SHENZHEN, China, March 3, 2014 /PRNewswire/ -- Mindray Medical
International Limited ("Mindray", NYSE: MR), a leading developer,
manufacturer and marketer of medical devices worldwide, announced
today its selected unaudited financial results for the fourth
quarter and full year ended December 31,
2013.
Highlights for Fourth Quarter and Full Year 2013
- Full year net revenues increased 14.5% year-over-year to
$1.2 billion; excluding tax benefits,
full year non-GAAP net income increased 11.8% to $236.6 million.
- China net revenues rose 16.5%
to $551.2 million for the full
year.
- Western European markets achieved more than 20% year-over-year
net revenue growth; certain emerging markets also performed well
delivering double-digit sales increase.
- Reagent revenues continued to climb in the fourth quarter,
contributing 41.4% to the IVD segment, up from 36.9% in the same
period last year.
- Cash conversion cycle[1] was 75 days in the fourth quarter,
improved from 89 days a year ago and 91 days in the previous
quarter, due to better control on receivable collection and
inventory management.
- Introduced a total of 11 new products in 2013, including the
first-generation chemiluminescence immunoassay product, the
CL-2000i, along with several reagents.
- Announced two international acquisitions in 2013 to further
strengthen the company's R&D capability and distribution
channels.
- In the fourth quarter, Mindray's Shenzhen subsidiary was awarded the nationwide
key software enterprise status for the 2013 and 2014 calendar
years.
- Declared dividend of $0.50 per
share.
- Launched a $200 million share
repurchase program in November of 2013 and has bought back
approximately $90 million of
Mindray's American Depositary Shares so far. The company has also
increased the size of this program to $300
million.
"2013 was another fruitful year of great accomplishments. We
delivered double-digit sales and non-GAAP net income growth despite
the challenging environments in some markets. Our strong growth in
Western Europe and some emerging
markets reflected the success of our investments in these regions
over the last few years," commented Mr. Li
Xiting, Mindray's President and Co-Chief Executive Officer.
"In our IVD segment, we were happy with the reagent sales ramp-up.
We also created new business opportunities by launching our first
immunoassay product and acquiring Zonare to step up our high-end
ultrasound capability. The continued dividend payout and the share
repurchase program demonstrated our commitment to returning capital
to our shareholders."
SUMMARY – Fourth Quarter and Year
Ended December 31,
2013
(in $ millions,
except per-share data)
|
Three Months
Ended
|
Year
Ended
|
December
31
|
December
31
|
2013
|
2012
|
%
chg
|
2013
|
2012
|
%
chg
|
Net
Revenues
|
368.4
|
316.1
|
16.5%
|
1,214.0
|
1,060.1
|
14.5%
|
Net Revenues
Generated in China
|
160.4
|
148.1
|
8.3%
|
551.2
|
473.0
|
16.5%
|
Net Revenues
Generated in International Markets
|
208.0
|
168.0
|
23.8%
|
662.8
|
587.1
|
12.9%
|
Gross
Profit
|
205.9
|
182.8
|
12.7%
|
686.6
|
600.7
|
14.3%
|
Non-GAAP Gross
Profit
|
208.0
|
184.8
|
12.6%
|
694.7
|
606.2
|
14.6%
|
Operating
Income
|
54.0
|
59.7
|
-9.6%
|
210.2
|
191.3
|
9.9%
|
Non-GAAP Operating
Income
|
75.8
|
65.8
|
15.1%
|
252.7
|
223.3
|
13.2%
|
EBITDA
|
69.5
|
71.9
|
-3.3%
|
262.9
|
233.3
|
12.7%
|
Net Income
|
75.2
|
55.8
|
34.7%
|
224.8
|
180.2
|
24.7%
|
Non-GAAP Net
Income
|
73.9
|
61.7
|
19.8%
|
264.1
|
211.7
|
24.7%
|
Non-GAAP Net
Income[2] (ex tax benefit)
|
65.7
|
61.7
|
6.6%
|
236.6
|
211.7
|
11.8%
|
Diluted
EPS
|
0.63
|
0.47
|
34.8%
|
1.87
|
1.50
|
24.5%
|
Non-GAAP Diluted
EPS
|
0.62
|
0.51
|
19.9%
|
2.20
|
1.77
|
24.5%
|
Fourth Quarter 2013 Results
Net Revenues
Mindray reported net revenues of $368.4
million for the fourth quarter of 2013, a 16.5% increase
from $316.1 million in the fourth
quarter of 2012.
