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8-K - HEALTHTRONICS, INC. | f8k030410fr.htm |
EX-99 - HEALTHTRONICS, INC. | f8ktrans.htm |
EXHIBIT 99.1 |
HealthTronics, Inc. Announces Fourth Quarter Results and Guidance for 2010 |
AUSTIN, Texas, March 4, 2010 (GLOBE NEWSWIRE) -- HealthTronics, Inc. (Nasdaq:HTRN), a leading provider of Urology
services and products, today announced its financial results for the quarter ended December 31, 2009. |
Our guidance for 2010 reflects a more diversified business, with non-lithotripsy revenues accounting for roughly
50% of our total revenues. Importantly, our lithotripsy revenues have grown during the same timeframe. |
| Consolidated revenue of $203 to $208 million | |
| Positive Adjusted EBITDA contribution of $32 to $34 million | |
| After Tax Cash Flow of $20 to 22 million | |
| Earnings per share of $0.25 to $0.30 |
The Companys 2010 guidance reflects continued reinvestment into growth initiatives that help position the Company for meaningful organic growth in 2011 and beyond. Full year guidance does not reflect historical quarterly seasonality in the Companys base lithotripsy business, which historically shows procedure volume increasing quarter over quarter in the second and third quarters and then tapering in the fourth quarter. The guidance does not reflect contribution from any acquisitions that may take place during 2010. |
|
Conference Call and Webcast: Management of HealthTronics will host a conference call the afternoon of Thursday,
March 4, 2010 at 5:00 pm EST. Interested parties may participate in the call by dialing 1-877-723-9521
(international callers dial 1-719-325-4942) and ask for the HealthTronics Q4 2009 Earnings Call (conference ID:
5641068). Please call in 10 minutes before the call is scheduled to begin. The conference call will also be
webcast live via the Investors section of HealthTronics' website at www.healthtronics.com. To listen to the live
webcast, go to the website at least 10 minutes early to register, download and install any necessary audio
software. If you are unable to listen live, the conference call will be archived on the HealthTronics website. |
To convert from After Tax Cash Flow to what is typically referred to as Free Cash Flow, one would subtract
capital expenditures made at the corporate level. It is important to note that the Purchases of equipment and
leasehold improvements reflected on the Companys cash flow statements includes capital expenditures at both the
corporate and partnership level and a significant portion of expenditures are made in equipment at the
partnerships. Thus, a break out of capital expenditures at the corporate and physician partnership level is
included herein. |
Cautionary Language: Statements by the Company's management made in this press release that are not strictly
historical, including statements regarding plans, objective and future financial performance, are
"forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Although HealthTronics believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given that the expectations will prove to be
correct. Factors that could cause actual results to differ materially from HealthTronics' expectations include,
among others, the existence of demand for and acceptance of HealthTronics' services, regulatory approvals,
economic conditions, the impact of competition and pricing, the availability and terms of financing and other
factors described from time to time in HealthTronics' periodic filings with the Securities and Exchange
Commission.
|
Healthtronics, Inc. and Subsidiaries |
($ in thousands, except per share data) |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2009 |
2008 |
2009 |
2008 | |||||||||||
