Fourth Quarter 2020 Highlights:
- Product revenue increased 19.2% to $295.1 million, or 18.1% on
a constant currency basis;
- GAAP net income per diluted share was $1.21; and
- Non-GAAP net income per diluted share was $0.98.
Full-Year 2020 Highlights:
- Product revenue increased 22.1% to $1,143.7 million, or 22.1%
on a constant currency basis;
- GAAP net income per diluted share was $4.14; and
- Non-GAAP net income per diluted share was $3.60.
Masimo (Nasdaq: MASI) today announced its financial results for
the fourth quarter and full-year ended January 2, 2021.
Fourth Quarter 2020 Results:
Total revenue for the fourth quarter of 2020, including royalty
and other revenue, increased 19.2% to $295.1 million, compared to
$247.5 million in the fourth quarter of 2019. Product revenue
increased 19.2% to $295.1 million, or 18.1% on a constant currency
basis, compared to $247.4 million in the fourth quarter of 2019.
Excluding handheld and fingertip pulse oximeters, shipments of
noninvasive technology boards and instruments increased 35.2% to
83,000 in the fourth quarter of 2020, compared to 61,400 in the
fourth quarter of 2019.
For the fourth quarter 2020, GAAP operating margin was 22.0%,
compared to 24.9% in the fourth quarter of 2019. Fourth quarter
2020 non-GAAP operating margin was 23.1%, compared to 25.7% in the
fourth quarter of 2019.
For the fourth quarter 2020, GAAP net income was $70.7 million,
or $1.21 per diluted share, compared to GAAP net income of $52.9
million or $0.92 per diluted share, in the fourth quarter 2019.
Fourth quarter 2020 non-GAAP net income was $57.3 million, or $0.98
per diluted share, compared to net income of $52.1 million or $0.91
per diluted share, in the fourth quarter 2019.
Full-Year 2020 Results:
Total revenue for the full-year of 2020, including royalty and
other revenue, increased 22.0% to $1,143.7 million, compared to
$937.8 million for the full-year 2019. Product revenue increased
22.1% on a reported and constant currency basis to $1,143.7
million, compared to $936.4 million for the full-year 2019.
Excluding handheld and fingertip pulse oximeters, shipments of
noninvasive technology boards and instruments increased 91.8% to
472,300 for the full-year 2020, compared to 246,200 for the
full-year 2019.
For the full-year of 2020, GAAP operating margin was 22.4%,
compared to 23.6% in the prior year period. Full-year 2020 non-GAAP
operating margin was 23.1%, compared to 24.0% in the prior year
period.
For the full-year of 2020, GAAP net income was $240.3 million,
or $4.14 per diluted share compared to net income of $196.2
million, or $3.44 per diluted share in 2019. Non-GAAP net income
was $209.2 million or $3.60 per diluted share compared to net
income of $183.9 million, or $3.22 per diluted share in 2019.
Joe Kiani, Chairman and Chief Executive Officer of Masimo, said
“Throughout 2020, as our customers on the front lines responded to
this crisis and rose to the challenge, so did our team. We have
invested heavily in innovation and product supply efforts to
deliver clinically relevant solutions that improve patient outcomes
and reduce the cost of care. As we enter a new year, I am confident
that Masimo will continue its leadership in delivering innovative
solutions to clinicians and patients around the world.”
2021 Financial Guidance The Company provided the
following estimates for its full-year 2021 guidance:
2021 Guidance(1)
(in millions, except percentages and
earnings per share)
GAAP
Non-GAAP
Total revenue
$
1,200.0
$
1,200.0
Product revenue
$
1,200.0
$
1,200.0
Percentage growth - as reported
4.9
%
N/A
Percentage growth - constant currency
N/A
3.6
%
Gross margin
66.8
%
67.0
%
Operating margin
23.5
%
24.5
%
Diluted earnings per share
$
3.81
$
3.80
Estimated tax rate
20.7
%
24.1
%
______________
(1)
Consistent with prior guidance provided on
January 13, 2021.
