SHENZHEN, China, March 9, 2015 /PRNewswire/ -- Mindray Medical International Limited ("Mindray", NYSE: MR), a leading developer, manufacturer and marketer of medical devices worldwide, announced today its selected unaudited financial results for the fourth quarter and full year ended December 31, 2014.
Highlights for Fourth Quarter and Full Year 2014
- Full year net revenues increased 9.0% year-over-year to $1.3 billion.
- China net revenues rose 10.1% to $606.7 million for the full year. International sales reached $716.1 million, representing an 8.0% increase from a year ago.
- In the fourth quarter, China net revenues increased 13.9% year-over-year to $182.7 million, while Western Europe sales achieved double-digit net revenue growth from a year ago.
- Reagent net revenues continued to climb in the fourth quarter, contributing 48.2% to the IVD segment, up from 41.4% in the same period last year and 44.2% in the previous quarter.
- Net operating cash inflow for the full year grew 7.3% to $330.5 million.
- Introduced eight new products along with several reagents in 2014, including the first cellular analysis line in hematology and a new portable color ultrasound system.
- Declared dividend of $0.40 per share.
"In 2014, Mindray continued to focus on innovation and strengthening its core competencies in the face of a tough operating environment across major markets. Western Europe remained a bright spot and its growth reflected the success of our investments over the last few years. The IVD segment performed well, largely driven by reagents sales increase. Longer term, we remain upbeat about our IVD business, based on the ramp up of our higher-end products and our ability to offer total solutions to customers," commented Mr. Cheng Minghe, Mindray's Co-Chief Executive Officer and Chief Strategic Officer. "We invested more in R&D and introduced eight new products to the market during the year. The continued dividend payout demonstrated our commitment to returning capital to our shareholders despite the challenges we faced."
SUMMARY Fourth Quarter and Year EndedDecember 31, 2014
(in $ millions, except per-share data, unaudited) | Three Months Ended | Year Ended | ||||
December 31 | December 31 | |||||
2014 | 2013 | % chg | 2014 | 2013 | % chg | |
Net Revenues | 399.0 | 368.4 | 8.3% | 1,322.8 | 1,214.0 | 9.0% |
Net Revenues Generated in China | 182.7 | 160.4 | 13.9% | 606.7 | 551.2 | 10.1% |
Net Revenues Generated in International Markets | 216.2 | 208.0 | 3.9% | 716.1 | 662.8 | 8.0% |
Gross Profit | 220.4 | 205.9 | 7.1% | 738.5 | 686.6 | 7.6% |
Non-GAAP Gross Profit | 222.4 | 208.0 | 6.9% | 747.1 | 694.7 | 7.5% |
Operating Income | 53.4 | 54.0 | -1.0% | 192.5 | 210.2 | -8.4% |
Non-GAAP Operating Income | 61.9 | 75.8 | -18.3% | 230.3 | 252.7 | -8.9% |
EBITDA | 74.4 | 69.5 | 7.1% | 254.9 | 262.9 | -3.1% |
Net Income[1] | 52.0 | 75.2 | -30.9% | 193.3 | 224.8 | -14.0% |
Non-GAAP Net Income[1] | 59.7 | 73.9 | -19.1% | 228.2 | 264.1 | -13.6% |
Non-GAAP Net Income[2] (ex tax benefit) | 58.4 | 65.7 | -11.1% | 222.1 | 236.6 | -6.1% |
Diluted EPS | 0.44 | 0.63 | -29.9% | 1.63 | 1.87 | -12.8% |
Non-GAAP Diluted EPS | 0.50 | 0.62 | -18.0% | 1.93 | 2.20 | -12.4% |
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[2] | The non-GAAP net income (ex tax benefit) excludes the tax benefits of $7.4 million and $26.8 million recognized respectively in the fourth quarter and full year of 2013 in relation to the nationwide key software enterprise status for the calendar years 2011, 2012 and 2013; and $1.3 million and $5.9 million recognized respectively in the fourth quarter and full year of 2014 in relation to the nationwide key software enterprise status for the calendar year 2014; and the non-GAAP tax benefits of $0.7 million recognized both in the fourth quarter and full year of 2013 in relation to dispute charges; and $0.1 million and $0.2 million recognized respectively in the fourth quarter and full year of 2014 in relation to dispute related legal fees. |
Fourth Quarter 2014 Results
Net Revenues
Mindray reported net revenues of $399.0 million for the fourth quarter of 2014, an 8.3% increase from the fourth quarter of 2013.
- Net revenues generated in China increased 13.9% year-over-year to $182.7 million.
- Net revenues generated in the international markets increased 3.9% year-over-year to $216.2 million.
Performance by Segment
Patient Monitoring and Life Support Products: Net revenues in this segment increased 5.0% year-over-year to $149.8 million, contributing 37.6% to total net revenues in this quarter.
In-Vitro Diagnostic Products: Net revenues in this segment increased 7.7% year-over-year to $103.4 million, contributing 25.9% to total net revenues in this quarter. Reagents sales represented 48.2% of this segment's net revenues.
Medical Imaging Systems: Net revenues in this segment increased 11.9% from a year ago to $108.6 million, contributing 27.2% to total net revenues in this quarter.
Others: Other net revenues increased 13.5% year-over-year to $37.2 million, contributing 9.3% to total net revenues in this quarter. Other net revenues mainly include sales from the orthopedics business, service revenues from extended warranties, sales of accessories and repair-service revenues for the post-warranty period.
Gross Profit
Fourth quarter 2014 gross profit was $220.4 million, a 7.1% increase year-over-year. Gross margin was 55.3% in the fourth quarter of 2014 compared to 55.9% in the fourth quarter of 2013 and 56.3% in the third quarter of 2014. Fourth quarter 2014 non-GAAP gross profit was $222.4 million, a 6.9% increase from the fourth quarter of 2013. Non-GAAP gross margin was 55.8% in the fourth quarter of 2014 compared to 56.5% in the fourth quarter of 2013 and 57.0% in the third quarter of 2014.
Operating Expenses
Selling expenses for the fourth quarter of 2014 were $77.9 million, or 19.5% of total net revenues, compared to 16.7% in the fourth quarter of 2013 and 20.3% in the third quarter of 2014. Non-GAAP selling expenses for the fourth quarter of 2014 were $75.0 million, or 18.8% of total net revenues, compared to 16.1% in the fourth quarter of 2013 and 18.9% in the third quarter of 2014.
General and administrative expenses for the fourth quarter of 2014 were $40.3 million, or 10.1% of total net revenues, compared to 13.5% in the fourth quarter of 2013 and 12.1% in the third quarter of 2014. Non-GAAP general and administrative expenses for the fourth quarter of 2014 were $37.8 million, or 9.5% of total net revenues, compared to 9.1% in the fourth quarter of 2013 and 11.1% in the third quarter of 2014.
Research and development expenses for the fourth quarter of 2014 were $48.8 million, or 12.2% of total net revenues, compared to 11.1% in the fourth quarter of 2013 and 10.6% in the third quarter of 2014. Non-GAAP research and development expenses for the fourth quarter of 2014 were $47.7 million, or 12.0% of total net revenues, compared to 10.7% in the fourth quarter of 2013 and 10.2% in the third quarter of 2014.
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