Exhibit 99.1
Contacts: Martin J. Landon – Investors
KCI
(210) 255-6494
Elliot Sloane – Media
Sloane & Company
(212) 446-1860
KINETIC CONCEPTS REPORTS
FOURTH QUARTER AND YEAR-END
FINANCIAL RESULTS FOR 2005
Fourth Quarter Highlights
- Net earnings increased 36% to $46.4 million
- Net earnings per diluted share increased 36% to $0.64 per share
- Total revenue increased 18% to $322.0 million
- U.S. V.A.C. revenue increased 24% to $194.4 million
2005 Full-Year Highlights
- Total revenue increased 22% to $1.21 billion
- U.S. V.A.C. revenue increased approximately 25% to $706.0 million
- Net earnings of $122.2 million, including litigation settlement expense, increased 27% over
the prior year
- Net earnings per diluted share of $1.67, including litigation settlement expense, increased 271% over
the prior year
San Antonio, Texas, January 30, 2006 – Kinetic Concepts, Inc. (NYSE: KCI) today reported fourth quarter 2005 total revenue of $322.0 million, an increase of 18% from the fourth quarter of 2004, and full-year 2005 total revenue of $1.21 billion, an increase of 22% over the prior year. Excluding foreign currency exchange movements, total revenue for the fourth quarter and the full year 2005 increased 19% and 21%, respectively, compared to the corresponding periods of the prior year.
Net earnings for the fourth quarter of 2005 were $46.4 million, an increase of 36% over net earnings of $34.2 million for the same period one year ago. For the year, net earnings were $122.2 million, a 27% increase over the prior year. Earnings per diluted share for the fourth quarter of 2005 were $0.64, compared to net earnings per diluted share of $0.47 for the same period in the prior year. For the year, the Company reported net earnings per diluted share of $1.67, including litigation settlement expense of $0.65 per share, compared to net earnings per diluted share of $0.45 for 2004, including expenses associated with stock offerings and debt prepayments of $1.22 per diluted share.
"During the fourth quarter, we continued to successfully execute on our plan to bring KCI’s proven V.A.C. therapy to patients in need,” stated Dennert O. Ware, President and Chief Executive Officer of KCI. “We generated strong profits and cash flows during the period in spite of changes in the U.S. competitive environment, year-end budget constraints internationally and unfavorable currency movements.”
Revenue Recap – Fourth Quarter 2005
Domestic revenue for the fourth quarter of 2005 was $239.7 million, an increase of 19% from the prior-year period due to increased rental and sales volumes for V.A.C. wound healing devices and related disposables. International revenue of $82.3 million increased 14% compared to the prior-year period. Excluding the effects of foreign currency exchange movements, international revenue increased 19%, during the fourth quarter.
Worldwide V.A.C. revenue was $248.6 million for the fourth quarter of 2005, an increase of 25% from the prior-year period. Foreign currency exchange movements negatively impacted worldwide V.A.C. revenue by 1%, compared to the fourth quarter of the prior year. The growth in V.A.C. revenue stemmed from volume increases driven by our continued focus on marketing and selling efforts, which are raising customer awareness.
Worldwide surfaces revenue was $73.4 million for the fourth quarter of 2005, a decrease of 2% from the prior-year period. Unfavorable currency exchange rate movements accounted for all of the fourth quarter 2004 surface revenue decrease.
Revenue Recap - Year Ended 2005
Domestic revenue for 2005 was $886.2 million, a 19% increase from 2004 due directly to increased rental and sales volumes for V.A.C. wound healing devices and related disposables. International revenue of $322.4 million increased 30% compared to 2004 due primarily to higher V.A.C. unit volumes. Foreign currency exchange movements favorably impacted international revenue by 3% during 2005.
Worldwide V.A.C. revenue was $907.5 million for 2005, an increase of 30% from the prior year due primarily to increased rental and sales volumes. Foreign currency exchange movements favorably impacted 2005 worldwide V.A.C. revenue by approximately 1%.
Worldwide surfaces revenue was $301.0 million for 2005, an increase of 3% from the prior year due primarily to higher international sales, particularly in Canada. For the year, foreign currency exchange movements accounted for approximately 1% of the worldwide surfaces revenue increase.
Income Tax Rate
The effective income tax rate was 34.0% for the fourth quarter and full-year 2005 compared to 34.6% and 35.5%, respectively, for each of the same periods in 2004. The income tax rate reduction is primarily attributable to a higher portion of taxable income being generated in lower tax jurisdictions.
