SAN DIEGO, Feb. 15, 2011 /PRNewswire/ -- Gen-Probe
Incorporated (Nasdaq: GPRO) today reported financial results for
the fourth quarter and full year 2010, highlighted by record
non-GAAP earnings per share (EPS) of $0.61 in the quarter, 17% higher than in the
prior year period.
"In the fourth quarter of 2010, Gen-Probe generated record
clinical diagnostics sales and an all-time high in earnings per
share despite macroeconomic headwinds and unusually strong sales of
influenza products a year ago," said Carl
Hull, the Company's president and chief executive officer.
"At the same time, we took important steps to accelerate our
future growth by filing US regulatory applications for the APTIMA®
human papillomavirus (HPV) and trichomonas products, and by
acquiring GTI Diagnostics."
Key financial results for the fourth quarter of 2010 were ($ in
millions, except EPS):
|
|
|
Non-GAAP
|
|
GAAP
|
|
|
2010
|
2009
|
Change
|
|
2010
|
2009
|
Change
|
|
Product sales
|
$131.1
|
$135.5
|
-3%
|
|
$131.1
|
$135.5
|
-3%
|
|
Total revenues
|
$136.7
|
$138.9
|
-2%
|
|
$136.7
|
$138.9
|
-2%
|
|
Operating profit
|
$40.1
|
$37.4
|
+7%
|
|
$36.8
|
$34.9
|
+5%
|
|
Net income
|
$29.4
|
$25.8
|
+14%
|
|
$27.2
|
$24.0
|
+13%
|
|
EPS
|
$0.61
|
$0.52
|
+17%
|
|
$0.56
|
$0.48
|
+17%
|
|
|
|
|
|
|
|
|
|
|
|
Key financial results for the full year 2010 were ($ in
millions, except EPS):
|
|
|
Non-GAAP
|
|
GAAP
|
|
|
2010
|
2009
|
Change
|
|
2010
|
2009
|
Change
|
|
Product sales
|
$522.7
|
$483.8
|
+8%
|
|
$522.7
|
$483.8
|
+8%
|
|
Total revenues
|
$543.3
|
$498.3
|
+9%
|
|
$543.3
|
$498.3
|
+9%
|
|
Operating profit
|
$149.4
|
$131.0
|
+14%
|
|
$137.8
|
$120.1
|
+15%
|
|
Net income
|
$107.5
|
$99.8
|
+8%
|
|
$106.9
|
$91.8
|
+16%
|
|
EPS
|
$2.19
|
$1.95
|
+12%
|
|
$2.18
|
$1.79
|
+22%
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Detail
Clinical diagnostics product sales established a new record in
the fourth quarter of 2010, with growth driven by the APTIMA Combo
2® assay for detecting Chlamydia and gonorrhea.
Increased APTIMA sales offset lower sales of PRODESSE
influenza assays, which were unusually strong in the prior year
period due to the H1N1 pandemic. Foreign exchange
fluctuations reduced clinical diagnostics sales by an estimated
$0.5 million, or less than 1%,
compared to the prior year period.
Blood screening product sales decreased in the fourth quarter of
2010, as expected, due to lower sales of TIGRIS® instruments to
Novartis, the Company's blood screening collaboration partner.
Sales of blood screening assays were flat compared to the
prior year period. Foreign exchange fluctuations reduced
blood screening sales by an estimated $0.7
million, or 1%, compared to the prior year period.
Sales of research products and services in the fourth quarter of
2010 declined mainly due to the divestiture of the BioKits food
testing business late in 2009, and foreign exchange effects.
