SHENZHEN, China, Nov. 4, 2013 /PRNewswire/ -- 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 third quarter ended
September 30, 2013.
Highlights for Third Quarter 2013
- Net revenues increased 15.3% year-over-year to $296.3 million. International sales grew 17.9%
and China sales rose 12.1%
compared to the same period of last year.
- Western Europe recorded a
year-over-year net revenue growth of more than 25%. Certain key
countries in the emerging markets also continued to perform
well.
- Reagent sales contributed 40.2% to the IVD segment, up from
37.4% in the same period last year and 36.6% in the previous
quarter.
- Non-GAAP net income increased 14.5% to $57.4 million from the same period of last
year.
- The cash conversion cycle was 91 days, compared to 106 days in
the same period last year, primarily due to better control on
receivable collections.
- Mindray introduced its very first chemiluminescence immunoassay
product, the CL-2000i, with several reagents.
- Mindray completed two acquisitions during the quarter – Zonare
Medical Systems, Inc., a US ultrasound company, and Ulco Medical
Pty. Ltd., an Australia-based
former distributor of Mindray.
"In the third quarter, we reported solid top-line growth. We are
particularly happy with our continued strong sales performance in
Western Europe. Certain key
emerging markets also continued to do well, although demand in some
countries remained soft due to external factors. In China, the recent weak market sentiment in the
healthcare sector has caused some delays in purchasing activities
in the third quarter. However, the industry fundamentals remain
solid," said Mr. Li Xiting,
Mindray's President and Co-Chief Executive Officer. "Reagent sales
continued to climb this quarter, highlighting our success in
ramping up this recurring IVD revenue. We are also excited to
launch our first-generation immunoassay product, which further
strengthened our IVD product offerings."
SUMMARY – Third quarter 2013
(in $ millions,
except per-share data)
|
Three Months
Ended
|
September
30
|
2013
|
2012
|
% chg
|
Net
Revenues
|
296.3
|
257.1
|
15.3%
|
Net Revenues Generated in China
|
132.0
|
117.7
|
12.1%
|
Net Revenues Generated in International Markets
|
164.3
|
139.4
|
17.9%
|
Gross
Profit
|
165.1
|
144.0
|
14.7%
|
Non-GAAP Gross
Profit
|
167.2
|
145.2
|
15.2%
|
Operating
Income
|
50.5
|
39.1
|
29.3%
|
Non-GAAP Operating
Income
|
57.4
|
53.5
|
7.4%
|
EBITDA
|
64.7
|
48.3
|
33.8%
|
Net Income
|
30.1
|
35.8
|
-15.9%
|
Non-GAAP Net
Income
|
57.4
|
50.1
|
14.5%
|
Diluted
EPS
|
0.25
|
0.30
|
-16.8%
|
Non-GAAP Diluted
EPS
|
0.47
|
0.42
|
13.3%
|
Net Revenues
Mindray reported net revenues of $296.3
million for the third quarter of 2013, a 15.3% increase from
$257.1 million in the third quarter
of 2012.
- Net revenues generated in China increased 12.1% to $132.0 million from $117.7
million in the third quarter of 2012.
- Net revenues generated in the international markets increased
17.9% to $164.3 million from
$139.4 million in the third quarter
of 2012.
Performance by Segment
Patient Monitoring & Life Support Products: Net
revenues in this segment increased 6.2% to $110.3 million from $103.8
million in the third quarter of 2012, contributing 37.2% to
total net revenues in the third quarter of 2013.
In-Vitro Diagnostic Products: Net revenues in this
segment increased 14.2% to $83.0
million from $72.6 million in
the third quarter of 2012, contributing 28.0% to total net revenues
in the third quarter of 2013. Reagents sales represented 40.2% of
this segment's net revenues.
Medical Imaging Systems: Net revenues in this segment
increased 26.7% to $77.1 million from
$60.9 million in the third quarter of
2012, contributing 26.0% to total net revenues in the third quarter
of 2013.