Outlook
The following guidance is based on current information and expectations as of January 30, 2006:
| 2005 |
| 2005 |
| 2006 |
| % |
(in millions, except EPS) | Actual |
| (Non GAAP) (1) |
| Forecast |
| Increase |
Revenue | $ 1,209 |
| $ 1,209 |
| $1,340 – $1,390 |
| 11% – 15% |
Net Earnings | $ 122 |
| $ 170 |
| $ 190 – $ 200 |
| 12% – 18% |
Diluted EPS | $ 1.67 |
| $ 2.32 |
| $ 2.59 – $ 2.69 |
| 12% – 16% |
Diluted Shares | 73.0 |
| 73.0 |
| 73.5 – 74.5 |
| 1% – 2% |
KCI currently projects full year 2006 revenue of $1.34 – $1.39 billion based on continued demand for its V.A.C. negative pressure wound therapy devices and related supplies. While KCI continues to expand the V.A.C. market and currently projects double-digit growth in 2006, the revenue growth rate for 2006 is expected to be lower than 2005 due, in part, to lower reimbursement for negative pressure wound therapy supplies under Medicare Part B and the current competitive environment. Therapeutic surfaces revenue for 2006 is expected to be in a range consistent with historical levels. Net earnings per diluted share for 2006 are currently projected to be $2.59 – $2.69, based on a weighted average share estimate of 73.5 – 74.5 million shares. Also, the 2006 net earnings forecast includes after-tax expenses of approximately $7.0 – $8.0 million, or $0.10 – $0.11 per share, related to the recognition of stock-based compensation expense under Statement of Financial Accounting Standards No. 123-R. It is the Company’s practice to provide guidance on a full-year basis, however, it is important to note that we typically experience a seasonal fluctuation in sequential growth from the fourth quarter of each year to the first quarter of the following year. With the influence of these factors, the Company expects that the first quarter 2006 revenue will approximate, or be slightly higher than, fourth quarter 2005.
(1)Within this press release, we have presented income statement items on a non-GAAP basis to exclude the impact of the 2005 Novamedix litigation settlement and income and expenses and the acceleration of the in-kind preferred stock dividends incurred as a result of the 2004 stock offerings and debt prepayments. These non-GAAP financial measures do not replace the presentation of our GAAP financial results. We have provided this supplemental non-GAAP information because it may provide meaningful information regarding our results on a basis that better facilitates comparisons between the periods presented. Management uses this non-GAAP financial information, along with GAAP information, for reviewing the operating results of its business segments and for analyzing potential future business trends. In addition, we believe some investors may use this information in a similar fashion. A reconciliation of our GAAP income statement for the periods presented to the non-GAAP financial information provided is included herein. See the attached Reconciliation of Non-GAAP Condensed Consolidated Statements of Earnings.
Earnings Release Conference Call
As previously announced, the Company has scheduled an earnings release conference call for 8:30 a.m. eastern standard time today, Monday, January 30, 2006. The dial-in numbers for this conference call are as follows:
Domestic Dial-in Number: | 866-271-6130 |
International Dial-in Number: | +617-213-8894 |
Participant Code: | 29062124 |
This call is being webcast by CCBN and can be accessed at the Kinetic Concepts Inc. web site at http://www.kci1.com/investor/index.asp, and clicking on Web cast – Q4 2005 Kinetic Concepts Earnings Call. The webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.fulldisclosure.com and institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com). An archive of the webcast will be available at http://www.kci1.com/investor/index.asp until January 29, 2007.
KCI's business outlook as of today is expected to be available on KCI's Investor Relations web site. It is currently expected that a business outlook update will not be announced until the release of KCI's next quarterly earnings announcement, notwithstanding subsequent developments. However, although KCI undertakes no duty to update its business outlook, KCI may update the full business outlook or any portion thereof at any time.
About KCI
Kinetic Concepts Inc. is a global medical technology company with leadership positions in advanced wound care and therapeutic surfaces. We design, manufacture, market and service a wide range of proprietary products that can significantly improve clinical outcomes while reducing the overall cost of patient care by accelerating the healing process or preventing complications. Our advanced wound care systems incorporate our proprietary Vacuum Assisted Closureâ, or V.A.C.â, technology, which has been clinically demonstrated to promote wound healing and reduce the cost of treating patients with difficult-to-treat wounds. Our therapeutic surfaces, including specialty hospital beds, mattress replacement systems and overlays, are designed to address complications associated with immobility and obesity, such as pressure sores and pneumonia. We have an infrastructure designed to meet the specific needs of medical professionals and patients across all health care settings including acute care hospitals, extended care facilities and patients' homes both in the United States and abroad.