- Net revenues generated in China increased 8.3% to $160.4 million from $148.1
million in the fourth quarter of 2012.
- Net revenues generated in the international markets increased
23.8% to $208.0 million from
$168.0 million in the fourth quarter
of 2012.
Performance by Segment
Patient Monitoring and Life Support Products: Net
revenues in this segment increased 5.7% to $142.8 million from $135.0
million in the fourth quarter of 2012, contributing 38.8% to
the total net revenues in this quarter.
In-Vitro Diagnostic Products: Net revenues in this
segment increased 15.7% to $95.9
million from $82.9 million in
the fourth quarter of 2012, contributing 26.0% to the total net
revenues in this quarter. Reagents sales represented 41.4% of this
segment's net revenues.
Medical Imaging Systems: Net revenues in this segment
increased 28.7% to $97.0 million from
$75.4 million in the fourth quarter
of 2012, contributing 26.3% to the total net revenues in this
quarter.
Others: Other net revenues increased 43.3% to
$32.7 million from $22.8 million in the fourth quarter of 2012,
contributing 8.9% to the total net revenues in this quarter. Other
net revenues mainly include sales from the orthopedics business,
service revenues from extended warranties, sales of accessories and
repair-service revenues for the post-warranty period.
Gross Profit
Fourth quarter 2013 gross profit was $205.9 million, a 12.7% increase from
$182.8 million in the fourth quarter
of 2012. Non-GAAP gross profit was $208.0
million, a 12.6% increase from $184.8
million in the fourth quarter of 2012. The gross margin was
55.9% compared to 57.8% in the fourth quarter of 2012 and 55.7% in
the third quarter of 2013. Non-GAAP gross margin was 56.5% compared
to 58.5% in the fourth quarter of 2012 and 56.4% in the third
quarter of 2013.
Operating Expenses
Selling expenses for the fourth quarter of 2013 were
$61.4 million, or 16.7% of the total
net revenues, compared to 17.0% in the fourth quarter of 2012 and
19.4% in the third quarter of 2013. Non-GAAP selling expenses were
$59.3 million, or 16.1% of the total
net revenues, compared to 16.2% in the fourth quarter of 2012 and
18.3% in the third quarter of 2013.
General and administrative expenses for the fourth quarter of
2013 were $49.6 million, or 13.5% of
the total net revenues, compared to 11.5% in the fourth quarter of
2012 and 8.6% in the third quarter of 2013. Non-GAAP general and
administrative expenses were $33.6
million, or 9.1% of the total net revenues, compared to
11.4% in the fourth quarter of 2012 and 8.4% in the third quarter
of 2013.
Research and development expenses for the fourth quarter of 2013
were $41.0 million, or 11.1% of the
total net revenues, compared to 10.4% in the fourth quarter of 2012
and 10.7% in the third quarter of 2013. Non-GAAP research and
development expenses were $39.4
million, or 10.7% of the total net revenues, compared to
10.1% in the fourth quarter of 2012 and 10.3% in the third quarter
of 2013.
Total share-based compensation expenses for the fourth quarter
of 2013, which were allocated to cost of goods sold and related
operating expenses, were $3.8
million, compared to $2.7
million in the fourth quarter of 2012 and $2.9 million in the third quarter of 2013.
Operating Income
Operating income in the fourth quarter was $54.0 million, a 9.6% decrease from $59.7 million in the fourth quarter of 2012.
