ICU Medical, Inc. Reports First Quarter 2010 Results
ICU Medical, Inc. Reports First Quarter 2010 Results
Sales Increased 18.5% to $64.4 Million
Operating Cash Flow Totaled $9.6 Million
Company Reaffirms Full-Year 2010 Revenue and EPS Guidance
SAN CLEMENTE, Calif., April 19, 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 first quarter ended March 31, 2010.
First quarter of 2010 revenue increased 18.5% to $64.4 million, compared to $54.3 million in the same period last year. Net income for the first quarter of 2010 was $4.3 million, or $0.30 per diluted share, as compared to net income of $7.1 million, or $0.47 per diluted share, for the first quarter of 2009.
Scott Lamb, ICU Medical's Chief Financial Officer, said, "We are pleased with our top-line growth during the quarter, which was driven by strong performance of CLAVEs, Custom Sets and critical care. Domestic distributor and direct sales were up 184% and international sales increased 53% year over year."
"During the quarter, we made considerable progress with transitioning the critical care operations acquired from Hospira and constructing our new manufacturing plant in Slovakia. We look forward to launching our European production facility in the second half of the year to support strong global demand for our custom products. Additionally, we continued to capitalize on our distribution partnerships with GPO'S, such as Premier and MedAssets, to position our products for further success in both domestic and international markets.
"Looking forward, we are confident that our proven track record of innovation, operating efficiencies, product quality and customer satisfaction will enable us to meet our financial and operational goals for 2010 and beyond."
The Company ended the first quarter with a very healthy balance sheet. As of March 31, 2010, cash, cash equivalents and investment securities totaled $84.9 million and working capital was $150.8 million. Additionally, the Company generated strong operating cash flow of $9.6 million for the first quarter of 2010.
Fiscal Year 2010 Guidance
For the full fiscal year of 2010, management reaffirmed its previously announced revenue guidance in the range of $265 million to $275 million, diluted earnings in the range of $1.80 to $1.90 per share and operating cash flow in the range of $35 million to $40 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 866-383-7989, passcode 53922668 or by replay at 888-286-8010, passcode 65643416. The conference call will be simultaneously available by webcast, which can be accessed by going to the Company's website at http://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.
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 Company's growing worldwide demand, the effect of the current recession on the Company, the Company's positioning for continued growth, investment in strategic initiatives, sales force expansion to take advantage of certain opportunities, improvement of efficiencies, product quality and continued low cost, the Company's strong competitive position and ability to build shareholder value in future years. 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 our products, inability to make investments in strategic growth, lack of continued growth and improving efficiencies. 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 Form 10-K for the year ended December 31, 2009 and 10-Q for the quarter ended September 30, 2009. 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)
December
March 31, 31,
2010 2009
----------- --------
(unaudited) (1)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $42,900 $51,248
Investment securities 42,014 56,887
----------- --------
Cash, cash equivalents and
investment securities 84,914 108,135
Accounts receivable, net of
allowance for doubtful
accounts of $360 at March
31,
2010 and $324 at December
31, 2009 48,836 47,777
Inventories 37,556 41,327
Prepaid income taxes -- 1,994
Prepaid expenses and other
current assets 6,192 5,462
Deferred income taxes 4,348 3,243
----------- --------
Total current assets 181,846 207,938
----------- --------
PROPERTY AND EQUIPMENT, net 82,748 77,449
PROPERTY HELD FOR SALE -- 940
GOODWILL 1,478 1,478
INTANGIBLE ASSETS, net 16,287 16,782
DEFERRED INCOME TAXES 3,686 3,710
INCOME TAXES RECEIVABLE 856 856
----------- --------
$286,901 $309,153
=========== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $17,997 $18,423
Accrued liabilities 11,623 12,884
Incomes tax payable 246 --
Deferred revenue 1,186 2,389
----------- --------
Total current liabilities 31,052 33,696
----------- --------
COMMITMENTS AND
CONTINGENCIES -- --
DEFERRED INCOME TAXES 5,673 5,698
INCOME TAX LIABILITY 4,754 4,754
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 14,811 shares
at March 31, 2010 and
December 31, 2009,
outstanding 13,581 shares
at
March 31, 2010 and 14,239
shares at December 31,
2009 1,481 1,481
Additional paid-in capital 54,972 54,357
Treasury stock, at cost --
1,230 and 572 shares at
March 31, 2010 and
December 31,
2009 (42,827) (19,881)
Retained earnings 232,116 227,861
Accumulated other
comprehensive income
(loss) (320) 1,187
----------- --------
Total stockholders' equity 245,422 265,005
----------- --------
$286,901 $309,153
=========== ========
ICU Medical, Inc. and Subsidiaries
Condensed Consolidated Statements of
Income
(Amounts in thousands, except per share
data)
(unaudited)Three months ended March 31, ----------------
2010 2009 ------- -------
REVENUES: Net sales $64,212 $54,195
Other 151 140 ------- ------- TOTAL REVENUE 64,363 54,335
COST OF GOODS SOLD 37,436 27,769 ------- -------
Gross profit 26,927 26,566 ------- -------
OPERATING EXPENSES: Selling, general and administrative 19,655 15,112 Research and development 918 738 ------- ------- Total operating expenses, net 20,573 15,850 ------- -------
Income from operations 6,354 10,716
OTHER INCOME 192 318 ------- ------- Income before income taxes 6,546 11,034
PROVISION FOR INCOME TAXES (2,291) (3,972) ------- -------
NET INCOME $4,255 $7,062 ======= =======
NET INCOME PER SHARE Basic $0.31 $0.48 Diluted $0.30 $0.47
WEIGHTED AVERAGE NUMBER OF SHARES Basic 13,863 14,735 Diluted 14,111 14,869
ICU Medical, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(unaudited)
Three months ended
March 31,
------------------
2010 2009
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $4,255 $7,062
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 4,551 3,564
Provision for doubtful accounts 52 16
Stock compensation 823 599
Loss on disposal of property and
equipment 50 20
Cash provided (used) by changes in
operating assets and liabilities, net of
assets acquired
Accounts receivable (1,793) 7,777
Inventories 2,997 (2,273)
Prepaid expenses and other assets (1,158) (1,340)
Accounts payable (224) 748
Accrued liabilities (1,042) (276)
Deferred revenue (1,203) --
Prepaid and deferred income taxes 2,305 3,872
-------- --------
Net cash provided by operating activities 9,613 19,769
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (10,375) (2,144)
Proceeds from sale of asset 893 --
Business acquisition, net of cash
acquired -- (5,663)
Change in restricted cash -- 6,014
Purchases of investment securities (5,799) (20,936)
Proceeds from sale of investment
securities 20,672 14,541
-------- --------
Net cash provided (used) by investing
activities 5,391 (8,188)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options 46 1,207
Proceeds from employee stock purchase
plan 747 623
Tax benefits from exercise of stock
options 29 19
Purchase of treasury stock (23,976) (560)
-------- --------
Net cash provided (used) by financing
activities (23,154) 1,289
-------- --------
Effect of exchange rate changes on cash (198) (537)
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (8,348) 12,333
CASH AND CASH EQUIVALENTS, beginning of
period 51,248 55,696
-------- --------
CASH AND CASH EQUIVALENTS, end of period $42,900 $68,029
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This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: ICU Medical, Inc.
CONTACT: ICU Medical, Inc.
Scott Lamb, Chief Financial Officer
(949) 366-2183
ICR, Inc.
John F. Mills, Senior Managing Director
(310) 954-1100