Forward-Looking Statements
This press release contains forward-looking statements including, among other things, management's estimates of future performance, revenue and earnings growth objectives and potential market. The forward-looking statements contained herein are based on our current expectations and are subject to a number of risks and uncertainties which could cause us to fail to achieve our current financial projections and other expectations, such as a change in the demand for the V.A.C. resulting from increased competition, a change in payer reimbursement policies, our ability to protect our intellectual property rights and general economic conditions. All information set forth in this release and its attachments is as of January 30, 2006. We undertake no duty to update this information. More information about potential factors that could cause our results to differ or adversely affect our business and financial results is included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2004, and our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2005, including, among other sections, under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which is on file with the SEC and available at the SEC's website at www.sec.gov. Additional information will also be set forth in those sections in our Annual Report on Form 10-K for the fiscal year ended December 31, 2005, which will be filed with the SEC in the first quarter of 2006.
KINETIC CONCEPTS, INC. AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Earnings | |||||||
(in thousands, except per share data) | |||||||
(unaudited) | |||||||
|
|
| |||||
|
|
| |||||
| Three months ended December 31, | Year ended December 31, | |||||
|
|
| % |
|
|
| % |
| 2005 | 2004 | Change | 2005 |
| 2004 | Change |
Revenue: |
|
|
|
|
|
|
|
Rental | $ 229,366 | $ 196,659 | 16.6 % | $ 858,098 |
| $ 726,783 | 18.1 % |
Sales | 92,659 | 76,996 | 20.3 | 350,458 |
| 265,853 | 31.8 |
| _______ | _______ |
| _______ |
| _______ |
|
Total revenue | 322,025 | 273,655 | 17.7 % | 1,208,556 |
| 992,636 | 21.8 % |
|
|
|
|
|
|
|
|
Rental expenses | 133,588 | 124,373 | 7.4 | 528,000 |
| 447,765 | 17.9 |
Cost of goods sold | 24,635 | 18,636 | 32.2 | 89,317 |
| 70,780 | 26.2 |
| _______ | _______ |
| _______ |
| _______ |
|
Gross profit | 163,802 | 130,646 | 25.4 % | 591,239 |
| 474,091 | 24.7 % |
|
|
|
|
|
|
|
|
Selling, general and administrative expenses | 78,127 | 65,805 | 18.7 | 279,621 |
| 232,981 | 20.0 |
Research and development expenses | 9,917 | 9,461 | 4.8 | 30,614 |
| 31,312 | (2.2) |
Litigation settlement expense | - | - | - | 72,000 |
| - | - |
Initial public offering expenses | - | - | - | - |
| 19,836 | - |
Secondary offering expenses | - | - | - | - |
| 2,219 | - |
| _______ | _______ |
| _______ |
| _______ |
|
Operating earnings | 75,758 | 55,380 | 36.8 % | 209,004 |
| 187,743 | 11.3 % |
|
|
|
|
|
|
|
|
Interest income and other | 667 | 390 | 71.0 | 4,189 |
| 1,133 | 269.7 |
Interest expense | (6,254) | (7,175) | 12.8 | (25,152) |
| (44,635) | 43.6 |
Foreign currency gain (loss) | 82 | 3,652 | (97.8) | (2,958) |
| 5,353 | - |
| _______ | _______ |
| _______ |
| _______ |
|
Earnings before income taxes | 70,253 | 52,247 | 34.5 % | 185,083 |
| 149,594 | 23.7 % |
|
|
|
|
|
|
|
|
Income taxes | 23,886 | 18,061 | 32.3 | 62,928 |
| 53,106 | 18.5 |
| _______ | _______ |
| _______ |
| _______ |
|
