Attached files
| file | filename |
|---|---|
| 8-K - COVER PAGE AND SIGNATURE - HAEMONETICS CORP | hae20124308k.htm |
 | ||
Exhibit 99.1 | |||
News Release | |||
FOR RELEASE: | CONTACT: | ||
Date | April 29, 2012 | Gerry Gould, VP-Investor Relations | |
Time | 12:00 pm Eastern | Tel. (781) 356-9402 | |
gerry.gould@haemonetics.com | |||
Alt. (781) 356-9613 | |||
Haemonetics Reports 10% Revenue Growth for Fourth Quarter of Fiscal 2012 and $0.80 Adjusted EPS; Also Establishes Fiscal 2013 Guidance
Braintree, MA, April 29, 2012 - Haemonetics Corporation (NYSE: HAE) today reported fourth quarter 2012 GAAP net revenue of $186.7 million, up 10%, net income of $17.8 million, down 15%, and diluted earnings per share of $0.69, down 14%. Excluding restructuring, transformation and transaction costs, adjusted fourth quarter net income was $20.6 million, down 6%, and adjusted earnings per share were $0.80, down 5%. Excluding currency impacts, net revenue was up 8% in the quarter.1
For fiscal year 2012, Haemonetics reported GAAP net revenue of $727.8 million, up 8%, net income of $66.9 million, down 16%, and diluted earnings per share of $2.59, down 17%. Excluding restructuring, transformation and transaction costs and contingent consideration income, adjusted net income was $78.4 million, down 6%, and adjusted earnings per share were $3.04, down 7%. Excluding currency impacts, year to date fiscal 2012 net revenue was up 6%.1
Brian Concannon, Haemonetics' President and CEO, commented: “The fourth quarter performance completes a fiscal year in which we realized revenue growth every quarter. Plasma disposables growth continued to be strong and our blood management solutions gained traction as the year progressed. This was evident in both Blood Center and Hospital disposables. Growth in Hospital disposables was fueled by demand for the Cell Saver® Elite®, our newest cell salvage device, and continued demand for TEG® disposables as hospital customers continue to seek ways to reduce costs and improve clinical outcomes under the mounting pressures of healthcare reform.”
STRATEGIC AND PRODUCT GROWTH HIGHLIGHTS
Haemonetics continues to make progress expanding its business, reporting the following fourth quarter fiscal 2012 highlights:
• | 13% revenue growth in plasma disposables, as collection volume remains robust. |
• | 9% revenue growth in Blood Center disposables, as platelet growth drives revenues. |
• | 27% revenue growth in diagnostic disposables products, with Blood Management Solutions driving growth at leading US hospitals. |
• | 17% growth in equipment sales, giving confidence that disposables revenue growth will continue. |
• | IMPACT® accounts increased by 21 in the quarter to 258 as more customers embrace the value of blood management. |
• | OrthoPAT® device recall, build and replacement substantially completed. |
• | HS Core Bowl reintroduced via limited market release, completion expected in Q1 of fiscal 2013. |
• | Extended another multi-year comprehensive equipment and disposables supply agreement with a commercial plasma customer. |
• | 75% of current commercial plasma business now under contract through Q3 of fiscal 2017 and over 98% through Q3 of fiscal 2015. |
1
| ||
Mr. Concannon added: “As we close out fiscal 2012, we are in a very good position to succeed in all of our businesses. The Plasma contract extensions enable us and our customers to confidently plan for and accommodate the growth in demand that is expected in the plasma collection market. Growth in red cell and platelet disposables validates the value inherent in our Blood Management Solutions for our Blood Center customers. And the combination of new OrthoPAT devices, strong demand for TEG devices, our new Cell Saver Elite and an expanding IMPACT customer base bodes well for growth in our Hospital business.”
Revenue was $186.7 million in the quarter, up 10% and $727.8 million in the full fiscal year, up 8%. A revenue breakdown follows:
Plasma
Plasma disposables revenue was $61.9 million for the quarter, up 13%, and $258.1 million for fiscal 2012, up 14%. In the quarter, momentum continued as expected in Haemonetics' North America plasma business and was unusually strong in Japan due to the Japanese Red Cross (“JRC”) increasing inventories of our disposables in anticipation of a system conversion. The company expects its plasma business to have a mid-single digit percentage growth in fiscal 2013 consistent with end market growth rates for plasma derived biopharmaceuticals, despite the first quarter correction of the JRC inventory.
