SHENZHEN, China, Aug. 8, 2011 /PRNewswire-Asia-FirstCall/ --
Mindray Medical International Limited (NYSE: MR), a leading
developer, manufacturer and marketer of medical devices worldwide,
announced today its selected unaudited financial results for the
second quarter ended June 30,
2011.
Highlights for Second Quarter 2011
- Net revenues were $217.3 million,
an increase of 21.2% over the second quarter of 2010.
- Robust China sales growth of
25.3% year-over-year, driven by regular sales, that is, non-tender
sales.
- Strong international sales of $126.6
million, a year-over-year increase of 18.5%. Emerging
markets were again a key growth driver.
- Non-GAAP net income was $49.8
million, an 8.6% increase over the second quarter of 2010.
GAAP net income was $44.8 million, a
6.0% year-over-year increase.
- Net operating cash generated during the quarter was
$33.8 million, growing 70.4%
year-over-year.
- Reagent revenues growth accelerated, contributing 28.4% to the
in-vitro diagnostic business this quarter.
- Mindray introduced its latest high level auto hematology
analyzer, BC-6800, along with several reagents.
- Paid dividend of $34.5 million in
May and June 2011.
- In July, Mindray announced an agreement to acquire a
controlling stake of Suzhou Hyssen Electronics Co. Ltd, an
automated urine sediment analyzer manufacturer in China.
"Our sales momentum continued this quarter and we are pleased to
report a 21.2% year-over-year increase in revenues, highlighted by
our significant growth in China
regular sales," commented Xu Hang,
Mindray's chairman and co-chief executive officer. "Our continued
strong performance in China
further demonstrated the successful implementation of Mindray's
strategic initiatives over the last few quarters. Emerging markets
also had solid performance during the quarter, contributing 34% to
total sales. Specifically, Eastern
Europe and the CIS region delivered more than 40%
year-over-year growth, while Asia
Pacific grew over 30% during the period. In developed
markets, we again delivered double digit growth. On the M&A
front, we are celebrating the third year of successful integration
of our Mahwah operations in the
U.S., while rolling out the integration of our two newly acquired
businesses in China. We continue
to actively seek opportunities that could bring complementary
technologies and/or products to our company and help us further
increase our market penetration worldwide."
SUMMARY –
Second Quarter
2011
|
|
(in $ millions, except per-share
data)
|
Three Months
Ended
|
|
June
30
|
|
2011
|
2010
|
%
chg
|
|
Net Revenues
|
217.3
|
179.2
|
21.2%
|
|
Revenues generated
in China
|
90.7
|
72.4
|
25.3%
|
|
Revenues generated
outside China
|
126.6
|
106.8
|
18.5%
|
|
Gross Profit
|
123.8
|
104.4
|
18.5%
|
|
Non-GAAP Gross Profit
|
125.2
|
105.8
|
18.3%
|
|
Operating Income
|
47.4
|
47.5
|
-0.2%
|
|
Non-GAAP Operating
Income
|
52.5
|
51.2
|
2.6%
|
|
EBITDA
|
56.9
|
54.2
|
5.0%
|
|
Net Income
|
44.8
|
42.3
|
6.0%
|
|
Non-GAAP Net Income
|
49.8
|
45.9
|
8.6%
|
|
Diluted EPS
|
0.37
|
0.36
|
4.6%
|
|
Non-GAAP Diluted EPS
|
0.42
|
0.39
|
7.2%
|
|
|
|
|
|
|
|
Revenues
Mindray reported net revenues of $217.3
million for the second quarter of 2011, a 21.2% increase
from $179.2 million in the second
quarter of 2010. Net revenues generated in China in the second quarter of 2011 increased
25.3% to $90.7 million from
$72.4 million in the second quarter
of 2010, while net revenues generated in international markets in
the second quarter of 2011 increased 18.5% to $126.6 million from $106.8
million in the second quarter of 2010.
Performance by Segment
Patient Monitoring & Life Support Products: Patient
monitoring & life support products segment revenues increased
12.3% to $93.0 million from
$82.8 million in the second quarter
of 2010. The patient monitoring & life support products segment
contributed 42.8% to total net revenues in the second quarter of
2011.
In-Vitro Diagnostic Products: In-vitro diagnostic
products segment revenues increased 30.5% to $56.4 million from $43.2
million in the second quarter of 2010. The in-vitro
diagnostic products segment contributed 25.9% to total net revenues
in the second quarter of 2011.
