ICU Medical, Inc. (Nasdaq:ICUI), a leader in the development,
manufacture and sale of innovative medical products, today
announced financial results for the quarterly period ended June 30,
2024.
Second Quarter 2024 Results
Second quarter 2024 revenue was $596.5 million, compared to
$549.3 million in the same period in the prior year. GAAP gross
profit for the second quarter of 2024 was $207.4 million, as
compared to $192.3 million in the same period in the prior year.
GAAP gross margin for the second quarter of 2024 and 2023 was 35%.
GAAP net loss for the second quarter of 2024 was $(21.4) million,
or $(0.88) per diluted share, as compared to GAAP net loss of
$(9.9) million, or $(0.41) per diluted share, for the second
quarter of 2023. Adjusted diluted earnings per share for the second
quarter of 2024 was $1.56 as compared to $1.88 for the second
quarter of 2023. Adjusted EBITDA was $91.3 million for the second
quarter of 2024 as compared to $98.1 million for the second quarter
of 2023.
Adjusted EBITDA and adjusted diluted earnings per share are
measures calculated and presented on the basis of methodologies
other than in accordance with GAAP. Please refer to the Use of
Non-GAAP Financial Information following the financial statements
herein for further discussion and reconciliations of these measures
to GAAP measures.
Vivek Jain, ICU Medical’s Chief Executive Officer, said, “Second
quarter results were generally in line with our expectations."
Revenues by product line for the three and six months
ended June 30, 2024 and 2023 were as follows (in
millions):
| |
|
Three months ended June 30, |
|
|
|
Six months ended June 30, |
|
|
|
Product Line |
|
2024 |
|
2023 |
|
$ Change |
|
2024 |
|
2023 |
|
$ Change |
|
Consumables |
|
$ |
261.8 |
|
$ |
237.0 |
|
$ |
24.8 |
|
$ |
505.9 |
|
$ |
473.1 |
|
$ |
32.8 |
| Infusion Systems |
|
|
163.7 |
|
|
153.2 |
|
|
10.5 |
|
|
321.0 |
|
|
314.9 |
|
|
6.1 |
| Vital Care* |
|
|
171.0 |
|
|
159.2 |
|
|
11.8 |
|
|
336.3 |
|
|
330.0 |
|
|
6.3 |
| Total** |
|
$ |
596.5 |
|
$ |
549.4 |
|
$ |
47.1 |
|
$ |
1,163.2 |
|
$ |
1,118.0 |
|
$ |
45.2 |
| |
| * Vital Care
includes Pfizer contract manufacturing revenue of $15.5 million and
$29.5 million for the three and six months ended June 30, 2024,
respectively, as compared to $14.2 million and $26.9 million for
the three and six months ended June 30, 2023. |
| ** Totals may
differ from the income statement due to the rounding of product
lines. |
| |
Fiscal Year 2024 Guidance
For Fiscal Year 2024 the Company updated its estimates of GAAP
net loss from a range of $(127) to $(110) to a range of $(118) to
$(108) and GAAP diluted loss per share from a range of $(5.16) to
$(4.46) to a range of $(4.78) to $(4.38). The Company updated the
estimate of the range of its full year 2024 guidance of adjusted
EBITDA from a range of $330 million to $370 million to a range of
$345 million to $365 million and diluted earnings per share from a
range of $4.40 to $5.10 to a range of $4.95 to $5.35.
Conference Call
The Company will host a conference call to discuss its second
quarter 2024 financial results, today at 4:30 p.m. ET (1:30 p.m.
PT). The call can be accessed at (800) 579-2543, conference ID
"ICUMED". The conference call will be simultaneously available by
webcast, which can be accessed by going to the Company's website at
www.icumed.com, clicking on the Investors tab, clicking on Event
Calendar and clicking on the Webcast icon and following the
prompts. The webcast will also be available by replay.
