SHENZHEN, China, May 5, 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 first
quarter ended March 31, 2014.
Highlights for First Quarter 2014
- Net revenues increased 9.4% year-over-year to $264.8 million.
- International sales were $148.9
million, with Western
Europe achieving double-digit sales growth.
- China sales totaled
$115.8 million, representing 43.7% of
the company's total net revenues.
- Reagent sales contributed 38.1% to the IVD segment, up from
36.4% in the same period last year.
- Cash conversion cycle was 105 days in the first quarter,
improved from 110 days a year ago.
- Launched several new products, including the M9, a premium
portable color ultrasound system, and the CAL 8000, a cellular
analysis line. These products have received positive customer
feedbacks at the recent CMEF trade show.
- Since the launch of its share repurchase program in November of
2013, the company has bought back approximately $110 million of Mindray's American Depositary
Shares so far.
"In the first quarter, the dynamics in various key markets
continued to be challenging for our business. Nevertheless, we are
pleased with our Western Europe
performance, as well as our IVD reagent sales year-over-year
increase," commented Mr. Li Xiting,
Mindray's President and Co-Chief Executive Officer. "We are also
excited about the launch of our first premium portable color
ultrasound system, the M9, as well as the cellular analysis line,
the CAL 8000, which demonstrate our capabilities of consistent
innovation and our focus on making better healthcare solutions for
our customers. Overall, management remains committed to delivering
our financial goals for the year."
SUMMARY – First Quarter 2014
(in millions of US
dollars, except per-share data)
|
Three Months
Ended
|
March
31
|
2014
|
2013
|
%
chg
|
Net
Revenues
|
264.8
|
242.1
|
9.4%
|
Net Revenues
Generated in China
|
115.8
|
111.3
|
4.0%
|
Net Revenues
Generated in International
Markets
|
148.9
|
130.8
|
13.9%
|
Gross
Profit
|
146.0
|
139.1
|
5.0%
|
Non-GAAP Gross
Profit
|
148.1
|
140.7
|
5.3%
|
Operating
Income
|
31.3
|
39.0
|
-19.8%
|
Non-GAAP Operating
Income
|
42.3
|
46.3
|
-8.7%
|
EBITDA
|
46.0
|
49.8
|
-7.8%
|
Net
Income[1]
|
35.6
|
57.4
|
-37.9%
|
Non-GAAP Net
Income[1]
|
46.1
|
64.6
|
-28.7%
|
Non-GAAP Net Income
(ex tax benefit)[2]
|
44.7
|
45.2
|
-1.2%
|
Diluted
EPS
|
0.30
|
0.48
|
-36.7%
|
Non-GAAP Diluted
EPS
|
0.39
|
0.53
|
-27.2%
|
[1]
|
For this press
release, net income and non-GAAP net income refers to GAAP net
income attributable to the Company and Non-GAAP net income
attributable to the Company as stated in exhibit below,
respectively.
|
[2]
|
The non-GAAP net
income (ex tax benefit) excludes the tax benefits of $19.4 million
recognized in the first quarter of 2013 for the calendar years 2011
and 2012 and $1.4 million recognized in the first quarter of 2014
for the first quarter of calendar year 2014 in relation to the
nationwide key software enterprise status.
|
First Quarter 2014 Results
Net Revenues
Mindray reported net revenues of $264.8
million for the first quarter of 2014, a 9.4% increase from
the first quarter of 2013.
- Net revenues generated in China increased 4.0% year-over-year to
$115.8 million.
- Net revenues generated in the international markets increased
13.9% year-over-year to $148.9
million.
Performance by Segment
Patient Monitoring and Life Support Products: Net
revenues in this segment decreased 1.4% from the first quarter of
2013 to $98.0 million, contributing
37.0% to the total net revenues in this quarter.
In-Vitro Diagnostic Products: Net revenues in this
segment increased 6.8% year-over-year to $73.0 million, contributing 27.6% to the total
net revenues in this quarter. Reagents sales represented 38.1% of
this segment's net revenues.
