SAN CLEMENTE, Calif., Oct. 16, 2008 (GLOBE 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 third quarter and nine months ended September 30, 2008.
For the third quarter of 2008, revenue increased 22.0% to $54.7 million, compared to $44.9 million in the same period last year. Net income for the third quarter of 2008 was $7.6 million, or $0.52 per diluted share, compared to net income of $4.7 million, or $0.31 per diluted share, for the third quarter of 2007.
For the nine months ended September 30, 2008, revenue increased 3.8% to $148.0 million, compared to $142.6 million in the same period last year. For the nine months ended September 30, 2008, the Company earned $15.3 million, or $1.06 per diluted share, compared to net income of $17.1 million, or $1.10 per diluted share, for the nine months ended September 30, 2007.
Scott Lamb, ICU Medical's Chief Financial Officer, commented, "We are very pleased with our overall third quarter results, as the strong top line performance and improved profitability exceeded expectations. Our sales increased 22% over the same period last year and were driven by double-digit growth in each of our key product lines. International and domestic sales were up 37% and 30%, respectively, and our new oncology products continued to gain worldwide momentum and increased over 71% on a sequential basis."
"We will continue to leverage our partnerships with leading firms including Hospira and MedAssets Supply Chain Systems to expand our market share for all products, including CLAVE, custom systems and oncology. During the third quarter, 33% of sales were generated by our expanding network of distributors and direct sales force and we look forward to capitalizing on our first-ever contract with Premier beginning in 2009," concluded Mr. Lamb.
Operating cash flow was $21.3 million for the first nine months of 2008. As of September 30, 2008, cash and investments totaled $117.4 million and working capital was $158.4 million.
Guidance
Based on recent results and the Company's fourth quarter outlook, the Company is increasing its revenue guidance for full year 2008 to $199 - $203 million, compared to the previously announced $190 - $200 million. In addition, the Company is increasing its diluted earnings per share for full year 2008 to a range of $1.48 - $1.53, compared to the previously announced $1.35 - $1.45 per diluted share. Diluted earnings per share guidance does not include an additional $0.13 - $0.16 related to estimated tax benefits to be realized in the fourth quarter of 2008. The majority of the estimated tax benefits will be attributable to tax credits for investments in research and development. The remainder of the benefits will be attributable to a non-recurring realization of tax benefits related to intangible assets. By including these benefits in guidance, full year 2008 diluted earnings per share are expected to be in the range of $1.61 - $1.69. Annual gross margins are expected to be approximately 43%, which is in line with the previously issued guidance.
The Company will release its third quarter 2008 results at approximately 4:00 p.m. EDT (1:00 p.m. PDT) and will be conducting a conference call concerning those results at 4:30 p.m. EDT (1:30 p.m. PDT) on Thursday, October 16, 2008. The call can be accessed at 866-700-6067, passcode 37001315 or by replay at 888-286-8010, passcode 19316642. 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 June 30, 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
9/30/08 12/31/07
------------ ------------
(unaudited) (1)
CURRENT ASSETS:
Cash and cash equivalents $ 61,575 $ 7,873
Marketable securities 55,820 87,770
------------ ------------
Cash, cash equivalents and marketable
securities investments 117,395 95,643
------------ ------------
Accounts receivable, net of allowance
for doubtful accounts of $292 and
$655 as of September 30, 2008 and
December 31, 2007, respectively 32,319 26,115
Inventories 19,156 19,504
Prepaid income taxes 2,487 2,740
Prepaid expenses and other current
assets 4,603 4,746
Deferred income taxes -
current portion 4,702 4,509
------------ ------------
Total current assets 180,662 153,257
