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| 8-K - FORM 8-K FILING DOCUMENT - ICU MEDICAL INC/DE | document.htm |
EXHIBIT 99.1
ICU Medical, Inc. Reports Strong Third Quarter 2010 Results
Sales Increased 40.3% to $75.7 Million
Diluted EPS Increased 54.8% to $0.65
Company Raises 2010 Revenue and Earnings Guidance
SAN CLEMENTE, Calif., Oct. 18, 2010 (GLOBE NEWSWIRE) -- ICU Medical, Inc., (Nasdaq:ICUI), a leading low cost manufacturer of safe medical connectors, custom medical products and critical care devices, announced results for the third quarter and nine months ended September 30, 2010.
Third quarter of 2010 revenue increased 40.3% to $75.7 million, compared to $54.0 million in the same period last year. Net income for the third quarter of 2010 was $9.0 million, or $0.65 per diluted share, as compared to net income of $6.3 million, or $0.42 per diluted share, for the third quarter of 2009.
For the nine months ended September 30, 2010, revenue increased 29.2% to $209.0 million, compared to $161.7 million in the same period last year. Net income for the nine months ended September 30, 2010, was $20.9 million, or $1.51 per diluted share, compared to net income of $19.1 million, or $1.27 per diluted share, for the same period last year.
Scott Lamb, ICU Medical's Chief Financial Officer, said, "We are pleased with our financial performance during the third quarter which included double-digit improvements in revenue and profitability. Our top-line growth was fueled by positive contributions from all of our product lines, led by CLAVEs, custom products and critical care. Domestic distributor and direct sales increased 38% year over year, while international sales were up 29%."
"During the quarter, we successfully completed the transition of the critical care operations that we purchased last year from Hospira. We also launched operations at our new plant in Slovakia and expect to start shipments of products from this new facility during the fourth quarter. We believe that this new facility will greatly improve our time to market for custom products in Europe. Additionally, we continued to make investments in research and development, quality controls and manufacturing efficiencies, which are essential in maintaining our proven track record of customer satisfaction," concluded Mr. Lamb.
The Company ended the third quarter with a strong balance sheet. As of September 30, 2010, cash, cash equivalents and investment securities totaled $81.9 million and working capital was $168.7 million. Additionally, the Company generated operating cash flow of $18.7 million for the first nine months of 2010.
Fiscal Year 2010 Guidance
Based on the current business trends, management has raised the Company's revenue and earnings per share guidance range for the full fiscal year of 2010. Revenue is now expected to be in the range of $277 million to $282 million, up from the previous guidance of $270 million to $275 million. Diluted earnings are now expected to be in the range of $2.00 to $2.07 per share, compared to the previous guidance of $1.85 to $1.92 per share. Operating cash flow is expected to be in the range of $35 million to $40 million.
Conference Call
The Company will be conducting a conference call concerning its third quarter results today at 4:30 p.m. EDT (1:30 p.m. PDT). The call can be accessed at 866-783-2143, passcode 41883861 or by replay at 888-286-8010, passcode 18772156. The conference call will be simultaneously available by webcast, which can be accessed by going to the Company's website at www.icumed.com, clicking on the Investors tab, clicking on the Webcast icon and following the prompts. The webcast will also be available by replay. Certain information provided as part of that call will be provided on the Company's website at www.icumed.com within 48 hours of the call.
About ICU Medical, Inc.
