American Medical Systems Reports Record $49.1 Million Sales with 33 Percent Net Income Growth in Second Quarter.MINNEAPOLIS Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. -- Second Half Revenues, Aided by TherMatrx Acquisition, Expected to Increase by Over 25% American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Medical Systems Holdings Inc. (Nasdaq:AMMD AMMD Aerodynamic Mass Median Diameter ) reported another sales record of $49.1 million in the second quarter of 2004, a 16 percent increase over sales of $42.2 million in the comparable quarter of 2003 (14 percent without gain from currency exchange rate changes). Net income in the quarter was $8.4 million, or $0.24 per share, up 33 percent from $6.3 million, or $0.19 per share, in the comparable quarter of 2003. Sales for the first six months of 2004 were $96.4 million, up 18% from sales of $81.6 million in 2003 (16 percent without gain from currency exchange rate changes). Net income in the six month period totaled $16.5 million, or $0.47 per share, up 40% from $11.8 million, or $0.35 per share in 2003. Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. W. Kohrs, Chairman and Chief Executive Officer of American Medical Systems, commented, "Our worldwide ability to leverage across our broad product portfolio was again clear in the second quarter. Women's continence continence /con·ti·nence/ (kon´tin-ens) the ability to control natural impulses.con´tinent con·ti·nence n. 1. Self-restraint; moderation. 2. products led our growth at 52% above 2003's comparable period. Male continence continued its momentum with a 17% increase in the quarter. Erectile erectile /erec·tile/ (e-rek´til) capable of erection. e·rec·tile adj. 1. Of or relating to tissue capable of filling with blood and becoming rigid. 2. restoration revenue was even with last year's second quarter, but is poised to resume growth following the FDA's clearance CLEARANCE, com. law. The name of a certificate given by the collector of a port, in which is stated the master or commander (naming him) of a ship or vessel named and described, bound for a port, named, and having on board goods described, has entered and cleared his ship or vessel of our AMS AMS - Andrew Message System 700 Tactile tactile /tac·tile/ (tak´til) pertaining to touch. tac·tile adj. 1. Perceptible to the sense of touch; tangible. 2. Used for feeling. 3. Pump(TM) announced earlier this week. Our TherMatrx acquisition closed early in the third quarter, thereby giving us another growth engine, and providing us the opportunity to work directly with our urology urology Medical specialty dealing with the urinary system and male reproductive organs. It traces its origin to medieval lithologists, itinerant healers who specialized in surgical removal of bladder stones. customers in meeting the needs of the high-growth, in-office benign prostatic hyperplasia benign prostatic hyperplasia n. Abbr. BPH A nonmalignant enlargement of the prostate gland commonly occurring in men after the age of 50, and sometimes leading to compression of the urethra and obstruction of the flow of urine. market." Outlook Inclusive of inclusive of prep. Taking into consideration or account; including. its recently closed acquisition of TherMatrx, AMS expects 2004 revenue to be in the range of $205 to $210 million, generating EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $0.95 to $0.99. For the third quarter of 2004, the Company expects revenue to be in the range of $49 to $51 million. EPS for the third quarter is anticipated in the range of $0.22 to $0.24. Earnings Call Information American Medical Systems will host a conference call today at 5:00 p.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ) to discuss its second quarter 2004 results. To access the call within the U.S., dial (800) 309-5451, outside the U.S., (706) 679-3605. A live web cast of the call will be available through the Company's corporate website at www.AmericanMedicalSystems.com and available for replay two hours after the completion of the call. About American Medical Systems American Medical Systems, headquartered in Minnetonka, Minnesota For other uses, see Minnetonka (disambiguation). Minnetonka is a suburban community located eight miles west of Minneapolis in Hennepin County. Its 2000 population of 51,480 makes it the fourteenth largest city in Minnesota. is a diversified diversified (di·verˑ·s supplier of medical devices and procedures to cure erectile dysfunction Erectile Dysfunction Definition Erectile dysfunction (ED), formerly known as impotence, is the inability to achieve or maintain an erection long enough to engage in sexual intercourse. , benign prostatic hyperplasia, incontinence incontinence Inability to control excretion. Starting and stopping urination relies on normal function in pelvic and abdominal muscles, diaphragm, and control nerves. Babies' nervous systems are too immature for urinary control. Later incontinence may reflect disorders (e.g. , and other pelvic pelvic /pel·vic/ (pel´vik) pertaining to the pelvis. pel·vic adj. Of, relating to, or near the pelvis. disorders A
the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time number of people seeking treatment has increased markedly as a result of longer lives, higher quality-of-life expectations and greater awareness of new treatment alternatives. American Medical Systems' products reduce or eliminate the incapacitating in·ca·pac·i·tate tr.v. in·ca·pac·i·tat·ed, in·ca·pac·i·tat·ing, in·ca·pac·i·tates 1. To deprive of strength or ability; disable. 2. To make legally ineligible; disqualify. effects of these diseases, often through minimally invasive invasive /in·va·sive/ (-siv) 1. having the quality of invasiveness. 2. involving puncture of the skin or insertion of an instrument or foreign material into the body; said of diagnostic techniques. therapies. The Company's products were used to treat over 100,000 patients in 54 countries during the last year. More information about the Company and its products may be found at www.AmericanMedicalSystems.com. Forward Looking Statements Statements about the Company's future product availability and sales are 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. subject to risks and uncertainties including the timing and success of new product introductions, physician acceptance, endorsement A signature on a Commercial Paper or document. An endorsement on a negotiable instrument, such as a check or a promissory note, has the effect of transferring all the rights represented by the instrument to another individual. , and use of the Company's products, competitor activities, changes in reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. rates, and potential product recalls. These risks and others are more fully described in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended January January: see month. 3, 2004, and its other SEC filings. Actual results may differ materially from anticipated results.