Medical Imaging Systems: Net revenues in this segment
increased 27.1% from a year ago to $67.6
million, contributing 25.5% to the total net revenues in
this quarter.
Others: Others net revenues increased 23.6% from the
first quarter of 2013 to $26.2
million, contributing 9.9% to the total net revenues in this
quarter. Others 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
First quarter 2014 gross profit was $146.0 million, a 5.0% increase from the first
quarter of 2013. Non-GAAP gross profit was $148.1 million, a 5.3% increase from the first
quarter of 2013. The gross margin was 55.1% compared to 57.4% in
the first quarter of 2013 and 55.9% in the fourth quarter of 2013.
Non-GAAP gross margin was 55.9% compared to 58.1% in the first
quarter of 2013 and 56.5% in the fourth quarter of 2013.
Operating Expenses
Selling expenses for the first quarter of 2014 were $54.8 million, or 20.7% of the total net
revenues, compared to 19.5% in the first quarter of 2013 and 16.7%
in the fourth quarter of 2013. Non-GAAP selling expenses were
$52.2 million, or 19.7% of the total
net revenues, compared to 18.5% in the first quarter of 2013 and
16.1% in the fourth quarter of 2013.
General and administrative expenses for the first quarter of
2014 were $29.8 million, or 11.3% of
the total net revenues, compared to 11.0% in the first quarter of
2013 and 13.5% in the fourth quarter of 2013. Non-GAAP general and
administrative expenses were $24.6
million, or 9.3% of the total net revenues, compared to
10.0% in the first quarter of 2013 and 9.1% in the fourth quarter
of 2013.
Research and development expenses for the first quarter of 2014
were $30.1 million, or 11.4% of the
total net revenues, compared to 10.9% in the first quarter of 2013
and 11.1% in the fourth quarter of 2013. Non-GAAP research and
development expenses were $29.1
million, or 11.0% of the total net revenues, compared to
10.5% in the first quarter of 2013 and 10.7% in the fourth quarter
of 2013.
Total share-based compensation expenses for the first quarter of
2014, which were allocated to cost of revenues and related
operating expenses, were $7.6
million, compared to $4.8
million in the first quarter of 2013 and $3.8 million in the fourth quarter of 2013.
Operating Income
Operating income in the first quarter of 2014 was $31.3 million, a 19.8% decrease from the first
quarter of 2013. Non-GAAP operating income was $42.3 million, an 8.7% decrease from the first
quarter of 2013. Operating margin was 11.8% compared to 16.1% in
the first quarter of 2013 and 14.6% in the fourth quarter of 2013.
Non-GAAP operating margin was 16.0% compared to 19.1% in the first
quarter of 2013 and 20.6% in the fourth quarter of 2013.
Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA")
First quarter 2014 EBITDA decreased 7.8% year-over-year to
$46.0 million.
Net Income
First quarter 2014 net income decreased 37.9% from a year ago to
$35.6 million. Non-GAAP net income
declined 28.7% from the first quarter of 2013 to $46.1 million. Net margin was 13.5%, compared to
23.7% in the first quarter of 2013 and 20.4% in the fourth quarter
of 2013. Non-GAAP net margin was 17.4%, compared to 26.7% in the
first quarter of 2013 and 20.0% in the fourth quarter of 2013.
Excluding the tax benefits related to the nationwide key software
enterprise status, first quarter 2014 non-GAAP net income decreased
1.2% year-over-year to $44.7 million
and non-GAAP net margin was 16.9%, compared to 18.7% in the first
quarter of 2013 and 17.8% in the fourth quarter of 2013. First
quarter 2014 income tax expense was $4.5
million, compared to an income tax benefit of $12.9 million in the first quarter of 2013.
First quarter 2014 basic and diluted earnings per share were
both $0.30, compared to $0.49 and $0.48
respectively in the first quarter of 2013. First quarter 2014 basic
and diluted non-GAAP earnings per share were both $0.39, compared to $0.55 and $0.53
respectively in the first quarter of 2013. Shares used in the
computation of diluted earnings per share for the first quarter of
2014 were approximately 118.3 million.
