Exhibit 99.1
HAEMONETICS REPORTS FIRST QUARTER FISCAL YEAR 2006 EARNINGS
BRAINTREE, Mass., July 28 /PRNewswire-FirstCall/ -- Haemonetics Corporation
(NYSE: HAE) reported today first quarter fiscal year 2006 net revenue of $103.2
million, a 9.1% increase over first quarter of fiscal year 2005. Diluted net
earnings per share for the quarter were $0.47, up 23.3% over Q1:05.
Brad Nutter, Haemonetics President and CEO, said, "The solid first quarter
results reflect balanced growth in each of our core product lines, with our
newer red cell and OrthoPAT product lines growing at about 30%. Our results in
the quarter also benefited from the positive impact of currency exchange rates.
As a result, we continue to be confident that for the full year, we will meet
our target revenue growth of 11-13%, operating income growth of approximately
20%, operating margin in excess of 16% and diluted net earnings per share in the
range of $1.73 to $1.83."
The Company's first quarter disposables revenues by product line were:
% Inc
Product Line Revenue over Q1:05
--------------------------- --------------- ----------
Plasma $27.3 million 7.1%
Blood Bank $32.7 million 6.2%
Red Cells $8.5 million 30.9%
Patient $22.7 million 9.2%
FINANCIAL HIGHLIGHTS
Haemonetics reported the following additional financial results:
P&L Highlights
Change from
7/2/05 7/3/04 prior year
-------- -------- ------------
Net revenue $ 103.2 $ 94.6 +9.1%
Gross profit $ 54.5 $ 47.1 +15.8%
Operating expenses $ 36.0 $ 32.1 +12.1%
Operating income $ 18.5 $ 15.0 +23.6%
Diluted net earnings per share $ 0.47 $ 0.38 +23.3%
Gross margin 52.8% 49.8% +300 bp
Operating margin 17.9% 15.8% +210 bp
In addition to currency, two other factors affected the Company's net
income. Higher short-term interest rates affected net income favorably, and a
higher tax rate impacted net income negatively. The tax rate for the quarter
increased to 36% versus 32% in Q1:05 (when the Company had received a one-time
$600,000 income tax benefit in the quarter in Japan).
Balance Sheet Highlights
Haemonetics achieved an increase in cash and short term investments on the
balance sheet of $12.3 million over Q4:05 for a first quarter end cash balance
of $198.1 million. The Company also generated $11.8 million in cash flow from
operating activities for the quarter.
Haemonetics will post detailed information on the positive effects of
currency and the Company's annual guidance on the web at
http://www.haemonetics.com/site/content/investor/fin_history.asp.
DONOR PRODUCT LINE HIGHLIGHTS
Plasma disposables revenue was $27.3 million for the quarter, up 7.1% from
Q1:05. In the quarter, the Company successfully completed the first phase of a
two part plan to convert 55 plasma collection centers owned by ZLB Plasma
Services ("ZLB") to utilize Haemonetics' technology. Plasma disposable revenue
in the quarter benefited from the additional disposables sales to ZLB as well as
from disposables unit growth in the rebounding U.S. market.
Blood bank revenue was $32.7 million for the quarter, up 6.2% over Q1:05.
Currency and strong disposables revenue growth in Asian markets, exclusive of
Japan, contributed to the blood bank revenue growth.
Red cell disposables revenue was $8.5 million for the quarter, up 30.9%
over Q1:05. Unit growth in the U.S. was a key driver of red cell disposables
revenue growth as the U.S. continues to outpace other markets in converting to
automated red cell collection.
PATIENT PRODUCT LINE HIGHLIGHTS
Disposables revenue for the Patient family of products was $22.7 million
for the quarter, up 9.2% over Q1:05. Patient product growth was driven by
OrthoPAT(R) brand disposables revenue which was $5.6 million for the quarter, up
28.3% over Q1:05.
The Cell Saver(R) 5+, a new product launched worldwide in Q4:05,
contributed to strong equipment sales for the Patient Division in the first
quarter.
CORPORATE UPDATE
Haemonetics continues to make progress with new products, but announced
that launch of the CritScan(R) is currently delayed until later in the year. The
Company is addressing issues with the device not performing to quality standards
in initial customer trials. Additionally, while the cardioPAT(TM) surgical blood
salvage system launched on time, Haemonetics announced today that it is
voluntarily recalling the 30 devices at customer trial sites. The Company
discovered a potential problem with a valve on the disposable. Customers
continue to affirm the value of this new device for their patients, and
Haemonetics expects to resume marketing the device by early calendar year 2006.
All other new product launches remain on track and on budget.
Finally, a highlight for the quarter was the award of $27.8 million in
damages, plus attorney's fees and other costs, by an arbitration panel to
Haemonetics on its breach of contract claim against Baxter Healthcare
Corporation. The Company expects to receive the payment by the end of the
calendar year.(1)
CONFERENCE CALL
Haemonetics will hold a conference call on Thursday, July 28th at 10:00 am
eastern to review the financial and operational performance of the quarter.
Interested parties can participate by calling (800) 322-0079 (US only) or
(973) 935-2100. The call will be replayed through August 12th at (877) 519- 4471
(US only) or (973) 341-3080 using PIN 6230156.