Non-GAAP operating income was $75.8
million, a 15.1% increase from $65.8
million in the fourth quarter of 2012. Operating margin was
14.6% compared to 18.9% in the fourth quarter of 2012 and 17.1% in
the third quarter of 2013. Non-GAAP operating margin was 20.6%
compared to 20.8% in the fourth quarter of 2012 and 19.4% in the
third quarter of 2013.
Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA")
Fourth quarter 2013 EBITDA decreased 3.3% to $69.5 million from $71.9
million in the fourth quarter of 2012.
Net Income
Fourth quarter 2013 net income increased 34.7% to $75.2 million from $55.8
million in the fourth quarter of 2012. Non-GAAP net income
increased 19.8% to $73.9 million from
$61.7 million in the fourth quarter
of 2012. Net margin was 20.4%, compared to 17.7% in the fourth
quarter of 2012 and 10.1% in the third quarter of 2013. Non-GAAP
net margin was 20.0%, compared to 19.5% in the fourth quarter of
2012 and 19.4% in the third quarter of 2013. Fourth quarter 2013
income tax benefit was $11.5 million,
compared to an income tax expense of $9.9
million in the fourth quarter of 2012.
Fourth quarter 2013 basic and diluted earnings per share were
$0.64 and $0.63 respectively, compared to $0.48 and $0.47
respectively in the fourth quarter of 2012. Fourth quarter 2013
basic and diluted non-GAAP earnings per share were both
$0.62, compared to $0.53 and $0.51
respectively in the fourth quarter of 2012. Shares used in the
computation of diluted earnings per share for the fourth quarter of
2013 were approximately 120.0 million.
Other Selected Data
Accounts receivable turnover days were 50 days in the fourth
quarter of 2013, improved from 53 days in the fourth quarter of
2012 and 56 days in the third quarter of 2013. Inventory turnover
days were 79 days in the fourth quarter of 2013, improved from 83
days in the fourth quarter of 2012 and 94 days in the third quarter
of 2013. Accounts payable turnover days were 54 days in the fourth
quarter of 2013, compared to 47 days in the fourth quarter of 2012
and 59 days in the third quarter of 2013. Mindray calculates the
above working capital days using the average of beginning and
ending balances of the quarter.
As of December 31, 2013, the
company had a total of $1.2 billion
in cash and cash equivalents, and short-term investments as
compared to $862.9 million as of
December 31, 2012 and $1.0 billion as of September 30, 2013. Net cash generated from
operating activities and net cash outflow for capital expenditures
for the fourth quarter of 2013 were $122.2
million and $41.9 million
respectively.
As of December 31, 2013 the
company had more than 7,800 employees, including those from the
acquired businesses.
Full Year 2013 Results
Mindray reported net revenues of $1.2
billion for the full year 2013, a 14.5% increase from
$1.1 billion for the full year
2012.
- Net revenues generated in China for the full year 2013 increased 16.5%
to $551.2 million from $473.0 million in 2012.
- Net revenues generated in the international markets for the
full year 2013 increased 12.9% to $662.8
million from $587.1 million in
2012.
Full year 2013 EBITDA increased 12.7% to $262.9 million from $233.3
million in 2012.
Full year 2013 net income increased 24.7% to $224.8 million from $180.2
million in 2012. Non-GAAP net income increased 24.7% to
$264.1 million from $211.7 million in 2012. Net margin was 18.5%
compared to 17.0% in 2012. Non-GAAP net margin was 21.8% compared
to 20.0% in 2012. Excluding tax benefits, non-GAAP net income
increased 11.8% year-over-year to $236.6
million in 2013 and non-GAAP net margin was 19.5% in 2013.
Full year 2013 income tax expense was $14.3
million, representing an effective tax rate of 5.8%,
compared to 17.0% in 2012.
Diluted earnings per share increased 24.5% to $1.87 from $1.50 in
2012. Non-GAAP diluted earnings per share increased 24.5% to
$2.20 from $1.77 in 2012.
