Exhibit 99.1
Contact: David Holmes – Investors
KCI
(210) 255-6892
david.holmes@kci1.com
KINETIC CONCEPTS REPORTS REVENUE AND EARNINGS GROWTH
FOR THIRD QUARTER AND FIRST NINE MONTHS OF 2007
Third Quarter Highlights
- Net earnings increased 21% to $59.0 million
- Net earnings per diluted share increased 22% to $0.82
- Total revenue increased 17% to $410.9 million
- Research and development expenses increased 20% to $11.0 million
First Nine Months Highlights
- Net earnings increased 18% to $170.7 million
- Net earnings per diluted share increased 21% to $2.39
- Total revenue increased 18% to $1.18 billion
- Research and development expenses increased 29% to $32.2 million
San Antonio, Texas, October 23, 2007 – Kinetic Concepts, Inc. (NYSE: KCI) today reported third quarter 2007 total revenue of $410.9 million, an increase of 17% from the third quarter of 2006. Total revenue for the first nine months of 2007 was $1.18 billion, an 18% increase from the prior-year period. Foreign currency exchange movements favorably impacted total revenue for the third quarter and first nine months of 2007 by 2% compared to the corresponding periods of the prior year.
Net earnings for the third quarter of 2007 were $59.0 million, up 21%, compared to $49.0 million for the same period one year ago. Net earnings per diluted share for the third quarter of 2007 increased 22% to $0.82, compared to $0.67 for the same period in the prior year.
For the first nine months of 2007, net earnings were $170.7 million, up 18%, compared to $144.1 million from last year. Net earnings per diluted share for the first nine months of 2007 were $2.39, an increase of 21% from the same period one year ago.
“I am pleased that we continued to execute on our 2007 business plan,” said Catherine Burzik, President and Chief Executive Officer of KCI. “V.A.C.® remains the only clinically-proven system that delivers effective negative pressure wound therapy. Looking forward, we will continue to make necessary changes and improvements in the business to enable longer-term top and bottom-line growth for our shareholders.”
Revenue Recap – Third Quarter and First Nine Months of 2007
Domestic revenue was $294.0 million for the third quarter and $846.6 million for the first nine months of 2007, representing increases of 16% and 17%, respectively, from the prior year due to increased rental and sales volumes for V.A.C. wound healing devices, related disposables, and therapeutic surfaces rental and sales volumes. Domestic V.A.C. revenue of $244.9 million for the third quarter and $699.2 million for the first nine months of 2007 increased 17% and 19%, respectively, compared to the same periods of the prior year due primarily to higher rental and sales unit volume. Domestic revenue from therapeutic surfaces was $49.1 million for the third quarter and $147.5 million for the first nine months of 2007, representing increases of 9% and 8%, respectively, from the prior-year periods due primarily to increased market penetration.
International revenue of $116.8 million for the third quarter and $329.7 million for the first nine months of 2007 increased 21% and 20%, respectively, compared to the prior year due primarily to increased V.A.C. revenue. International V.A.C. revenue of $84.0 million for the third quarter and $235.6 million for the first nine months of 2007 increased 24% and 26%, respectively, compared to the same periods of the prior year due primarily to higher rental and sales unit volume. International therapeutic surfaces revenue for the third quarter of 2007 of $32.9 million was up 13% compared to the prior year, while therapeutic surfaces revenue of $94.1 million for the first nine months of 2007 increased 8% year-to-year. Foreign currency exchange movements favorably impacted total international revenue by 9% and 8% for the third quarter and first nine months of 2007, respectively, compared to the corresponding periods of the prior year.
Worldwide V.A.C. revenue was $328.9 million for the third quarter of 2007 and $934.8 million for the first nine months of 2007, representing increases of 19% and 20%, respectively, due primarily to increased rental and sales volumes for V.A.C. wound healing devices and related supplies, resulting from increased market penetration. Foreign currency exchange movements favorably impacted worldwide V.A.C. revenue by 2% compared to both the third quarter and first nine months of the prior year.
Worldwide therapeutic surfaces revenue was $82.0 million for the third quarter of 2007 and $241.6 million for the first nine months of 2007, representing increases of 11% and 8%, respectively, from the corresponding periods of the prior year. Foreign currency exchange movements favorably impacted worldwide therapeutic surfaces revenue by 3% for both the third quarter and first nine months of 2007 compared to the same periods one year ago.
