Exhibit 99.1
DATE: November 4, 2008
FOR IMMEDIATE RELEASE
AMERICAN MEDICAL SYSTEMS REPORTS THIRD QUARTER RESULTS AND STRONG EARNINGS GROWTH
| | • | | Earnings per share (excluding IPRD) of $0.14 grows 56 percent over prior year; reported earnings of $0.08 down 11 percent |
| |
| | • | | Implantable businesses grow 15 percent |
| |
| | • | | Continued strong cash flow driven by expense management and working capital optimization |
MINNEAPOLIS, November 4, 2008 — American Medical Systems Holdings, Inc. (NASDAQ: AMMD) reported revenue of $117.5 million for the third quarter of 2008, a 7.7 percent increase over sales of $109.0 million in the comparable quarter of 2007. Currency translation had a positive impact on revenue of $2.1 million in the third quarter compared to the same period last year. Third quarter 2008 adjusted net income of $10.3 million, or $0.14 per share, excludes the impact of an in-process research and development (IPRD) charge and represents a 49.3 percent and 55.6 percent increase over third quarter 2007 net income of $6.9 million, or $0.09 per share, respectively. Third quarter 2008 reported net income of $5.7 million, or $0.08 per share, includes a $7.5 million IPRD charge related to a milestone payment on the 2006 acquisition of BioControl. The Company also reported a strong cash EPS performance in the third quarter of 2008 of $0.20 per share compared to $0.17 per share in the comparable period last year, a 17.6 percent growth, reflecting solid expense and working capital management. A reconciliation of net income from continuing operations, the GAAP measure most directly comparable to cash earnings per share, to non-GAAP cash earnings per share, is provided on the attached schedule.
Excluding the impact of the laser therapy business, the men’s health business grew 12.2 percent during the quarter, to $53.8 million, driven by strong growth in male continence. Male continence continued its record setting year driven by the success of theAdVance®Male Sling System and the sustained strength of the artificial urinary sphincter product family. Revenue from the laser therapy business declined 6.2 percent from the same quarter last year.
The women’s health business grew 11.9 percent during the quarter, to $39.3 million. This performance was led by the female continence business which continues to benefit from last year’s introduction of theMiniArc®single incision sling system used for treating female stress incontinence. The prolapse business experienced growth similar to the second quarter, increasing about 7.0 percent year-over-year. TheElevate® posterior product used in prolapse repair was recently introduced and we look forward to the 2009 launch of theElevate® anterior product. The growth in female continence and prolapse businesses was partially offset by a decline in the uterine health business compared to the same quarter last year.
“I am pleased with the continued success of our implantable businesses, which consist of Male Continence, Erectile Restoration, Female Continence, and Prolapse Repair,” noted Tony Bihl,
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Chief Executive Officer. “Through innovative products, market leadership, and a respected name among physicians, we have been able to deliver solid growth in the current economic environment.”
Mr. Bihl further elaborated, “Although it appears that world economic conditions are having some impact on procedures considered more elective in nature, and those involving capital equipment, I am confident in the underlying fundamentals of the business and our ability to leverage our resources, optimize our balance sheet, and drive our earnings and cash flow from operations.”
A reconciliation of reported net income from continuing operations to net income from continuing operations, as adjusted for the impact of the in-process research and development charge in the third quarter of 2008, which affects comparability between periods, is presented below.
American Medical Systems Holdings, Inc.
