ALARIS Medical Reports First Quarter Profit On Record First Quarter Sales.Business Editors & Health/Medical Writers SAN DIEGO--(BW HealthWire)--May 1, 2002 ALARIS Alaris is the brand name of the regional rail network run by the Spanish national rail company RENFE that connects the major cities of Madrid and Valencia. Alaris services currently use ETR 490 trainsets. Medical Inc. (AMEX AMEX See: American Stock Exchange :AMI) today reported first quarter net income of $0.9 million, or $0.01 per share, on record first quarter sales of $104.4 million. These results are consistent with the company's earlier guidance, including comments that ALARIS plans to be profitable for the full year 2002. Sales were $104.4 million for the quarter ended March 31, 2002, an increase of $5.5 million, or 6 percent (8 percent in constant currency), when compared with the same period in 2001. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become increased $1.8 million, or 9 percent, to $21.3 million for the first quarter of 2002 versus $19.5 million for the same period in the prior year. The company reported net income of $0.9 million or $0.01 per share for the quarter, compared with a net loss of $2.5 million or $0.04 per share a year ago. The sales, adjusted EBITDA and earnings per share were all in line with the outlook for the quarter indicated in the company's press release of April 11, 2002. David L. Schlotterbeck, president and chief executive officer, said, "We are pleased to be reporting net income ahead of the plans we established for the year. We continue to believe that we will report full year profitability for the first time in the history of ALARIS. The marketplace is quickly recognizing that we can provide an immediate solution to reduce medication errors medication error Malpractice An error in the type of medication administered or dosage. See Adverse effect, Error. at the bedside. We have made tremendous progress in executing our strategy to be recognized as the leading medication medication /med·i·ca·tion/ (med?i-ka´shun) 1. medicine (1). 2. impregnation with a medicine. 3. administration of a medicine or other remedy. safety company. We believe we are uniquely positioned to further improve our technology and product offerings to bring even higher levels of safety to the medical community." First Quarter Results Sales For the three months ended March 31, 2002, sales were $104.4 million, an increase of $5.5 million, or 6 percent (8 percent in constant currency), over the prior year. North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. sales increased $5.2 million, or 8 percent, and International sales increased $0.3 million, or 1 percent (6 percent in constant currency), compared with the prior year. The North America sales increase is due to higher volumes of both drug infusion INFUSION, med. jur. A pharmaceutical operation, which consists in pouring a hot or cold fluid upon a substance, whose medical properties it is desired to extract. Infusion is also used for the product of this operation. Although infusion differs from decoction, (q.v. instruments and disposable disposable Nursing adjective Referring to that which is discarded or disposed of noun An item used in health care-related Pt contact which is discarded after use–eg masks, gloves, gowns, needles, paper products, syringes, wipes. See Biohazardous waste. administration sets, resulting in an increase of $5.9 million over prior year drug infusion and service revenue. Contributing to the North America increase was $1.8 million in sales of our new MEDLEY med·ley n. pl. med·leys 1. An often jumbled assortment; a mixture: "That night he dreamed he was traveling in a foreign country, only it seemed to be a medley of all the countries he'd ever been to and (TM) Medication Safety System, which product was not available for sale during the first quarter of 2001. These increases were partially offset by lower volumes of patient monitoring instruments and disposables, resulting in a net decrease of $0.7 million from the prior year patient monitoring sales. The International sales increase was due to higher volumes of non-dedicated disposable administration sets and large volume pumps offset by lower syringe syringe /sy·ringe/ (si-rinj´) (sir´inj) an instrument for injecting liquids into or withdrawing them from any vessel or cavity. pump volumes and revenue compared with the prior year. International sales in the prior year first quarter were very strong due to additional National Health System funding in the United Kingdom during that period, and sales continue to grow from this higher base. The increase in large volume pump sales for the International business is primarily attributed to the Asena Asena is the name of a female wolf in Turkic mythology. It is associated with a Göktürk ethnogenic myth "full of shamanic symbolism".