- Product revenue increasing to $1.200 billion, which reflects
reported growth of 4.9% and constant currency growth of 3.6%;
- GAAP diluted earnings per share increasing to $3.81;
- Non-GAAP diluted earnings per share increasing to $3.80;
and
- Included in our full-year 2021 revenue guidance is
approximately $15.0 million of year-over-year currency tailwinds.
Supplementary Non-GAAP Financial Information
For additional non-GAAP financial details, please visit the
Investor Relations section of the Company’s website at www.masimo.com to access Supplementary Financial
Information.
Non-GAAP Financial Measures
The non-GAAP financial measures contained herein are a
supplement to the corresponding financial measures prepared in
accordance with U.S. GAAP. The non-GAAP financial measures
presented exclude the items described below. Management believes
that adjustments for these items assist investors in making
comparisons of period-to-period operating results. Furthermore,
management also believes that these items are not indicative of the
Company’s on-going core operating performance. These non-GAAP
financial measures have certain limitations in that they do not
reflect all of the costs associated with the operations of the
Company’s business as determined in accordance with GAAP.
Therefore, investors should consider non-GAAP financial measures
in addition to, and not as a substitute for, or as superior to,
measures of financial performance prepared in accordance with GAAP.
The non-GAAP financial measures presented by the Company may be
different from the non-GAAP financial measures used by other
companies.
The Company has presented the following non-GAAP measures to
assist investors in understanding the Company’s core net operating
results on an on-going basis: (i) constant currency product revenue
growth %, (ii) non-GAAP net income, (iii) non-GAAP (net income)
earnings per diluted share and (iv) non-GAAP operating
income/margin. These non-GAAP financial measures may also assist
investors in making comparisons of the Company’s core operating
results with those of other companies. Management believes constant
currency product revenue growth, non-GAAP operating income/margin,
non-GAAP net income and non-GAAP earnings per diluted share are
important measures in the evaluation of the Company’s performance
and uses these measures to better understand and evaluate our
business.
The non-GAAP financial measures reflect adjustments for the
following items, as well as the related income tax effects
thereof:
Constant currency adjustments.
Some of our sales agreements with foreign customers provide for
payment in currencies other than the U.S. Dollar. These foreign
currency revenues, when converted into U.S. Dollars, can vary
significantly from period to period depending on the average and
quarter-end exchange rates during a respective period. We believe
that comparing these foreign currency denominated revenues by
holding the exchange rates constant with the prior year period is
useful to management and investors in evaluating our product
revenue growth rates on a period-to-period basis. We anticipate
that fluctuations in foreign exchange rates and the related
constant currency adjustments for calculation of our product
revenue growth rate will continue to occur in future periods.
Royalty and other revenue, net of related
costs.
We derive royalty and other revenue, net of related costs, from
certain non-recurring contractual arrangements that we do not
expect to continue in the future. We believe the exclusion of
royalty and other revenue, net of related costs, associated with
these non-recurring revenue streams is useful to management and
investors in evaluating the performance of our ongoing operations
on a period-to-period basis.
Acquisition/Strategic investment-related
costs, including depreciation and amortization.
In the event the Company acquires, invests in or divests certain
business operations, there may be non-recurring gains, losses or
expenses that will be recognized related to the assets and/or
liabilities sold or acquired that are not representative of normal
on-going cash flows. Furthermore, there may be depreciation and
amortization related to the revaluation of assets and liabilities
(primarily intangible assets, property, plant and equipment
adjustments, inventory revaluation, lease liabilities, etc.) to
fair value through purchase accounting related to value created by
the seller prior to the acquisition/strategic investment that does
not reflect the normal on-going costs of operating our core
business. We believe that exclusion of these gains, losses or costs
in presenting non-GAAP financial measures provides management and
investors a more effective means of evaluating historical
performance and projected costs and the potential for realizing
cost efficiencies within our core business. Depreciation and
amortization related to the revaluation of acquisition related
assets and liabilities will generally recur in future periods.
Litigation damages, awards and
settlements.