Net earnings | $ 46,367 | $ 34,186 | 35.6 % | $ 122,155 |
| $ 96,488 | 26.6 % |
|
|
|
|
|
|
|
|
Series A convertible preferred stock dividends | - | - | - | - |
| (65,604) | - |
| _______ | _______ |
| _______ |
| _______ |
|
Net earnings available to |
|
|
|
|
|
|
|
common shareholders | $ 46,367 | $ 34,186 | 35.6 % | $ 122,155 |
| $ 30,884 | 295.5 % |
| _______ | _______ |
| _______ |
| _______ |
|
Net earnings per share available |
|
|
|
|
|
|
|
to common shareholders: |
|
|
|
|
|
|
|
Basic | $ 0.66 | $ 0.50 | 32.0 % | $ 1.76 |
| $ 0.49 | 259.2 % |
| _______ | _______ |
| _______ |
| _______ |
|
Diluted (1) | $ 0.64 | $ 0.47 | 36.2 % | $ 1.67 |
| $ 0.45 | 271.1 % |
| _______ | _______ |
| _______ |
| _______ |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
Basic | 69,922 | 68,104 |
| 69,404 |
| 62,599 |
|
| _______ | _______ |
| _______ |
| _______ |
|
Diluted (1) | 72,993 | 72,560 |
| 73,024 |
| 67,918 |
|
| _______ | _______ |
| _______ |
| _______ |
|
|
|
|
|
|
|
|
|
(1) Due to their antidilutive effect, 2,990 dilutive potential common shares from the preferred stock conversion have been excluded from the diluted weighted | |||||||
average shares calculation for the year ended December 31, 2004. | |||||||
| |||||||
|
KINETIC CONCEPTS, INC. AND SUBSIDIARIES | |||||||
Reconciliation of Non-GAAP Condensed Consolidated Statements of Earnings (1) | |||||||
For the year ended December 31, | |||||||
(in thousands, except per share data) | |||||||
(unaudited) | |||||||
| |||||||
| 2005 | 2004 | |||||
|
|
|
|
|
| Excluding |
|
|
|
|
|
| Costs and | Costs and |
|
|
|
|
|
| Expenses | Expenses |
|
|
|
|
|
| Related to | Related to |
|
|
|
| Excluding |
| Offerings | Offerings |
|
|
| Litigation | Litigation |
| and Debt | and Debt |
|
|
| Settlement | Settlement |
| Prepayments | Prepayments | % |
| GAAP | (non-GAAP) | (non-GAAP) | GAAP | (non-GAAP) | (non-GAAP) | Change (2) |
Revenue: |
|
|
|
|
|
|
|
Rental | $ 858,098 | $ - | $ 858,098 | $ 726,783 | $ - | $ 726,783 | 18.1 % |
Sales | 350,458 | - | 350,458 | 265,853 | - | 265,853 | 31.8 |
| _______ | ______ | _______ | _______ | _______ | _______ |
|
Total revenue | 1,208,556 | - | 1,208,556 | 992,636 | - | 992,636 | 21.8 % |
|
|
|
|
|
|
|
|
Rental expenses | 528,000 | - | 528,000 | 447,765 | - | 447,765 | 17.9 |
Cost of goods sold | 89,317 | - | 89,317 | 70,780 | - | 70,780 | 26.2 |
| _______ | ______ | _______ | _______ | _______ | _______ |
|
Gross profit | 591,239 | - | 591,239 | 474,091 | - | 474,091 | 24.7 % |
|
|
|
|
|
|
|
|
Selling, general and |
|
|
|
|
|
|
|
administrative expenses | 279,621 | - | 279,621 | 232,981 | - | 232,981 | 20.0 |
Research and development |
|
|
|
|
|
|
|
expenses | 30,614 | - | 30,614 | 31,312 | - | 31,312 | (2.2) |
Litigation settlement expense | 72,000 | (72,000) | - | - | - | - | - |
Initial public offering expenses | - | - | - | 19,836 | (19,836) | - | - |
Secondary offering expenses | - | - | - | 2,219 | (2,219) | - | - |
| _______ | ______ | _______ | _______ | _______ | _______ |
|
Operating earnings | 209,004 | 72,000 | 281,004 | 187,743 | 22,055 | 209,798 | 33.9 % |
|
|
|
|
|
|
|
|
Interest income and other | 4,189 | - | 4,189 | 1,133 | - | 1,133 | 269.7 |
Interest expense | (25,152) | - | (25,152) | (44,635) | 11,689 | (32,946) | 23.7 |
Foreign currency gain (loss) | (2,958) | - | (2,958) | 5,353 | - | 5,353 | - |
| _______ | ______ | _______ | _______ | _______ | _______ |