Others: Net revenues increased 31.2% to $25.9 million from $19.8
million in the third quarter of 2012, contributing 8.8% to
total net revenues in the third quarter of 2013. Other net revenues
mainly include sales from the orthopedics business, service
revenues from extended warranties, sales of accessories and repair
service revenues for post-warranty period.
Gross Margin
Third quarter 2013 gross profit was $165.1 million, a 14.7% increase from
$144.0 million in the third quarter
of 2012. Third quarter 2013 non-GAAP gross profit was $167.2 million, a 15.2% increase from
$145.2 million in the third quarter
of 2012. Third quarter 2013 gross margin was 55.7% compared to
56.0% in the third quarter of 2012 and 57.5% in the second quarter
of 2013. Non-GAAP gross margin was 56.4% compared to 56.5% in the
third quarter of 2012 and 58.2% in the second quarter of 2013.
Operating Expenses
Selling expenses in the third quarter of 2013 were $57.5 million, or 19.4% of total net revenues,
compared to 18.5% in the third quarter of 2012 and 17.8% in the
second quarter of 2013. Non-GAAP selling expenses were $54.2 million, or 18.3% of total net revenues,
compared to 17.8% in the third quarter of 2012 and 17.0% in the
second quarter of 2013.
General and administrative expenses for the third quarter of
2013 were $25.5 million, or 8.6% of
total net revenues, lower than 13.2% in the third quarter of 2012
and 8.7% in the second quarter of 2013. Non-GAAP general and
administrative expenses for the third quarter of 2013 were
$25.0 million, or 8.4% of total net
revenues, lower than 9.2% in the third quarter of 2012 and 8.5% in
the second quarter of 2013.
Research and development expenses for the third quarter of 2013
were $31.6 million, or 10.7% of total
net revenues, higher than 9.0% in the third quarter of 2012 and
9.3% in the second quarter of 2013. Non-GAAP research and
development expenses for the third quarter of 2013 were
$30.6 million, or 10.3% of total net
revenues, compared to 8.6% in the third quarter of 2012 and 8.9% in
the second quarter of 2013.
Total share-based compensation expenses, which were allocated to
cost of revenues and related operating expenses, were $2.9 million in the third quarter of 2013, lower
than $3.1 million in the third
quarter of 2012 and $3.2 million in
the second quarter of 2013.
Operating income was $50.5 million
in the third quarter of 2013, a 29.3% increase from $39.1 million in the third quarter of 2012.
Non-GAAP operating income in the third quarter of 2013 was
$57.4 million, a 7.4% increase from
$53.5 million in the third quarter of
2012. Operating margin was 17.1% in the third quarter of 2013,
higher than 15.2% in the third quarter of 2012 but below 21.7% in
the second quarter of 2013. Non-GAAP operating margin was 19.4% in
the third quarter of 2013 compared to 20.8% in the third quarter of
2012 and 23.8% in the second quarter of 2013.
Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA")
Third quarter 2013 EBITDA increased 33.8% year-over-year to
$64.7 million from $48.3 million in the third quarter of 2012.
Net Income
Third quarter 2013 net income declined 15.9% year-over-year to
$30.1 million from $35.8 million in the third quarter of 2012. Third
quarter 2013 non-GAAP net income increased 14.5% year-over-year to
$57.4 million from $50.1 million in the third quarter of 2012. Net
margin was 10.1% in the third quarter of 2013 compared to 13.9% in
the third quarter of 2012 and 20.2% in the second quarter of 2013.
Non-GAAP net margin was 19.4% in the third quarter of 2013,
compared to 19.5% in the third quarter of 2012 and 22.2% in the
second quarter of 2013.
Third quarter 2013 basic and diluted earnings per share were
both $0.25, compared to $0.31 and $0.30
respectively in the third quarter of 2012. Third quarter 2013 basic
and diluted non-GAAP earnings per share were $0.48 and $0.47
respectively, compared to $0.43 and
$0.42 in the third quarter of 2012.
