Massachusetts | 001-14041 | 04-2882273 | ||||||||||||
(State or other jurisdiction
of incorporation)
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(Commission File Number) |
(I.R.S. Employer
Identification No.)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | |||||
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common stock, $.01 par value per share | HAE | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
Emerging Growth Company |
☐ |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
Exhibit Number | Description | |||||||
Press Release of Haemonetics Corporation dated August 8, 2024 announcing financial results for the first quarter ended June 29, 2024. |
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104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
HAEMONETICS CORPORATION | ||||||||||||||
Date: August 8, 2024 |
By: | /s/ Christopher A. Simon | ||||||||||||
Name: | Christopher A. Simon | |||||||||||||
Title: | President and Chief Executive Officer | |||||||||||||
Exhibit 99.1 | |||||
Investor Contacts | Media Contact | ||||
Olga Guyette, Vice President-Investor Relations & Treasury | Josh Gitelson, Sr. Director-Communications |
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(781) 356-9763 | (781) 356-9776 | ||||
olga.guyette@haemonetics.com | josh.gitelson@haemonetics.com |
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David Trenk, Manager-Investor Relations | |||||
(203) 733-4987 | |||||
david.trenk@haemonetics.com |
1st Quarter 2025 |
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n | Revenue, increase | $336 million, 8% |
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n | Organic1 revenue increase |
3% | ||||||
n | Earnings per diluted share | $0.74 | ||||||
n | Adjusted earnings per diluted share | $1.02 | ||||||
n | Cash outflow from operating activities | ($27.4) million | ||||||
n | Free cash outflow | ($16.9) million | ||||||
1 Excludes the impact of currency fluctuation and the acquisitions of the Sensor Guided Technologies and Esophageal Protection product lines in December 2023 and April 2024, respectively. |
($ millions) | 1st Quarter 2025 Reported |
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Plasma | $135.9 | (2.7)% | ||||||
Blood Center | $66.3 | (4.3)% | ||||||
Hospital | $134.0 | 30.7% | ||||||
Total net revenue | $336.2 | 8.0% |
1st Quarter 2025 Organic | |||||
Plasma | (2.6)% | ||||
Blood Center | (2.1)% | ||||
Hospital | 13.5% | ||||
Total net revenue | 2.8% |
Plasma | Blood Center | Hospital | Total Company | |||||||||||
Reported | (3 - 6)% | (5 - 8)% | 27% - 32% | 5 - 8% | ||||||||||
Currency impact | 0% | (0 - 1)% | 0% | (0 - 1)% | ||||||||||
Acquisitions1 |
0% | 0% | 14 - 16% | 5 - 6% | ||||||||||
Organic | (3 - 6)% | (5 - 7)% | 13 - 16% | 0 - 3% | ||||||||||
1 Reflects adjustment to exclude fiscal 2025 revenue related to the acquisition of Attune Medical on April 1, 2024 and 37 weeks of OpSens Inc. revenue (i.e., through the first anniversary of its acquisition). |
Adjusted operating margin |
23% - 24% | ||||
Adjusted earnings per diluted share |
$4.45 - $4.75 | ||||
Free cash flow |
$130M - $180M |
Haemonetics Corporation Financial Summary | ||||||||||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||||||||||
(Data in thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
6/29/2024 | 7/1/2023 | Inc/(Dec) % | ||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Net revenues | $ | 336,172 | $ | 311,332 | 8.0% | |||||||||||||||
Cost of goods sold | 161,248 | 144,067 | 11.9% | |||||||||||||||||
Gross profit | 174,924 | 167,265 | 4.6% | |||||||||||||||||
Research and development | 14,449 | 12,648 | 14.2% | |||||||||||||||||
