Fourth quarter and full-year 2017 consolidated revenue was $78.2 million and $306.6 million, an increase of 8% and 13%, respectively, compared to the fourth quarter and full-year 2016.
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AUSTIN, Texas, Feb. 12, 2018 /PRNewswire/ -- Luminex Corporation (NASDAQ:LMNX) today announced financial results for the fourth quarter and full-year 2017. Financial and operating highlights for the quarter and full-year include:
"Luminex delivered a strong performance again in 2017 growing revenues more than 13% to a record $307 million. Management's focus on the expansion of our molecular business is paying off as our sample-to-answer offerings, VERIGENE and ARIES, are experiencing rapid market adoption," said Homi Shamir, President and Chief Executive Officer of Luminex. "We remain confident about the continued growth of our molecular sample-to-answer business as well as our very solid partner business, creating a well-diversified company with a strong balance sheet, positive cash flow, regular cash dividends and significant growth opportunities ahead of it." REVENUE SUMMARY
(in thousands, except percentages)
Three Months Ended
December 31, Variance
------------ --------
2017 2016 ($) (%)
---- ---- --- ---
(unaudited)
System sales $10,342 $9,611 $731 8%
Consumable
sales 10,005 11,107 (1,102) -10%
Royalty
revenue 11,329 10,157 1,172 12%
Assay
revenue 41,830 36,697 5,133 14%
Service
revenue 2,876 2,924 (48) -2%
Other
revenue 1,817 1,775 42 2%
$78,199 $72,271 $5,928 8%
======= ======= ====== ===
Twelve Months Ended
December 31, Variance
------------ --------
2017 2016 ($) (%)
---- ---- --- ---
(unaudited)
System sales $38,651 $37,416 $1,235 3%
Consumable
sales 49,319 48,596 723 1%
Royalty
revenue 44,704 44,045 659 1%
Assay
revenue 154,907 122,064 32,843 27%
Service
revenue 11,470 10,816 654 6%
Other
revenue 7,520 7,702 (182) -2%
$306,571 $270,639 $35,932 13%
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FINANCIAL OUTLOOK AND GUIDANCE The Company intends to provide annual revenue guidance, to be updated, as appropriate, at each quarterly reporting period. Luminex announces its 2018 annual revenue guidance range to be between $310 million and $316 million. The Company anticipates first quarter 2018 revenue to be between $79 million and $81 million. CONFERENCE CALL Management will host a conference call at 3:30 p.m. CST / 4:30 p.m. EST, Monday, February 12, 2018 to discuss the operating highlights and financial results for the fourth quarter 2017 ended December 31, 2017. The conference call will be webcast live and may be accessed at Luminex Corporation's website at http://www.luminexcorp.com. Simply log on to the web at the address above, go to the Company section and access the Investor Relations link. Please go to the website at least 15 minutes prior to the call to register, download and install any necessary audio/video software. If you are unable to participate during the live webcast, the call will be archived for six months on the website using the 'replay' link. Luminex develops, manufactures and markets proprietary biological testing technologies with applications throughout the life sciences industry. The Company's xMAP® system is an open-architecture, multi-analyte technology platform that delivers fast, accurate and cost-effective bioassay results to markets as diverse as pharmaceutical drug discovery, clinical diagnostics and biomedical research, including the genomics and proteomics research markets. The Company's xMAP technology is sold worldwide and is in use in leading research laboratories as well as major pharmaceutical, diagnostic and biotechnology companies. Further information on Luminex or xMAP can be obtained on the Internet at http://www.luminexcorp.com. Statements made in this release that express Luminex's or management's intentions, plans, beliefs, expectations or predictions of future events are forward-looking statements. Forward-looking statements in this release include statements regarding expected revenue and cost savings and projected 2018 performance, including revenue guidance. The words "believe," "expect," "intend," "estimate," "anticipate," "will," "could," "should" and similar expressions are intended to further identify such forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. It is important to note that the Company's actual results or performance could differ materially from those anticipated or projected in such forward-looking statements. Factors that could cause Luminex's actual results or performance to differ materially include risks and uncertainties relating to, among others, concentration of Luminex's revenue in a limited number of direct customers and strategic partners, some of which may be experiencing decreased demand for their products utilizing or incorporating Luminex's technology; market demand and acceptance of Luminex's products and technology in development, including ARIES®, VERIGENE® and NxTAG® products; Luminex's