Shares used in the computation of diluted earnings per share for
the third quarter 2013 were 121.2 million.
Other Select Data
Accounts receivable turnover days were 56 days in the third
quarter of 2013, improved from 66 days in the third quarter of 2012
and compared to 52 days in the second quarter of 2013. Inventory
turnover days were 94 days in the third quarter of 2013, shorter
than 100 days in the third quarter of 2012 and compared to 88 days
in the second quarter of 2013. Accounts payable turnover days were
59 days in the third quarter of 2013, compared to 60 days in the
third quarter of 2012 and 54 days in the second quarter of 2013.
Mindray calculates the above working capital turnover days using
the average of the beginning and ending net balances of the
quarter.
As of September 30, 2013, the
company had $1 billion in cash and
cash equivalents as well as short-term investments, compared to
$958.5 million as of June 30, 2013. Net cash generated by operating
activities and net cash outflow for capital expenditures during the
quarter were $67.1 million and
$26.9 million respectively.
As of September 30, 2013, the
company had around 7,860 employees.
Business Outlook for Full Year 2013
Mindray revises its full year 2013 net revenues guidance and now
forecasts at least 13% growth over its full year 2012 net
revenues.
The company also updates its full year 2013 non-GAAP net income
guidance and projects at least 11% growth over its non-GAAP net
income for the full year of 2012. This guidance excludes any tax
benefit related to the National Key Software Enterprise status and
assumes a corporate income tax rate of 15% for the Shenzhen subsidiary.
The company expects its capital expenditure for full year 2013
to be around $100 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 revising our financial guidance for 2013, primarily due
to the enduring hospital purchase slowdown in China. In other geographies, we expect some
countries to perform well in the emerging markets, but political
and currency issues will affect other areas. For the developed
markets, we are confident about our expansion in Western Europe and expect the North American
business will stabilize," commented Mr. Cheng Minghe, Mindray's
Co-Chief Executive Officer and Chief Strategic Officer. "Overall,
we remain upbeat about the long-term prospects of Mindray. We will
continue to work hard to increase our worldwide market penetration,
optimize our global operations and seek promising external growth
opportunities."
Conference Call Information
Mindray's management will hold an earnings conference call at
8:00 AM on November 5, 2013 U.S. Eastern Time (9:00 PM on November 5,
2013 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
Landline:
|
800-819-0121
|
|
|
Local dial-in
numbers:
|
|
United
States:
|
+1-845-675-0437
|
Hong Kong:
|
+852-2475-0994
|
China
Mobile:
|
400-620-8038
|
Passcode for all
regions:
|
Mindray
|
A replay of the conference call may be accessed by phone at the
following numbers until November 20,
2013.
U.S. Toll
Free:
|
+1-855-452-5696
|
International:
|
+1-646-254-3697
|
Passcode:
|
86589814
|
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, acquired intangible assets
amortization expense, dispute charges and withholding tax for
intra-group fund transfer, 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 third quarter of 2013 and
provided guidance for full year 2013 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, amortization of acquired intangible assets and
dispute charges.
- 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 and dispute
charges.
- 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, amortization of acquired intangible assets, dispute
charges and withholding tax for intra-group transfer, 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.