Selling, general and administrative | 108,248 | 93,485 | 15.8% | |||||||||||||||||
Amortization of acquired intangible assets | 12,471 | 7,473 | 66.9% | |||||||||||||||||
Operating expenses | 135,168 | 113,606 | 19.0% | |||||||||||||||||
Operating income | 39,756 | 53,659 | (25.9)% | |||||||||||||||||
Interest and other income (expense), net | 6,957 | (2,069) | n/m | |||||||||||||||||
Income before provision for income taxes | 46,713 | 51,590 | (9.5)% | |||||||||||||||||
Provision for income taxes | 8,340 | 10,548 | (20.9)% | |||||||||||||||||
Net income | $ | 38,373 | $ | 41,042 | (6.5)% | |||||||||||||||
Net income per common share assuming dilution | $ | 0.74 | $ | 0.80 | (7.5)% | |||||||||||||||
Weighted average shares outstanding | ||||||||||||||||||||
Basic | 50,943 | 50,542 | ||||||||||||||||||
Diluted | 51,564 | 51,340 | ||||||||||||||||||
Profit Margins: | Inc/(Dec) % | |||||||||||||||||||
Gross profit | 52.0 | % | 53.7 | % | (1.7)% | |||||||||||||||
Research and development | 4.3 | % | 4.1 | % | 0.2% | |||||||||||||||
Selling, general and administrative | 32.2 | % | 30.0 | % | 2.2% | |||||||||||||||
Operating income | 11.8 | % | 17.2 | % | (5.4)% | |||||||||||||||
Income before provision for income taxes | 13.9 | % | 16.6 | % | (2.7)% | |||||||||||||||
Net income | 11.4 | % | 13.2 | % | (1.8)% |
Revenue Analysis by Business Unit | ||||||||||||||||||||||||||||||||||||||
(Data in thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
6/29/2024 | 7/1/2023 | Reported growth | Currency impact | Acquisitions(1) |
Organic growth | |||||||||||||||||||||||||||||||||
Revenues by business unit(2) |
(unaudited) | |||||||||||||||||||||||||||||||||||||
Plasma | $ | 135,910 | $ | 139,621 | (2.7) | % | (0.1) | % | — | % | (2.6) | % | ||||||||||||||||||||||||||
Apheresis | 49,094 | 49,166 | (0.1) | % | (3.0) | % | — | % | 2.9 | % | ||||||||||||||||||||||||||||
Whole Blood | 17,151 | 20,040 | (14.4) | % | (0.2) | % | — | % | (14.2) | % | ||||||||||||||||||||||||||||
Blood Center | 66,245 | 69,206 | (4.3) | % | (2.2) | % | — | % | (2.1) | % | ||||||||||||||||||||||||||||
Interventional Technologies(3) |
63,044 | 37,620 | 67.6 | % | (0.4) | % | 48.6 | % | 19.4 | % | ||||||||||||||||||||||||||||
Blood Management Technologies(4) |
70,973 | 64,885 | 9.4 | % | (0.6) | % | — | % | 10.0 | % | ||||||||||||||||||||||||||||
Hospital | 134,017 | 102,505 | 30.7 | % | (0.6) | % | 17.8 | % | 13.5 | % | ||||||||||||||||||||||||||||
Total net revenues | $ | 336,172 | $ | 311,332 | 8.0 | % | (0.7) | % | 5.9 | % | 2.8 | % | ||||||||||||||||||||||||||
(1) Reflects the impact in Hospital of the Sensor Guided Technologies product line acquired as part of the OpSens Inc. transaction in December 2023 and the Esophageal Protection product line acquired as part of the Attune Medical transaction in April 2024. |
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(2) Beginning in fiscal 2025, the Company integrated service revenue within its three business units. Prior periods were conformed to current presentation. |
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(3) Interventional Technologies includes Vascular Closure, Sensor Guided Technologies and Esophageal Protection product lines of the Hospital business unit. |
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(4) Blood Management Technologies includes Hemostasis Management, Cell Salvage and Transfusion Management product lines of the Hospital business unit. |
Condensed Consolidated Balance Sheets | |||||||||||||||||
(Data in thousands) | |||||||||||||||||
As of | |||||||||||||||||
6/29/2024 | 3/30/2024 | ||||||||||||||||
(unaudited) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 344,429 | $ | 178,800 | |||||||||||||