Other Selected Data
Accounts receivable turnover days were 69 days in the first
quarter of 2014, compared to 66 days in the first quarter of 2013
and 50 days in the fourth quarter of 2013. Inventory turnover days
were 114 days in the first quarter of 2014, compared to 103 days in
the first quarter of 2013 and 79 days in the fourth quarter of
2013. Accounts payable turnover days were 78 days in the first
quarter of 2014, compared to 59 days in the first quarter of 2013
and 54 days in the fourth quarter of 2013. Mindray calculates the
above working capital days using the average of beginning and
ending balances of the quarter.
As of March 31, 2014, the company
had a total of $1.0 billion in cash
and cash equivalents, and short-term investments as compared to
$0.9 billion as of March 31, 2013 and $1.2
billion as of December 31,
2013. Net cash generated from operating activities and net
cash outflow for capital expenditures for the first quarter of 2014
were $19.7 million and $27.9 million respectively.
As of March 31, 2014, the company
had more than 7,900 employees, including those from the acquired
businesses.
Business Outlook for Full Year 2014
The company continues to expect its full year 2014 net revenues
to grow at least 15% over its full year 2013 net revenues. The
company also continues to anticipate 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 full year 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.
Management Change
Separately, the company announced that Mr. Jie Liu has resigned from his Chief Operating
Officer position for personal reasons, effective immediately. Mr.
Wang Jianxin, Mindray's Chief Administrative Officer, will now be
the Chief Operating Officer and will focus on research and
development, China sales and
marketing, manufacturing and supply chain management as well as
some other operations. In addition, Mr. Minghe Cheng, Mindray's Co-Chief Executive
Officer and Chief Strategic Officer, will oversee international
sales and marketing and the North
America operations, which were part of Mr. Liu's previous
responsibilities.
"At this time, we are maintaining our financial guidance for
2014. We still expect Western
Europe and some emerging countries to be the growth drivers,
and the operating environment in China to gradually improve," commented Mr.
Cheng Minghe, Mindray's Co-Chief Executive Officer and Chief
Strategic Officer. "As we discussed earlier this year, we will
continue to execute our investment strategy on strengthening our
sales, marketing and distribution capabilities as well as product
innovation, to further grow Mindray and improve our long-term
position in the global marketplace. Last but not least, management
will keep on exploring M&As and other collaboration
opportunities."
Conference Call Information
Mindray's management will hold an earnings conference call at
8:00 AM on May
6, 2014 U.S. Eastern Time (8:00
PM on May 6, 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 May 20,
2014.
U.S. Toll Free: +1-855-452-5696
International: +1-646-254-3697
Passcode: 31694248
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, research and development 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 for the first quarter of 2014. 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 first quarter 2014 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, 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 ended March 31, 2013 and 2014,
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, statements that overall, management remains committed
to delivering our financial goals for 2014, that we still expect
Western Europe and some emerging
countries to be the growth drivers and the operating environment in
China to gradually improve, that
we will keep on executing our investment strategy on strengthening
our sales, marketing and distribution capabilities as well as
product innovation, to further grow Mindray and improve our
long-term position in the global marketplace, that management will
continue to explore M&As and other collaboration opportunities
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; applicable government policies and
regulations; our ability to satisfy the requirements imposed by
relevant regulatory bodies; 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 28, 2014.
