Exhibit 99.1
TO BUSINESS EDITOR:
Wilson Greatbatch Technologies, Inc. Reports Record
First Quarter Sales and Earnings
CLARENCE, N.Y., April 28 /PRNewswire-FirstCall/ -- Wilson Greatbatch
Technologies, Inc. (the "Company") (NYSE: GB), a leading developer and
manufacturer of batteries, capacitors, components and enclosures used in
implantable medical devices and specialty batteries used in demanding
non-medical operations, today announced record revenue and net income for the
first fiscal quarter of 2003. The Company reported record revenues for the first
quarter 2003 of $54.9 million, an increase of 51% compared to the $36.3 million
reported in the first quarter of 2002. The Company also reported record net
income in the first quarter of $6.0 million, an 81% increase over net income of
$3.3 million in the first quarter of 2002. Earnings per fully diluted share were
$0.28, a 75% increase over the $0.16 reported in the first quarter of 2002.
Revenues
The following table summarizes the Company's revenues by product line for
the first quarters in 2003 and 2002 (in thousands):
Product Lines 2003 2002 %
1st Qtr 1st Qtr Change
Medical Technology:
Medical Batteries:
ICDs $10,760 $6,506 +65%
Pacemakers 6,037 5,529 +9%
Other Devices 806 1,002 -20%
Total Medical Batteries 17,603 13,037 +35%
Capacitors 7,148 5,749 +24%
Components 23,277 11,527 +102%
Total Medical Technology 48,028 30,313 +58%
Commercial Power Sources 6,829 5,990 +14%
Total Revenues $54,857 $36,303 +51%
"I am extremely pleased with our results for the first quarter. The
cardiac rhythm management (CRM) market growth is robust and its impact can be
seen across many of our product lines," stated Edward Voboril, the Company's
Chairman, President and Chief Executive Officer. "With the CRM market now
comprising most our overall sales mix, we are very well positioned in this
exciting market segment," Voboril continued.
"In our medical power product area, our high voltage defibrillator battery
revenues reached a record high in the quarter. We are seeing strong demand for
our high voltage batteries used in both implantable cardioverter defibrillators
(ICD) and cardiac resynchronization therapy devices (CRT). In terms of pacemaker
battery revenues, as we have previously discussed, revenues throughout most of
the first half of 2002 were impacted by inventory reductions by certain
customers. The growth in the first quarter of this year was a result of
increased sales to these customers. Our capacitor revenues in the quarter
remained strong. While the revenues represent sales to a single customer, we
expect sales to the second and third customers to commence in the second half of
the year," Voboril commented.
"Turning to the medical component product area, revenues doubled from last
year. This was due in part to the acquisition of Globe Tool completed in July
2002. Aside from the Globe enclosure products, the organic growth of filtered
feedthroughs was in excess of 60% over the prior year. This strong growth
reflects introductions of ICDs, Pacemakers and CRT devices by our customers,
which utilize our proprietary electro-magnetic filtering technology," stated
Voboril.
"In our non-medical, commercial battery segment, the revenue growth
reflects demand from our customers in the oil and gas exploration market. As we
head into the heart of the oil-drilling season over the next two quarters, our
outlook for the remainder of the year remains cautiously optimistic. The
uncertainties overseas have created some concern with our customers and,
therefore, it is too soon to determine how long this level of increased demand
will continue," Voboril added.
Profit & Loss Summary
The following table summarizes selected information derived from the
profit & loss ("P&L") statements for the 1st quarters for 2003 and 2002 (in
thousands):
Selected P & L Amounts 2003 2002
1st Qtr 1st Qtr
Gross Profit $22,813 $15,952
Gross Margin 41.6% 43.9%
SG&A Expenses 7,691 5,657
SG&A Expense as% of Revenue 14.0% 15.6%
RD&E Expenses, net 4,560 3,653
RD&E Expenses, net as % of Revenues 8.3% 10.1%
Operating Income $9,747 $5,756
Operating Margin 17.8% 15.9%
"The decrease in gross margin in the quarter compared to last year is
primarily due to the lower margin Globe enclosure products. In addition to the
product mix, we incurred integration-related costs in the first quarter for the
ongoing consolidation of our commercial battery facilities in Massachusetts. The
consolidation is on track in terms of planned costs and for completion by the
end of the second quarter," Voboril commented.
"Furthermore, we incurred costs in the quarter pertaining to our
enterprise-wide Six Sigma lean manufacturing initiative. The completion of the
commercial plant consolidation, coupled with the ongoing lean manufacturing
initiatives, should allow us to see gross margin improvement in the second half
of this year," Voboril stated.
"The improvement in the operating margin reflects the impact of both the
increased sales and the leverage of existing SG&A infrastructure. We will
continue to invest in support of the growth of the business, while at the same
time delivering on our expectations," Voboril concluded.
