Haemonetics Corporation Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended September 28, 2013; Provides Earnings Guidance for the Fiscal Year 2014
Oct 28 13
Haemonetics Corporation announced unaudited consolidated earnings results for the second quarter and six months ended September 28, 2013. For the quarter, the company reported net revenues of $235,755,000 against $218,178,000 a year ago. Operating income was $23,430,000 against $9,901,000 a year ago. Income before income taxes was $20,888,000 against $8,590,000 a year ago. Net income was $16,548,000 or $0.32 per common share assuming dilution against $6,547,000 or $0.13 per common share assuming dilution a year ago. GAAP cash flow from operations $29,360,000 against $33,014,000 a year ago. Net investment in property, plant & equipment was $15,037,000 against $25,888,000 a year ago. Non-GAAP operating income was $49,006,000 against $39,710,000 a year ago. Non-GAAP net income was $34,421,000 or $0.66 non-GAAP net income per common share assuming dilution against $27,801,000 or $0.53 non-GAAP net income per common share assuming dilution a year ago. Capital expenditure was $15,110,000 against $25,991,000 a year ago. Non-GAAP income before taxes was $46,653,000 against $38,399,000 a year ago. The company generated $35 million of free cash flow in the second quarter, after making net investments of $15 million in net capital expenditures and before funding $21 million of cash transformation costs.
For the six months, the company reported net revenues of $455,297,000 against $394,653,000 a year ago. Operating income was $16,822,000 against $22,981,000 a year ago. Income before income taxes was $11,639,000 against $22,006,000 a year ago. Net income was $8,674,000 or $0.17 per common share assuming dilution against $16,335,000 or $0.31 per common share assuming dilution a year ago. GAAP cash flow from operations was $42,762,000 against $33,567,000 a year ago. Net investment in property, plant & equipment was $27,560,000 against $34,077,000 a year ago. Non-GAAP operating income was $82,513,000 against $61,892,000 a year ago. Non-GAAP net income was $58,160,000 or $1.11 non-GAAP net income per common share assuming dilution against $44,058,000 or $0.85 non-GAAP net income per common share assuming dilution a year ago. Capital expenditure was $28,202,000 against $34,432,000 a year ago. Non-GAAP income before taxes was $77,640,000 against $60,917,000 a year ago. The company generated $49 million of free cash flow before transformation costs in the first half of fiscal 2014, up $27 million, more than double the first half of fiscal 2013.
Overall fiscal 2014 organic revenue is expected to grow 2 to 4% in constant currency and 0 to 2% on a reported basis, which includes the impact of Yen weakness upon expected Japanese revenue. Whole blood revenue is expected to be approximately $190 million for fiscal 2014, reflecting an expectation for reduced collections in the near term. Thus, total revenue growth is estimated in the range of 5 to 7%. Adjusted gross margin is expected to approximate 52%. Adjusted operating income of $175 to $180 million is expected in fiscal 2014 driving an operating margin of approximately 19%, up approximately 200 basis points over fiscal 2013. Adjusted earnings per share, excluding acquisition related amortization, are reaffirmed in the previously-provided range of $2.30 to $2.40, up approximately 15 to 20% over fiscal 2013 presented on a consistent basis. Cost efficiencies and expense management are expected to offset the impact of lower volume, unfavorable mix and increased R&D spending throughout the fiscal year. In fiscal 2014, it expects a free cash flow generation of $120 million or $2.30 per share, before funding restructuring and capital investments related to the transformation activities, reflecting a conversion rate of adjusted earnings to free cash flow of approximately 1x. It still plan to utilize $109 million of free cash flow to fund $37 million of capital expenditures and $72 million of transformational expenditures associated with the manufacturing transformation and other VCC initiatives in fiscal 2014. For the full fiscal year 2014, it still expect tax rate to normalize at around 26%. With the operating income growth and favorable tax rate, adjusted earnings per share reached $0.66, an increase of 24%.