ability to scale manufacturing operations and manage operating expenses, gross margins and inventory levels; Luminex's ability to obtain and enforce intellectual property protections on Luminex's products and technologies; the impact on Luminex's growth and future results of operations with respect to the loss of the LabCorp women's health business anticipated in 2018; Luminex's ability to successfully launch new products in a timely manner; dependence on strategic partners for development, commercialization and distribution of products; risks and uncertainties associated with implementing Luminex's acquisition strategy, including Luminex's ability to obtain financing; Luminex's ability to integrate acquired companies or selected assets into Luminex's consolidated business operations, from time to time, and the ability to recognize the benefits of Luminex's acquisitions; the timing of and process for regulatory approvals; competition and competitive technologies utilized by Luminex's competitors; fluctuations in quarterly results due to a lengthy and unpredictable sales cycle; fluctuations in bulk purchases of consumables; fluctuations in product mix, and the seasonal nature of some of Luminex's assay products; the impact of the ongoing uncertainty in global finance markets and changes in governmental funding, including its effects on the capital spending policies of Luminex's partners and end users and their ability to finance purchases of Luminex's products; Luminex's ability to comply with applicable laws, regulations, policies and procedures; changes in interpretation, assumptions and expectations regarding the Tax Cuts and Jobs Act, including additional guidance that may be issued by federal and state taxing authorities; changes in principal members of Luminex's management staff; potential shortages, or increases in costs, of components or other disruptions to Luminex's manufacturing operations; Luminex's increasing dependency on information technology to improve the effectiveness of Luminex's operations and to monitor financial accuracy and efficiency; the implementation, including any modification, of Luminex's strategic operating plans; the uncertainty regarding the outcome or expense of any litigation brought against or initiated by Luminex; risks relating to Luminex's foreign operations, including fluctuations in exchange rates, tariffs, customs and other barriers to importing/exporting materials and products in a cost effective and timely manner; difficulties in accounts receivable collections; Luminex's ability to monitor and comply with foreign and international laws and treaties; Luminex's ability to comply with changes in international taxation policies; budget or finance constraints in the current economic environment, or periodic variability in their purchasing patterns or practices as a result of material resource planning challenges; reliance on third party distributors for distribution of specific Luminex-developed and manufactured assay products, as well as the risks discussed under the heading "Risk Factors" in Luminex's Reports on Forms 10-K and 10-Q, as filed with the Securities and Exchange Commission. The forward-looking statements, including the financial guidance and 2018 outlook, contained herein represent the judgment of Luminex as of the date of this press release, and Luminex expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in Luminex's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. LUMINEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2017 2016
---- ----
(unaudited)
ASSETS
Current assets:
Cash and
cash
equivalents $127,112 $93,452
Accounts
receivable,
net 40,648 32,365
Inventories,
net 49,478 40,775
Prepaids and
other 7,403 7,145
----- -----
Total
current
assets 224,641 173,737
Property and
equipment,
net 58,258 57,375
Intangible
assets, net 75,985 84,841
Deferred
income
taxes 37,552 42,497
Goodwill 85,481 85,481
Other 8,599 6,785
Total assets $490,516 $450,716
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts
payable $14,537 $12,276
Accrued
liabilities 25,990 22,804
Deferred
revenue 4,721 5,120
Total
current
liabilities 45,248 40,200
Deferred
revenue 1,498 1,875
Other 5,863 4,962
----- -----
Total
liabilities 52,609 47,037
------ ------
Stockholders' equity:
Common stock 43 43
Additional
paid-in
capital 350,834 336,430
Accumulated
other
comprehensive
loss (625) (1,692)
Retained
earnings 87,655 68,898
------ ------
Total
stockholders'
equity 437,907 403,679
Total
liabilities
and
stockholders'
equity $490,516 $450,716
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LUMINEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
(unaudited) (unaudited)
Revenue $78,199 $72,271 $306,571 $270,639
Cost of revenue 27,819 28,008 107,525 90,984
Gross profit 50,380 44,263 199,046 179,655
Operating expenses:
Research and development 10,367 13,335 45,717 48,659
Selling, general and
administrative 28,717 28,569 107,322 99,511
Amortization of acquired
intangible assets 2,166 2,421 8,854 8,218
