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8-K - FORM 8-K - HAEMONETICS CORP | b84573e8vk.htm |
Exhibit 99.1
News Release |
FOR RELEASE:
|
CONTACT: | |||
Date:
|
January 31, 2011 | Bryanne Salmon | ||
Time:
|
8:00 am Eastern | Tel. (781) 356-9613 | ||
bsalmon@haemonetics.com |
Haemonetics Reports Third Quarter of Fiscal 11
Revenues are $177 million, up 7% and Adjusted Earnings per Share are $0.89, up 23%
Revenues are $177 million, up 7% and Adjusted Earnings per Share are $0.89, up 23%
Braintree, MA, January 31, 2011 Haemonetics Corporation (NYSE: HAE) today reported GAAP net
revenues of $176.8 million, up 7%, net income of $19.7 million, up 8%, and earnings per share of
$0.77, up 10%. Excluding transformation costs in fiscal 11, adjusted third quarter net income was
$22.6 million, up 21%, and adjusted earnings per share was $0.89, up 23%. In constant currency,
revenue was up 6%, adjusted net income was up 21%, and adjusted earnings per share were up 23%.
1
Year to date, Haemonetics reported GAAP net revenues of $506.7 million, up 6%, net income of $59.0
million, up 8%, and earnings per share of $2.32, up 11%. Excluding transformation costs and
contingent consideration income in fiscal 11, adjusted year to date net income was $61.8 million,
up 13%, and adjusted earnings per share was $2.42, up 16%. In constant currency, revenue was up 7%,
adjusted net income was up 20% and adjusted earnings per share were up 23%. 1
Revenue growth from acquisitions was 4% in Q3 and 5% year to date.
In addition to revenue and earnings growth, in the quarter Haemonetics reported adjusted gross
margin of 52.9%, up 120 basis points, and adjusted operating margin of 18.3%, up 240 basis points.
The Companys adjusted operating expenses were $61.2 million, up $2.0 million from levels in Q3 of
fiscal 10. Adjusted operating expenses, which include $5 million in the quarter related to recent
acquisitions, were lower than expected due to delays in hiring and initiating certain third party
programs. 1
The Company narrowed its full year guidance for revenue growth from 6-9% to 6-7% and for adjusted
earnings per share from a range of $3.18 to $3.28 to a range of $3.20 to $3.28. 1 In
addition, the Company raised its guidance for annual free cash flow before cash transformation
costs, from $85 million to greater than $90 million.
Brian Concannon, Haemonetics President and CEO, said I continue to be encouraged by the positive
momentum in our business and the excellent operating discipline which has driven strong earnings
performance, both in the quarter and year to date. The return to growth in our commercial plasma
business is also very encouraging and the sequential growth rates tell the story of a real recovery
in demand for our plasma products, which we expect to continue in fiscal 12.
STRATEGIC AND SEGMENT GROWTH HIGHLIGHTS
Haemonetics continues to make progress expanding its business. The Company reported the following
highlights:
| In the quarter, average weekly plasma shipments were up 17% from the low point in the recent plasma downturn which occurred in Q4 of fiscal 10. | ||
| 47 additional IMPACT customers in Q3 fiscal 11 bringing the total number of IMPACT customers to 165, driving accelerated revenue growth in key product lines evidenced by a 21% Q3 growth rate for TEG® Thrombelastograph® Hemostasis Analyzer disposables. | ||
| Platelets grew 3% in the quarter and 5% year to date, reflecting strong double digit growth in the Companys emerging markets business units. |
Haemonetics Corporation 400 Wood Road Braintree, MA 02184 USA
News Release |
| In the quarter, equipment revenue grew 16% year over year. Equipment sales are a leading indicator of disposables revenue. | ||
| The Global Med acquisition integration is proceeding well against its planned schedule and operating income targets. |
Mr. Concannon added Weve made great progress in adding IMPACT accounts and these accounts are
generating significantly higher growth rates as they implement a differentiated approach to blood
management. I remain confident in our ability to achieve our full year target of 175 IMPACT
accounts by fiscal year end.
As noted, Haemonetics third quarter fiscal 11 reported revenues were $176.8 million, up 7%.