Medical Imaging Systems: Medical imaging systems segment
revenues increased 30.6% to $55.7
million from $42.7 million in
the second quarter of 2010. The medical imaging systems segment
contributed 25.6% to total net revenues in the second quarter of
2011.
Others: Other revenues, which are primarily comprised of
service fees charged for post warranty period repair services,
increased 15.3% to $12.2 million from
$10.5 million in the second quarter
of 2010. Other revenues contributed 5.7% to total net revenues in
the second quarter of 2011.
Gross Margins
Second quarter 2011 gross profit was $123.8 million, an 18.5% increase from
$104.4 million in the second quarter
of 2010. Second quarter 2011 non-GAAP gross profit was $125.2 million, an 18.3% increase from
$105.8 million in the second quarter
of 2010. Second quarter 2011 gross margin was 57.0% compared to
58.3% in the second quarter of 2010 and 55.1% in the first quarter
of 2011. Non-GAAP gross margin was 57.6% in the second quarter of
2011 compared to 59.0% in the second quarter of 2010 and 55.9% in
the first quarter of 2011.
Operating Expenses
Selling expenses for the second quarter of 2011 were
$40.4 million, or 18.6% of total net
revenues, compared to 15.2% in the second quarter of 2010 and 18.6%
in the first quarter of 2011. Non-GAAP selling expenses for the
second quarter of 2011 were $38.5
million, or 17.7% of total net revenues, compared to 14.5%
in the second quarter of 2010 and 17.7% in the first quarter of
2011.
General and administrative expenses for the second quarter of
2011 were $17.4 million, or 8.0% of
total net revenues, compared to 8.6% in the second quarter of 2010
and 8.0% in the first quarter of 2011. Non-GAAP general and
administrative expenses for the second quarter of 2011 were
$16.7 million, or 7.7% of the total
net revenues, compared to 8.4% in the second quarter of 2010 and
7.7% in the first quarter of 2011.
Research and development expenses for the second quarter of 2011
were $18.5 million, or 8.5% of total
net revenues, compared to 8.0% in the second quarter of 2010 and
10.3% in the first quarter of 2011. Non-GAAP research and
development expenses for the second quarter of 2011 were
$17.4 million, or 8.0% of total net
revenues, compared to 7.6% in the second quarter of 2010 and 9.7%
in the first quarter of 2011.
Total share-based compensation expenses, which were allocated to
cost of revenues and related operating expenses, were $3.3 million in the second quarter of 2011
compared to $2.8 million in the first
quarter of 2011 and $1.8 million in
the second quarter of 2010.
Operating income was $47.4 million
in the second quarter of 2011, decreased 0.2% from $47.5 million in the second quarter of 2010.
Non-GAAP operating income in the second quarter of 2011 was
$52.5 million, a 2.6% increase from
$51.2 million in the second quarter
of 2010. Operating margin was 21.8% in the second quarter of 2011
compared to 26.5% in the second quarter of 2010 and 18.3% in the
first quarter of 2011. Non-GAAP operating margin was 24.2% in the
second quarter of 2011 compared to 28.6% in the second quarter of
2010 and 20.8% in the first quarter of 2011.
Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA")
Second quarter 2011 EBITDA increased 5.0% year-over-year to
$56.9 million from $54.2 million in the second quarter of 2010 and
increased 39.4% from $40.8 million in
the first quarter of 2011.
Net Income
Net income increased 6.0% year-over-year to $44.8 million from $42.3
million in the second quarter of 2010. Non-GAAP net income
increased 8.6% year-over-year to $49.8
million from $45.9 million in
the second quarter of 2010. Net margin was 20.6% in the second
quarter of 2011 compared to 23.6% in the second quarter of 2010 and
20.8% in the first quarter of 2011. Non-GAAP net margin was 22.9%
in the second quarter of 2011 compared to 25.6% in the second
quarter of 2010 and 23.3% in the first quarter of 2011. Second
quarter 2011 income tax expense was $7.9
million, representing an effective tax rate of 15.0%.