About ICU Medical
ICU Medical (Nasdaq: ICUI) is a global leader in infusion
systems, infusion consumables and high-value critical care products
used in hospital, alternate site and home care settings. Our team
is focused on providing quality, innovation and value to our
clinical customers worldwide. ICU Medical is headquartered in San
Clemente, California. More information about ICU Medical can be
found at www.icumed.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such statements contain words such as ''will,''
''expect,'' ''believe,'' ''could,'' ''would,'' ''estimate,''
''continue,'' ''build,'' ''expand'' or the negative thereof or
comparable terminology and may include (without limitation)
information regarding the Company's expectations, goals and
intentions regarding the future. These forward-looking statements
are based on management's current expectations, estimates,
forecasts and projections about the Company and assumptions
management believes are reasonable, all of which are subject to
risks and uncertainties that could cause actual results and events
to differ materially from those stated in the forward-looking
statements. These risks and uncertainties include, but are not
limited to, decreased demand for the Company's products, decreased
free cash flow, changes in product mix, increased competition from
competitors, lack of growth or improving efficiencies, unexpected
changes in the Company's arrangements with its largest customers,
the impact from fluctuations in foreign currency exchange rates,
the impact of inflation on raw materials, freight charges and
labor, rising interest rates, and the Company's ability to meet
expectations regarding the ongoing integration of the Smiths
Medical business. Future results are subject to risks and
uncertainties, including the risk factors, and other risks and
uncertainties, described in the Company's filings with the
Securities and Exchange Commission ("SEC"), which include those in
the Company's most recent Annual Report on Form 10-K for the fiscal
year ended December 31, 2023, and our subsequent filings with the
SEC. Forward-looking statements contained in this press release are
made only as of the date hereof, and the Company undertakes no
obligation to update or revise the forward-looking statements,
whether as a result of new information, future events or otherwise
unless required by law.
| |
|
ICU MEDICAL, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)(In thousands) |
| |
| |
June 30,2024 |
|
December 31,2023 |
|
|
|
|
|
|
ASSETS |
|
|
|
| CURRENT ASSETS: |
|
|
|
|
Cash and cash equivalents |
$ |
302,648 |
|
|
$ |
254,222 |
|
|
Short-term investment securities |
|
— |
|
|
|
501 |
|
|
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENT
SECURITIES |
|
302,648 |
|
|
|
254,723 |
|
|
Accounts receivable, net of allowance for doubtful accounts |
|
151,765 |
|
|
|
161,566 |
|
|
Inventories |
|
682,870 |
|
|
|
709,360 |
|
|
Prepaid income taxes |
|
17,883 |
|
|
|
21,983 |
|
|
Prepaid expenses and other current assets |
|
80,825 |
|
|
|
73,640 |
|
|
TOTAL CURRENT ASSETS |
|
1,235,991 |
|
|
|
1,221,272 |
|
| |
|
|
|
| PROPERTY, PLANT AND EQUIPMENT,
net |
|
594,085 |
|
|
|
612,909 |
|
| OPERATING LEASE RIGHT-OF-USE
ASSETS |
|
66,408 |
|
|
|
69,909 |
|
| GOODWILL |
|
1,450,935 |
|
|
|
1,472,446 |
|
| INTANGIBLE ASSETS, net |
|
805,794 |
|
|
|
870,588 |
|
| DEFERRED INCOME TAXES |
|
38,861 |
|
|
|
37,295 |
|
| OTHER ASSETS |
|
94,593 |
|
|
|
94,020 |
|
|
TOTAL ASSETS |
$ |
4,286,667 |
|
|
$ |
4,378,439 |
|
| |
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
| CURRENT LIABILITIES: |
|
|
|
|
Accounts payable |
$ |
155,515 |
|
|
$ |
150,030 |
|
|
Accrued liabilities |
|
299,751 |
|
|
|
268,215 |
|
|
Current portion of long-term debt |
|
51,000 |
|
|
|
51,000 |
|
|
Income tax payable |
|
4,141 |
|
|
|
7,714 |
|
|
Contingent earn-out liability |
|
1,500 |
|
|
|
4,879 |
|
|