[1] The legend runs as follows. (TM) GW, a new product launched in late 2001. Gross Profit Gross profit increased $3.9 million, or 8 percent, during the quarter ended March 31, 2002, compared with the same quarter last year. The gross margin percentage increased to 49.5 percent in the first quarter of 2002, from 48.4 percent in the first quarter of 2001. The improved margin percentage was due to increased volume of disposables (which have higher margins than instruments) and to lower product costs resulting from continuing manufacturing efficiencies and improvements, including the benefits from higher production volumes and related favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be . Selling and Marketing Expenses Selling and marketing expense increased $2.7 million, or 15 percent, during the quarter ended March 31, 2002, compared with the same period in 2001, primarily due to increased selling costs resulting from higher sales volume in the first quarter of 2002 compared with the prior year and to higher sales and marketing costs related to increased personnel and related activities supporting the North America launch of the MEDLEY Medication Safety System. These increases were partially offset by reductions in our distribution costs distribution costs distribute npl → Vertriebskosten pl over the prior year. As a percentage of sales, selling and marketing expenses increased to 20.5 percent from 18.9 percent for the first quarter of 2001. General and Administrative Expenses General and administrative expense decreased $2.2 million, or 19 percent, during the quarter ended March 31, 2002, compared with the same period in the prior year. This decrease is due to a $2.3 million reduction in amortization expense resulting from our adopting Statement of Financial Accounting Standard No. 142, "Goodwill and Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. " and No. 141, "Business Combinations," effective Jan. 1, 2002, under which our goodwill and certain other amortization expense ceased. Inflationary in·fla·tion·ar·y adj. Of, associated with, or tending to cause inflation: inflationary prices; inflationary policies. Adj. 1. cost increases in general and administrative expenses were generally offset by lower bonus accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. . General and administrative expense decreased from 12.1 percent of sales during the first quarter of 2001 to 9.3 percent of sales for the first quarter of 2002. Had the newly adopted accounting standards been in effect a year ago, general and administrative expense for 2001 would have been 9.7 percent of sales. Research and Development Expenses Research and development expense decreased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.5 million, or 8 percent, during the quarter ended March 31, 2002, primarily due to higher spending requirements for outside consulting in the prior year for the limited North America launch of the MEDLEY Medication Safety System in 2001. Research and development spending in the International business also decreased in 2002 as a result of the launch of Asena GW, which accounted for significant costs in the prior year. Research and development expense decreased to 5.9 percent of sales for the first quarter of 2002, compared with 6.8 percent of sales for the first quarter of 2001. Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and Other Non-Recurring Items We recorded a non-recurring benefit of $1.1 million during the first quarter of 2002 for an insurance settlement. The settlement related to damages and losses incurred at one of our disposable products Disposable products are items that are not intended by the manufacturer to be reused more than once or a few times as compared to more permanent serviceable and reusable items. Some products that have disposable versions are:
Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. in 1993 as a result of flooding Refers to various denial-of-service techniques that saturate a critical resource, leading either to system failure or to the exclusion of legitimate access. See e-mail bombing, Fraggle attack, smurf attack and SYN-flood attack. . The contingency contingency n. an event that might not occur. related to the insurance settlement was resolved in the first quarter of 2002, when we received proceeds of $1.0 million during the quarter and notification of an additional payment due of $0.1 million, which was received during April 2002. During the first quarter of 2002, we initiated a plan to restructure our Central European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. technical services. In this connection, we recorded a charge of $0.5 million which included $0.4 million of severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs for 21 positions affected by the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of the German operation and $0.1 million related to lease termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. . The restructuring is anticipated to be completed during the third quarter of 2002. As of March 31, 2002, no payments have been made related to the restructuring. Restructuring and other non-recurring charges of $5.7 million in the first quarter of 2001 included $2.4 million of legal, advisory and consultant expenses related to obtaining an amendment to the ALARIS Medical Systems bank credit agreement. This amendment was completed in April 2001. We also recorded $3.3 million in restructuring and other non-recurring charges during the first quarter of 2001. These activities related to streamlining of operations in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. business and resulted in the elimination of 71 positions. The restructuring and other non-recurring charges in the