered
innovative cancer care technologies and solutions for our clinical
partners around the globe to help them treat millions of patients
each year. With an Intelligent Cancer Care approach, we are
harnessing advanced technologies like artificial intelligence,
machine learning and data analytics to enhance cancer treatment and
expand access to care. Our 9,200 employees across 70
countries keep the patient and our clinical partners at the center
of our thinking as we power new victories in cancer care.
Because, for cancer patients everywhere, their fight is our
fight. For more information, visit http://www.varian.com and
follow @VarianMedSys on Twitter.
Forward-Looking
Statements
Except for historical
information, this news release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Statements concerning industry or market outlook,
including growth drivers; the company's future orders, revenues,
operating expenses, tax rate, cash flows, earnings growth or other
financial results; and any statements using the terms "could,"
"believe," "expect," "promising," "outlook," "should,"
"well-positioned," "will" or similar statements are forward-looking
statements that involve risks and uncertainties that could cause
the company's actual results to differ materially from those
anticipated. Such risks and uncertainties include our ability to
achieve expected synergies from acquisitions; risks associated with
integrating recent acquisitions; global economic conditions and
changes to trends for cancer treatment regionally; currency
exchange rates and tax rates; the impact of the Tax Cuts and Jobs
Act; the impact of the Affordable Health Care for America Act
(including excise taxes on medical devices) and any further
healthcare reforms (including changes to Medicare and Medicaid),
and/or changes in third-party reimbursement levels; recent and
potential future tariffs or a global trade war; demand for and
delays in delivery of the company's products; the company's ability
to develop, commercialize and deploy new products; the company's
ability to meet Food and Drug Administration (FDA) and other
regulatory requirements, regulations or procedures; changes in
regulatory environments; risks associated with the company
providing financing for the construction and start-up operations of
particle therapy centers, challenges associated with
commercializing the company's proton solutions business; challenges
to public tender awards and the loss of such awards or other
orders; the effect of adverse publicity; the company's reliance on
sole or limited-source suppliers; the company's ability to maintain
or increase margins; the impact of competitive products and
pricing; the potential loss of key distributors or key personnel;
challenges related to entering into new business lines; and the
other risks listed from time to time in the company's filings with
the Securities and Exchange Commission, which by this reference are
incorporated herein. The company assumes no obligation to update or
revise the forward-looking statements in this release because of
new information, future events, or otherwise.
Varian has not filed
its Form 10-Q for the quarter ended June 28, 2019. As a
result, all financial results described here should be considered
preliminary, and are subject to change to reflect any necessary
adjustments, completion of purchase accounting, or changes in
accounting estimates, that are identified prior to the time the
company files the Form 10-Q.
|
Varian Medical
Systems, Inc. and Subsidiaries
|
Preliminary
Condensed Consolidated Statements of Earnings
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(Dollars and
shares in millions, except per share amounts)
|
|
Q3
2019
|
|
Q3
2018
|
|
FY
2019
|
|
FY
2018
|
|
Gross
orders
|
|
$