Second quarter 2011 basic and diluted earnings per share were
$0.38 and $0.37, respectively, compared to $0.37 and $0.36 in
the second quarter of 2010. Basic and diluted non-GAAP earnings per
share were $0.43 and $0.42, respectively, compared to $0.40 and $0.39 in
the second quarter of 2010. Shares used in the computation of
diluted earnings per share for the second quarter 2011 were 119.7
million.
Other Select Data
Average accounts receivable days outstanding were 64 days in the
second quarter of 2011 compared to 72 days in the first quarter of
2011. Average inventory days were 94 days in the second quarter of
2011 compared to 94 days in the first quarter of 2011. Average
accounts payable days outstanding were 57 days in the second
quarter of 2011 compared to 58 days in the first quarter of 2011.
Mindray calculates the above working capital days using the average
of beginning and ending balances of the quarter.
As of June 30, 2011, the company
had $467.1 million in cash and cash
equivalents and short-term investments as compared to $442.6 million as of March
31, 2011. Net cash generated from operating activities and
net cash outflow for capital expenditures during the quarter were
$33.8 million and $17.0 million respectively.
As of June 30, 2011, the company
had approximately 6,560 employees.
Subsequent Events
On July 26, 2011, Mindray and
certain Datascope entities entered into a binding letter of intent
(the "LOI"), pursuant to which Mindray will make a one-time payment
of $7.0 million to Datascope
following execution of a final agreement and will acquire all
right, title and interest in certain trademarks, service marks and
names (the "Obtained Marks"). Mindray will grant Datascope an
exclusive 20-year license to use certain of the Obtained Marks in
certain circumstances. Pursuant to the LOI, the parties will settle
disputes arising out of Mindray's 2008 acquisition of Datascope's
patient monitoring business. Both parties have agreed to negotiate
in good faith a final agreement incorporating the LOI terms.
Appointment of Chief Financial Officer
Mindray has appointed Mr. Alex
Lung as Chief Financial Officer ("CFO") of the company
effective as of August 10, 2011,
succeeding Mr. Jie Liu. Mr. Liu will step down from the
role of CFO and will remain with Mindray as Chief Operating
Officer. He will act in an advisory capacity to Mr. Lung to
ensure an orderly transition. Ms. May
Li will continue to support the new CFO in her capacity as
Deputy CFO.
Mr. Lung has served as Deputy CFO of Mindray since
March 2011. He served as Group
Finance Director of Mindray from June
2009 to March 2011. Prior to
joining Mindray, he held a position as Corporate Controller of ASAT
Holdings Limited, and as Finance Manager of Clipsal Asia Holdings
Limited, a subsidiary of Schneider Electric. Mr. Lung has
10 years of professional experience at KPMG engaged in
auditing, corporate finance and management consulting. Mr. Lung
graduated from Imperial College, London,
UK with a bachelor's degree in Mechanical Engineering. He is
also an associate member of City & Guilds and a fellow member
of the UK Association of Chartered Certified Accountant.
Business Outlook for Full Year 2011
The company maintains its full year guidance and anticipates its
full year 2011 net revenues to be more than 16% higher than its
full year 2010 net revenues.
The company continues to project its full year 2011 non-GAAP net
income to grow more than 10% over its non-GAAP net income for full
year 2010. This guidance excludes the tax benefits related to the
key software enterprise status ($8.6 million and $7.6 million recognized in the first quarter
of 2010 and 2011 respectively) and assumes a corporate income tax
rate of 15% applicable to the Shenzhen subsidiary.
The company expects its capital expenditure for 2011 to remain
in the range of $70 million to $80
million.
The company's practice is to provide guidance on a full year
basis only. This forecast reflects Mindray's current and
preliminary views, which are subject to change.
"We are maintaining our guidance at this time," commented Li
Xiting, Mindray's president and co-chief executive officer. "Most
of our key global markets continue to have favorable growth
prospects. In China, we are
excited to see increased patient traffic and spending on county
level hospitals. Together with our strategic efforts in
China, we are optimistic that our
China business is back on track.
Emerging markets continue to exhibit strong growth momentum,
although we are closely monitoring the political situation in the
Middle East and Africa. Developed markets as a whole also keep
growing steadily. In the second quarter, we once again demonstrated
our focus on profitability and cash generation. In the coming
quarters, our commitment to technology and product innovation,
coupled with potential additional acquisitions, will fuel our
future growth and expansion."