Fourth quarter product sales were ($ in millions):
|
|
|
Three Months
Ended Dec. 31,
|
|
Change
|
|
|
2010
|
2009
|
|
As
Reported
|
Constant
Currency
|
|
Clinical Diagnostics
|
$80.1
|
$77.6
|
|
+3%
|
+4%
|
|
Blood Screening
|
$47.6
|
$53.4
|
|
-11%
|
-10%
|
|
Research Products and
Services
|
$3.4
|
$4.4
|
|
-23%
|
-21%
|
|
Total Product Sales
|
$131.1
|
$135.5
|
|
-3%
|
-2%
|
|
|
|
|
|
|
|
|
|
Product sales for the full year 2010 were ($ in millions):
|
|
|
12 Months
Ended Dec. 31,
|
|
Change
|
|
|
2010
|
2009
|
|
As
Reported
|
Constant
Currency
|
|
Clinical Diagnostics
|
$305.8
|
$274.2
|
|
+12%
|
+12%
|
|
Blood Screening
|
$203.1
|
$197.5
|
|
+3%
|
+3%
|
|
Research Products and
Services
|
$13.8
|
$12.0
|
|
+15%
|
+17%
|
|
Total Product Sales
|
$522.7
|
$483.8
|
|
+8%
|
+8%
|
|
|
|
|
|
|
|
|
|
Collaborative research revenues in the fourth quarter of 2010
were $3.7 million, compared to
$2.0 million in the prior year
period, an increase of 85% that resulted primarily from increased
funding from Novartis associated with the development of the fully
automated PANTHER™ instrument and the PROCLEIX® ULTRIO® Plus assay
for the blood screening market.
Royalty and license revenues in the fourth quarter of 2010 were
$1.9 million, compared to
$1.4 million in the prior year
period, an increase of 36% that resulted primarily from higher
royalties received from Novartis and Ventana.
GAAP Income Statement Details
Gross margin on product sales was 69.4% in the fourth quarter of
2010, compared to 67.2% in the prior year period. This
increase resulted mainly from decreased sales of low-margin
instruments.
Acquisition-related amortization expenses were $2.2 million in the fourth quarter of 2010,
compared to $1.9 million in the prior
year period, an increase of 16% that resulted mainly from the
October 2009 acquisition of Prodesse
and its related intangible assets.
Research and development (R&D) expenses in the fourth
quarter of 2010 were $26.9 million,
compared to $27.4 million in the
prior year period, a decrease of 2% that resulted primarily from
lower clinical trial expenses.
Marketing and sales expenses in the fourth quarter of 2010 were
$15.0 million, similar to
$15.3 million in the prior year
period.
G&A expenses were $15.6
million in the fourth quarter of 2010, compared to
$14.9 million in the prior year
period, an increase of 5% that resulted mainly from expenses
associated with the consolidation of United Kingdom operations and the acquisition
of GTI Diagnostics.
Total other income was $1.2
million in the fourth quarter of 2010, compared to
$2.3 million in the prior year
period. This decrease of 48% resulted primarily from lower
realized gains from the sale of marketable securities, lower yields
on the Company's municipal bond portfolio, and lower investment
balances due to share repurchases, acquisitions and strategic
investments.
Income tax expense was $10.8
million in the fourth quarter of 2010, corresponding to a
tax rate of 28%. Income tax expense benefited from the
reinstatement of the federal R&D tax credit, which was
retroactive to the beginning of 2010.
Non-GAAP Income Statement Details
Excluding $0.1 million of
acquisition-related depreciation expense, gross margin on product
sales in the fourth quarter of 2010 was 69.5%, compared to 67.3% in
the prior year period.
Excluding transaction-related costs, general and administrative
(G&A) expenses in the fourth quarter of 2010 were $14.7 million, similar to $14.5 million in the prior year period.
Excluding a $0.4 million non-cash
gain on a change in the fair value of contingent consideration,
total other income in the fourth quarter of 2010 was $0.8 million, compared to $2.3 million in the prior year period.
Excluding adjustments to contingent consideration that largely
are not taxable, income tax expense in the fourth quarter of 2010
was $11.4 million, corresponding to a
tax rate of 28%.