Profit Margins
Gross profit for the third quarter and first nine months of 2007 was $204.2 million and $565.5 million, respectively, representing increases of 24% and 21% from the same periods of the prior year. Gross profit margin improved 290 basis points in the 2007 third quarter, compared to the year-ago period, due primarily to increased market penetration, improved revenue realization levels and increased sales force and service productivity.
Operating earnings for the third quarter and first nine months of 2007 were $98.9 million and $272.2 million, respectively, representing increases of 24% and 20% from the same periods of the prior year. Research and development expenses for the third quarter and first nine months of 2007 increased 20% and 29%, respectively, compared to the same periods one year ago. Other selling, general and administrative expenses were higher in the third quarter of 2007 due primarily to management transition costs, share-based compensation and reserve provisions on selected therapeutic surfaces inventory and rental assets.
Share-Based Compensation
During the third quarter and first nine months of 2007, the Company recorded share-based compensation expense totaling approximately $6.6 million and $17.9 million, respectively, before income taxes, or $0.06 and $0.18, respectively, per diluted share, under the provisions of Statement of Financial Accounting Standards No. 123R. Share-based compensation expense was recognized in the condensed consolidated statements of earnings as follows (dollars in thousands, except per share data):
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| Three months ended |
| Nine months ended | ||
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| September 30, |
| September 30, | ||
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| 2007 | 2006 |
| 2007 | 2006 |
Rental expenses |
| $ 1,292 | $ 1,056 |
| $ 4,122 | $ 3,014 |
Cost of sales |
| 140 | 110 |
| 513 | 346 |
Selling, general and administrative expenses |
| 5,198 | 2,828 |
| 13,273 | 8,037 |
Pre-tax share-based compensation expense |
| 6,630 | 3,994 |
| 17,908 | 11,397 |
Less: Income tax benefit |
| (2,072) | (1,242) |
| (5,120) | (3,322) |
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| ______ | ______ |
| ______ | ______ |
Total share-based compensation |
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expense, net of tax |
| $ 4,558 | $ 2,752 |
| $ 12,788 | $ 8,075 |
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| ______ | ______ |
| ______ | ______ |
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Diluted EPS impact |
| $ 0.06 | $ 0.04 |
| $ 0.18 | $ 0.11 |
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| ______ | ______ |
| ______ | ______ |
Income Tax Rate
The effective income tax rates for the third quarter and the first nine months of 2007 were 34.2% and 33.7%, respectively, compared to 35.0% and 32.5% for the corresponding periods in 2006. The lower income tax rate for the first nine months of the prior year resulted from the favorable resolution of tax contingencies. The effective tax rate for the full year of 2006 was 33.1%.
Refinancing
During the third quarter of 2007, KCI completed a new $500 million revolving credit facility due July 2012. The Company used a portion of the new facility to repay the remaining outstanding balance of $114.1 million due on our senior credit facility due August 2010. The Company also redeemed the remaining $68.1 million due under our 73/8% senior subordinated notes due August 2013. The Company recorded refinancing expenses associated with these transactions of $4.5 million, net of income taxes, or $0.06 per diluted share, in the third quarter of 2007. These expenses included the write-off of capitalized debt issuance costs associated with the repayment of our previous debt and the payment of a make-whole premium due to the holders of our senior subordinated notes.
Share Repurchase Program
During the third quarter of 2007, the Company's Board of Directors authorized a one-year extension of the Company's previously announced $200.0 million share repurchase program through September 30, 2008. This program had a remaining authorized amount for share repurchases of $87.5 million as of September 30, 2007. In addition, we have a pre-arranged purchase plan pursuant to Rule 10b5-1 of the Exchange Act, which is authorized through September 30, 2008. No open market repurchases were made under the share repurchase program during the third quarter of 2007.