Our results of operations for the first quarter of 2014 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 diagnostics, 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
|
(In thousands of
US dollars)
|
|
|
|
|
|
|
|
|
|
As of December
31, 2013
|
|
As of March 31,
2014
|
|
|
US$
|
|
US$
|
|
|
(Note
1)
|
|
(unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents (Note 2)
|
385,224
|
|
419,820
|
|
Restricted cash (Note
3)
|
759
|
|
14,632
|
|
Short-term
investments (Note 2)
|
847,041
|
|
611,027
|
|
Accounts receivable,
net
|
220,228
|
|
182,226
|
|
Inventories
|
138,808
|
|
158,613
|
|
Value added tax
receivables
|
10,225
|
|
14,208
|
|
Other
receivables
|
21,512
|
|
21,682
|
|
Prepayments and
deposits
|
14,310
|
|
17,340
|
|
Deferred tax
assets,net
|
9,585
|
|
10,429
|
Total current
assets
|
1,647,692
|
|
1,449,977
|
|
|
|
|
|
Restricted cash,
non-current (Note 3)
|
17,453
|
|
10,035
|
Other
assets
|
10,755
|
|
10,635
|
Accounts receivables,
net, non-current
|
1,389
|
|
573
|
Advances for purchase
of plant and equipment
|
18,919
|
|
20,544
|
Property, plant and
equipment, net
|
324,710
|
|
338,199
|
Land use rights,
net
|
59,463
|
|
58,875
|
Intangible assets,
net
|
181,077
|
|
176,446
|
Goodwill
|
242,476
|
|
253,097
|
Total
assets
|
2,503,934
|
|
2,318,381
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term bank
loans
|
260,000
|
|
210,000
|
|
Notes
payable
|
10,945
|
|
10,260
|
|
Accounts
payable
|
93,673
|
|
87,697
|
|
Advances from
customers
|
28,240
|
|
31,456
|
|
Salaries
payable
|
91,220
|
|
48,330
|
|
Other payables and
current liabilities
|
118,951
|
|
116,351
|
|
Purchase
consideration payable
|
20,457
|
|
29,412
|
|
Income taxes
payable
|
20,721
|
|
23,540
|
|
Other taxes
payable
|
12,832
|
|
7,233
|
Total current
liabilities
|
657,039
|
|
564,279
|
|
|
|
|
|
Long-term bank
loans
|
215,703
|
|
215,247
|
Other long-term
liabilities
|
7,222
|
|
9,090
|
Deferred tax
liabilities, net
|
45,812
|
|
47,672
|
Total
liabilities
|
925,776
|
|
836,288
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Ordinary
shares
|
15
|
|
15
|
Additional paid-in
capital
|
521,617
|
|
451,410
|
Retained
earnings
|
865,676
|
|
842,603
|
Accumulated other
comprehensive income
|
150,432
|
|
136,128
|
Treasury stock at
cost
|
(18,792)
|
|
(8,760)
|
Total shareholders'
equity
|
1,518,948
|
|
1,421,396
|
|
|
|
|
|
Non-controlling
interests
|
59,210
|
|
60,697
|
Total
equity
|
1,578,158
|
|
1,482,093
|
Total liabilities and
equity
|
2,503,934
|
|
2,318,381
|
|
|
|
|
|
(1) Financial
information is extracted from the audited financial statements
included in the Company's 2013 annual report on Form
20-F.
|
(2) In respect of
cash and cash equivalents and short-term investments, there is an
aggregate compensating balance arrangement of $241,500 and $189,000
as of December 31, 2013 and March 31, 2014, respectively in
relation to the drawings of certain bank loans.
|
(3) Restricted cash
are mainly those purchase consideration in connection with our
acquisitions being held on escrow accounts.