TOTAL CURRENT LIABILITIES |
|
511,907 |
|
|
|
481,838 |
|
| |
|
|
|
| CONTINGENT EARN-OUT
LIABILITY |
|
3,947 |
|
|
|
3,991 |
|
| LONG-TERM DEBT |
|
1,554,822 |
|
|
|
1,577,770 |
|
| OTHER LONG-TERM
LIABILITIES |
|
91,356 |
|
|
|
100,497 |
|
| DEFERRED INCOME TAXES |
|
53,794 |
|
|
|
55,873 |
|
| INCOME TAX LIABILITY |
|
33,029 |
|
|
|
35,060 |
|
| COMMITMENTS AND
CONTINGENCIES |
|
— |
|
|
|
— |
|
| STOCKHOLDERS’ EQUITY: |
|
|
|
|
Convertible preferred stock, $1.00 par value; Authorized — 500
shares; Issued and outstanding — none |
|
— |
|
|
|
— |
|
|
Common stock, $0.10 par value; Authorized — 80,000 shares; Issued
—24,430 and 24,144 shares at June 30, 2024 and December 31, 2023,
respectively, and outstanding — 24,425 and 24,141 shares at June
30, 2024 and December 31, 2023, respectively |
|
2,443 |
|
|
|
2,414 |
|
|
Additional paid-in capital |
|
1,380,703 |
|
|
|
1,366,493 |
|
|
Treasury stock, at cost |
|
(518 |
) |
|
|
(262 |
) |
|
Retained earnings |
|
746,969 |
|
|
|
807,846 |
|
|
Accumulated other comprehensive loss |
|
(91,785 |
) |
|
|
(53,081 |
) |
|
TOTAL STOCKHOLDERS' EQUITY |
|
2,037,812 |
|
|
|
2,123,410 |
|
| TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
$ |
4,286,667 |
|
|
$ |
4,378,439 |
|
| |
|
ICU MEDICAL, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited)(In thousands, except per share
data) |
| |
| |
Three months ended June 30, |
|
Six months ended June 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
TOTAL REVENUES |
$ |
596,455 |
|
|
$ |
549,310 |
|
|
$ |
1,163,110 |
|
|
$ |
1,117,959 |
|
| COST OF GOODS SOLD |
|
389,027 |
|
|
|
356,983 |
|
|
|
770,438 |
|
|
|
733,591 |
|
|
GROSS PROFIT |
|
207,428 |
|
|
|
192,327 |
|
|
|
392,672 |
|
|
|
384,368 |
|
| OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
159,549 |
|
|
|
150,895 |
|
|
|
317,206 |
|
|
|
303,467 |
|
|
Research and development |
|
23,390 |
|
|
|
22,302 |
|
|
|
45,232 |
|
|
|
42,063 |
|
|
Restructuring, strategic transaction and integration |
|
17,136 |
|
|
|
12,354 |
|
|
|
33,241 |
|
|
|
23,367 |
|
|
Change in fair value of contingent earn-out |
|
(339 |
) |
|
|
4,016 |
|
|
|
(44 |
) |
|
|
3,316 |
|
| TOTAL OPERATING EXPENSES |
|
199,736 |
|
|
|
189,567 |
|
|
|
395,635 |
|
|
|
372,213 |
|
| INCOME (LOSS) FROM
OPERATIONS |
|
7,692 |
|
|
|
2,760 |
|
|
|
(2,963 |
) |
|
|
12,155 |
|
| INTEREST EXPENSE, net |
|
(23,841 |
) |
|
|
(24,121 |
) |
|
|
(47,613 |
) |
|
|
(46,636 |
) |
| OTHER EXPENSE, net |
|
(3,384 |
) |
|
|
(1,502 |
) |
|
|
(5,725 |
) |
|
|
(1,771 |
) |
| LOSS BEFORE INCOME TAXES |
|
(19,533 |
) |
|
|
(22,863 |
) |
|
|
(56,301 |
) |
|
|
(36,252 |
) |
| (PROVISION) BENEFIT FOR INCOME
TAXES |
|
(1,873 |
) |
|
|
12,929 |
|
|
|
(4,576 |
) |
|
|
16,506 |
|
| NET LOSS |
$ |
(21,406 |
) |
|
$ |
(9,934 |
) |
|
$ |
(60,877 |
) |
|
$ |
(19,746 |
) |
| NET LOSS PER SHARE |
|
|
|
|
|
|
|
|
Basic |
$ |
(0.88 |
) |
|
$ |
(0.41 |
) |
|
$ |
(2.51 |
) |
|
$ |
(0.82 |
) |
|
Diluted |
$ |
(0.88 |
) |
|
$ |
(0.41 |
) |
|
$ |
(2.51 |
) |
|
$ |
(0.82 |
) |
| WEIGHTED AVERAGE NUMBER OF
SHARES |
|
|
|
|
|
|
|
|
Basic |
|
24,393 |
|
|
|
24,075 |
|
|
|
24,295 |
|
|
|
24,045 |
|
|
Diluted |
|
24,393 |
|
|
|
24,075 |
|
|
|
24,295 |
|
|
|
24,045 |
|
| |
|
ICU MEDICAL, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (Unaudited)(In thousands) |
| |
| |
Six months ended June 30, |
| |
2024 |
|
2023 |
| CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
Net loss |
$ |
(60,877 |
) |
|
$ |
(19,746 |
) |
| Adjustments to reconcile net
loss to net cash provided by operating activities: |
|
|
|
|
Depreciation and amortization |
|
110,844 |
|
|
|
113,244 |
|
|
Noncash lease expense |
|
10,524 |
|
|
|
11,110 |
|
|
Provision for doubtful accounts |
|
1,370 |
|
|
|
399 |
|
|
Provision for warranty, returns and field action |
|
(2,458 |
) |
|
|
7,070 |
|
|
Stock compensation |
|
22,596 |
|
|
|
18,931 |
|
|
(Gain) loss on disposal of property, plant and equipment and other
