OSI Systems Reports Third Quarter Fiscal 2017 Financial Results
-
Record Q3 Revenue of
$245 Million (16% increase over prior year) -
Q3 Earnings Per Diluted Share
-
GAAP EPS of
$0.72 (compared to$0.47 in same prior-year period) -
Non-GAAP EPS of
$0.85 (29% increase over prior year)
-
GAAP EPS of
"Once again driven by a solid performance in our Security division, we
are pleased to announce strong fiscal third quarter results," said
The Company reported record revenues of
For the nine months ended
During the quarter ended
Fiscal Year 2017 Outlook
The Company is updating the fiscal 2017 sales guidance to
The Company's fiscal 2017 diluted earnings per share guidance is provided on a non-GAAP basis only. The Company does not provide a reconciliation of non-GAAP diluted EPS guidance on a forward-looking basis to GAAP diluted EPS, the most directly comparable GAAP measure, because it is unable to provide a meaningful or accurate compilation of reconciling items and certain information is not available. This is due primarily to year-over-year variability and the difficulty in making accurate forecasts and projections of impairment, restructuring and other charges and their related tax effects.
Presentation of Non-GAAP Financial Measures
This earnings release includes a presentation of non-GAAP net income,
non-GAAP diluted earnings per share, non-GAAP operating income (loss) by
segment and non-GAAP operating margin, all of which are non-GAAP
financial measures. The presentation of these non-GAAP figures for the
three months and nine months ended
Reconciliations of GAAP to non-GAAP financial information are provided in the accompanying tables. The financial results calculated in accordance with GAAP and reconciliations from those financial results should be carefully evaluated.
Conference Call Information
About
Forward-Looking Statements
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 and projections
and similar expressions concerning matters that are not historical facts.
Forward-looking statements are not guarantees of future performance
and 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. Forward-looking statements include, but are
not limited to, information regarding expected revenues, earnings and
growth in fiscal 2017. 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; delays in revenue recognition related to the timing of
customer acceptance; unanticipated impacts of sequestration and other
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in thousands) | ||||||
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Assets | ||||||
Cash and cash equivalents | $ | 104,370 | $ | 158,472 | ||
Accounts receivable, net | 141,716 | 183,838 | ||||
Inventories | 273,288 | 267,191 | ||||
Other current assets | 35,944 | 47,066 | ||||
Total current assets | 555,318 | 656,567 | ||||
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122,819 | 241,727 | ||||
Intangible assets | 56,283 | 120,575 | ||||
Other non-current assets | 257,303 | 216,868 | ||||
Total Assets | $ | 991,723 | $ | 1,235,737 | ||
Liabilities and Stockholders' Equity | ||||||
Bank lines of credit | $ | 125,000 | $ | 93,000 | ||
Current portion of long-term debt | 2,759 | 2,410 | ||||
Accounts payable and accrued expenses | 117,455 | 139,665 | ||||
Other current liabilities | 122,621 | 113,151 | ||||
Total current liabilities | 367,835 | 348,226 | ||||
Long-term debt | 6,054 | 240,018 | ||||
Deferred income taxes | 29,160 | 28,600 | ||||
Other long-term liabilities | 47,828 | 64,581 | ||||
Total liabilities | 450,877 | 682,425 | ||||
Total stockholders' equity | 540,846 | 554,312 | ||||
Total Liabilities and Stockholders' Equity | $ | 991,723 | $ | 1,235,737 |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(in thousands, except per share data) |
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Three Months Ended | Nine Months Ended | |||||||||||||||
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2016 | 2017 | 2016 | 2017 | |||||||||||||
Revenues | $ | 210,804 | $ | 245,146 | $ | 608,193 | $ | 708,549 | ||||||||
Cost of goods sold | 140,745 | 159,118 | 402,099 | 471,839 | ||||||||||||