In connection with litigation proceedings arising in the course
of our business, we have recorded expenses as a defendant in such
proceedings in the form of damages, as well as gains as a plaintiff
in such proceedings in the form of litigation awards and settlement
proceeds. Litigation matters can vary in their characteristics,
frequency and significance to our operating results. We believe
that exclusion of these gains (net of any related costs incurred in
the period the award or settlement is recognized) and losses is
useful to management and investors in evaluating the performance of
our ongoing operations on a period-to-period basis. In this regard,
we note that these expenses and gains are generally unrelated to
our core business and/or are infrequent in nature.
Realized and unrealized gains or losses
from foreign currency transactions.
We are exposed to foreign currency gains or losses on
outstanding foreign currency denominated receivables and payables
related to certain customer sales agreements, product costs and
other operating expenses. As the Company does not actively hedge
these currency exposures, changes in the underlying currency rates
relative to the U.S. Dollar may result in realized and unrealized
foreign currency gains and losses between the time these
receivables and payables arise and the time that they are settled
in cash. Since such realized and unrealized foreign currency gains
and losses are the result of macro-economic factors and can vary
significantly from one period to the next, we believe that
exclusion of such realized and unrealized gains and losses are
useful to management and investors in evaluating the performance of
our ongoing operations on a period-to-period basis. Realized and
unrealized foreign currency gains and losses are likely to recur in
future periods.
Excess tax benefits from stock-based
compensation.
Current authoritative accounting guidance requires that excess
tax benefits or costs recognized on stock-based compensation
expense be reflected in our provision for income taxes rather than
paid-in capital. Since we cannot control or predict when stock
option awards will be exercised or the price at which such awards
will be exercised, the impact of such guidance can create
significant volatility in our effective tax rate from one period to
the next. We believe that exclusion of these excess tax benefits or
costs is useful to management and investors in evaluating the
performance of our ongoing operations on a period-to-period basis.
These excess tax benefits or costs will generally recur in future
periods as long as we continue to issue equity awards to our
employees.
Fourth Quarter and Full-Year 2020
Actuals versus Fourth Quarter and Full-Year 2019
Actuals:
RECONCILIATION OF GAAP TO NON-GAAP CONSTANT CURRENCY
PRODUCT REVENUE(1):
Quarter Ended
(in thousands, except
percentages)
January 2, 2021
December 28,
2019
GAAP product revenue
$
295,054
$
247,434
Non-GAAP constant currency
adjustments:
Constant currency F/X adjustments
(2,917
)
—
Total non-GAAP constant currency
adjustments
(2,917
)
—
Non-GAAP constant currency product
revenue
$
292,137
$
247,434
Product revenue growth %
GAAP
19.2
%
Non-GAAP constant currency
18.1
%
__________________
(1)
May not foot due to rounding.
RECONCILIATION OF GAAP TO NON-GAAP CONSTANT CURRENCY
PRODUCT REVENUE(1):
Year Ended
(in thousands, except percentages)
January 2, 2021
December 28,
2019
GAAP product revenue
$
1,143,744
$
936,408
Non-GAAP constant currency
adjustments:
Constant currency F/X adjustments
(491
)
—
Total non-GAAP constant currency
adjustments
(491
)
—
Non-GAAP constant currency product
revenue
$
1,143,253
$
936,408
Product revenue growth %
GAAP
22.1
%
Non-GAAP constant currency
22.1
%
__________________
(1)
May not foot due to rounding.
RECONCILIATION OF GAAP TO
NON-GAAP NET INCOME AND NET INCOME PER DILUTED SHARE(1):
Quarter Ended
January 2, 2021
December 28,
2019
(in thousands, except per share
amounts)
$
Per Diluted Share
$
Per Diluted Share
GAAP net income
$
70,669
$
1.21
$
52,921
$
0.92
Non-GAAP adjustments:
Royalty and other revenue, net of related
costs
—
—
(45
)
—
Acquisition/strategic investment related
costs
3,249
0.06
2,135
0.04
Non-operating other (income) expense
(1,384
)
(0.02
)
312
0.01
Tax impact of pre-tax non-GAAP adjustments
above
(5,214
)
(0.09
)
(566
)
(0.01
)
Excess tax benefits from stock-based
compensation
(10,001
)
(0.17
)
(2,631
)
(0.05
)
Total non-GAAP adjustments
(13,350
)
(0.23
)
(796
)
(0.01
)
Non-GAAP net income
$
57,318
$
0.98
$
52,126
$
0.91
Weighted average shares outstanding -
diluted
58,237
57,267
__________________
(1)
May not foot due to rounding.