Outlook
The following guidance is based on current information and expectations as of October 23, 2007:
KCI is tightening its projections for 2007 total revenue to $1.58 – $1.60 billion based on continued demand for its V.A.C. negative pressure wound therapy devices and related supplies. The Company is also raising its projections for net earnings per diluted share for 2007 to $3.20 – $3.30 per share, based upon a weighted average diluted share estimate of 71.0 – 72.0 million shares. The 2007 guidance includes the third quarter charges associated with the debt refinancing transaction of $4.5 million, net of income taxes.
Earnings Release Conference Call
As previously announced, we have scheduled an earnings release conference call for 8:30 a.m. eastern daylight time today, Tuesday, October 23, 2007. The dial-in numbers for this conference call are as follows:
Domestic Dial-in Number: | 866-356-4281 |
International Dial-in Number: | +617-597-5395 |
Participant Code: | 14032263 |
This call is being webcast by Thomson and can be accessed at the Kinetic Concepts, Inc. web site at http://www.kci1.com/investor/index.asp, and clicking on Webcast – Q3 2007 Kinetic Concepts, Inc. Earnings Conference Call. The webcast is also being distributed over Thomson’s Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through Thomson's individual investor center at www.earnings.com and institutional investors can access the call via Thomson's password-protected event management site, StreetEvents. An archive of the webcast will be available at http://www.kci1.com/investor/index.asp until October 22, 2008.
KCI's business outlook as of today is expected to be available on KCI's Investor Relations web site. KCI does not currently expect to update this business outlook until the release of KCI's next quarterly earnings announcement, notwithstanding subsequent developments.
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 improve clinical outcomes and can help reduce the overall cost of patient care. Our advanced wound-care systems incorporate our proprietary Vacuum Assisted Closureâ, or V.A.C. Therapy technology, which has been demonstrated clinically to help promote wound healing through unique mechanisms of action and can help reduce the cost of treating patients with serious wounds. Our therapeutic surfaces, including specialty hospital beds, mattress replacement systems and overlays, are designed to address pulmonary complications associated with immobility, to prevent skin breakdown and assist caregivers in the safe and dignified handling of obese patients. 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 organizations 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 outlook, estimates of future performance, revenue, earnings per share, growth objectives and weighted average shares outstanding. These forward-looking statements contained herein are based on our current expectations and are subject to a number of risks and uncertainties that could cause us to fail to achieve our current financial projections and other expectations, such as changes in the demand for the V.A.C. resulting from increased competition, in payer reimbursement policies or in our ability to protect our intellectual property. All information set forth in this release and its attachments is as of October 23, 2007. 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, 2006 and in our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2007 and June 30, 2007, including, among other sections, under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." These reports are 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 Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2007, which will be filed with the SEC in early November 2007.
KINETIC CONCEPTS, INC. AND SUBSIDIARIES | ||||||
Condensed Consolidated Statements of Earnings | ||||||
(in thousands, except per share data) | ||||||
(unaudited) | ||||||
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| Three months ended September 30, | Nine months ended September 30, | ||||
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| % |
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| % |
| 2007 | 2006 | Change | 2007 | 2006 | Change |