Conference Call Information
Mindray's management will hold an earnings conference call at
8:00 AM on August 9, 2011 U.S. Eastern Time (8:00 PM on August 9,
2011 Beijing/Hong Kong Time).
Dial-in details for the earnings conference call are as
follows:
U.S. Toll Free:
|
+1-866-804-6923
|
|
Hong Kong:
|
+852-3002-1672
|
|
China Netcom:
|
10-800-852-1490 /
10-800-712-2655
|
|
China Telecom:
|
10-800-130-0399 /
10-800-120-2655 / 10-800-152-1490
|
|
International:
|
+1-857-350-1669
|
|
|
|
|
Passcode for all
regions:
|
Mindray
|
|
|
|
A replay of the conference call may be accessed by phone at the
following numbers until August 23,
2011.
U.S. Toll Free:
|
+1-888-286-8010
|
|
International:
|
+1-617-801-6888
|
|
Passcode:
|
8952-5334
|
|
|
|
Additionally, a live and archived webcast of this conference
call will be available on the Investor Relations section of
Mindray's website at: http://ir.mindray.com
Use of Non-GAAP Financial Measures
Mindray provides gross profit, selling expenses, general and
administrative expenses, R&D expenses, operating income, net
income and earnings per share on a non-GAAP basis that excludes
share-based compensation expense and acquired intangible assets
amortization expense, all net of related tax impact, as well as
EBITDA to enable investors to better assess the company's operating
performance. The non-GAAP measures described by the company are
reconciled to the corresponding GAAP measure in the exhibit below
titled "Reconciliations of non-GAAP results of operations measures
to the nearest comparable GAAP measures"
The company has reported for the second quarter of 2011 and
provided guidance for full year 2011 earnings on a non-GAAP basis.
Each of the terms as used by the company is defined as follows:
- Non-GAAP gross profit represents gross profit reported in
accordance with GAAP, adjusted for the effects of share-based
compensation and amortization of acquired intangible assets.
- Non-GAAP operating income represents operating income reported
in accordance with GAAP, adjusted for the effects of share-based
compensation, and amortization of acquired intangible assets.
- Non-GAAP selling expenses represent selling expenses reported
in accordance with GAAP, adjusted for the effects of share-based
compensation, and amortization of acquired intangible assets.
- Non-GAAP general and administrative expenses represent general
and administrative expenses reported in accordance with GAAP,
adjusted for the effects of share-based compensation.
- Non-GAAP research and development expenses represent research
and development expenses reported in accordance with GAAP, adjusted
for the effects of share-based compensation.
- Non-GAAP net income represents net income reported in
accordance with GAAP, adjusted for the effects of share-based
compensation and amortization of acquired intangible assets, all
net of related tax impact.
- Non-GAAP earnings per share represents non-GAAP net income
divided by the number of shares used in computing basic and diluted
earnings per share in accordance with GAAP, and excludes the impact
of the declared dividends for the basic calculation.
- EBITDA represents net income reported in accordance with GAAP,
adjusted for the effect of interest income and expenses, provision
of income taxes, depreciation and amortization expenses.
The company computes its non-GAAP financial measures using the
same consistent method from quarter to quarter. The company notes
that these measures may not be calculated on the same basis of
similar measures used by other companies. Readers are cautioned not
to view non-GAAP results on a stand-alone basis or as a substitute
for results under GAAP, or as being comparable to results reported
or forecasted by other companies, and should refer to the
reconciliation of GAAP results with non-GAAP results for the three
months ended June 30, 2010 and 2011, respectively, in the
attached financial information.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Statements that are not historical
facts, including without limitation, statements about Mindray's
anticipated net revenues, non-GAAP net income and capital
expenditure for 2011, our assumption of a corporate income tax rate
of 15% applicable to the Shenzhen
subsidiary, our continued sales momentum, our significant growth in
China regular sales (that is,
non-tender sales), our continued strong performance in China, the third year of our successful
integration of our Mahwah
operations in the U.S., the rolling out of the integration of our
two newly acquired businesses in China, our actively seeking opportunities that
could bring complementary technologies and/or products to our
company and help us further increase our market penetration
worldwide, the favorable growth prospects of most of our key global
markets, the increased patient traffic and spending on county level
hospitals in China, our strategic
efforts in China, our optimistic
view about our China business, the
strong growth momentum of emerging markets, our closely monitoring
the political situation in the Middle
East and Africa, the
continued steady growth of developed markets as a whole, our
commitment to technology and product innovation and potential
additional acquisitions in the coming quarters, and the
anticipation that our future growth and expansion will be fueled by
such commitment to technology and product innovation and such
potential additional acquisitions, are forward-looking statements.
