Complete fourth quarter and full-year 2021
financial results will be announced on Tuesday, February 15,
2022
- Preliminary full-year 2021 product revenue of approximately
$1,235 million to $1,240 million;
- Preliminary full-year 2021 GAAP earnings per diluted share and
non-GAAP earnings per diluted share are expected to exceed guidance
of $3.88 and $3.88, respectively; and
- Full-year 2022 financial guidance for product revenue, GAAP
earnings per diluted share and non-GAAP earnings per diluted share
of approximately $1,350 million, $4.27 and $4.34,
respectively.
Masimo Corporation (Nasdaq: MASI) today announced select
preliminary financial and operational results for the full-year
ended January 1, 2022 and provided estimates for its full-year 2022
financial guidance.
Preliminary Full-Year 2021
Results:
Masimo expects that its product revenue for the full-year 2021
will range from $1,235 million to $1,240 million, which reflects
reported growth of approximately 8.0% to 8.4% and constant currency
growth of 7.3% to 7.7%, respectively. The Company also expects
full-year 2021 shipments of noninvasive technology boards and
instruments of approximately 288,000.
Additionally, Masimo expects that full-year 2021 GAAP earnings
per diluted share and non-GAAP earnings per diluted share will
exceed previously issued financial guidance of $3.88 and $3.88 per
diluted share, respectively.
The preliminary financial information presented in this press
release is based on Masimo’s current expectations and may be
adjusted as a result of, among other things, completion of
customary annual audit procedures. Management plans to discuss
Masimo’s complete fourth quarter and full-year 2021 financial
results after the market closes on Tuesday, February 15, 2022.
2022 Financial Guidance:
The Company provided the following estimates for its full-year
2022 guidance:
2022 Guidance
(in millions, except percentages and
earnings per share)
GAAP
Non-GAAP
Product revenue
$1,350
$1,350
Percentage growth - as reported
8.9
%
to 9.3%
N/A
Percentage growth - constant currency
N/A
9.4
%
to 9.9%
Gross margin
66.2%
66.5%
Operating margin
23.0%
24.8%
Earnings per diluted share
$4.27
$4.34
______________
- Product revenue increasing to $1,350 million, which reflects
reported growth of 8.9% to 9.3% and constant currency growth of
9.4% to 9.9%;
- GAAP earnings per diluted share of $4.27;
- Non-GAAP earnings per diluted share of $4.34; and
- Included in our full-year 2022 revenue guidance is
approximately $7 million of year-over-year currency headwinds.
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 percentage, (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 revenue
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, integration and related
costs
These transactions represent gains, losses, and other related
costs associated with acquisitions, integrations, investments and
divestitures. These items also include but are not limited to
amortization and depreciation of intangible assets, asset
impairments, and in-process research and development. We believe
that the exclusion of these items is useful to management and
investors in evaluating the performance of our ongoing operations
on a period-to-period basis.
Litigation related expenses,
settlements and awards
These transactions represent gains, losses, and other related
costs associated with certain litigation matters, which can vary in
their characteristics, frequency and significance to our operating
results. We believe that the exclusion of these items is useful to
management and investors in evaluating the performance of our
ongoing operations on a period-to-period basis.
Other adjustments
In the event there are gains, losses and other adjustments which
impact period-to-period comparability and do not represent the
underlying ongoing results of the business, the Company may choose
to exclude these from non-GAAP earnings.
Realized and unrealized gains or
losses
These transactions represent gains, losses, and other related
costs associated with foreign currency denominated transactions and
investments. 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. Unrealized and
realized gains and losses on investments may impact the Company’s
reported results of operations for a period. These items are highly
variable, difficult to predict and outside the control of those
responsible for the underlying operations of the business. We
believe that exclusion of these items is useful to management and
investors in evaluating the performance of our ongoing operations
on a period-to-period basis.
Tax impact of non-GAAP
adjustments
In order to reflect the tax effected impact of the non-GAAP
adjustments, the Company will adjust the non-GAAP earnings by the
approximate tax impact of these adjustments.
Excess tax benefits from stock-based
compensation expense
GAAP requires that excess tax benefits recognized on stock-based
compensation expense be reflected in our provision for income taxes
rather than paid-in capital. As these excess tax benefits may be
highly variable from period-to-period, the Company may choose to
exclude these tax benefits from non-GAAP earnings to facilitate
comparability between periods and with peers.
