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EXHIBIT 99.1
ICU Medical, Inc. Reports Third Quarter 2009 Results
Nine-Month 2009 Operating Cash Flow Totaled $38.5 Million
The Company Raises FY 2009 EPS Guidance
SAN CLEMENTE Calif., Oct. 19, 2009 (GLOBE NEWSWIRE) -- ICU Medical, Inc., (Nasdaq:ICUI), a leading low cost manufacturer of safe medical connectors, custom medical products and critical care devices, today announced results for the third quarter and nine months ended September 30, 2009.
Third quarter 2009 revenue was $54.0 million, compared to $54.7 million in the same period last year. Net income for the third quarter of 2009 was $6.3 million, or $0.42 per diluted share, compared to net income of $7.6 million, or $0.52 per diluted share, for the third quarter of 2008. The Company experienced a more favorable tax rate in the third quarter of 2009, which added approximately $0.08 to its earnings per share for the quarter.
For the nine months ended September 30, 2009, revenue increased 9.3% to $161.7 million, compared to revenue of $148.0 million in the same period last year. For the nine months ended September 30, 2009, the Company earned $19.1 million, or $1.27 per diluted share, compared to net income of $15.3 million, or $1.06 per diluted share, for the nine months ended September 30, 2008.
Scott Lamb, ICU Medical's Chief Financial Officer, said, "We are pleased with our financial performance during the third quarter and the initial results from our critical care acquisition that we closed on August 31, 2009. The third quarter was marked by solid profitability and strong cash flow and our top-line performance was driven by double-digit improvements in Non Critical Care Custom Sets and new products. International revenue was up 53% while sales from domestic distributors and direct sales posted an increase of 98%."
"The transition of recently acquired critical care operations is in-line with our expectations and we believe by controlling all aspects of this line, we will regain market share for this product line and return it to stronger growth over time," continued Mr. Lamb. "With industry leading partnerships in place, we are positioned to capitalize on worldwide market opportunities for all of our products. Additionally, our positive cash flow enables us to finance our immediate growth initiatives, such as sales force expansion and further improvements in manufacturing efficiencies."
The Company ended the third quarter with a very strong balance sheet. As of September 30, 2009, cash, cash equivalents and investment securities totaled $123.4 million and working capital was $187.2 million. Additionally, the Company achieved operating cash flow of $38.5 million for the first nine months of 2009.
Fiscal Year 2009 Guidance
For the full fiscal year of 2009, management is narrowing its previously announced revenue guidance to the range of $223 million to $228 million and maintaining gross margin guidance in the range of 46-47%. In addition, the Company is increasing its diluted earnings per share for full year 2009 to a range of $1.74 - $1.79, compared to the previously announced $1.62 - $1.71 per diluted share. Diluted earnings per share guidance include an additional $0.08 related to a more favorable tax rate of approximately 22% in the third quarter of 2009. The Company expects its tax rate to be approximately 33% for the full year of 2009.
Conference Call
The Company will be conducting a conference call concerning its third quarter results today at 4:30 p.m. EDT (1:30 p.m. PDT). The call can be accessed at 866-543-6411, passcode 27695770 or by replay at 888-286-8010, passcode 11079716. The conference call will be simultaneously available by webcast, which can be accessed by going to the Company's website at www.icumed.com, clicking on the Investors tab, clicking on the Webcast icon and following the prompts. The webcast will also be available by replay. Certain information provided as part of that call will be provided on the Company's website at www.icumed.com within 48 hours of the call.
This press release contains 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. Such statements contain words such as "will," "expect," "believe," "could," "would," "estimate," "continue," "build," "expand" or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding the future, including, but not limited to, statements regarding the Company's ability to control all aspects of its critical care operations, the ability to regain market share and a return to stronger growth, the ability to capitalize on worldwide market opportunities for all of the Company's products, investment in strategic initiatives, sales force expansion to take advantage of certain opportunities, and improvement of efficiencies. In addition, forward-looking statements also include the statements under the heading "Fiscal Year 2009 Guidance." These forward-looking statements are based on Management's current expectations, estimates, forecasts and projections about the Company and assumptions Management believes are reasonable, all of which are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated in the forward-looking statements. These risks and uncertainties include, but are not limited to: growing demand for our products, investments in strategic growth, continued growth and improving efficiencies. Future results are subject to risks and uncertainties, including the risk factors, and other risks and uncertainties, described in the Company's filings with the Securities and Exchange Commission, which include those in the Form 10-K for the year ended December 31, 2008 and 10-Q for the quarter ended June 30, 2009. Forward-looking statements contained in this press release are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