Reported revenues break down as follows:
Plasma disposables revenue was $59.8 million for the quarter, up 1%, and $172.2 million year to
date, down 3%. Average weekly shipments of plasma disposables in the quarter were up 17% from the
level of average daily shipments in Q4 of fiscal 10, which was the low point of the recent plasma
downturn. Haemonetics expects its plasma business to return to high single digit growth in Q4 as
we compare to a 14 week fiscal period in Q4 of fiscal 10, with full year Plasma revenue growth
expected in a range of 0-2%.
Platelet disposables revenue was $41.1 million for the quarter, up 3%, and $117.1 million year
to date, up 5%. The platelet business benefited from strong sales in our emerging markets.
Haemonetics expects full year Platelet revenue growth of 1-3%.
Red cell disposables revenue was $11.7 million for the quarter, down 3%, and $34.3 million year to
date, also down 3%. Revenue declined due to decreased demand for red cells as a result of
declining surgical volumes. Haemonetics expects full year Red Cell disposable revenues within a
range of a 3- 5% decrease.
Surgical disposables revenue was $17.1 million for the quarter, down 4%, and $49.5 million year to
date, down 5%. The surgical business was also adversely impacted by trends in surgical volumes.
Haemonetics expects full year surgical disposables revenues to decline approximately 5%.
OrthoPAT® orthopedic perioperative autotransfusion system disposables revenue was $9.2 million for
the quarter, down 6%, and $26.5 million year to date down 2%. OrthoPAT sales to IMPACT accounts
grew by 19% in the quarter and 30% year to date. Haemonetics expects full year OrthoPAT
disposables revenues within a range of a 1- 5% decrease.
Diagnostic disposables revenue was $5.2 million for the quarter, up 21%, and $14.6 million year to
date, up 23%. Revenues related to the TEG Thrombelastograph Hemostasis Analyzer
business are accelerating driven by the Companys IMPACT accounts. Haemonetics expects full year
revenue growth of approximately 25%.
Software Solutions revenue was $16.6 million for the quarter, up 101%, and $49.2 million year to
date, up 90%. Software Solutions growth was primarily impacted by our Global Med acquisition.
Organic software growth was 14% in the quarter and 6% year to date. Haemonetics expects full year
revenue growth of approximately 95%.
Equipment and Other revenue was $16.1 million for the quarter, up 16%, and $43.3 million year to
date, up 22%. Year to date equipment growth was impacted by the SEBRA® acquisition.
Organic equipment growth year to date was 14%. Haemonetics expects full year revenue growth of
5-8% as we compare to Q4 fiscal 10 Equipment and Other sales of $18.8 million which included $2.5
million of one-time royalty revenue.
In the quarter, North American sales were up 6%, European sales were up 10%, Japanese sales
were down 3%, and Asian sales were up 22%. Year to date, North American sales were up 6%, European
sales were up 6%, Japanese sales were up 1% and Asian sales were up 26%.
Haemonetics Corporation 400 Wood Road Braintree, MA 02184 USA
News Release |
CONFERENCE CALL
Haemonetics will host a webcast on Monday, January 31st at 10:00am Eastern to discuss
these results. Interested parties can participate at
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=72118&eventID=3643178
Haemonetics (NYSE: HAE) is a global healthcare company dedicated to providing innovative blood
management solutions for our customers. Together, our devices and consumables, information
technology platforms, and consulting services deliver a suite of business solutions to help our
customers improve clinical outcomes and reduce the cost of healthcare for blood collectors,
hospitals, and patients around the world. Our technologies address important medical markets:
blood and plasma component collection, the surgical suite, and hospital transfusion services. To
learn more about Haemonetics, visit our web site http://www.haemonetics.com.
This release contains forward-looking statements that involve risks and uncertainties, including
technological advances in the medical field and standards for transfusion medicine and our ability
to successfully implement products that incorporate such advances and standards, product demand,
market acceptance, regulatory uncertainties, that affect Haemonetics or our customers, the effect
of economic and political conditions, the impact of competitive products and pricing, blood product
reimbursement policies and practices, foreign currency exchange rates, changes in customers
ordering patterns, the effect of industry consolidation as seen in the plasma market, the effect of
communicable diseases and the effect of uncertainties in markets outside the U.S. (including Europe
and Asia) in which we operate and other risks detailed in the Companys filings with the Securities
and Exchange Commission. The foregoing list should not be construed as exhaustive. The
forward-looking statements are based on estimates and assumptions made by management of the Company
and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual
results and experience could differ materially from the forward-looking statements.