|
Earnings before income |
|
|
|
|
|
|
|
taxes | 185,083 | 72,000 | 257,083 | 149,594 | 33,744 | 183,338 | 40.2 % |
Income taxes | 62,928 | 24,559 | 87,487 | 53,106 | 11,979 | 65,085 | 34.4 |
| _______ | ______ | _______ | _______ | _______ | _______ |
|
Net earnings | $ 122,155 | $ 47,441 | $ 169,596 | $ 96,488 | $ 21,765 | $ 118,253 | 43.4 % |
Series A convertible preferred |
|
|
|
|
|
|
|
stock dividends | - | - | - | (65,604) | 65,604 | - | - |
| _______ | ______ | _______ | _______ | _______ | _______ |
|
Net earnings available to |
|
|
|
|
|
|
|
common shareholders | $ 122,155 | $ 47,441 | $ 169,596 | $ 30,884 | $ 87,369 | $ 118,253 | 43.4 % |
| _______ | ______ | _______ | _______ | _______ | _______ |
|
Net earnings per share |
|
|
|
|
|
|
|
available to common |
|
|
|
|
|
|
|
shareholders: |
|
|
|
|
|
|
|
Basic | $ 1.76 | $ 0.68 | $ 2.44 | $ 0.49 | $ 1.40 | $ 1.89 | 29.1 % |
| _______ | _______ | _______ | _______ | _______ | _______ |
|
Diluted (3) | $ 1.67 | $ 0.65 | $ 2.32 | $ 0.45 | $ 1.22 | $ 1.67 | 38.9 % |
| _______ | _______ | _______ | _______ | _______ | _______ |
|
Weighted average |
|
|
|
|
|
|
|
shares outstanding: |
|
|
|
|
|
|
|
Basic | 69,404 |
| 69,404 | 62,599 |
| 62,599 |
|
| _______ |
| _______ | _______ |
| _______ |
|
Diluted (3) | 73,024 |
| 73,024 | 67,918 |
| 70,908 |
|
| _______ |
| _______ | _______ |
| _______ |
|
| |||||||
(1) These non-GAAP financial measures do not replace the presentation of our GAAP financial results. See footnote (1) on page 2 of this press | |||||||
release for further discussion of our non-GAAP financial information. | |||||||
(2) The percentage change reflects the percentage variance between the 2005 non-GAAP results, excluding the litigation settlement, and the 2004 | |||||||
non-GAAP results, excluding costs and expenses related to offerings and debt prepayments. | |||||||
(3) Due to their antidilutive effect, 2,990 dilutive potential common shares from the preferred stock conversion have been excluded from the | |||||||
GAAP diluted weighted average shares calculation for the year ended December 31, 2004. | |||||||
|
KINETIC CONCEPTS, INC. AND SUBSIDIARIES | |||
(in thousands) | |||
(unaudited) | |||
|
|
|
|
| December 31, | ||
| 2005 |
| 2004 |
|
|
|
|
Assets: |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents | $ 123,383 |
| $ 124,366 |
Accounts receivable, net | 281,890 |
| 252,822 |
Inventories, net | 28,429 |
| 35,590 |
Deferred income taxes | 26,447 |
| 24,836 |
Prepaid expenses and other current assets | 16,908 |
| 13,296 |
| _______ |
| _______ |
Total current assets | 477,057 |
| 450,910 |
| _______ |
| _______ |
|
|
|
|
Net property, plant and equipment | 192,243 |
| 183,075 |
Debt issuance costs, less accumulated amortization of $12,709 |
|
|
|
in 2005 and $8,317 in 2004 | 7,545 |
| 11,937 |
Deferred income taxes | 6,895 |
| 7,913 |
Goodwill | 49,369 |
| 49,369 |
Other assets, less accumulated amortization of $9,310 in 2005 |
|
|
|
and $8,748 in 2004 | 29,002 |
| 29,261 |
| _______ |
| _______ |
| $ 762,111 |
| $ 732,465 |
| _______ |
| _______ |
Liabilities and Shareholders’ Equity: |
|
|
|
Current liabilities: |
|
|
|
Accounts payable | $ 43,853 |
| $ 43,246 |
Accrued expenses and other | 170,695 |
| 150,317 |
Current installments of long-term debt | 1,769 |
| 2,803 |
Income taxes payable | 18,619 |
| 20,821 |
| _______ |
| _______ |