RECONCILIATION OF GAAP TO
NON-GAAP NET INCOME AND NET INCOME PER DILUTED SHARE(1):
Year Ended
January 2, 2021
December 28,
2019
(in thousands, except per share
amounts)
$
Per Diluted Share
$
Per Diluted Share
GAAP net income
$
240,302
$
4.14
$
196,216
$
3.44
Non-GAAP adjustments:
Royalty and other revenue, net of related
costs
—
—
(1,262
)
(0.02
)
Acquisition/strategic investment related
costs
8,286
0.14
4,729
0.08
Litigation damages, awards and
settlements
(474
)
(0.01
)
—
—
Non-operating other (income) expense
(2,631
)
(0.05
)
627
0.01
Tax impact of pre-tax non-GAAP adjustments
above
(6,096
)
(0.11
)
(689
)
(0.01
)
Excess tax benefits from stock-based
compensation
(30,172
)
(0.52
)
(15,692
)
(0.27
)
Total non-GAAP adjustments
(31,086
)
(0.54
)
(12,286
)
(0.22
)
Non-GAAP net income
$
209,216
$
3.60
$
183,930
$
3.22
Weighted average shares outstanding -
diluted
58,037
57,100
__________________
(1)
May not foot due to rounding.
RECONCILIATION OF GAAP TO
NON-GAAP OPERATING MARGIN(1):
Quarter Ended
January 2, 2021
December 28,
2019
(in thousands, except
percentages)
$
$
GAAP operating income/margin
$
64,895
$
61,557
Non-GAAP adjustments:
Royalty and other revenue, net of related
costs
—
(45
)
Acquisition/strategic investment related
costs
3,249
2,135
Total non-GAAP adjustments
3,249
2,090
Non-GAAP operating income/margin
$
68,145
$
63,647
GAAP operating income/margin %
22.0
%
24.9
%
Non-GAAP operating income/margin %
23.1
%
25.7
%
__________________
(1)
May not foot due to rounding.
RECONCILIATION OF GAAP TO
NON-GAAP OPERATING MARGIN(1):
Year Ended
January 2, 2021
December 28,
2019
(in thousands, except
percentages)
$
$
GAAP operating income/margin
$
255,823
$
221,216
Non-GAAP adjustments:
Royalty and other revenue, net of related
costs
—
(1,262
)
Acquisition/strategic investment related
costs
8,286
4,729
Litigation damages, awards and
settlements
(474
)
—
Total non-GAAP adjustments
7,812
3,467
Non-GAAP operating income/margin
$
263,636
$
224,683
GAAP operating income/margin %
22.4
%
23.6
%
Non-GAAP operating income/margin %
23.1
%
24.0
%
__________________
(1)
May not foot due to rounding.
Full-Year 2021 Guidance versus
Full-Year 2020 Actuals:
RECONCILIATION OF GAAP PRODUCT
REVENUE GROWTH % TO CONSTANT CURRENCY PRODUCT REVENUE GROWTH
%(1):
(in thousands, except
percentages)
Full-Year 2021
Guidance(2)
Full-Year 2020
Actuals
GAAP product revenue
$
1,200,000
$
1,143,744
Non-GAAP constant currency
adjustments:
Constant currency F/X adjustments
(15,000
)
—
Total non-GAAP constant currency
adjustments
(15,000
)
—
Non-GAAP constant currency product
revenue
$
1,185,000
$
1,143,744
Product revenue growth %:
GAAP
4.9
%
Non-GAAP constant currency
3.6
%
__________________
(1)
May not foot due to rounding.
(2)
Consistent with prior guidance provided on
January 13, 2021.