Blood Center
Platelet disposables revenue was $44.1 million for the quarter, up 13%, and $167.9 million in fiscal 2012, up 7%. Platelet revenue continues to benefit from strong sales in emerging markets and the impact of the JRC system conversion.
Red cell disposables revenue was $12.4 million for the quarter, down 1%, in comparison with a strong prior year quarter and $48.0 million in fiscal 2012, up 3%. Though the clinical demand for blood remains flat, red cell revenue grew in fiscal 2012 due to increased collections on the Company's devices as the Company leveraged its IMPACT selling approach to advance Blood Management Solutions.
Hospital
Surgical disposables revenue was $17.3 million for the quarter, up 2%, and $66.6 million in fiscal 2012, flat with the prior year. Notably this was the third consecutive increase after eight consecutive quarters of decline, as the product launch of the Cell Saver Elite device accelerated as expected. Strong Cell Saver Elite equipment sales in the quarter should provide strong near-term disposables growth. Disposables revenue from our OrthoPAT orthopedic perioperative autotransfusion system was $8.4 million in the quarter, down 8%, and $31.2 million in fiscal 2012, down 12%, as the impact of the voluntary recall of pre-2002 devices upon disposables usage began to diminish.
Diagnostics revenue was $6.1 million for the quarter, up 27%, and $23.1 million in the fiscal year, up 19%, as the company's IMPACT initiative continues to drive growth in disposables utilized in the TEG® Thrombelastograph® Hemostasis Analyzer business. TEG equipment sales were especially strong toward the end of the third quarter, a known key indicator for near-term future disposables revenue growth. TEG disposables sales increased 127% in the quarter in China.
Software Solutions revenue was $19.3 million for the quarter, up 9% over a strong prior year quarter, and $70.6 million in fiscal 2012, up 6%. The enhanced offering of software products for Blood Center and Hospital customers continued to drive revenue growth in North America, where a major customer implemented Blood Track, and several installations were completed in the UK.
Equipment and other revenue was $17.2 million in the quarter, up 17%, and $62.4 million in the full fiscal year, up 8%. Equipment revenue is influenced by the timing of tenders and capital budgets. Sales of Cell Saver Elite devices in North America were particularly strong in the quarter.
2
| ||
Haemonetics reported fourth quarter fiscal 2012 revenue growth of 9% in North America, 24% in Japan, 11% in Asia and 2% in Europe. For fiscal 2012, North America revenue was up 11%, Japan revenue was up 13%, Asia revenue was up 9% and Europe revenue was down 2%.
In the quarter, Haemonetics reported adjusted gross margin of 50.8%, down 70 basis points, and adjusted operating margin of 14.5%, down 350 basis points. The Company's adjusted operating expenses were $67.7 million, up 19%. Gross and operating margins were significantly impacted by product recall and quality-related issues that normalized by the end of the quarter. The negative impact on operating results due to our product quality initiatives was approximately 150 basis points of gross margin and $3.5 million of operating earnings, which equates to $0.10 per share in the quarter; and 160 basis points of gross margin and $14.5 million of operating earnings, which equates to $0.41 per share in fiscal 2012.
Balance Sheet and Cash Flow
Cash on hand was $229 million, an increase of $24 million during the quarter. The Company reported continued strong cash flows, though at somewhat reduced levels from the prior year due to the impact of the product recall and other quality-related issues. The cash balance on hand is net of a $50 million share buyback completed in the second quarter of fiscal 2012.
Guidance
Fiscal 2013 organic revenue growth is expected to be approximately 4-6%, with Plasma expected to grow 4-6%, Blood Center 0-2%, Hospital products 12-15% and Software Solutions 5-7%. Full year adjusted gross margin is expected to be in a range of 52-53%, adjusted operating income between $117-$119 million, adjusted earnings per share between $3.30-$3.40, up 9%-12% over fiscal 2012, and free cash flow approximating $85 million, all on an organic basis exclusive of planned acquisitions. Excluding the expected one-time costs associated with two business acquisitions, which are the subject of separate press releases issued today, Haemonetics anticipates the impact to adjusted earnings per share to be at least neutral in fiscal 2013, and accretive in fiscal 2014 and beyond.
