Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MASIMO CORP | masi-20180227x8k.htm |
| EX-99.2 - EXHIBIT 99.2 - MASIMO CORP | q42017supplementalpresen.htm |
| EX-99.1 - EXHIBIT 99.1 - MASIMO CORP | masi-20180227xex991.htm |
Q1 2016 Q2 2016 Q3 2016 Q4 2016 YTD 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME:
GAAP net income attributable to Masimo Corporation stockholders 27,577$ 30,023$ 27,773$ 215,293$ 300,666$ 45,334$ 46,680$ 39,235$ 367$ 131,616$
Non-GAAP adjustments:
Acquisition-related depreciation and amortization:
Cost of goods sold 159 159 159 159 636 639 152 116 116 116 500
Operating expenses 274 274 274 275 1,097 1096 274 274 274 274 1,097
Subtotal - Acquisition-related depreciation and amortization 433 433 433 434 1,733 426 390 390 390 1,597
Litigation awards and damages:
Operating expenses - - - (270,000) (270,000) - - - - -
9803 Tax Impact of Non-GAAP adjustments (104) (104) (104) 84,096 83,784 (102) (88) (88) (88) (366)
Other Tax impacts:
9800 Excess tax benefits from stock-based compensation (1,010) (4,091) (2,638) (5,263) (13,002) (15,147) (15,079) (4,867) (4,149) (39,242)
2017 U.S. Tax Reform - - - - - - - - 43,483 43,483
Subtotal - Other Tax impacts (1,010) (4,091) (2,638) (5,263) (13,002) (15,147) (15,079) (4,867) 39,334 4,242
Total Tax Impact (1,114) (4,195) (2,742) 78,833 70,782 (15,249) (15,167) (4,955) 39,246 3,875
Total Non-GAAP Net Income adjustments (681) (3,762) (2,309) (190,733) (197,485) (14,822) (14,777) (4,565) 39,636 5,472
Non-GAAP net income attributable to Masimo Corporation stockholders 26,896$ 26,261$ 25,464$ 24,560$ 103,181$ 30,512$ 31,903$ 34,670$ 40,003$ 137,088$
Net income per diluted share attributable to Masimo Corporation stockholders:
GAAP net income per diluted share 0.53$ 0.57$ 0.52$ 3.97$ 5.65$ 0.82$ 0.83$ 0.70$ 0.01$ 2.36$
Non-GAAP net income per diluted share 0.52$ 0.50$ 0.48$ 0.45$ 1.94$ 0.55$ 0.57$ 0.62$ 0.72$ 2.45$
Q1 2016 Q2 2016 Q3 2016 Q4 2016 YTD 2016 (1), (2) Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017 (2)
0.53$ 0.57$ 0.52$ 3.97$ 5.65$ 0.82$ 0.83$ 0.70$ 0.01$ 2.36$
Acquisition-related depreciation and amortization 0.01 0.01 0.01 0.01 0.03 0.01 0.01 0.01 0.00 0.03
Litigation awards and damages - - - (4.98) (5.08) - - - - -
Tax Impact of Pre-Tax Non-GAAP Adjustment (0.00) (0.00) (0.00) 1.55 1.57 (0.00) (0.00) (0.00) (0.00) (0.01)
Tax impact of other adjustments
9800 Excess tax benefits from stock-based compensation (0.02) (0.08) (0.05) (0.10) (0.24) (0.27) (0.27) (0.09) (0.07) (0.70)
2017 U.S. Tax Reform - - - - - - - - 0.78 0.78
Subtotal - Tax impact of other adjustments (0.02) (0.08) (0.05) (0.10) (0.24) (0.27) (0.27) (0.09) 0.71 0.08
Total non-GAAP net income per diluted share adjustments (0.01) (0.07) (0.04) (3.52) (3.71) (0.27) (0.26) (0.08) 0.71 0.10
0.52$ 0.50$ 0.48$ 0.45$ 1.94$ 0.55$ 0.57$ 0.62$ 0.72$ 2.45$
RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT:
Q1 2016 Q2 2016 Q3 2016 Q4 2016 YTD 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017