RECONCILIATION OF GAAP TO
NON-GAAP NET INCOME AND NET INCOME PER DILUTED SHARE(1):
Full-Year 2021
Guidance(2)
Full-Year 2020
Actuals
(in thousands, except per share
amounts)
$
Per Diluted Share
$
Per Diluted Share
GAAP net income
$
223,600
$
3.81
$
240,302
$
4.14
Non-GAAP adjustments:
Acquisition/strategic investment related
costs
12,000
0.20
8,286
0.14
Litigation damages, awards and
settlements
—
—
(474
)
(0.01
)
Non-operating other (income) expense
—
—
(2,631
)
(0.05
)
Tax impact of pre-tax non-GAAP adjustments
above
(2,500
)
(0.04
)
(6,096
)
(0.11
)
Excess tax benefits from stock-based
compensation
(10,000
)
(0.17
)
(30,172
)
(0.52
)
Total non-GAAP adjustments
(500
)
(0.01
)
(31,086
)
(0.54
)
Non-GAAP product net income
$
223,100
$
3.80
$
209,216
$
3.60
Weighted average shares outstanding -
diluted
58,700
58,037
__________________
(1)
May not foot due to rounding.
(2)
Consistent with prior guidance provided on
January 13, 2021.
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND
OPERATING MARGIN(1):
Full-Year 2021
Guidance(2)
Full-Year 2020
Actuals
(in thousands, except
percentages)
$
$
GAAP gross margin
$
801,300
$
743,065
Non-GAAP adjustments:
Acquisition/strategic investment-related
costs
2,500
1,807
Total non-GAAP adjustments
2,500
1,807
Non-GAAP gross margin
$
803,800
$
744,872
GAAP gross margin %
66.8
%
65.0
%
Non-GAAP gross margin %
67.0
%
65.1
%
GAAP operating income/margin
$
281,900
$
255,823
Non-GAAP adjustments:
Acquisition/strategic investment-related
costs
12,000
8,286
Litigation damages, awards and
settlements
—
(474
)
Total non-GAAP adjustments
12,000
7,812
Non-GAAP operating income/margin
$
293,900
$
263,636
GAAP operating income/margin %
23.5
%
22.4
%
Non-GAAP operating income/margin %
24.5
%
23.1
%
__________________
(1)
May not foot due to rounding.
(2)
Consistent with prior guidance provided on
January 13, 2021.
Conference Call:
The conference call to review Masimo’s complete financial
results for the fourth quarter and full-year ended January 2, 2021
will begin at 1:30 p.m. PT (4:30 p.m. ET) on February 23, 2021 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.
To register for the conference call and receive the dial-in
number, please use the link below. Upon registering, each
participant will be provided with call details and a registrant ID
number.
Conference Call Registration Link:
http://www.directeventreg.com/registration/event/3927609
A replay of the webcast and conference call will be available
shortly after the conclusion of the call and will be archived on
the Company’s website.
About Masimo
Masimo (Nasdaq: MASI) is a global medical technology company
that develops and produces a wide array of industry-leading
monitoring technologies, including innovative measurements,
sensors, patient monitors, and automation and connectivity
solutions. Our mission is to improve patient outcomes and reduce
the cost of care. Masimo SET® Measure-through Motion and Low
Perfusion™ pulse oximetry, introduced in 1995, has been shown in
over 100 independent and objective studies to outperform other
pulse oximetry technologies. 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 listed in the 2019-20 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 Iris®
platform, and include Iris Gateway™, Patient SafetyNet, Replica™,
Halo ION™, UniView™, 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/.