More information on the impact of the cost of quality on our adjusted operating results, both for the fourth quarter and the full year, can be found on our web site at http://www.haemonetics.com.1
CONFERENCE CALL
In consideration of the need to discuss the implications of the two acquisition announcements in addition to these quarterly and full year results, Haemonetics will host its webcast two hours earlier than previously communicated, on Monday, April 30, 2012 at 8:00 am Eastern time. Interested parties can participate at:
http://phoenix.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=72118&eventID=4702718.
Haemonetics (NYSE: HAE) is a global healthcare company dedicated to providing innovative blood management solutions for our customers. Together, our devices and consumables, information technology platforms, and consulting services deliver a suite of business solutions to help our customers improve clinical outcomes and reduce the cost of healthcare for blood collectors, hospitals, and patients around the world. Our technologies address important medical markets: blood and plasma component collection, the surgical suite, and hospital transfusion services. To learn more about Haemonetics, visit our web site at http://www.haemonetics.com.
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, product quality, 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
3
| ||
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.
These forward-looking statements are based on estimates and assumptions made by management of the Company and are believed to be reasonable, though inherently uncertain and difficult to predict. Actual results and experience could differ materially from the forward-looking statements. Information set forth in this press release is current as of today and the Company undertakes no duty or obligation to update this information.
1A reconciliation of GAAP to adjusted financial results is included at the end of the financial sections of this press release as well as on the web at http://www.haemonetics.com. GAAP results include the following items which are excluded from adjusted results: $6.1 million of pre-tax restructuring, transformation and transaction costs in the fourth quarter of fiscal 2012; $1.7 million in pre-tax restructuring and transformation costs in the fourth quarter of fiscal 2011; $19.3 million of pre-tax restructuring, transformation and transaction costs and $1.6 million of contingent consideration income in fiscal 2012; and $8.3 million in pre-tax restructuring and integration costs and $1.9 million of contingent consideration in fiscal 2011. Fiscal 2012 pre-tax restructuring and transformation costs excluded from adjusted financial results include $4.5 million of transaction costs and $3.1 million of expenses for customer claims arising from the HS Core Bowl quality issue. Fiscal 2013 guidance excludes: $20-25 million of planned costs associated with the completion and integration of the two transactions announced today. Those costs include transaction costs necessary to finalize the transaction, and costs necessary to integrate the acquisitions including a dedicated integration team. Onetime adjustments to increase the cost of inventory acquired in the two transactions, such that only a distributor's profit is earned on the first turn of the acquired inventory, will also be excluded from adjusted financial results.
4
Haemonetics Corporation Financial Summary | ||||||||||||
(Unaudited data in thousands, except per share data) | ||||||||||||
Consolidated Statements of Income for the Fourth Quarter of FY12 and FY11 | ||||||||||||
3/31/2012 | 4/2/2011 | % Inc/(Dec) | ||||||||||
As Reported | As Reported | vs Prior Year | ||||||||||
Net revenues | $ | 186,670 | $ | 170,033 | 9.8 | % | ||||||