GAAP Gross Profit
Product 106,336$ 107,106$ 102,787$ 116,791$ 433,020$ 115,929$ 118,372$ 116,890$ 130,006$ 481,197$
Royalty and other income 7,877 8,029 7,335 7,538 30,779 8,205 10,065 11,775 23,858 53,903
Total GAAP Gross Profit 114,213$ 115,135$ 110,122$ 124,329$ 463,799$ 124,134$ 128,437$ 128,665$ 153,864$ 535,100$
GAAP product gross profit % 65.1% 65.1% 64.1% 66.5% 65.2% 65.1% 64.8% 64.5% 65.3% 64.9%
GAAP total gross profit % 66.7% 66.7% 65.7% 67.9% 66.8% 66.6% 66.6% 66.4% 68.3% 67.0%
Non-GAAP Product Gross Profit adjustments:
Acquisition-related depreciation and amortization 160 160 160 160 638 152 116 116 116 500
Non-GAAP Gross Profit
Product 106,496$ 107,266$ 102,946$ 116,950$ 433,658$ 116,081$ 118,488$ 117,006$ 130,122$ 481,697$
Royalty and other income 7,877 8,029 7,335 7,538 30,779 8,205 10,065 11,775 23,858 53,903
Total Non-GAAP Gross Profit 114,373$ 115,294$ 110,281$ 124,488$ 464,437$ 124,286$ 128,553$ 128,781$ 153,980$ 535,600$
Non-GAAP product gross profit % 65.2% 65.2% 64.2% 66.6% 65.3% 65.2% 64.8% 64.5% 65.3% 65.0%
Non-GAAP total gross profit % 66.8% 66.8% 65.8% 68.0% 66.9% 66.7% 66.6% 66.5% 68.4% 67.1%
RECONCILIATION OF GAAP OPERATING INCOME TO NON-GAAP OPERATING INCOME:
Q1 2016 Q2 2016 Q3 2016 Q4 2016 YTD 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017
GAAP operating income 37,337$ 36,429$ 36,604$ 310,400$ 420,770$ 43,195$ 46,868$ 47,975$ 59,323$ 197,360$
Acquisition-related depreciation and amortization 434 434 434 434 1,735 426 390 390 390 1,597
Litigation awards and damages - - - (270,000) (270,000) - - - - -
Total non-GAAP Operating Income adjustments 434 434 434 (269,566) (268,265) 426 390 390 390 1,597
Non-GAAP operating income 37,771$ 36,863$ 37,038$ 40,834$ 152,505$ 43,621$ 47,258$ 48,365$ 59,713$ 198,957$
RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES:
Q1 2016 Q2 2016 Q3 2016 Q4 2016 YTD 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017
GAAP operating expenses 76,876$ 78,706$ 73,518$ (186,071)$ 43,029$ 80,939$ 81,569$ 80,690$ 94,541$ 337,739$
Acquisition-related depreciation and amortization (274) (274) (274) (274) (1,097) (274) (274) (274) (274) (1,097)
Litigation awards and damages - - - 270,000 270,000 - - - - -
Total non-GAAP Operating Expenses adjustments (274) (274) (274) 269,726 268,903 (274) (274) (274) (274) (1,097)
Non-GAAP operating expenses 76,602$ 78,432$ 73,244$ 83,655$ 311,932$ 80,665$ 81,295$ 80,416$ 94,267$ 336,642$
Q1 2016 Q2 2016 Q3 2016 Q4 2016 YTD 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017
GAAP Provision for Income Taxes 10,258$ 6,877$ 8,285$ 92,255$ 117,675$ (1,265)$ 346$ 9,027$ 59,650$ 67,758$
Tax Impact of Pre-Tax Non-GAAP Adjustment 104 104 104 (84,096) (83,782) 102 88 88 88 366
Excess tax benefits from stock-based compensation 1,010 4,091 2,638 5,263 13,001 15,147 15,079 4,867 4,149 39,242
2017 U.S. Tax Reform - - - - - - - - (43,483) (43,483)
Total non-GAAP Provision for Income Tax adjustments 1,114 4,195 2,742 (78,833) (70,781) 15,249 15,167 4,955 (39,246) (3,875)