ICU Medical, Inc. (Nasdaq:ICUI) develops, manufactures and sells innovative medical technologies used in vascular therapy, oncology, and critical care applications. ICU Medical's products improve patient outcomes by helping prevent bloodstream infections, protect healthcare workers and patients from exposure to infectious diseases or hazardous drugs and monitor the hemodynamic status of critical care patients. The Company's complete product line includes custom I.V. systems, closed delivery systems for hazardous drugs, needleless I.V. connectors, catheters and cardiac monitoring systems. ICU Medical is headquartered in San Clemente, California. For more information, visit the Company's web site at www.icumed.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as ''will,'' ''expect,'' ''believe,'' ''could,'' ''would,'' ''estimate,'' ''continue,'' ''build,'' ''expand'' or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding the future, including, but not limited to, statements regarding the timing of the commencement of shipments from the new manufacturing plant in Slovakia and the Company's expectations regarding improved time to market for custom products in Europe; the Company's continued investment in research and development, quality controls and manufacturing efficiencies; and the Company's positioning for continued long-term growth and profitability and delivering value to its shareholders. In addition, forward-looking statements also include the statements under the heading ''Fiscal Year 2010 Guidance.'' These forward-looking statements are based on Management's current expectations, estimates, forecasts and projections about the Company and assumptions Management believes are reasonable, all of which are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated in the forward-looking statements. These risks and uncertainties include, but are not limited to, decreased demand for the Company's products, increased competition from competitors, lack of continued growth or improving efficiencies, increased costs for shipping products and unexpected delays or costs associated with the operation of the manufacturing plant in Slovakia. Future results are subject to risks and uncertainties, including the risk factors, and other risks and uncertainties, described in the Company's filings with the Securities and Exchange Commission, which include those in the Annual Report on Form 10-K for the year ended December 31, 2009 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2010. Forward-looking statements contained in this press release are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
| ICU Medical, Inc. and Subsidiaries | ||
| Condensed Consolidated Balance Sheets | ||
| (Amounts in thousands, except per share data) | ||
| September 30, 2010 | December 31, 2009 | |
| (unaudited) | (1) | |
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $ 65,671 | $ 51,248 |
| Investment securities | 16,225 | 56,887 |
| Cash, cash equivalents and investment securities | 81,896 | 108,135 |
| Accounts receivable, net of allowance for doubtful accounts of $522 at September 30, 2010 and $324 at December 31, 2009 | 55,796 | 47,777 |
| Inventories | 43,625 | 41,327 |
| Prepaid income taxes | 2,994 | 1,994 |
| Prepaid expenses and other current assets | 6,748 | 5,462 |
| Deferred income taxes | 4,307 | 3,243 |
| Total current assets | 195,366 | 207,938 |
| PROPERTY AND EQUIPMENT, net | 83,777 | 77,449 |
| PROPERTY HELD FOR SALE | — | 940 |
| GOODWILL | 1,478 | 1,478 |
| INTANGIBLE ASSETS, net | 15,256 | 16,782 |
| DEFERRED INCOME TAXES | 3,690 | 3,710 |
| INCOME TAXES RECEIVABLE | 856 | 856 |
| $ 300,423 | $ 309,153 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $ 12,056 | $ 18,423 |
| Accrued liabilities | 14,191 | 12,884 |
| Deferred revenue | 376 | 2,389 |
| Total current liabilities | 26,623 | 33,696 |
| DEFERRED INCOME TAXES | 7,157 | 5,698 |
| INCOME TAX LIABILITY | 4,366 | 4,754 |
| COMMITMENTS AND CONTINGENCIES | — | — |
| STOCKHOLDERS' EQUITY: | ||
| Convertible preferred stock, $1.00 par value Authorized—500 shares; issued and outstanding— none | — | — |
| Common stock, $0.10 par value — Authorized—80,000 shares; issued 14,855 shares at September 30, 2010 and 14,811 shares at December 31, 2009, outstanding 13,547 shares at September 30, 2010 and 14,239 shares at December 31, 2009 | 1,485 | 1,481 |