Reconciliation of Reported Net Income to Non-GAAP Adjusted Net Income from Continuing Operations
(Adjustments are presented on a pre-tax basis)
(Unaudited)
(In millions, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | September | | | September | | | September | | | September | |
| | | 27, 2008 | | | 29, 2007 | | | 27, 2008 | | | 29, 2007 | |
| Net income from continuing operations, as reported | | $ | 5.7 | | | $ | 6.9 | | | $ | 27.9 | | | $ | 18.6 | |
| | | | | | | | | | | | | | | | | |
| Adjustment to net income from continuing operations: | | | | | | | | | | | | | | | | |
| In-process research and development (a) | | | 7.5 | | | | — | | | | 7.5 | | | | — | |
| Tax effect of in-process research and development (a) | | | (2.9 | ) | | | — | | | | (2.9 | ) | | | — | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net income from continuing operations, as adjusted | | $ | 10.3 | | | $ | 6.9 | | | $ | 32.5 | | | $ | 18.6 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net income from continuing operations, as adjusted per share | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.14 | | | $ | 0.10 | | | $ | 0.45 | | | $ | 0.26 | |
| Diluted | | $ | 0.14 | | | $ | 0.09 | | | $ | 0.44 | | | $ | 0.25 | |
| | | | | | | | | | | | | | | | | |
| Weighted average common shares used in calculation: | | | | | | | | | | | | | | | | |
| Basic | | | 73,095 | | | | 72,166 | | | | 72,796 | | | | 72,001 | |
| Diluted | | | 74,209 | | | | 73,740 | | | | 73,945 | | | | 73,605 | |
| | |
| (a) | | Relates to a milestone payment made in the third quarter of 2008 on the 2006 acquisition of BioControl Medical, Ltd. |
Outlook
The Company expects its fourth quarter 2008 revenue to be in the range of $126 million to $132 million, which results in expected 2008 full year revenue in the range of $494 million to $500 million. Reflecting the strong earnings performance experienced in the first three quarters, the Company expects fourth quarter earnings per share in the range of $0.21 to $0.25 and full year 2008 earnings per share, as adjusted, in the range of $0.65 to $0.69. Similarly, the Company has updated its 2008 cash earnings per share guidance to be in the range of $0.92 to $0.96. This guidance excludes the impact of the IPRD charge recognized in the third quarter 2008, which
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reduced reported net earnings per share by $0.06, and any potential future unusual non-recurring charges that could occur in 2008, which management believes impact comparability between periods.
A reconciliation of the updated guided net income per share, as adjusted, to non-GAAP cash earnings per share is as follows:
| | | | | |
| | | Guided Year 2008 | |
| Guided earnings per share, as adjusted (a) | | $ | 0.65 - $0.69 | |
| |
| Adjustments to guided earnings per share, as adjusted, net of tax: | | | | |
| Amortization of intangibles | | | 0.14 | |
| Amortization of financing costs | | | 0.03 | |
| Stock based compensation | | | 0.10 | |
| | | | |
| | | | | |
| Total tax effected adjustments to guided earnings per share, as adjusted | | | 0.27 | |
| | | | |
| | | | | |
| Guided non-GAAP cash earnings per share (a) | | $ | 0.92 - $0.96 | |
| | | | |
| | |
| (a) | | Excludes the impact of third quarter 2008 in-process research and development, net of tax, of $4.6 million, or $0.06 per share |
Use of Non-GAAP Financial Measures
The Company provides adjusted net earnings and adjusted net earnings per share because management believes that in order to properly understand the Company’s short-term and long-term financial trends, both the Company’s investors and management may wish to consider the impact of certain adjustments, such as IPRD charges resulting from previous acquisitions, and their related tax impacts. These adjustments result from facts and circumstances (such as business development activities) that vary in frequency and impact on the Company’s results of operations. Management uses adjusted net earnings and adjusted net earnings per share to forecast and evaluate the operational performance of the Company, as well as to allow comparability between periods.
Cash earnings per share is a non-GAAP measure that management believes provides useful supplemental information for management and investors, because it reports the net income from continuing operations, as adjusted for items which impact comparability between periods, such as IPRD, excluding the impact of significant non-cash items consisting of amortization of intangibles, amortization of financing costs and stock based compensation. Management believes cash earnings per share provides a useful measure to determine the health of the business and earnings generated by the business before significant non-cash charges. A reconciliation of net income from continuing operations, the GAAP measure most directly comparable to cash earnings per share to non-GAAP cash earnings per share, is provided on the attached schedule.
Non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with GAAP.