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
and nine months ended September 30, 2012 and 2013,
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 2013, our assumption of a corporate income tax rate
of 15% applicable to the Shenzhen
subsidiary, statements that the industry fundamentals remain solid,
that we are also excited to launch our first-generation immunoassay
products, which further strengthened our IVD products offerings,
Mindray's revised full year revenue guidance, statement that
Mindray now forecasts at least 13% growth over its full year 2012
net revenues, our updated full year 2013 non-GAAP net income
guidance, our projections of at least 11% growth over our non-GAAP
net income for the full year of 2012, statement that we expect
capital expenditure for full year 2013 to be around USD100million, statement about the enduring
hospital purchase slow down in China, statement that we expect some countries
to perform well in the emerging markets, but political and currency
issues will affect other areas, our confidence about our expansion
in Western Europe, our expectation
that North American business will stabilize, statement that we
remain upbeat about the long-term prospects of Mindray and
statement that we will continue to work hard to increase our
worldwide market penetration, optimize our global operations and
seek promising external growth opportunities, 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 growth and 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; our ability
to settle disputes with our customers and suppliers; 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 8,
2013. Our results of operations for the third quarter as of
September 30, 2013 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 China:
Cathy Gao
Mindray Medical International Limited
Tel: +86-755-8188-8023
Email: cathy.gao@mindray.com
In the U.S:
Hoki Luk
Western Bridge, LLC
Tel: +1-646-808-9150
Email: hoki.luk@westernbridgegroup.com
Exhibit
1
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
As of December 31,
2012
|
|
As of September 30,
2013
|
|
|
US$
|
|
US$
|
|
|
(Note
1)
|
|
(unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
247,859
|
|
200,018
|
|
Restricted cash and
restricted investment (Note 2)
|
21,528
|
|
568
|
|
Short-term
investments
|
615,003
|
|
825,802
|
|
Accounts receivable,
net
|
185,701
|
|
179,290
|
|
Inventories
|
110,099
|
|
143,733
|
|
Value added tax
receivables
|
7,427
|
|
24,460
|
|
Other
receivables
|
15,704
|
|
35,267
|
|
Prepayments and
deposits
|
11,081
|
|
17,311
|
|
Deferred tax
assets,net
|
6,443
|
|
8,290
|
Total current
assets
|
1,220,845
|
|
1,434,739
|
|
|
|
|
|
Restricted cash,
non-current (Note 2)
|
-
|
|
18,000
|
Other
assets
|
10,811
|
|
11,799
|
Accounts receivables,
net, non-current
|
2,172
|
|
1,566
|
Advances for purchase
of plant and equipment
|
3,009
|
|
7,829
|
Property, plant and
equipment, net
|
268,010
|
|
299,790
|
Land use rights,
net
|
56,921
|
|
59,307
|
Intangible assets,
net
|
132,334
|
|
182,040
|
Goodwill
|
163,016
|
|
242,540
|
Total
assets
|
1,857,118
|
|
2,257,610
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term bank
loans
|
85,100
|
|
100,049
|
|
Notes
payable
|
8,697
|
|
9,424
|
|
Accounts
payable
|
53,244
|
|
77,847
|
|
Advances from
customers
|
17,550
|
|
26,107
|
|
Salaries
payable
|
69,919
|
|
70,823
|
|
Other
payables
|
108,528
|
|
108,690
|
|
Purchase
consideration payable
|
20,354
|
|
24,800
|
|
Income taxes
payable
|
30,305
|
|
39,226
|
|
Other taxes
payable
|
8,894
|
|
10,558
|
Total current
liabilities
|
402,591
|
|
467,524
|
|
|
|
|
|
Long-term bank
loan
|
50,039
|
|
214,856
|
Other long-term
liabilities
|
4,004
|
|
6,990
|
Deferred tax
liabilities, net
|
23,369
|
|
42,166
|
Total
liabilities
|
480,003
|
|
731,536
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Ordinary
shares
|
15
|
|
15
|
|
Additional paid-in
capital
|
514,280
|
|
540,831
|
|
Retained
earnings
|
699,992
|
|
790,460
|
|
Accumulated other
comprehensive income
|
116,556
|
|
137,358
|
|
Total shareholders'
equity
|
1,330,843
|
|
1,468,664
|
|
|
|
|
|
Non-controlling
interests
|
46,272
|
|
57,410
|
Total
equity
|
1,377,115
|
|
1,526,074
|
Total liabilities and
equity
|
1,857,118
|
|
2,257,610
|
|
|
|
|
|
(1) Financial
information is extracted from the audited financial statements
included in the Company's 2012 annual reports on Form
20-F.
|
(2) Restricted cash
and restricted investment are mainly those purchase consideration
in connection with our acquisition being held on escrow
accounts.
