Exhibit 99.1
ST. JUDE MEDICAL REPORTS FIRST QUARTER SALES AND EARNINGS
St. Paul, MN, April 20, 2005 — St. Jude Medical, Inc. (NYSE:STJ) today reported results for the first quarter ended March 31, 2005. The Company reported net sales of $664 million, an increase of 21% compared to the $549 million reported in the first quarter of 2004. Favorable foreign currency translation comparisons increased first quarter sales by about $15 million.
Reported net earnings for the first quarter of 2005 were $119 million or $.32 per diluted share, compared to $95 million, or $.26 per diluted share in the first quarter of 2004. During the first quarter of 2005, St. Jude Medical recorded a special charge for the purchase of in-process research and development of approximately $12 million in conjunction with the completion of the acquisition of Endocardial Solutions, Inc. Net earnings for the first quarter, excluding this non-recurring item, were $132 million or $.35 per diluted share, an increase of 35% over the $.26 per diluted share reported in the comparable quarter of 2004.
First quarter ICD product sales were $206 million, a 72% increase over the comparable quarter of 2004, underscoring the continued benefit to St. Jude Medical of its highly competitive CRT-D products in the U.S. and in other major markets around the world. First quarter pacemaker sales were $217 million, a 3% decrease from the comparable quarter of 2004, consistent with a trend in the U.S. market toward the use of ICD products in patients who previously would have received a pacemaker.
Atrial fibrillation product sales for the first quarter totaled $59 million, a 55% increase over the first quarter of 2004. Sales of atrial fibrillation products in 2005 include sales from businesses acquired since the first quarter of 2004. Total sales of cardiology products for the first quarter were $110 million, a 15% increase over 2004. Within this category of products, vascular sealing device sales for the first quarter of 2005 totaled $83 million, a 19% increase over the first quarter of last year.
Total cardiac surgery sales for the first quarter of 2005 were $72 million, including heart valve product sales of approximately $67 million. This compares with total cardiac surgery sales of $73 million and heart valve product sales of $67 million in the first quarter of last year.
Commenting on first quarter 2005 results, St. Jude Medical Chairman, President and Chief Executive Officer Daniel J. Starks said, “We are off to a great start in 2005. This quarter’s ICD sales represent a clear gain in market share. Our structured continuous improvement programs continue to pay off as reflected in our expanding gross profit margin and our EPS growth.”
During a conference call, St. Jude Medical will provide sales and earnings guidance for the second quarter and full year 2005. The Company expects consolidated EPS for the second quarter of 2005 to be in the range of $.35 to $.37 per diluted share and for the full year 2005 in the range of $1.39 to $1.43, excluding the impact of non-recurring items.
St. Jude Medical’s 1st quarter earnings conference call will be live (also archived for 90 days) on the following website:
http://phx.corporate-ir.net/phoenix.zhtml?c=73836&p=irol-EventDetails&Eventld =956659.
Any statements made regarding St. Jude Medical’s anticipated future product launches, regulatory approvals, revenues, earnings, market shares, and potential clinical success are forward-looking statements which are subject to risks and uncertainties, such as those described in the Financial Section of the Company’s Annual Report to Shareholders for the fiscal year ended December 31, 2004 (see pages 11-16). Actual results may differ materially from anticipated results.
St. Jude Medical, Inc. (www.sjm.com) is dedicated to the design, manufacture and distribution of innovative medical devices of the highest quality, offering physicians, patients and payers outstanding clinical performance and demonstrated economic value.
St. Jude Medical, Inc.
Condensed Consolidated Statements of Earnings
(Data in Thousands, Except EPS)
(Unaudited)
Three Months Ended March 31, 2005 | Three Months Ended March 31, 2004 | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Reported | Purchased R&D Expense | Before Purchased R&D Expense | Reported | |||||||||||
Net sales | $ | 663,909 | — | $ | 663,909 | $ | 548,576 | |||||||
Cost of sales | 187,883 | — | 187,883 | 164,245 | ||||||||||
Gross profit | 476,026 | — | 476,026 | 384,331 | ||||||||||
Selling, general & administrative | 219,047 | — | 219,047 | 187,549 | ||||||||||
Research & development | 76,985 | — | 76,985 | 65,580 | ||||||||||
Purchased R&D | 12,400 | (12,400 | ) | 0 | 0 | |||||||||
Operating profit | 167,594 | 12,400 | 179,994 | 131,202 | ||||||||||
Other income (expense) | 1,732 | — | 1,732 | (1,565 | ) | |||||||||
Earnings before taxes | 169,326 | 12,400 | 181,726 | 129,637 | ||||||||||
Income tax provision | 49,975 | — | 49,975 | 34,483 | ||||||||||
Net earnings | $ | 119,351 | $ | 12,400 | $ | 131,751 | $ | 95,154 | ||||||
Earnings per share | ||||||||||||||
Basic | $ | 0.33 | $ | 0.03 | $ | 0.37 | $ | 0.27 | ||||||
Diluted | $ | 0.32 | $ | 0.03 | $ | 0.35 | $ | 0.26 | ||||||
Basic shares outstanding | 360,304 | 360,304 | 360,304 | 349,174 | ||||||||||
Diluted shares outstanding | 375,529 | 360,304 | 375,529 | 368,244 |
Condensed Consolidated Balance Sheets
(Data in Thousands)
(Unaudited)
March 31, 2005 | Dec. 31, 2004 | |||||||
---|---|---|---|---|---|---|---|---|
Cash & cash equivalents | $ | 686,190 | $ | 688,040 | ||||
Accounts receivable, net | 669,950 | 630,983 | ||||||
Inventories | 336,152 | 330,873 | ||||||
Other current assets | 227,525 | 213,321 | ||||||
Property, plant & equipment, net | 338,660 | 326,981 | ||||||
Goodwill | 790,291 | 593,799 | ||||||
Other intangible assets, net | 250,112 | 207,096 | ||||||
Other assets | 243,935 | 239,654 | ||||||
Total assets | $ | 3,542,815 | $ | 3,230,747 | ||||
Current liabilities | $ | 593,515 | $ | 605,393 | ||||
Long-term debt | 418,158 | 234,865 | ||||||
Deferred income taxes | 42,030 | 56,561 | ||||||
Total equity | 2,489,112 | 2,333,928 | ||||||
Total liabilities & equity | $ | 3,542,815 | $ | 3,230,747 |