Cash Flows and Balance Sheet
In the fourth quarter of 2010, Gen-Probe generated net cash of
$43.8 million from operating
activities, and spent $8.6 million on
property, plant and equipment, leading to free cash flow of
$35.2 million. The Company
repurchased approximately 245,000 shares of its stock in the fourth
quarter for $11.9 million, thereby
completing its $100 million buyback
program. In a separate press release today, Gen-Probe
announced a new, $150 million stock
repurchase program.
Gen-Probe continues to have a strong balance sheet. As of
December 31, 2010, the Company had
$489.7 million of cash, cash
equivalents and marketable securities, and $240.0 million of short-term debt. The
Company pays interest on this debt at a rate 0.6% above the
one-month London Interbank Offered Rate (LIBOR), which has been
below 0.3%.
2011 Financial Guidance
"We anticipate 2011 will be a good year financially for
Gen-Probe," said Herm Rosenman, the
Company's senior vice president and chief financial officer.
"As we said in our recent analyst day, we forecast continued,
high-single-digit growth in product sales, even as instrument sales
decline. We also expect improving gross and operating margins
to drive solid earnings growth, despite increased legal expenses
and lower non-operating income." Gen-Probe's 2011 financial
guidance is described in the table below:
|
|
|
Non-GAAP
|
GAAP
|
|
Total revenues
|
$570 to $595
million
|
$570 to $595
million
|
|
Product gross
margins
|
68% to
69.5%
|
68% to
69.5%
|
|
Acquisition-related
amortization and other transaction expense
|
N/A
|
$13 to 14
million
|
|
Operating
margin
|
27% to
29%
|
25% to
27%
|
|
Tax rate
|
32% to
33%
|
32% to
33%
|
|
Diluted shares
|
48 to 49
million
|
48 to 49
million
|
|
EPS
|
$2.28 to
$2.40
|
$2.06 to
$2.20
|
|
|
|
|
|
|
Notes on Presentation
In this press release, all per share amounts are calculated on a
fully diluted basis. Some totals may not foot due to
rounding. Certain prior year amounts have been reclassified
to conform to the current year presentation.
About Non-GAAP Financial Measures
To supplement Gen-Probe's financial results for the fourth
quarter of 2010 and its 2011 financial guidance, in each case
presented in accordance with GAAP, Gen-Probe uses the following
financial measures defined as non-GAAP by the SEC: non-GAAP net
income, non-GAAP gross margin, non-GAAP marketing and sales
expenses, non-GAAP G&A expenses, non-GAAP operating margin,
non-GAAP income tax rate, and non-GAAP EPS. Gen-Probe's
management does not, nor does it suggest that investors should,
consider such non-GAAP financial measures in isolation from, or as
a substitute for, financial information prepared and presented in
accordance with GAAP. Gen-Probe's management believes that
these non-GAAP financial measures provide meaningful supplemental
information regarding the Company's performance by excluding
certain expenses and adjustments that may not be indicative of core
business results. Gen-Probe believes that both management and
investors benefit from referring to these non-GAAP financial
measures in assessing Gen-Probe's performance and when planning,
forecasting and analyzing future periods. These non-GAAP
financial measures also facilitate management's internal
comparisons to Gen-Probe's historical performance and our
competitors' operating results. Gen-Probe believes these
non-GAAP financial measures are useful to investors in allowing for
greater transparency with respect to supplemental information used
by management in its financial and operational decision making.
Further, our reconciliations of non-GAAP to GAAP operating
results, which are included on the attached tables, are presented
in the format of consolidated statements of income solely to assist
a reader in understanding the impact of the various adjustments to
our GAAP operating results, individually and in the aggregate, and
are not intended to place any undue prominence on our non-GAAP
operating results.
Webcast Conference Call
A live webcast of Gen-Probe's fourth quarter 2010 conference
call for investors can be accessed at http://www.gen-probe.com
beginning at 4:30 p.m. Eastern Time
today. The webcast will be archived for at least 90 days. A
telephone replay of the call will be available for approximately 24
hours. Call 800-294-4406 (US) or 203-369-3231
(international).