Revenues | $ | 50,279 | $ | 44,637 | $ | 185,330 | $ | 165,942 | ||||||
Cost of revenues (exclusive of depreciation and | ||||||||||||||
amortization shown separately below) | 25,645 | 21,422 | 90,660 | 75,679 | ||||||||||
Gross profit | 24,634 | 23,215 | 94,670 | 90,263 | ||||||||||
Operating expenses: | ||||||||||||||
Selling, general and administrative | 7,340 | 5,820 | 24,046 | 20,006 | ||||||||||
Impairment charges | -- | 144,000 | -- | 144,000 | ||||||||||
Depreciation and amortization | 3,931 | 3,593 | 14,544 | 12,363 | ||||||||||
Total operating expenses | 11,271 | 153,413 | 38,590 | 176,369 | ||||||||||
Operating income | 13,363 | (130,198 | ) | 56,080 | (86,106 | ) | ||||||||
Other income (expenses): | ||||||||||||||
Interest and dividends | 6 | 135 | 101 | 1,233 | ||||||||||
Interest expense | (689 | ) | (486 | ) | (1,576 | ) | (1,077 | ) | ||||||
(683 | ) | (351 | ) | (1,475 | ) | 156 | ||||||||
Income (loss) from operations before provision | ||||||||||||||
for income taxes | 12,680 | (130,549 | ) | 54,605 | (85,950 | ) | ||||||||
Provision for income taxes | 870 | (13,246 | ) | 2,837 | (11,516 | ) | ||||||||
Consolidated net income (loss) | 11,810 | (117,303 | ) | 51,768 | (74,434 | ) | ||||||||
Less: Net income attributable to noncontrolling interest | (14,143 | ) | (13,879 | ) | (55,684 | ) | (54,259 | ) | ||||||
Net loss attributable to HealthTronics, Inc. | $ | (2,333 | ) | $ | (131,182 | ) | $ | (3,916 | ) | $ | (128,693 | ) | ||
Basic earnings per share attributable to HealthTronics, Inc.: | ||||||||||||||
Net loss attributable to HealthTronics, Inc. | $ | (0.05 | ) | $ | (3.64 | ) | $ | (0.10 | ) | $ | (3.53 | ) | ||
Weighted average shares outstanding | 43,491 | 36,004 | 39,135 | 36,499 | ||||||||||
Diluted earnings per share attributable to HealthTronics, Inc.: | ||||||||||||||
Net loss attributable to HealthTronics, Inc. | $ | (0.05 | ) | $ | (3.64 | ) | $ | (0.10 | ) | $ | (3.53 | ) | ||
Weighted average shares outstanding | 43,491 | 36,004 | 39,135 | 36,499 |
HealthTronics, Inc. and Subsidiaries |
($ in thousands) |
December 31, 2009 |
December 31, 2008 | ||||||
---|---|---|---|---|---|---|---|---|
ASSETS | ||||||||
Total current assets | $ | 58,003 | $ | 63,689 | ||||
Property and equipment, net | 32,881 | 32,769 | ||||||
Goodwill | 103,282 | 93,620 | ||||||
Other assets | 54,953 | 44,308 | ||||||
$ | 249,119 | $ | 234,386 | |||||
LIABILITIES | ||||||||
Total current liabilities | $ | 20,365 | $ | 18,274 | ||||
Long-term debt, net of current portion | 45,963 | 43,897 | ||||||
Other long-term liabilities | 9,375 | 5,120 | ||||||
Total liabilities | 75,703 | 67,291 | ||||||
Total HealthTronics, Inc. shareholders' equity | 130,390 | 119,372 | ||||||
Noncontrolling interest | 43,026 | 47,723 | ||||||
$ | 249,119 | $ | 234,386 |
HealthTronics, Inc. and Subsidiaries |
(In thousands, except per share data) |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2009 |
2008 |
2009 |
2008 |
|||||||||||
Summary of results from operations | ||||||||||||||
Revenues | $ | 50,279 | $ | 44,637 | $ | 185,330 | $ | 165,942 | ||||||
EBITDA(a) | $ | 22,667 | $ | 19,671 | $ | 82,292 | $ | 76,263 | ||||||
Adjusted EBITDA(a) | $ | 8,524 | $ | 5,792 | $ | 26,608 | $ | 22,004 | ||||||
Net income | $ | (2,333 | ) | $ | (131,182 | ) | $ | (3,916 | ) | $ | (128,693 | ) | ||
EPS | $ | (0.05 | ) | $ | (3.64 | ) | $ | (0.10 | ) | $ | (3.53 | ) | ||
Number of shares | 43,491 | 36,004 | 39,135 | 36,499 | ||||||||||
Other information: | ||||||||||||||
After tax cash flow(a) | $ | 5,018 | (b) | (b) | (b) | |||||||||
Net draws (payments) on senior credit facility | $ | -- | $ | 35,000 | $ | 3,000 | $ | 41,000 | ||||||
Net debt | $ | 40,107 | $ | 23,533 | $ | 40,107 | $ | 23,533 | ||||||
