SHENZHEN, China, Aug. 6, 2012 /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,
2012.
Highlights for Second Quarter 2012
- Net revenues were $267.8 million,
an increase of 23.3% over the second quarter of 2011.
- Robust China sales growth of
27.1% to $115.3 million
year-over-year, primarily driven by regular sales.
- Strong international sales of $152.5
million, representing an increase of 20.5% from the same
period last year. Emerging markets[1] and developed markets[2]
achieved good sales growth of 21.1% and 19.7% year-over-year,
respectively.
- Non-GAAP gross margin was 57.8%, an improvement of 2.3%
sequentially.
- Non-GAAP net income was $59.5
million, a 19.4% increase over the second quarter of
2011.
- Net operating cash generated during the quarter was
$61.4 million, up a significant 81.6%
compared to the same period last year.
- Reagent revenues growth accelerated, contributing 34.4% to the
in-vitro diagnostic business this quarter, compared to 28.4% in the
same period last year and 31.5% in the prior quarter.
- Mindray introduced five new products in the first half of 2012,
including the latest high speed biochemistry analyzer, the BS-2000,
a clinical biochemistry analyzer, the BS-480, an updated auto
hematology analyzer, the BC-5390, a fully automatic urinary
sediment analyzer, the EH-2050B Plus, and a new portable diagnostic
color ultrasound system, the Z6.
- In July, Mindray completed the acquisition of a controlling
stake in Wuhan Dragonbio Surgical Implant Co., Ltd., a domestic
medical orthopedic products provider.
"Despite the challenging environments in various international
regions, we have once again achieved very solid performance in
sales, profits and cash generation," commented Xu Hang, Mindray's chairman and co-chief
executive officer. "All major geographical areas have delivered
strong growth for the quarter. We are particularly encouraged by
our good performance in developed markets, considering the
volatility of those regions over the past year. We have also
improved our gross margin and the healthy cash conversion cycle
reflected our efforts in improving operational efficiency. In
addition, we have launched new products in our IVD line and closed
the orthopedics acquisition recently. Our reagent sales are
continuing to accelerate. All of these are in line with the
company's strategy to capture opportunities in the fast-growing
consumable products markets. Going forward, we intend to
prudently deploy our strong cash position and continue to
look for attractive investment opportunities worldwide."
SUMMARY – Second Quarter 2012
(in $ millions, except
per-share data)
|
Three Months
Ended
|
June 30
|
2012
|
2011
|
% chg
|
Net Revenues
|
267.8
|
217.3
|
23.3%
|
Revenues generated in
China
|
115.3
|
90.7
|
27.1%
|
Revenues generated outside
China
|
152.5
|
126.6
|
20.5%
|
Gross Profit
|
153.6
|
123.8
|
24.1%
|
Non-GAAP Gross
Profit
|
154.8
|
125.2
|
23.7%
|
Operating
Income
|
55.9
|
47.4
|
17.8%
|
Non-GAAP Operating
Income
|
63.5
|
52.5
|
20.9%
|
EBITDA
|
66.4
|
56.9
|
16.7%
|
Net Income
|
52.0
|
44.8
|
16.1%
|
Non-GAAP Net
Income
|
59.5
|
49.8
|
19.4%
|
Diluted EPS
|
0.44
|
0.37
|
16.3%
|
Non-GAAP Diluted
EPS
|
0.50
|
0.42
|
19.7%
|
Revenues
Mindray reported net revenues of $267.8
million for the second quarter, a 23.3% increase from
$217.3 million in the second quarter
of 2011. Net revenues generated in China in the second quarter increased 27.1% to
$115.3 million from $90.7 million in the same period last year, while
net revenues generated in the international markets in the second
quarter increased 20.5% to $152.5
million from $126.6 million in
the same period of 2011.
Performance by Segment
Patient Monitoring & Life Support Products:
Revenue in this segment increased 23.3% to $114.6 million from $93.0
million in the second quarter of 2011, contributing 42.8% to
total net revenues in the second quarter of 2012.