1 | A reconciliation of GAAP to adjusted and constant currency financial results is included at the end of the financial sections of this press release as well as on the web at http://phx.corporate-ir.net/phoenix.zhtml?c=72118&p=irol-news&nyo=0. During the third quarter of fiscal 11 Haemonetics incurred $3.7 million in pre-tax transformation and integration costs. Year to date Haemonetics incurred $6.6 million in pre-tax transformation and integration costs and realized $1.9 million in contingent consideration income. Haemonetics incurred $0.5 million of costs to consummate the acquisition of Global Med in the third quarter of fiscal 10. Haemonetics incurred no transformation and integration costs nor did the Company realize any contingent consideration income through the third quarter of fiscal 10. |
Haemonetics Corporation 400 Wood Road Braintree, MA 02184 USA
Haemonetics Corporation Financial Summary
(Unaudited data in thousands, except per share data)
(Unaudited data in thousands, except per share data)
Consolidated Statements of Income for the Third Quarter of FY11 and FY10
1/1/2011 | 12/26/2009 | % Inc/(Dec) | ||||||||||
As Reported | As Reported | vs Prior Year | ||||||||||
NET REVENUES |
$ | 176,789 | $ | 165,169 | 7.0 | % | ||||||
Gross profit |
93,490 | 85,447 | 9.4 | % | ||||||||
R&D |
7,996 | 6,461 | 23.8 | % | ||||||||
S,G&A |
56,935 | 53,151 | 7.1 | % | ||||||||
Operating expenses |
64,931 | 59,612 | 8.9 | % | ||||||||
Operating income |
28,559 | 25,835 | 10.5 | % | ||||||||
Interest
expense, net |
(20 | ) | (192 | ) | (89.6 | %) | ||||||
Other
expense,
net |
(565 | ) | (266 | ) | 112.3 | % | ||||||
Income before taxes |
27,974 | 25,377 | 10.2 | % | ||||||||
Tax expense |
8,240 | 7,091 | 16.2 | % | ||||||||
NET INCOME |
$ | 19,734 | $ | 18,286 | 7.9 | % | ||||||
Net income per common share
assuming dilution |
$ | 0.77 | $ | 0.71 | 9.5 | % | ||||||
Weighted average number of shares |
||||||||||||
Basic |
24,973 | 25,289 | ||||||||||
Diluted |
25,517 | 25,907 |
Inc/(Dec) vs | ||||||||||||
prior year profit | ||||||||||||
margin % | ||||||||||||
Profit Margins: |
||||||||||||
Gross profit |
52.9 | % | 51.7 | % | 1.2 | % | ||||||
R&D |
4.5 | % | 3.9 | % | 0.6 | % | ||||||
S,G&A |
32.2 | % | 32.2 | % | 0.0 | % | ||||||
Operating income |
16.2 | % | 15.6 | % | 0.6 | % | ||||||
Income before taxes |
15.8 | % | 15.4 | % | 0.5 | % | ||||||
Net income |
11.2 | % | 11.1 | % | 0.1 | % |
Consolidated Statements of Income for the First Nine Months of FY11 and FY10
1/1/2011 | 12/26/2009 | % Inc/(Dec) vs | ||||||||||
As Reported | As Reported | Prior Year | ||||||||||
NET REVENUES |
$ | 506,661 | $ | 476,326 | 6.4 | % | ||||||
Gross profit |
267,708 | 249,357 | 7.4 | % | ||||||||
R&D |
23,870 | 19,714 | 21.1 | % | ||||||||
S,G&A |
164,078 | 150,459 | 9.1 | % | ||||||||
Contingent consideration
income |
(1,894 | ) | | | ||||||||
Operating expenses |
186,054 | 170,173 | 9.3 | % | ||||||||
Operating income |
81,654 | 79,184 | 3.1 | % | ||||||||
Interest
income/(expense), net |
400 | (413 | ) | (196.9 | %) | |||||||
Other expense, net |
(544 | ) | (1,389 | ) | (60.9 | %) | ||||||
Income before taxes |
81,510 | 77,382 | 5.3 | % | ||||||||
Tax expense |
22,518 | 22,973 | (2.0 | %) | ||||||||
NET INCOME |
$ | 58,992 | $ | 54,409 | 8.4 | % | ||||||
Net income per common share
assuming dilution |
$ | 2.32 | $ | 2.08 | 11.2 | % | ||||||
Weighted average number of shares |
||||||||||||
Basic |