About Gen-Probe
Gen-Probe is a global leader in the development, manufacture and
marketing of rapid, accurate and cost-effective molecular
diagnostic products and services that are used primarily to
diagnose human diseases, screen donated human blood, and ensure
transplant compatibility. Gen-Probe has approximately 28
years of expertise in nucleic acid testing (NAT), and received the
2004 National Medal of Technology, America's highest honor for
technological innovation, for developing NAT assays for blood
screening. Gen-Probe is headquartered in San Diego and employs approximately 1,400
people. For more information, go to www.gen-probe.com.
Trademarks
APTIMA, APTIMA COMBO 2, PANTHER, PRODESSE and TIGRIS are
trademarks of Gen-Probe. All other trademarks are the
property of their owners.
Caution Regarding Forward-Looking Statements
Any statements in this news release about our expectations,
beliefs, plans, objectives, assumptions or future events or
performance, including those under the heading " 2011 Financial
Guidance," are not historical facts and are forward-looking
statements. These statements are often, but not always, made
through the use of words or phrases such as believe, will, expect,
anticipate, estimate, intend, plan and would. For example,
statements concerning Gen-Probe's financial condition, possible or
expected results of operations, the development and
commercialization of new products, regulatory approvals, future
milestones, growth opportunities, and plans of management are all
forward-looking statements. Forward-looking statements are
not guarantees of performance. They involve known and unknown
risks, uncertainties and assumptions that may cause actual results,
levels of activity, performance or achievements to differ
materially from those expressed or implied. Some of these
risks, uncertainties and assumptions include but are not limited
to: (i) the risk that we may not achieve our expected 2011
financial targets, (ii) the risk that we may not integrate
acquisitions, such as Tepnel, Prodesse and GTI Diagnostics,
successfully, (iii) the possibility that the market for the sale of
our new products, such as our PANTHER instrument system and
PROGENSA PCA3, APTIMA HPV and APTIMA trichomonas assays, may not
develop as expected, (iv) the enhancement of existing products and
the development of new products may not proceed as planned, (v) the
risk that investigational products, including those now in US
clinical trials, may not be approved by regulatory authorities or
become commercially available in the time frame we anticipate, or
at all, (vi) the risk that we may not be able to compete
effectively, (vii) the risk that we may not be able to maintain our
current corporate collaborations and enter into new corporate
collaborations or customer contracts, (viii) our dependence on
Novartis and other third parties for the distribution of some of
our products, (ix) our dependence on a small number of customers,
contract manufacturers and single source suppliers of raw
materials, (x) changes in third-party reimbursement policies
regarding our products could adversely affect sales, (xi) changes
in government regulation or tax policy affecting our diagnostic
products could harm our sales, increase our development costs or
increase our taxes, (xii) the risk that our intellectual property
may be infringed by third parties or invalidated, and (xiii) our
involvement in patent and other intellectual property and
commercial litigation could be expensive and could divert
management's attention. This list includes some, but not all,
of the factors that could affect our ability to achieve results
described in any forward-looking statements. For additional
information about risks and uncertainties we face and a discussion
of our financial statements and footnotes, see documents we file
with the SEC, including our most recent annual report on Form 10-K
and all subsequent periodic reports. We assume no obligation
and expressly disclaim any duty to update forward-looking
statements to reflect events or circumstances after the date of
this news release or to reflect the occurrence of subsequent
events.