ICU Medical, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands, except per share data)
Sept. 30, Dec. 31,
2009 2008
--------- ---------
(unaudited) (1)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 53,259 $ 55,696
Investment securities 70,126 56,093
--------- ---------
Cash, cash equivalents and investment
securities 123,385 111,789
Accounts receivable, net of allowance for
doubtful accounts of $304 at September 30,
2009 and $320 at December 31, 2008 32,447 38,423
Inventories 44,942 17,930
Prepaid income taxes 838 4,544
Prepaid expenses and other current assets 6,196 3,471
Deferred income taxes - current portion 2,877 3,231
--------- ---------
Total current assets 210,685 179,388
--------- ---------
PROPERTY AND EQUIPMENT, net 74,486 69,897
PROPERTY HELD FOR SALE 940 940
RESTRICTED CASH 532 6,014
INVESTMENT SECURITIES - non-current portion -- 11,350
GOODWILL 1,478 --
INTANGIBLE ASSETS, net 17,263 10,780
DEFERRED INCOME TAXES - non-current portion 3,855 3,855
INCOME TAXES RECEIVABLE - non-current portion 1,210 1,210
--------- ---------
$ 310,449 $ 283,434
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 9,706 $ 7,879
Accrued liabilities 11,887 14,081
Deferred revenue 1,923 --
--------- ---------
Total current liabilities 23,516 21,960
--------- ---------
COMMITMENTS AND CONTINGENCIES -- --
DEFERRED INCOME TAXES - non-current portion 5,383 4,007
INCOME TAXES PAYABLE - non-current portion 4,663 4,436
STOCKHOLDERS' EQUITY:
Convertible preferred stock, $1.00 par value
Authorized-500 shares; issued and
outstanding- none -- --
Common stock, $0.10 par value - Authorized
-80,000 shares; Issued 14,809 shares at
September 30, 2009 and 14,784 shares at
December 31, 2008, outstanding 14,809
shares at September 30, 2009 and 14,731
shares at December 31, 2008 1,481 1,478
Additional paid-in capital 53,495 50,970
Treasury stock, at cost - 0 and 53 shares at
September 30, 2009 and December 31, 2008 -- (1,623)
Retained earnings 220,431 201,304
Accumulated other comprehensive income 1,480 902
--------- ---------
Total stockholders' equity 276,887 253,031
--------- ---------
$ 310,449 $ 283,434
========= =========
(1) December 31, 2008 balances were derived from audited
consolidated financial statements.
ICU Medical, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Amounts in thousands, except per share data)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
REVENUES:
Net sales $ 53,830 $ 54,374 $ 161,307 $ 146,427
Other 135 361 392 1,554
--------- --------- --------- ---------
TOTAL REVENUE 53,965 54,735 161,699 147,981
COST OF GOODS SOLD 28,916 29,788 84,295 84,459
--------- --------- --------- ---------
Gross profit 25,049 24,947 77,404 63,522
--------- --------- --------- ---------
OPERATING EXPENSES:
Selling, general and
administrative 16,751 13,571 48,366 40,364
Research and development 661 857 2,016 4,328
--------- --------- --------- ---------
Total operating
expenses, net 17,412 14,428 50,382 44,692
--------- --------- --------- ---------
Income from operations 7,637 10,519 27,022 18,830
OTHER INCOME 419 994 1,042 3,689
--------- --------- --------- ---------
Income before income
taxes 8,056 11,513 28,064 22,519
PROVISION FOR INCOME TAXES (1,732) (3,868) (8,937) (7,204)
--------- --------- --------- ---------
NET INCOME $ 6,324 $ 7,645 $ 19,127 $ 15,315
========= ========= ========= =========
NET INCOME PER SHARE
Basic $ 0.43 $ 0.53 $ 1.29 $ 1.09
Diluted $ 0.42 $ 0.52 $ 1.27 $ 1.06
WEIGHTED AVERAGE NUMBER OF
SHARES
Basic 14,796 14,327 14,771 14,016
Diluted 15,146 14,685 15,033 14,481
ICU Medical, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(unaudited)
Nine months ended
September 30,
-------------------
2009 2008
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 19,127 $ 15,315
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 11,280 10,714
Provision for doubtful accounts (25) (297)
Stock compensation 1,963 1,357
Cash provided (used) by changes in operating
assets and liabilities, net of assets
acquired
Accounts receivable 6,502 (6,125)
Inventories (1,754) 301
Prepaid expenses and other assets (2,425) (631)
Accounts payable 1,655 (836)
Accrued liabilities (3,240) 1,698
Deferred revenue 1,923 --
Prepaid and deferred income taxes 3,517 (162)
-------- --------
Net cash provided by operating activities 38,523 21,334
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (10,164) (9,685)
Asset purchase (30,533) --
Business acquisition, net of cash acquired (5,662) --
Change in restricted cash 5,497 --
Proceeds from finance loan repayments -- 60
Purchases of investment securities (88,237) (42,064)
Proceeds from sale of investment securities 85,554 73,543
-------- --------
Net cash provided (used) by investing
activities (43,545) 21,854
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options 1,352 5,035
Proceeds from employee stock purchase plan 1,271 1,373
Tax benefits from exercise of stock options 88 4,293
Purchase of treasury stock (560) --
-------- --------
Net cash provided by financing activities 2,151 10,701
-------- --------
Effect of exchange rate changes on cash 434 (187)
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (2,437) 53,702
CASH AND CASH EQUIVALENTS, beginning of period 55,696 7,873
-------- --------
CASH AND CASH EQUIVALENTS, end of period $ 53,259 $ 61,575
======== ========
CONTACT: ICU Medical, Inc.
Scott Lamb, Chief Financial Officer
(949) 366-2183
ICR, Inc.
John Mills, Senior Managing Director
(310) 954-1100