Dividend Declaration
Mindray's board of directors has declared a cash dividend on its
ordinary shares of $0.50 per share,
based on the company's net income for the full year 2013. The cash
dividend will be payable on or around April
8, 2014 to shareholders of record as of March 8, 2014. The company has approximately 119
million outstanding ordinary shares as of January 31, 2014.
Business Outlook for Full Year 2014
The company anticipates its full year 2014 net revenues to grow
at least 15% over its full year 2013 net revenues. The company also
expects its full year 2014 non-GAAP net income to remain at a
similar level to its full year 2013 non-GAAP net income. This
guidance excludes the tax benefits related to the nationwide key
software enterprise status and assumes a corporate income tax rate
of 15% applicable to the Shenzhen
subsidiary.
The company expects its capital expenditure for 2014 to be
around $160 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.
"Looking ahead, we forecast our top-line to grow at least 15%
year-over-year. We anticipate Western
Europe and some emerging countries to be the bright spots,
and the market dynamics in China
to gradually improve," commented Mr. Cheng Minghe, Mindray's
Co-Chief Executive Officer and Chief Strategic Officer. "To support
our future growth as a more global and diverse company, we plan to
accelerate our investments on our sales, marketing and distribution
capabilities as well as product innovation this year. We firmly
believe that these investments are crucial to our corporate
strategy and further strengthening our long-term competitive
position. Furthermore, the increasing size of our share buyback
program continues to highlight our confidence in Mindray's growth
prospects."
Conference Call Information
Mindray's management will hold an earnings conference call at
8:00 AM on March 4, 2014 U.S. Eastern Time (9:00 PM on March 4,
2014 Beijing/Hong Kong Time).
Dial-in details for the earnings conference call are as
follows:
International Toll Free:
United States: 866-519-4004
United Kingdom: 080-8234-6646
Hong Kong: 800-930-346
China: 800-819-0121
Local dial-in numbers:
United States:
+1-845-675-0437
United Kingdom:
+44-20-3059-8139
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 March 18,
2014.
U.S. Toll Free: +1-855-452-5696
International: +1-646-254-3697
Passcode: 58931668
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/
Preliminary Results; Use of Non-GAAP Financial
Measures
Mindray's full year 2013 results reported in this release are
unaudited and remain subject to the finalization of the company's
year-end closing, reporting and audit processes.
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 fourth quarter and 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 provision/reversal of 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, income tax
provision/benefits, 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
months and years ended December 31,
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 2014, our assumption of a corporate income tax rate
of 15% applicable to the Shenzhen
subsidiary, anticipated revenue growth driven by Western Europe and some emerging countries,
improving market dynamics in China, planned increased investments in our
sales, marketing and distribution capabilities and our product
innovation in 2014 and the anticipated benefits of those
investments and efforts and other statements under "Business
Outlook for Full Year 2014" 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 on April 8, 2013. Our results of operations for the
fourth quarter of 2013 and the full year ended December 31, 2013 are not necessarily indicative
of our operating results for any future periods. The company has
not completed its audit of 2013 financial statements and the
selected unaudited financial results for the fourth quarter and
full year ended December 31, 2013
announced today are subject to adjustments. The anticipated results
for the fourth quarter and full year ended December 31, 2013 remain subject to the
finalization of the company's year-end closing, reporting and audit
processes, particularly as related to accrued expenses, income
taxes, share-based compensation expenses, and expenses and/or
amortization of intangible assets. 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.
[1]
|
Cash conversion cycle
= accounts receivable turnover day + inventory turnover day –
accounts payable turnover day
|
[2]
|
The non-GAAP net
income excludes the tax benefits of $19.4 million recognized in the
first quarter of 2013 for the calendar years 2011 and 2012 and $7.4
million recognized in the fourth quarter of 2013 for the calendar
year 2013 in relation to the nationwide key software enterprise
status, and the non-GAAP tax benefits of $0.7 million recognized in
the fourth quarter of 2013 in relation to dispute
charges.