assets |
|
(78 |
) |
|
|
1,019 |
|
|
Debt issuance costs amortization |
|
3,411 |
|
|
|
3,404 |
|
|
Change in fair value of contingent earn-out liability |
|
(44 |
) |
|
|
3,316 |
|
|
Usage of spare parts |
|
8,944 |
|
|
|
10,056 |
|
|
Other |
|
4,925 |
|
|
|
2,917 |
|
|
Changes in operating assets and liabilities, net of amounts
acquired: |
|
|
|
|
Accounts receivable |
|
6,715 |
|
|
|
46,796 |
|
|
Inventories |
|
21,095 |
|
|
|
(76,040 |
) |
|
Prepaid expenses and other current assets |
|
(12,638 |
) |
|
|
2,983 |
|
|
Other assets |
|
(11,124 |
) |
|
|
(12,698 |
) |
|
Accounts payable |
|
9,432 |
|
|
|
(46,864 |
) |
|
Accrued liabilities |
|
20,245 |
|
|
|
(104 |
) |
|
Income taxes, including excess tax benefits and deferred income
taxes |
|
(5,138 |
) |
|
|
(26,022 |
) |
|
Net cash provided by operating activities |
|
127,744 |
|
|
|
39,771 |
|
| CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
Purchases of property, plant and equipment |
|
(35,382 |
) |
|
|
(32,489 |
) |
|
Proceeds from sale of assets |
|
692 |
|
|
|
1,431 |
|
|
Intangible asset additions |
|
(5,364 |
) |
|
|
(4,651 |
) |
|
Proceeds from sale and maturities of investment securities |
|
500 |
|
|
|
2,920 |
|
|
Net cash used in investing activities |
|
(39,554 |
) |
|
|
(32,789 |
) |
| CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
Principal repayments of long-term debt |
|
(25,500 |
) |
|
|
(14,813 |
) |
|
Proceeds from exercise of stock options |
|
3,074 |
|
|
|
2,233 |
|
|
Payments on finance leases |
|
(518 |
) |
|
|
(436 |
) |
|
Payment of contingent earn-out liability |
|
(2,600 |
) |
|
|
— |
|
|
Tax withholding payments related to net share settlement of equity
awards |
|
(11,685 |
) |
|
|
(8,718 |
) |
|
Net cash used in financing activities |
|
(37,229 |
) |
|
|
(21,734 |
) |
| Effect of exchange rate
changes on cash |
|
(2,535 |
) |
|
|
1,855 |
|
| NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS |
|
48,426 |
|
|
|
(12,897 |
) |
| CASH AND CASH EQUIVALENTS,
beginning of period |
|
254,222 |
|
|
|
208,784 |
|
| CASH AND CASH EQUIVALENTS, end
of period |
$ |
302,648 |
|
|
$ |
195,887 |
|
| |
|
|
|
|
|
|
|
Use of Non-GAAP Financial Information
This press release contains financial measures that are not
calculated in accordance with U.S. generally accepted accounting
principles ("GAAP"). The non-GAAP financial measures should be
considered supplemental to, and not as a substitute for, or
superior to, financial measures calculated in accordance with GAAP.
There are material limitations in using these non-GAAP financial
measures because they are not prepared in accordance with GAAP and
may not be comparable to similarly titled non-GAAP financial
measures used by other companies, including peer companies. Our
management believes that the non-GAAP data provides useful
supplemental information to management and investors regarding our
performance and facilitates a more meaningful comparison of results
of operations between current and prior periods. We use non-GAAP
financial measures in addition to and in conjunction with GAAP
financial measures to analyze and assess the overall performance of
our business, in making financial, operating and planning
decisions, and in determining executive incentive compensation.
The non-GAAP financial measures include adjusted EBITDA,
adjusted revenue, adjusted gross profit, adjusted selling, general
and administrative, adjusted research and development, adjusted
restructuring, strategic transaction and integration, adjusted
change in fair value of contingent earn-out, adjusted (loss) income
from operations, adjusted other expense, net, adjusted (loss)
income before income taxes, adjusted (provision) benefit for income
taxes, adjusted net (loss) income and adjusted diluted (loss)
earnings per share, all of which exclude special items because they
are highly variable or unusual and impact year-over-year
comparisons.