Accounts receivable, net | 201,485 | 206,562 | |||||||||||||||
Inventories, net | 373,787 | 317,202 | |||||||||||||||
Other current assets | 58,877 | 66,339 | |||||||||||||||
Total current assets | 978,578 | 768,903 | |||||||||||||||
Property, plant & equipment, net | 302,480 | 311,362 | |||||||||||||||
Intangible assets, net | 494,935 | 406,117 | |||||||||||||||
Goodwill | 613,347 | 565,082 | |||||||||||||||
Other assets | 151,637 | 144,127 | |||||||||||||||
Total assets | $ | 2,540,977 | $ | 2,195,591 | |||||||||||||
Liabilities & Stockholders' Equity | |||||||||||||||||
Short-term debt & current maturities | $ | 5,109 | $ | 10,229 | |||||||||||||
Other current liabilities | 254,967 | 290,154 | |||||||||||||||
Total current liabilities | 260,076 | 300,383 | |||||||||||||||
Long-term debt | 1,218,477 | 797,564 | |||||||||||||||
Other long-term liabilities | 157,056 | 137,685 | |||||||||||||||
Stockholders' equity | 905,368 | 959,959 | |||||||||||||||
Total liabilities & stockholders' equity | $ | 2,540,977 | $ | 2,195,591 |
Condensed Consolidated Statements of Cash Flows | |||||||||||
(Data in thousands) | |||||||||||
Three Months Ended | |||||||||||
6/29/2024 | 7/1/2023 | ||||||||||
(unaudited) | |||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | 38,373 | $ | 41,042 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 29,136 | 23,032 | |||||||||
Share-based compensation expense | 7,628 | 6,989 | |||||||||
Amortization of fair value inventory step-up | 5,239 | — | |||||||||
Gain on repurchase of convertible senior notes, net | (12,600) | — | |||||||||
Inventory reserve adjustment | 3,602 | (1,785) | |||||||||
Gains on sales of property, plant and equipment | (14,291) | (214) | |||||||||
Change in other non-cash operating activities | (1,927) | 1,726 | |||||||||
Change in accounts receivable, net | 7,970 | 1,010 | |||||||||
Change in inventories, net | (39,830) | (29,396) | |||||||||
Change in other working capital | (50,721) | (23,318) | |||||||||
Net cash (used in) provided by operating activities | (27,421) | 19,086 | |||||||||
Cash Flows from Investing Activities: | |||||||||||
Capital expenditures | (5,656) | (7,681) | |||||||||
Non-cash transfers from inventory to property, plant and equipment for Haemonetics equipment | (4,211) | (1,982) | |||||||||
Acquisition, net of cash acquired | (149,151) | — | |||||||||
Proceeds from sale of property, plant and equipment | 20,362 | 402 | |||||||||
Other investments | (541) | (6,000) | |||||||||
Net cash used in investing activities | (139,197) | (15,261) | |||||||||
Cash Flows from Financing Activities: | |||||||||||
Repayments, net of borrowings | 450,437 | (1,750) | |||||||||
Purchase of capped call related to convertible notes | (88,200) | — | |||||||||
Debt issuance costs | (23,135) | — | |||||||||
Proceeds from employee stock programs | 4,402 | 3,498 | |||||||||
Cash used to net share settle employee equity awards | (9,750) | (1,483) | |||||||||
Other financing activities | (62) | (863) | |||||||||
Net cash provided by (used in) financing activities | 333,692 | (598) | |||||||||
Effect of exchange rates on cash and cash equivalents | (1,445) | (1,974) | |||||||||
Net Change in Cash and Cash Equivalents | 165,629 | 1,253 | |||||||||
Cash and Cash Equivalents at Beginning of the Period | 178,800 | 284,466 | |||||||||
Cash and Cash Equivalents at End of Period | $ | 344,429 | $ | 285,719 | |||||||
Free Cash Flow Reconciliation: | |||||||||||
Cash provided by operating activities | $ | (27,421) | $ | 19,086 | |||||||
Capital expenditures | (5,656) | (7,681) | |||||||||
Additions to Haemonetics equipment | (4,211) | (1,982) | |||||||||
