VIASYS Healthcare Inc. (NYSE: VAS), a leading healthcare technology
company, today reported results for the quarter ended March 31,
2007. All information is inclusive of the results of all
acquisitions unless otherwise indicated. Revenues for the first
quarter of 2007 increased to $161.4 million compared to $135.5
million in the comparable quarter last year. Excluding the impact
of special items(1), adjusted operating income increased to $13.6
million compared to $9.4 million in the same period last year, and
net income increased to $7.7 million, or $.23 per diluted share,
compared to $5.5 million, or $.17 per diluted share, for the same
period last year. Foreign currency translation had a positive
impact of 2.5% on revenues for the quarter. Including the impact of
special items(1), an operating loss of $1.1 million was incurred
compared to operating income of $9.4 million in the same period
last year, and the net loss was $1.2 million, or a loss of $.04 per
diluted share, compared to net income of $5.5 million, or $.17 per
diluted share, for the same period last year. Chairman, President
and CEO Comments Randy Thurman, Chairman, President and CEO,
commented on VIASYS� performance: �We are pleased to announce that
for the 10th sequential quarter our adjusted operating results have
achieved or exceeded our expectations. Our performance reflects the
continued strong global demand for VIASYS� products, the
operational leverage provided by our 2006 restructuring and the
successful integration of our recent acquisitions. As a result, we
are reiterating our previously stated guidance for earnings per
diluted share in the range of $1.29 to $1.33 for 2007 and 20 to 25%
earnings growth for 2008. In keeping with prior practice, these
amounts exclude the impact of special items and acquisitions.
�Total revenue in the first quarter exceeded the prior year�s
quarter by 19% while adjusted net income increased by over 40%.
Strong revenue performance in our core business resulted in growth
of 16% which was complemented by the contribution from our
strategic acquisitions in our sleep division which accounted for
the remaining 3% of revenue growth. �We also experienced strong
revenue growth in both our domestic and international markets.
Domestically, growth of 23% was driven by strong sales of our
ventilator products, including the shipment of our LTV-1200
ventilators to the California Department of Homeland Security, as
well as our sleep business. Internationally, growth of 14% resulted
from increased sales in Respiratory Care, particularly of our
ventilators, and in NeuroCare, due to neurophysiology and
consumable products. �I�d like to further comment on a few specific
areas of our business. In NeuroCare, we continue to be encouraged
by our operating results. Adjusted operating income grew by nearly
50%, reflecting the benefits of the 2006 restructuring. Although
revenue was essentially flat over 2006, this can largely be
attributed to unusually large vascular sales in the prior year. In
addition, we anticipate revenue growth as a result of the release
of new products in the second quarter. �In Orthopedics, we had
previously expressed optimism that the industry dynamics, which had
depressed revenue and operating income growth in 2006 would start
to turn around in 2007. We are pleased that in the first quarter we
believe we are seeing this begin. With the first quarter of 2007
revenue and operating income exceeding the fourth quarter of 2006,
we experienced our first consecutive quarter increase in over a
year. In addition, we resolved a previously disclosed legal matter
and recorded a charge of $7.5 million, net of insurance recoveries.
�In the first quarter, we announced our intention to implement a
$13 to $16 million strategic restructuring plan, specifically
related to the consolidation and further integration of eight
acquisitions that we completed since the beginning of 2005. The
restructuring plan was launched at the end of the quarter and is
proceeding as expected. We remain confident that the costs
associated with this plan will be largely recovered by the end of
next year. �Furthermore, we remain very pleased with the continued
promise of our R&D pipeline and believe that we will be seeing
exciting results from these efforts later this year and into the
early part of 2008. These efforts will enhance our leadership
positions across our business units.� In conclusion, Mr. Thurman
further commented on the outlook for VIASYS: �We remain confident
in the positive outlook for VIASYS in 2007 and beyond. We believe
the continued strong demand for our products is indicative of
customer recognition of our superior product and service
performance. A good example of this is in our ventilator business,
which we believe has made us the fastest growing critical care
company for several years in a row. We continue to leverage our
strong balance sheet and cash flow to invest in R&D projects
and strategic acquisitions that we expect will further strengthen
our performance.� Segment Highlights � First Quarter Respiratory
Care Revenues increased 31.2% to $113.2 million in the first
quarter of 2007 compared to the first quarter of 2006. The quarter
benefited from strong sales of the LTV1200 portable mechanical
ventilators, partially as a result of the sale of ventilators to
the California Department of Homeland Security. In addition, we
experienced increased sales of our AVEA� and VELA� ventilators as
well as increased revenue from our Clinical Services and Customer
Care businesses. Also contributing to this increase were the sales
of sleep therapy products, primarily from our recent acquisitions.
Partially offsetting these increases were lower sales of our legacy
ventilators and the $2.3 million milestone payment from INO
Therapeutics, LLC recognized in the first quarter of 2006.