|
Exhibit
2
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Dollars in
thousands, except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended September 30,
|
|
Nine
months ended September 30,
|
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Net
revenues
|
|
|
|
|
|
|
|
|
-
China
|
|
117,721
|
|
132,007
|
|
324,855
|
|
390,754
|
-
International
|
|
139,370
|
|
164,311
|
|
419,083
|
|
454,818
|
Net
revenues
|
|
257,091
|
|
296,318
|
|
743,938
|
|
845,572
|
Cost of
revenues
|
|
(113,134)
|
|
(131,180)
|
|
(326,034)
|
|
(364,886)
|
Gross
profit
|
|
143,957
|
|
165,138
|
|
417,904
|
|
480,686
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
(47,628)
|
|
(57,499)
|
|
(135,116)
|
|
(159,215)
|
General and
administrative expenses
|
|
(34,036)
|
|
(25,530)
|
|
(79,761)
|
|
(78,743)
|
Research and
development expenses
|
|
(23,222)
|
|
(31,573)
|
|
(71,376)
|
|
(86,474)
|
Income from
operations
|
|
39,071
|
|
50,536
|
|
131,651
|
|
156,254
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
469
|
|
333
|
|
1,442
|
|
832
|
Interest
income
|
|
7,147
|
|
10,034
|
|
22,845
|
|
26,261
|
Interest
expense
|
|
(1,087)
|
|
(1,742)
|
|
(3,065)
|
|
(4,185)
|
Income before income
taxes and non-controlling interests
|
|
45,600
|
|
59,161
|
|
152,873
|
|
179,162
|
Provision for income
taxes
|
|
(9,108)
|
|
(27,935)
|
|
(27,474)
|
|
(25,744)
|
Net
income
|
|
36,492
|
|
31,226
|
|
125,399
|
|
153,418
|
Less: Net income
attributable to non-controlling interests
|
|
(726)
|
|
(1,162)
|
|
(1,039)
|
|
(3,880)
|
Net income
attributable to the Company
|
|
35,766
|
|
30,064
|
|
124,360
|
|
149,538
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
0.31
|
|
0.25
|
|
1.07
|
|
1.26
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
0.30
|
|
0.25
|
|
1.04
|
|
1.24
|
|
|
|
|
|
|
|
|
|
Shares used in the
computation of:
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
117,083,942
|
|
119,142,051
|
|
116,550,514
|
|
118,616,515
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
119,895,832
|
|
121,162,145
|
|
119,571,324
|
|
120,945,344
|
Exhibit
3
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Three
months ended September 30,
|
|
Nine
months ended September 30,
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
Net
income
|
36,492
|
|
31,226
|
|
125,399
|
|
153,418
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
13,387
|
|
18,775
|
|
49,667
|
|
51,104
|
Changes in
current assets and liabilities, net of effects of
acquisitions
|
9,418
|
|
17,096
|
|
5,707
|
|
(18,800)
|
Net cash provided
by operating activities
|
59,297
|
|
67,097
|
|
180,773
|
|
185,722
|
|
|
|
|
|
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
Acquisition cost of subsidiaries, net of cash
received
|
(28,749)
|
|
(87,533)
|
|
(31,488)
|
|
(105,018)
|
Capital
expenditure
|
(14,409)
|
|
(26,939)
|
|
(47,244)
|
|
(67,179)
|
(Increase) decrease in restricted cash and restricted