|
For investor and media inquiries, please contact:
In China:
Cathy Gao
Mindray Medical International Limited
Tel: +86-755-8188-8023
Email: cathy.gao@mindray.com
In the U.S:
Hoki Luk
Western Bridge, LLC
Tel: +1-646-808-9150
Email: hoki.luk@westernbridgegroup.com
Exhibit
1
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Dollars in
thousands)
|
|
|
|
|
|
As of December 31,
2012
|
|
As of December
31, 2013
|
|
US$
|
|
US$
|
|
(Note
1)
|
|
(unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash equivalents
|
247,859
|
|
385,224
|
Restricted cash (Note 2)
|
7,246
|
|
759
|
Restricted investment (Note 2)
|
14,282
|
|
-
|
Short-term investments
|
615,003
|
|
847,041
|
Accounts receivable, net
|
185,701
|
|
220,228
|
Inventories
|
110,099
|
|
138,808
|
Value added tax receivables
|
7,427
|
|
10,225
|
Other receivables
|
15,704
|
|
21,512
|
Prepayments and deposits
|
11,081
|
|
14,310
|
Deferred tax assets, net
|
6,443
|
|
9,585
|
Total current
assets
|
1,220,845
|
|
1,647,692
|
|
|
|
|
Restricted cash,
non-current (Note 2)
|
-
|
|
17,453
|
Other
assets
|
10,811
|
|
10,755
|
Accounts receivables,
net, non-current
|
2,172
|
|
1,389
|
Advances for purchase
of plant and equipment
|
3,009
|
|
18,919
|
Property, plant and
equipment, net
|
268,010
|
|
324,710
|
Land use rights,
net
|
56,921
|
|
59,463
|
Intangible assets,
net
|
132,334
|
|
181,077
|
Goodwill
|
163,016
|
|
242,476
|
Total
assets
|
1,857,118
|
|
2,503,934
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term bank loans
|
85,100
|
|
260,000
|
Notes payable
|
8,697
|
|
10,945
|
Accounts payable
|
53,244
|
|
93,673
|
Advances from customers
|
17,550
|
|
28,240
|
Salaries payable
|
69,919
|
|
91,220
|
Other payables
|
108,528
|
|
118,951
|
Purchase consideration payable
|
20,354
|
|
20,457
|
Income taxes payable
|
30,305
|
|
20,721
|
Other taxes payable
|
8,894
|
|
12,832
|
Total current
liabilities
|
402,591
|
|
657,039
|
|
|
|
|
Long-term bank
loan
|
50,039
|
|
215,703
|
Other long-term
liabilities
|
4,004
|
|
7,222
|
Deferred tax
liabilities, net
|
23,369
|
|
45,812
|
Total
liabilities
|
480,003
|
|
925,776
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Ordinary shares
|
15
|
|
15
|
Additional paid-in capital
|
514,280
|
|
521,617
|
Retained earnings
|
699,992
|
|
865,676
|
Accumulated other comprehensive income
|
116,556
|
|
150,432
|
Treasury stock at cost
|
-
|
|
(18,792)
|
Total shareholders' equity
|
1,330,843
|
|
1,518,948
|
|
|
|
|
Non-controlling
interests
|
46,272
|
|
59,210
|
Total
equity
|
1,377,115
|
|
1,578,158
|
Total liabilities and
equity
|
1,857,118
|
|
2,503,934
|
|
|
|
|
(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 December 31,
|
|
Year
ended December 31,
|
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(Note
1)
|
|
(unaudited)
|
Net
revenues
|
|
|
|
|
|
|
|
|
-
China
|
|
148,136
|
|
160,401
|
|
472,991
|
|
551,155
|
-
International
|
|
167,980
|
|
208,014
|
|
587,063
|
|
662,832
|
Net
revenues
|
|
316,116
|
|
368,415
|
|
1,060,054
|
|
1,213,987
|
Cost of
revenues
|
|
(133,355)
|
|
(162,516)
|
|
(459,389)
|
|
(527,402)
|
Gross
profit
|
|
182,761
|
|
205,899
|
|
600,665
|
|
686,585
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
(53,688)
|
|
(61,374)
|
|
(188,804)
|
|
(220,589)
|
General and
administrative expenses
|
|
(36,467)
|
|
(49,565)
|
|
(116,228)
|
|
(128,308)
|
Research and
development expenses
|
|
(32,926)
|
|
(40,990)
|
|
(104,302)
|
|
(127,464)
|
Income from
operations
|
|
59,680
|
|
53,970
|
|
191,331
|
|
210,224
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
177
|
|
3,049