Readers are cautioned that these forward-looking statements are
only predictions and may differ materially from actual results due
to a variety of factors. The financial information contained in
this release should be read in conjunction with the consolidated
financial statements and notes thereto included in our public
filings with the Securities and Exchange Commission. For a
discussion of other important factors that could adversely affect
our business, financial condition, results of operations and
prospects, see "Risk Factors" beginning on page 4 of our annual
report on Form 20-F. Our results of operations for the second
quarter of 2011 are not necessarily indicative of our operating
results for any future periods. Any projections in this release are
based on limited information currently available to us, which is
subject to change. Although such projections and the factors
influencing them will likely change, we will not necessarily update
the information. Such information speaks only as of the date of
this release.
About Mindray
We are a leading developer, manufacturer and marketer of medical
devices worldwide. We maintain global headquarters in
Shenzhen, China, U.S. headquarters in Mahwah, New Jersey and multiple sales offices
in major international markets. From our main manufacturing and
engineering base in China and
through our worldwide distribution network, we are able to supply
internationally a broad range of products across three primary
business segments, comprised of patient monitoring and life support
products, in-vitro diagnostic products and medical imaging systems.
For more information, please visit: http://ir.mindray.com
For investor and media inquiries
please contact:
|
|
|
|
In the U.S:
|
|
|
|
Hoki Luk
|
|
Western Bridge, LLC
|
|
Tel: +1-646-808-9150
|
|
Email: hoki.luk@westernbridgegroup.com
|
|
|
|
In China:
|
|
|
|
Cathy Gao
|
|
Mindray Medical International
Limited
|
|
Tel:
+86-755-8188-8023
|
|
Email: cathy.gao@mindray.com
|
|
|
Exhibit 1
|
|
MINDRAY MEDICAL INTERNATIONAL
LIMITED
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
As of
December 31, 2010
|
|
As of June
30, 2011
|
|
|
|
US$
|
|
US$
|
|
|
|
(Note
1)
|
|
(unaudited)
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
137,502
|
|
99,614
|
|
|
Short-term
investments
|
296,003
|
|
367,512
|
|
|
Accounts receivable,
net
|
143,318
|
|
160,715
|
|
|
Inventories
|
79,185
|
|
104,035
|
|
|
Value added tax
receivables
|
18,562
|
|
26,745
|
|
|
Other receivables
|
9,953
|
|
13,860
|
|
|
Prepayments and
deposits
|
7,596
|
|
9,720
|
|
|
Deferred tax assets
|
2,481
|
|
3,234
|
|
|
Total current assets
|
694,600
|
|
785,435
|
|
|
|
|
|
|
|
|
Other assets
|
4,552
|
|
6,407
|
|
|
Advances for purchase of plant
and equipment
|
15,775
|
|
9,553
|
|
|
Property, plant and equipment,
net
|
207,636
|
|
219,829
|
|
|
Land use rights, net
|
46,079
|
|
49,412
|
|
|
Intangible assets,
net
|
66,247
|
|
72,439
|
|
|
Goodwill
|
115,672
|
|
121,132
|
|
|
Total assets
|
1,150,561
|
|
1,264,207
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Notes payable
|
5,773
|
|
7,589
|
|
|
Accounts payable
|
44,322
|
|
56,236
|
|
|
Advances from
customers
|
13,209
|
|
13,539
|
|
|
Salaries payables
|
26,770
|
|
23,265
|
|
|
Other payables
|
66,615
|
|
59,098
|
|
|
Income taxes payable
|
13,582
|
|
11,978
|
|
|
Other taxes payable
|
4,286
|
|
4,063
|
|
|
Total current
liabilities
|
174,557
|
|
175,768
|
|
|
|
|
|
|
|
Long-term bank loan
|
-
|
|
34,958
|
|
Other long-term
payables
|
1,133
|
|
1,722
|
|
Deferred tax liabilities,
net
|
8,268
|
|
10,206
|
|
|
|
9,401
|
|
46,886
|
|
Shareholders' equity:
|
|
|
|
|
|
Ordinary shares
|
15
|
|
15
|
|
|
Additional paid-in
capital
|
466,613
|
|
477,099
|
|
|
Retained earnings
|
434,143
|
|
482,140
|
|
|
Accumulated other comprehensive
income
|
65,830
|
|
80,809
|
|
|
Total shareholders'
equity
|
966,601
|
|
1,040,063
|
|
|
|
|
|
|
|
Non-controlling
interest
|
2
|
|
1,490
|
|
Total equity
|
966,603
|
|
1,041,553
|
|
Total liabilities and
shareholders' equity
|
1,150,561
|
|
1,264,207
|
|
|
|
|
|
|
|
(1) Financial information is
extracted from the audited financial statements included in the
Company fiscal 2010 20F.