In-Vitro Diagnostic Products: Revenue in this segment
increased 31.1% to $73.9 million from
$56.4 million in the second quarter
of 2011, contributing 27.6% to total net revenues in the second
quarter of 2012. Reagents sales represented 34.4% of this segment's
revenue.
Medical Imaging Systems: Revenue in this segment
increased 15.1% to $64.1 million from
$55.7 million in the second quarter
of 2011, contributing 24.0% to total net revenues in the second
quarter of 2012.
Others: Other revenues increased 24.4% to $15.1 million from $12.2
million in the second quarter of 2011, contributing 5.6% to
total net revenues in the second quarter of 2012. They included
service revenues from extended warranty, sales of accessories and
service fees charged for post-warranty period repair services.
Gross Margin
Second quarter gross profit was $153.6
million, a 24.1% increase from $123.8
million in the same period last year. Non-GAAP gross profit
in the quarter was $154.8 million, a
23.7% increase from $125.2 million in
the second quarter of 2011. Gross margin was 57.4% compared to
57.0% in the second quarter of 2011 and 54.9% in the first quarter
of 2012. Non-GAAP gross margin was 57.8% compared to 57.6% in the
second quarter of 2011 and 55.5% in the first quarter of 2012.
Operating Expenses
Selling expenses for the quarter were $47.8 million, or 17.8% of total net revenues,
compared to 18.6% in the second quarter of 2011 and 18.1% in the
first quarter of 2012. Non-GAAP selling expenses were $45.5 million, or 17.0% of total net revenues,
compared to 17.7% in the second quarter of 2011 and 17.5% in the
first quarter of 2012.
General and administrative expenses were $26.1 million, or 9.7% of total net revenues,
compared to 8.0% in the second quarter of 2011 and 9.0% in the
first quarter of 2012. Non-GAAP general and administrative expenses
were $23.3 million, or 8.7% of the
total net revenues, compared to 7.7% in the second quarter of 2011
and 8.7% in the first quarter of 2012.
Research and development expenses were $23.9 million, or 8.9% of total net revenues,
compared to 8.5% in the second quarter of 2011 and 11.1% in the
first quarter of 2012. Non-GAAP research and development expenses
were $22.5 million, or 8.4% of total
net revenues, compared to 8.0% in the second quarter of 2011 and
10.7% in the first quarter of 2012.
Total share-based compensation expenses, which were allocated to
cost of revenues and related operating expenses, were $6.0 million compared to $3.3 million in the second quarter of 2011 and
$2.2 million in the first quarter of
2012.
Operating income was $55.9
million, a 17.8% increase from $47.4
million in the second quarter of 2011. Non-GAAP operating
income was $63.5 million, a 20.9%
increase from $52.5 million in the
second quarter of 2011. Operating margin was 20.9% compared to
21.8% in the second quarter of 2011 and 16.8% in the first quarter
of 2012. Non-GAAP operating margin was 23.7% compared to 24.2% in
the second quarter of 2011 and 18.5% in the first quarter of
2012.
Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA")
Second quarter EBITDA increased 16.7% to $66.4 million from $56.9
million in the second quarter of 2011.
Net Income
Net income increased 16.1% to $52.0
million from $44.8 million in
the second quarter of 2011. Non-GAAP net income increased 19.4% to
$59.5 million from $49.8 million in the second quarter of 2011. Net
margin was 19.4% compared to 20.6% in the second quarter of 2011
and 16.7% in the first quarter of 2012. Non-GAAP net margin was
22.2% compared to 22.9% in the second quarter of 2011 and 18.4% in
the first quarter of 2012. Second quarter 2012 income tax expense
was $10.0 million, representing an
effective tax rate of 16.1%.
