ICU MEDICAL INC/DE - FORM 8-K - EX-99.1 - PRESS RELEASE - April 16, 2012

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8-K - ICU MEDICAL INC/DEa2012q1earningsrelease.htm


Exhibit 99.1

ICU Medical, Inc. Reports First Quarter 2012 Results
Revenue increased 5.7% to $75.5 million
Net income was $7.6 million, or $0.53 per diluted share
Operating cash flow totaled $18.3 million
Company reiterates FY 2012 guidance

SAN CLEMENTE, Calif.-April 16, 2012-ICU Medical, Inc., (Nasdaq: ICUI), a leader in the development, manufacture and sale of innovative medical devices used in infusion therapy, oncology and critical care applications, announced results for the first quarter ended March 31, 2012.
First quarter of 2012 revenue increased 5.7% to $75.5 million, compared to $71.5 million in the same period last year. Net income for the first quarter of 2012 was $7.6 million, or $0.53 per diluted share, as compared to net income of $8.1 million, or $0.57 per diluted share, for the first quarter of 2011.
Scott Lamb, ICU Medical's Chief Financial Officer, said, “Our revenue and profitability for the first quarter reflected robust growth in infusion therapy, standard oncology and TEGO products, offset by an expected decline in critical care. Our international sales were up 13.6%, while domestic sales grew 3.1% year over year, validating continued demand for our products worldwide.”
“Looking for the remainder of the year, we are confident that we will continue to benefit from our industry leading partnerships and products, as well as our strong balance sheet. We remain focused on expanding our market share in our target markets and delivering value to our shareholders,” concluded Mr. Lamb.
Revenues by market segment for the first quarter ended March 31, 2012 and 2011 were as follows:
The Company ended the first quarter with a healthy balance sheet. As of March 31, 2012, cash, cash equivalents and investment securities totaled $183.6 million and working capital was $250.6 million. Additionally, the Company generated operating cash flow of $18.3 million for the first quarter of 2012.
Fiscal Year 2012 Guidance
For the full fiscal year of 2012, management reaffirms its previously announced guidance and expects to generate revenue in the range of $318 million to $330 million, diluted earnings in the range of $2.45 to $2.70 per share, and operating cash flow in the range of $40 million to $50 million.
Conference Call
The Company will be conducting a conference call concerning its first quarter results today at 4:30 p.m. EDT (1:30 p.m. PDT). The call can be accessed at 800-936-9761, international 408-774-4587, conference ID 57949282 or by replay at 855-859-2056, international 404-537-3406, conference ID 57949282. 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. 
About ICU Medical, Inc.
ICU Medical, Inc. (Nasdaq: ICUI) develops, manufactures and sells innovative medical devices used in infusion therapy, oncology, and critical care applications. ICU Medical's products improve patient outcomes by helping prevent bloodstream infections and protecting healthcare workers from exposure to infectious diseases or hazardous drugs. The Company's complete product line includes custom I.V. systems, closed delivery systems for hazardous drugs, needlefree I.V. connectors, catheters and cardiac monitoring systems. ICU Medical is headquartered in San Clemente, California. For more information, visit the Company's website 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 continued demand for the Company's products worldwide, the Company's benefiting from its industry leading partnerships, products and strong balance sheet, its focus on expanding the Company's market share in its target markets and delivering value to shareholders and the statements under the heading ''Fiscal Year 2012 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 and unexpected changes in the Company's arrangements with its largest customers. 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, 2011. 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.
Contact:

ICU Medical, Inc.
Scott Lamb, Chief Financial Officer
(949) 366-2183

ICR, LLC.
John F. Mills, Senior Managing Director
(310) 954-1105





ICU Medical, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands, except per share data)
 

 
March 31,
2012
 
December 31,
2011
 
(unaudited)
 
(1)
ASSETS
 
 
 
CURRENT ASSETS:
 
 
 
 
 
Cash and cash equivalents
$
122,103

 
$
99,590

Investment securities
61,482
 
 
60,395
 
Cash, cash equivalents and investment securities
183,585
 
 
159,985
 
Accounts receivable, net of allowance for doubtful accounts of $1,056 at March 31, 2012 and $1,293 at December 31, 2011
41,728
 
 
43,571
 
Inventories
37,290
 
 
40,423
 
Prepaid income taxes
3,677
 
 
5,589
 
Prepaid expenses and other current assets
5,913
 
 
6,759
 
Deferred income taxes
3,798
 
 
4,081
 
Total current assets
275,991
 
 
260,408
 
 
 
 
 