|
|
1,619
|
|
3,881
|
Interest
income
|
|
7,949
|
|
10,786
|
|
30,794
|
|
37,047
|
Interest
expense
|
|
(1,028)
|
|
(2,160)
|
|
(4,093)
|
|
(6,345)
|
Income before income
taxes and non-controlling interests
|
|
66,778
|
|
65,645
|
|
219,651
|
|
244,807
|
Income tax
(provision) benefits
|
|
(9,895)
|
|
11,484
|
|
(37,369)
|
|
(14,260)
|
Net income
|
|
56,883
|
|
77,129
|
|
182,282
|
|
230,547
|
Less: Net income
attributable to non-controlling interests
|
|
(1,034)
|
|
(1,913)
|
|
(2,073)
|
|
(5,793)
|
Net income
attributable to the Company
|
|
55,849
|
|
75,216
|
|
180,209
|
|
224,754
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
0.48
|
|
0.64
|
|
1.54
|
|
1.91
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
0.47
|
|
0.63
|
|
1.50
|
|
1.87
|
|
|
|
|
|
|
|
|
|
Shares used in the
computation of:
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
117,358,594
|
|
118,300,560
|
|
116,749,213
|
|
117,705,414
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
120,099,229
|
|
120,006,267
|
|
119,815,004
|
|
120,051,635
|
|
|
|
|
|
|
|
|
|
(1) Financial
information is extracted from the audited financial statements
included in the Company's 2012 annual reports on Form
20-F.
|
Exhibit
3
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31,
|
|
Year
ended December 31,
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
(unaudited)
|
|
(unaudited)
|
|
(Note
1)
|
|
(unaudited)
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
Net
income
|
56,883
|
|
77,129
|
|
182,282
|
|
230,547
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
20,057
|
|
21,189
|
|
69,724
|
|
72,293
|
Changes in
assets and liabilities, net of effects of acquisitions
|
67,953
|
|
23,878
|
|
73,660
|
|
5,078
|
Net cash provided
by operating activities
|
144,893
|
|
122,196
|
|
325,666
|
|
307,918
|
|
|
|
|
|
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
Acquisition cost of subsidiaries, net of cash received
|
(3,064)
|
|
(4,358)
|
|
(34,552)
|
|
(109,376)
|
Capital
expenditure
|
(18,361)
|
|
(41,901)
|
|
(65,605)
|
|
(109,080)
|
(Increase) decrease in restricted cash and restricted
investment
|
(21,528)
|
|
356
|
|
(21,528)
|
|
3,316
|
Proceeds
from sale of short-term investments
|
-
|
|
61,088
|
|
144,395
|
|
652,896
|
Increase
in short-term investments and changes in other investing
activities
|
(19,727)
|
|
(68,152)
|
|
(255,255)
|
|
(862,297)
|
Net cash used in
investing activities
|
(62,680)
|
|
(52,967)
|
|
(232,545)
|
|
(424,541)
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
Repayment of bank loans
|
(2,475)
|
|
-
|
|
(2,475)
|
|
(35,000)
|
Proceeds
from bank loans, net of costs
|
-
|
|
156,715
|
|
52,000
|
|
371,715
|
Dividend
paid
|
-
|
|
-
|
|
(46,401)
|
|
(59,070)
|
Proceeds
from exercise of options
|
1,964
|
|
491
|
|
24,593
|
|
16,091
|
Repurchases of common shares
|
-
|
|
(42,369)
|
|
-
|
|
(42,369)
|
Cash
contribution from non-controlling interest
|
-
|
|
-
|
|
506
|
|
-
|
Net cash (used in)
provided by financing activities
|
(511)
|
|
114,837
|
|
28,223
|
|
251,367
|
|
|
|
|
|
|
|
|
Net increase in
cash and cash equivalents
|
81,702
|
|
184,066
|
|
121,344
|
|
134,744
|
Cash and cash
equivalents, beginning of period
|
164,499
|
|
200,018
|
|
124,311
|
|
247,859
|
Effect of exchange
rate changes on cash
|
1,658
|
|
1,140
|
|
2,204
|
|
2,621
|
Cash and cash
equivalents, end of period
|
247,859
|
|
385,224
|
|
247,859
|
|
385,224
|
|
|
|
|
|
|
|
|
(1) Financial
information is extracted from the audited financial statements
included in the Company's 2012 annual reports on Form
20-F.