Non-GAAP Provision for Income Taxes 11,372$ 11,072$ 11,027$ 13,422$ 46,894$ 13,984$ 15,513$ 13,982$ 20,404$ 63,883$
NON-GAAP EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION:
Q1 2016 Q2 2016 Q3 2016 Q4 2016 YTD 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017
27,577$ 30,023$ 27,773$ 215,293$ 300,666$ 45,334$ 46,680$ 39,235$ 367$ 131,616$
Other (Income) Expense (498) (471) 546 2,852 2,429$ (874) (158) (287) (694) (2,013)$
Provision for Income Taxes 10,258 6,877 8,285 92,255 117,675 (1,265) 346 9,027 59,650 67,758
Depreciation and amortization 4,051 4,081 4,223 4,462 16,817 4,736 4,726 4,922 5,677 20,061
Subtotal 41,388$ 40,510$ 40,827$ 314,862$ 437,587$ 47,931$ 51,594$ 52,897$ 65,000$ 217,422$
Non-cash stock based compensation 3,026 3,178 3,489 2,810 12,503 2,889 3,253 5,052 5,993 17,187
Litigation awards and damages - - - (270,000) (270,000) - - - - -
44,414$ 43,688$ 44,316$ 47,672$ 180,090$ 50,820$ 54,847$ 57,949$ 70,993$ 234,609$
Non-GAAP Earnings before Interest, Tax, Depreciation and Amortization % 25.9% 25.3% 26.4% 26.0% 25.9% 27.3% 28.4% 29.9% 31.5% 29.4%
Q1 2016 Q2 2016 Q3 2016 Q4 2016 YTD 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017
16.1% 17.4% 16.6% 117.5% 43.3% 24.3% 24.2% 20.3% 0.2% 16.5%
Other (Income) Expense -0.3% -0.3% 0.3% 1.6% 0.3% -0.5% -0.1% -0.1% -0.3% -0.3%
Provision for Income Taxes 6.0% 4.0% 4.9% 50.4% 16.9% -0.7% 0.2% 4.7% 26.5% 8.5%
Depreciation and amortization 2.4% 2.4% 2.5% 2.4% 2.4% 2.5% 2.4% 2.5% 2.6% 2.5%
Subtotal 24.2% 23.5% 24.4% 171.9% 63.0% 25.7% 26.7% 27.3% 28.9% 27.3%
Non-cash stock based compensation 1.8% 1.8% 2.1% 1.5% 1.8% 1.6% 1.7% 2.6% 2.7% 2.2%
Litigation awards and damages 0.0% 0.0% 0.0% -147.4% -38.9% 0.0% 0.0% 0.0% 0.0% 0.0%
25.9% 25.3% 26.4% 26.0% 25.9% 27.3% 28.4% 29.9% 31.6% 29.4%
NON-GAAP EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION:
GAAP net income %
Non-GAAP adjustments:
Non-GAAP Earnings before Interest, Tax, Depreciation and Amortization
RECONCILIATION OF GAAP PROVISION FOR INCOME TAXES TO NON-GAAP PROVISION FOR
INCOME TAXES:
Non-GAAP adjustments:
GAAP net income
Adjustments:
Non-GAAP Earnings before Interest, Tax, Depreciation and Amortization
(1) Due to the significant impact of the Philips Settlement Agreement on the fourth quarter results, the sum of the diluted earnings per share numbers for each quarter will not equal the diluted earnings per share number for the
entire year.
(2) The sum of each quarter may not equal the entire year due to rounding.
Non-GAAP adjustments:
Non-GAAP adjustments:
RECONCILIATION OF GAAP NET INCOME PER DILUTED SHARE TO NON-GAAP NET INCOME
PER DILUTED SHARE:
GAAP net income per diluted share attributable to Masimo Corporation stockholders
Non-GAAP adjustments:
Non-GAAP net income per diluted share attributable to Masimo Corporation stockholders
MASIMO CORPORATION
SUPPLEMENTAL NON-GAAP INFORMATION
(unaudited in thousands, except per share amounts)