Gross profit | 94,612 | 87,501 | 8.1 | % | ||||||||
R&D | 8,611 | 8,786 | (2.0 | )% | ||||||||
S,G&A | 65,041 | 49,820 | 30.6 | % | ||||||||
Operating expenses | 73,652 | 58,606 | 25.7 | % | ||||||||
Operating income | 20,960 | 28,895 | (27.5 | )% | ||||||||
Other income (expense), net | 369 | (323 | ) | (214.2 | )% | |||||||
Income before taxes | 21,329 | 28,572 | (25.3 | )% | ||||||||
Tax expense | 3,524 | 7,584 | (53.5 | )% | ||||||||
Net income | $ | 17,805 | $ | 20,988 | (15.2 | )% | ||||||
Net income per common share assuming dilution | $ | 0.69 | $ | 0.81 | (14.2 | )% | ||||||
Weighted average number of shares: | ||||||||||||
Basic | 25,229 | 25,509 | ||||||||||
Diluted | 25,678 | 25,970 | ||||||||||
Profit Margins: | Inc/(Dec) vs prior year profit margin % | |||||||||||
Gross profit | 50.7 | % | 51.5 | % | (0.8 | )% | ||||||
R&D | 4.6 | % | 5.2 | % | (0.6 | )% | ||||||
S,G&A | 34.8 | % | 29.3 | % | 5.5 | % | ||||||
Operating income | 11.2 | % | 17.0 | % | (5.8 | )% | ||||||
Income before taxes | 11.4 | % | 16.8 | % | (5.4 | )% | ||||||
Net income | 9.5 | % | 12.3 | % | (2.8 | )% | ||||||
5
Haemonetics Corporation Financial Summary | ||||||||||||
(Unaudited data in thousands, except per share data) | ||||||||||||
Consolidated Statements of Income for FY12 and FY11 | ||||||||||||
3/31/2012 | 4/2/2011 | % Inc/(Dec) | ||||||||||
As Reported | As Reported | vs Prior Year | ||||||||||
Net revenues | $ | 727,844 | $ | 676,694 | 7.6 | % | ||||||
Gross profit | 369,240 | 355,209 | 4.0 | % | ||||||||
R&D | 36,801 | 32,656 | 12.7 | % | ||||||||
S,G&A | 245,261 | 213,899 | 14.7 | % | ||||||||
Contingent consideration income | (1,580 | ) | (1,894 | ) | (16.6 | )% | ||||||
Operating expenses | 280,482 | 244,661 | 14.6 | % | ||||||||
Operating income | 88,758 | 110,548 | (19.7 | )% | ||||||||
Other income (expense), net | 740 | (467 | ) | (258.5 | )% | |||||||
Income before taxes | 89,498 | 110,081 | (18.7 | )% | ||||||||
Tax expense | 22,612 | 30,101 | (24.9 | )% | ||||||||
Net income | $ | 66,886 | $ | 79,980 | (16.4 | )% | ||||||
Net income per common share assuming dilution | $ | 2.59 | $ | 3.12 | (16.9 | )% | ||||||
Weighted average number of shares: | ||||||||||||
Basic | 25,364 | 25,077 | ||||||||||
Diluted | 25,795 | 25,596 | ||||||||||
Profit Margins: | Inc/(Dec) vs prior year profit margin % | |||||||||||
Gross profit | 50.7 | % | 52.5 | % | (1.8 | )% | ||||||
R&D | 5.1 | % | 4.8 | % | 0.3 | % | ||||||
S,G&A | 33.7 | % | 31.6 | % | 2.1 | % | ||||||
Operating income | 12.2 | % | 16.3 | % | (4.1 | )% | ||||||
Income before taxes | 12.3 | % | 16.3 | % | (4.0 | )% | ||||||
Net income | 9.2 | % | 11.8 | % | (2.6 | )% | ||||||
6
Revenue Analysis for the Fourth Quarter and FY12 and FY11 | |||||||||||
(Unaudited data in thousands) | |||||||||||
Three Months Ended | |||||||||||
3/31/2012 | 4/2/2011 | % Inc/(Dec) | |||||||||
As Reported | As Reported | vs Prior Year | |||||||||
Revenues by geography | |||||||||||
United States | $ | 87,485 | $ | 80,277 | 9.0 | % | |||||
International | 99,185 | 89,756 | 10.5 | % | |||||||
Net revenues | $ | 186,670 | $ | 170,033 | 9.8 | % | |||||
Disposable revenues | |||||||||||
Plasma disposables | $ | 61,855 | $ | 54,965 | 12.5 | % | |||||
Blood center disposables | |||||||||||
Platelet | 44,058 | 39,130 | 12.6 | % | |||||||
Red cell | 12,358 | 12,545 | (1.5 | )% | |||||||
56,416 | 51,675 | 9.2 | % | ||||||||
Hospital disposables | |||||||||||
Surgical | 17,338 | 17,024 | 1.8 | % | |||||||
OrthoPAT | 8,382 | 9,145 | (8.3 | )% | |||||||
Diagnostics | 6,132 | 4,839 | 26.7 | % | |||||||
31,852 | 31,008 | 2.7 | % | ||||||||
Subtotal | 150,123 | 137,648 | 9.1 | % | |||||||
Software solutions | 19,349 | 17,722 | 9.2 | % | |||||||
Equipment & other | 17,198 | 14,663 | 17.3 | % | |||||||