24,933 | 25,544 | ||||||||||
Diluted |
25,477 | 26,150 |
Inc/(Dec) vs | ||||||||||||
prior year profit | ||||||||||||
margin % | ||||||||||||
Profit Margins: |
||||||||||||
Gross profit |
52.8 | % | 52.4 | % | 0.4 | % | ||||||
R&D |
4.7 | % | 4.1 | % | 0.6 | % | ||||||
S,G&A |
32.4 | % | 31.6 | % | 0.8 | % | ||||||
Operating income |
16.1 | % | 16.6 | % | (0.5 | %) | ||||||
Income before taxes |
16.1 | % | 16.2 | % | (0.1 | %) | ||||||
Net income |
11.6 | % | 11.4 | % | 0.2 | % |
Revenue Analysis for the Third Quarter and Year-To-Date FY11 and FY10
Third Quarter | ||||||||||||
1/1/2011 | 12/26/2009 | %Inc/(Dec) vs | ||||||||||
As Reported | As Reported | Prior Year | ||||||||||
Revenues by geography |
||||||||||||
United States |
$ | 79,844 | $ | 74,997 | 6.5 | % | ||||||
International |
$ | 96,945 | $ | 90,172 | 7.5 | % | ||||||
Net revenues |
$ | 176,789 | $ | 165,169 | 7.0 | % | ||||||
Disposable revenues |
||||||||||||
Plasma disposables |
$ | 59,814 | $ | 59,177 | 1.1 | % | ||||||
Blood bank disposables |
||||||||||||
Platelet |
$ | 41,057 | $ | 39,793 | 3.2 | % | ||||||
Red cell |
$ | 11,676 | $ | 12,022 | (2.9 | %) | ||||||
$ | 52,732 | $ | 51,815 | 1.8 | % | |||||||
Hospital disposables |
||||||||||||
Surgical |
$ | 17,117 | $ | 17,864 | (4.2 | %) | ||||||
OrthoPAT |
$ | 9,248 | $ | 9,864 | (6.2 | %) | ||||||
Diagnostics |
$ | 5,220 | $ | 4,331 | 20.5 | % | ||||||
$ | 31,584 | $ | 32,059 | (1.5 | %) | |||||||
Subtotal |
$ | 144,130 | $ | 143,051 | 0.8 | % | ||||||
Software solutions |
$ | 16,571 | $ | 8,256 | 100.7 | % | ||||||
Equipment & other |
$ | 16,088 | $ | 13,862 | 16.1 | % | ||||||
Net revenues |
$ | 176,789 | $ | 165,169 | 7.0 | % | ||||||
Nine Months Ended | ||||||||||||
1/1/2011 | 12/26/2009 | %Inc/(Dec) vs | ||||||||||
As Reported | As Reported | Prior Year | ||||||||||
Revenues by geography |
||||||||||||
United States |
$ | 237,893 | $ | 225,223 | 5.6 | % | ||||||
International |
$ | 268,768 | $ | 251,103 | 7.0 | % | ||||||
Net revenues |
$ | 506,661 | $ | 476,326 | 6.4 | % | ||||||
Disposable revenues |
||||||||||||
Plasma disposables |
$ | 172,245 | $ | 177,469 | (2.9 | %) | ||||||
Blood bank disposables |
||||||||||||
Platelet |
$ | 117,120 | $ | 111,350 | 5.2 | % | ||||||
Red cell |
$ | 34,284 | $ | 35,285 | (2.8 | %) | ||||||
$ | 151,404 | $ | 146,635 | 3.3 | % | |||||||
Hospital disposables |
||||||||||||
Surgical |
$ | 49,479 | $ | 51,920 | (4.7 | %) | ||||||
OrthoPAT |
$ | 26,486 | $ | 27,126 | (2.4 | %) | ||||||
Diagnostics |
$ | 14,575 | $ | 11,888 | 22.6 | % | ||||||
$ | 90,540 | $ | 90,934 | (0.4 | %) | |||||||
Subtotal |
$ | 414,189 | $ | 415,038 | (0.2 | %) | ||||||
Software solutions |
$ | 49,155 | $ | 25,810 | 90.4 | % | ||||||
Equipment & other |
$ | 43,317 | $ | 35,478 | 22.1 | % | ||||||
Net revenues |
$ | 506,661 | $ | 476,326 | 6.4 | % | ||||||
Consolidated Balance Sheets
Period ending | ||||||||
1/1/11 | 4/3/10 | |||||||
Assets |
||||||||
Cash & cash equivalents |
$ | 169,538 | $ | 141,562 | ||||
Accounts receivable, net |
120,373 | 118,684 | ||||||
Inventories, net |
81,915 | 79,953 | ||||||
Other current assets |
34,191 | 45,944 | ||||||
Total current assets |
406,017 | 386,143 | ||||||
Net PP&E |
156,116 | 153,298 | ||||||
Other assets |
221,256 | 221,219 | ||||||
Total assets |
$ | 783,389 | $ | 760,660 | ||||
Period ending | ||||||||
1/1/11 | 4/3/10 | |||||||
Liabilities & Stockholders Equity |
||||||||
S/T debt & current maturities |
