United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 17, 2008
ICU Medical, Inc.
(Exact name of registrant as specified in its charter)
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DELAWARE |
0-19974 |
33-0022692 |
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(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
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951 Calle Amanecer, San Clemente, California |
92673 |
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| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (949) 366-2183
NA
(Former name or former address, if changed since last report)
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | ||
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Item 2.02. Results of Operations and Financial Condition.
ICU Medical, Inc. announced its earnings for the first quarter 2008.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
99.1 Press release, dated April 17, 2008 announcing ICU Medical, Inc.'s first quarter 2008 earnings.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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ICU Medical, Inc.
(Registrant) |
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April 17, 2008
(Date) |
/s/ SCOTT E. LAMB
Scott E. Lamb Secretary, Treasurer and Chief Financial Officer |
EXHIBIT 99.1
ICU Medical, Inc. Reports First Quarter 2008 Results
Company Reaffirms Full-Year 2008 Outlook of $200 Million in Revenue and Diluted Earnings of $1.50 Per Share
SAN CLEMENTE, Calif., April 17, 2008 (PRIME NEWSWIRE) -- ICU Medical, Inc. (Nasdaq:ICUI), a leading low cost manufacturer of safe medical connectors, custom medical products and critical care devices, today announced results for the first quarter ended March 31, 2008.
First quarter of 2008 revenue was $44.7 million, compared to $48.8 million in the same period last year. Net income for the first quarter of 2008 was $2.9 million, or $0.20 per diluted share, as compared to net income of $4.5 million, or $0.29 per diluted share, for the first quarter of 2007. The first quarter of 2007 results exclude the after tax income benefit from a legal settlement of $5.3 million or 34 cents per share.
Scott Lamb, ICU Medical's Chief Financial Officer said, "We are pleased with our first quarter results which were in line with our expectations. The strong performance of our new oncology products line and existing CLAVE and custom CLAVE products were partially offset by a decline in critical care products distributed by Hospira. During the first quarter, Hospira deployed a dedicated team to sell our critical care products and we are optimistic that this team combined with new products will enable us to eventually experience better results from this product line.
"In the latter half of the first quarter 2008, we initiated a full launch of our oncology portfolio of products. This line generated sales of $1.3 million during the first quarter 2008 and we are on track to increase our oncology sales tenfold in 2008 compared to 2007."
Mr. Lamb continued, "During the last 10 days of December and early January, we reduced our plant operating hours in order to perform planned preventative maintenance and this affected our gross margins by three and a half percentage points. Excluding this maintenance, we would have achieved gross margins of 43% compared to 39% for the comparable period last year."
Operating cash flow was $4.7 million for the first quarter of 2008. As of March 31, 2008, cash and investments totaled $99.1 million and working capital was $136.5 million.
For the full fiscal year of 2008, management reaffirmed its outlook of approximately $200 million in revenue and diluted earnings of approximately $1.50 per share.
The Company will be conducting a conference call concerning its first quarter ended March 31, 2008 results at 4:30 p.m. EDT (1:30 p.m. PDT) on Thursday, April 17, 2008. The call can be accessed at 800-561-2718, passcode 47135968 or by replay at 888-286-8010, passcode 75011305. 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. Certain information provided as part of that call will be provided on the Company's website at http://www.icumed.com within 48 hours of the call.
The foregoing statement concerning Management's expectation with respect to future results is a forward-looking statement based upon the best information currently available to Management and assumptions Management believes are reasonable, but Management does not intend the statement to be a representation as to future results. Future results are subject to risks and uncertainties, including the risk factors 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, 2007. Actual results in the future may differ materially from Management's current expectations.