Conference Call
Edward F. Voboril and Lawrence P. Reinhold, the Company's Executive Vice
President and Chief Financial Officer, will discuss first quarter 2003 financial
results in a conference call scheduled for today, Monday, April 28, at 4:15 p.m.
EDT. The conference call will be webcast live and is accessible through the
Company's website at www.greatbatch.com or at CCBN's individual investor center
at www.companyboardroom.com. The webcast will also include presentation visuals.
The webcast will be archived on both websites for future on-demand replay.
Forward-Looking Statements
Some of the statements in this press release and other written and oral
statements made from time to time by the company and its representatives are
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934,
as amended, and involve a number of risks and uncertainties. These statements
can be identified by terminology such as "may," "will," "should," "could,"
"expects," "intends," "plans," "anticipates," "believes," "estimates,"
"predicts," "potential" or "continue" or the negative of these terms or other
comparable terminology. These statements are based on the Company's current
expectations. The Company's actual results could differ materially from those
stated or implied in such forward-looking statements. Risks and uncertainties
that could cause actual results to differ materially from those stated or
implied by such forward-looking statements include, among others, the following
matters affecting the Company: dependence upon a limited number of customers;
product obsolescence; inability to market current or future products; pricing
pressure from customers; reliance on third party suppliers for raw materials;
products and subcomponents; fluctuating operating results; inability to maintain
high quality standards for our products; challenges to our intellectual property
rights; product liability claims; inability to successfully consummate and
integrate acquisitions; unsuccessful expansion into new markets; competition;
inability to obtain licenses to key technology; regulatory changes or
consolidation in the healthcare industry; and other risks and uncertainties
described in the Company's Annual Report on Form 10-K, including Exhibit 99.2
thereto, and in other periodic filings with the Securities and Exchange
Commission. The company assumes no obligation to update forward-looking
information in this press release whether to reflect changed assumptions, the
occurrence of unanticipated events or changes in future operating results,
financial conditions or prospects, or otherwise.
About Wilson Greatbatch Technologies
Wilson Greatbatch Technologies, Inc. (NYSE: GB) is a leading developer and
manufacturer of batteries, capacitors, precision components and enclosures used
in implantable medical devices and other technically demanding applications. The
Company has operations in New York, Maryland, Massachusetts, Nevada and
Minnesota. Additional information about the Company is available at
www.greatbatch.com.
Wilson Greatbatch Technologies, Inc.
Condensed Consolidated Balance Sheet
(Unaudited)
(In thousands)
March 31, December 31,
ASSETS 2003 2002
Current assets:
Cash and cash equivalents $ 2,203 $ 4,608
Accounts receivable, net 26,769 19,310
Inventories 32,717 34,908
Prepaid expenses and other current assets 1,287 3,339
Refundable income taxes 3,038 3,038
Deferred income taxes 3,349 3,349
--------- ---------
Total current assets 69,363 68,552
Property, plant and equipment, net 64,124 64,699
Intangible assets, net 54,986 55,804
Goodwill 119,550 119,407
Other assets 3,738 3,789
--------- ---------
Total assets $ 311,761 $ 312,251
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,752 $ 5,726
Accrued expenses and other current liabilities 9,893 13,872
Current maturities of long-term debt 3,250 8,750
--------- ---------
Total current liabilities 17,895 28,348
Long-term debt 76,250 76,250
Other long-term liabilities 870 790
--------- ---------
Total liabilities 95,015 105,388
--------- ---------
Stockholders' equity:
Common stock 21 21
Capital in excess of par value 205,262 202,279
Retained earnings 11,463 5,426
Treasury stock, at cost -- (863)
--------- ---------
Total stockholders' equity 216,746 206,863
--------- ---------
Total liabilities and stockholders' equity $ 311,761 $ 312,251
========= =========
Wilson Greatbatch Technologies, Inc.
Condensed Consolidated Statement of Operations
(Unaudited)
(In thousands except per share amounts)
Three Months Ended
March 31, March 31,
2003 2002
Revenues $ 54,857 $ 36,303
Cost of revenues 32,044 20,351
-------- --------
Gross profit 22,813 15,952
Gross margin 42% 44%
Selling, general and administrative expenses 7,691 5,657
Research, development and engineering costs, net 4,560 3,653
Amortization of intangible assets 815 886
-------- --------
Operating income 9,747 5,756
Interest expense 931 892
Interest income (9) (145)
Other expense, net 12 26
-------- --------
Income before income taxes 8,813 4,983
Provision for income taxes 2,776 1,644
-------- --------
Net income $ 6,037 $ 3,339
======== ========
Diluted earnings per share $ 0.28 $ 0.16
Diluted average shares outstanding 21,354 21,268