Second quarter basic and diluted earnings per share were
$0.45 and $0.44, respectively, compared to $0.38 and $0.37 in
the same period last year. Basic and diluted non-GAAP earnings per
share were $0.51 and $0.50, respectively, compared to $0.43 and $0.42 in
the second quarter of 2011. Shares used in the computation of
diluted earnings per share for the second quarter of 2012 were
119.4 million.
Other Select Data
Accounts receivable days were 64 days in the second quarter of
2012 compared to 79 days in the previous quarter. Inventory days
were 87 days compared to 92 days in the previous quarter. Accounts
payable days were 54 days, unchanged from the last quarter. Mindray
calculates the above working capital days using the average of
beginning and ending balances of the quarter.
As of June 30, 2012, the company
had $710.1 million in cash, cash
equivalents and short-term investments, up 6.9% from $664.2 million as of March
31, 2012. Net cash generated from operating activities and
net cash outflow for capital expenditures during the quarter were
$61.4 million and $16.7 million, respectively.
As of June 30, 2012, the company
had approximately 6,800 employees.
Business Outlook for Full Year 2012
The company continues to expect its full year 2012 net revenues
to grow at least 18% over those of the previous year.
The company now expects its full year 2012 non-GAAP net income
to grow at least 15% over the full year 2011 figure, up from its
previous guidance of 13% year-over-year growth. This guidance
excludes the tax benefits related to the National Key Software
Enterprise status and assumes a corporate income tax rate of 15%
applicable to the Shenzhen
subsidiary. Mindray recorded the tax benefits of $7.6 million in the first quarter of 2011 as a
result of receiving the National Key Software Enterprise status for
year 2010. The PRC tax authority has not released the list of
companies that are eligible for renewal of such status and thus we
have not recorded any tax benefits in the first half of 2012. Due
to the change in the review timing from once a year to once every
two years, Mindray cannot determine at this time when the tax
authority will release the list. Upon notice, the potential
benefits will be included in the company's financial
statements.
The company expects its capital expenditure for 2012 to be
around $90 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 confident about delivering our revised financial targets
for the year," commented Li Xiting, Mindray's president and
co-chief executive officer. "We expect China and other emerging markets to continue
to drive our top-line sales. However, we still believe certain
regions could present headwinds for us due to political
uncertainties, other local policy issues and FX fluctuations. We
have done well in the developed markets this quarter. However, in
light of the troubling developments in Europe, we are cautious and are working to
ensure that we remain nimble in order to find the best
opportunities in the region. Looking ahead, we will maintain our
operational excellence and explore additional opportunities that
will further accelerate Mindray's future growth and expansion."
Conference Call Information
Mindray's management will hold an earnings conference call at
8:00 AM on August 7, 2012 U.S. Eastern Time (8:00 PM on August 7,
2012 Beijing/Hong Kong Time).
Dial-in details for the earnings conference call are as
follows:
International Toll
Free:
|
United States:
+1-866-519-4004
|
Hong
Kong: 800-930-346
|
China:
800-819-0121
|
Local dial-in
numbers:
|
United
States: +1-718-354-1231
|
Hong Kong:
+852-2475-0994
|
China:
400-620-8038
|
|
Passcode for all
regions: Mindray
|
A replay of the conference call may be accessed by phone at the
following numbers until August 22,
2012.
U.S. Toll
Free: +1-866-214-5335
|
U.S.