ICU Medical, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
ASSETS
3/31/08 12/31/07
-------- --------
(unaudited) (1)
CURRENT ASSETS:
Cash and cash equivalents $ 37,595 $ 7,873
Marketable securities 61,540 87,770
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Cash, cash equivalents and marketable
securities investments 99,135 95,643
-------- --------
Accounts receivable, net of allowance for
doubtful accounts of $583 and $655 as of
March 31, 2008 and December 31, 2007,
respectively 26,354 26,115
Inventories 21,275 19,504
Prepaid income taxes 1,923 2,740
Prepaid expenses and other current assets 3,861 4,746
Deferred income taxes - current portion 4,181 4,509
-------- --------
Total current assets 156,729 153,257
-------- --------
PROPERTY AND EQUIPMENT, net 73,677 72,708
INTANGIBLE ASSETS, net 11,600 11,884
DEFERRED INCOME TAXES - non-current 2,689 2,432
INCOME TAXES RECEIVABLE - non-current 1,848 1,848
OTHER ASSETS 465 465
-------- --------
$247,008 $242,594
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 7,741 $ 8,439
Accrued liabilities 12,515 13,036
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Total current liabilities 20,256 21,475
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DEFERRED INCOME TAXES - non-current portion 4,325 4,325
INCOME TAXES PAYABLE - non-current portion 2,890 2,890
COMMITMENTS AND CONTINGENCIES -- --
STOCKHOLDERS' EQUITY:
Convertible preferred stock, $1.00 par
value - Authorized - 500,000 shares,
issued and outstanding - none -- --
Common stock, $0.10 par value - Authorized -
80,000,000 shares, issued 14,746,951 shares
at March 31, 2008 and December 31, 2007 1,475 1,475
Additional paid-in capital 70,846 74,805
Treasury stock, at cost - 890,673 and
1,057,501 shares at March 31, 2008 and
December 31, 2007, respectively (34,183) (40,776)
Unrealized holding loss (635) --
Retained earnings 179,902 177,004
Accumulated other comprehensive income 2,132 1,396
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Total stockholders' equity 219,537 213,904
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$247,008 $242,594
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(1) December 31, 2007 balances were derived from audited
consolidated financial statements.
ICU Medical, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Amounts in thousands, except share and per share data)
(unaudited)
Quarter ended March 31,
--------------------------
2008 2007
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REVENUES:
Net sales $ 43,671 $ 47,663
Other 983 1,170
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TOTAL REVENUE 44,654 48,833
COST OF GOODS SOLD 26,883 29,617
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Gross profit 17,771 19,216
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OPERATING EXPENSES:
Selling, general and administrative 13,108 11,999
Research and development 2,019 1,851
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Total operating expenses, net 15,127 13,850
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Income from operations 2,644 5,366
OTHER INCOME 1,556 9,399
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Income before income taxes and
minority interest 4,200 14,765
PROVISION FOR INCOME TAXES (1,302) (5,020)
MINORITY INTEREST -- 70
----------- -----------
NET INCOME $ 2,898 $ 9,815
=========== ===========
NET INCOME PER SHARE
Basic $ 0.21 $ 0.67
Diluted $ 0.20 $ 0.63
WEIGHTED AVERAGE NUMBER OF SHARES
Basic 13,751,622 14,581,699
Diluted 14,375,751 15,614,711
ICU Medical, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(unaudited)
Quarter ended March 31,
---------------------
2008 2007
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 2,898 $ 9,815
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 3,410 2,566
Provision for doubtful accounts (38) 57
Minority interest -- (70)
Stock compensation 416 181
Cash provided (used) by changes in operating
assets and liabilities
Accounts receivable 172 (306)
Inventories (1,646) 151
Prepaid expenses and other assets 566 (560)
Accounts payable (699) (550)
Accrued liabilities (568) 327
Prepaid and deferred income taxes 152 4,769
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Net cash provided by operating activities 4,663 16,380
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CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (3,592) (7,064)
Proceeds from finance loan repayments 24 23
Purchases of marketable securities (9,027) (17,790)
Proceeds from sale of marketable securities 34,622 11,729
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Net cash provided (used) by investing
activities 22,027 (13,102)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options 1,071 602
Proceeds from employee stock purchase plan 744 742
Tax benefits from exercise of stock options 954 140
Purchase of treasury stock -- (8,613)
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Net cash provided (used) by financing
activities 2,769 (7,129)
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Effect of exchange rate changes on cash 263 4
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NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 29,722 (3,847)
CASH AND CASH EQUIVALENTS, beginning of period 7,873 13,153
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CASH AND CASH EQUIVALENTS, end of period $ 37,595 $ 9,306
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CONTACT: ICU Medical, Inc.
Scott E. Lamb, Chief Financial Officer
(949) 366-2183
Integrated Corporate Relations
John F. Mills, Managing Director
(310) 954-1100