Gen-Probe
Incorporated
Consolidated
Balance Sheets – GAAP
(In
thousands, except share and per share data)
|
|
|
December
31,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
|
(unaudited)
|
|
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and
cash equivalents, including restricted cash of $16 and $17
at
December 31, 2010 and
December 31, 2009, respectively
|
$ 59,690
|
|
$ 82,616
|
|
Marketable
securities
|
170,648
|
|
402,990
|
|
Trade
accounts receivable, net of allowance for doubtful accounts of
$355
and $516 at December 31, 2010
and December 31, 2009, respectively
|
54,739
|
|
55,305
|
|
|
|
|
|
|
Accounts receivable —
other
|
5,493
|
|
4,707
|
|
Inventories
|
66,416
|
|
61,071
|
|
Deferred income
tax
|
13,634
|
|
13,959
|
|
Prepaid income
tax
|
2,993
|
|
7,317
|
|
Prepaid
expenses
|
11,672
|
|
14,526
|
|
Other current
assets
|
5,148
|
|
4,708
|
|
Total current assets
|
390,433
|
|
647,199
|
|
|
|
|
|
|
Marketable securities, net of
current portion
|
259,317
|
|
15,472
|
|
Property, plant and equipment,
net
|
160,863
|
|
157,437
|
|
Capitalized software,
net
|
13,981
|
|
12,560
|
|
Patents, net
|
12,450
|
|
1,556
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
150,308
|
|
122,680
|
|
Purchased intangibles,
net
|
120,270
|
|
108,015
|
|
License, manufacturing access
fees and other assets, net
|
60,175
|
|
63,266
|
|
Total assets
|
$1,167,797
|
|
$1,128,185
|
|
|
|
|
|
|
Liabilities and stockholders'
equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts
payable
|
$ 14,614
|
|
$ 20,455
|
|
Accrued salaries and
employee benefits
|
26,825
|
|
24,775
|
|
Other accrued
expenses
|
13,935
|
|
24,755
|
|
Income tax
payable
|
634
|
|
—
|
|
Short-term
borrowings
|
240,000
|
|
240,127
|
|
Deferred
revenue
|
1,166
|
|
3,527
|
|
Total current
liabilities
|
297,174
|
|
313,639
|
|
|
|
|
|
|
Non-current income tax
payable
|
8,315
|
|
5,958
|
|
Deferred income tax
|
29,775
|
|
23,220
|
|
Deferred revenue, net of current
portion
|
2,500
|
|
1,978
|
|
Other long-term
liabilities
|
6,654
|
|
16,215
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Preferred stock,
$0.0001 par value per share; 20,000,000 shares
authorized, none issued and
outstanding
|
—
|
|
—
|
|
|
|
|
|
|
Common stock,
$0.0001 par value per share;
200,000,000 shares
authorized, 47,966,156 and
49,143,798 shares issued and outstanding
at December 31, 2010 and
December 31, 2009, respectively
|
5
|
|
5
|
|
Additional paid-in
capital
|
195,820
|
|
242,615
|
|
Accumulated other
comprehensive income
|
678
|
|
4,616
|
|
Retained
earnings
|
626,876
|
|
519,939
|
|
Total stockholders'
equity
|
823,379
|
|
767,175
|
|
Total liabilities and
stockholders' equity
|
$1,167,797
|
|
$1,128,185
|
|
|
|
|
|
|
|
Gen-Probe
Incorporated
Consolidated
Statements of Income - GAAP
(In
thousands, except per share data)
(Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Product sales
|
$ 131,093
|
|
$ 135,470
|
|
$
522,709
|
|
$ 483,759
|
|
Collaborative research
revenue
|
3,708
|
|
2,049
|
|
14,518
|
|
7,911
|
|
Royalty and license
revenue
|
1,893
|
|
1,351
|
|
6,100
|
|
6,632
|
|
Total revenues
|
136,694
|
|
138,870
|
|
543,327
|
|
498,302
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of product sales
