BRAINTREE, Mass., May 4 /PRNewswire-FirstCall/ -- Haemonetics Corporation today reported record revenues and earnings for fiscal 2009 and its eighth consecutive quarter of double digit revenue growth. The Company also announced fiscal 2010 guidance, including continued double digit growth in earnings.
For the year, Haemonetics reported GAAP net revenues of $598 million, up 16%; net income of $59 million, up 14%, and earnings per share of $2.27, up 17%. Excluding restructuring charges in both fiscal 2008 and 2009, adjusted full year net income was $64 million, up 14%, and adjusted earnings per share were $2.45, up 17%(1).
Fourth quarter fiscal 2009 GAAP net revenues were $152 million, up 10%; net income was $14 million, up 1%, and earnings per share were $0.53, up 3%. Excluding restructuring charges, adjusted fourth quarter net income was $17 million, up 10%, and earnings per share were $0.65, up 12%(1).
Haemonetics ended the year with $157 million in cash and $6 million of debt, and generated $62 million of free cash flow. In the year, cash was used for a $60 million share repurchase which Haemonetics completed in the second quarter of fiscal 2009.
Brian Concannon, Haemonetics’ President and CEO, said, “Fiscal 2009 was a strong year operationally and strategically. I’m very pleased with our results. We maintained the momentum of fiscal 2008 with double digit growth and strengthened margins down the P&L, while simultaneously completing business transformation, integrating the TEG(R) business, and expanding our blood management solutions value proposition.”
STRATEGIC AND SEGMENT GROWTH HIGHLIGHTS(1)
Haemonetics continues to make progress expanding its business. The Company reported the following highlights:
As noted, Haemonetics’ fiscal 2009 reported revenues were $598 million, up 16%. Excluding the effects of currency, full year net revenues grew 13%. Reported revenues break down as follows:
Plasma disposables revenue was $202 million for the year, up 30%. Haemonetics’ plasma business benefited from long-term contract implementation and from global growth in plasma collections as demand for IVIG and Albumin increases. Haemonetics expects its plasma business will be an ongoing revenue growth driver for the Company.
Blood bank disposables revenue was $143 million for the year, up 5%. The blood bank business benefited from the impact of exchange rates, unit growth in emerging markets, and a contract with Canadian Blood Services which made Haemonetics its preferred provider of platelet collection systems.
Red cell disposables revenue was $50 million for the year, up 7%. Revenue growth was driven by the U.S. business and by the MCS(R) mobile collection system.
Software and services revenue was $44 million for the year, up 12%. Excluding services, software grew 31% for the year. Software growth was driven by implementation of a number of new contracts and growth in the plasma industry.
Surgical/diagnostics disposables revenue was $88 million, up 22% for the quarter. Surgical/Diagnostics revenue benefited from sales of the TEG Thrombelastograph(R) Hemostasis Analyzer which the Company acquired in November 2007. The TEG business is a $20 million business which grew 15% in the year.
OrthoPAT(R) orthopedic perioperative autotransfusion system disposables revenue was $35 million for the year, up 3%. The Company made progress in the year advancing OrthoPAT system sales in early-adopter blood management solutions accounts.
Equipment revenue was $36 million for the year, up 8%. Platelet and plasma collection equipment sales outside the U.S. were particularly strong in the year.
Haemonetics reported balanced double digit revenue growth in all geographies for the year, with North American sales up 20%, European sales up 13%, Japanese sales up 10%, and Asian sales up 16%.
FISCAL 2010 GUIDANCE
Haemonetics announced its fiscal 2010 annual guidance of revenue growth of 8-11%, operating income growth of 12-15%, and earnings per share in a range of $2.75 to $2.85. The Company expects 150 basis point gross margin improvement, 70 basis point operating margin improvement, and a tax rate of 31%. For the year, the Company expects to generate approximately $60 million of free cash flow.
Mr. Concannon added, “With current economic trends, Haemonetics’ business solutions become even more critical to our customers, and many economic factors favor our value proposition. We are extremely well positioned to continue to deliver strong operating results.”
Haemonetics has posted several items on its website: fiscal 2010 guidance; income scenarios reflecting guidance ranges; and potential fiscal 2010 product line growth. The information is posted at http://www.haemonetics.com/site/content/investor/guidance.asp.