Net revenues | $ | 186,670 | $ | 170,033 | 9.8 | % | |||||
Year Ended | |||||||||||
3/31/2012 | 4/2/2011 | % Inc/(Dec) | |||||||||
As Reported | As Reported | vs Prior Year | |||||||||
Revenues by geography | |||||||||||
United States | $ | 352,160 | $ | 317,355 | 11.0 | % | |||||
International | 375,684 | 359,339 | 4.5 | % | |||||||
Net revenues | $ | 727,844 | $ | 676,694 | 7.6 | % | |||||
Disposable revenues | |||||||||||
Plasma disposables | $ | 258,061 | $ | 227,209 | 13.6 | % | |||||
Blood center disposables | |||||||||||
Platelet | 167,946 | 156,251 | 7.5 | % | |||||||
Red cell | 48,034 | 46,828 | 2.6 | % | |||||||
215,980 | 203,079 | 6.4 | % | ||||||||
Hospital disposables | |||||||||||
Surgical | 66,619 | 66,503 | 0.2 | % | |||||||
OrthoPAT | 31,186 | 35,631 | (12.5 | )% | |||||||
Diagnostics | 23,087 | 19,414 | 18.9 | % | |||||||
120,892 | 121,548 | (0.5 | )% | ||||||||
Subtotal | 594,933 | 551,836 | 7.8 | % | |||||||
Software solutions | 70,557 | 66,876 | 5.5 | % | |||||||
Equipment & other | 62,354 | 57,982 | 7.5 | % | |||||||
Net revenues | $ | 727,844 | $ | 676,694 | 7.6 | % | |||||
7
Consolidated Balance Sheets | |||||||||
As of | |||||||||
3/31/2012 | 4/2/2011 | ||||||||
Assets | |||||||||
Cash and cash equivalents | $ | 228,861 | $ | 196,707 | |||||
Accounts receivable, net | 135,464 | 127,166 | |||||||
Inventories, net | 117,163 | 84,387 | |||||||
Other current assets | 45,138 | 40,571 | |||||||
Total current assets | 526,626 | 448,831 | |||||||
Net PP&E | 161,657 | 155,528 | |||||||
Other assets | 222,349 | 228,905 | |||||||
Total assets | $ | 910,632 | $ | 833,264 | |||||
As of | |||||||||
3/31/2012 | 4/2/2011 | ||||||||
Liabilities & Stockholders' Equity | |||||||||
Short term debt & current maturities | $ | 894 | $ | 913 | |||||
Other current liabilities | 129,850 | 107,758 | |||||||
Total current liabilities | 130,744 | 108,671 | |||||||
Long-term debt | 2,877 | 3,966 | |||||||
Other long-term liabilities | 41,936 | 34,491 | |||||||
Stockholders' equity | 735,075 | 686,136 | |||||||
Total liabilities & stockholders' equity | $ | 910,632 | $ | 833,264 | |||||
8
Free Cash Flow Reconciliation | |||||||
Three Months Ended | |||||||
3/31/2012 | 4/2/2011 | ||||||
GAAP cash flow from operations | $ | 33,975 | $ | 32,139 | |||
Capital expenditures | (16,239 | ) | (11,683 | ) | |||
Proceeds from sale of property, plant and equipment | 485 | 1,134 | |||||
Net investment in property, plant and equipment | (15,754 | ) | (10,549 | ) | |||
Free cash flow after restructuring and transformation costs | 18,221 | 21,590 | |||||
Restructuring and transformation costs | 3,088 | 3,222 | |||||
3,088 | 3,222 | ||||||
Free cash flow before restructuring and transformation costs | $ | 21,309 | $ | 24,812 | |||
Year Ended | |||||||
3/31/2012 | 4/2/2011 | ||||||
GAAP cash flow from operations | $ | 115,318 | $ | 123,455 | |||
Capital expenditures | (53,198 | ) | (46,669 | ) | |||
Proceeds from sale of property, plant and equipment | 1,002 | 1,468 | |||||
Net investment in property, plant and equipment | (52,196 | ) | (45,201 | ) | |||
Free cash flow after restructuring and transformation costs | 63,122 | 78,254 | |||||
Restructuring and transformation costs | 12,336 | 12,567 | |||||
Global Med employment contracts | — | 2,122 | |||||
12,336 | 14,689 | ||||||
Free cash flow before restructuring and transformation costs | $ | 75,458 | $ | 92,943 | |||
9
Cost of Quality | ||||||||
(in thousands, except per share data) | ||||||||
The cost of quality are included in both GAAP and Non-GAAP results. This table is intended to provide further details. | ||||||||
Q4 FY12 | Full Year | |||||||
Revenue | $ | (2,013 | ) | $ | (9,012 | ) | ||
Standard Margin | $ | (2,177 | ) | $ | (9,489 | ) | ||