first quarter of 2001 were composed of severance and related benefits of $2.8 million and consulting fees of approximately $0.5 million. Adjusted EBITDA for the first quarter of 2002 and 2001 excludes the non-recurring items. Interest Expense Interest expense increased $0.4 million, or 3 percent, during the quarter ended March 31, 2002 compared with the same period in the prior year. The increase in interest is due to increased accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the on our 11-1/8 percent senior discount notes. Interest Income Interest income decreased $0.4 million during the quarter ended March 31, 2002 compared with the same quarter in 2001 due to lower interest rates earned on cash balances in 2002 compared with 2001. Other, net Other expense decreased $0.4 million during the quarter ended March 31, 2002 compared with the same quarter in the prior year due to a decrease in foreign currency transaction losses of $0.9 million. During the first quarter of 2001, we received $0.5 million of other income relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the sale of a tradename. We did not receive comparable income in the current year, which partially offset the decrease from foreign currency transaction losses. Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. During the third quarter of 2000, we sold our Instromedix(R) division to Card Guard Technologies Inc. ("Card Guard"). The agreement with Card Guard provided that we would assist the buyer in setting up a fully independent headquarters and manufacturing facility. During the first quarter of 2001, we completed our obligations related to the agreement and recorded a gain of $3.7 million, net of taxes. Earnings Per Share The per share earnings were $0.01 for the quarter ended March 31, 2002 compared with a net loss per share of $0.04 in the same quarter last year. The earnings were favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. affected by two items this quarter. The first is a benefit from the mandated accounting change for amortizing goodwill and other intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. previously discussed by the company. First quarter 2002 earnings (as well as subsequent quarters) are $0.03 per share higher than they would have been if the change were not required. The second item is a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. insurance settlement which added about $0.01 to earnings per share this quarter. Financial Position ALARIS Medical reported total debt of $513.6 million at March 31, 2002, compared with $525.2 million at Dec. 31, 2001. The current portion of long-term debt Current Portion Of Long-Term Debt A portion of the balance sheet that represents the total amount of long-term debt that must be paid within the next year. The balance sheet has a liability section, which is broken down into long-term and current debt. was reduced during the quarter from $15.9 million at Dec. 31, 2001 to zero at March 31, 2002 when the company retired at maturity on Jan. 15, 2002 its 7-1/4 percent convertible subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before . Cash provided by operations was $15.5 million for the quarter. The company had $47.9 million in cash at March 31, 2002, compared with $51.2 million at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2001. Recent Key Developments -- The MEDLEY Medication Safety System with its proprietary Guardrails(TM) Safety Software was recently featured at a press conference conducted by Clarian Health Partners in Indianapolis. The Clarian Health System is the ninth largest health care system in the United States and a world leader in defining and implementing safer medication practices. Methodist Hospital of Indianapolis, one of the Clarian Health Partners, is the first facility in the United States to implement the MEDLEY Medication Safety System with Guardrails Safety Software on a hospital-wide (or "whole house") basis. Methodist Hospital reported that its whole house implementation was accomplished in less than one day and that tangible patient safety benefits were seen on the first day of use. -- We announced on April 23 an agreement to add a new product category -- Medication Safety Technologies -- to the company's Novation Infusion Agreement. At the heart of these new technologies is the Guardrails Safety Software, a proprietary application that resides inside the infusion therapy device. The Guardrails Software will allow institutions to program more than 1,000 safety limits and can be tailored by the hospital's medical staff to meet specific hospital needs, such as different patient types, different disease states and different departments of the hospital. The MEDLEY Medication Safety System is a modular device with a new safety-enabling platform that incorporates the Guardrails Safety Software. While the Guardrails Software allows hospitals to implement their safety standards for patients with differing medication requirements, it is the MEDLEY system that brings those standards to the patient's bedside. The Guardrails product will also be available later this year for approximately 50,000 additional ALARIS infusion instruments already in service. -- We announced the full global market release of the SmartSite(R) Plus valve, the newest