Total current liabilities | 234,936 |
| 217,187 |
| _______ |
| _______ |
|
|
|
|
Long-term debt, net of current installments | 292,726 |
| 442,943 |
Deferred income taxes | 30,622 |
| 13,170 |
Other noncurrent liabilities | 12,361 |
| 8,364 |
| _______ |
| _______ |
| 570,645 |
| 681,664 |
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
Common stock; authorized 225,000 at 2005 and 2004; |
|
|
|
issued and outstanding 70,307 at 2005 and 68,694 at 2004 | 70 |
| 69 |
Preferred stock; authorized 50,000 at 2005 and 2004; |
|
|
|
issued and outstanding 0 at 2005 and 2004 | - |
| - |
Additional paid-in capital | 557,468 |
| 517,354 |
Deferred compensation | (6,880) |
| (1,906) |
Retained deficit | (365,916) |
| (488,071) |
Accumulated other comprehensive income | 6,724 |
| 23,355 |
| _______ |
| _______ |
Shareholders' equity | 191,466 |
| 50,801 |
| _______ |
| _______ |
| $ 762,111 |
| $ 732,465 |
| _______ |
| _______ |
KINETIC CONCEPTS, INC. AND SUBSIDIARIES |
| |||
Condensed Consolidated Statements of Cash Flows |
| |||
(in thousands) |
| |||
(unaudited) |
| |||
| Year ended December 31, |
| ||
| 2005 |
| 2004 |
|
Cash flows from operating activities: |
|
|
|
|
Net earnings | $ 122,155 |
| $ 96,488 |
|
Adjustments to reconcile net earnings to net cash provided |
|
|
|
|
by operating activities: |
|
|
|
|
Depreciation and amortization | 68,852 |
| 60,901 |
|
Provision for uncollectible accounts receivable | 17,435 |
| 12,346 |
|
Amortization of deferred gain on sale of headquarters facility | (1,070) |
| (1,070) |
|
Write-off of deferred debt issuance costs | 2,941 |
| 5,504 |
|
Non-cash amortization of stock awards | 1,874 |
| 442 |
|
Tax benefit related to exercise of stock options | 27,459 |
| 69,257 |
|
Change in assets and liabilities: |
|
|
|
|
Increase in accounts receivable, net | (45,554) |
| (63,649) |
|
Decrease (increase) in inventories, net | 7,352 |
| (2,874) |
|
Increase in current deferred income taxes, net | (1,611) |
| (2,087) |
|
Decrease (increase) in prepaid expenses and other current assets | (3,432) |
| 170 |
|
Increase in accounts payable | 720 |
| 9,090 |
|
Increase in accrued expenses and other | 24,872 |
| 44,664 |
|
Decrease in income taxes payable | (2,202) |
| (18,582) |
|
Increase (decrease) in deferred income taxes, net | 18,407 |
| (22,728) |
|
| _______ |
| _______ |
|
Net cash provided by operating activities | 238,198 |
| 187,872 |
|
| _______ |
| _______ |
|
Cash flows from investing activities: |
|
|
|
|
Additions to property, plant and equipment | (94,225) |
| (93,230) |
|
Decrease (increase) in inventory to be converted into equipment |
|
|
|
|
for short-term rental | 2,300 |
| (100) |
|
Dispositions of property, plant and equipment | 2,508 |
| 1,982 |
|
Business acquisitions, net of cash acquired | - |
| (1,247) |
|
Increase in other assets | (417) |
| (2,573) |
|
| _______ |
| _______ |
|
Net cash used by investing activities | (89,834) |
| (95,168) |
|
| _______ |
| _______ |
|
Cash flows from financing activities: |
|
|
|
|
Repayment of notes payable, long-term debt, capital lease |
|
|
|
|
and other obligations | (150,252) |
| (237,536) |
|
Proceeds from exercise of stock options, net | 9,276 |
| 15,352 |
|
Purchase of immature shares for minimum tax withholdings | (7,589) |
| - |
|
Proceeds from purchase of stock in ESPP | 4,113 |
| 1,815 |
|
Initial public offering of common stock: |
|
|
|
|