investment
|
-
|
|
(18,304)
|
|
-
|
|
2,960
|
Proceeds
from sale of short-term investments
|
-
|
|
187,471
|
|
144,395
|
|
591,808
|
Increase
in short-term investments and changes in other investing
activities
|
(110,039)
|
|
(244,626)
|
|
(235,528)
|
|
(794,145)
|
Net cash used in
investing activities
|
(153,197)
|
|
(189,931)
|
|
(169,865)
|
|
(371,574)
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
Repayment of bank loans
|
-
|
|
-
|
|
-
|
|
(35,000)
|
Proceeds
from bank loans
|
-
|
|
120,000
|
|
52,000
|
|
215,000
|
Dividend
paid
|
-
|
|
-
|
|
(46,401)
|
|
(59,070)
|
Proceeds
from exercise of options
|
8,491
|
|
6,748
|
|
22,629
|
|
15,600
|
Cash
contribution from non-controlling interest
|
-
|
|
-
|
|
506
|
|
-
|
Net cash provided
by financing activities
|
8,491
|
|
126,748
|
|
28,734
|
|
136,530
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
(85,409)
|
|
3,914
|
|
39,642
|
|
(49,322)
|
Cash and cash
equivalents, beginning of period
|
247,985
|
|
195,373
|
|
124,311
|
|
247,859
|
Effect of exchange
rate changes on cash
|
1,923
|
|
731
|
|
546
|
|
1,481
|
Cash and cash
equivalents, end of period
|
164,499
|
|
200,018
|
|
164,499
|
|
200,018
|
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 September 30,
|
|
Nine
months ended September 30,
|
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to the Company
|
|
50,135
|
|
57,412
|
|
150,029
|
|
190,220
|
Non-GAAP net
margin
|
|
19.5%
|
|
19.4%
|
|
20.2%
|
|
22.5%
|
Amortization of
acquired intangible assets
|
|
(1,630)
|
|
(3,948)
|
|
(4,894)
|
|
(9,752)
|
Withholding tax for
intra-group fund transfer
|
|
-
|
|
(20,804)
|
|
-
|
|
(20,804)
|
Deferred tax impact
related to acquired intangible assets
|
|
59
|
|
353
|
|
177
|
|
768
|
Dispute
charges
|
|
(9,700)
|
|
-
|
|
(9,700)
|
|
-
|
Share-based
compensation
|
|
(3,098)
|
|
(2,949)
|
|
(11,252)
|
|
(10,894)
|
GAAP net income
attributable to the Company
|
|
35,766
|
|
30,064
|
|
124,360
|
|
149,538
|
GAAP net
margin
|
|
13.9%
|
|
10.1%
|
|
16.7%
|
|
17.7%
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic
earnings per share
|
|
0.43
|
|
0.48
|
|
1.29
|
|
1.60
|
Non-GAAP diluted
earnings per share
|
|
0.42
|
|
0.47
|
|
1.25
|
|
1.57
|
|
|
|
|
|
|
|
|
|
GAAP basic earnings
per share
|
|
0.31
|
|
0.25
|
|
1.07
|
|
1.26
|
GAAP diluted earnings
per share
|
|
0.30
|
|
0.25
|
|
1.04
|
|
1.24
|
|
|
|
|
|
|
|
|
|
Shares used in
computation of:
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
117,083,942
|
|
119,142,051
|
|
116,550,514
|
|
118,616,515
|
Diluted
earnings per share
|
|
119,895,832
|
|
121,162,145
|
|
119,571,324
|
|
120,945,344
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
|
53,499
|
|
57,433
|
|
157,497
|
|
176,900
|
Non-GAAP operating
margin
|
|
20.8%
|
|
19.4%
|
|
21.2%
|
|
20.9%
|
Amortization of
acquired intangible assets
|
|
(1,630)
|
|
(3,948)
|
|
(4,894)
|
|
(9,752)
|
Dispute
charges
|
|
(9,700)
|
|
-
|
|
(9,700)