For the three months ended June 30, 2024 and 2023, special items
include the following:
Contract manufacturing: We manufacture certain products for
Pfizer in accordance with a manufacturing services agreement. We do
not include the contract revenue in our adjusted revenue as the
commercial relationship under this agreement was originally
negotiated contemporaneously with a business combination and is not
indicative of a normal market transaction.
Stock compensation expense: Stock-based compensation is
generally fixed at the time the stock-based instrument is granted
and amortized over a period of several years. The value of stock
options is determined using a complex formula that incorporates
factors, such as market volatility, that are beyond our control.
The value of our restricted stock awards is determined using the
grant date stock price, which may not be indicative of our
operational performance over the expense period. Additionally, in
order to establish the fair value of performance-based stock
awards, which are currently an element of our ongoing stock-based
compensation, we are required to apply judgment to estimate the
probability of the extent to which performance objectives will be
achieved. Based on the above factors, we believe it is useful to
exclude stock-based compensation in order to better understand our
operating performance.
Intangible asset amortization expense: We do not acquire
businesses or capitalize certain patent costs on a predictable
cycle. The amount of purchase price allocated to intangible assets
and the term of amortization can vary significantly and are unique
to each acquisition. Capitalized patent costs can vary
significantly based on our current level of development activities.
We believe that excluding amortization of intangible assets
provides the users of our financial statements with a consistent
basis for comparison across accounting periods.
Restructuring, strategic transaction and integration: We incur
restructuring and strategic transaction charges that result from
events, which arise from unforeseen circumstances and/or often
occur outside of the ordinary course of our ongoing business.
Although these events are reflected in our GAAP financial
statements, these unique transactions may limit the comparability
of our ongoing operations with prior and future periods.
Change in fair value of contingent earn-out: We exclude the
impact of certain amounts recorded in connection with business
combinations. We exclude items that are either non-cash or not
normal, recurring operating expenses due to their nature,
variability of amounts, and lack of predictability as to occurrence
and/or timing.
Quality system and product-related remediation: We exclude
certain quality system and product-related remediation charges in
determining our non-GAAP financial measures as they may limit the
comparability of our ongoing operations with prior and future
periods and distort the evaluation of our normal operating
performance.
Asset write-offs and similar charges: Occasionally, we may
write-off certain assets or we may sell certain assets. We exclude
the non-cash gain/loss on the write-off/sale of these assets in
determining our non-GAAP financial measures as they may limit the
comparability of our ongoing operations with prior and future
periods and distort the evaluation of our normal operating
performance.
From time to time in the future, there may be other items that
we may exclude if we believe that doing so is consistent with the
goal of providing useful information to investors and
management.
In addition to the above special items, Adjusted EBITDA
additionally excludes the following items from net income:
Depreciation expense: We exclude depreciation expense in
deriving adjusted EBITDA because companies utilize productive
assets of different ages and the depreciable lives can vary
significantly resulting in considerable variability in depreciation
expense among companies.
Interest, net: We exclude interest in deriving adjusted EBITDA
as interest can vary significantly among companies depending on a
company's level of income generating instruments and/or level of
debt.
Taxes: We exclude taxes in deriving adjusted EBITDA as taxes are
deemed to be non-core to the business and may limit the
comparability of our ongoing operations with prior and future
periods and distort the evaluation of our normal operating
performance.
Adjusted Diluted EPS excludes from diluted EPS, net of tax, the
special items listed above. The tax effect on the special items is
calculated using the specific tax rate applied to each adjustment
based on the nature of the item/or the tax jurisdiction in which
the item has been recorded. Additionally, adjusted diluted EPS may
exclude the income tax impact of certain non-recurring discrete tax
items that are not reflective of income tax expense/benefit
incurred as a result of current period earnings/ loss, as well as
the impact of certain deferred tax valuation allowances when
assessed against non-GAAP profitability.
We also present Free cash flow as a non-GAAP financial measure
as management believes that this is an important measure for use in
evaluating overall company financial performance as it measures our
ability to generate additional cash flow from business operations.
Free cash flow should be considered in addition to, rather than as
a substitute for, net income as a measure of our performance or net
cash provided by operating activities as a measure of our
liquidity. Additionally, our definition of free cash flow is
limited and does not represent residual cash flows available for
discretionary expenditures due to the fact that the measure does
not deduct the payments required for debt service and other
obligations or payments made for business acquisitions. Therefore,
we believe it is important to view free cash flow as supplemental
to our entire statement of cash flows.