Proceeds from issuance of common stock | - |
| 105,000 |
|
Stock issuance costs | - |
| (10,604) |
|
| _______ |
| _______ |
|
Net cash used by financing activities | (144,452) |
| (125,973) |
|
| _______ |
| _______ |
|
Effect of exchange rate changes on cash and cash equivalents | (4,895) |
| 1,571 |
|
| _______ |
| _______ |
|
Net decrease in cash and cash equivalents | (983) |
| (31,698) |
|
Cash and cash equivalents, beginning of year | 124,366 |
| 156,064 |
|
| _______ |
| _______ |
|
Cash and cash equivalents, end of year | $ 123,383 |
| $ 124,366 |
|
| _______ |
| _______ |
|
Non-cash activity: |
|
|
|
|
Non-cash consideration for exercise of stock options | $ 7 |
| $ 6,480 |
|
|
|
|
|
|
KINETIC CONCEPTS, INC. AND SUBSIDIARIES | |||||||||
Supplemental Revenue Data | |||||||||
(in thousands) | |||||||||
(unaudited) | |||||||||
| |||||||||
| Three months ended December 31, |
| |||||||
|
|
|
|
|
| Variance |
| ||
| 2005 |
| 2004 |
|
| $ |
| % |
|
Total Revenue: |
|
|
|
|
|
|
|
|
|
V.A.C. |
|
|
|
|
|
|
|
|
|
Rental | $ 169,742 |
| $ 135,485 |
|
| $ 34,257 |
| 25.3 % |
|
Sales | 78,860 |
| 63,216 |
|
| 15,644 |
| 24.7 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total V.A.C. | 248,602 |
| 198,701 |
|
| 49,901 |
| 25.1 |
|
|
|
|
|
|
|
|
|
|
|
Therapeutic surfaces/other |
|
|
|
|
|
|
|
|
|
Rental | 59,624 |
| 61,174 |
|
| (1,550) |
| (2.5) |
|
Sales | 13,799 |
| 13,780 |
|
| 19 |
| 0.1 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total therapeutic surfaces/other | 73,423 |
| 74,954 |
|
| (1,531) |
| (2.0) |
|
|
|
|
|
|
|
|
|
|
|
Total rental revenue | 229,366 |
| 196,659 |
|
| 32,707 |
| 16.6 |
|
Total sales revenue | 92,659 |
| 76,996 |
|
| 15,663 |
| 20.3 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total Revenue | $ 322,025 |
| $ 273,655 |
|
| $ 48,370 |
| 17.7 % |
|
| _______ |
| _______ |
|
| _______ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA Revenue: |
|
|
|
|
|
|
|
|
|
V.A.C. |
|
|
|
|
|
|
|
|
|
Rental | $ 143,408 |
| $ 114,326 |
|
| $ 29,082 |
| 25.4 % |
|
Sales | 51,018 |
| 41,912 |
|
| 9,106 |
| 21.7 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
194,426 |
| 156,238 |
|
| 38,188 |
| 24.4 |
| |
|
|
|
|
|
|
|
|
|
|
Therapeutic surfaces/other |
|
|
|
|
|
|
|
|
|
Rental | 37,783 |
| 37,782 |
|
| 1 |
| - |
|
Sales | 7,539 |
| 7,650 |
|
| (111) |
| (1.5) |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total therapeutic surfaces/other | 45,322 |
| 45,432 |
|
| (110) |
| (0.2) |
|
|
|
|
|
|
|
|
|
|
|
Total USA rental | 181,191 |
| 152,108 |
|
| 29,083 |
| 19.1 |
|
Total USA sales | 58,557 |
| 49,562 |
|
| 8,995 |
| 18.1 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total – USA Revenue | $ 239,748 |
| $ 201,670 |
|
| $ 38,078 |
| 18.9 % |
|
| _______ |
| _______ |
|
| _______ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Revenue: |
|
|
|
|
|
|
|
|
|
V.A.C. |
|
|
|
|
|
|
|
|
|
Rental | $ 26,334 |
| $ 21,159 |
|
| $ 5,175 |
| 24.5 % |
|
Sales | 27,842 |
| 21,304 |
|
| 6,538 |
| 30.7 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total V.A.C. | 54,176 |
| 42,463 |
|
| 11,713 |
| 27.6 |
|
|
|
|
|
|
|
|
|
|
|
Therapeutic surfaces/other |
|
|
|
|
|
|
|
|
|
Rental | 21,841 |
| 23,392 |
|
| (1,551) |
| (6.6) |
|
Sales | 6,260 |
| 6,130 |
|
| 130 |
| 2.1 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total therapeutic surfaces/other | 28,101 |
| 29,522 |
|
| (1,421) |
| (4.8) |
|
|
|
|
|
|
|
|
|
|