(excluding acquisition-related intangible amortization)
|
40,104
|
|
44,454
|
|
169,222
|
|
152,393
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
intangible amortization
|
2,231
|
|
1,894
|
|
8,847
|
|
4,144
|
|
Research and
development
|
26,885
|
|
27,428
|
|
111,103
|
|
105,970
|
|
Marketing and
sales
|
15,016
|
|
15,306
|
|
59,492
|
|
53,853
|
|
General and
administrative
|
15,610
|
|
14,925
|
|
56,818
|
|
61,828
|
|
Total operating
expenses
|
99,846
|
|
104,007
|
|
405,482
|
|
378,188
|
|
Income from
operations
|
36,848
|
|
34,863
|
|
137,845
|
|
120,114
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
Investment and interest
income
|
1,401
|
|
1,923
|
|
11,765
|
|
21,603
|
|
Interest
expense
|
(535)
|
|
(392)
|
|
(2,216)
|
|
(1,857)
|
|
Gain on contingent
consideration
|
399
|
|
-
|
|
7,994
|
|
-
|
|
Other income/(expense),
net
|
(95)
|
|
769
|
|
(177)
|
|
(58)
|
|
Total other income,
net
|
1,170
|
|
2,300
|
|
17,366
|
|
19,688
|
|
Income before income
tax
|
38,018
|
|
37,163
|
|
155,211
|
|
139,802
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
10,780
|
|
13,138
|
|
48,274
|
|
48,019
|
|
Net income
|
$
27,238
|
|
$
24,025
|
|
$
106,937
|
|
$ 91,783
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.57
|
|
$
0.49
|
|
$
2.20
|
|
$
1.82
|
|
Diluted
|
$
0.56
|
|
$
0.48
|
|
$
2.18
|
|
$
1.79
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
47,827
|
|
48,923
|
|
48,560
|
|
50,356
|
|
Diluted
|
48,455
|
|
49,458
|
|
49,033
|
|
50,965
|
|
|
|
|
|
|
|
|
|
|
|
Gen-Probe
Incorporated
Consolidated
Statements of Income – Non-GAAP Reconciliations
(In
thousands, except per share data)
(Unaudited)
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December 31,
2010
|
|
December 31,
2009
|
|
|
Non-GAAP
|
Adjustments
|
GAAP
|
|
Non-GAAP
|
Adjustments
|
GAAP
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Product sales
|
$ 131,093
|
$
-
|
$ 131,093
|
|
$ 135,470
|
$
-
|
$ 135,470
|
|
Collaborative research
revenue
|
3,708
|
-
|
3,708
|
|
2,049
|
-
|
2,049
|
|
Royalty and license
revenue
|
1,893
|
-
|
1,893
|
|
1,351
|
-
|
1,351
|
|
Total revenues
|
136,694
|
-
|
136,694
|
|
138,870
|
-
|
138,870
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Cost of product sales
(excluding acquisition-related intangible amortization)
|
40,013
|
91
|
40,104
|
|
44,361
|
93
|
44,454
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
intangible amortization
|
-
|
2,231
|
2,231
|
|
-
|
1,894
|
1,894
|
|
Research and
development
|
26,885
|
-
|
26,885
|
|
27,428
|
-
|
27,428
|
|
Marketing and
sales
|
15,016
|
-
|
15,016
|
|
15,209
|
97
|
15,306
|
|
General and
administrative
|
14,670
|
940
|
15,610
|
|
14,479
|
446
|
14,925
|
|
Total operating
expenses
|
96,584
|
3,262
|
99,846
|
|
101,477
|
2,530
|
104,007
|
|
Income from
operations
|
40,110
|
(3,262)
|
36,848
|
|
37,393
|
(2,530)
|
34,863
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
Investment and interest
income
|
1,401
|
-
|
1,401
|
|
1,923
|
-
|
1,923
|
|
Interest
expense
|
(535)
|
-
|
(535)
|
|
(392)
|
-
|
(392)
|
|
Gain on contingent
consideration
|
-
|
399
|
399
|
|
-
|
-
|
-
|
|
Other income/(expense),
net
|
(95)
|
-
|
(95)
|
|
769
|