The following tables reconcile our non-GAAP financial measures
for the periods presented:
| |
|
ICU MEDICAL, INC. AND
SUBSIDIARIESReconciliation of GAAP to Non-GAAP
Financial Measures (Unaudited)(In thousands, except per
share data) |
| |
| |
Adjusted EBITDA |
| |
Three months endedJune 30, |
| |
2024 |
|
2023 |
|
GAAP net loss |
$ |
(21,406 |
) |
|
$ |
(9,934 |
) |
| |
|
|
|
| Non-GAAP adjustments: |
|
|
|
|
Interest, net |
|
23,841 |
|
|
|
24,121 |
|
|
Stock compensation expense |
|
10,998 |
|
|
|
9,773 |
|
|
Depreciation and amortization expense |
|
55,318 |
|
|
|
57,500 |
|
|
Restructuring, strategic transaction and integration |
|
17,136 |
|
|
|
12,354 |
|
|
Change in fair value of contingent earn-out |
|
(339 |
) |
|
|
4,016 |
|
|
Quality system and product-related charges |
|
3,924 |
|
|
|
13,134 |
|
|
Asset write-offs and similar charges |
|
(8 |
) |
|
|
19 |
|
|
Provision (Benefit) for income taxes |
|
1,873 |
|
|
|
(12,929 |
) |
| Total non-GAAP
adjustments |
|
112,743 |
|
|
|
107,988 |
|
| |
|
|
|
| Adjusted EBITDA |
$ |
91,337 |
|
|
$ |
98,054 |
|
| |
|
|
|
|
|
ICU MEDICAL, INC. AND
SUBSIDIARIESReconciliation of GAAP to Non-GAAP
Financial Measures (Unaudited)(In thousands, except
percentages and per share) |
| |
|
|
|
|
| The Company’s
U.S. GAAP results for the three months ended June 30, 2024 included
special items which impacted the U.S. GAAP measures as
follows: |
| |
|
|
|
|
| |
Total revenues |
Gross profit |
Selling, general and administrative |
Research and development |
Restructuring, strategic transaction and
integration |
Change in fair value of contingent earn-out |
(Loss) income from operations |
Other expense, net |
(Loss) income before income taxes |
Provision for income taxes |
Net (loss) income |
Diluted (loss) earnings per share |
|
Reported (GAAP) |
$ |
596,455 |
|
$ |
207,428 |
|
$ |
159,549 |
|
$ |
23,390 |
|
$ |
17,136 |
|
$ |
(339 |
) |
$ |
7,692 |
|
$ |
(3,384 |
) |
$ |
(19,533 |
) |
$ |
(1,873 |
) |
$ |
(21,406 |
) |
$ |
(0.88 |
) |
| Reported percent of total
revenues (or percent of (loss) income before income taxes for
benefit (provision) for income taxes) |
|
|
35 |
% |
|
27 |
% |
|
4 |
% |
|
3 |
% |
|
— |
% |
|
1 |
% |
(1 |
)% |
(3 |
)% |
(9.6 |
)% |
(4 |
)% |
|
| Contract manufacturing |
|
(15,473 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
| Stock compensation
expense |
|
— |
|
|
1,524 |
|
|
(9,071 |
) |
|
(403 |
) |
|
— |
|
|
— |
|
|
10,998 |
|
|
— |
|
|
10,998 |
|
|
(2,640 |
) |
|
8,358 |
|
|
0.34 |
|
| Amortization expense |
|
— |
|
|
— |
|
|
(33,059 |
) |
|
— |
|
|
— |
|
|
— |
|
|
33,059 |
|
|
— |
|
|
33,059 |
|
|
(8,037 |
) |
|
25,022 |
|
|
1.02 |
|
| Restructuring, strategic
transaction and integration |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(17,136 |
) |
|
— |
|
|
17,136 |
|
|
— |
|
|
17,136 |
|
|
(4,124 |
) |
|
13,012 |
|
|
0.53 |
|
| Change in fair value of
contingent earn-out |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
339 |
|
|
(339 |
) |
|
— |
|
|
(339 |
) |
|
— |
|
|
(339 |
) |
|
(0.01 |
) |
| Quality system and
product-related remediation |
|
— |
|
|
3,924 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,924 |
|
|
— |
|
|
3,924 |
|
|
(885 |
) |
|
3,039 |
|
|
0.12 |
|
| Asset write-offs and similar
charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(8 |
) |
|
(8 |
) |
|
2 |
|
|
(6 |
) |
|
— |
|