|
Exhibit
2
|
|
|
|
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands of
US dollars, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Three
months ended March 31,
|
|
|
|
|
2013
|
|
2014
|
|
|
|
|
US$
|
|
US$
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Net
revenues
|
|
|
|
|
|
|
-
China
|
|
111,332
|
|
115,828
|
|
|
-
International
|
|
130,771
|
|
148,943
|
|
|
Net
revenues
|
|
242,103
|
|
264,771
|
|
|
Cost of
revenues
|
|
(103,038)
|
|
(118,751)
|
|
|
Gross
profit
|
|
139,065
|
|
146,020
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
(47,157)
|
|
(54,796)
|
|
|
General and
administrative expenses
|
|
(26,584)
|
|
(29,813)
|
|
|
Research and
development expenses
|
|
(26,328)
|
|
(30,143)
|
|
|
Income from
operations
|
|
38,996
|
|
31,268
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
78
|
|
1,809
|
|
|
Interest
income
|
|
7,687
|
|
10,779
|
|
|
Interest
expense
|
|
(972)
|
|
(2,395)
|
|
|
Income before income
taxes and non-controlling interests
|
|
45,789
|
|
41,461
|
|
|
Income tax benefits
(provision)
|
|
12,934
|
|
(4,500)
|
|
|
Net
income
|
|
58,723
|
|
36,961
|
|
|
Less: Net income
attributable to non-controlling interests
|
|
(1,299)
|
|
(1,323)
|
|
|
Net income
attributable to the Company
|
|
57,424
|
|
35,638
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
0.49
|
|
0.30
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
0.48
|
|
0.30
|
|
|
|
|
|
|
|
|
|
Shares used in the
computation of:
|
|
|
|
|
|
|
Basic earnings per
share
|
|
118,181,156
|
|
116,854,637
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
120,724,275
|
|
118,270,656
|
|
|
|
|
|
|
|
|
Exhibit
3
|
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands of
US dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended March 31,
|
|
|
|
2013
|
|
2014
|
|
|
|
US$
|
|
US$
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
Net
income
|
58,723
|
|
36,961
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
15,310
|
|
27,864
|
|
|
Changes in
assets and liabilities, net of effects of acquisitions
|
(31,643)
|
|
(45,159)
|
|
Net cash provided
by operating activities
|
42,390
|
|
19,666
|
|
|
|
|
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
Acquisition cost of subsidiaries, net of cash
received
|
(3,839)
|
|
(2,206)
|
|
|
Capital
expenditures
|
(20,042)
|
|
(27,875)
|
|
|
Decrease
(Increase) in restricted cash and restricted
investment
|
5,399
|
|
(6,455)
|
|
|
Proceeds
from sale of short-term investments
|
109,261
|
|
241,964
|
|
|
Increase
in short-term investments and changes in other investing
activities
|
(191,805)
|
|
(12,965)
|
|
Net cash (used in)
provided by investing activities
|
(101,026)
|
|
192,463
|
|
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
Repayment of bank loan
|
-
|
|
(50,000)
|
|
|
Proceeds
from bank loans
|
60,000
|
|
-
|
|
|
Dividend
paid
|
(59,070)
|
|
(58,711)
|
|
|
Proceeds
from exercise of options
|
6,754
|
|
345
|
|
|
Repurchase of ordinary American depositary shares
|
-
|
|
(68,029)
|
|
|
Cash
paid to acquire a non-controlling interest
|
|
|
(445)
|
|
|
Cash
contribution from a non-controlling interest
|
-
|
|
239
|
|
Net cash provided
by (used in) financing activities
|
7,684
|
|
(176,601)
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
(50,952)
|
|
35,528
|
|
|
Cash and cash
equivalents, beginning of period
|
247,859
|
|
385,224
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(1,163)
|
|
(932)
|
|
Cash and cash
equivalents, end of period
|
195,744
|
|
419,820
|
|
|
|
|
|
|
|
Exhibit
4
|
|
|
|
|
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
|
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE
NEAREST
COMPARABLE GAAP
MEASURES
|
|
|
(In thousands of
