Oct. 27, 2009 (PR Newswire) -- WALTHAM, Mass., Oct. 27 /PRNewswire-FirstCall/ -- Inverness Medical Innovations, Inc. (NYSE: IMA), a global leader in enabling individuals to take charge of their health at home through the merger of rapid diagnostics and health management, today announced its financial results for the quarter ended September 30, 2009.
Financial results for the third quarter of 2009:
-- Net revenue of $535.8 million for the third quarter of 2009, compared to
$438.8 million for the third quarter of 2008.
-- GAAP net income available to common stockholders and earnings per share
of $14.3 million and $0.17 per diluted common share, compared to GAAP
net loss available to common stockholders and loss per share of $9.1
million and $0.12 per common share, for the third quarter of 2008.
-- Adjusted cash basis net income available to common stockholders and
earnings per share of $66.6 million and $0.74 per diluted common share,
compared to $37.7 million and $0.46 per diluted common share, for the
third quarter of 2008.
Highlights for the third quarter of 2009:
-- Currency adjusted organic revenue growth of 9.2% in our Professional
Diagnostics business, excluding North American influenza sales.
-- North American influenza sales totaled $40.4 million for the third
quarter of 2009, compared to $6.8 million for the third quarter of 2008.
-- Recent acquisitions contributed $37.4 million of incremental net
revenue, compared to the third quarter of 2008.
The Company's GAAP results for the third quarter of 2009 include amortization of $65.4 million, $6.2 million of restructuring charges, $7.8 million of stock-based compensation expense, a $0.7 million charge associated with the write-up to fair market value of inventory acquired in connection with the acquisition of Concateno plc, a $1.9 million compensation charge incurred in connection with the acquisition of Concateno plc, a $0.3 million loss recorded in connection with deferred purchase price consideration to be paid with our common stock and $5.1 million of acquisition-related costs recorded in accordance with our adoption of ASC 805, Business Combinations, offset by a $3.4 million gain on the disposition of our Diamics, Inc. operations and a $2.9 million net realized foreign currency gain associated with restricted cash established in connection with the Concateno plc acquisition. GAAP results for the third quarter of 2008 include amortization of $60.0 million, $5.8 million of restructuring charges and $7.0 million of stock-based compensation expense. These amounts, net of tax, have been excluded from the adjusted cash basis net income per common share for the respective quarters.
A detailed reconciliation of the Company's adjusted cash basis net income, which is a non-GAAP financial measure, to net income (loss) under GAAP, as well as a discussion regarding this non-GAAP financial measure, is included in the schedules to this press release.
The Company will host a conference call beginning at 10:00 a.m. (Eastern Time) today, October 27, 2009, to discuss these results as well as other corporate matters. During the conference call, the Company may answer questions concerning business and financial developments and trends and other business and financial matters. The Company's responses to these questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed.
The conference call may be accessed by dialing 706-679-1656 (domestic and international), an access code is not required, or via a link on the Inverness website at www.invmed.com. It is also available via link at https://event.meetingstream.com/r.htm?e=173280&s=1&k=869A5F5A4B771B69A9B01D767DE15ABF. An archive of the call will be available from the same link approximately two hours after the conclusion of the live call and will be accessible for 90 days. Additionally, reconciliations to non-GAAP financial measures not included in this press release that may be discussed during the call will also be available at the Inverness website (www.invmed.com/News.cfm) shortly before the conference call begins and will continue to be available on this website for 30 days.
For more information about Inverness Medical Innovations, please visit our website at http://www.invernessmedical.com.
By developing new capabilities in near-patient diagnosis, monitoring and health management, Inverness Medical Innovations enables individuals to take charge of improving their health and quality of life at home. Inverness' global leading products and services, as well as its new product development efforts, focus on infectious disease, cardiology, oncology, drugs of abuse and women's health. Inverness is headquartered in Waltham, Massachusetts.
Inverness Medical Innovations, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations and
Reconciliation to Non-GAAP Adjusted Cash Basis Amounts
(in $000s, except per share amounts)
Nine Months Ended September 30, 2009
Non-GAAP
Adjusted
Non-GAAP Cash
GAAP Adjustments Basis (a)
Net product sales
and services revenue $1,419,472 $- $1,419,472
License and royalty
revenue 20,588 - 20,588
Net revenue 1,440,060 - 1,440,060
Cost of net revenue 683,898 (38,729)(b)(c)(d)(e) 645,169
Gross profit 756,162 38,729 794,891
Gross margin 53% 55%
Operating expenses:
Research and
development 80,811 (7,793)(b)(c)(d) 73,018
Selling, general
and administrative 570,154 (182,614)(b)(c)(d)(f) 387,540
Gain on disposition (3,355) 3,355 (h) -
Operating
income 108,552 225,781 334,333
Interest and other
income (expense),
net (71,235) (231)(c)(g)(i)(j) (71,466)
Income tax provision
(benefit) 11,927 79,189 (k) 91,116
Equity earnings of
unconsolidated
entities, net of tax 5,539 4,597 (b)(c) 10,136
Net income (loss) $30,929 $150,958 $181,887
Preferred stock
dividends $(17,056) $(17,056)
Net income (loss)
available to
common
stockholders $13,873 $164,831
Net income (loss)
per common share
Basic $0.17 $2.07
Diluted $0.17 $1.92(m)
Weighted average
common shares -
basic 79,682 79,682
Weighted average
common shares -
diluted 81,110 95,864(m)
Nine Months Ended September 30, 2008
Non-GAAP
Adjusted
Non-GAAP Cash
GAAP Adjustments Basis (a)
Net product sales
and services revenue $1,190,684 $- $1,190,684
License and royalty
revenue 21,476 - 21,476
Net revenue 1,212,160 - 1,212,160
Cost of net revenue 597,520 (53,560)(b)(c)(d)(e) 543,960
Gross profit 614,640 53,560 668,200
Gross margin 51% 55%
Operating expenses:
Research and
development 86,426 (13,080)(b)(c)(d) 73,346
Selling, general
and administrative 496,687 (142,286)(b)(c)(d) 354,401
Gain on disposition - - -
- - -
Operating
income 31,527 208,926 240,453
Interest and other
income (expense),
net (84,151) 8,615(c)(g) (75,536)
Income tax provision
(benefit) (13,274) 71,050(k) 57,776
Equity earnings of
unconsolidated
entities, net of tax 1,169 6,678(b)(c) 7,847
Net income (loss) $(38,181) $153,169 $114,988
Preferred stock
dividends $(8,500) $(8,500)
Net income (loss)
available to
common
stockholders $(46,681) $106,488
Net income (loss)
per common share
Basic $(0.60) $1.37
Diluted $(0.60)(l) $1.30(n)
Weighted average
common shares -
basic 77,630 77,630
Weighted average
common shares -
diluted 77,630(l) 83,390(n)
(a) In calculating net income or loss on an adjusted cash basis, the Company excludes from net income or loss (i) certain non-cash charges, including amortization expense and stock-based compensation expense, (ii) non-recurring charges and income, and (iii) certain other charges and income that have a significant positive or negative impact on results yet do not occur on a consistent or regular basis in its business. In determining whether a particular item meets one of these criteria, management considers facts and circumstances that it believes are relevant.
