Haemonetics Meets Company Expectations for Improved Profits and Earnings Per Share.BRAINTREE Braintree, town and district, England Braintree, town (1991 pop. 30,975) and district, Essex, E England, between the Pant (Blackwater) and Brain river valleys. It has textile, plastic, and metal-product industries. , Mass.--(BW HealthWire)--Jan. 27, 1998--Haemonetics Corporation (NYSE NYSE See: New York Stock Exchange :HAE) reported revenues of $75.8 mil An Internet address domain name for a military agency. See Internet address. (networking) mil - The top-level domain for entities affiliated with US armed forces. . for the third quarter of its fiscal year ending March 28, 1998. Before a one time restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. ( $25.2 mil. ) earnings per share were $0.18 for the quarter. 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). Program Ahead of Plan: The Company is currently ahead of schedule in implementing its restructuring program outlined in its November November: see month. 12, 1997 press release. The Company believes that continuing expense reductions of $2.5 to $3.0 mil. per quarter are achievable, as originally communicated. Profits Improved Q3 compared to Q2 FYE FYE For Your Entertainment FYE First Year Experience FYE Fiscal Year End FYE Funding Your Education FYE For Your Eyes (CSD-TV magazine) FYE For Your Enjoyment FYE Full Year Effect FYE First Year Enrichment FYE For Your Edification 98: Before a one time restructuring charge, Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased $1.2 mil., Net Income increased $0.7 mil. Earnings per share increased from $0.15 to $0.18. These results meet the outlook the Company presented in its restructuring program. Base Business Profit Margins Improve Over Q2 FYE 98: The Gross Profit Margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. of the base business improved from 48% to 50%. This improvement is due equally to the restructuring program and ongoing reductions in manufacturing variances. A detailed chart showing BASE and Blood Bank Management Services (`BBMS') breakdown of the business (before one time restructuring charge) is on page 3 of 3 of this press release. BBMS Business Improvements Over Q2 FYE 98: The BBMS business continues to grow and showed gross profit for the first time. Losses were reduced compared to Q2 FYE 98 and Gross Profit Margin turned positive. The Company collected and provided 30% more blood products this quarter with no expansion in its BBMS organization. Unlike other blood banks, the Company did not have blood shortages in any of the areas it serves. Debt Decreases: Net debt decreased from $66.9 mil. in Q2 FYE 98 to $65.4 mil. at the end of Q3 FYE 98. This continued to improve the balance sheet drter of last year and would have grown 5% if the dollar had not strengthened. Earnings per share this quarter were $0.08 lower than Q3 FYE 97 due to the strengthening of the dollar. Growth in Disposables Revenues: Worldwide disposaf 3. Haemonetics Haemonetics® Cell Saver 5, plasma separator Surgery A device that separates plasma from blood, returning Pt RBCs to the body, ↓ need for transfusions. See Blood salvage. is engaged in the manufacture of automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. blood processing systems and blood products. The Company's systems and services address four important medical markets: surgical blood savage, blood component collec Summary For Third Quarter and Three Quarters of FYE 98 (Data Unaudited, in thousands 12-27-97 12-27-97 12-28-96 % 35,497 35,497 38,082 Taxes (6,288) Operating income (23.6%) 9.7% 13.5% Income before taxes (23.7%) 9.5% 14.1% Net income (15.4%) 6.2% 9.2% Nine Months Ending 12-27-97 12-27-97 12-28-96 % Profit and Loss: w/ charge w/o charge Net revenues 234,723 $234,723 $226,482 4 (2) S,G & A 69,964 69,964 68,584 2 Total operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. restructuring exp exp abbr. 1. exponent 2. exponential 25,200 0 0 Operating income (2,142) 23,058 37,386 (38) Interest expense (2,556) (2,556) (1,281) 100 Interest income 2,958 2,958 2,099 41 Other income, net (53) (53) 383 (114) Income before taxes (1,793) 23,407 38,587 (39) Taxes (628) 8,192 13,496 (39) Net income ($1,165) $15,215 $25,091 (39) Net income per share ($0.04) $ 0.57 $ 0.91 (37) Weighted avg no. of shares 26,598 26,598 27,580 Profit Margins: Gross profit 45.6% 45.6% 53.1% Operating income (0.9%) 9.8% 16.5% Income before taxes (0.8%) 10.0% 17.0% Net income (0.5%) 6.5% 11.1% Period ending BALANCE SHEET: 12-27-97 3-29-97 Assets Cash $7,330 $8,302 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , net 78,407 72,199 Inventories 60,781 55,090 Other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. 39,522 32,078 Total current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. 186,040 167,669 Net PP&E 107,720 103,610 Other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. 63,906 52,267 Total assets $357,666 $323,546 Period ending 12-27-97 3-29-97 Liabilities S/T S/T Such That S/T Self-Titled (also seen as ST) S/T Short Ton(s) debt.