RECONCILIATION OF GAAP PRODUCT
REVENUE GROWTH % TO CONSTANT CURRENCY PRODUCT REVENUE GROWTH
%(1):
Full-Year 2021
Guidance(2)
(in thousands, except
percentages)
Full-Year 2022
Guidance(2)
Low
High
Full-Year 2020 Actuals
GAAP product revenue
$
1,350,000
$
1,235,000
$
1,240,000
$
1,143,744
Non-GAAP constant currency
adjustments:
Constant currency F/X adjustments
7,000
(8,200)
(8,200)
—
Total non-GAAP constant currency
adjustments
7,000
(8,200)
(8,200)
—
Non-GAAP constant currency product
revenue
$
1,357,000
$
1,226,800
$
1,231,800
$
1,143,744
Product revenue growth %:
GAAP
8.9% to 9.3%
8.0
%
8.4
%
—
%
Non-GAAP constant currency
9.4% to 9.9%
7.3
%
7.7
%
—
%
__________________
(1) May not foot due to rounding. (2) Guidance provided January
11, 2022.
RECONCILIATION OF GAAP TO
NON-GAAP NET INCOME AND NET INCOME PER DILUTED SHARE(1):
Full-Year 2022
Guidance(2)
Full-Year 2021
Guidance(3)
(in thousands, except per share
amounts)
$
Per Diluted Share
$
Per Diluted Share
GAAP net income
$
251,100
$
4.27
$
224,000
$
3.88
Non-GAAP adjustments:
Acquisition, integration and related
costs
12,000
0.20
10,100
0.18
Litigation related expenses, settlements
and awards
12,000
0.20
5,000
0.09
Other adjustments
—
—
3,400
0.06
Realized and unrealized gains or
losses
—
—
1,100
0.02
Tax impact of non-GAAP adjustments
(4,000)
(0.07)
(3,500)
(0.06)
Excess tax benefits from stock-based
compensation expense
(16,000)
(0.27)
(16,000)
(0.28)
Total non-GAAP adjustments
4,000
0.07
100
—
Non-GAAP product net income
$
255,100
$
4.34
$
224,100
$
3.88
Weighted average shares outstanding -
diluted
58,800
57,700
__________________
(1) May not foot due to rounding. (2) Guidance provided January
11, 2022. (3) Guidance provided on October 26, 2021.
RECONCILIATION OF GAAP TO NON-GAAP GROSS MARGIN AND
OPERATING MARGIN(1):
Full-Year 2022
Guidance(2)
Full-Year 2021
Guidance(3)
(in thousands, except
percentages)
$
$
GAAP gross margin
$
893,500
$
803,700
Non-GAAP adjustments:
Acquisition, integration and related
costs
4,000
4,100
Other adjustments
—
3,400
Total non-GAAP adjustments
4,000
7,500
Non-GAAP gross margin
$
897,500
$
811,200
GAAP gross margin %
66.2
%
65.3
%
Non-GAAP gross margin %
66.5
%
66.0
%
GAAP operating income/margin
$
310,900
$
273,700
Non-GAAP adjustments:
Acquisition, integration and related
costs
12,000
10,100
Litigation related expenses, settlements
and awards
12,000
5,000
Other adjustments
—
3,400
Total non-GAAP adjustments
24,000
18,500
Non-GAAP operating income/margin
$
334,900
$
292,200
GAAP operating income/margin %
23.0
%
22.3
%
Non-GAAP operating income/margin %
24.8
%
23.8
%
__________________
(1) May not foot due to rounding. (2) Guidance provided January
11, 2022. (3) Guidance provided on October 26, 2021.
Conference Call:
The conference call to review Masimo’s complete fourth quarter
and full-year 2021 financial results will begin at 1:30 p.m. PT
(4:30 p.m. ET) on Tuesday, February 15, 2022 and will be hosted by
Joe Kiani, Chairman and Chief Executive Officer, and Micah Young,
Executive Vice President and Chief Financial Officer. A live
webcast of the conference call will be available online from the
investor relations page of the Company’s corporate website at
www.masimo.com.
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, reduce the
cost of care and take noninvasive monitoring to new sites and
applications. 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. Masimo SET® has also been shown to help
clinicians reduce severe retinopathy of prematurity in neonates,
improve CCHD screening in newborns, and, when used for continuous
monitoring with Masimo Patient SafetyNet™ in post-surgical wards,
reduce rapid response team activations, ICU transfers, and costs.
Masimo SET® is estimated to be used on more than 200 million
patients in leading hospitals and other healthcare settings around
the world, and is the primary pulse oximetry at 9 of the top 10
hospitals as ranked in the 2021-22 U.S. News and World Report Best
Hospitals Honor Roll. 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.
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 product revenue, including regarding product revenue growth,
constant currency revenue growth, shipments of noninvasive
technology boards and instruments, GAAP earnings per diluted share
and non-GAAP earnings per diluted share; and the statements
regarding our full year 2022 financial guidance; including with
respect to product revenue, product revenue growth and constant
currency revenue growth, gross margin, operating margin, GAAP
earnings per diluted share, non-GAAP diluted earnings per share and
year-over-year currency headwinds; our long-term outlook; our
ability to continue in our leadership in delivering innovative
solutions to clinicians and patients worldwide; 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: risks related to the
completion of customary annual audit procedures; risks 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220111005595/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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