|
|
-
|
Share-based
compensation
|
|
(3,098)
|
|
(2,949)
|
|
(11,252)
|
|
(10,894)
|
GAAP operating
income
|
|
39,071
|
|
50,536
|
|
131,651
|
|
156,254
|
GAAP operating
margin
|
|
15.2%
|
|
17.1%
|
|
17.7%
|
|
18.5%
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross
profit
|
|
145,171
|
|
167,222
|
|
421,416
|
|
486,641
|
Non-GAAP gross
margin
|
|
56.5%
|
|
56.4%
|
|
56.6%
|
|
57.6%
|
Amortization of
acquired intangible assets
|
|
(963)
|
|
(1,888)
|
|
(2,889)
|
|
(5,415)
|
Share-based
compensation
|
|
(251)
|
|
(196)
|
|
(623)
|
|
(540)
|
GAAP gross
profit
|
|
143,957
|
|
165,138
|
|
417,904
|
|
480,686
|
GAAP gross
margin
|
|
56.0%
|
|
55.7%
|
|
56.2%
|
|
56.8%
|
|
|
|
|
|
|
|
|
|
Non-GAAP selling
expenses
|
|
(45,786)
|
|
(54,182)
|
|
(129,624)
|
|
(151,279)
|
Non-GAAP as % of
total revenues
|
|
17.8%
|
|
18.3%
|
|
17.4%
|
|
17.9%
|
Amortization of
acquired intangible assets
|
|
(667)
|
|
(2,060)
|
|
(2,005)
|
|
(4,337)
|
Share-based
compensation
|
|
(1,175)
|
|
(1,257)
|
|
(3,487)
|
|
(3,599)
|
GAAP selling
expenses
|
|
(47,628)
|
|
(57,499)
|
|
(135,116)
|
|
(159,215)
|
GAAP as % of total
revenues
|
|
18.5%
|
|
19.4%
|
|
18.2%
|
|
18.8%
|
|
|
|
|
|
|
|
|
|
Non-GAAP general
and administrative expenses
|
|
(23,735)
|
|
(25,007)
|
|
(66,153)
|
|
(75,188)
|
Non-GAAP as % of
total revenues
|
|
9.2%
|
|
8.4%
|
|
8.9%
|
|
8.9%
|
Dispute
charges
|
|
(9,700)
|
|
-
|
|
(9,700)
|
|
-
|
Share-based
compensation
|
|
(601)
|
|
(523)
|
|
(3,908)
|
|
(3,555)
|
GAAP general and
administrative expenses
|
|
(34,036)
|
|
(25,530)
|
|
(79,761)
|
|
(78,743)
|
GAAP as % of total
revenues
|
|
13.2%
|
|
8.6%
|
|
10.7%
|
|
9.3%
|
|
|
|
|
|
|
|
|
|
Non-GAAP research
and development expenses
|
|
(22,151)
|
|
(30,600)
|
|
(68,142)
|
|
(83,274)
|
Non-GAAP as % of
total revenues
|
|
8.6%
|
|
10.3%
|
|
9.2%
|
|
9.8%
|
Share-based
compensation
|
|
(1,071)
|
|
(973)
|
|
(3,234)
|
|
(3,200)
|
GAAP research and
development expenses
|
|
(23,222)
|
|
(31,573)
|
|
(71,376)
|
|
(86,474)
|
GAAP as % of total
revenues
|
|
9.0%
|
|
10.7%
|
|
9.6%
|
|
10.2%
|
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 September 30,
|
|
Nine
months ended September 30,
|
|
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to the Company
|
$
|
35,766
|
|
30,064
|
|
124,360
|
|
149,538
|
|
Interest
income
|
|
(7,147)
|
|
(10,034)
|
|
(22,845)
|
|
(26,261)
|
|
Interest
expense
|
|
1,087
|
|
1,742
|
|
3,065
|
|
4,185
|
|
Provision for income
taxes
|
|
9,108
|
|
27,935
|
|
27,474
|
|
25,744
|
|
|
|
|
|
|
|
|
|
|
Earnings before
interest and taxes ("EBIT")
|
|
38,814
|
|
49,707
|
|
132,054
|
|
153,206
|
|
Depreciation
|
|
6,557
|
|
8,804
|
|
20,598
|
|
24,514
|
|
Amortization
|
|
2,963
|
|
6,152
|
|
8,755
|
|
15,649
|
|
|
|
|
|
|
|
|
|
|
Earnings before
interest,taxes,depreciation and amortization ("EBITDA")
|
|
48,334
|
|
64,663
|
|
161,407
|
|
193,369
|
SOURCE Mindray Medical International Limited