| Tax expense from valuation
allowance* |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
10,387 |
|
|
10,387 |
|
|
0.42 |
|
| Adjusted
(Non-GAAP)** |
$ |
580,982 |
|
$ |
212,876 |
|
$ |
117,419 |
|
$ |
22,987 |
|
$ |
— |
|
$ |
— |
|
$ |
72,470 |
|
$ |
(3,392 |
) |
$ |
45,237 |
|
$ |
(7,170 |
) |
$ |
38,067 |
|
$ |
1.56 |
|
| Adjusted percent of total
revenues (or percent of (loss) income before income taxes for
benefit (provision) for income taxes) |
|
|
37 |
% |
|
20 |
% |
|
4 |
% |
|
— |
% |
|
— |
% |
|
12 |
% |
(1 |
)% |
|
8 |
% |
|
15.8 |
% |
|
7 |
% |
|
_______________________
* The Company’s non-GAAP annual effective tax rate is calculated
without the tax expense related to the valuation allowance against
certain U.S. Federal and State deferred tax assets. The valuation
allowance was recorded based on an assessment of available positive
and negative evidence, including, predominantly, an estimate that
we will be in a three-year cumulative U.S. loss position on a GAAP
basis as of June 30, 2024. However, based on the same assessment,
including, predominantly, our being, and expectation of remaining
for 2024, in a three-year cumulative U.S. income position on a
non-GAAP basis, which excludes the impact of our non-GAAP
adjustments, we concluded that recording a valuation allowance
would not have been appropriate for non-GAAP reporting. As a
result, the tax expense for the valuation allowance was added back
to our calculation of non-GAAP annual effective tax rate.** Amounts
may not foot due to rounding.
| |
|
ICU MEDICAL, INC. AND
SUBSIDIARIESReconciliation of GAAP to Non-GAAP
Financial Measures (Unaudited)(continued)(In thousands,
except percentages and per share) |
| |
| The Company’s
U.S. GAAP results for the three months ended June 30, 2023 included
special items which impacted the U.S. GAAP measures as
follows: |
| |
| |
Total revenues |
Gross profit |
Selling, general and administrative |
Research and development |
Restructuring, strategic transaction and
integration |
Change in fair value of contingent earn-out |
Income from operations |
Other expense, net |
(Loss) income before income taxes |
Benefit (provision) for income taxes |
Net (loss) income |
Diluted (loss) earnings per share |
|
Reported (GAAP) |
$ |
549,310 |
|
$ |
192,327 |
|
$ |
150,895 |
|
$ |
22,302 |
|
$ |
12,354 |
|
$ |
4,016 |
|
$ |
2,760 |
|
$ |
(1,502 |
) |
$ |
(22,863 |
) |
$ |
12,929 |
|
$ |
(9,934 |
) |
$ |
(0.41 |
) |
| Reported percent of total
revenues (or percent of (loss) income before income taxes for
benefit (provision) for income taxes) |
|
|
35 |
% |
|
27 |
% |
|
4 |
% |
|
2 |
% |
|
1 |
% |
|
1 |
% |
|
— |
% |
(4 |
)% |
|
56.6 |
% |
(2 |
)% |
|
| Contract manufacturing |
|
(14,198 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
| Stock compensation
expense |
|
— |
|
|
1,571 |
|
|
(7,794 |
) |
|
(408 |
) |
|
— |
|
|
— |
|
|
9,773 |
|
|
— |
|
|
9,773 |
|
|
(2,346 |
) |
|
7,427 |
|
|
0.30 |
|
| Amortization expense |
|
— |
|
|
— |
|
|
(33,121 |
) |
|
— |
|
|
— |
|
|
— |
|
|
33,121 |
|
|
— |
|
|
33,121 |
|
|
(8,110 |
) |
|
25,011 |
|
|
1.02 |
|
| Restructuring, strategic
transaction and integration |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(12,354 |
) |
|
— |
|
|
12,354 |
|
|
— |
|
|
12,354 |
|
|
(2,984 |
) |
|
9,370 |
|
|
0.38 |
|
| Change in fair value of
contingent earn-out |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4,016 |