Toll:
+1-718-354-1232
|
China
Toll:
400-692-0026
|
Passcode:
1181-5908
|
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 2012 and
provided guidance for full year 2012 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, 2011 and 2012, 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 2012, our assumption of a corporate income tax rate
of 15% applicable to the Shenzhen
subsidiary, the uncertainty to determine at this time when the PRC
tax authority will release the list of companies that are eligible
for renewal of status of National Key Software Enterprise for the
year 2011, that the potential benefits will be included in our
financial statements upon such notice, that our reagent sales are
continuing to accelerate, which is in line with the company's
strategy to capture opportunities in the fast-growing consumable
products markets, our intent to prudently deploy our strong
cash position and continue to look for attractive investment
opportunities worldwide, our expectation that China and other emerging markets will continue
to drive our top-line sales, our belief that certain regions could
present headwinds for us due to political uncertainties, other
local policy issues and FX fluctuations, that we are cautious and
are working to ensure that we remain nimble in order to find the
best opportunities in Europe in
light of the troubling developments in that region, and our
expectation to maintain our operational excellence and explore
additional opportunities that will further accelerate Mindray's
future growth and expansion, 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, including, without limitation, the
expected growth of the medical device market in China and internationally; relevant government
policies and regulations relating to the medical device industry;
market acceptance of our products; our expectations regarding
demand for our products; our ability to expand our production, our
sales and distribution network and other aspects of our operations;
our ability to stay abreast of market trends and technological
advances; our ability to effectively protect our intellectual
property rights and not infringe on the intellectual property
rights of others; competition in the medical device industry in
China and internationally; and
general economic and business conditions in the countries in which
we operate. 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 5 of
our annual report on Form 20-F which was filed with the Securities
and Exchange Commission on April 30, 2012. Our results of
operations for the second quarter as of June
30, 2012 are not necessarily indicative of our operating
results for any future periods. 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. 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.
All references to "shares" are to our ordinary shares, which are
divided into two classes, Class A and Class B. Each of
our American Depositary Shares, which trade on the New York Stock
Exchange, represents one Class A ordinary share.
About Mindray
We are a leading developer, manufacturer and marketer of medical
devices worldwide. We maintain our 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, we supply through our worldwide
distribution network a broad range of products across three primary
business segments, namely patient monitoring and life support,
in-vitro diagnostic, 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
[1] Emerging markets represent the countries in all