$ | 8,244 | $ | 16,062 | ||||
Other current liabilities |
97,286 | 120,435 | ||||||
Total current liabilities |
105,530 | 136,497 | ||||||
Long-term debt |
4,194 | 4,589 | ||||||
Other long-term liabilities |
25,141 | 26,450 | ||||||
Stockholders equity |
648,524 | 593,124 | ||||||
Total liabilities & equity |
$ | 783,389 | $ | 760,660 | ||||
Free Cash Flow Reconciliation
Three Months Ended | ||||||||
1/1/11 | 12/26/09 | |||||||
GAAP cash flow from operations |
$ | 48,193 | $ | 32,502 | ||||
Capital expenditures |
(10,898 | ) | (11,996 | ) | ||||
Proceeds from sale of property, plant and equipment |
72 | 227 | ||||||
Net investment in property, plant and equipment |
(10,826 | ) | (11,769 | ) | ||||
Free cash flow after transformation and deal costs |
$ | 37,367 | $ | 20,733 | ||||
Transformation and deal costs |
2,962 | | ||||||
2,962 | | |||||||
Free cash flow before transformation and deal costs |
$ | 40,329 | $ | 20,733 | ||||
Nine Months Ended | ||||||||
1/1/11 | 12/26/09 | |||||||
GAAP cash flow from operations |
$ | 92,479 | $ | 93,981 | ||||
Capital expenditures |
(34,986 | ) | (44,876 | ) | ||||
Proceeds from sale of property, plant and equipment |
334 | 610 | ||||||
Net investment in property, plant and equipment |
(34,652 | ) | (44,266 | ) | ||||
Free cash flow |
$ | 57,827 | $ | 49,715 | ||||
Transformation and deal costs |
9,345 | | ||||||
Global Med employment contracts |
2,122 | | ||||||
11,467 | | |||||||
Free cash flow before transformation and deal costs |
$ | 69,294 | $ | 49,715 | ||||
Haemonetics Corporation Financial Summary
Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures
Haemonetics has presented supplemental non-GAAP financial measures as part of this earnings
release. A reconciliation is provided below that reconciles each non-GAAP financial measure with
the most comparable GAAP measure. The presentation of non-GAAP financial measures should not be
considered in isolation from, or as a substitute for, the most directly comparable GAAP measures.
There are material limitations to the usefulness of non-GAAP measures on a standalone basis,
including the lack of comparability to the GAAP financial results of other companies.
These measures are used by management to monitor the financial performance of the business, inform
business decision making, and forecast future results. Performance targets for management are
established based upon these non-GAAP measures. In the reconciliations below, we have removed
restructuring and deal integration costs from our GAAP expenses. Our restructuring is related to
the integration of Global Med Technologies and the repositioning of our sales force. We believe
this information is useful for investors because it allows for an evaluation of the Company with a
focus on the performance of our core operations.
Non-GAAP Gross Profit
The use of these non-GAAP measures allows management to monitor the level of
total gross profits without the costs of our business transformation. We establish our budgets,
forecasts, and performance targets on this basis.
Non-GAAP S,G&A and Non-GAAP Operating Expenses
The use of this non-GAAP measure allows management
to monitor the ongoing level of spend that is necessary to support the business in a period when we
are not transforming our business or completing an acquisition of in-process research and
development. We establish our budgets, forecasts, and performance targets excluding these costs.