|
891.6
|
|
|
$
|
767.1
|
|
|
$
|
2,384.2
|
|
|
$
|
2,099.2
|
|
|
Oncology
Systems
|
|
778.3
|
|
|
763.3
|
|
|
2,261.0
|
|
|
2,047.3
|
|
|
Proton
Solutions
|
|
111.3
|
|
|
3.8
|
|
|
121.2
|
|
|
51.9
|
|
|
Other
|
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
Order
backlog
|
|
3,118.4
|
|
|
2,948.9
|
|
|
3,118.4
|
|
|
2,948.9
|
|
|
Revenues
|
|
825.8
|
|
|
709.1
|
|
|
2,346.2
|
|
|
2,117.5
|
|
|
Oncology
Systems
|
|
792.9
|
|
|
667.2
|
|
|
2,242.2
|
|
|
2,014.6
|
|
|
Proton
Solutions
|
|
30.9
|
|
|
41.9
|
|
|
102.0
|
|
|
102.9
|
|
|
Other
|
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
Cost of
revenues
|
|
474.4
|
|
|
395.5
|
|
|
1,360.5
|
|
|
1,182.6
|
|
|
Gross
margin
|
|
351.4
|
|
|
313.6
|
|
|
985.7
|
|
|
934.9
|
|
|
As a percentage of
revenues
|
|
42.5
|
%
|
|
44.2
|
%
|
|
42.0
|
%
|
|
44.2
|
%
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
62.1
|
|
|
59.5
|
|
|
182.4
|
|
|
174.3
|
|
|
Selling, general and
administrative
|
|
153.6
|
|
|
140.4
|
|
|
441.5
|
|
|
400.3
|
|
|
Impairment
charges
|
|
50.6
|
|
|
11.0
|
|
|
50.6
|
|
|
22.1
|
|
|
Acquisition-related
expenses (benefits) and in-process R&D
|
|
31.2
|
|
|
(0.6)
|
|
|
35.8
|
|
|
4.2
|
|
|
Operating
earnings
|
|
53.9
|
|
|
103.3
|
|
|
275.4
|
|
|
334.0
|
|
|
As a percentage of
revenues
|
|
6.5
|
%
|
|
14.6
|
%
|
|
11.7
|
%
|
|
15.8
|
%
|
|
Interest income,
net
|
|
1.9
|
|
|
0.5
|
|
|
7.6
|
|
|
2.9
|
|
|
Other income
(expense), net
|
|
4.2
|
|
|
(11.8)
|
|
|
27.4
|
|
|
(26.8)
|
|
|
Earnings before
taxes
|
|
60.0
|
|
|
92.0
|
|
|
310.4
|
|
|
310.1
|
|
|
Taxes on
earnings
|
|
30.5
|
|
|
19.5
|
|
|
88.6
|
|
|
276.6
|
|
|
Net
earnings
|
|
29.5
|
|
|
72.5
|
|
|
221.8
|
|
|
33.5
|
|
|
Less: Net earnings
(loss) attributable to non-controlling interests
|
|
0.1
|
|
|
(0.1)
|
|
|
0.6
|
|
|
—
|
|
|
Net earnings
attributable to Varian
|
|
$
|
29.4
|
|
|
$
|
72.6
|
|
|
$
|
221.2
|
|
|
$
|
33.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – basic
|
|
$
|
0.32
|
|
|
$
|
0.79
|
|
|
$
|
2.43
|
|
|
$
|
0.37
|
|
|
Net earnings per
share – diluted
|
|
$
|
0.32
|
|
|
$
|
0.79
|
|
|
$
|
2.41
|
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the
calculation of net earnings per share:
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
|
91.0
|
|
|
91.5
|
|
|
91.0
|
|
|
91.6
|
|
|
Weighted average
shares outstanding - diluted
|
|
91.8
|
|
|
92.5
|
|
|
91.9
|
|
|
92.6
|
|
|
Varian Medical
Systems, Inc. and Subsidiaries
|
Preliminary
Condensed Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
June
28,
|
|
September 28,
|
(In
millions)
|
2019
|
2018
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
523.4
|
|
|
$
|
504.8
|
|
Trade and unbilled
receivables, net
|
|
1,058.0
|
|
|
1,009.9
|
|
Inventories
|
|
529.3
|
|
|
438.1
|
|
Prepaid expenses and
other current assets
|
|
231.2
|
|
|
233.3
|
|
Current assets of
discontinued operations
|
|
—
|
|
|
2.3
|
|
Total current
assets
|
|
2,341.9
|
|
|
2,188.4
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
307.3
|
|
|
274.6
|
|
Goodwill
|
|
559.1
|
|
|
293.6
|
|
Intangible
assets
|
|
283.1
|
|
|
101.1
|
|
Deferred tax
assets
|
|
93.9
|
|
|
102.2
|
|
Other
assets
|
|
384.7
|
|
|
292.8
|
|
Total
assets
|
|
$
|
3,970.0
|
|
|
$
|
3,252.7
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
228.0
|
|
|
$
|
190.3
|
|
Accrued
liabilities
|
|
432.8
|
|
|
419.7
|
|
Deferred
revenues
|
|
751.2
|
|
|
729.7
|
|
Short-term
borrowings
|
|
400.0
|
|
|
—
|
|
Current maturities of
long-term debt
|
|
0.8
|
|
|
—
|
|
Total current
liabilities
|
|
1,812.8
|
|
|
1,339.7
|
|
Other long-term
liabilities
|
|
401.3
|
|
|
324.3
|
|
Total
liabilities
|
|
2,214.1
|
|
|
1,664.0
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
Varian stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
91.0
|
|
|
91.2
|
|