American Medical Systems Holdings, Inc.
Statements of Operations
(In thousands, except per share data)
Three Months Ended Six Months Ended
------------------- -----------------
July 3, June 28, July 3, June 28,
2004 2003 2004 2003
--------- --------- -------- --------
Net sales $49,093 $42,224 $96,406 $81,571
Cost of sales 9,047 7,381 17,977 14,324
--------- --------- -------- --------
Gross profit 40,046 34,843 78,429 67,247
Operating expenses
Marketing and selling 17,250 16,984 33,743 31,781
Research and development 3,577 3,483 7,161 7,274
General and administrative 5,210 3,845 10,086 7,915
Amortization of intangibles 1,058 1,039 2,119 2,104
--------- --------- -------- --------
Total operating expenses 27,095 25,351 53,109 49,074
Operating income 12,951 9,492 25,320 18,173
Other income (expense)
Royalty income 430 687 921 1,464
Interest income 172 112 310 242
Interest expense (248) (698) (449) (1,424)
Other income (expense) (31) 286 (187) 321
--------- --------- -------- --------
Total other income (expense) 323 387 595 603
Income before income taxes 13,274 9,879 25,915 18,776
Provision for income taxes 4,845 3,542 9,459 6,985
--------- --------- -------- --------
Net income $8,429 $6,337 $16,456 $11,791
========= ========= ======== ========
Net income per share
Basic $0.25 $0.19 $0.49 $0.36
Diluted $0.24 $0.19 $0.47 $0.35
Weighted average common shares
used in calculation
Basic 33,384 32,800 33,313 32,673
Diluted 35,037 34,077 35,004 34,057
American Medical Systems Holdings, Inc.
Condensed Balance Sheets
(In thousands)
July 3, January 3,
2004 2004
--------- ----------
Assets
Current assets
Cash and short-term investments $77,240 $58,953
Accounts receivable, net 36,922 33,507
Inventories 17,600 18,402
Deferred taxes and other current assets 8,030 8,533
--------- ----------
Total current assets 139,792 119,395
Property, plant and equipment, net 23,471 25,489
Goodwill and intangibles, net 114,204 116,455
Deferred taxes and other assets 18,043 17,988
--------- ----------
Total assets $295,510 $279,327
========= ==========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $3,648 $4,621
Accrued liabilities and taxes 17,068 17,996
Current portion of notes payable 7,363 7,159
--------- ----------
Total current liabilities 28,079 29,776
Long-term notes payable 5,523 9,205
Stockholders' equity 261,908 240,346
--------- ----------
Total liabilities and stockholders' equity $295,510 $279,327
========= ==========
American Medical Systems Holdings, Inc.
Condensed Statements of Cash Flows
(In thousands)
Six Months Ended
-------------------
July 3, June 28,
2004 2003
--------- ---------
Cash flows from operating activities
Net income $16,456 $11,791
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 3,466 2,865
Loss on asset disposals (5) -
Amortization of intangibles, including
deferred financing costs 2,231 2,239
Non-cash deferred compensation 3 88
Income tax benefit related to stock option
plans 1,294 892
Change in net deferred taxes (618) (992)
Changes in operating assets and liabilities (4,128) (5,155)
--------- ---------
Net cash provided by operating activities 18,699 11,728
Cash flows from investing activities
Purchase of property, plant and equipment ($1,443) ($1,599)
Purchase of businesses, net of cash acquired - (43,069)
--------- ---------
Net cash used in investing activities (1,443) (44,668)
Cash flows from financing activities
Issuance of common stock $4,590 $1,269
Payments on long-term debt (3,478) (3,319)
--------- ---------
Net cash provided by (used in) financing
activities 1,112 (2,050)
Effect of exchange rates (81) (40)
--------- ---------
Net increase (decrease) in cash and cash
equivalents $18,287 ($35,030)
========= =========
American Medical Systems Holdings, Inc.
Selected Sales Information
(In thousands)
Three Months Ended Six Months Ended
------------------- -----------------
(in thousands) July 3, June 28, July 3, June 28,
2004 2003 2004 2003
--------- -------- -------- --------
Sales
Product line
Men's health
Erectile restoration $17,919 $17,966 $35,384 $35,818
Continence 12,266 10,471 24,432 20,503
Prostate treatment 1,089 1,312 2,255 2,511
--------- -------- -------- --------
Total men's health 31,274 29,749 62,071 58,832
Women's health 17,819 12,475 34,335 22,739
--------- -------- -------- --------
Total $49,093 $42,224 $96,406 $81,571
========= ======== ======== ========
Geography
United States $37,643 $33,919 $74,241 $66,266
Outside United States 11,450 8,305 22,165 15,305
--------- -------- -------- --------
Total $49,093 $42,224 $96,406 $81,571
========= ======== ======== ========
Percent of total sales
Product line
Men's health
Erectile restoration 37% 43% 37% 44%
Continence 25% 25% 25% 25%
Prostate treatment 2% 3% 2% 3%
--------- -------- -------- --------
Total men's health 64% 70% 64% 72%
Women's health 36% 30% 36% 28%
--------- -------- -------- --------
Total 100% 100% 100% 100%
========= ======== ======== ========
Geography
United States 77% 80% 77% 81%
Outside United States 23% 20% 23% 19%
--------- -------- -------- --------
Total 100% 100% 100% 100%
========= ======== ======== ========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion