DELAWARE | 0-19974 | 33-0022692 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
951 Calle Amanecer, San Clemente, California | 92673 | |
(Address of principal executive offices) | (Zip Code) |
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 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)) |
(c) | Exhibits | |
99.1 | Press release, dated February 3, 2016 announcing ICU Medical, Inc.'s fourth quarter 2015 earnings. |
ICU Medical, Inc. | ||
Date: February 3, 2016 | /s/ SCOTT E. LAMB Scott E. Lamb Secretary, Treasurer and Chief Financial Officer |
(dollars in millions) | ||||||||||||||||||
Fiscal year ended December 31, | Three months ended December 31, | |||||||||||||||||
Market Segment | 2015 | 2014 | Change | 2015 | 2014 | Change | ||||||||||||
Infusion Therapy | $ | 244.8 | $ | 216.3 | $ | 28.5 | $ | 66.1 | $ | 56.5 | $ | 9.6 | ||||||
Critical Care | 54.3 | 55.1 | (0.8 | ) | 13.1 | 13.8 | (0.7 | ) | ||||||||||
Oncology | 41.4 | 36.7 | 4.7 | 11.1 | 9.3 | 1.8 | ||||||||||||
Other | 1.2 | 1.2 | — | 0.1 | 0.3 | (0.2 | ) | |||||||||||
$ | 341.7 | $ | 309.3 | $ | 32.4 | $ | 90.4 | $ | 79.9 | $ | 10.5 |
December 31, | |||||||
2015 | 2014 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 336,164 | $ | 275,812 | |||
Investment securities | 41,233 | 70,952 | |||||
Cash, cash equivalents and investment securities | 377,397 | 346,764 | |||||
Accounts receivable, net of allowance for doubtful accounts of $1,101 and $1,127 at December 31, 2015 and 2014, respectively | 57,847 | 39,051 | |||||
Inventories | 43,632 | 36,933 | |||||
Prepaid income taxes | 14,366 | 3,963 | |||||
Prepaid expenses and other current assets | 7,631 | 5,818 | |||||
Assets held for sale | 4,134 | — | |||||
Total current assets | 505,007 | 432,529 | |||||
PROPERTY AND EQUIPMENT, net | 74,320 | 86,091 | |||||
GOODWILL | 6,463 | 1,478 | |||||
INTANGIBLE ASSETS, net | 23,936 | 7,063 | |||||
DEFERRED INCOME TAXES | 17,099 | 13,941 | |||||
$ | 626,825 | $ | 541,102 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 13,670 | $ | 11,378 | |||
Accrued liabilities | 28,948 | 17,350 | |||||
Total current liabilities | 42,618 | 28,728 | |||||
LONG-TERM LIABILITIES | 1,476 | — | |||||
DEFERRED INCOME TAXES | 1,372 | 1,376 | |||||
INCOME TAX LIABILITY | 1,488 | 2,746 | |||||
COMMITMENTS AND CONTINGENCIES | — | — | |||||
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 and outstanding, 16,086 shares at December 31, 2015 and 15,595 shares at December 31, 2014 | 1,608 | 1,559 | |||||
Additional paid-in capital | 145,125 | 107,336 | |||||
Retained earnings | 453,896 | 408,911 | |||||
Accumulated other comprehensive loss | (20,758 | ) | (9,554 | ) | |||
Total stockholders’ equity | 579,871 | 508,252 | |||||
$ | 626,825 | $ | 541,102 |
Year ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
REVENUES: | |||||||||||
Net sales | $ | 341,254 | $ | 308,770 | $ | 313,056 | |||||
Other | 414 | 490 | 660 | ||||||||
TOTAL REVENUE | 341,668 | 309,260 | 313,716 | ||||||||
COST OF GOODS SOLD | 160,871 | 157,859 | 158,984 | ||||||||
Gross profit | 180,797 | 151,401 | 154,732 | ||||||||
OPERATING EXPENSES: | |||||||||||
Selling, general and administrative | 83,216 | 88,939 | 89,006 | ||||||||
Research and development | 15,714 | 18,332 | 12,407 | ||||||||
Restructuring and strategic transaction | 8,451 | 5,093 | 1,370 | ||||||||
Gain on sale of building | (1,086 | ) | — | — | |||||||
Legal settlements | 1,798 | — | — | ||||||||
Impairment of assets held for sale | 4,139 | — | — | ||||||||
Total operating expenses | 112,232 | 112,364 | 102,783 | ||||||||
Income from operations | 68,565 | 39,037 | 51,949 | ||||||||
OTHER INCOME | 1,134 | 755 | 765 | ||||||||
Income before income taxes | 69,699 | 39,792 | 52,714 | ||||||||
PROVISION FOR INCOME TAXES | (24,714 | ) | (13,457 | ) | (12,296 | ) | |||||
NET INCOME | $ | 44,985 | $ | 26,335 | $ | 40,418 | |||||