|
|
|
|
|
|
|
Exhibit 2
|
|
MINDRAY MEDICAL INTERNATIONAL
LIMITED
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(Dollars in thousands, except
for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended June 30,
|
|
Six
months ended June 30,
|
|
|
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Net revenues
|
|
|
|
|
|
|
|
|
|
|
-PRC
|
|
72,415
|
|
90,729
|
|
134,569
|
|
163,182
|
|
|
-
International
|
|
106,800
|
|
126,553
|
|
190,491
|
|
235,004
|
|
|
Net revenues
|
|
179,215
|
|
217,282
|
|
325,060
|
|
398,186
|
|
|
Cost of revenues
|
|
(74,778)
|
|
(93,486)
|
|
(138,373)
|
|
(174,671)
|
|
|
Gross profit
|
|
104,437
|
|
123,796
|
|
186,687
|
|
223,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expenses
|
|
(27,187)
|
|
(40,416)
|
|
(50,851)
|
|
(74,088)
|
|
|
General and administrative
expenses
|
|
(15,397)
|
|
(17,437)
|
|
(27,643)
|
|
(31,864)
|
|
|
Research and development
expenses
|
|
(14,316)
|
|
(18,504)
|
|
(28,751)
|
|
(37,092)
|
|
|
Operating income
|
|
47,537
|
|
47,439
|
|
79,442
|
|
80,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
|
(40)
|
|
1,752
|
|
77
|
|
2,178
|
|
|
Interest income
|
|
2,379
|
|
3,977
|
|
4,513
|
|
7,486
|
|
|
Interest expense
|
|
(437)
|
|
(381)
|
|
(1,843)
|
|
(601)
|
|
|
Income before income taxes and
non-controlling interests
|
|
49,439
|
|
52,787
|
|
82,189
|
|
89,534
|
|
|
Provision for income
taxes
|
|
(7,157)
|
|
(7,931)
|
|
(3,710)
|
|
(6,968)
|
|
|
Net income
|
|
42,282
|
|
44,856
|
|
78,479
|
|
82,566
|
|
|
Less: Net income attributable to
non-controlling interests
|
|
-
|
|
(47)
|
|
-
|
|
(47)
|
|
|
Net income attributable to the
Company
|
|
42,282
|
|
44,809
|
|
78,479
|
|
82,519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
0.37
|
|
0.38
|
|
0.70
|
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
0.36
|
|
0.37
|
|
0.67
|
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the computation
of:
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
114,299,570
|
|
116,504,103
|
|
112,779,472
|
|
115,026,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
118,139,545
|
|
119,653,716
|
|
117,028,955
|
|
118,275,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 3
|
|
MINDRAY MEDICAL INTERNATIONAL
LIMITED
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended June 30,
|
|
Six months
ended June 30,
|
|
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Cash flow from operating
activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
42,282
|
|
44,809
|
|
78,479
|
|
82,519
|
|
|
Adjustments to reconcile
net income to net cash from operating activities
|
10,472
|
|
9,621
|
|
18,637
|
|
21,935
|
|
|
Changes in current assets
and liabilities
|
(32,928)
|
|
(20,647)
|
|
(44,494)
|
|
(38,373)
|
|
|
Net cash generated from
operating activities
|
19,826
|
|
33,783
|
|
52,622
|
|
66,081
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing
activities:
|
|
|
|
|
|
|
|
|
|
Acquisition cost, net of
cash acquired
|
-
|
|
(3,646)
|
|
-
|
|
(3,646)
|
|
|
Capital
expenditure
|
(11,271)
|
|
(17,039)
|
|
(26,702)
|
|
(44,355)
|
|
|
Decrease in restricted
cash
|
53,726
|
|
-
|
|
76,349
|
|