Non-GAAP Operating Income and Non-GAAP Income before Income Taxes
The use of these non-GAAP
measures allows management to monitor the level of operating and total pre-tax profits without the
costs of our business transformation. We establish our budgets, forecasts, and performance targets
on this basis.
Non-GAAP Net Income and Earnings per Share
The use of these non-GAAP measures allows management to
monitor the level of net income and earnings per share excluding both the costs of our business
transformation, as well as any related tax effects. We establish our budgets, forecasts, and
performance targets on this basis.
Reconciliation of Non-GAAP Measures for the Third Quarter of FY11 and FY10
01/01/11 | 12/26/09 | |||||||
Non-GAAP gross profit |
||||||||
GAAP gross profit |
$ | 93,490 | $ | 85,447 | ||||
Restructuring costs |
| | ||||||
Non-GAAP gross profit |
$ | 93,490 | $ | 85,447 | ||||
Non-GAAP S,G&A |
||||||||
GAAP S,G&A |
$ | 56,935 | $ | 53,151 | ||||
Restructuring, deal integration and closing costs |
(3,735 | ) | (450 | ) | ||||
Non-GAAP S,G&A |
$ | 53,200 | $ | 52,701 | ||||
Non-GAAP operating expenses |
||||||||
GAAP operating expenses |
$ | 64,931 | $ | 59,612 | ||||
Restructuring, deal integration and closing costs |
(3,735 | ) | (450 | ) | ||||
Non-GAAP operating expenses |
$ | 61,196 | $ | 59,162 | ||||
Non-GAAP operating income |
||||||||
GAAP operating income |
$ | 28,559 | $ | 25,835 | ||||
Restructuring, deal integration and closing costs |
3,735 | 450 | ||||||
Non-GAAP operating income |
$ | 32,294 | $ | 26,285 | ||||
Non-GAAP income before taxes |
||||||||
GAAP income before taxes |
$ | 27,974 | $ | 25,377 | ||||
Restructuring, deal integration and closing costs |
3,735 | 450 | ||||||
Non-GAAP income before taxes |
$ | 31,709 | $ | 25,827 | ||||
Non-GAAP net income |
||||||||
GAAP net income |
$ | 19,734 | $ | 18,286 | ||||
Restructuring, deal integration and closing costs |
3,735 | 450 | ||||||
Tax benefit associated with non-GAAP items |
(873 | ) | (110 | ) | ||||
Non-GAAP net income |
$ | 22,596 | $ | 18,626 | ||||
Non-GAAP net income per common share assuming dilution |
||||||||
GAAP net income per common share assuming dilution |
$ | 0.77 | $ | 0.71 | ||||
Non-GAAP items after tax per common share assuming dilution |
$ | 0.12 | $ | 0.01 | ||||
Non-GAAP net income per common share assuming dilution |
$ | 0.89 | $ | 0.72 | ||||
Presented below are additional Constant Currency performance measures. We measure different
components of our business at constant currency. We believe this information is useful for
investors because it allows for an evaluation of the Company without the effect of changes in
foreign exchange rates. These results convert our local foreign currency operating results to the
US Dollar at constant exchanage rates of $1.20 per Euro, and 110 Yen to the $1.00. They also
exclude the results of our foreign currency hedging program described in Note 7 to our consolidated
financial statements in our Form 10-K.