NET INCOME PER SHARE | |||||||||||
Basic | $ | 2.84 | $ | 1.72 | $ | 2.75 | |||||
Diluted | $ | 2.73 | $ | 1.68 | $ | 2.65 | |||||
WEIGHTED AVERAGE NUMBER OF SHARES | |||||||||||
Basic | 15,848 | 15,282 | 14,688 | ||||||||
Diluted | 16,496 | 15,647 | 15,274 |
Three months ended December 31, | |||||||
2015 | 2014 | ||||||
REVENUES: | |||||||
Net sales | $ | 90,378 | $ | 79,773 | |||
Other | 9 | 123 | |||||
TOTAL REVENUE | 90,387 | 79,896 | |||||
COST OF GOODS SOLD | 42,130 | 40,211 | |||||
Gross profit | 48,257 | 39,685 | |||||
OPERATING EXPENSES: | |||||||
Selling, general and administrative | 22,519 | 20,299 | |||||
Research and development | 4,057 | 5,080 | |||||
Restructuring and strategic transaction | 5,040 | 2,253 | |||||
Impairment of assets held for sale | 4,139 | — | |||||
Total operating expenses | 35,755 | 27,632 | |||||
Income from operations | 12,502 | 12,053 | |||||
OTHER INCOME | 139 | 183 | |||||
Income before income taxes | 12,641 | 12,236 | |||||
PROVISION FOR INCOME TAXES | (7,178 | ) | (4,864 | ) | |||
NET INCOME | $ | 5,463 | $ | 7,372 | |||
NET INCOME PER SHARE | |||||||
Basic | $ | 0.34 | $ | 0.48 | |||
Diluted | $ | 0.33 | $ | 0.46 | |||
WEIGHTED AVERAGE NUMBER OF SHARES | |||||||
Basic | 16,020 | 15,469 | |||||
Diluted | 16,697 | 15,934 |
Year ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 44,985 | $ | 26,335 | $ | 40,418 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 18,073 | 19,447 | 19,506 | ||||||||
Provision for doubtful accounts | 54 | 34 | 185 | ||||||||
Provision for warranty and returns | 52 | (360 | ) | 671 | |||||||
Stock compensation | 12,827 | 9,592 | 5,434 | ||||||||
(Gain) loss on disposal of property and equipment | (1,106 | ) | 8 | (36 | ) | ||||||
Bond premium amortization | 1,670 | 2,188 | 2,715 | ||||||||
Impairment of assets held for sale | 4,139 | — | — | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (20,515 | ) | 4,912 | 3,556 | |||||||
Inventories | (8,337 | ) | (3,836 | ) | 2,319 | ||||||
Prepaid expenses and other assets | (1,832 | ) | 1,970 | (383 | ) | ||||||
Accounts payable | 3,118 | (621 | ) | (31 | ) | ||||||
Accrued liabilities | 9,454 | 2,344 | (2,215 | ) | |||||||
Income taxes, including excess tax benefits and deferred income taxes | (7,717 | ) | (1,373 | ) | (6,413 | ) | |||||
Net cash provided by operating activities | 54,865 | 60,640 | 65,726 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property and equipment | (12,984 | ) | (16,604 | ) | (18,415 | ) | |||||
Proceeds from sale of assets | 3,592 | 5 | 49 | ||||||||
Intangible asset additions | (951 | ) | (989 | ) | (1,080 | ) | |||||
Business acquisitions, net of cash acquired | (56,786 | ) | — | — | |||||||
Proceeds from sale of business | 28,970 | — | — | ||||||||
Purchases of investment securities | (56,137 | ) | (93,588 | ) | (86,022 | ) | |||||
Proceeds from sale of investment securities | 83,054 | 89,426 | 92,348 | ||||||||
Net cash used by investing activities | (11,242 | ) | (21,750 | ) | (13,120 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from exercise of stock options | 15,042 | 16,998 | 18,004 | ||||||||
Proceeds from employee stock purchase plan | 2,162 | 2,485 | 2,457 | ||||||||
Tax benefits from exercise of stock options | 9,330 | 5,700 | 6,966 | ||||||||
Purchase of treasury stock | (1,523 | ) | (5,836 | ) | (3,033 | ) | |||||
Net cash provided by financing activities | 25,011 | 19,347 | 24,394 | ||||||||
Effect of exchange rate changes on cash | (8,282 | ) | (8,447 | ) | 2,122 | ||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 60,352 | 49,790 | 79,122 | ||||||||
CASH AND CASH EQUIVALENTS, beginning of period | 275,812 | 226,022 | 146,900 | ||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 336,164 | $ | 275,812 | $ | 226,022 | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||