-
|
|
|
Proceeds from sale of
restricted/short term investments
|
-
|
|
4,441
|
|
91,916
|
|
90,133
|
|
|
Increase in short term
investments and changes in others investing activities
|
(36,120)
|
|
(40,915)
|
|
(158,031)
|
|
(152,264)
|
|
|
Net cash generated from/(used
in) investing activities
|
6,335
|
|
(57,159)
|
|
(16,468)
|
|
(110,132)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing
activities:
|
|
|
|
|
|
|
|
|
|
Repayment of bank
loans
|
(54,066)
|
|
-
|
|
(169,066)
|
|
-
|
|
|
Proceeds from bank
loans
|
-
|
|
34,930
|
|
-
|
|
34,930
|
|
|
Dividend paid
|
(22,800)
|
|
(34,522)
|
|
(22,800)
|
|
(34,522)
|
|
|
Proceeds from exercise of
options
|
2,529
|
|
3,112
|
|
8,677
|
|
4,347
|
|
|
Net proceeds from
secondary public offering
|
-
|
|
-
|
|
149,661
|
|
-
|
|
|
Net cash (used in)/generated
from financing activities
|
(74,337)
|
|
3,520
|
|
(33,528)
|
|
4,755
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease)/increase in cash
and cash equivalents
|
(48,176)
|
|
(19,856)
|
|
2,626
|
|
(39,296)
|
|
|
Cash and cash equivalents at
beginning of period
|
255,084
|
|
118,746
|
|
204,228
|
|
137,502
|
|
|
Effect of exchange rate changes
on cash
|
4,367
|
|
724
|
|
4,421
|
|
1,408
|
|
|
Cash and cash equivalents at end
of period
|
211,275
|
|
99,614
|
|
211,275
|
|
99,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit
4
|
|
MINDRAY MEDICAL INTERNATIONAL
LIMITED
|
|
RECONCILIATIONS OF NON-GAAP
RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE GAAP
MEASURES
|
|
(Dollars in thousands, except
for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended June 30,
|
|
Six months
ended June 30,
|
|
|
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
|
45,887
|
|
49,840
|
|
86,032
|
|
92,062
|
|
|
Non-GAAP net
margin
|
|
25.6%
|
|
22.9%
|
|
26.5%
|
|
23.1%
|
|
|
Amortization of acquired
intangible assets
|
|
(1,868)
|
|
(1,783)
|
|
(4,000)
|
|
(3,550)
|
|
|
Deferred tax impact related to
acquired intangible assets
|
|
51
|
|
34
|
|
141
|
|
68
|
|
|
Share-based
compensation
|
|
(1,788)
|
|
(3,282)
|
|
(3,694)
|
|
(6,061)
|
|
|
GAAP net income
|
|
42,282
|
|
44,809
|
|
78,479
|
|
82,519
|
|
|
GAAP net
margin
|
|
23.6%
|
|
20.6%
|
|
24.1%
|
|
20.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic earnings per
share
|
|
0.40
|
|
0.43
|
|
0.76
|
|
0.80
|
|
|
Non-GAAP diluted earnings per
share
|
|
0.39
|
|
0.42
|
|
0.74
|
|
0.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basic earnings per
share
|
|
0.37
|
|
0.38
|
|
0.70
|
|
0.72
|
|
|
GAAP diluted earnings per
share
|
|
0.36
|
|
0.37
|
|
0.67
|
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computation
of:
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
114,299,570
|
|
116,504,103
|
|
112,779,472
|
|
115,026,629
|
|
|
Diluted earnings per
share
|
|
118,139,545
|
|
119,653,716
|
|
117,028,955
|
|
118,275,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
|
51,193
|
|
52,504
|
|
87,136
|
|
90,082
|
|
|
Non-GAAP
operating margin
|
|
28.6%
|
|
24.2%
|
|
26.8%
|
|
22.6%
|
|
|
Amortization of acquired
intangible assets
|
|
(1,868)
|
|
(1,783)
|
|
(4,000)
|
|
(3,550)
|
|
|
Share-based
