OSI Systems Reports First Quarter Fiscal 2015 Financial Results
-
Record Q1 Earnings Per Share
-
GAAP of
$0.55 (77% increase over prior year) -
Non-GAAP of
$0.57 (24% increase over prior year)
-
GAAP of
-
Record Q1 Revenue of
$218 million -
Company raises FY 2015 Sales guidance to
$970 million -$995 million . -
Company raises FY 2015 non-GAAP Earnings guidance to
$3.53 -$3.76 per share
The Company reported revenues of
During the three months ended
Fiscal Year 2015 Outlook
The Company is raising its sales guidance for fiscal 2015 to
Presentation of Non-GAAP Financial Measure; Non-GAAP Figures
This earnings release includes a presentation of Adjusted EBITDA, a
non-GAAP financial measure. Adjusted EBITDA is presented as a
supplemental measure of the Company's financial performance that we
believe is useful to investors because the excluded items may vary
significantly in timing or amounts and/or may obscure trends useful in
evaluating and comparing the Company's operating activities across
reporting periods. Its introduction coincided with the Company's shift
to increased levels of capital intensive turnkey screening services and
the accompanying higher depreciation. Adjusted EBITDA is defined as net
income, plus net interest expense, provision for income taxes and
depreciation and amortization, as further adjusted to eliminate the
impact of stock-based compensation, and impairment, restructuring and
other charges. Not all companies use identical calculations and,
accordingly, the Company's presentation of Adjusted EBITDA may not be
comparable to other similarly titled measures of other companies.
Adjusted EBITDA is not a recognized term under accounting principles
generally accepted in
Discussion of adjustments to arrive at non-GAAP net income and diluted
earnings per share figures and Adjusted EBITDA for the three months
ended
Reconciliations of GAAP to non-GAAP net income and diluted earnings per share, and net income to Adjusted EBITDA are provided in the accompanying tables.
Conference Call Information
About
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking statements
relate to the Company's current expectations, beliefs, projections and
similar expressions concerning matters that are not historical facts and
are not guarantees of future performance. Forward-looking
statements involve uncertainties, risks, assumptions and contingencies,
many of which are outside the Company's control and which may cause
actual results to differ materially from those described in or implied
by any forward-looking statement. Such statements include, but are not
limited to, information provided regarding expected revenues and
earnings in fiscal 2015. In addition, the Company could be exposed to a
variety of negative consequences as a result of delays related to the
award of domestic and international contracts; delays in customer
programs; unanticipated impacts of sequestration and other provisions of
the Budget Control Act of 2011 as modified by the Bipartisan Budget Act
of 2013; changes in domestic and foreign government spending, budgetary,
procurement and trade policies adverse to the Company's businesses;
market acceptance of the Company's new and existing technologies,
products and services; the Company's ability to win new business and
convert any orders received to sales within the fiscal year in
accordance with the Company's annual operating plan; enforcement actions
in respect of any noncompliance with laws and regulations including
export control and environmental regulations and the matters that are
the subject of some or all of the Company's ongoing investigations and
compliance reviews, contract and regulatory compliance matters, and
actions, if brought, resulting in judgments, settlements, fines,
injunctions, debarment or penalties, as well as other risks and
uncertainties, including but not limited to those detailed herein and
from time to time in the Company's
|
|
||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||
|
(in thousands, except per share data) |
||||||||||||
|
(unaudited) |
||||||||||||
| Three Months Ended | ||||||||||||
|
|
||||||||||||
| 2013 | 2014 | |||||||||||
| Revenue | $ | 206,274 | $ | 218,397 | ||||||||
| Cost of goods sold | 138,328 | 144,155 | ||||||||||
| Gross profit | 67,946 | 74,242 | ||||||||||
| Operating expenses: | ||||||||||||