regions except for China and
developed markets.
[2] Developed markets represent the North America and Western European
countries.
Exhibit
1
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
As of December 31,
2011
|
|
As of June 30,
2012
|
|
|
US$
|
|
US$
|
|
|
(Note 1)
|
|
(unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
124,311
|
|
247,985
|
|
Short-term
investments
|
479,173
|
|
462,088
|
|
Accounts receivable,
net
|
200,437
|
|
194,346
|
|
Inventories
|
94,690
|
|
113,850
|
|
Value added tax
receivables
|
10,833
|
|
20,457
|
|
Other
receivables
|
16,590
|
|
13,356
|
|
Prepayments and
deposits
|
9,792
|
|
11,111
|
|
Deferred tax assets,
net
|
3,483
|
|
4,624
|
|
Total current
assets
|
939,309
|
|
1,067,817
|
|
|
|
|
|
|
Other assets
|
7,330
|
|
9,238
|
|
Advances for purchase of
plant and equipment
|
6,239
|
|
3,593
|
|
Property, plant and
equipment, net
|
237,952
|
|
243,578
|
|
Land use rights,
net
|
55,272
|
|
54,351
|
|
Intangible assets,
net
|
84,029
|
|
84,768
|
|
Goodwill
|
128,840
|
|
133,063
|
|
Total assets
|
1,458,971
|
|
1,596,408
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term bank
loans
|
50,475
|
|
52,472
|
|
Notes payable
|
7,013
|
|
4,835
|
|
Accounts
payable
|
48,501
|
|
68,368
|
|
Advances from
customers
|
20,700
|
|
18,293
|
|
Salaries
payable
|
38,784
|
|
37,207
|
|
Other
payables
|
67,499
|
|
79,218
|
|
Income taxes
payable
|
16,847
|
|
17,486
|
|
Other taxes
payable
|
7,412
|
|
4,849
|
|
Total current
liabilities
|
257,231
|
|
282,728
|
|
|
|
|
|
Long-term bank
loans
|
35,025
|
|
85,063
|
Other long-term
payables
|
2,355
|
|
3,401
|
Deferred tax
liabilities, net
|
12,925
|
|
14,388
|
|
|
50,305
|
|
102,852
|
Shareholders'
equity:
|
|
|
|
|
Ordinary
shares
|
15
|
|
15
|
|
Additional paid-in
capital
|
486,314
|
|
504,856
|
|
Retained
earnings
|
566,184
|
|
608,377
|
|
Accumulated other
comprehensive income
|
100,139
|
|
92,786
|
|
Treasury
stock
|
(10,160)
|
|
(6,345)
|
|
Total shareholders'
equity
|
1,142,492
|
|
1,199,689
|
|
|
|
|
|
Non-controlling
interests
|
8,943
|
|
11,139
|
Total equity
|
1,151,435
|
|
1,210,828
|
Total liabilities and
shareholders' equity
|
1,458,971
|
|
1,596,408
|
|
|
|
|
|
(1) Financial
information is extracted from the audited financial statements
included in the Company's fiscal year 2011 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,
|
|
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
Net revenues
|
|
|
|
|
|
|
|
|
|
-PRC
|
|
90,729
|
|
115,294
|
|
163,182
|
|
207,134
|
|
-
International
|
|
126,553
|
|
152,536
|
|
235,004
|
|
279,713
|
|
Net revenues
|
|
217,282
|
|
267,830
|
|
398,186
|
|
486,847
|
|
Cost of
revenues
|
|
(93,486)
|
|
(114,208)
|
|
(174,671)
|
|
(212,900)
|
|
Gross profit
|
|
123,796
|
|
153,622
|
|
223,515
|
|
273,947
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
(40,416)
|
|
(47,759)
|
|
(74,088)
|
|
(87,488)
|
|
General and administrative expenses
|
|
(17,437)
|
|
(26,111)
|
|
(31,864)
|
|
(45,725)
|
|
Research and development expenses
|
|
(18,504)
|
|
(23,877)
|
|
(37,092)
|
|
(48,154)
|
|
Operating
income
|
|
47,439
|
|
55,875
|
|
80,471
|
|
92,580
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
1,752
|
|
388
|
|
2,178
|
|
973
|
|
Interest
income
|
|
3,977
|
|
7,260
|
|
7,486
|
|
15,698
|
|
Interest
expense
|
|
(381)
|
|
(1,287)
|
|
(601)
|
|
(1,978)
|
|
Income before income
taxes and non-controlling interests
|
|
52,787
|
|
62,236
|
|
89,534
|
|
107,273
|
|
Provision for income
taxes