Forward-Looking Statements
All statements other than statements of historical facts
included in this press release that address activities, events or
developments that we expect, believe or anticipate will or may
occur in the future are forward-looking statements including, in
particular, the statements about our expectations for full year
2021 financial guidance; including with respect to product revenue,
product revenue growth and constant currency revenue growth, GAAP
diluted earnings per share, Non-GAAP diluted earnings per share and
year-over-year currency tailwinds; our long-term outlook; our
ability to continue in its 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 ; our
dependence on Masimo SET® and Masimo rainbow SET™ products and
technologies for substantially all of our revenue; any failure in
protecting our intellectual property exposure to competitors’
assertions of intellectual property claims; the highly competitive
nature of the markets in which we sell our products and
technologies; any failure to continue developing innovative
products and technologies; the lack of acceptance of any of our
current or future products and technologies; obtaining regulatory
approval of our current and future products and technologies; the
risk that the implementation of our international realignment will
not continue to produce anticipated operational and financial
benefits, including a continued lower effective tax rate; the loss
of our customers; the failure to retain and recruit senior
management; product liability claims exposure; a failure to obtain
expected returns from the amount of intangible assets we have
recorded; the maintenance of our brand; the amount and type of
equity awards that we may grant to employees and service providers
in the future; our ongoing litigation and related matters; risks
related to global economic and marketplace uncertainties related to
the impact of the COVID-19 pandemic; and other factors discussed in
the “Risk Factors” section of our most recent periodic reports
filed with the Securities and Exchange Commission (“SEC”),
including our most recent Form 10-K and Form 10-Q, all of which you
may obtain for free on the SEC’s website at www.sec.gov. Although
we believe that the expectations reflected in our forward-looking
statements are reasonable, we do not know whether our expectations
will prove correct. You are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date hereof, even if subsequently made available by us on our
website or otherwise. We do not undertake any obligation to update,
amend or clarify these forward-looking statements, whether as a
result of new information, future events or otherwise, except as
may be required under applicable securities laws.
Masimo, SET, Signal Extraction Technology, Improving Patient
Outcome and Reducing Cost of Care... by Taking Noninvasive
Monitoring to New Sites and Applications, rainbow, SpHb, SpOC,
SpCO, SpMet, PVI and ORI are trademarks or registered trademarks of
Masimo Corporation.
MASIMO CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited, in
thousands)
January 2, 2021
December 28,
2019
ASSETS
Current assets
Cash and cash equivalents
$
641,447
$
567,687
Short-term investments
—
120,000
Accounts receivable, net of allowance for
doubtful accounts
141,350
132,433
Inventories
215,952
115,871
Other current assets
102,416
60,071
Total current assets
1,101,165
996,062
Lease receivable, noncurrent
57,666
49,936
Deferred costs and other contract
assets
20,076
16,214
Property and equipment, net
272,511
219,552
Intangible assets, net
73,923
27,251
Goodwill
103,206
22,350
Deferred tax assets
39,363
35,972
Other non-current assets
44,642
28,791
Total assets
$
1,712,552
$
1,396,128
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$
64,061
$
54,548
Accrued compensation
71,601
54,705
Deferred revenue and other
contract-related liabilities, current
44,935
25,939
Other current liabilities
53,239
37,027
Total current liabilities
233,836
172,219
Other non-current liabilities
71,076
56,035
Total liabilities
304,912
228,254
Commitments and contingencies
Masimo Corporation Stockholders’
equity
Common stock
55
54
Treasury stock
(638,736
)
(526,580
)
Additional paid-in capital
703,693
600,624
Accumulated other comprehensive income
(loss)
1,413
(6,718
)
Retained earnings
1,341,235
1,100,494
Total Masimo Corporation stockholders’
equity
1,407,640
1,167,874
Noncontrolling interest
$
(20
)
$
—
Total equity
$
1,407,640
$
1,167,874
Total liabilities and equity
$
1,712,552
$
1,396,128