Revenue: |
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Rental | $ 295,371 | $ 252,974 | 16.8 % | $ 844,400 | $ 716,740 | 17.8 % |
Sales | 115,509 | 97,883 | 18.0 | 331,948 | 283,405 | 17.1 |
| _______ | _______ |
| ________ | ________ |
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Total revenue | 410,880 | 350,857 | 17.1 | 1,176,348 | 1,000,145 | 17.6 |
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Rental expenses | 170,742 | 156,466 | 9.1 | 506,047 | 445,984 | 13.5 |
Cost of sales | 35,917 | 30,254 | 18.7 | 104,764 | 87,222 | 20.1 |
| _______ | _______ |
| ________ | ________ |
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Gross profit | 204,221 | 164,137 | 24.4 | 565,537 | 466,939 | 21.1 |
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Selling, general and administrative expenses | 94,349 | 75,182 | 25.5 | 261,183 | 215,807 | 21.0 |
Research and development expenses | 10,996 | 9,174 | 19.9 | 32,200 | 25,056 | 28.5 |
| _______ | _______ |
| ________ | ________ |
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Operating earnings | 98,876 | 79,781 | 23.9 | 272,154 | 226,076 | 20.4 |
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Interest income and other | 689 | 1,660 | (58.5) | 3,569 | 3,787 | (5.8) |
Interest expense | (10,176) | (5,337) | 90.7 | (18,398) | (15,311) | 20.2 |
Foreign currency gain (loss) | 328 | (747) | - | (124) | (1,125) | (89.0) |
| _______ | _______ |
| ________ | ________ |
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Earnings before income taxes | 89,717 | 75,357 | 19.1 | 257,201 | 213,427 | 20.5 |
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Income taxes | 30,692 | 26,375 | 16.4 | 86,548 | 69,297 | 24.9 |
| _______ | _______ |
| ________ | ________ |
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Net earnings | $ 59,025 | $ 48,982 | 20.5 % | $ 170,653 | $ 144,130 | 18.4 % |
| _______ | _______ |
| ________ | ________ |
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Net earnings per share: |
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Basic | $ 0.83 | $ 0.69 | 20.3 % | $ 2.41 | $ 2.03 | 18.7 % |
| _______ | _______ |
| ________ | ________ |
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Diluted | $ 0.82 | $ 0.67 | 22.4 % | $ 2.39 | $ 1.97 | 21.3 % |
| _______ | _______ |
| ________ | ________ |
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Weighted average shares outstanding: |
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Basic | 71,214 | 71,235 |
| 70,791 | 71,098 |
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| _______ | _______ |
| ________ | ________ |
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Diluted | 71,929 | 73,105 |
| 71,490 | 73,321 |
|
| _______ | _______ |
| ________ | ________ |
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KINETIC CONCEPTS, INC. AND SUBSIDIARIES | |||
(in thousands) | |||
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|
| September 30, |
| December 31, |
| 2007 |
| 2006 |
| (unaudited) |
|
|
Assets: |
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Current assets: |
|
|
|
Cash and cash equivalents | $ 164,174 |
| $ 107,146 |
Accounts receivable, net | 356,894 |
| 327,573 |
Inventories, net | 49,122 |
| 43,489 |
Deferred income taxes | 42,369 |
| 35,978 |
Prepaid expenses and other | 33,619 |
| 17,602 |
| _______ |
| _______ |
Total current assets | 646,178 |
| 531,788 |
|
|
|
|
Net property, plant and equipment | 217,804 |
| 217,471 |
Debt issuance costs, less accumulated amortization |
|
|
|
of $87 at2007 and $15,406 at 2006 | 2,497 |
| 4,848 |
Deferred income taxes | 8,395 |
| 7,903 |
Goodwill | 48,897 |
| 49,369 |
Other non-current assets, less accumulated amortization |
|
|
|
of $10,220 at 2007 and $9,757 at 2006 | 24,236 |
| 31,063 |
| _______ |
| _______ |
| $ 948,007 |
| $ 842,442 |
| _______ |
| _______ |
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Liabilities and Shareholders’ Equity: |
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|
|
Current liabilities: |
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|
|
Accounts payable | $ 35,204 |
| $ 38,543 |
Accrued expenses and other | 179,825 |
| 189,801 |
Current installments of long-term debt | - |
