SAN CLEMENTE, Calif., July 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 second quarter and six months ended June 30, 2008.
Second quarter of 2008 revenue was $48.6 million, compared to $48.9 million in the same period last year. Net income for the second quarter of 2008 was $4.8 million, or $0.33 per diluted share, compared to net income of $2.5 million, or $0.16 per diluted share, for the second quarter of 2007.
For the six months ended June 30, 2008, revenue totaled $93.2 million, compared to revenue of $97.7 million in the same period last year. For the six months ended June 30, 2008, the Company earned $7.7 million, or $0.53 per diluted share, compared to net income of $12.4 million, or $0.79 per diluted share, for the six months ended June 30, 2007.
Scott Lamb, ICU Medical's Chief Financial Officer, commented, "We are pleased with the revenue and earnings performance of our core business during the second quarter. Our gross margins expanded 3 percentage points to 43% and operating income increased over 100% on a sequential basis. Sales from our Custom systems were up 12% during the second quarter, compared to last year, while sales from our new products, including oncology, increased over 65% on a sequential basis. This growth was offset by continued weakness in critical care products that we manufacture for Hospira. Excluding critical care, our revenue grew 9%, compared to the same period last year."
"Looking forward, we are very pleased with our long-term domestic and international growth opportunities. As evidenced by our recently renewed agreement with MedAssets Supply Chain Systems, we are well positioned to expand our distribution network for our CLAVE, Custom and oncology products. These agreements validate our reputation as a low-cost and quality leader in the industry and create additional growth opportunities for years to come," concluded Mr. Lamb.
Operating cash flow was $11.0 million for the first six months of 2008. As of June 30, 2008, cash and investments totaled $109 million and working capital was $148 million.
Taking into account continued softness in the Company's critical care product division and higher commodity prices affecting shipping and raw material costs, management is providing a guidance range for 2008 revenue of $190 - $200 million, annual gross margins to be approximately 43% and diluted earnings per share to be in the range of $1.35 - $1.45 per diluted share.
The Company will be conducting a conference call concerning its second quarter ended June 30, 2008 results at 4:30 p.m. EDT (1:30 p.m. PDT) on Thursday, July 17, 2008. The call can be accessed at 866-831-6291, passcode 98859306 or by replay at 888-286-8010, passcode 36686876. 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 and 10Q for the quarter ended March 31, 2008. 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
6/30/08 12/31/07
-------- --------
(unaudited) (1)
CURRENT ASSETS:
Cash and cash equivalents $ 79,607 $ 7,873
Marketable securities 28,977 87,770
-------- --------
Cash, cash equivalents and
marketable securities investments 108,584 95,643
-------- --------
Accounts receivable, net of
allowance for doubtful accounts of
$329 and $655 as of June 30, 2008
and December 31, 2007, respectively 29,633 26,115
Inventories 20,611 19,504
Prepaid income taxes 3,193 2,740
Prepaid expenses and other current
assets 3,645 4,746
Deferred income taxes - current
portion 4,143 4,509
-------- --------
Total current assets 169,809 153,257
-------- --------
PROPERTY AND EQUIPMENT, net 74,077 72,708
INTANGIBLE ASSETS, net 11,331 11,884
DEFERRED INCOME TAXES- non-current 2,689 2,432
INCOME TAXES RECEIVABLE - non-current 1,848 1,848
OTHER ASSETS 465 465
-------- --------
$260,219 $242,594
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 7,234 $ 8,439
Accrued liabilities 14,136 13,036
-------- --------
Total current liabilities 21,370 21,475
-------- --------
DEFERRED INCOME TAXES - non-current
portion 4,325 4,325
INCOME TAXES PAYABLE - non-current
portion 3,190 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
June 30, 2008 and December 31, 2007 1,475 1,475
Additional paid-in capital 61,309 74,805
Treasury stock, at cost - 458,360
and 1,057,501 shares at June 30,
2008 and December 31, 2007,
respectively (17,754) (40,776)
Retained earnings 184,674 177,004
Accumulated other comprehensive
income, net of tax 1,630 1,396
-------- --------
Total stockholders' equity 231,334 213,904
-------- --------
$260,219 $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)
Three months ended Six months ended
June 30, June 30,
---------------------- ----------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
REVENUES:
Net sales $ 48,382 $ 48,370 $ 92,053 $ 96,033
Other 210 520 1,193 1,690
---------- ---------- ---------- ----------
TOTAL REVENUE 48,592 48,890 93,246 97,723
COST OF GOODS SOLD 27,788 28,252 54,671 57,869
---------- ---------- ---------- ----------
Gross profit 20,804 20,638 38,575 39,854
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Selling, general
and administrative 13,685 11,504 26,793 23,503
Research and
development 1,452 2,155 3,471 4,006
---------- ---------- ---------- ----------
Total operating
expenses, net 15,137 13,659 30,264 27,509
---------- ---------- ---------- ----------
Income from
operations 5,667 6,979 8,311 12,345
OTHER INCOME (EXPENSE) 1,139 (3,402) 2,695 5,997
---------- ---------- ---------- ----------
Income before
income taxes and
minority interest 6,806 3,577 11,006 18,342
PROVISION FOR INCOME
TAXES (2,034) (1,033) (3,336) (6,053)
MINORITY INTEREST -- -- -- 70
---------- ---------- ---------- ----------
NET INCOME $ 4,772 $ 2,544 $ 7,670 $ 12,359
========== ========== ========== ==========
NET INCOME PER SHARE
Basic $0.34 $0.18 $0.55 $0.85
Diluted $0.33 $0.16 $0.53 $0.79
WEIGHTED AVERAGE
NUMBER OF SHARES
Basic 13,966,161 14,456,396 13,858,892 14,518,705
Diluted 14,381,185 15,534,568 14,387,683 15,572,663
ICU Medical, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(unaudited)
Six months ended
June 30,
--------------------
2008 2007
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 7,670 $ 12,359
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 7,028 5,364
Provision for doubtful accounts (282) 222
Minority interest -- (70)
Stock compensation 882 310
Cash provided (used) by changes in
operating assets and liabilities
Accounts receivable (2,890) (5,521)
Inventories (969) 591
Prepaid expenses and other assets 565 (261)
Accounts payable (1,252) (1,345)
Accrued liabilities 1,037 5,296
Prepaid and deferred income taxes (813) 526
-------- --------
Net cash provided by operating
activities 10,976 17,471
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (7,122) (14,171)
Cash paid for acquired assets -- (3,224)
Proceeds from finance loan repayments 48 38
Purchases of marketable securities (12,357) (18,258)
Proceeds from sale of marketable
securities 70,685 21,004
-------- --------
Net cash provided (used) by investing
activities 51,254 (14,611)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options 4,602 808
Proceeds from employee stock purchase
plan 744 742
Tax benefits from exercise of stock options 3,849 238
Purchase of treasury stock -- (8,613)
-------- --------
Net cash provided (used) by financing
activities 9,195 (6,825)
-------- --------
Effect of exchange rate changes on cash 309 69
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 71,734 (3,896)
CASH AND CASH EQUIVALENTS, beginning of
period 7,873 13,153
-------- --------
CASH AND CASH EQUIVALENTS, end of period $ 79,607 $ 9,257
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