& curr. maturities $22,576 $19,511 Other current liabilities Other Current Liabilities A balance sheet entry used by companies to group together current liabilities that are not assigned to common liabilities such as debt obligations or accounts payable. 49,583 54,113 Total current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. 72,159 73,624 Def'd income taxes 12,580 12,770 Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. 50,143 10,015 Other long-term liabilities Other Long-Term Liabilities A balance sheet item that includes obligations that do not currently require interest payments. Notes: This would include items such as remaining leases, future employee benefits and deferred taxes. 3,721 1,863 Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. 219,063 225,274 Total liabilities & equity $357,666 $323,546 Third Quarter % % Nine Months ending % % Sales Analysis: (w/o (w/o FX FX impact) impact) 12-27-97 12-28-96 12-27-97 12-28-96 Domestic $27,035 $29,531 (8) (8) $85,641 $84,648 1 1 International 48,747 47,019 4 14 149,082 141,834 5 15 Disposables 68,237 67,756 1 7 208,023 198,668 5 11 Equipment 7,545 8,794 (14) (10) 26,700 27,814 (4) 0 Surgical 15,241 18,353 (17) (13) 48,130 54,566 (12) (9) Blood Bank 33,302 31,352 6 15 96,204 95,750 0 6 Plasma 21,936 24,506 (10) (8) 78,150 72,174 8 13 Services 5,303 2,339 127 127 12,239 3,992 207 207 Net Revenues 75,782 76,550 (1) 5 234,723 226,482 4 9 -0- Haemonetics Corporation Financial Summary 1997-8 P and L Summary Showing Blood Bank Management Services (Quarterly Data Unaudited, Yearly Data Audited, in thousands, except per share data) EXCLUDES NON-RECURRING RESTRUCTURING CHARGE IN Q3-FY98 Quarter 1 FYE 98 Quarter 2 FYE 98 ending June 28, 1997 ending Sept. 27, 1997 Base BBMS Consol. Base BBMS Consol. Profit and Loss: Net revenues 79,485 2,843 82,328 72,520 4,093 76,613 Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold 42,372 2,894 45,266 37,745 4,332 42,077 Gross profit 37,113 (51) 37,062 34,775 (239) 34,536 R & D 4,924 80 5,004 4,665 80 4,745 S,G & A 20,777 1,696 22,473 21,427 2,233 23,660 Total operating exp. 25,701 1,776 27,477 26,092 2,313 28,405 Operating income 11,412 (1,827) 9,585 8,683 (2,552) 6,131 Interest expense (596) 0 (596) (872) 0 (872) Interest income 950 0 950 1,075 0 1,075 Other income, net 32 0 32 (133) 0 (133) Income before taxes 11,798 (1,827) 9,971 8,753 (2,552) 6,201 Taxes 4,129 (639) 3,490 3,063 (893) 2,170 Net income 7,669 (1,188) 6,481 5,690 (1,659) 4,031 Net income per share $0.285 ($0.044) $0.240 $0.214 ($0.062) $0.151 Weighted avg no. of shares 26,954 26,954 26,954 26,620 26,620 26,620 Profit Margins: Gross profit 46.7% (1.8%) 45.0% 48.0% (5.8%) 45.1% Operating income 14.4% (64.3%) 11.6% 12.0% (62.4%) 8.0% Income before taxes 14.8% (64.3%) 12.1% 12.1% (62.4%) 8.1% Net income 9.6% (41.8%) 7.9% 7.8% (40.5%) 5.3% Quarter 3 FYE 98 FY98 Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. ending Dec. 27, 1997 ending Mar. 28, 1998 Base BBMS Consol. Base BBMS Consol. Profit and Loss: Net revenues 70,479 5,303 75,782 222,484 12,239 234,723 Cost of goods sold 35,077 5,208 40,285 115,194 12,434 127,628 Gross profit 35,402 95 35,497 107,290 (195) 107,095 R & D 4,244 80 4,324 13,833 240 14,073 S,G & A 21,485 2,346 23,831 63,689 6,275 69,964 Total operating exp. 25,729 2,426 28,155 77,522 6,515 84,037 Operating income 9,673 (2,331) 7,342 29,768 (6,710) 23,058 Interest expense (1,088) 0 (1,088) (2,556) 0 (2,556) Interest income 933 0 933 2,958 0 2,958 Other income, net 48 0 48 (53) 0 (53) Income before taxes 9,566 (2,331) 7,235 30,117 (6,710) 23,407 Taxes 3,348 (816) 2,532 10,540 (2,348) 8,192 Net income 6,218 (1,515) 4,703 19,577 (4,362) 15,215 Net income per share $0.234($0.057) $0.177 $0.736 ($0.164) $0.572 Weighted avg no. of shares 26,528 26,528 26,528 26,598 26,598 26,598 Profit Margins: Gross profit 50.2% 1.8% 46.8% 48.2% (1.6%) 45.6% Operating income 13.7% (44.0%) 9.7% 13.4% (54.8%) 9.8% Income before taxes 13.6% (44.0%) 9.5% 13.5% (54.8%) 10.0% Net income 8.8% (28.6%) 6.2% 8.8% (35.6%) 6.5% Quarter 1 Quarter 2 Quarter 3 FYE 98 FYE 98 FYE 98 ending June ending Sept. ending Dec. 28, 1997 27, 1997 27, 1997 Consol. Consol. Consol. Balance Sheet: Assets Cash $5,622 $6,640 $7,330 Accounts receivable, net 77,884 78,434 78,407 Inventories 59,012 65,145 60,781 Other current assets 34,499 34,689 39,522 Total current assets 177,017 184,908 186,040 Net PP&E 106,748 112,024 107,720 Other Assets 63,825 69,941 63,906 Total assets $347,590 $366,873 $357,666 Liabilities S/T debt. & curre. maturities $22,256 $23,572 $22,576 Other current liabilities 47,063 45,244 49,583 Total current liabilities 69,319 68,816 72,159 Def'd income taxes 12,772 12,661 12,580 Long-term debt 33,603 49,973 50,143 Other long-term liabilities 3,721 4,022 3,721 Stockholder's equity Stockholder's equity The residual claims that stockholders have against a firm's assets, calculated by subtracting all current liabilities and debt liabilities from total assets. 228,175 231,401 219,063 Total liabilities & equity $347,590 $366,873 $357,666 Total Debt $55,859 $73,545 $72,719 Net Debt $50,237 $66,905 $65,389 CONTACT: Haemonetics Lisa Lopez, (781) 356-9517 Investor@haemonetics.com |
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