| 1,446 |
Income taxes payable | 408 |
| 21,058 |
| _______ |
| _______ |
Total current liabilities | 215,437 |
| 250,848 |
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|
|
Long-term debt, net of current installments | 88,000 |
| 206,175 |
Non-current tax liabilities | 34,928 |
| - |
Deferred income taxes | 9,393 |
| 19,627 |
Other non-current liabilities | 8,090 |
| 9,579 |
| _______ |
| _______ |
| 355,848 |
| 486,229 |
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Shareholders' equity: |
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|
|
Common stock; authorized 225,000 at 2007 and 2006; |
|
|
|
issued and outstanding 71,931 at 2007 and 70,461 at 2006 | 72 |
| 70 |
Preferred stock; authorized 50,000 at 2007 and 2006; |
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issued and outstanding 0 at 2007 and 2006 | - |
| - |
Additional paid-in capital | 627,872 |
| 575,539 |
Retained deficit | (73,672) |
| (244,325) |
Accumulated other comprehensive income | 37,887 |
| 24,929 |
| _______ |
| _______ |
Shareholders' equity | 592,159 |
| 356,213 |
| _______ |
| _______ |
| $ 948,007 |
| $ 842,442 |
| _______ |
| _______ |
KINETIC CONCEPTS, INC. AND SUBSIDIARIES |
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Condensed Consolidated Statements of Cash Flows |
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(in thousands) |
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(unaudited) |
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| Nine months ended September 30, |
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| 2007 |
| 2006 |
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Cash flows from operating activities: |
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Net earnings | $ 170,653 |
| $ 144,130 |
|
Adjustments to reconcile net earnings to net cash provided |
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by operating activities: |
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Depreciation, amortization and other | 67,785 |
| 58,327 |
|
Provision for bad debt | 5,519 |
| 10,490 |
|
Amortization of deferred gain on sale of headquarters facility | (803) |
| (803) |
|
Write-off of deferred debt issuance costs | 3,922 |
| 1,262 |
|
Share-based compensation expense | 17,908 |
| 11,397 |
|
Excess tax benefit from share-based payment arrangements | (12,582) |
| (29,286) |
|
Change in assets and liabilities: |
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Increase in accounts receivable, net | (30,781) |
| (38,287) |
|
Increase in inventories, net | (7,284) |
| (12,861) |
|
Increase in prepaid expenses and other | (7,987) |
| (7,295) |
|
Increase in deferred income taxes, net | (17,135) |
| (13,594) |
|
Decrease in accounts payable | (2,934) |
| (8,757) |
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Decrease in accrued expenses and other | (9,779) |
| (8,133) |
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Increase in tax liabilities, net | 27,963 |
| 42,514 |
|
| _______ |
| _______ |
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Net cash provided by operating activities | 204,465 |
| 149,104 |
|
| _______ |
| _______ |
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Cash flows from investing activities: |
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Additions to property, plant and equipment | (53,947) |
| (54,195) |
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Increase in inventory to be converted into equipment |
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for short-term rental | (13,500) |
| (6,000) |
|
Dispositions of property, plant and equipment | 1,239 |
| 1,136 |
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Purchase of investments | (36,425) |
| - |
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Maturities of investments | 36,425 |
| - |
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Increase in other non-current assets | (1,288) |
| (3,967) |
|
| _______ |
| _______ |
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Net cash used by investing activities | (67,496) |
| (63,026) |
|
| _______ |
| _______ |
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Cash flows from financing activities: |