Cash paid during the year for income taxes | $ | 22,998 | $ | 8,668 | $ | 12,172 | |||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES: | |||||||||||
Accrued liabilities for property and equipment | $ | 182 | $ | 789 | $ | 212 |
Adjusted EBITDA | |||||||||||||||
Q4 | Year Ended | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
GAAP net income | $ | 5,463 | $ | 7,372 | $ | 44,985 | $ | 26,335 | |||||||
Non-GAAP adjustments: | |||||||||||||||
Stock compensation expense (a) | 3,522 | 2,602 | 12,827 | 9,592 | |||||||||||
Depreciation and amortization expense (b) | 4,807 | 4,805 | 18,073 | 19,447 | |||||||||||
Restructuring and strategic transaction expense (c) | 5,040 | 2,253 | 8,451 | 5,093 | |||||||||||
Gain on sale of building (d) | — | — | (1,086 | ) | — | ||||||||||
Legal settlements (e) | — | — | 1,798 | — | |||||||||||
Impairment of assets held for sale (f) | 4,139 | — | 4,139 | — | |||||||||||
Provision for income taxes (g) | 7,178 | 4,864 | 24,714 | 13,457 | |||||||||||
Total non-GAAP adjustments | 24,686 | 14,524 | 68,916 | 47,589 | |||||||||||
Adjusted EBITDA | $ | 30,149 | $ | 21,896 | $ | 113,901 | $ | 73,924 | |||||||
Adjusted diluted earnings per share | |||||||||||||||
Q4 | Year Ended | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
GAAP diluted earnings per share | $ | 0.33 | $ | 0.46 | $ | 2.73 | $ | 1.68 | |||||||
Non-GAAP adjustments: | |||||||||||||||
Stock compensation expense (a) | $ | 0.21 | $ | 0.16 | $ | 0.78 | $ | 0.61 | |||||||
Amortization expense (h) | $ | 0.04 | $ | 0.04 | $ | 0.13 | $ | 0.15 | |||||||
Restructuring and strategic transaction expense (c) | $ | 0.30 | $ | 0.14 | $ | 0.51 | $ | 0.33 | |||||||
Gain on sale of building (d) | $ | — | $ | — | $ | (0.07 | ) | $ | — | ||||||
Legal settlements (e) | $ | — | $ | — | $ | 0.11 | $ | — | |||||||
Impairment of assets held for sale (f) | $ | 0.25 | $ | — | $ | 0.25 | $ | — | |||||||
Estimated income tax impact from adjustments (i) | $ | (0.17 | ) | $ | (0.12 | ) | $ | (0.48 | ) | $ | (0.39 | ) | |||
Adjusted diluted earnings per share | $ | 0.96 | $ | 0.68 | $ | 3.96 | $ | 2.38 | |||||||
(a) Stock-based compensation expense in accordance with ASC 718. | |||||||||||||||
(b) Depreciation of fixed assets and amortization of intangible assets. | |||||||||||||||
(c) Restructuring and strategic transaction expense. | |||||||||||||||
(d) Gain on sale of building. | |||||||||||||||
(e) Legal settlements. | |||||||||||||||
(f) Impairment of assets held for sale. | |||||||||||||||
(g) Income tax expense recognized during the period. | |||||||||||||||
(h) Amortization expense | |||||||||||||||
(i) Estimated income tax effect on adjustments for stock compensation expense, amortization expense, restructuring and strategic transaction expense, gain on sale of building, legal settlements and impairment of assets held for sale. |
GAAP net income | $ | 61 | $ | 63 | |||
Non-GAAP adjustments: | |||||||
Stock compensation expense (a) | 15 | 15 | |||||
Depreciation and amortization expense (b) | 19 | 19 | |||||
Provision for income taxes (c) | 28 | 30 | |||||
Total non-GAAP adjustments | 62 | 64 | |||||
Adjusted EBITDA | $ | 123 | $ | 127 | |||
GAAP diluted earnings per share | $ | 3.62 | $ | 3.74 | |||
Non-GAAP adjustments: | |||||||
Stock compensation expense (a) | $ | 0.89 | $ | 0.89 | |||
Amortization expense (d) | $ | 0.17 | $ | 0.17 | |||
Estimated income tax impact from adjustments (e) | $ | (0.34 | ) | $ | (0.34 | ) | |
Adjusted diluted earnings per share | $ | 4.34 | $ | 4.46 | |||
(a) Stock-based compensation expense in accordance with ASC 718. | |||||||
(b) Depreciation of fixed assets and amortization of intangible assets. | |||||||
(c) Income tax expense recognized during the period. | |||||||
(d) Amortization expense | |||||||
(e) Estimated income tax effect on adjustments for stock compensation expense and amortization expense. |