Non-GAAP revenues |
||||||||
GAAP revenue |
$ | 176,789 | $ | 165,169 | ||||
Foreign currency effects |
(13,369 | ) | (11,157 | ) | ||||
Non-GAAP revenue constant currency |
$ | 163,420 | $ | 154,012 | ||||
Non-GAAP net income |
||||||||
Non-GAAP net income, adjusted for restructuring and deal integration
costs |
$ | 22,596 | $ | 18,626 | ||||
Foreign currency effects |
(5,541 | ) | (4,504 | ) | ||||
Income tax associated with foreign currency effects |
1,590 | 1,256 | ||||||
Non-GAAP net income constant currency |
18,645 | 15,378 | ||||||
Non-GAAP net income per common share assuming dilution |
||||||||
Non-GAAP net income per common share assuming dilution, adjusted for
restructuring and deal integration costs |
$ | 0.89 | $ | 0.72 | ||||
Foreign currency effects after tax per common share assuming dilution |
($0.16 | ) | ($0.13 | ) | ||||
Non-GAAP net income per common share assuming dilution constant
currency |
$ | 0.73 | $ | 0.59 | ||||
Reconciliation of Non-GAAP Measures for the First Nine Months of FY11 and FY10
01/01/11 | 12/26/09 | |||||||
Non-GAAP gross profit |
||||||||
GAAP gross profit |
$ | 267,708 | $ | 249,357 | ||||
Restructuring costs |
| | ||||||
Non-GAAP gross profit |
$ | 267,708 | $ | 249,357 | ||||
Non-GAAP S,G&A |
||||||||
GAAP S,G&A |
$ | 164,078 | $ | 150,459 | ||||
Restructuring, deal integration and closing costs |
(6,598 | ) | (450 | ) | ||||
Non-GAAP S,G&A |
$ | 157,480 | $ | 150,009 | ||||
Non-GAAP operating expenses |
||||||||
GAAP operating expenses |
$ | 186,054 | $ | 170,173 | ||||
Restructuring, deal integration and closing costs |
(6,598 | ) | (450 | ) | ||||
Contingent consideration income |
1,894 | | ||||||
Non-GAAP operating expenses |
$ | 181,350 | $ | 169,723 | ||||
Non-GAAP operating income |
||||||||
GAAP operating income |
$ | 81,654 | $ | 79,184 | ||||
Restructuring, deal integration and closing costs |
6,598 | 450 | ||||||
Contingent consideration income |
(1,894 | ) | | |||||
Non-GAAP operating income |
$ | 86,358 | $ | 79,634 | ||||
Non-GAAP income before taxes |
||||||||
GAAP income before taxes |
$ | 81,510 | $ | 77,382 | ||||
Restructuring, deal integration and closing costs |
6,598 | 450 | ||||||
Contingent consideration income |
(1,894 | ) | | |||||
Non-GAAP income before taxes |
$ | 86,214 | $ | 77,832 | ||||
Non-GAAP net income |
||||||||
GAAP net income |
$ | 58,992 | $ | 54,409 | ||||
Restructuring, deal integration and closing costs |
6,598 | 450 | ||||||
Contingent consideration income |
(1,894 | ) | | |||||
Tax benefit associated with non-GAAP items |
(1,939 | ) | (110 | ) | ||||
Non-GAAP net income |
$ | 61,757 | $ | 54,749 | ||||
Non-GAAP net income per common share assuming dilution |
||||||||
GAAP net income per common share assuming dilution |
$ | 2.32 | $ | 2.08 | ||||
Non-GAAP items after tax per common share assuming dilution |
$ | 0.11 | $ | 0.02 | ||||
Non-GAAP net income per common share assuming dilution |
$ | 2.42 | $ | 2.10 | ||||
Presented below are additional Constant Currency performance measures. We measure different
components of our business at constant currency. We believe this information is useful for
investors because it allows for an evaluation of the Company without the effect of changes in
foreign exchange rates. These results convert our local foreign currency operating results to the
US Dollar at constant exchanage rates of $1.20 per Euro, and 110 Yen to the $1.00. They also
exclude the results of our foreign currency hedging program described in Note 7 to our consolidated
financial statements in our Form 10-K.
Non-GAAP revenues |
||||||||
GAAP revenue |
$ | 506,661 | $ | 476,326 | ||||
Foreign currency effects |
(29,788 | ) | (30,481 | ) | ||||
Non-GAAP revenue constant currency |
$ | 476,873 | $ | 445,845 | ||||
Non-GAAP net income |
||||||||
Non-GAAP net income, adjusted for restructuring and deal integration
costs and contingent consideration income |
$ | 61,757 | $ | 54,749 | ||||
Foreign currency effects |
(12,589 | ) | (15,711 | ) | ||||
Income tax associated with foreign currency effects |
3,576 | 4,798 | ||||||
Non-GAAP net income constant currency |
52,744 | 43,836 | ||||||
Non-GAAP net income per common share assuming dilution |
||||||||
Non-GAAP net income per common share assuming dilution, adjusted for
restructuring and deal integration costs and contingent
consideration income |
$ | 2.42 | $ | 2.10 | ||||
Foreign currency effects after tax per common share assuming dilution |
($0.35 | ) | ($0.42 | ) | ||||
Non-GAAP net income per common share assuming dilution constant
currency |
$ | 2.07 | $ | 1.68 | ||||