addition to the SmartSite needle-free system. The SmartSite Plus valve features a positive displacement to help clear and maintain patients' catheters. Upon removal of a syringe, the SmartSite Plus valve automatically displaces a positive bolus helping to prevent blood backflow into the catheter lumen. Blood backflow is a major cause of catheter occlusion, which is associated with increased hospital stays and increased expense. Outlook We are currently anticipating sales growth of 8-10 percent for second quarter from the $98.5 million reported for the second quarter last year. This level of growth depends upon the orders and shipments of our recently introduced MEDLEY Medication Safety Systems. The full North America release of this product occurred in December December: see month. of 2001 and the sales cycle for large capital purchases by hospitals has historically been nine to 12 months. We are working to significantly reduce the length of the historical sales cycle using new sales strategies and the significant potential of this product for improved patient safety. Based on this anticipated level of sales, we are currently forecasting slight positive net income with EBITDA growth of 12 percent to 15 percent over the $18.3 million reported for the second quarter of last year. Despite plans to ramp-up spending in research and development from its first quarter level, second quarter EBITDA is currently anticipated to approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. that of the first quarter. For full year 2002, we continue to anticipate sales growth of approximately 9 percent versus 2001 and adjusted EBITDA growth of slightly more. Full year 2002 adjusted EBITDA is still forecasted to be approximately $90 million. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with new accounting requirements, amortization expense is now lower than previously estimated, which has no effect on EBITDA but increases our estimate of full year earnings to $0.07-$0.08 per share. ALARIS Medical Inc., through its wholly owned operating company operating company A business that engages in transactions with outsiders. , ALARIS Medical Systems Inc., is a leading developer, manufacturer and provider of integrated intravenous intravenous /in·tra·ve·nous/ (-ve´nus) within a vein or veins.intrave´nously in·tra·ve·nous adj. Abbr. IV Within or administered into a vein. infusion therapy and patient monitoring instruments and related disposables, accessories and services. ALARIS Medical's primary brands, ALARIS(R), IMED IMED International Medical Education Directory (R) and IVAC IVAC Islington Voluntary Action Council (England, UK) IVAC Insert Valid Access Card (satellite TV hacking) IVAC International Video & Audio Convention IVAC Idle Air Control Valve (R), are recognized throughout the world. ALARIS Medical's products are distributed in more than 120 countries worldwide. In addition to its San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. world headquarters and manufacturing facility, ALARIS Medical also operates manufacturing facilities in Creedmoor Creedmoor is the name of a number of places in the United States of America:
This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as defined in the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Persons reading this release are cautioned that such forward-looking statements involve risks and uncertainties, including the effect of legislative and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes affecting the health care industry, the potential of increased levels of competition, technological changes, the dependence of ALARIS Medical upon the success of new products (including its proprietary Guardrails(TM) Safety Software and the MEDLEY(TM) Medication Safety System) and ongoing research and development efforts including obtaining regulatory approvals, restrictions contained in the instruments governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. the Company's indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. , and the significant leverage to which the Company is subject. Such risk factors are detailed in the Securities and Exchange Commission filings of ALARIS Medical, Inc. and ALARIS Medical Systems, Inc., including Forms 10-K for the year ended December 31, 2001, and other filings. The Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments.
ALARIS MEDICAL INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
(Dollar and share amounts in thousands, except per share data)
Three Months Ended
March 31,
-------------------------------
2002 2001
----------- -----------
North America sales $ 69,446 $ 64,213
International sales 34,954 34,676
----------- -----------
Total sales 104,400 98,889
Cost of sales 52,688 51,059
----------- -----------
Gross profit 51,712 47,830
----------- -----------
Selling and marketing expenses 21,436 18,694
General and administrative expenses 9,716 11,948
Research and development expenses 6,202 6,731
Restructuring and other
non-recurring items (585) 5,743
----------- -----------
Total operating expenses 36,769 43,116
----------- -----------
Interest income from sales-type
capital leases 1,189 1,276
----------- -----------
Income from operations 16,132 5,990
----------- -----------
Other income (expenses):
Interest income 213 635