Capital in excess of
par value
|
|
831.4
|
|
|
778.1
|
|
Retained
earnings
|
|
890.6
|
|
|
780.4
|
|
Accumulated other
comprehensive loss
|
|
(69.7)
|
|
|
(65.3)
|
|
Total Varian
stockholders' equity
|
|
1,743.3
|
|
|
1,584.4
|
|
Non-controlling
interests
|
|
12.6
|
|
|
4.3
|
|
Total
equity
|
|
1,755.9
|
|
|
1,588.7
|
|
Total liabilities
and equity
|
|
$
|
3,970.0
|
|
|
$
|
3,252.7
|
|
|
|
|
|
|
Discussion of Non-GAAP Financial Measures
This press release includes the following non-GAAP financial
measures derived from our Condensed Consolidated Statements of
Earnings: non-GAAP operating earnings, non-GAAP net earnings and
non-GAAP net earnings per diluted share. We define non-GAAP
operating earnings as operating earnings excluding amortization of
intangible assets, acquisition-related expenses or benefits and
in-process research and development, impairment charges, and
significant litigation charges or benefits and legal costs. These
measures are not presented in accordance with, nor are they a
substitute for U.S. generally accepted accounting principles, or
GAAP. In addition, these measures may be different from non-GAAP
measures used by other companies, limiting their usefulness for
comparison purposes. The non-GAAP financial measures should not be
considered in isolation from measures of financial performance
prepared in accordance with GAAP. Investors are cautioned that
there are material limitations associated with the use of non-GAAP
financial measures as an analytical tool. We have provided a
reconciliation of each non-GAAP financial measure used in this
earnings release to the most directly comparable GAAP financial
measure. We have not provided a reconciliation of non-GAAP guidance
measures to the corresponding GAAP measures on a forward-looking
basis due to the potential significant variability and limited
visibility of the excluded items discussed below.
We utilize a number of different financial measures, both GAAP
and non-GAAP, in analyzing and assessing the overall performance of
our business, in making operating decisions, forecasting and
planning for future periods, and determining payments under
compensation programs. We consider the use of the non-GAAP measures
to be helpful in assessing the performance of the ongoing operation
of our business. We believe that disclosing non-GAAP financial
measures provides useful supplemental data that, while not a
substitute for financial measures prepared in accordance with GAAP,
allows for greater transparency in the review of our financial and
operational performance. We also believe that disclosing non-GAAP
financial measures provides useful information to investors and
others in understanding and evaluating our operating results and
future prospects in the same manner as management and in comparing
financial results across accounting periods and to those of peer
companies. Non-GAAP operating earnings and non-GAAP net earnings
exclude the following items, except for gain or losses on equity
investments, loss on hedges related to acquisition-related
activities, and significant non-recurring tax expense or benefit,
which are only excluded from non-GAAP net earnings:
Amortization of intangible assets and amortization of
inventory step-up: We do not acquire businesses and
assets on a predictable cycle. The amount of purchase price
allocated to intangible assets, the step-up of inventory values,
and the term of amortization can vary significantly and are unique
to each acquisition or purchase. We believe that excluding
amortization of intangible assets and amortization of inventory
step-up allows the users of our financial statements to better
review and understand the historic and current results of our
operations, and also facilitates comparisons to peer companies.