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Proceeds from revolving credit facility | 188,000 |
| - |
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Repayments of long-term debt, capital lease and other obligations | (307,584) |
| (67,638) |
|
Payments of debt issuance costs | (2,268) |
| - |
|
Repurchase of common stock in open market transactions | - |
| (83,943) |
|
Excess tax benefit from share-based payment arrangements | 12,582 |
| 29,286 |
|
Proceeds from exercise of stock options | 21,634 |
| 8,521 |
|
Purchase of immature shares for minimum tax withholdings | (2,321) |
| (20,910) |
|
Proceeds from purchase of stock in ESPP and other | 2,142 |
| 2,270 |
|
| _______ |
| _______ |
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Net cash used by financing activities | (87,815) |
| (132,414) |
|
| _______ |
| _______ |
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Effect of exchange rate changes on cash and cash equivalents | 7,874 |
| 3,682 |
|
| _______ |
| _______ |
|
Net increase (decrease) in cash and cash equivalents | 57,028 |
| (42,654) |
|
Cash and cash equivalents, beginning of period | 107,146 |
| 123,383 |
|
| _______ |
| _______ |
|
Cash and cash equivalents, end of period | $ 164,174 |
| $ 80,729 |
|
| _______ |
| _______ |
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KINETIC CONCEPTS, INC. AND SUBSIDIARIES | |||||||||
Supplemental Revenue Data | |||||||||
(in thousands) | |||||||||
(unaudited) | |||||||||
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| Three months ended September 30, |
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| Variance |
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| 2007 |
| 2006 |
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| $ |
| % |
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Total Revenue: |
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V.A.C. |
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Rental | $ 226,114 |
| $ 191,411 |
|
| $ 34,703 |
| 18.1 % |
|
Sales | 102,781 |
| 85,400 |
|
| 17,381 |
| 20.4 |
|
| _______ |
| _______ |
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| ______ |
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Total V.A.C. | 328,895 |
| 276,811 |
|
| 52,084 |
| 18.8 |
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Therapeutic surfaces/other |
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Rental | 69,257 |
| 61,563 |
|
| 7,694 |
| 12.5 |
|
Sales | 12,728 |
| 12,483 |
|
| 245 |
| 2.0 |
|
| _______ |
| _______ |
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| ______ |
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Total therapeutic surfaces/other | 81,985 |
| 74,046 |
|
| 7,939 |
| 10.7 |
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Total rental revenue | 295,371 |
| 252,974 |
|
| 42,397 |
| 16.8 |
|
Total sales revenue | 115,509 |
| 97,883 |
|
| 17,626 |
| 18.0 |
|
| _______ |
| _______ |
|
| ______ |
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|
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Total Revenue | $ 410,880 |
| $ 350,857 |
|
| $ 60,023 |
| 17.1 % |
|
| _______ |
| _______ |
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| ______ |
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USA Revenue: |
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V.A.C. |
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Rental | $ 183,186 |
| $ 156,981 |
|
| $ 26,205 |
| 16.7 % |
|
Sales | 61,738 |
| 52,290 |
|
| 9,448 |
| 18.1 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total V.A.C. | 244,924 |
| 209,271 |
|
| 35,653 |
| 17.0 |
|
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Therapeutic surfaces/other |
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Rental | 42,994 |
| 38,010 |
|
| 4,984 |
| 13.1 |
|
Sales | 6,128 |
| 6,945 |
|
| (817) |
| (11.8) |
|
| _______ |
| _______ |
|
| ______ |
|
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Total therapeutic surfaces/other | 49,122 |
| 44,955 |
|
| 4,167 |
| 9.3 |
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Total USA rental | 226,180 |
| 194,991 |
|
| 31,189 |
| 16.0 |
|
Total USA sales | 67,866 |
| 59,235 |
|
| 8,631 |
| 14.6 |
|
| _______ |
| _______ |
|