Gross Profit | $ | (2,766 | ) | $ | (11,735 | ) | ||
Operating Expenses | $ | 704 | $ | 2,760 | ||||
Operating Income | $ | (3,470 | ) | $ | (14,495 | ) | ||
Earnings Per Share | $ | (0.10 | ) | $ | (0.41 | ) | ||
10
Haemonetics Corporation Financial Summary | ||||
Reconciliation of Non-GAAP Measures | ||||
Haemonetics has presented supplemental non-GAAP financial measures as part of this earnings release. A reconciliation is provided below that reconciles each non-GAAP financial measure with the most comparable GAAP measure. The presentation of non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the most directly comparable GAAP measures. There are material limitations to the usefulness of non-GAAP measures on a standalone basis, including the lack of comparability to the GAAP financial results of other companies. | ||||
These measures are used by management to monitor the financial performance of the business, inform business decision making, and forecast future results. Performance targets for management are established based upon these non-GAAP measures. In the reconciliations below, we have removed restructuring and transformation costs from our GAAP expenses. Our restructuring and transformation costs are principally related to transaction costs, HS Core customer related expenses, restructuring of certain departments and the disposal of a product line. We believe this information is useful for investors because it allows for an evaluation of the Company with a focus on the performance of our core operations. | ||||
Non-GAAP Gross Profit The use of these non-GAAP measures allows management to monitor the level of total gross profits without the costs of our business transformation. We establish our budgets, forecasts, and performance targets on this basis. | ||||
Non-GAAP S,G&A and Non-GAAP Operating Expenses The use of this non-GAAP measure allows management to monitor the ongoing level of spend that is necessary to support the business in a period when we are not transforming our business or completing an acquisition of in-process research and development. We establish our budgets, forecasts, and performance targets excluding these costs. | ||||
Non-GAAP Operating Income and Non-GAAP Income before Income Taxes The use of these non-GAAP measures allows management to monitor the level of operating and total pre-tax profits without the costs of our business transformation. We establish our budgets, forecasts, and performance targets on this basis. | ||||
Non-GAAP Net Income and Earnings per Share The use of these non-GAAP measures allows management to monitor the level of net income and earnings per share excluding both the costs of our business transformation, as well as any related tax effects. We establish our budgets, forecasts, and performance targets on this basis. | ||||
11
Reconciliation of Non-GAAP Measures for the Fourth Quarter of FY12 and FY11 | ||||||||
Three Months Ended | ||||||||
3/31/2012 | 4/2/2011 | |||||||
Non-GAAP gross profit | ||||||||
GAAP gross profit | $ | 94,612 | $ | 87,501 | ||||
Restructuring and transformation costs | 167 | — | ||||||
Non-GAAP gross profit | $ | 94,779 | $ | 87,501 | ||||
Non-GAAP R&D | ||||||||
GAAP R&D | $ | 8,611 | $ | 8,786 | ||||
Restructuring and transformation costs | (962 | ) | — | |||||
Non-GAAP R&D | $ | 7,649 | $ | 8,786 | ||||
Non-GAAP S,G&A | ||||||||
GAAP S,G&A | $ | 65,041 | $ | 49,820 | ||||
Restructuring and transformation costs | (4,998 | ) | (1,705 | ) | ||||
Non-GAAP S,G&A | $ | 60,043 | $ | 48,115 | ||||
Non-GAAP operating expenses | ||||||||
GAAP operating expenses | $ | 73,652 | $ | 58,606 | ||||
Restructuring and transformation costs | (5,960 | ) | (1,705 | ) | ||||
Contingent consideration income | — | — | ||||||