|
|
(7,931)
|
|
(10,023)
|
|
(6,968)
|
|
(18,366)
|
|
Net
income
|
|
44,856
|
|
52,213
|
|
82,566
|
|
88,907
|
|
Less: Net income
attributable to non-controlling interests
|
|
(47)
|
|
(206)
|
|
(47)
|
|
(313)
|
|
Net income attributable to the Company
|
|
44,809
|
|
52,007
|
|
82,519
|
|
88,594
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
0.38
|
|
0.45
|
|
0.72
|
|
0.76
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
0.37
|
|
0.44
|
|
0.70
|
|
0.74
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the
computation of:
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
116,504,103
|
|
116,547,129
|
|
115,026,629
|
|
116,283,063
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
119,653,716
|
|
119,394,768
|
|
118,275,625
|
|
119,353,032
|
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,
|
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
Net
income
|
44,809
|
|
52,007
|
|
82,519
|
|
88,594
|
|
Adjustments to reconcile net income to net cash from operating activities
|
9,621
|
|
22,078
|
|
21,935
|
|
36,593
|
|
Changes in
current assets and liabilities
|
(20,647)
|
|
(12,731)
|
|
(38,373)
|
|
(3,711)
|
|
Net cash generated
from operating activities
|
33,783
|
|
61,354
|
|
66,081
|
|
121,476
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
Acquisition
cost, net of cash acquired
|
(3,646)
|
|
-
|
|
(3,646)
|
|
(2,739)
|
|
Capital
expenditures
|
(17,039)
|
|
(16,745)
|
|
(44,355)
|
|
(32,835)
|
|
Proceeds
from sale of short-term investments
|
4,441
|
|
-
|
|
90,133
|
|
144,395
|
|
Increase in short-term investments and changes in others investing activities
|
(40,915)
|
|
(32,637)
|
|
(152,264)
|
|
(125,489)
|
|
Net cash used in
investing activities
|
(57,159)
|
|
(49,382)
|
|
(110,132)
|
|
(16,668)
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds
from bank loans
|
34,930
|
|
2,000
|
|
34,930
|
|
52,000
|
|
Dividends
paid
|
(34,522)
|
|
-
|
|
(34,522)
|
|
(46,401)
|
|
Proceeds
from exercise of options
|
3,112
|
|
4,691
|
|
4,347
|
|
14,138
|
|
Cash
contribution from non-controlling interests
|
-
|
|
-
|
|
-
|
|
506
|
|
Net cash generated
from financing activities
|
3,520
|
|
6,691
|
|
4,755
|
|
20,243
|
|
|
|
|
|
|
|
|
|
|
Net
(decrease)/increase in cash and cash equivalents
|
(19,856)
|
|
18,663
|
|
(39,296)
|
|
125,051
|
|
Cash and cash
equivalents at beginning of period
|
118,746
|
|
231,010
|
|
137,502
|
|
124,311
|
|
Effect of exchange rate
changes on cash
|
724
|
|
(1,688)
|
|
1,408
|
|
(1,377)
|
|
Cash and cash
equivalents at end of period
|
99,614
|
|
247,985
|
|
99,614
|
|
247,985
|
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,
|
|
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
|
49,840
|
|
59,510
|
|
92,062
|
|
99,894
|
|
Non-GAAP net
margin
|
|
22.9%
|
|
22.2%
|
|
23.1%
|
|
20.5%
|
|
Amortization of acquired intangible assets
|
|
(1,783)
|
|
(1,629)
|
|
(3,550)
|
|
(3,264)
|
|
Deferred tax impact related to acquired intangible assets
|
|
34
|
|
83
|
|
68
|
|
118
|
|
Share-based
compensation
|
|
(3,282)
|
|
(5,957)
|
|
(6,061)
|
|
(8,154)
|
|
GAAP net
income
|
|
44,809
|
|
52,007
|
|
82,519
|
|
88,594
|
|
GAAP net
margin
|
|
20.6%
|
|
19.4%
|
|
20.7%
|
|
18.2%
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic earnings
per share
|
|
0.43
|
|
0.51
|
|
0.80
|
|
0.86
|
|
Non-GAAP diluted
earnings per share
|
|
0.42
|
|
0.50
|
|
0.78
|
|
0.84
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basic earnings per
share
|
|
0.38
|
|
0.45
|
|
0.72
|
|