Interest expense (14,427) (13,997)
Other, net (494) (939)
----------- -----------
Total other expense (14,708) (14,301)
----------- -----------
Income (loss) before income taxes 1,424 (8,311)
Provision for (benefit from)
income taxes 570 (2,100)
----------- -----------
Income (loss) from continuing
operations 854 (6,211)
----------- -----------
Discontinued operations:
Gain on disposal of business
(net of applicable income
tax expense of $2,492) -- 3,737
----------- -----------
Net income (loss) $ 854 $ (2,474)
=========== ===========
Income (loss) per common share
from continuing operations $ 0.01 $ (0.10)
=========== ===========
Income per common share from
discontinued operations $ -- $ 0.06
=========== ===========
Net income (loss) per common
share, basic and diluted $ 0.01 $ (0.04)
=========== ===========
Weighted average common shares
outstanding, basic 59,192 58,845
=========== ===========
Weighted average common shares
outstanding, diluted 60,599 58,845
=========== ===========
ALARIS MEDICAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollar and share amounts in thousands, except per share data)
ASSETS
March 31, Dec. 31,
2002 2001
----------- -----------
(Unaudited)
Current assets:
Cash and cash equivalents $ 47,913 $ 51,200
Receivables, net 65,764 67,893
Inventories 69,245 69,408
Prepaid expenses and other
current assets 32,288 33,815
----------- -----------
Total current assets 215,210 222,316
Net investment in sales-type capital
leases, less current portion 22,852 24,225
Property, plant and equipment, net 55,997 57,607
Other non-current assets 30,457 31,201
Goodwill, net 143,984 143,984
Other intangible assets, net 91,805 92,394
----------- -----------
$ 560,305 $ 571,727
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ -- $ 15,969
Accounts payable 23,577 23,859
Accrued expenses and other current
liabilities 51,198 53,120
----------- -----------
Total current liabilities 74,775 92,948
----------- -----------
Long-term debt 513,648 509,258
Other non-current liabilities 16,740 16,244
----------- -----------
Total non-current liabilities 530,388 525,502
----------- -----------
Contingent liabilities and
commitments -- --
Stockholders' equity:
Non-redeemable preferred stock,
authorized 9,000 shares, issued
and outstanding: none -- --
Common stock, authorized 75,000
shares at $0.01 par value; issued
59,723 and 59,407 shares at
March 31, 2002 and December 31,
2001, respectively 597 594
Capital in excess of par value 150,257 149,325
Accumulated deficit (184,734) (185,588)
Treasury stock, at cost, 453
shares issued at March 31, 2002
and December 31, 2001 (2,027) (2,027)
Accumulated other comprehensive
loss (8,951) (9,027)
----------- -----------
Total stockholders' equity (44,858) (46,723)
----------- -----------
$ 560,305 $ 571,727
=========== ===========
ALARIS MEDICAL, INC.
SCHEDULE OF SUPPLEMENTAL FINANCIAL DATA (Unaudited)
Sales Data
Three Months Ended
March 31,
-------------------------------
2002 2001
----------- -----------
(Dollars in millions)
North America Business Unit
Infusion Instruments $ 12.5 $ 9.4
Dedicated Disposables 33.8 33.3
Other Disposables and Service 17.0 14.7
----------- -----------
Subtotal 63.3 57.4
Patient Monitoring 6.1 6.8
----------- -----------
North America Business Unit Total $ 69.4 $ 64.2
----------- -----------
International Business Unit
Infusion Instruments $ 12.5 $ 12.9
Dedicated Disposables 17.1 17.5
Other Disposables and Service 4.2 3.1
----------- -----------
Subtotal 33.8 33.5
Patient Monitoring 1.2 1.2
----------- -----------
International Business Unit Total $ 35.0 $ 34.7
----------- -----------
ALARIS Medical, Inc. Total $ 104.4 $ 98.9
=========== ===========
Computation of Adjusted EBITDA
Three Months Ended
March 31,
-------------------------------
2002 2001
----------- -----------
(Dollars in thousands)
Income from operations $ 16,132 $ 5,990
Depreciation and amortization 5,712 7,750
Restructuring and other
non-recurring items (585) 5,743
----------- -----------
Adjusted EBITDA $ 21,259 $ 19,483
=========== ===========
Adjusted EBITDA represents income before interest, taxes, other, net, restructuring, other non-recurring items, discontinued operations, and depreciation and amortization. Adjusted EBITDA does not represent net income or cash flows from operations, as these terms are defined under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , and should not be considered as an alternative to net income as an indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of our operating performance or to cash flows as a measure of liquidity. ALARIS Medical has included information concerning adjusted EBITDA herein because it uses such information as a measure of assessing cash flows and ability to service debt and understands that such information is used by certain investors as one measure of an issuer's ability to service debt. Restructuring and other one-time items are excluded from adjusted EBITDA as ALARIS Medical believes that the inclusion of these items would not be helpful to an investor's understanding of ALARIS Medical's ability to service debt. ALARIS Medical's computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of adjusted EBITDA may not be comparable to similarly titled measures of other companies. |
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