Non-GAAP operating expenses | $ | 67,692 | $ | 56,901 | ||||
Non-GAAP operating income | ||||||||
GAAP operating income | $ | 20,960 | $ | 28,895 | ||||
Restructuring and transformation costs | 6,127 | 1,705 | ||||||
Contingent consideration income | — | — | ||||||
Non-GAAP operating income | 27,087 | $ | 30,600 | |||||
Non-GAAP income before taxes | ||||||||
GAAP income before taxes | $ | 21,329 | $ | 28,572 | ||||
Restructuring and transformation costs | 6,127 | 1,705 | ||||||
Contingent consideration income | — | — | ||||||
Non-GAAP income before taxes | $ | 27,456 | $ | 30,277 | ||||
Non-GAAP net income | ||||||||
GAAP net income | $ | 17,805 | $ | 20,988 | ||||
Restructuring and transformation costs | 6,127 | 1,705 | ||||||
Contingent consideration income | — | — | ||||||
Tax benefit associated with non-GAAP items | (3,282 | ) | (681 | ) | ||||
Non-GAAP net income | $ | 20,650 | $ | 22,012 | ||||
Non-GAAP net income per common share assuming dilution | ||||||||
GAAP net income per common share assuming dilution | $ | 0.69 | $ | 0.81 | ||||
Non-GAAP items after tax per common share assuming dilution | $ | 0.11 | $ | 0.04 | ||||
Non-GAAP net income per common share assuming dilution | $ | 0.80 | $ | 0.85 | ||||
12
Presented below are additional Constant Currency performance measures. We measure different components of our business at constant currency. We believe this information is useful for investors because it allows for an evaluation of the Company without the effect of changes in foreign exchange rates. These results convert our local foreign currency operating results to the US Dollar at constant exchange rates of 0.833 Euro to 1.00 US Dollar and 110 Yen to 1.00 US Dollar. They also exclude the results of our foreign currency hedging program described in Note 7 to our consolidated financial statements in our Form 10-K. | ||||||||
Three Months Ended | ||||||||
3/31/2012 | 4/2/2011 | |||||||
Non-GAAP revenues | ||||||||
GAAP revenue | $ | 186,670 | $ | 170,033 | ||||
Foreign currency effects | (14,614 | ) | (11,449 | ) | ||||
Non-GAAP revenue - constant currency | $ | 172,056 | $ | 158,584 | ||||
Non-GAAP net income | ||||||||
Non-GAAP net income, adjusted for restructuring and transformation costs | $ | 20,650 | $ | 22,012 | ||||
Foreign currency effects | (4,815 | ) | (4,135 | ) | ||||
Income tax associated with foreign currency effects | ||||||||
Non-GAAP net income - constant currency | $ | 15,835 | $ | 17,877 | ||||
Non-GAAP net income per common share assuming dilution | ||||||||
Non-GAAP net income per common share assuming dilution, adjusted for restructuring and transformation costs | $ | 0.80 | $ | 0.85 | ||||
Foreign currency effects after tax per common share assuming dilution | $ | (0.18 | ) | $ | (0.16 | ) | ||
Non-GAAP net income per common share assuming dilution - constant currency | $ | 0.62 | $ | 0.69 | ||||
13
Reconciliation of Non-GAAP Measures for FY12 and FY11 | ||||||||
Year Ended | ||||||||
3/31/2012 | 4/2/2011 | |||||||
Non-GAAP gross profit | ||||||||
GAAP gross profit | $ | 369,240 | $ | 355,209 | ||||
Restructuring and transformation costs | 1,510 | — | ||||||
Non-GAAP gross profit | $ | 370,750 | $ | 355,209 | ||||
Non-GAAP R&D | ||||||||
GAAP R&D | $ | 36,801 | $ | 32,656 | ||||
Restructuring and transformation costs | (2,864 | ) | — | |||||
Non-GAAP R&D | $ | 33,937 | $ | 32,656 | ||||
Non-GAAP S,G&A | ||||||||
GAAP S,G&A | $ | 245,261 | $ | 213,899 | ||||
Restructuring and transformation costs | (14,947 | ) | (8,303 | ) | ||||
Non-GAAP S,G&A | $ | 230,314 | $ | 205,596 | ||||
Non-GAAP operating expenses | ||||||||
GAAP operating expenses | $ | 280,482 | $ | 244,661 | ||||
Restructuring and transformation costs | (17,811 | ) | (8,303 | ) | ||||
Contingent consideration income | 1,580 | 1,894 | ||||||