Operating income increased to $16.8 million in the first quarter of
2007 from $11.2 million in the comparable period last year. This
increase was due to the higher overall sales offset by the INO
milestone payment recognized in the first quarter of 2006 and
increased expenses due to our recent acquisitions. NeuroCare
Revenues were $29.8 million for the first quarters of both 2007 and
2006. Strong international sales of consumables and neurophysiology
products, including long-term monitoring and EMG, were offset by
lower overall sales of vascular products, which were unusually high
in the first quarter of 2006. An operating loss of $3.9 million was
incurred in the first quarter of 2007 compared to operating income
of $0.8 million in the first quarter of 2006. Included in the
current year loss was $5.1 million of restructuring charges related
to the shutdown of the Old Woking location and the movement of
production to Ireland. Excluding the restructuring charges,
operating income increased 47.1% to $1.3 million in the first
quarter of 2007 compared to $0.8 million in the same period last
year. This increase was largely attributable to cost reduction
initiatives and the restructuring that was implemented during the
third quarter of 2006. These savings were partially offset by the
additional costs associated with the third quarter 2006 acquisition
of the digital transcranial doppler technology from BioBeat Medical
Ltd. MedSystems Revenues were $8.5 million in the first quarter of
2007 compared to $8.1 million in the first quarter of 2006. The
results were mainly due to higher sales of enteral delivery
products and in particular our CORTRAK� and NAVIGATOR� access
systems, which were offset by certain non-strategic product lines.
Operating income was $1.4 million in the first quarters of both
2007 and 2006. Higher sales volume was partially offset by reduced
margins resulting from a less favorable product mix in addition to
increased petroleum based raw material costs. Orthopedics Revenues
declined 11.7% to $9.9 million in the first quarter of 2007
compared to the first quarter of 2006, primarily due to lower sales
of orthopedic products. While the year-over-year comparison was not
favorable, the first quarter of 2007 exceeded the revenue from the
fourth quarter of 2006. This increase marks the first sequential
quarter increase in over a year. An operating loss of $5.8 million
was incurred in the first quarter of 2007 compared to operating
income of $2.1 million in the comparable period last year. Included
in the current quarter operating loss was a charge of $7.5 million,
net of insurance recoveries, related to the resolution of a legal
claim. Excluding this charge, operating income was $1.7 million in
the first quarter of 2007 compared to $2.1 million in the
comparable period last year. The impact of the lower sales volume
was compounded by the impact on gross margin of pricing pressures
and was partially offset by reduced operating expenses. Corporate
Corporate expenses increased by $3.5 million in the first quarter
of 2007 over the comparable quarter of 2006. This increase is
primarily due to increased expenses related to our 2007
restructuring, the ERP system implementation, as well as the
appointment of several executives to positions that were vacant in
2006. Conference Call VIASYS Healthcare Inc. will host an earnings
release conference call on Monday, May 7, 2007, at 5:00 PM Eastern
Time. The call will be simultaneously webcast on the investor
information page of our website, www.viasyshealthcare.com. The call
will be archived on our website and will also be available for two
weeks via phone at 877-519-4471, access code 8639716. VIASYS
Healthcare Inc. is a global, research-based medical technology
company focused on respiratory, neurology, medical disposable and
orthopedic products. VIASYS products are marketed under
well-recognized trademarks, including, among others, AVEA�, BEAR�,
BIRD�, CORFLO�, CORPAK�, CORTRAK�, EME�, GRASON-STADLER�, JAEGER�,
LYRA�, MEDELEC�, MICROGAS�, NAVIGATOR�, NICOLET�, NicoletOne�,
PULMONETIC�, SENSORMEDICS�, TECA�, TECOMET�, VELA� and VMAX�.
VIASYS is headquartered in Conshohocken, PA, and its businesses are
conducted through its Respiratory Care, NeuroCare, MedSystems and
Orthopedics business units. More information can be found at
http://www.viasyshealthcare.com. This press release includes
certain forward-looking statements within the meaning of the �Safe
Harbor� provisions of the Private Securities Litigation Reform Act
of 1995 regarding, among other things, the performance of our
recent acquisitions, their affect on earnings and whether they will
contribute to higher rates of revenue and earnings growth in the
future, our ability to achieve our stated goals, the outlook for
our businesses, the expectations regarding the restructuring
charges relating to our acquisitions, our expectations for new
product introductions, our ability to create stockholder value, our
belief regarding the performance of our core businesses, our 2007
and 2008 earnings guidance, our prospects for continued growth, our
expectations regarding homeland security sales, our expectation
that our businesses will benefit from increases in therapeutic and
diagnostic treatments in our business, our ability to successfully
execute on our business strategies, our confidence in the Company�s
future, our ability to continue to gain market share in our
strategic products, our ability to continue to make strategic and
accretive acquisitions and our ability to compete in the sleep
therapy market. These statements may be identified by words such as
�expect,� �anticipate,� �estimate,� �project,� �intend,� �plan,�
�believe,� and other words and terms of similar meaning. Such
forward-looking statements are based on current expectations and
involve inherent risks and uncertainties, including important
factors that could delay, divert, or change any of them, and could
cause actual outcomes and results to differ materially from current
expectations. These factors include, among other things, the
integration of our recent acquisitions, the continued
implementation of the company�s restructuring plans, the
restructuring of our international organization, the headcount
reductions in our Neurocare business, the timing of pharmaceutical
trials by third parties, sales and marketing initiatives, our
ability to attract and retain talented sales personnel, the
commercialization of new products, the effectiveness of the
co-location of the former Critical Care and Respiratory
Technologies business segments, market factors, the continued
growth in the sleep therapy market, internal research and
development initiatives, partnered research and development
initiatives, competitive product development, changes in
governmental regulations and legislation, the continued
consolidation of certain of the industries in which we operate,
acceptance of our new products and services, patent protection and
litigation, a successful mergers and acquisitions strategy, the
ability to locate and acquire companies, businesses and products
that are strategic to the Company and accretive to earnings, and
the market for mergers and acquisitions. For further details and a
discussion of these and other risks and uncertainties, please see
our Annual Report on Form 10-K for the year ended December 30,
2006, which is on file with the Securities and Exchange Commission.
We undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events,
or otherwise. (1) Special items - In accordance with Regulation G
of the Securities and Exchange Commission, the table set forth
below reconciles certain financial measures used in this press
release that were not calculated in accordance with generally
accepted accounting principles, or GAAP, with the most directly
comparable financial measure calculated in accordance with GAAP.
Reconciliation of Non-GAAP Financial Measures (In Thousands, Except
Per Share Amounts) � Three Months Ended March 31, 2007 Three Months
Ended April 1, 2006 Change Operating (Loss) Income $ (1,053) $
9,371� Acquisition Related Costs (a) 107� 110� Legal Claim (b)
7,461� -� Restructuring Charges � 7,036� � (90) Adjusted Operating
Income $ 13,551� $ 9,391� 44.3% � Net (Loss) Income $ (1,222) $
5,501� Acquisition Related Costs (net of income taxes of $(41) and
$(39)) (a) 66� 71� Legal Claim (net of income taxes of $(2,885))
(b) 4,576� -� Restructuring Charges (net of income taxes of
$(2,721) and $32) � 4,315� � (58) Adjusted Net Income $ 7,735� $
5,514� 40.3% � Diluted (Loss) Earnings per Share $ (.04) $ .17�
Acquisition Related Costs per Share (a) -� -� Legal Claim per Share
(b) .14� -� Restructuring Charges per Share � .13� � -� Adjusted
Earnings per Share $ .23� $ .17� (a) In the first quarter of 2007,
we incurred $0.1 million of expense to integrate companies acquired
in 2006. The first quarter of 2006 was negatively impacted by $0.1
million of expense to integrate companies acquired in 2005. (b) As
previously disclosed, we agreed to participate in a non-binding
mediation with Smith & Nephew in April 2007 regarding claims
arising out of certain knee implant components supplied to Smith
& Nephew by one of our subsidiaries. As a result of this
mediation, we have entered into a binding agreement in principle
with Smith & Nephew to resolve any and all claims that the
parties may have with respect to this matter. Pursuant to the
agreement in principle, we recorded a charge of $7.5 million, net
of insurance recoveries. � Three Months Ended Consolidated
Statements of Operations (unaudited) (In Thousands, Except Per
Share Amounts) March 31, 2007 April 1, 2006 � Revenues $ 161,418� $
135,519� � Operating Costs and Expenses: Cost of revenues 84,361�
69,593� Selling, general and administrative expense 54,814� 47,241�
Research and development expense 8,799� 9,404� Restructuring
charges 7,036� (90) Legal Claim � 7,461� � � -� 162,471� 126,148� �
� Operating (Loss) Income � (1,053) � 9,371� Interest Expense, net
(874) (876) Other (Expense) Income, net � (201) � 100� � (Loss)
Income Before Income Taxes (2,128) 8,595� Benefit (Provision) for
Income Taxes � 906� � (3,094) Net (Loss) Income $ (1,222) $ 5,501�
� (Loss) Earnings per Share: Basic $ (.04) $ .17� Diluted $ (.04) $
.17� � Weighted Average Shares Outstanding: Basic 33,075� 32,097�
Diluted 33,075� 33,072� VIASYS Healthcare Inc. Revenues by Business
Segment and Geography (In thousands of dollars) Three Months Ended
March 31, 2007 April 1, 2006 � Respiratory Care Domestic 66,514�
46,296� International 46,696� 40,021� Total 113,210� 86,317� � �
NeuroCare Domestic 16,526� 18,367� International 13,271� 11,478�
Total 29,797� 29,845� � � MedSystems Domestic 6,443� 6,321�
International 2,071� 1,825� Total 8,514� 8,146� � � Orthopedics
Domestic 8,935� 9,164� International 962� 2,047� Total 9,897�
11,211� � � Total VIASYS Domestic 98,418� 80,148� International
63,000� 55,371� Total 161,418� 135,519�
Grafico Azioni Viasys Healthcare (NYSE:VAS)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Viasys Healthcare (NYSE:VAS)
Storico
Da Mag 2023 a Mag 2024