-
|
769
|
|
Total other income,
net
|
771
|
399
|
1,170
|
|
2,300
|
-
|
2,300
|
|
Income before income
tax
|
40,881
|
(2,863)
|
38,018
|
|
39,693
|
(2,530)
|
37,163
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
11,437
|
(657)
|
10,780
|
|
13,890
|
(752)
|
13,138
|
|
Net income
|
$
29,444
|
$
(2,206)
|
$
27,238
|
|
$
25,803
|
$
(1,778)
|
$
24,025
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.61
|
$
(0.04)
|
$
0.57
|
|
$
0.53
|
$
(0.04)
|
$
0.49
|
|
Diluted
|
$
0.61
|
$
(0.05)
|
$
0.56
|
|
$
0.52
|
$
(0.04)
|
$
0.48
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
47,827
|
|
47,827
|
|
48,923
|
|
48,923
|
|
Diluted
|
48,455
|
|
48,455
|
|
49,458
|
|
49,458
|
|
|
|
|
|
|
|
|
|
|
|
Gen-Probe
Incorporated
Consolidated
Statements of Income – Non-GAAP
Reconciliations
(In
thousands, except per share data)
(Unaudited)
|
|
|
Twelve
Months Ended
|
|
Twelve
Months Ended
|
|
|
December 31,
2010
|
|
December 31,
2009
|
|
|
Non-GAAP
|
Adjustments
|
GAAP
|
|
Non-GAAP
|
Adjustments
|
GAAP
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Product sales
|
$ 522,709
|
$
-
|
$ 522,709
|
|
$ 483,759
|
$
-
|
$ 483,759
|
|
Collaborative research
revenue
|
14,518
|
-
|
14,518
|
|
7,911
|
-
|
7,911
|
|
Royalty and license
revenue
|
6,100
|
-
|
6,100
|
|
6,632
|
-
|
6,632
|
|
Total revenues
|
543,327
|
-
|
543,327
|
|
498,302
|
-
|
498,302
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Cost of product sales
(excluding acquisition-related intangible amortization)
|
168,860
|
362
|
169,222
|
|
152,118
|
275
|
152,393
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
intangible amortization
|
-
|
8,847
|
8,847
|
|
-
|
4,144
|
4,144
|
|
Research and
development
|
111,103
|
-
|
111,103
|
|
105,970
|
-
|
105,970
|
|
Marketing and
sales
|
59,492
|
-
|
59,492
|
|
53,756
|
97
|
53,853
|
|
General and
administrative
|
54,491
|
2,327
|
56,818
|
|
55,497
|
6,331
|
61,828
|
|
Total operating
expenses
|
393,946
|
11,536
|
405,482
|
|
367,341
|
10,847
|
378,188
|
|
Income from
operations
|
149,381
|
(11,536)
|
137,845
|
|
130,961
|
(10,847)
|
120,114
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
Investment and interest
income
|
11,765
|
-
|
11,765
|
|
21,603
|
-
|
21,603
|
|
Interest
expense
|
(2,216)
|
-
|
(2,216)
|
|
(1,857)
|
-
|
(1,857)
|
|
Gain on contingent
consideration
|
-
|
7,994
|
7,994
|
|
-
|
-
|
-
|
|
Other income/(expense),
net
|
(177)
|
-
|
(177)
|
|
(58)
|
-
|
(58)
|
|
Total other income,
net
|
9,372
|
7,994
|
17,366
|
|
19,688
|
-
|
19,688
|
|
Income before income
tax
|
158,753
|
(3,542)
|
155,211
|
|
150,649
|
(10,847)
|
139,802
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
51,303
|
(3,029)
|
48,274
|
|
50,825
|
(2,806)
|
48,019
|
|
Net income
|
$ 107,450
|
$
(513)
|
$ 106,937
|
|
$
99,824
|
$
(8,041)
|
$
91,783
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
Basic
|
$
2.21
|
$
(0.01)
|
$
2.20
|
|
$
1.98
|
$
(0.16)
|
$
1.82
|
|
Diluted
|
$
2.19
|
$
(0.01)
|
$
2.18
|
|
$
1.95
|
$
(0.16)
|
$
1.79
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
48,560
|
|
48,560
|
|
50,356
|
|
50,356
|
|
Diluted
|
49,033
|
|
49,033
|
|
50,965
|
|
50,965
|
|
|
|
|
|
|
|
|
|
|
|
Gen-Probe
Incorporated
Consolidated