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Earnings Call Information
American Medical Systems will host a conference call today, November 4, 2008, at 5:00 p.m. eastern time to discuss its third quarter 2008 results. Those without internet access may join the call from within the U.S. by dialing 888-263-1724; outside the U.S., dial 706-679-3821.
A live web cast of the call will be available through the Company’s corporate website atwww.AmericanMedicalSystems.com and available for replay three hours after the completion of the call.
About American Medical Systems
American Medical Systems, headquartered in Minnetonka, Minnesota, is a diversified supplier of medical devices and procedures to cure erectile dysfunction, benign prostatic hyperplasia, incontinence, menorrhagia, prolapse and other pelvic disorders in men and women. These disorders can significantly diminish one’s quality of life and profoundly affect social relationships. In recent years, the 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 effects of these diseases, often through minimally invasive therapies. The Company’s products were used to treat approximately 310,000 patients in 2007.
Forward-Looking Statements
This press release contains forward-looking statements relating to the market opportunities, future products, sales and financial results of American Medical Systems. These statements and other statements contained in this press release that are not purely historical fact are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on management’s beliefs, certain assumptions and current expectations. These forward-looking statements are subject to risks and uncertainties such as successfully competing against competitors; physician acceptance, endorsement, and use of AMS products; potential product recalls or technological obsolescence; successfully managing increased debt leverage and related credit facility financial covenants; the impact of current worldwide economic conditions on our operations, the disruption in global financial markets potential impact on the ability of our counterparties to perform their obligations and our ability to obtain future financing, factors impacting the stock market and share price and its impact on the dilution of convertible securities; changes in the accounting method for convertible debt securities; potential obligations to make significant contingent payments under prior acquisitions; ability of the Company’s manufacturing facilities to meet customer demand; reliance on single or sole-sourced suppliers; loss or impairment of a principal manufacturing facility; clinical and regulatory matters; timing and success of new product introductions; patient acceptance of the Company’s products and therapies; changes in and adoption of reimbursement rates; adequate protection of the Company’s intellectual property rights; product liability claims; currency and other economic risks inherent in selling our products internationally and other risks and uncertainties described in the Company’s Annual Report on Form 10-K for the year ended December 29, 2007, and its other SEC filings. Actual results may differ materially from anticipated results. The forward-looking statements contained in this press release are made as of the date hereof, and AMS undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.
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More information about the Company and its products can be found at its websitewww.AmericanMedicalSystems.com and in the Company’s Annual Report on Form 10-K for 2007 and its other SEC filings.
| | | |
Contact: | | Mark Heggestad |
| | | Executive Vice President and Chief Financial Officer |
| | | 952-930-6495 |
| | | Mark.Heggestad@AmericanMedicalSystems.com |
| | | |
| | | Anthony Bihl |
| | | President and Chief Executive Officer |
| | | 952-930-6334 |
| | | Tony.Bihl@AmericanMedicalSystems.com |
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American Medical Systems Holdings, Inc.