| Selling, general and administrative | 42,214 | 44,182 | ||||||||||
| Research and development | 11,020 | 12,670 | ||||||||||
| Restructuring and other charges | 4,239 | 726 | ||||||||||
| Total operating expenses | 57,473 | 57,578 | ||||||||||
| Income from operations | 10,473 | 16,664 | ||||||||||
| Interest and other expense, net | (1,470 | ) | (864 | ) | ||||||||
| Income before income taxes | 9,003 | 15,800 | ||||||||||
| Provision for income taxes | 2,609 | 4,551 | ||||||||||
| Net income | $ | 6,394 | $ | 11,249 | ||||||||
| Diluted income per share | $ | 0.31 | $ | 0.55 | ||||||||
| Weighted average shares outstanding - diluted | 20,620 | 20,529 | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (in thousands) | ||||||||||
| (unaudited) | ||||||||||
|
|
|
|||||||||
| Assets | ||||||||||
| Cash and cash equivalents | $ | 38,831 | $ | 37,274 | ||||||
| Accounts receivable, net | 185,773 | 155,849 | ||||||||
| Inventories | 234,138 | 264,394 | ||||||||
| Other current assets | 120,488 | 125,484 | ||||||||
| Total current assets | 579,230 | 583,001 | ||||||||
| Non-current assets | 444,956 | 445,054 | ||||||||
| Total Assets | $ | 1,024,186 | $ | 1,028,055 | ||||||
| Liabilities and Stockholders' Equity | ||||||||||
| Bank lines of credit | $ | 24,000 | $ | 30,000 | ||||||
| Current portion of long-term debt | 2,819 | 2,820 | ||||||||
| Accounts payable and accrued expenses | 130,437 | 134,546 | ||||||||
| Deferred revenues | 60,677 | 55,958 | ||||||||
| Other current liabilities | 92,046 | 98,310 | ||||||||
| Total current liabilities | 309,979 | 321,634 | ||||||||
| Long-term debt | 10,436 | 11,267 | ||||||||
| Advances from customers | 50,000 | 43,750 | ||||||||
| Deferred income taxes | 73,161 | 73,978 | ||||||||
| Other long-term liabilities | 48,397 | 55,257 | ||||||||
| Total liabilities | 491,973 | 505,886 | ||||||||
| Total stockholders' equity | 532,213 | 522,169 | ||||||||
| Total Liabilities and Equity | $ | 1,024,186 | $ | 1,028,055 | ||||||
|
Segment Information |
||||||||||||
| (in thousands) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
|
|
||||||||||||
| 2013 | 2014 | |||||||||||
| Revenues - by Segment: | ||||||||||||
| Security division | $ | 97,153 | $ | 113,439 | ||||||||
| Healthcare division | 45,787 | 47,834 | ||||||||||
| Optoelectronics and Manufacturing division, including intersegment revenues |
71,311 |
69,086 | ||||||||||
| Intersegment revenues elimination | (7,977 | ) | (11,962 | ) | ||||||||
| Total | $ | 206,274 | $ | 218,397 | ||||||||
| Operating income (loss) - by Segment: | ||||||||||||
| Security division (i) | $ | 11,622 | $ | 17,259 | ||||||||
| Healthcare division (ii) | (1,998 | ) | 62 | |||||||||
| Optoelectronics and Manufacturing division (iii) | 4,765 | 4,327 | ||||||||||
| Corporate (iv) | (4,045 | ) | (4,517 | ) | ||||||||
| Eliminations | 129 | (467 | ) | |||||||||
| Total | $ | 10,473 | $ | 16,664 | ||||||||
|
(i) |
Includes restructuring and other charges of |
|
|
(ii) |
Includes restructuring and other charges of |
|
|
(iii) |
Includes restructuring and other charges of |
|
|
(iv) |
Includes restructuring and other charges of |
| Reconciliation of GAAP to Non-GAAP | ||||||||||||||||||||
| (in thousands, except earnings per share data) | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||
| 2013 | 2014 | |||||||||||||||||||
| Net | Net | |||||||||||||||||||
| income | EPS | income | EPS | |||||||||||||||||
| GAAP basis | $ | 6,394 | $ | 0.31 | $ | 11,249 | $ | 0.55 | ||||||||||||
| Restructuring and other charges, net of tax | 3,011 | 0.15 | 517 | 0.02 | ||||||||||||||||
| Non-GAAP basis | $ | 9,405 | $ | 0.46 | $ | 11,766 | $ | 0.57 | ||||||||||||
| Reconciliation of Net Income to Adjusted EBITDA | ||||||||||
| (in thousands) | ||||||||||
| (unaudited) | ||||||||||
|
Three Months Ended |
||||||||||
| 2013 | 2014 | |||||||||
| Net income | $ | 6,394 | $ | 11,249 | ||||||
| Interest expense, net | 1,470 | 870 | ||||||||
| Provision for income taxes | 2,609 | 4,551 | ||||||||
| Depreciation and amortization | 12,873 | 17,741 | ||||||||
| EBITDA | 23,346 | 34,411 | ||||||||
| Stock-based compensation | 5,638 | 5,995 | ||||||||
| Restructuring and other charges | 4,239 | 726 | ||||||||
| Adjusted EBITDA | $ | 33,223 | $ | 41,132 | ||||||
Vice
President, Business Development
avashishat@osi-systems.com
Source:
News Provided by Acquire Media