SAN CLEMENTE, Calif., July 18, 2007 (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 second quarter and six months ended June 30, 2007.
Second quarter revenue was $48.9 million, a 3% increase, as compared to pro forma revenue of $47.5 million in the same period last year. Excluding the pro forma adjustment to exclude sales of discontinued products of $3.9 million in 2006, revenue was $51.4 million in the second quarter of 2006.
Net income for the second quarter of 2007 was $2.5 million, or $0.16 per diluted share, as compared to net income of $6.3 million, or $0.40 per diluted share, in the second quarter of 2006. The 2007 amount includes a charge for a judgment against us in a lawsuit with Alaris of $3.2 million net of tax, or $0.21 per share. Excluding that, the Company would have earned $0.37 per share for the second quarter of 2007.
For the six months ended June 30, 2007, pro forma revenue totaled $97.4 million, a 7% increase, as compared to pro forma revenue of $90.9 million in the same period last year. Excluding the pro forma adjustment to exclude sales of discontinued products of $0.3 million in 2007 and $9.3 million in 2006, revenue was $97.7 million for the six months ended June 30, 2007 and $100.2 million for June 30, 2006.
For the six-months ended June 30, 2007, the Company earned $12.4 million, or $0.79 per share, as compared to net income of $12.7 million, or $0.82 per share for the six-months ended June 30, 2006. Net income for the first half of 2007 was favorably impacted by a net gain of $2.1 million, after tax, or $0.13 per share, resulting from the favorable settlement with a law firm in the first quarter partially offset by the judgment against us in the second quarter.
Frank O'Brien, ICU Medical's Chief Financial Officer said, "Our sales of critical care products that we supply to Hospira declined $1.6 million in the quarter as compared to the second quarter last year, and we anticipate steeper declines for the balance of 2007. We produce to meet Hospira's demand and Hospira handles the sales of these products, and there is little we can do in the near term to stem these declines. The declines are a disappointment to us, and we are seeking ways to rectify the situation." He continued, "We are pleased with the overall performance of our other sales during the second quarter. Our custom products, not including critical care custom products, posted a 14% increase in sales, international sales increased 31% and our gross margins improved 3 percentage points to 42%. We consider 2007 to be a transitional year and are very excited about the opportunities lying ahead of us as we prepare for new product introductions, continue to develop our product pipeline and expand our international footprint."
Operating cash flow was $17.5 million for the first six months of 2007. As of June 30, 2007, cash and investments totaled $110.3 million and working capital was $150.7 million.
Due to softer than expected demand by Hospira for the Company's critical care products, management is now targeting 2007 revenue to be $190 million, compared to the previous target of $206 million. The Company's diluted earnings are now targeted at $1.50 per share, compared to the earlier target of $1.62.
The Company will be conducting a conference call concerning its second quarter ended June 30, 2007 results at 1:30 p.m. PST (4:30 p.m. EST) on Wednesday, July 18, 2007 which can be accessed at 866-383-8009, passcode 32898093 or by replay at 888-286-8010, passcode 11396045. 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. Certain information provided as part of that call will be provided on the Company's website at www.icumed.com within 48 hours of this announcement.
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, 2006. Actual results in the future may differ materially from Management's current expectations.
ICU Medical, Inc.
Summary Consolidated Statements of Income
(all dollar amounts in thousands, except share and per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
2007 2006 2007 2006
----------- ----------- ----------- -----------
TOTAL REVENUE 48,890 51,425 97,723 100,206
COST OF GOODS SOLD 28,252 28,351 57,869 55,782
OPERATING EXPENSES 13,659 14,571 27,509 26,731
Income from
operations 6,979 8,503 12,345 17,693
OTHER (3,402) 1,197 5,997 1,958
----------- ----------- ----------- -----------
PROVISION FOR
INCOME TAXES (1,033) (3,543) (6,053) (7,271)
MINORITY INTEREST -- 135 70 278
----------- ----------- ----------- -----------
NET INCOME $ 2,544 $ 6,292 $ 12,359 $ 12,658
=========== =========== =========== ===========
NET INCOME
PER SHARE
Diluted $ 0.16 $ 0.40 $ 0.79 $ 0.82
WEIGHTED AVERAGE
NUMBER OF SHARES
Diluted 15,534,568 15,571,367 15,572,663 15,490,707
ICU Medical, Inc.
Summary Consolidated Balance Sheet Data
(all dollar amounts in thousands, except share data)
ASSETS
6/30/07 12/31/06
-------- --------
(unaudited) (1)
CURRENT ASSETS:
Cash and liquid investments $110,276 $116,918
Accounts receivable, net 31,940 26,533
Inventories 15,746 16,315
Prepaid and deferred income taxes 7,589 7,417
Other current assets 5,048 4,255
-------- --------
Total current assets 170,599 171,438
-------- --------
PROPERTY AND EQUIPMENT, NET 68,725 59,037
INCOME TAX RECEIVABLE AND DEFERRED TAXES,
long term 4,864 2,878
OTHER ASSETS 12,771 10,895
-------- --------
$256,959 $244,248
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES $ 19,904 $ 15,919
DEFERRED INCOME TAXES 3,084 3,084
OTHER 2,890 358
STOCKHOLDERS' EQUITY
14,458,850 common shares
outstanding at June 30, 2007 231,081 224,887
-------- --------
$256,959 $244,248
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(1) December 31, 2006 amounts were derived from the audited
consolidated financial statements of ICU Medical, Inc.
ICU Medical, Inc.
Summary Consolidated Statements of Cash Flows
(all dollar amounts in thousands)
(unaudited)
Six Months Ended
--------------------
6/30/07 6/30/06
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 12,359 $ 12,658
Adjustments to reconcile net income to net cash
Provided by operating activities --
Depreciation and amortization 5,364 5,176
Net change in current assets and liabilities,
and other (252) (3,467)
-------- --------
Net cash provided by operating activities 17,471 14,367
-------- --------
PURCHASES OF PROPERTY AND EQUIPMENT (14,171) (9,413)
NET INCREASE (DECREASE) IN LIQUID INVESTMENTS 2,746 (13,787)
EMPLOYEE EQUITY PLANS 1,788 8,118
PURCHASE OF TREASURY STOCK (8,613) --
OTHER (3,117) 653
NET (DECREASE) IN CASH
AND CASH EQUIVALENTS -------- --------
$ (3,896) $ (62)
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