US dollars, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended March 31,
|
|
|
|
|
2013
|
|
2014
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
US$
|
|
US$
|
|
|
Non-GAAP net
income attributable to the Company
|
|
64,570
|
|
46,054
|
|
|
Non-GAAP net
margin
|
|
26.7%
|
|
17.4%
|
|
|
Amortization of
acquired intangible assets
|
|
(2,602)
|
|
(3,447)
|
|
|
Deferred tax impact
related to acquired intangible assets
|
|
206
|
|
615
|
|
|
Share-based
compensation
|
|
(4,750)
|
|
(7,584)
|
|
|
GAAP net income
attributable to the Company
|
|
57,424
|
|
35,638
|
|
|
GAAP net
margin
|
|
23.7%
|
|
13.5%
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic
earnings per share
|
|
0.55
|
|
0.39
|
|
|
Non-GAAP diluted
earnings per share
|
|
0.53
|
|
0.39
|
|
|
|
|
|
|
|
|
|
GAAP basic earnings
per share
|
|
0.49
|
|
0.30
|
|
|
GAAP diluted earnings
per share
|
|
0.48
|
|
0.30
|
|
|
|
|
|
|
|
|
|
Shares used in
computation of:
|
|
|
|
|
|
|
Basic earnings
per share
|
|
118,181,156
|
|
116,854,637
|
|
|
Diluted
earnings per share
|
|
120,724,275
|
|
118,270,656
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
|
46,348
|
|
42,299
|
|
|
Non-GAAP operating
margin
|
|
19.1%
|
|
16.0%
|
|
|
Amortization of
acquired intangible assets
|
|
(2,602)
|
|
(3,447)
|
|
|
Share-based
compensation
|
|
(4,750)
|
|
(7,584)
|
|
|
GAAP operating
income
|
|
38,996
|
|
31,268
|
|
|
GAAP operating
margin
|
|
16.1%
|
|
11.8%
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross
profit
|
|
140,714
|
|
148,124
|
|
|
Non-GAAP gross
margin
|
|
58.1%
|
|
55.9%
|
|
|
Amortization of
acquired intangible assets
|
|
(1,467)
|
|
(1,931)
|
|
|
Share-based
compensation
|
|
(182)
|
|
(173)
|
|
|
GAAP gross
profit
|
|
139,065
|
|
146,020
|
|
|
GAAP gross
margin
|
|
57.4%
|
|
55.1%
|
|
|
|
|
|
|
|
|
|
Non-GAAP selling
expenses
|
|
(44,906)
|
|
(52,174)
|
|
|
Non-GAAP as % of
total net revenues
|
|
18.5%
|
|
19.7%
|
|
|
Amortization of
acquired intangible assets
|
|
(1,135)
|
|
(1,516)
|
|
|
Share-based
compensation
|
|
(1,116)
|
|
(1,106)
|
|
|
GAAP selling
expenses
|
|
(47,157)
|
|
(54,796)
|
|
|
GAAP as % of total
net revenues
|
|
19.5%
|
|
20.7%
|
|
|
|
|
|
|
|
|
|
Non-GAAP general
and administrative expenses
|
|
(24,158)
|
|
(24,562)
|
|
|
Non-GAAP as % of
total net revenues
|
|
10.0%
|
|
9.3%
|
|
|
Share-based
compensation
|
|
(2,426)
|
|
(5,251)
|
|
|
GAAP general and
administrative expenses
|
|
(26,584)
|
|
(29,813)
|
|
|
GAAP as % of total
net revenues
|
|
11.0%
|
|
11.3%
|
|
|
|
|
|
|
|
|
|
Non-GAAP research
and development expenses
|
|
(25,302)
|
|
(29,089)
|
|
|
Non-GAAP as % of
total net revenues
|
|
10.5%
|
|
11.0%
|
|
|
Share-based
compensation
|
|
(1,026)
|
|
(1,054)
|
|
|
GAAP research and
development expenses
|
|
(26,328)
|
|
(30,143)
|
|
|
GAAP as % of total
net revenues
|
|
10.9%
|
|
11.4%
|
|
|
|
|
|
|
|
|
Exhibit
5
|
|
|
|
|
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
|
|
|
|
|
RECONCILIATION OF
GAAP NET INCOME TO EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION
AND
AMORTIZATION
|
|
(In thousands of
US dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended March 31,
|
|
|
|
|
2013
|
|
2014
|
|
|
|
|
US$
|
|
US$
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
GAAP net income
attributable to the Company
|
$
|
57,424
|
|
35,638
|
|
|
Interest
income
|
|
(7,687)
|
|
(10,779)
|
|
|
Interest
expense
|
|
972
|
|
2,395
|
|
|
Income tax (benefits)
provision
|
|
(12,934)
|
|
4,500
|
|
|
|
|
|
|
|
|
Earnings before
interest and taxes ("EBIT")
|
|
37,775
|
|
31,754
|
|
|
Depreciation
|
|
7,776
|
|
8,628
|
|
|
Amortization
|
|
4,277
|
|
5,579
|
|
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
("EBITDA")
|
|
49,828
|
|
45,961
|
|
|
|
|
|
|
|
|
SOURCE Mindray Medical International Limited