|
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 December 31,
|
|
Year
ended December 31,
|
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to the Company
|
|
61,658
|
|
73,853
|
|
211,687
|
|
264,073
|
Non-GAAP net
margin
|
|
19.5%
|
|
20.0%
|
|
20.0%
|
|
21.8%
|
Amortization of
acquired intangible assets
|
|
(3,404)
|
|
(3,272)
|
|
(8,298)
|
|
(13,024)
|
Reversal (provision)
of withholding tax for intra-group fund transfer
|
-
|
|
20,804
|
|
-
|
|
-
|
Deferred tax impact
related to acquired intangible assets
|
|
327
|
|
895
|
|
504
|
|
1,663
|
Dispute charges, net
of related tax impact
|
|
-
|
|
(13,275)
|
|
(9,700)
|
|
(13,275)
|
Share-based
compensation
|
|
(2,732)
|
|
(3,789)
|
|
(13,984)
|
|
(14,683)
|
GAAP net income
attributable to the Company
|
|
55,849
|
|
75,216
|
|
180,209
|
|
224,754
|
GAAP net
margin
|
|
17.7%
|
|
20.4%
|
|
17.0%
|
|
18.5%
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic
earnings per share
|
|
0.53
|
|
0.62
|
|
1.81
|
|
2.24
|
Non-GAAP diluted
earnings per share
|
|
0.51
|
|
0.62
|
|
1.77
|
|
2.20
|
|
|
|
|
|
|
|
|
|
GAAP basic earnings
per share
|
|
0.48
|
|
0.64
|
|
1.54
|
|
1.91
|
GAAP diluted earnings
per share
|
|
0.47
|
|
0.63
|
|
1.50
|
|
1.87
|
|
|
|
|
|
|
|
|
|
Shares used in
computation of:
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
117,358,594
|
|
118,300,560
|
|
116,749,213
|
|
117,705,414
|
Diluted
earnings per share
|
|
120,099,229
|
|
120,006,267
|
|
119,815,004
|
|
120,051,635
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
|
65,816
|
|
75,781
|
|
223,313
|
|
252,681
|
Non-GAAP operating
margin
|
|
20.8%
|
|
20.6%
|
|
21.1%
|
|
20.8%
|
Amortization of
acquired intangible assets
|
|
(3,404)
|
|
(3,272)
|
|
(8,298)
|
|
(13,024)
|
Dispute
charges
|
|
-
|
|
(14,750)
|
|
(9,700)
|
|
(14,750)
|
Share-based
compensation
|
|
(2,732)
|
|
(3,789)
|
|
(13,984)
|
|
(14,683)
|
GAAP operating
income
|
|
59,680
|
|
53,970
|
|
191,331
|
|
210,224
|
GAAP operating
margin
|
|
18.9%
|
|
14.6%
|
|
18.0%
|
|
17.3%
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross
profit
|
|
184,799
|
|
208,048
|
|
606,214
|
|
694,689
|
Non-GAAP gross
margin
|
|
58.5%
|
|
56.5%
|
|
57.2%
|
|
57.2%
|
Amortization of
acquired intangible assets
|
|
(1,849)
|
|
(1,937)
|
|
(4,738)
|
|
(7,352)
|
Share-based
compensation
|
|
(189)
|
|
(212)
|
|
(811)
|
|