Statements of Cash Flows - GAAP
(In
thousands)
(Unaudited)
|
|
|
Twelve
Months Ended
|
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
Operating
activities:
|
|
|
|
|
Net income
|
$ 106,937
|
|
$ 91,783
|
|
Adjustments to reconcile
net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
44,529
|
|
40,382
|
|
Amortization of premiums
on investments, net of accretion of discounts
|
9,573
|
|
5,868
|
|
Stock-based
compensation
|
24,075
|
|
23,420
|
|
Excess tax benefit from
employee stock-based compensation
|
(3,692)
|
|
(2,005)
|
|
Deferred
revenue
|
(1,808)
|
|
812
|
|
Deferred income
tax
|
(3,745)
|
|
(5,786)
|
|
Gain on contingent
consideration
|
(7,994)
|
|
-
|
|
Gain on sale of food
safety business
|
-
|
|
(291)
|
|
Loss on disposal of
property and equipment
|
1,065
|
|
221
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Trade and other accounts
receivable
|
2,649
|
|
(11,303)
|
|
Inventories
|
(1,154)
|
|
2,315
|
|
Prepaid
expenses
|
3,055
|
|
1,218
|
|
Other current
assets
|
(360)
|
|
1,912
|
|
Other long-term
assets
|
(559)
|
|
(4,123)
|
|
Accounts
payable
|
(6,265)
|
|
3,500
|
|
Accrued salaries and
employee benefits
|
(133)
|
|
(676)
|
|
Other accrued
expenses
|
(4,417)
|
|
(806)
|
|
Income tax
payable
|
7,688
|
|
(2,371)
|
|
Other long-term
liabilities
|
122
|
|
961
|
|
Net cash provided by operating
activities
|
169,566
|
|
145,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Proceeds from sales and
maturities of marketable securities
|
427,821
|
|
438,601
|
|
Purchases of marketable
securities
|
(401,434)
|
|
(419,019)
|
|
Proceeds from sale of property,
plant and equipment
|
82
|
|
-
|
|
Purchases of property, plant and
equipment
|
(30,716)
|
|
(32,364)
|
|
Purchase of capitalized
software
|
(3,891)
|
|
(1,290)
|
|
Purchases of intangible
assets, including licenses and manufacturing access fees
|
(2,513)
|
|
(7,341)
|
|
Net cash paid for business
combinations
|
(53,000)
|
|
(183,725)
|
|
Proceeds from sale of food
safety business
|
-
|
|
6,357
|
|
Cash paid for investment in
Pacific Biosciences
|
(50,000)
|
|
-
|
|
Other
|
(820)
|
|
403
|
|
Net cash used in investing
activities
|
(114,471)
|
|
(198,378)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
Repurchase and retirement
of common stock
|
(99,935)
|
|
(174,847)
|
|
Proceeds from issuance of
common stock and employee stock purchase plan
|
31,830
|
|
10,923
|
|
Payment of contingent
consideration
|
(10,000)
|
|
-
|
|
Repurchase and retirement
of restricted stock for payment of taxes
|
(1,257)
|
|
(1,716)
|
|
Excess tax benefit from
employee stock-based compensation
|
3,692
|
|
2,005
|
|
Borrowings, net
|
(228)
|
|
238,450
|
|
Net cash (used in)
provided by financing activities
|
(75,898)
|
|
74,815
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
(2,123)
|
|
1,026
|
|
Net increase in cash and
cash equivalents
|
(22,926)
|
|
22,494
|
|
Cash and cash equivalents
at the beginning of period
|
82,616
|
|
60,122
|
|
Cash and cash equivalents
at the end of period
|
$ 59,690
|
|
$ 82,616
|
|
|
|
|
|
|
|
|
|
|
Contact:
|
|
|
|
Michael Watts
|
|
Vice president, investor
relations and
corporate
communications
|
|
858-410-8673
|
|
|
SOURCE Gen-Probe Incorporated