Statements of Operations
(Unaudited)
(In thousands, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 27, | | | September 29, | | | September 27, | | | September 29, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| Net sales | | $ | 117,468 | | | $ | 109,041 | | | $ | 367,627 | | | $ | 333,879 | |
| Cost of sales | | | 24,863 | | | | 24,441 | | | | 83,038 | | | | 77,925 | |
| | | | | | | | | | | | | |
| Gross profit | | | 92,605 | | | | 84,600 | | | | 284,589 | | | | 255,954 | |
| | | | | | | | | | | | | | | | | |
| Operating expenses | | | | | | | | | | | | | | | | |
| Marketing and selling | | | 42,226 | | | | 42,278 | | | | 133,608 | | | | 123,402 | |
| Research and development | | | 11,260 | | | | 9,918 | | | | 33,926 | | | | 32,047 | |
| In-process research and development | | | 7,500 | | | | — | | | | 7,500 | | | | — | |
| General and administrative | | | 9,728 | | | | 10,128 | | | | 30,435 | | | | 31,704 | |
| Integration costs | | | — | | | | — | | | | — | | | | 1,103 | |
| Amortization of intangibles | | | 4,334 | | | | 4,516 | | | | 12,981 | | | | 13,969 | |
| | | | | | | | | | | | | |
| Total operating expenses | | | 75,048 | | | | 66,840 | | | | 218,450 | | | | 202,225 | |
| | | | | | | | | | | | | | | | | |
| Operating income | | | 17,557 | | | | 17,760 | | | | 66,139 | | | | 53,729 | |
| | | | | | | | | | | | | | | | | |
| Other (expense) income | | | | | | | | | | | | | | | | |
| Royalty income | | | 745 | | | | 3,482 | | | | 3,576 | | | | 4,664 | |
| Interest income | | | 203 | | | | 333 | | | | 555 | | | | 962 | |
| Interest expense | | | (6,168 | ) | | | (9,460 | ) | | | (21,044 | ) | | | (28,681 | ) |
| Amortization of financing costs | | | (1,358 | ) | | | (1,130 | ) | | | (3,497 | ) | | | (2,667 | ) |
| Other income (expense) | | | (957 | ) | | | 736 | | | | 973 | | | | 2,710 | |
| | | | | | | | | | | | | |
| Total other (expense) income | | | (7,535 | ) | | | (6,039 | ) | | | (19,437 | ) | | | (23,012 | ) |
| | | | | | | | | | | | | | | | | |
| Income from continuing operations before income taxes | | | 10,022 | | | | 11,721 | | | | 46,702 | | | | 30,717 | |
| | | | | | | | | | | | | | | | | |
| Provision for income taxes | | | 4,288 | | | | 4,796 | | | | 18,763 | | | | 12,083 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net income from continuing operations | | | 5,734 | | | | 6,925 | | | | 27,939 | | | | 18,634 | |
| | | | | | | | | | | | | | | | | |
| Loss from discontinued operations, net of tax | | | — | | | | — | | | | — | | | | (691 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Net income | | $ | 5,734 | | | $ | 6,925 | | | $ | 27,939 | | | $ | 17,943 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net income (loss) per share | | | | | | | | | | | | | | | | |
| Basic net income from continuing operations | | $ | 0.08 | | | $ | 0.10 | | | $ | 0.38 | | | $ | 0.26 | |
| Discontinued operations, net of tax | | | — | | | | — | | | | — | | | | (0.01 | ) |
| | | | | | | | | | | | | |
| Basic net income | | $ | 0.08 | | | $ | 0.10 | | | $ | 0.38 | | | $ | 0.25 | |
| | | | | | | | | | | | | |
| Diluted net income from continuing operations | | $ | 0.08 | | | $ | 0.09 | | | $ | 0.38 | | | $ | 0.25 | |
| Discontinued operations, net of tax | | | — | | | | — | | | | — | | | | (0.01 | ) |
| | | | | | | | | | | | | |
| Diluted net income | | $ | 0.08 | | | $ | 0.09 | | | $ | 0.38 | | | $ | 0.24 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Weighted average common shares used in calculation | | | | | | | | | | | | | | | | |
| Basic | | | 73,095 | | | | 72,166 | | | | 72,796 | | | | 72,001 | |
| Diluted | | | 74,209 | | | | 73,740 | | | | 73,945 | | | | 73,605 | |
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American Medical Systems Holdings, Inc.
