SAN CLEMENTE, Calif., July 18 /PRNewswire-FirstCall/ -- ICU Medical, Inc., , a leading low cost manufacturer of safe medical connectors, custom medical products and critical care devices, today announced results for the second quarter ended June 30, 2006.
Second quarter revenue was $51.4 million, a 26% increase as compared to $40.7 million in the same period last year. Net income increased 33% to $6.3 million, or $0.40 per diluted share, as compared to $4.7 million, or $0.31 per diluted share, in the second quarter of 2005.
For the six-months ended June 30, 2006, the Company earned $12.7 million, or $0.82 per diluted share, on revenues of $100.2 million, as compared to net income of $9.2 million, or $0.61 per diluted share, on revenues of $67.8 million for the six-months ended June 30, 2005.
“We are encouraged by our better than expected revenue and earnings results in the second quarter,” said Frank O’Brien, ICU Medical’s Chief Financial Officer. “Our gross margins on product sales improved to 44% in the second quarter from 42% in the first quarter and our manufacturing relocation to Salt Lake City and Mexico continues to be on plan and, as of today, is approximately 40% complete. All channels experienced increased sales growth, particularly International which grew 66%.”
Operating cash flows were $14.4 million for the first six months of 2006. As of June 30, 2006, cash and investments totaled $100.5 million and working capital rose to $140.4 million.
Based on results to date and expectations for the remainder of 2006, the Company is raising its revenue and earnings targets for the full year. The company now is targeting sales of $195 million and diluted earnings per share of $1.65 for 2006.
The Company will be conducting a conference call concerning its second quarter ended June 30, 2006 results at 1:30 p.m. PST (4:30 p.m. EST) on Tuesday, July 18, 2006 which can be accessed at 800-901-5248, passcode 45801025 or by replay at 888-286-8010, passcode 36966844. 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 most recent 10-Q. Actual results in the future may differ materially from Management’s current expectations.
Contact: Francis J. O’Brien Chief Financial Officer ICU Medical, Inc. (949) 366-2183 John F. Mills Managing Director Integrated Corporate Relations (310) 395-2215 ICU Medical, Inc. Condensed 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, 2006 2005 2006 2005 REVENUES: Net sales $50,891 $40,116 $98,348 $65,779 Other 534 577 1,858 1,999 TOTAL REVENUE 51,425 40,693 100,206 67,778 COST OF GOODS SOLD 28,351 24,360 55,782 36,220 Gross profit 23,074 16,333 44,424 31,558 OPERATING EXPENSES: Selling, general and administrative 12,236 9,606 22,827 17,629 Research and development 2,335 1,004 3,904 1,678 Total operating expenses 14,571 10,610 26,731 19,307 Income from operations 8,503 5,723 17,693 12,251 OTHER INCOME 1,197 986 1,958 1,574 Income before income taxes and minority interest 9,700 6,709 19,651 13,825 PROVISION FOR INCOME TAXES 3,543 2,095 7,271 4,866 MINORITY INTEREST (135) (125) (278) (197) NET INCOME $6,292 $4,739 $12,658 $9,156 NET INCOME PER SHARE Diluted $0.40 $0.31 $0.82 $0.61 WEIGHTED AVERAGE NUMBER OF SHARES Diluted 15,571,367 15,080,689 15,490,707 14,939,345 ICU Medical, Inc. Summary Consolidated Balance Sheet Data (all dollar amounts in thousands, except share data) ASSETS 6/30/06 12/31/05 (unaudited) CURRENT ASSETS: Cash and liquid investments $100,467 $86,742 Accounts receivable, net 26,732 23,644 Inventories 18,549 15,435 Prepaid and deferred income taxes 6,216 7,241 Other current assets 4,967 4,700 Total current assets 156,931 137,762 PROPERTY AND EQUIPMENT, NET 57,602 52,194 OTHER ASSETS 13,358 14,581 $227,891 $204,537 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES $16,533 $13,887 DEFERRED INCOME TAXES 352 529 MINORITY INTEREST 645 923 STOCKHOLDERS’ EQUITY 14,462,660 common shares outstanding at June 30, 2006 210,361 189,198 $227,891 $204,537 ICU Medical, Inc. Summary Consolidated Statements of Cash Flows (all dollar amounts in thousands) (unaudited) Six Months Ended 6/30/06 6/30/05 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $12,658 $9,156 Adjustments to reconcile net income to net cash Provided by operating activities -- Depreciation and amortization 5,176 4,212 Net change in current assets and liabilities, and other (3,467) (8,204) Tax benefits from exercise of stock options in 2005 -- 2,080 Net cash provided by operating activities 14,367 7,244 CASH PAID FOR ACQUIRED ASSETS -- (32,116) PURCHASES OF PROPERTY AND EQUIPMENT (9,413) (2,449) NET INCREASE (DECREASE) IN LIQUID INVESTMENTS (13,787) 24,300 EMPLOYEE EQUITY PLANS 8,118 3,958 OTHER 653 323 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $(62) $1,260
ICU Medical, Inc.
CONTACT: Francis J. O’Brien, Chief Financial Officer of ICU Medical, Inc.,+1-949-366-2183; or John F. Mills, Managing Director of IntegratedCorporate Relations, +1-310-395-2215, for ICU Medical, Inc.
Web site: http://www.icumed.com/