| Additional paid-in capital | 57,112 | 54,357 |
| Treasury stock, at cost—1,308 and 572 shares at September 30, 2010 and December 31, 2009 | (45,533) | (19,881) |
| Retained earnings | 248,804 | 227,861 |
| Accumulated other comprehensive income | 409 | 1,187 |
| Total stockholders' equity | 262,277 | 265,005 |
| $ 300,423 | $ 309,153 | |
| (1) December 31, 2009 balances were derived from audited consolidated financial statements. | ||
| ICU Medical, Inc. and Subsidiaries | ||||
| Condensed Consolidated Statements of Income | ||||
| (Amounts in thousands, except per share data) | ||||
| (unaudited) | ||||
| Three months ended September 30, | Nine months ended September 30, | |||
| 2010 | 2009 | 2010 | 2009 | |
| REVENUES: | ||||
| Net sales | $ 75,589 | $ 53,830 | $ 208,511 | $ 161,307 |
| Other | 148 | 135 | 451 | 392 |
| TOTAL REVENUE | 75,737 | 53,965 | 208,962 | 161,699 |
| COST OF GOODS SOLD | 41,705 | 28,916 | 115,876 | 84,295 |
| Gross profit | 34,032 | 25,049 | 93,086 | 77,404 |
| OPERATING EXPENSES: | ||||
| Selling, general and administrative | 18,341 | 16,751 | 57,368 | 48,366 |
| Research and development | 1,067 | 661 | 2,937 | 2,016 |
| Total operating expenses | 19,408 | 17,412 | 60,305 | 50,382 |
| Income from operations | 14,624 | 7,637 | 32,781 | 27,022 |
| OTHER INCOME (EXPENSE) | (215) | 419 | 40 | 1,042 |
| Income before income taxes | 14,409 | 8,056 | 32,821 | 28,064 |
| PROVISION FOR INCOME TAXES | (5,434) | (1,732) | (11,878) | (8,937) |
| NET INCOME | $ 8,975 | $ 6,324 | $ 20,943 | $ 19,127 |
| NET INCOME PER SHARE | ||||
| Basic | $ 0.67 | $ 0.43 | $ 1.54 | $ 1.29 |
| Diluted | $ 0.65 | $ 0.42 | $ 1.51 | $ 1.27 |
| WEIGHTED AVERAGE NUMBER OF SHARES | ||||
| Basic | 13,489 | 14,796 | 13,605 | 14,771 |
| Diluted | 13,752 | 15,146 | 13,838 | 15,033 |
| ICU Medical, Inc. and Subsidiaries | ||
| Condensed Consolidated Statements of Cash Flows | ||
| (Amounts in thousands) | ||
| (unaudited) | ||
| Nine months ended September 30, | ||
| 2010 | 2009 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net income | $ 20,943 | $ 19,127 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 12,796 | 11,280 |
| Provision for doubtful accounts | 154 | (25) |
| Stock compensation | 2,568 | 1,963 |
| Bond premium amortization | 1,145 | 1,703 |
| Loss on disposal/impairment of property and equipment | 298 | — |
| Cash provided (used) by changes in operating assets and liabilities, net of assets acquired | ||
| Accounts receivable | (7,763) | 6,502 |
| Inventories | (2,670) | (1,754) |
| Prepaid expenses and other assets | (1,874) | (2,425) |
| Accounts payable | (6,365) | 1,655 |
| Accrued liabilities | 1,381 | (3,240) |
| Deferred revenue | (2,013) | 1,923 |
| Prepaid and deferred income taxes | 69 | 3,517 |
| Net cash provided by operating activities | 18,669 | 40,226 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Purchases of property and equipment | (16,978) | (10,164) |
| Assets purchased | — | (30,533) |
| Proceeds from sale of asset | 893 | — |
| Business acquisition, net of cash acquired | — | (5,662) |
| Change in restricted cash | — | 5,497 |
| Purchases of investment securities | (20,853) | (89,940) |
| Proceeds from sale of investment securities | 60,370 | 85,554 |
| Net cash provided (used) by investing activities | 23,432 | (45,248) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Proceeds from exercise of stock options | 903 | 1,352 |
| Proceeds from employee stock purchase plan | 1,576 | 1,271 |
| Tax benefits from exercise of stock options | 708 | 88 |
| Purchase of treasury stock | (28,648) | (560) |
| Net cash provided (used) by financing activities | (25,461) | 2,151 |
| Effect of exchange rate changes on cash | (2,217) | 434 |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 14,423 | (2,437) |
| CASH AND CASH EQUIVALENTS, beginning of period | 51,248 | 55,696 |
| CASH AND CASH EQUIVALENTS, end of period | $ 65,671 | $ 53,259 |
| NON-CASH INVESTING ACTIVITIES | ||
| Accrued liabilities for property and equipment | $ 11 | $ — |
CONTACT: ICU Medical, Inc.
Scott Lamb, Chief Financial Officer
(949) 366-2183
ICR, LLC.
John F. Mills, Senior Managing Director
(310) 954-1100