| ______ |
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|
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Total – USA Revenue | $ 294,046 |
| $ 254,226 |
|
| $ 39,820 |
| 15.7 % |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Revenue: |
|
|
|
|
|
|
|
|
|
V.A.C. |
|
|
|
|
|
|
|
|
|
Rental | $ 42,928 |
| $ 34,430 |
|
| $ 8,498 |
| 24.7 % |
|
Sales | 41,043 |
| 33,110 |
|
| 7,933 |
| 24.0 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total V.A.C. | 83,971 |
| 67,540 |
|
| 16,431 |
| 24.3 |
|
|
|
|
|
|
|
|
|
|
|
Therapeutic surfaces/other |
|
|
|
|
|
|
|
|
|
Rental | 26,263 |
| 23,553 |
|
| 2,710 |
| 11.5 |
|
Sales | 6,600 |
| 5,538 |
|
| 1,062 |
| 19.2 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total therapeutic surfaces/other | 32,863 |
| 29,091 |
|
| 3,772 |
| 13.0 |
|
|
|
|
|
|
|
|
|
|
|
Total International rental | 69,191 |
| 57,983 |
|
| 11,208 |
| 19.3 |
|
Total International sales | 47,643 |
| 38,648 |
|
| 8,995 |
| 23.3 |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
Total – International Revenue | $ 116,834 |
| $ 96,631 |
|
| $ 20,203 |
| 20.9 % |
|
| _______ |
| _______ |
|
| ______ |
|
|
|
KINETIC CONCEPTS, INC. AND SUBSIDIARIES | |||||||||
Supplemental Revenue Data | |||||||||
(in thousands) | |||||||||
(unaudited) | |||||||||
| |||||||||
| |||||||||
| Nine months ended September 30, |
| |||||||
|
|
|
|
|
| Variance |
| ||
| 2007 |
| 2006 |
|
| $ |
| % |
|
Total Revenue: |
|
|
|
|
|
|
|
|
|
V.A.C. |
|
|
|
|
|
|
|
|
|
Rental | $ 641,713 |
| $ 531,590 |
|
| $ 110,123 |
| 20.7 % |
|
Sales | 293,052 |
| 244,310 |
|
| 48,742 |
| 20.0 |
|
| ________ |
| ________ |
|
| _______ |
|
|
|
Total V.A.C. | 934,765 |
| 775,900 |
|
| 158,865 |
| 20.5 |
|
|
|
|
|
|
|
|
|
|
|
Therapeutic surfaces/other |
|
|
|
|
|
|
|
|
|
Rental | 202,687 |
| 185,150 |
|
| 17,537 |
| 9.5 |
|
Sales | 38,896 |
| 39,095 |
|
| (199) |
| (0.5) |
|
| ________ |
| ________ |
|
| _______ |
|
|
|
Total therapeutic surfaces/other | 241,583 |
| 224,245 |
|
| 17,338 |
| 7.7 |
|
|
|
|
|
|
|
|
|
|
|
Total rental revenue | 844,400 |
| 716,740 |
|
| 127,660 |
| 17.8 |
|
Total sales revenue | 331,948 |
| 283,405 |
|
| 48,543 |
| 17.1 |
|
| ________ |
| ________ |
|
| _______ |
|
|
|
Total Revenue | $ 1,176,348 |
| $ 1,000,145 |
|
| $ 176,203 |
| 17.6 % |
|
| ________ |
| ________ |
|
| _______ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA Revenue: |
|
|
|
|
|
|
|
|
|
V.A.C. |
|
|
|
|
|
|
|
|
|
Rental | $ 523,003 |
| $ 439,526 |
|
| $ 83,477 |
| 19.0 % |
|
Sales | 176,173 |
| 149,243 |
|
| 26,930 |
| 18.0 |
|
| ________ |
| ________ |
|
| _______ |
|
|
|
Total V.A.C. | 699,176 |
| 588,769 |
|
| 110,407 |
| 18.8 |
|
|
|
|
|
|
|
|
|
|
|
Therapeutic surfaces/other |
|
|
|
|
|
|
|
|
|
Rental | 127,856 |
| 116,205 |
|
| 11,651 |
| 10.0 |
|
Sales | 19,612 |
| 20,545 |
|
| (933) |
| (4.5) |
|
| ________ |
| ________ |
|
| _______ |
|
|
|
Total therapeutic surfaces/other | 147,468 |
| 136,750 |
|
| 10,718 |
| 7.8 |
|
|
|
|
|
|
|
|
|
|
|
Total USA rental | 650,859 |
| 555,731 |
|
| 95,128 |
| 17.1 |
|
Total USA sales | 195,785 |
| 169,788 |
|
| 25,997 |
| 15.3 |
|
| ________ |
| ________ |
|
| _______ |
|
|
|
Total – USA Revenue | $ 846,644 |
| $ 725,519 |
|
| $ 121,125 |
| 16.7 % |
|
| ________ |
| ________ |
|
| _______ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Revenue: |
|
|
|
|
|
|
|
|
|
V.A.C. |
|
|
|
|
|
|
|
|
|
Rental | $ 118,710 |
| $ 92,064 |
|
| $ 26,646 |
| 28.9 % |
|
Sales | 116,879 |
| 95,067 |
|
| 21,812 |
| 22.9 |
|
| ________ |
| ________ |
|
| _______ |
|
|
|
Total V.A.C. | 235,589 |
| 187,131 |
|
| 48,458 |
| 25.9 |
|
|
|
|
|
|
|
|
|
|
|
Therapeutic surfaces/other |
|
|
|
|
|
|
|
|
|
Rental | 74,831 |
| 68,945 |
|
| 5,886 |
| 8.5 |
|
Sales | 19,284 |
| 18,550 |
|
| 734 |
| 4.0 |
|
| ________ |
| ________ |
|
| _______ |
|
|
|
Total therapeutic surfaces/other | 94,115 |
| 87,495 |
|
| 6,620 |
| 7.6 |
|
|
|
|
|
|
|
|
|
|
|
Total International rental | 193,541 |
| 161,009 |
|
| 32,532 |
| 20.2 |
|
Total International sales | 136,163 |
| 113,617 |
|
| 22,546 |
| 19.8 |
|
| ________ |
| ________ |
|
| _______ |
|
|
|
Total – International Revenue | $ 329,704 |
| $ 274,626 |
|
| $ 55,078 |
| 20.1 % |
|
| ________ |
| ________ |
|
| _______ |
|
|
|