Non-GAAP operating expenses | $ | 264,251 | $ | 238,252 | ||||
Non-GAAP operating income | ||||||||
GAAP operating income | $ | 88,758 | $ | 110,548 | ||||
Restructuring and transformation costs | 19,321 | 8,303 | ||||||
Contingent consideration income | (1,580 | ) | (1,894 | ) | ||||
Non-GAAP operating income | $ | 106,499 | $ | 116,957 | ||||
Non-GAAP income before taxes | ||||||||
GAAP income before taxes | $ | 89,498 | $ | 110,081 | ||||
Restructuring and transformation costs | 19,321 | 8,303 | ||||||
Contingent consideration income | (1,580 | ) | (1,894 | ) | ||||
Non-GAAP income before taxes | $ | 107,239 | $ | 116,490 | ||||
Non-GAAP net income | ||||||||
GAAP net income | $ | 66,886 | $ | 79,980 | ||||
Restructuring and transformation costs | 19,321 | 8,303 | ||||||
Contingent consideration income | (1,580 | ) | (1,894 | ) | ||||
Tax benefit associated with non-GAAP items | (6,227 | ) | (2,622 | ) | ||||
Non-GAAP net income | $ | 78,400 | $ | 83,767 | ||||
Non-GAAP net income per common share assuming dilution | ||||||||
GAAP net income per common share assuming dilution | $ | 2.59 | $ | 3.12 | ||||
Non-GAAP items after tax per common share assuming dilution | $ | 0.45 | $ | 0.15 | ||||
Non-GAAP net income per common share assuming dilution | $ | 3.04 | $ | 3.27 | ||||
14
Presented below are additional Constant Currency performance measures. We measure different components of our business at constant currency. We believe this information is useful for investors because it allows for an evaluation of the Company without the effect of changes in foreign exchange rates. These results convert our local foreign currency operating results to the US Dollar at constant exchange rates of 0.833 Euro to 1.00 US Dollar and 110 Yen to 1.00 US Dollar. They also exclude the results of our foreign currency hedging program described in Note 7 to our consolidated financial statements in our Form 10-K. | ||||||||
Year Ended | ||||||||
3/31/2012 | 4/2/2011 | |||||||
Non-GAAP revenues | ||||||||
GAAP revenue | $ | 727,844 | $ | 676,694 | ||||
Foreign currency effects | (54,720 | ) | (41,237 | ) | ||||
Non-GAAP revenue - constant currency | $ | 673,124 | $ | 635,457 | ||||
Non-GAAP net income | ||||||||
Non-GAAP net income, adjusted for restructuring, transformation costs and contingent consideration income | $ | 78,400 | $ | 83,767 | ||||
Foreign currency effects | (14,479 | ) | (13,207 | ) | ||||
Income tax associated with foreign currency effects | — | 2 | ||||||
Non-GAAP net income - constant currency | $ | 63,921 | $ | 70,562 | ||||
Non-GAAP net income per common share assuming dilution | ||||||||
Non-GAAP net income per common share assuming dilution, adjusted for restructuring, transformation costs and contingent consideration income | $ | 3.04 | $ | 3.27 | ||||
Foreign currency effects after tax per common share assuming dilution | $ | (0.56 | ) | $ | (0.51 | ) | ||
Non-GAAP net income per common share assuming dilution - constant currency | $ | 2.48 | $ | 2.76 | ||||
15
Restructuring and Transformation Costs | ||||||||
(in thousands) | ||||||||
GAAP results include the following items which are excluded from adjusted results. | ||||||||
Three Months Ended | ||||||||
3/31/2012 | 4/2/2011 | |||||||
Restructuring and Transformation | $ | 2,774 | $ | 1,705 | ||||
HS Core Claims | (1,097 | ) | — | |||||
Transaction Costs | 4,450 | — | ||||||
Contingent Consideration | — | — | ||||||
Total | $ | 6,127 | $ | 1,705 | ||||
Twelve Months Ended | ||||||||
3/31/2012 | 4/2/2011 | |||||||
Restructuring and Transformation | $ | 11,759 | $ | 8,303 | ||||
HS Core Claims | 3,112 | — | ||||||
Transaction Costs | 4,450 | — | ||||||
Contingent Consideration | (1,580 | ) | (1,894 | ) | ||||
Total | $ | 17,741 | $ | 6,409 | ||||
16