Acquisition and integration-related expenses and benefits and
in-process research and development: We incur expenses
or benefits with respect to certain items associated with our
acquisitions, such as transaction costs, hedging gains and losses,
changes in the fair value of contingent consideration liabilities,
gain or expense on settlement of pre-existing relationships,
integration costs, breakup fees, write-off of in-process research
and development, etc. We exclude such expenses or benefits as they
are related to acquisitions and have no direct correlation to the
operation of our on-going business.
Impairment charges: We incur impairment
charges that result from events, which arise from unforeseen
circumstances and/or often occur outside of the ordinary course of
our on-going business. Although these events are reflected in our
GAAP financials, these unique transactions may limit the
comparability of our on-going operations with prior and future
periods.
Significant litigation charges or benefits and legal
costs: We may incur charges or benefits as well as legal costs
from time to time related to litigation and other contingencies. We
exclude these charges or benefits, when significant, as well as
legal costs associated with significant legal matters, because we
do not believe they are reflective of on-going business and
operating results.
Gains or losses on equity investments: We may incur
gains or losses from the sale of our equity investments in
privately-held companies. We do not trade equity investments, and
we do not plan on these investments for funding of ongoing
operations. We exclude such gains or losses because we do not
believe they are reflective of our core business.
Significant non-recurring tax expense or benefit:
We may incur significant tax expense or benefit as a result of tax
legislation and/or a change in judgment about the need for a
valuation allowance that are generally unrelated to the level of
business activity in the period in which these tax effects are
reported. We exclude such expenses or benefits from our non-GAAP
net earnings because we believe they do not accurately reflect the
underlying performance of our continuing business operations.
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.
The following table reconciles GAAP and non-GAAP financial
measures:
Varian Medical
Systems, Inc. and Subsidiaries
|
Reconciliation of
Preliminary GAAP and Non-GAAP Financial Measures
|
(Unaudited)
|
|
(Dollars and
shares in millions, except per share amounts)
|
|
Q3
2019
|
|
Q3
2018
|
|
FY
2019
|
|
FY
2018
|
Non-GAAP
adjustments
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets and inventory step-up (1)
|
|
$
|
6.8
|
|
|
$
|
4.1
|
|
|
$
|
17.1
|
|
|
$
|
10.7
|
|
Acquisition-related
expenses (benefits) and in-process R&D
(2)
|
|
31.2
|
|
|
(0.6)
|
|
|
35.8
|
|
|
4.2
|
|
Impairment charges
(3)
|
|
50.6
|
|
|
11.0
|
|
|
50.6
|
|
|
22.1
|
|
Litigation charge and
legal costs
|
|
1.0
|
|
|
—
|
|
|
2.7
|
|
|
—
|
|
Other
|
|
0.8
|
|
|
0.2
|
|
|
0.8
|
|
|
0.3
|
|
Total non-GAAP
adjustments to operating earnings
|
|
90.4
|
|
|
14.7
|
|
|
107.0
|
|
|
37.3
|
|
(Gain) on equity
investments (4)
|
|
(2.0)
|
|
|
—
|
|
|
(23.8)
|
|
|
—
|
|
Loss on hedges
related to acquisition-related activities (5)
|
|
—