MASIMO CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited, in thousands,
except per share amounts)
Three Months Ended
Twelve Months Ended
January 2, 2021
December 28,
2019
January 2, 2021
December 28,
2019
Revenue:
Product
$
295,054
$
247,434
$
1,143,744
$
936,408
Royalty and other revenue
—
76
—
1,429
Total revenue
295,054
247,510
1,143,744
937,837
Cost of goods sold
108,128
80,587
400,679
308,665
Gross profit
186,926
166,923
743,065
629,172
Operating expenses:
Selling, general and administrative
90,343
81,943
369,057
314,661
Research and development
31,688
23,423
118,659
93,295
Litigation awards, settlements/or defense
costs
—
—
(474
)
—
Total operating expenses
122,031
105,366
487,242
407,956
Operating income
64,895
61,557
255,823
221,216
Non-operating income
1,805
2,812
7,913
12,950
Income before provision for income
taxes
66,700
64,369
263,736
234,166
Provision for income taxes
(3,949
)
11,448
23,454
37,950
Net income including noncontrolling
interest
70,649
52,921
240,282
196,216
Net loss attributable to noncontrolling
interest
20
—
20
—
Net income attributable to Masimo
Corporation stockholders
$
70,669
$
52,921
$
240,302
$
196,216
Other comprehensive income, net of
tax:
Foreign currency translation gains
(losses)
6,627
1,076
8,131
(519
)
Comprehensive income attributable to
Masimo Corporation stockholders
$
77,296
$
53,997
$
248,433
$
195,697
Net income per share attributable to
Masimo Corporation stockholders:
Basic
$
1.28
$
0.99
$
4.39
$
3.67
Diluted
$
1.21
$
0.92
$
4.14
$
3.44
Weighted-average shares used in per share
calculations:
Basic
55,138
53,633
54,700
53,434
Diluted
58,237
57,267
58,037
57,100
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
Twelve Months Ended
January 2, 2021
December 28,
2019
January 2, 2021
December 28,
2019
Cost of goods sold
$
216
$
106
$
714
$
445
Selling, general and administrative
4,019
7,417
31,462
30,450
Research and development
1,618
2,067
10,049
8,340
Total
$
5,853
$
9,590
$
42,225
$
39,235
MASIMO CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited, in
thousands)
Twelve Months Ended
January 2, 2021
December 28,
2019
Cash flows from operating
activities:
Net income including noncontrolling
interest
$
240,282
$
196,216
Adjustments to reconcile net income
including noncontrolling interest to net cash provided by operating
activities:
Depreciation and amortization
29,300
23,487
Stock-based compensation
42,225
39,233
Loss on disposal of equipment, intangibles
and other assets
554
357
Benefit (provision) for doubtful
accounts
82
687
(Benefit) from deferred income taxes
(4,964
)
(5,965
)
Changes in operating assets and
liabilities:
(Increase) in trade accounts
receivable
(2,229
)
(23,580
)
(Increase) in inventories
(94,434
)
(21,257
)
(Increase) in other current assets
(29,984
)
(8,536
)
(Increase) in lease receivable, net
(7,749
)
(11,958
)
(Increase) decrease in deferred costs and
other contract assets
(2,806
)
3,308
(Increase) in other non-current assets
(1,320
)
(226
)
Increase in accounts payable
7,637
9,934
Increase in accrued compensation
15,544
5,338
Increase in deferred revenue and other
contract-related liabilities
10,871
7,739
(Decrease) increase in income taxes
payable
(1,301
)
4,079
Increase in accrued liabilities
9,391
746
(Decrease) increase in other non-current
liabilities
(136
)
2,038
Net cash provided by operating
activities
210,963
221,640
Cash flows from investing
activities:
Maturities of short-term investments
120,000
160,000
Purchases of short-term investments
—
(280,000
)
Purchases of property and equipment,
net
(72,549
)
(68,375
)
Increase in intangible assets
(7,408
)
(4,117
)
Business combinations, net of cash
acquired
(112,706
)
—
Deposit to acquire noncontrolling
interest
(3,374
)
—
Other strategic investing activities
(6,750
)
(5,189
)
Net cash (used in) investing
activities
(82,787
)
(197,681
)
Cash flows from financing
activities:
Proceeds from issuance of common stock
58,424
28,339
Repurchases of common stock
(110,540
)
(37,555
)
Payroll tax withholdings on behalf of
employees for stock options
(2,191
)
(123
)
Net cash (used in) provided by
financing activities
(54,307
)
(9,339
)
Effect of foreign currency exchange rates
on cash
3,060
814
Net increase in cash, cash equivalents and
restricted cash
76,929
15,434
Cash, cash equivalents and restricted cash
at beginning of period
568,075
552,641
Cash, cash equivalents and restricted cash
at end of period
$
645,004
$
568,075
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210223006082/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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