(752)
|
GAAP gross
profit
|
|
182,761
|
|
205,899
|
|
600,665
|
|
686,585
|
GAAP gross
margin
|
|
57.8%
|
|
55.9%
|
|
56.7%
|
|
56.6%
|
|
|
|
|
|
|
|
|
|
Non-GAAP selling
expenses
|
|
(51,165)
|
|
(59,293)
|
|
(180,788)
|
|
(210,572)
|
Non-GAAP as % of
total revenues
|
|
16.2%
|
|
16.1%
|
|
17.1%
|
|
17.3%
|
Amortization of
acquired intangible assets
|
|
(1,555)
|
|
(1,335)
|
|
(3,560)
|
|
(5,672)
|
Share-based
compensation
|
|
(968)
|
|
(746)
|
|
(4,456)
|
|
(4,345)
|
GAAP selling
expenses
|
|
(53,688)
|
|
(61,374)
|
|
(188,804)
|
|
(220,589)
|
GAAP as % of total
revenues
|
|
17.0%
|
|
16.7%
|
|
17.8%
|
|
18.2%
|
|
|
|
|
|
|
|
|
|
Non-GAAP general
and administrative expenses
|
|
(35,966)
|
|
(33,551)
|
|
(102,119)
|
|
(108,739)
|
Non-GAAP as % of
total revenues
|
|
11.4%
|
|
9.1%
|
|
9.6%
|
|
9.0%
|
Dispute
charges
|
|
-
|
|
(14,750)
|
|
(9,700)
|
|
(14,750)
|
Share-based
compensation
|
|
(501)
|
|
(1,264)
|
|
(4,409)
|
|
(4,819)
|
GAAP general and
administrative expenses
|
|
(36,467)
|
|
(49,565)
|
|
(116,228)
|
|
(128,308)
|
GAAP as % of total
revenues
|
|
11.5%
|
|
13.5%
|
|
11.0%
|
|
10.6%
|
|
|
|
|
|
|
|
|
|
Non-GAAP research
and development expenses
|
|
(31,852)
|
|
(39,423)
|
|
(99,995)
|
|
(122,697)
|
Non-GAAP as % of
total revenues
|
|
10.1%
|
|
10.7%
|
|
9.4%
|
|
10.1%
|
Share-based
compensation
|
|
(1,074)
|
|
(1,567)
|
|
(4,307)
|
|
(4,767)
|
GAAP research and
development expenses
|
|
(32,926)
|
|
(40,990)
|
|
(104,302)
|
|
(127,464)
|
GAAP as % of total
revenues
|
|
10.4%
|
|
11.1%
|
|
9.8%
|
|
10.5%
|
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 December 31,
|
|
Year
ended December 31,
|
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to the Company
|
$
|
55,849
|
|
75,216
|
|
180,209
|
|
224,754
|
Interest income
|
|
(7,949)
|
|
(10,786)
|
|
(30,794)
|
|
(37,047)
|
Interest expense
|
|
1,028
|
|
2,160
|
|
4,093
|
|
6,345
|
Income tax provision (benefits)
|
|
9,895
|
|
(11,484)
|
|
37,369
|
|
14,260
|
|
|
|
|
|
|
|
|
|
Earnings before
interest and taxes ("EBIT")
|
|
58,823
|
|
55,106
|
|
190,877
|
|
208,312
|
Depreciation
|
|
7,445
|
|
8,985
|
|
28,043
|
|
33,499
|
Amortization
|
|
5,606
|
|
5,430
|
|
14,361
|
|
21,079
|
|
|
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
("EBITDA")
|
71,874
|
|
69,521
|
|
233,281
|
|
262,890
|
SOURCE Mindray Medical International Limited