Gross profit | 70,059 | 86,028 | 206,094 | 236,710 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 39,233 | 49,431 | 122,767 | 144,528 | ||||||||||||
Research and development | 12,945 | 14,395 | 37,871 | 39,811 | ||||||||||||
Impairment, restructuring and other charges | 4,537 | 2,508 | 15,634 | 21,885 | ||||||||||||
Total operating expenses | 56,715 | 66,334 | 176,272 | 206,224 | ||||||||||||
Income from operations | 13,344 | 19,694 | 29,822 | 30,486 | ||||||||||||
Interest expense, net | (680 | ) | (2,583 | ) | (2,025 | ) | (5,716 | ) | ||||||||
Other income (expense), net | 14 | 2,094 | (58 | ) | 2,088 | |||||||||||
Income before income taxes | 12,678 | 19,205 | 27,739 | 26,858 | ||||||||||||
Provision for income taxes | 3,335 | 5,186 | 7,483 | 7,329 | ||||||||||||
Net income | $ | 9,343 | $ | 14,019 | $ | 20,256 | $ | 19,529 | ||||||||
Diluted earnings per share | $ | 0.47 | $ | 0.72 | $ | 1.00 | $ | 1.00 | ||||||||
Weighted average shares outstanding - diluted | 19,941 | 19,515 | 20,261 | 19,585 |
UNAUDITED SEGMENT INFORMATION | ||||||||||||||||
(in thousands) |
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Three Months Ended | Nine Months Ended | |||||||||||||||
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2016 | 2017 | 2016 | 2017 | |||||||||||||
Revenues - by Segment: | ||||||||||||||||
Security division | $ | 110,550 | $ | 144,824 | $ | 300,680 | $ | 408,037 | ||||||||
Healthcare division | 49,113 | 49,667 | 156,126 | 146,427 | ||||||||||||
Optoelectronics and Manufacturing division (including intersegment revenues) | 61,306 | 58,309 | 184,414 | 175,864 | ||||||||||||
Intersegment revenues eliminations | (10,165 | ) | (7,654 | ) | (33,027 | ) | (21,779 | ) | ||||||||
Total | $ | 210,804 | $ | 245,146 | $ | 608,193 | $ | 708,549 | ||||||||
Operating income (loss) - by Segment: | ||||||||||||||||
Security division | $ | 14,554 | $ | 18,287 | $ | 29,723 | $ | 36,767 | ||||||||
Healthcare division | (188 | ) | 936 | 6,130 | (1,527 | ) | ||||||||||
Optoelectronics and Manufacturing division | 5,325 | 5,974 | 14,078 | 16,149 | ||||||||||||
Corporate | (6,077 | ) | (6,067 | ) | (19,182 | ) | (21,882 | ) | ||||||||
Eliminations | (270 | ) | 564 | (927 | ) | 979 | ||||||||||
Total | $ | 13,344 | $ | 19,694 | $ | 29,822 | $ | 30,486 |
RECONCILIATION OF GAAP TO NON-GAAP | ||||||||||||||||||||||||||||||||
NET INCOME AND EARNINGS PER SHARE | ||||||||||||||||||||||||||||||||
(in thousands, except earnings per share data) |
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Three Months Ended |
Nine Months Ended |
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2016 | 2017 | 2016 | 2017 | |||||||||||||||||||||||||||||
Net | Net | Net | Net | |||||||||||||||||||||||||||||
income | EPS | income | EPS | income | EPS | income | EPS | |||||||||||||||||||||||||
GAAP basis | $ | 9,343 | $ | 0.47 | $ | 14,019 | $ | 0.72 | $ | 20,256 | $ | 1.00 | $ | 19,529 | $ | 1.00 | ||||||||||||||||
Impairment, restructuring and other charges | 4,537 | 0.23 | 2,508 | 0.13 | 15,634 | 0.77 | 21,885 | 1.12 | ||||||||||||||||||||||||
Amortization of acquired intangible assets | 713 | 0.03 | 2,405 | 0.12 | 1,837 | 0.09 | 6,025 | 0.30 | ||||||||||||||||||||||||
Non-cash interest expense | -- | -- | 706 | 0.04 | -- | -- | 706 | 0.04 | ||||||||||||||||||||||||
Gain from disposition of business | -- | -- | (2,110 | ) | (0.11 | ) | -- | -- | (2,110 | ) | (0.11 | ) | ||||||||||||||||||||
Tax effect of above adjustments | (1,381 | ) | (0.07 | ) | (948 | ) | (0.05 | ) | (4,713 | ) | (0.23 | ) | (7,233 | ) | (0.37 | ) | ||||||||||||||||
Non-GAAP basis | $ | 13,212 | $ | 0.66 | $ | 16,580 | $ | 0.85 | $ | 33,014 | $ | 1.63 | $ | 38,802 | $ | 1.98 |
RECONCILIATION OF GAAP TO NON-GAAP | |||||||||||||||||||||||||
OPERATING INCOME (LOSS) AND OPERATING MARGIN BY SEGMENT | |||||||||||||||||||||||||
(in thousands, except percentages) |
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Three Months Ended |
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Optoelectronics and | Corporate / | ||||||||||||||||||||||||
Security Division | Healthcare Division | Manufacturing Division | Elimination | Total | |||||||||||||||||||||