Proceeds from sale of property, plant and equipment | 20,362 | 402 | |||||||||
Free cash (out)flow | $ | (16,926) | $ | 9,825 |
Reconciliation of Adjusted Measures for First Quarter of FY25 and FY24 | ||||||||||||||||||||||||||||||||||||||||||||
(Data in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 29, 2024: |
Gross profit | Operating expenses | Operating income | Interest and other income (expense) | Provision for income taxes | Net income | Earnings per diluted share | |||||||||||||||||||||||||||||||||||||
Reported | $ | 174,924 | $ | 135,168 | $ | 39,756 | $ | 6,957 | $ | 8,340 | $ | 38,373 | $ | 0.74 | ||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | — | (12,471) | 12,471 | — | 3,094 | 9,377 | 0.18 | |||||||||||||||||||||||||||||||||||||
Amortization of fair value inventory step-up | 5,239 | — | 5,239 | — | 1,286 | 3,953 | 0.08 | |||||||||||||||||||||||||||||||||||||
Integration and transaction costs | 158 | (12,165) | 12,323 | — | 718 | 11,605 | 0.23 | |||||||||||||||||||||||||||||||||||||
Restructuring costs | 4,366 | (256) | 4,622 | — | 1,078 | 3,544 | 0.07 | |||||||||||||||||||||||||||||||||||||
Restructuring related costs | 1,282 | (1,236) | 2,518 | — | 598 | 1,920 | 0.05 | |||||||||||||||||||||||||||||||||||||
Digital transformation costs | — | (6,345) | 6,345 | — | 1,523 | 4,822 | 0.09 | |||||||||||||||||||||||||||||||||||||
MDR and IVDR costs | — | (1,126) | 1,126 | — | 266 | 860 | 0.02 | |||||||||||||||||||||||||||||||||||||
Litigation-related charges | — | (755) | 755 | — | 183 | 572 | 0.01 | |||||||||||||||||||||||||||||||||||||
Gain on repurchase of convertible notes, net | — | — | — | (12,600) | (3,059) | (9,541) | (0.19) | |||||||||||||||||||||||||||||||||||||
Gains on sales of property, plant and equipment | — | 14,134 | (14,134) | — | (3,432) | (10,702) | (0.21) | |||||||||||||||||||||||||||||||||||||
Discrete tax items | — | — | — | — | 2,417 | (2,417) | (0.05) | |||||||||||||||||||||||||||||||||||||
Adjusted | $ | 185,969 | $ | 114,948 | $ | 71,021 | $ | (5,643) | $ | 13,012 | $ | 52,366 | $ | 1.02 | ||||||||||||||||||||||||||||||
Adjusted, as a percentage of net revenues | 55.3 | % | 34.2 | % | 21.1 | % | 15.6 | % | ||||||||||||||||||||||||||||||||||||
Three Months Ended July 1, 2023: |
Gross profit | Operating expenses | Operating income | Interest and other income (expense) | Provision for income taxes | Net income | Earnings per diluted share | |||||||||||||||||||||||||||||||||||||
Reported | $ | 167,265 | $ | 113,606 | $ | 53,659 | $ | (2,069) | $ | 10,548 | $ | 41,042 | $ | 0.80 | ||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | — | (7,473) | 7,473 | — | 1,828 | 5,645 | 0.10 | |||||||||||||||||||||||||||||||||||||
Integration and transaction costs | — | (1,115) | 1,115 | — | 268 | 847 | 0.02 | |||||||||||||||||||||||||||||||||||||
Restructuring costs | 206 | 217 | (11) | — | (33) | 22 | — | |||||||||||||||||||||||||||||||||||||
Restructuring related costs | 1,540 | (664) | 2,204 | — | 536 | 1,668 | 0.03 | |||||||||||||||||||||||||||||||||||||
Digital transformation costs | — | (3,705) | 3,705 | — | 869 | 2,836 | 0.06 | |||||||||||||||||||||||||||||||||||||
Impairment of assets and PCS2 related charges | (236) | (95) | (141) | — | (34) | (107) | — | |||||||||||||||||||||||||||||||||||||
MDR and IVDR costs | — | (1,166) | 1,166 | — | 256 | 910 | 0.02 | |||||||||||||||||||||||||||||||||||||
Litigation-related charges | — | (1,058) | 1,058 | — | 256 | 802 | 0.02 | |||||||||||||||||||||||||||||||||||||
Adjusted | $ | 168,775 | $ | 98,547 | $ | 70,228 | $ | (2,069) | $ | 14,494 | $ | 53,665 | $ | 1.05 | ||||||||||||||||||||||||||||||
Adjusted, as a percentage of net revenues | 54.2 | % | 31.7 | % | 22.6 | % | 17.2 | % |