) |
|
4,016 |
|
|
— |
|
|
4,016 |
|
|
— |
|
|
4,016 |
|
|
0.16 |
|
| Quality system and
product-related remediation |
|
— |
|
|
13,134 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
13,134 |
|
|
— |
|
|
13,134 |
|
|
(3,234 |
) |
|
9,900 |
|
|
0.41 |
|
| Asset write-offs and similar
charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
19 |
|
|
19 |
|
|
— |
|
|
19 |
|
|
— |
|
| Adjusted
(Non-GAAP)* |
$ |
535,112 |
|
$ |
207,032 |
|
$ |
109,980 |
|
$ |
21,894 |
|
$ |
— |
|
$ |
— |
|
$ |
75,158 |
|
$ |
(1,483 |
) |
$ |
49,554 |
|
$ |
(3,745 |
) |
$ |
45,809 |
|
$ |
1.88 |
|
| Adjusted percent of total
revenues (or percent of (loss) income before income taxes for
benefit (provision) for income taxes) |
|
|
39 |
% |
|
21 |
% |
|
4 |
% |
|
— |
% |
|
— |
% |
|
14 |
% |
|
— |
% |
|
9 |
% |
|
7.6 |
% |
|
9 |
% |
|
_______________________* Amounts may not foot due to
rounding
| |
|
ICU MEDICAL, INC. AND
SUBSIDIARIESReconciliation of Net Cash Provided by
Operating Activities to Free Cash Flow (Unaudited)(In
thousands) |
| |
| |
Three months endedJune 30, |
|
Six months endedJune 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net cash provided by operating activities |
$ |
81,953 |
|
|
|
(1,474 |
) |
|
$ |
127,744 |
|
|
$ |
39,771 |
|
| Purchase of property, plant
and equipment |
|
(19,467 |
) |
|
|
(18,284 |
) |
|
|
(35,382 |
) |
|
|
(32,489 |
) |
| Proceeds from sale of
assets |
|
185 |
|
|
|
1,377 |
|
|
|
692 |
|
|
|
1,431 |
|
| Free cash flow |
$ |
62,671 |
|
|
$ |
(18,381 |
) |
|
$ |
93,054 |
|
|
$ |
8,713 |
|
| |
|
ICU MEDICAL, INC. AND SUBSIDIARIESFiscal
Year 2024 Outlook (Unaudited)(In
millions, except per share data) |
| |
| |
Low End of Guidance |
|
High End of Guidance |
|
GAAP net loss |
$ |
(118 |
) |
|
$ |
(108 |
) |
| |
|
|
|
| Non-GAAP adjustments: |
|
|
|
|
Interest, net |
|
105 |
|
|
|
105 |
|
|
Stock compensation expense |
|
44 |
|
|
|
44 |
|
|
Depreciation and amortization expense |
|
229 |
|
|
|
229 |
|
|
Restructuring, strategic transaction and integration |
|
50 |
|
|
|
50 |
|
|
Quality and regulatory initiatives and remediation |
|
35 |
|
|
|
35 |
|
|
Change in fair value of contingent earn-out |
|
(4 |
) |
|
|
(4 |
) |
|
Provision for income taxes |
|
4 |
|
|
|
14 |
|
|
Total non-GAAP adjustments |
$ |
463 |
|
|
$ |
473 |
|
| |
|
|
|
| Adjusted EBITDA |
$ |
345 |
|
|
$ |
365 |
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| GAAP basic/diluted loss per
share |
$ |
(4.78 |
) |
|
$ |
(4.38 |
) |
| |
|
|
|
| Non-GAAP adjustments: |
|
|
|
|
Stock compensation expense |
|
1.79 |
|
|
|
1.79 |
|
|
Amortization expense |
|
5.53 |
|
|
|
5.53 |
|
|
Restructuring, strategic transaction and integration |
|
2.03 |
|
|
|
2.03 |
|
|
Quality and regulatory initiatives and remediation |
|
1.42 |
|
|
|
1.42 |
|
|
Change in fair value of contingent earn-out |
|
(0.16 |
) |
|
|
(0.16 |
) |
|
Tax expense from valuation allowance |
|
1.67 |
|
|
|
1.67 |
|
|
Estimated income tax impact from adjustments |
|
(2.55 |
) |
|
|
(2.55 |
) |
| Adjusted diluted earnings per
share |
$ |
4.95 |
|
|
$ |
5.35 |
|
| |
|
|
|
|
|
|
|
CONTACT: ICU Medical, Inc.Brian Bonnell, Chief Financial
Officer(949) 366-2183
ICR, Inc.John Mills, Partner(646) 277-1254
ICU Medical (NASDAQ:ICUI)
過去 株価チャート
から 7 2024 まで 8 2024
ICU Medical (NASDAQ:ICUI)
過去 株価チャート
から 8 2023 まで 8 2024