|
|
|
13.3
|
|
|
—
|
|
|
29.7
|
|
Tax effects of
non-GAAP adjustments
|
|
(2.5)
|
|
|
(5.6)
|
|
|
(0.4)
|
|
|
(13.7)
|
|
Significant effects
of tax legislation (6)
|
|
5.5
|
|
|
1.6
|
|
|
7.8
|
|
|
214.9
|
|
Changes in deferred
tax related to an acquisition (7)
|
|
—
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
Total net earnings
impact from non-GAAP adjustments
|
|
$
|
91.4
|
|
|
$
|
24.0
|
|
|
$
|
93.1
|
|
|
$
|
268.2
|
|
Operating earnings
reconciliation
|
|
|
|
|
|
|
|
|
GAAP operating
earnings
|
|
$
|
53.9
|
|
|
$
|
103.3
|
|
|
$
|
275.4
|
|
|
$
|
334.0
|
|
Total operating
earnings impact from non-GAAP adjustments
|
|
90.4
|
|
|
14.7
|
|
|
107.0
|
|
|
37.3
|
|
Non-GAAP operating
earnings
|
|
$
|
144.3
|
|
|
$
|
118.0
|
|
|
$
|
382.4
|
|
|
$
|
371.3
|
|
Net earnings and
net earnings per diluted share reconciliation
|
|
|
|
|
|
|
|
|
GAAP net earnings
attributable to Varian
|
|
$
|
29.4
|
|
|
$
|
72.6
|
|
|
$
|
221.2
|
|
|
$
|
33.5
|
|
Total net earnings
impact from non-GAAP adjustments
|
|
91.4
|
|
|
24.0
|
|
|
93.1
|
|
|
268.2
|
|
Non-GAAP net earnings
attributable to Varian
|
|
$
|
120.8
|
|
|
$
|
96.6
|
|
|
$
|
314.3
|
|
|
$
|
301.7
|
|
GAAP net earnings per
share - diluted
|
|
$
|
0.32
|
|
|
$
|
0.79
|
|
|
$
|
2.41
|
|
|
$
|
0.36
|
|
Non-GAAP net earnings
per share - diluted
|
|
$
|
1.32
|
|
|
$
|
1.04
|
|
|
$
|
3.42
|
|
|
$
|
3.26
|
|
Shares used in
computing GAAP and non-GAAP net earnings per diluted
share
|
|
91.8
|
|
|
92.5
|
|
|
91.9
|
|
|
92.6
|
|
|
|
(1)
|
Includes $3.2
million, $1.9 million, $8.0 million and $4.6 million, respectively
in cost of revenues for the periods presented.
|
(2)
|
Includes a $20.8
million charge associated with the write-off of in-process research
and development acquired in the CyberHeart acquisition.
|
(3)
|
Includes a $50.5
million goodwill impairment charge related to our Proton Solutions
business in the third quarter of 2019.
|
(4)
|
Primarily includes
$22.0 million gain on the sale of our investment in Augmenix in the
year-to-date period 2019.
|
(5)
|
Represents the
hedging loss related to the Australian dollar purchase price for
the anticipated Sirtex Medical Limited acquisition.
|
(6)
|
Represents the tax
effect of a change in law related to the U.S. Tax Cuts and Jobs
Act. The mandatory deemed repatriation of unremitted foreign
earnings results in an estimated charge of $6.4 million in the
third quarter and $8.7 million in the year-to-date period 2019 and
$173.1 million in the year-to-date period 2018. The corporate rate
reduction resulted in a remeasurement of our deferred tax assets of
$0.9 million for third quarter and year-to-date period of 2019 and
$1.6 million in the third quarter and $41.8 million in the
year-to-date period 2018.
|
(7)
|
Represents the charge
to income tax expense due to the increase of a valuation allowance
as a result of an acquisition.
|
Investor Relations Contact
J. Michael Bruff
Senior Vice President, Investor Relations
+1 (650) 424-5163
investors@varian.com
Press Contact
Mark
Plungy
Director, Public Relations
+1 (650) 424-5630
mark.plungy@varian.com
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content:http://www.prnewswire.com/news-releases/varian-reports-results-for-third-quarter-of-fiscal-year-2019-300890549.html
SOURCE Varian