|
Total International rental | 48,175 |
| 44,551 |
|
| 3,624 |
| 8.1 |
|
Total International sales | 34,102 |
| 27,434 |
|
| 6,668 |
| 24.3 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total – International Revenue | $ 82,277 |
| $ 71,985 |
|
| $ 10,292 |
| 14.3 % |
|
| _______ |
| _______ |
|
| _______ |
|
|
|
KINETIC CONCEPTS, INC. AND SUBSIDIARIES | |||||||||
Supplemental Revenue Data | |||||||||
(in thousands) | |||||||||
(unaudited) | |||||||||
| |||||||||
| Year ended December 31, |
| |||||||
|
|
|
|
|
| Variance |
| ||
| 2005 |
| 2004 |
|
| $ |
| % |
|
Total Revenue: |
|
|
|
|
|
|
|
|
|
V.A.C. |
|
|
|
|
|
|
|
|
|
Rental | $ 615,579 |
| $ 485,511 |
|
| $ 130,068 |
| 26.8 % |
|
Sales | 291,964 |
| 213,502 |
|
| 78,462 |
| 36.8 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total V.A.C. | 907,543 |
| 699,013 |
|
| 208,530 |
| 29.8 |
|
|
|
|
|
|
|
|
|
|
|
Therapeutic surfaces/other |
|
|
|
|
|
|
|
|
|
Rental | 242,519 |
| 241,272 |
|
| 1,247 |
| 0.5 |
|
Sales | 58,494 |
| 52,351 |
|
| 6,143 |
| 11.7 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total therapeutic surfaces/other | 301,013 |
| 293,623 |
|
| 7,390 |
| 2.5 |
|
|
|
|
|
|
|
|
|
|
|
Total rental revenue | 858,098 |
| 726,783 |
|
| 131,315 |
| 18.1 |
|
Total sales revenue | 350,458 |
| 265,853 |
|
| 84,605 |
| 31.8 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total Revenue | $1,208,556 |
| $ 992,636 |
|
| $ 215,920 |
| 21.8 % |
|
| _______ |
| _______ |
|
| _______ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA Revenue: |
|
|
|
|
|
|
|
|
|
V.A.C. |
|
|
|
|
|
|
|
|
|
Rental | $ 519,570 |
| $ 417,008 |
|
| $ 102,562 |
| 24.6 % |
|
Sales | 186,476 |
| 145,627 |
|
| 40,849 |
| 28.1 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total V.A.C. | 706,046 |
| 562,635 |
|
| 143,411 |
| 25.5 |
|
|
|
|
|
|
|
|
|
|
|
Therapeutic surfaces/other |
|
|
|
|
|
|
|
|
|
Rental | 152,294 |
| 152,219 |
|
| 75 |
| - |
|
Sales | 27,853 |
| 29,450 |
|
| (1,597) |
| (5.4) |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total therapeutic surfaces/other | 180,147 |
| 181,669 |
|
| (1,522) |
| (0.8) |
|
|
|
|
|
|
|
|
|
|
|
Total USA rental | 671,864 |
| 569,227 |
|
| 102,637 |
| 18.0 |
|
Total USA sales | 214,329 |
| 175,077 |
|
| 39,252 |
| 22.4 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total – USA Revenue | $ 886,193 |
| $ 744,304 |
|
| $ 141,889 |
| 19.1 % |
|
| _______ |
| _______ |
|
| _______ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Revenue: |
|
|
|
|
|
|
|
|
|
V.A.C. |
|
|
|
|
|
|
|
|
|
Rental | $ 96,009 |
| $ 68,503 |
|
| $ 27,506 |
| 40.2 % |
|
Sales | 105,488 |
| 67,875 |
|
| 37,613 |
| 55.4 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total V.A.C. | 201,497 |
| 136,378 |
|
| 65,119 |
| 47.7 |
|
|
|
|
|
|
|
|
|
|
|
Therapeutic surfaces/other |
|
|
|
|
|
|
|
|
|
Rental | 90,225 |
| 89,053 |
|
| 1,172 |
| 1.3 |
|
Sales | 30,641 |
| 22,901 |
|
| 7,740 |
| 33.8 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total therapeutic surfaces/other | 120,866 |
| 111,954 |
|
| 8,912 |
| 8.0 |
|
|
|
|
|
|
|
|
|
|
|
Total International rental | 186,234 |
| 157,556 |
|
| 28,678 |
| 18.2 |
|
Total International sales | 136,129 |
| 90,776 |
|
| 45,353 |
| 50.0 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total – International Revenue | $ 322,363 |
| $ 248,332 |
|
| $ 74,031 |
| 29.8 % |
|
| _______ |
| _______ |
|
| _______ |
|
|
|