Condensed Balance Sheets
(In thousands)
| | | | | | | | | |
| | | September 27, 2008 | | | December 29, 2007 | |
| | | (Unaudited) | | | | | |
| Assets | | | | | | | | |
| Current assets | | | | | | | | |
| Cash and short-term investments | | $ | 35,803 | | | $ | 35,181 | |
| Accounts receivable, net | | | 92,408 | | | | 106,457 | |
| Inventories, net | | | 44,957 | | | | 60,707 | |
| Other current assets | | | 14,020 | | | | 23,040 | |
| | | | | | | |
| Total current assets | | | 187,188 | | | | 225,385 | |
| | | | | | | | | |
| Property, plant and equipment, net | | | 49,279 | | | | 53,126 | |
| Goodwill and intangibles, net | | | 821,514 | | | | 834,267 | |
| Deferred taxes and other assets | | | 1,721 | | | | 3,655 | |
| | | | | | | |
| Total assets | | $ | 1,059,702 | | | $ | 1,116,433 | |
| | | | | | | |
| |
| Liabilities and stockholders’ equity | | | | | | | | |
| Current liabilities | | | | | | | | |
| Accounts payable | | $ | 8,635 | | | $ | 13,364 | |
| Accrued liabilities and taxes | | | 41,539 | | | | 68,723 | |
| | | | | | | |
| Total current liabilities | | | 50,174 | | | | 82,087 | |
| | | | | | | | | |
| Debt and other long-term liabilities | | | 636,353 | | | | 706,156 | |
| | | | | | | |
| Total liabilities | | | 686,527 | | | | 788,243 | |
| | | | | | | | | |
| Stockholders’ equity | | | 373,175 | | | | 328,190 | |
| | | | | | | |
| Total liabilities and stockholders’ equity | | $ | 1,059,702 | | | $ | 1,116,433 | |
| | | | | | | |
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American Medical Systems Holdings, Inc.
Condensed Statements of Cash Flows
(Unaudited)
(In thousands)
| | | | | | | | | |
| | | Nine Months Ended | |
| | | September 27, | | | September 29, | |
| | | 2008 | | | 2007 | |
| Cash flows from operating activities | | | | | | | | |
| Net income from continuing operations | | $ | 27,939 | | | $ | 18,634 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
| Depreciation and amortization, including financing costs | | | 24,450 | | | | 22,850 | |
| Other adjustments, including changes in operating assets and liabilities | | | 26,238 | | | | (13,680 | ) |
| | | | | | | |
| Net cash provided by operating activities | | | 78,627 | | | | 27,804 | |
| | | | | | | | | |
| Cash flows from investing activities | | | | | | | | |
| Purchase of property, plant and equipment | | | (4,139 | ) | | | (13,930 | ) |
| Acquisition or divestiture of business, net of cash acquired | | | 4,690 | | | | 20,894 | |
| Other cash flows from investing activities | | | (29,862 | ) | | | (506 | ) |
| | | | | | | |
| Net cash (used in) provided by investing activities | | | (29,311 | ) | | | 6,458 | |
| | | | | | | | | |
| Cash flows from financing activities | | | | | | | | |
| Payments on long-term debt | | | (79,018 | ) | | | (48,919 | ) |
| Other cash flows from financing activities | | | 8,623 | | | | 10,272 | |
| | | | | | | |
| Net cash used in financing activities | | | (70,395 | ) | | | (38,647 | ) |
| | | | | | | | | |
| Cash used in discontinued operations | | | — | | | | (691 | ) |
| | | | | | | | | |
| Effect of currency exchange rates on cash | | | (152 | ) | | | (363 | ) |
| | | | | | | |
| | | | | | | | | |
| Net (decrease) increase in cash and cash equivalents | | | (21,231 | ) | | | (5,439 | ) |
| | | | | | | | | |
| Cash and cash equivalents at beginning of period | | | 34,044 | | | | 29,051 | |
| | | | | | | |
| | | | | | | | | |
| Cash and cash equivalents at end of period | | $ | 12,813 | | | $ | 23,612 | |
| | | | | | | |
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American Medical Systems Holdings, Inc.