Restructuring costs - 2,281 - 2,281
Total operating expenses 41,250 46,606 161,893 158,669
------ ------ ------- -------
Income from operations 9,130 (2,343) 37,153 20,986
Interest expense from
long-term debt - - - -
Other income, net 2 24 (4) (1,371)
Income before income taxes 9,132 (2,319) 37,149 19,615
Income tax benefit
(expense) (12,097) (1,041) (7,726) (5,801)
------- ------ ------ ------
Net income $(2,965) $(3,360) $29,423 $13,814
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Net income attributable to common stock holders
Basic $(2,915) $(3,360) $28,894 $13,814
Diluted $(2,915) $(3,360) $28,894 $13,814
Net income per share attributable to common stock holders
Basic $(0.07) $(0.08) $0.67 $0.32
Diluted $(0.07) $(0.08) $0.67 $0.32
Weighted-average shares used in computing net income per
share
Basic 43,357 42,768 43,173 42,584
Diluted 43,524 42,768 43,300 43,013
Dividends declared per
share $0.06 - $0.24 -
LUMINEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
(unaudited) (unaudited)
Cash flows from operating activities:
Net income $(2,965) $(3,360) $29,423 $13,814
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 5,762 5,730 22,641 20,131
Stock-based compensation 3,901 3,640 12,478 11,821
Deferred income tax (benefit)
expense 9,495 (845) 6,383 3,626
Loss (gain) on sale or disposal of
assets 545 137 964 265
Other 252 (508) 1,531 (1,378)
Changes in operating assets and liabilities:
Accounts receivable, net (4,213) (2,419) (8,265) 1,136
Inventories, net (3,351) 681 (8,668) (5,484)
Other assets 2,678 2,041 (83) 1,811
Accounts payable 6,332 2,410 1,798 3,460
Accrued liabilities 5,151 6,800 14 198
Deferred revenue (516) (452) (785) 281
---- ---- ---- ---
Net cash provided by operating
activities 23,071 13,855 57,431 49,681
------ ------ ------ ------
Cash flows from investing activities:
Sales and maturities of available-
for-sale securities - - - 19,491
Purchase of property and equipment (4,252) (4,736) (14,635) (13,130)
Proceeds from sale of assets 61 - 62 45
Business acquisition consideration,
net of cash acquired - - - (68,098)
Issuance of note receivable (700) - (1,400) -
Purchase of cost method investment - (500) (1,000) (1,000)
Acquired technology rights (80) - (140) (200)
Net cash used in investing
activities (4,971) (5,236) (17,113) (62,892)
------ ------ ------- -------
Cash flows from financing activities:
Payments on debt - - - (25,000)
Proceeds from issuance of common
stock 1,072 1,528 4,305 5,089
Shares surrendered for tax
withholding (226) (222) (2,350) (1,719)
Dividends (2,648) - (7,930) -
Net cash (used in) provided by
financing activities (1,802) 1,306 (5,975) (21,630)
------ ----- ------ -------
Effect of foreign currency exchange
rate on cash (97) (618) (683) (253)
Change in cash and cash equivalents 16,201 9,307 33,660 (35,094)
Cash and cash equivalents, beginning
of period 110,911 84,145 93,452 128,546
------- ------ ------ -------
Cash and cash equivalents, end of
period $127,112 $93,452 $127,112 $93,452
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LUMINEX CORPORATION
NON-GAAP RECONCILIATION
(in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
(unaudited) (unaudited)
Reported
Net
Income $(2,965) $(3,360) $29,423 $13,814
Costs
associated
with
legal
proceedings 320 - 424 -
Acquisition
costs - 731 - 4,718
Severance
costs 945 - 1,846 1,035
Restructuring
costs - 2,525 - 2,525
Income
tax
effect
of
above
adjusting
items (208) (562) (458) (1,199)
Income
tax
effect
from
discrete
tax
items 10,597 1,441 (1,826) 685
Adjusted
Net
Income $8,689 $775 $29,409 $21,578
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The Company makes reference in this release to "non-GAAP net income" which excludes costs associated with legal proceedings, acquisition costs, severance costs, and the impact of restructuring costs; some of which are unpredictable and can vary significantly from period to period; and certain other recurring and non-recurring expenses. The Company believes that excluding these items and their related tax effects from its financial results reflects operating results that are more indicative of the Company's ongoing operating performance while improving comparability to prior periods, and, as such may provide investors with an enhanced understanding of the Company's past financial performance and prospects for the future. In addition, the Company's management uses such non-GAAP measures internally to evaluate and assess its core operations and to make ongoing operating decisions. This information is not intended to be considered in isolation or as a substitute for income from operations, net income, net income per share or expense information prepared in accordance with GAAP. Contacts: Harriss T. Currie Matthew Scalo
Sr. Vice President, Finance and Chief Financial Officer Sr. Director, Investor Relations
512-219-8020 512-219-8020
hcurrie@luminexcorp.com mscalo@luminexcorp.com
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Company Codes: NASDAQ-NMS:LMNX |