compensation
|
|
(1,788)
|
|
(3,282)
|
|
(3,694)
|
|
(6,061)
|
|
|
GAAP operating income
|
|
47,537
|
|
47,439
|
|
79,442
|
|
80,471
|
|
|
GAAP
operating margin
|
|
26.5%
|
|
21.8%
|
|
24.4%
|
|
20.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross
profit
|
|
105,772
|
|
125,152
|
|
189,631
|
|
226,193
|
|
|
Non-GAAP
gross margin
|
|
59.0%
|
|
57.6%
|
|
58.3%
|
|
56.8%
|
|
|
Amortization of acquired
intangible assets
|
|
(1,249)
|
|
(1,153)
|
|
(2,759)
|
|
(2,297)
|
|
|
Share-based
compensation
|
|
(86)
|
|
(203)
|
|
(185)
|
|
(381)
|
|
|
GAAP gross profit
|
|
104,437
|
|
123,796
|
|
186,687
|
|
223,515
|
|
|
GAAP gross
margin
|
|
58.3%
|
|
57.0%
|
|
57.4%
|
|
56.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP selling
expenses
|
|
(25,943)
|
|
(38,483)
|
|
(48,320)
|
|
(70,449)
|
|
|
Non-GAAP as
% of total revenues
|
|
14.5%
|
|
17.7%
|
|
14.9%
|
|
17.7%
|
|
|
Amortization of acquired
intangible assets
|
|
(619)
|
|
(630)
|
|
(1,241)
|
|
(1,253)
|
|
|
Share-based
compensation
|
|
(625)
|
|
(1,303)
|
|
(1,290)
|
|
(2,386)
|
|
|
GAAP selling expenses
|
|
(27,187)
|
|
(40,416)
|
|
(50,851)
|
|
(74,088)
|
|
|
GAAP as % of
total revenues
|
|
15.2%
|
|
18.6%
|
|
15.6%
|
|
18.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP general and
administrative expenses
|
|
(15,105)
|
|
(16,742)
|
|
(26,873)
|
|
(30,670)
|
|
|
Non-GAAP as
% of total revenues
|
|
8.4%
|
|
7.7%
|
|
8.3%
|
|
7.7%
|
|
|
Share-based
compensation
|
|
(292)
|
|
(695)
|
|
(770)
|
|
(1,194)
|
|
|
GAAP general and administrative
expenses
|
|
(15,397)
|
|
(17,437)
|
|
(27,643)
|
|
(31,864)
|
|
|
GAAP as % of
total revenues
|
|
8.6%
|
|
8.0%
|
|
8.5%
|
|
8.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP research and
development expenses
|
|
(13,531)
|
|
(17,423)
|
|
(27,302)
|
|
(34,992)
|
|
|
Non-GAAP as
% of total revenues
|
|
7.6%
|
|
8.0%
|
|
8.4%
|
|
8.8%
|
|
|
Share-based
compensation
|
|
(785)
|
|
(1,081)
|
|
(1,449)
|
|
(2,100)
|
|
|
GAAP research and development
expenses
|
|
(14,316)
|
|
(18,504)
|
|
(28,751)
|
|
(37,092)
|
|
|
GAAP as % of
total revenues
|
|
8.0%
|
|
8.5%
|
|
8.8%
|
|
9.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 5
|
|
MINDRAY MEDICAL INTERNATIONAL
LIMITED
|
|
RECONCILIATION OF GAAP NET
INCOME TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended June 30,
|
|
Six months
ended June 30,
|
|
|
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
$
|
42,282
|
|
44,809
|
|
78,479
|
|
82,519
|
|
|
Interest income
|
|
(2,379)
|
|
(3,977)
|
|
(4,513)
|
|
(7,486)
|
|
|
Interest expense
|
|
437
|
|
381
|
|
1,843
|
|
601
|
|
|
Income tax benefits
|
|
7,157
|
|
7,931
|
|
3,710
|
|
6,968
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest and
taxes ("EBIT")
|
|
47,497
|
|
49,144
|
|
79,519
|
|
82,602
|
|
|
Depreciation
|
|
4,683
|
|
5,213
|
|
9,216
|
|
10,261
|
|
|
Amortization
|
|
2,011
|
|
2,546
|
|
4,261
|
|
4,869
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest, taxes,
depreciation, and amortization ("EBITDA")
|
|
54,191
|
|
56,903
|
|
92,996
|
|
97,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Mindray Medical International Limited