INVESTOR CONFERENCE
Brad Nutter will be presenting at the Adams Harkness 25th Annual Summer
Seminar in Boston on August 2, 2005.
Haemonetics (NYSE: HAE) is a global company engaged in the design,
manufacture and worldwide marketing of automated blood processing systems. These
systems address important medical markets: surgical blood salvage, blood
component collection, plasma collection, and blood component safety. To learn
more about Haemonetics' products and markets, visit its web site at
http://www.haemonetics.com.
(1) For more information on this arbitration and decision, see Haemonetics'
press release of May 25, 2005 at
http://www.haemonetics.com/site/content/km/news_198.asp.
This release contains forward looking statements that involve risks and
uncertainties, including technological advances in the medical field and
standards for transfusion medicine and our ability to successfully implement
products that incorporate such advances and standards, product demand, market
acceptance, regulatory uncertainties, the effect of economic and political
conditions, the impact of competitive products and pricing, blood product
reimbursement policies and practices, foreign currency exchange rates, changes
in customers' ordering patterns, the effect of industry consolidation as seen in
the plasma market, the effect of communicable diseases and the effect of
uncertainties in markets outside the U.S. (including Europe and Asia) in which
we operate and other risks detailed in the Company's filings with the Securities
and Exchange Commission. The foregoing list should not be construed as
exhaustive. The forward-looking statements are based on estimates and
assumptions made by management of the Company and are believed to be reasonable,
though are inherently uncertain and difficult to predict. Actual results and
experience could differ materially from the forward-looking statements.
CONTACT:
Julie Fallon
Tel. (781) 356-9517
Alternate Tel. (617) 320-2401
fallon@haemonetics.com
HAEMONETICS CORPORATION
FINANCIAL SUMMARY FOR FIRST QUARTER FYE06
(UNAUDITED DATA IN THOUSANDS, EXCEPT PER SHARE DATA)
CONSOLIDATED STATEMENTS OF INCOME
% Inc/(Dec)
vs prior
07/02/05 07/03/04 year
------------ ------------ ------------
NET REVENUES $ 103,173 $ 94,602 9.1
Gross profit 54,524 47,100 15.8
R&D 5,541 4,054 36.7
S, G & A 30,488 28,084 8.6
Operating expenses 36,029 32,138 12.1
Operating income 18,495 14,962 23.6
Interest expense (541) (661) (18.2)
Interest income 1,313 363 261.7
Other income/(expense), net 864 (232) (472.4)
Income before taxes 20,131 14,432 39.5
Tax expense 7,247 4,612 57.1
NET INCOME $ 12,884 $ 9,820 31.2
Net income per common share
assuming dilution $ 0.47 $ 0.38 23.3
Weighted average number of shares
Basic 26,280 25,155
Diluted 27,209 25,579
Inc/(Dec)
vs prior
year profit
PROFIT MARGINS margin %
- --------------------------------------------- ------------ ------------ ------------
Gross profit 52.8% 49.8% 3.0
R&D 5.4% 4.3%
S, G & A 29.6% 29.7%
Operating income 17.9% 15.8% 2.1
Income before taxes 19.5% 15.3% 4.2
Net income 12.5% 10.4%
REVENUE ANALYSIS
07/02/05 07/03/04 % Inc/(Dec)
------------ ------------ ------------
Revenues by Geography
United States $ 38,223 $ 32,907 16.2
International 64,950 61,695 5.3
Net Revenues $ 103,173 $ 94,602 9.1
Disposable Revenues by Product Family
Donor:
Plasma $ 27,303 $ 25,486 7.1
Blood Bank 32,690 30,769 6.2
Red Cell 8,455 6,461 30.9
$ 68,448 $ 62,716 9.1
Patient:
Surgical $ 22,685 $ 20,773 9.2
Subtotal $ 91,133 $ 83,489 9.2
Equipment $ 6,111 $ 6,673 (8.4)
Misc & Service 5,929 4,440 33.5
Net Revenues $ 103,173 $ 94,602 9.1
CONSOLIDATED BALANCE SHEETS
Period ending Period ending
---------------------- ----------------------
07/02/05 04/02/05 07/02/05 04/02/05
---------- ---------- ---------- ---------
Assets Liabilities & Stockholders' Equity
S/T debt &
Cash & cash current
equivalents $ 198,067 $ 185,815 maturities $ 26,258 $ 26,612
Accounts Other current
receivable, net 83,625 80,719 liabilities 62,885 61,310
Inventories, net 55,998 53,088 Total current
liabilities 89,143 87,922
Other current
assets 27,175 23,989 Long-term debt 19,101 19,231
Total current Other long-term
assets 364,865 343,611 liabilities 5,049 5,469
Net PP&E 67,910 69,337
Other assets 53,087 54,809 Stockholders'
equity 372,569 355,135
TOTAL
LIABILITIES &
TOTAL ASSETS $ 485,862 $ 467,757 EQUITY $ 485,862 $ 467,757
SOURCE Haemonetics Corporation
-0- 07/28/2005
/CONTACT: Julie Fallon, +1-781-356-9517, Alternate Tel. +1-617-320-2401,
fallon@haemonetics.com/
/Web site: http://www.haemonetics.com/