PROPERTY AND EQUIPMENT, net
83,183
 
 
83,048
 
GOODWILL
1,478
 
 
1,478
 
INTANGIBLE ASSETS, net
11,065
 
 
11,419
 
DEFERRED INCOME TAXES
4,767
 
 
4,759
 
 
$
376,484

 
$
361,112

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
CURRENT LIABILITIES:
 
 
 
 
 
Accounts payable
$
11,825

 
$
13,251

Accrued liabilities
13,562
 
 
16,059
 
Total current liabilities
25,387
 
 
29,310
 
COMMITMENTS AND CONTINGENCIES
—
 
 
—
 
DEFERRED INCOME TAXES
7,127
 
 
7,144
 
INCOME TAX LIABILITY
4,081
 
 
4,081
 
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 March 31, 2012 and December 31, 2011, outstanding 14,117 shares at March 31, 2012 and 13,871 shares at December 31, 2011
1,486
 
 
1,486
 
Additional paid-in capital
58,106
 
 
56,796
 
Treasury stock, at cost - 738 shares at March 31, 2012 and 984 shares at December 31, 2011
(27,034
)
 
(35,348
)
Retained earnings
308,478
 
 
300,877
 
Accumulated other comprehensive loss
(1,147
)
 
(3,234
)
Total stockholders' equity
339,889
 
 
320,577
 
 
$
376,484

 
$
361,112

______________________________________________________
(1) 12/31/2011 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 March 31,
 
2012
 
2011
REVENUES:
 
 
 
 
 
Net sales
$
75,383

 
$
71,338

Other
128
 
 
133
 
TOTAL REVENUE
75,511
 
 
71,471
 
COST OF GOODS SOLD
40,546
 
 
36,845
 
Gross profit
34,965
 
 
34,626
 
OPERATING EXPENSES:
 
 
 
 
 
Selling, general and administrative
20,890
 
 
22,863
 
Research and development
2,693
 
 
2,052
 
Legal settlement
—
 
 
(2,500
)
Total operating expenses
23,583
 
 
22,415
 
Income from operations
11,382
 
 
12,211
 
OTHER INCOME
135
 
 
403
 
Income before income taxes
11,517
 
 
12,614
 
PROVISION FOR INCOME TAXES
(3,916
)
 
(4,541
)
NET INCOME
$
7,601

 
$
8,073

NET INCOME PER SHARE
 
 
 
 
 
Basic
$
0.54

 
$
0.59

Diluted
$
0.53

 
$
0.57

WEIGHTED AVERAGE NUMBER OF SHARES
 
 
 
 
 
Basic
13,956
 
 
13,692
 
Diluted
14,324
 
 
14,056
 
 




ICU Medical, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(unaudited)
 

 
Three months ended March 31,
 
2012
 
2011
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
Net income
$
7,601

 
$
8,073

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
4,777
 
 
4,500
 
Provision for doubtful accounts
(263
)
 
208
 
Provision for warranty and returns
312
 
 
—
 
Stock compensation
1,231
 
 
978
 
Loss on disposal of property and equipment
27
 
 
—
 
Bond premium amortization
357
 
 
19
 
Cash provided (used) by changes in operating assets and liabilities
 
 
 
 
 
Accounts receivable
1,931
 
 
5,085
 
Inventories
3,768
 
 
(6,186
)
Prepaid expenses and other assets
898
 
 
(252
)
Accounts payable
(1,610
)
 
2,764
 
Accrued liabilities
(2,608
)
 
(2,091
)
Deferred revenue
—
 
 
(278
)
Prepaid and deferred income taxes
1,915
 
 
2,347
 
Net cash provided by operating activities
18,336
 
 
15,167
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
Purchases of property and equipment
(3,632
)
 
(4,942
)
Proceeds from sale of asset
10
 
 
—
 
Intangible asset additions
(287
)
 
—
 
Purchases of investment securities
(22,424
)
 
(24,530
)
Proceeds from sale of investment securities
21,442
 
 
3,304
 
Net cash used by investing activities
(4,891
)
 
(26,168
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
Proceeds from exercise of stock options
5,684
 
 
1,027
 
Proceeds from employee stock purchase plan
1,081
 
 
909
 
Tax benefits from exercise of stock options
1,626
 
 
280
 
Purchase of treasury stock
—
 
 
—
 
Net cash provided by financing activities
8,391
 
 
2,216
 
Effect of exchange rate changes on cash
677
 
 
1,049
 
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
22,513
 
 
(7,736
)
CASH AND CASH EQUIVALENTS, beginning of period
99,590
 
 
78,850
 
CASH AND CASH EQUIVALENTS, end of period
$
122,103

 
$
71,114

 
 
 
 
NON-CASH INVESTING ACTIVITIES
 
 
 
Accrued liabilities for property and equipment
$
588

 
$
—

 



ICU MEDICAL INC/DE Reports