Selected Sales Information
(Unaudited)
(In thousands)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 27, | | | September 29, | | | September 27, | | | September 29, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| Sales | | | | | | | | | | | | | | | | |
| Men’s health | | $ | 78,163 | | | $ | 73,916 | | | $ | 246,703 | | | $ | 225,854 | |
| Women’s health | | | 39,305 | | | | 35,125 | | | | 120,924 | | | | 108,025 | |
| | | | | | | | | | | | | |
| |
| Total | | $ | 117,468 | | | $ | 109,041 | | | $ | 367,627 | | | $ | 333,879 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Geography | | | | | | | | | | | | | | | | |
| United States | | $ | 84,489 | | | $ | 78,992 | | | $ | 258,700 | | | $ | 243,068 | |
| International | | | 32,979 | | | | 30,049 | | | | 108,927 | | | | 90,811 | |
| | | | | | | | | | | | | |
| |
| Total | | $ | 117,468 | | | $ | 109,041 | | | $ | 367,627 | | | $ | 333,879 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Percent of total sales | | | | | | | | | | | | | | | | |
| Men’s health | | | 67 | % | | | 68 | % | | | 67 | % | | | 68 | % |
| Women’s health | | | 33 | % | | | 32 | % | | | 33 | % | | | 32 | % |
| |
| Total | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Geography | | | | | | | | | | | | | | | | |
| United States | | | 72 | % | | | 72 | % | | | 70 | % | | | 73 | % |
| International | | | 28 | % | | | 28 | % | | | 30 | % | | | 27 | % |
| | | | | | | | | | | | | |
| |
| Total | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % |
| | | | | | | | | | | | | |
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American Medical Systems Holdings, Inc.
Reconciliation of Reported Net Income from Continuing Operations to Non-GAAP Cash Earnings per Share
(Adjustments are presented on a pre-tax basis)
(Unaudited)
(In thousands, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 27, | | | September 29, | | | September 27, | | | September 29, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| Net income from continuing operations, as reported | | $ | 5,734 | | | $ | 6,925 | | | $ | 27,939 | | | $ | 18,634 | |
| | | | | | | | | | | | | | | | | |
| In-process research and development charge, net of tax (a) | | | 4,604 | | | | — | | | | 4,604 | | | | — | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net income from continuing operations, as adjusted | | | 10,338 | | | | 6,925 | | | | 32,543 | | | | 18,634 | |
| | | | | | | | | | | | | | | | | |
| Adjustments to net income from continuing operations, as adjusted: | | | | | | | | | | | | | | | | |
| Amortization of intangibles (b) | | | 4,334 | | | | 4,516 | | | | 12,981 | | | | 13,969 | |
| Amortization of financing costs (c) | | | 1,358 | | | | 1,130 | | | | 3,497 | | | | 2,667 | |
| Stock based compensation (d) | | | 2,524 | | | | 3,376 | | | | 7,135 | | | | 9,142 | |
| | | | | | | | | | | | | |
| Adjustments to net income from continuing operations, as adjusted | | | 8,216 | | | | 9,022 | | | | 23,613 | | | | 25,778 | |
| Tax effect of adjustments to net income from continuing operations, as adjusted (e) | | | (3,369 | ) | | | (3,692 | ) | | | (9,445 | ) | | | (10,140 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Total tax effected adjustments to net income from continuing operations, as adjusted | | | 4,847 | | | | 5,330 | | | | 14,168 | | | | 15,638 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Cash earnings | | $ | 15,185 | | | $ | 12,255 | | | $ | 46,711 | | | $ | 34,272 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Cash earnings per share | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.21 | | | $ | 0.17 | | | $ | 0.64 | | | $ | 0.48 | |
| Diluted | | $ | 0.20 | | | $ | 0.17 | | | $ | 0.63 | | | $ | 0.47 | |
| | | | | | | | | | | | | | | | | |
| Weighted average common shares used in calculation: | | | | | | | | | | | | | | | | |
| Basic | | | 73,095 | | | | 72,166 | | | | 72,796 | | | | 72,001 | |
| Diluted | | | 74,209 | | | | 73,740 | | | | 73,945 | | | | 73,605 | |
| | |
| (a) | | Relates to milestone payment made in the third quarter of 2008 on the 2006 acquisition of BioControl Medical, Ltd., net of tax. |
| |
| (b) | | Consists of amortization of intangible assets, primarily developed and core technology. |
| |
| (c) | | Consists of amortization of financing costs on long-term debt. |
| |
| (d) | | Consists of stock based compensation, in accordance with SFAS 123(R). |
| |
| (e) | | Includes the tax effect of items (b) — (d). |
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