------------ ------------
PROPERTY AND EQUIPMENT, net 73,067 72,708
INTANGIBLE ASSETS, net 10,987 11,884
DEFERRED INCOME TAXES- non-current 2,689 2,432
INCOME TAXES RECEIVABLE- non-current 1,848 1,848
OTHER ASSETS 465 465
------------ ------------
$ 269,718 $ 242,594
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 7,585 $ 8,439
Accrued liabilities 14,717 13,036
------------ ------------
Total current liabilities 22,302 21,475
------------ ------------
DEFERRED INCOME TAXES -
non-current portion 4,325 4,325
INCOME TAXES PAYABLE -
non-current portion 3,126 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
September 30, 2008 and
December 31, 2007 1,475 1,475
Additional paid-in capital 60,191 74,805
Treasury stock, at cost - 379,509
and 1,057,501 shares at September 30,
2008 and December 31, 2007,
respectively (14,656) (40,776)
Retained earnings 192,319 177,004
Accumulated other comprehensive
income, net of tax 636 1,396
------------ ------------
Total stockholders' equity 239,965 213,904
------------ ------------
$ 269,718 $ 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 Nine months ended
September 30, September 30,
---------------------- ----------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
REVENUES:
Net sales $ 54,374 $ 44,379 $ 146,427 $ 140,412
Other 361 489 1,554 2,179
---------- ---------- ---------- ----------
TOTAL REVENUE 54,735 44,868 147,981 142,591
COST OF GOODS SOLD 29,788 25,502 84,459 83,371
---------- ---------- ---------- ----------
Gross profit 24,947 19,366 63,522 59,220
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Selling, general
and administrative 13,571 11,485 40,364 34,988
Research and
development 857 2,234 4,328 6,240
---------- ---------- ---------- ----------
Total operating
expenses, net 14,428 13,719 44,692 41,228
---------- ---------- ---------- ----------
Income from
operations 10,519 5,647 18,830 17,992
OTHER INCOME 994 1,379 3,689 7,376
---------- ---------- ---------- ----------
Income before
income taxes and
minority interest 11,513 7,026 22,519 25,368
PROVISION FOR INCOME
TAXES (3,868) (2,319) (7,204) (8,372)
MINORITY INTEREST -- -- -- 70
---------- ---------- ---------- ----------
NET INCOME $ 7,645 $ 4,707 $ 15,315 $ 17,066
========== ========== ========== ==========
NET INCOME PER SHARE
Basic $0.53 $0.33 $1.09 $1.18
Diluted $0.52 $0.31 $1.06 $1.10
WEIGHTED AVERAGE
NUMBER OF SHARES
Basic 14,327,213 14,346,766 14,016,145 14,460,760
Diluted 14,685,127 15,290,208 14,481,383 15,457,815
ICU Medical, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(unaudited)
Nine months ended
September 30,
----------------------
2008 2007
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 15,315 $ 17,066
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 10,714 8,428
Provision for doubtful accounts (297) 386
Minority interest -- (70)
Stock compensation 1,357 583
Cash provided (used) by changes in operating
assets and liabilities
Accounts receivable (6,125) (1,346)
Inventories 301 (1,297)
Prepaid expenses and other assets (631) (581)
Accounts payable (836) (1,335)
Accrued liabilities 1,698 5,313
Prepaid and deferred income taxes (162) 2,815
---------- ----------
Net cash provided by operating activities 21,334 29,962
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (9,685) (19,128)
Cash paid for acquired assets -- (3,224)
Proceeds from finance loan repayments 60 68
Purchases of marketable securities (42,064) (19,210)
Proceeds from sale of marketable securities 73,543 27,185
---------- ----------
Net cash provided (used) by investing
activities 21,854 (14,309)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options 5,035 1,599
Proceeds from employee stock purchase plan 1,373 1,402
Tax benefits from exercise of stock options 4,293 434
Purchase of treasury stock -- (25,734)
---------- ----------
Net cash provided (used) by financing
activities 10,701 (22,299)
---------- ----------
Effect of exchange rate changes on cash (187) 299
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 53,702 (6,347)
CASH AND CASH EQUIVALENTS, beginning of period 7,873 13,153
---------- ----------
CASH AND CASH EQUIVALENTS, end of period $ 61,575 $ 6,806
========== ==========