0.76
|
|
GAAP diluted earnings
per share
|
|
0.37
|
|
0.44
|
|
0.70
|
|
0.74
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computation of:
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
116,504,103
|
|
116,547,129
|
|
115,026,629
|
|
116,283,063
|
|
Diluted earnings
per share
|
|
119,653,716
|
|
119,394,768
|
|
118,275,625
|
|
119,353,032
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
|
52,504
|
|
63,461
|
|
90,082
|
|
103,998
|
|
Non-GAAP operating
margin
|
|
24.2%
|
|
23.7%
|
|
22.6%
|
|
21.4%
|
|
Amortization of acquired
intangible assets
|
|
(1,783)
|
|
(1,629)
|
|
(3,550)
|
|
(3,264)
|
|
Share-based
compensation
|
|
(3,282)
|
|
(5,957)
|
|
(6,061)
|
|
(8,154)
|
|
GAAP operating
income
|
|
47,439
|
|
55,875
|
|
80,471
|
|
92,580
|
|
GAAP operating
margin
|
|
21.8%
|
|
20.9%
|
|
20.2%
|
|
19.0%
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross
profit
|
|
125,152
|
|
154,796
|
|
226,193
|
|
276,245
|
|
Non-GAAP gross
margin
|
|
57.6%
|
|
57.8%
|
|
56.8%
|
|
56.7%
|
|
Amortization of acquired
intangible assets
|
|
(1,153)
|
|
(960)
|
|
(2,297)
|
|
(1,926)
|
|
Share-based
compensation
|
|
(203)
|
|
(214)
|
|
(381)
|
|
(372)
|
|
GAAP gross
profit
|
|
123,796
|
|
153,622
|
|
223,515
|
|
273,947
|
|
GAAP gross
margin
|
|
57.0%
|
|
57.4%
|
|
56.1%
|
|
56.3%
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP selling
expenses
|
|
(38,483)
|
|
(45,472)
|
|
(70,449)
|
|
(83,838)
|
|
Non-GAAP as % of
total revenues
|
|
17.7%
|
|
17.0%
|
|
17.7%
|
|
17.2%
|
|
Amortization of acquired
intangible assets
|
|
(630)
|
|
(669)
|
|
(1,253)
|
|
(1,338)
|
|
Share-based
compensation
|
|
(1,303)
|
|
(1,618)
|
|
(2,386)
|
|
(2,312)
|
|
GAAP selling
expenses
|
|
(40,416)
|
|
(47,759)
|
|
(74,088)
|
|
(87,488)
|
|
GAAP as % of total
revenues
|
|
18.6%
|
|
17.8%
|
|
18.6%
|
|
18.0%
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP general and
administrative expenses
|
|
(16,742)
|
|
(23,317)
|
|
(30,670)
|
|
(42,418)
|
|
Non-GAAP as % of
total revenues
|
|
7.7%
|
|
8.7%
|
|
7.7%
|
|
8.7%
|
|
Share-based
compensation
|
|
(695)
|
|
(2,794)
|
|
(1,194)
|
|
(3,307)
|
|
GAAP general and
administrative expenses
|
|
(17,437)
|
|
(26,111)
|
|
(31,864)
|
|
(45,725)
|
|
GAAP as % of total
revenues
|
|
8.0%
|
|
9.7%
|
|
8.0%
|
|
9.4%
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP research and
development expenses
|
|
(17,423)
|
|
(22,546)
|
|
(34,992)
|
|
(45,991)
|
|
Non-GAAP as % of
total revenues
|
|
8.0%
|
|
8.4%
|
|
8.8%
|
|
9.4%
|
|
Share-based
compensation
|
|
(1,081)
|
|
(1,331)
|
|
(2,100)
|
|
(2,163)
|
|
GAAP research and
development expenses
|
|
(18,504)
|
|
(23,877)
|
|
(37,092)
|
|
(48,154)
|
|
GAAP as % of total
revenues
|
|
8.5%
|
|
8.9%
|
|
9.3%
|
|
9.9%
|
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,
|
|
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
|
44,809
|
|
52,007
|
|
82,519
|
|
88,594
|
|
Interest
income
|
|
(3,977)
|
|
(7,260)
|
|
(7,486)
|
|
(15,698)
|
|
Interest
expense
|
|
381
|
|
1,287
|
|
601
|
|
1,978
|
|
Provision for income
tax
|
|
7,931
|
|
10,023
|
|
6,968
|
|
18,366
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest
and taxes ("EBIT")
|
|
49,144
|
|
56,057
|
|
82,602
|
|
93,240
|
|
Depreciation
|
|
5,213
|
|
7,451
|
|
10,261
|
|
14,041
|
|
Amortization
|
|
2,546
|
|
2,903
|
|
4,869
|
|
5,792
|
|
|
|
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
("EBITDA")
|
|
56,903
|
|
66,411
|
|
97,732
|
|
113,073
|
SOURCE Mindray Medical International Limited