% of |
% of |
% of |
% of |
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Sales |
Sales |
Sales |
Sales |
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GAAP basis - operating income (loss) | $ | 14,554 | 13.2% | $ | (188 | ) | -0.4% | $ | 5,325 | 8.7% | $ | (6,347 | ) | $ | 13,344 | 6.3% | |||||||||
Impairment, restructuring and other charges | 1,243 | 1.1% | 1,683 | 3.4% | 557 | 0.9% | 1,054 | 4,537 | 2.2% | ||||||||||||||||
Amortization of acquired intangible assets | 202 | 0.2% | 163 | 0.4% | 348 | 0.6% | - | 713 | 0.3% | ||||||||||||||||
Non-GAAP basis- operating income (loss) | $ | 15,999 | 14.5% | $ | 1,658 | 3.4% | $ | 6,230 | 10.2% | $ | (5,293 | ) | $ | 18,594 | 8.8% | ||||||||||
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Three Months Ended |
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Optoelectronics and | Corporate / | ||||||||||||||||||||||||
Security Division | Healthcare Division | Manufacturing Division | Elimination | Total | |||||||||||||||||||||
% of |
% of |
% of |
% of |
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Sales |
Sales |
Sales |
Sales |
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GAAP basis - operating income (loss) | $ | 18,287 | 12.6% | $ | 936 | 1.9% | $ | 5,974 | 10.2% | $ | (5,503 | ) | $ | 19,694 | 8.0% | ||||||||||
Impairment, restructuring and other charges | 995 | 0.7% | 1,113 | 2.2% | 265 | 0.5% | 135 | 2,508 | 1.0% | ||||||||||||||||
Amortization of acquired intangible assets | 1,989 | 1.4% | 55 | 0.1% | 360 | 0.6% | - | 2,404 | 1.0% | ||||||||||||||||
Non-GAAP basis- operating income (loss) | $ | 21,271 | 14.7% | $ | 2,104 | 4.2% | $ | 6,599 | 11.3% | $ | (5,368 | ) | $ | 24,606 | 10.0% |
RECONCILIATION OF GAAP TO NON-GAAP | |||||||||||||||||||||||||
OPERATING INCOME (LOSS) AND OPERATING MARGIN BY SEGMENT | |||||||||||||||||||||||||
(in thousands, except percentages) |
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Nine Months Ended |
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Optoelectronics and | Corporate / | ||||||||||||||||||||||||
Security Division | Healthcare Division | Manufacturing Division | Elimination | Total | |||||||||||||||||||||
% of |
% of |
% of |
% of |
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Sales |
Sales |
Sales |
Sales |
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GAAP basis - operating income (loss) | $ | 29,723 | 9.9% | $ | 6,130 | 3.9% | $ | 14,078 | 7.6% | $ | (20,109 | ) | $ | 29,822 | 4.9% | ||||||||||
Impairment, restructuring and other charges | 7,543 | 2.5% | 1,683 | 1.1% | 3,054 | 1.7% | 3,354 | 15,634 | 2.6% | ||||||||||||||||
Amortization of acquired intangible assets | 611 | 0.2% | 489 | 0.3% | 736 | 0.4% | - | 1,836 | 0.3% | ||||||||||||||||
Non-GAAP basis- operating income (loss) | $ | 37,877 | 12.6% | $ | 8,302 | 5.3% | $ | 17,868 | 9.7% | $ | (16,755 | ) | $ | 47,292 | 7.8% | ||||||||||
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Nine Months Ended |
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Optoelectronics and | Corporate / | ||||||||||||||||||||||||
Security Division | Healthcare Division | Manufacturing Division | Elimination | Total | |||||||||||||||||||||
% of |
% of |
% of |
% of |
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Sales |
Sales |
Sales |
Sales |
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GAAP basis - operating income (loss) | $ | 36,767 | 9.0% | $ | (1,527 | ) | -1.0% | $ | 16,149 | 9.2% | $ | (20,903 | ) | $ | 30,486 | 4.3% | |||||||||
Impairment, restructuring and other charges | 15,130 | 3.7% | 2,348 | 1.6% | 553 | 0.3% | 3,854 | 21,885 | 3.1% | ||||||||||||||||
Amortization of acquired intangible assets | 4,578 | 1.1% | 359 | 0.2% | 1,087 | 0.6% | - | 6,024 | 0.8% | ||||||||||||||||
Non-GAAP basis- operating income (loss) | $ | 56,475 | 13.8% | $ | 1,180 | 0.8% | $ | 17,789 | 10.1% | $ | (17,049 | ) | $ | 58,395 | 8.2% |
View source version on businesswire.com: http://www.businesswire.com/news/home/20170426006483/en/
Vice President,
Business Development
(310)
349-2237
avashishat@osi-systems.com
Source:
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