FISCAL 2010 SHARE REPURCHASE PROGRAM
The Company announced that its Board of Directors has approved a $40 million share repurchase.
ANNUAL INVESTOR DAY
Haemonetics is hosting its annual investor and analyst day on Thursday, May 14th at its Corporate headquarters in Braintree, MA. Information on the event is posted on the Haemonetics website.
CONFERENCE CALL
Haemonetics will host a webcast on Monday, May 4th at 10:00 am Eastern to discuss these results. Interested parties can participate at http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=72118&eventID=2195077.
Haemonetics is a global healthcare company dedicated to providing innovative blood management solutions for our customers. Together, our devices and consumables, information technology platforms, and consulting services deliver a suite of business solutions to help our customers improve clinical outcomes and reduce the cost of healthcare for blood collectors, hospitals, and patients around the world. Our technologies address important medical markets: blood and plasma component collection, the surgical suite, and hospital transfusion services. To learn more about Haemonetics, visit our web site at http://www.haemonetics.com.
This release contains forward-looking statements that involve risks and uncertainties, including technological advances in the medical field and standards for transfusion medicine and our ability to successfully implement products that incorporate such advances and standards, product demand, market acceptance, regulatory uncertainties, the effect of economic and political conditions, the impact of competitive products and pricing, blood product reimbursement policies and practices, foreign currency exchange rates, changes in customers’ ordering patterns, the effect of industry consolidation as seen in the plasma market, the effect of communicable diseases and the effect of uncertainties in markets outside the U.S. (including Europe and Asia) in which we operate and other risks detailed in the Company’s filings with the Securities and Exchange Commission. The foregoing list should not be construed as exhaustive. The forward-looking statements are based on estimates and assumptions made by management of the Company and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results and experience could differ materially from the forward-looking statements.
(1) A reconciliation of GAAP to adjusted financial results is included at the end of the financial sections of this press release as well as on the web at http://www.haemonetics.com/investors. In the quarter, Haemonetics incurred $4.4 million in pre-tax restructuring costs. For the year, restructuring costs were $7.0 million pre-tax.
Haemonetics has presented supplemental non-GAAP financial measures as part of this earnings release. A reconciliation is provided below that reconciles each non-GAAP financial measure with the most comparable GAAP measure. The presentation of non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the most directly comparable GAAP measures. There are material limitations to the usefulness of non-GAAP measures on a standalone basis, including the lack of comparability to the GAAP financial results of other companies.
These measures are used by management to monitor the financial performance of the business, inform business decision making, and forecast future results. Performance targets for management are established based upon these non-GAAP measures. In the reconciliations below, we have removed restructuring costs from our GAAP expenses. These restructuring costs result from a significant transformation of our business during our fiscal years 2009 and 2008. This transformation resulted in the formation of a shared service center in Europe, exiting various offices across Europe and Japan and, most recently, in repositioning our technical operations organization. We believe this information is useful for investors because it allows for an evaluation of the Company with a focus on the performance of our core operations.
Non-GAAP Gross Profit
The use of these non-GAAP measures allows management to monitor the level of total gross profits without the costs of our business transformation. We establish our budgets, forecasts, and performance targets on this basis.
Non-GAAP S,G&A and Non-GAAP Operating Expenses
The use of this non-GAAP measure allows management to monitor the ongoing level of spend that is necessary to support the business in a period when we are not transforming our business or completing an acquisition of in-process research and development. We establish our budgets, forecasts, and performance targets excluding these costs.
Non-GAAP Operating Income and Non-GAAP Income before Income Taxes
The use of these non-GAAP measures allows management to monitor the level of operating and total pre-tax profits without the costs of our business transformation. We establish our budgets, forecasts, and performance targets on this basis.
Non-GAAP Net Income and Earnings per Share
The use of these non-GAAP measures allows management to monitor the level of net income and earnings per share excluding both the costs of our business transformation, as well as any related tax effects. We establish our budgets, forecasts, and performance targets on this basis.
CONTACT: Julie Fallon of Haemonetics Corporation, +1-781-356-9517, or
Alternate Tel., +1-617-320-2401, fallon@haemonetics.com
Web site: http://www.haemonetics.com/