Capital expenditures: | ||||||||||||||
Corporate level | $ | 3,309 | $ | 2,269 | $ | 4,913 | $ | 7,942 | ||||||
Partnership level | 2,681 | 748 | 6,789 | 3,837 | ||||||||||
Total | $ | 5,990 | $ | 3,017 | $ | 11,702 | $ | 11,779 |
(a) See accompanying reconciliation of EBITDA, Adjusted EBITDA, and After Tax Cash Flow. |
HealthTronics, Inc. and Subsidiaries |
(In thousands) | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
ADJUSTED EBITDA |
||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||
Consolidated |
2009 |
2008 |
2009 |
2008 | ||||||||||
Loss from continuing operations | $ | (2,333 | ) | $ | (131,182 | ) | $ | (3,916 | ) | $ | (128,693 | ) | ||
Add Back (deduct): | ||||||||||||||
Provision for income taxes | 870 | (13,246 | ) | 2,837 | (11,516 | ) | ||||||||
Interest expense | 689 | 486 | 1,576 | 1,077 | ||||||||||
Depreciation and amortization | 3,931 | 3,593 | 14,544 | 12,363 | ||||||||||
Restructuring costs | 4,763 | 1,730 | 8,649 | 1,892 | ||||||||||
Impairment of goodwill | -- | 144,000 | -- | 144,000 | ||||||||||
Sharebased compensation costs | 604 | 411 | 2,918 | 2,881 | ||||||||||
Adjusted EBITDA | 8,524 | 5,792 | 26,608 | 22,004 | ||||||||||
Add Back: | ||||||||||||||
Noncontrolling interest expense | 14,143 | 13,879 | 55,684 | 54,259 | ||||||||||
EBITDA | $ | 22,667 | $ | 19,671 | $ | 82,292 | $ | 76,263 |
AFTER TAX CASH FLOW |
|||||
---|---|---|---|---|---|
Three Months Ended December 31, 2009 | |||||
Cash provided by operating activities | $ | 17,628 | |||
Add Back (deduct): | |||||
Cash paid for acquisition related costs | 536 | ||||
Distributions to noncontrolling interests | (14,917 | ) | |||
Loan fees | 379 | ||||
Restructuring costs | 1,392 | ||||
After tax cash flow | $ | 5,018 |
NON GAAP NET INCOME |
||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||
Consolidated |
2009 |
2008 |
2009 |
2008 | ||||||||||
Income (loss) from continuing operations | $ | (2,333 | ) | $ | (131,182 | ) | $ | (3,916 | ) | $ | (128,693 | ) | ||
Add Back (deduct): | ||||||||||||||
Provision for income taxes | 870 | (13,246 | ) | 2,837 | (11,516 | ) | ||||||||
Restructuring costs | 4,763 | 1,730 | 8,649 | 1,892 | ||||||||||
Impairment charges | -- | 144,000 | -- | 144,000 | ||||||||||
Sharebased compensation costs | 604 | 411 | 2,918 | 2,881 | ||||||||||
3,904 | 1,713 | 10,488 | 8,564 | |||||||||||
Provision for income taxes at a | ||||||||||||||
normalized rate of 38.5% | (1,503 | ) | (660 | ) | (4,038 | ) | (3,297 | ) | ||||||
Non - GAAP net income | $ | 2,401 | $ | 1,053 | $ | 6,450 | $ | 5,267 | ||||||
Non - GAAP net income per share | $ | 0.06 | $ | 0.03 | $ | 0.16 | $ | 0.14 |
EBITDA - Endocare |
|||||
---|---|---|---|---|---|
Three Months Ended December 31, 2009 | |||||
Loss from continuing operations - Endocare | $ | (659 | ) | ||
Add Back (deduct): | |||||
Depreciation and amortization - Endocare | 480 | ||||
Restructuring costs - Endocare | 3,117 | ||||
EBITDA - Endocare | $ | 2,938 |
HealthTronics, Inc. and Subsidiaries |
Adjusted EBITDA - HealthTronics Guidance Mid-Point of Range |
|||||
---|---|---|---|---|---|
Year Ended December 31, 2010 | |||||
Income from continuing operations | $ | 12,400 | |||
Add Back (deduct): | |||||
Provision for income taxes | 1,600 | ||||
Interest expense | 2,000 | ||||
Depreciation and amortization | 15,000 | ||||
Sharebased compensation costs | 2,000 | ||||
Adjusted EBITDA | $ | 33,000 |
AFTER TAX CASH FLOW - HealthTronics Guidance Mid-Point of Range |
|||||
---|---|---|---|---|---|
Year Ended December 31, 2010 | |||||
Cash provided by operating activities | $ | 80,000 | |||
Add Back (deduct): | |||||
Distributions to noncontrolling interests | (59,000 | ) | |||
After tax cash flow | $ | 21,000 |