BEDFORD, Mass., April 29, 2015 /PRNewswire/ -- Hologic, Inc.
(NASDAQ: HOLX) announced today the Company's financial results for
the second fiscal quarter ended March 28, 2015.
Quarterly revenues of $655.5 million
increased 4.9% on a reported basis, and 7.2% on a constant currency
basis. Non-GAAP earnings per share (EPS) increased 10.8%, to
$0.41.
"We posted strong organic revenue growth across the board for a
second straight quarter, while profitability increased at an even
faster rate," said Steve MacMillan,
Hologic's President and Chief Executive Officer. "As a Company, we
have come a long way in a short period of time. While we
focus on continuing to improve our performance, we are increasingly
confident in our people and products, and are therefore further
raising our financial outlook for the year."
Key financial results for the second fiscal quarter are shown
below. Throughout this press release, all dollar figures
except EPS are in millions. Unless otherwise noted, all
results are for the second quarter of fiscal 2015, are on a
reported basis, and are compared to the prior year period.
|
GAAP
|
|
Non-GAAP
|
|
Q2'15
|
Q2'14
|
Change
(Reported)
|
|
Q2'15
|
Q2'14
|
Change
(Reported)
|
Revenues
|
$655.5
|
$625.0
|
4.9%
|
|
$655.5
|
$625.0
|
4.9%
|
Gross
Margin
|
51.3%
|
45.1%
|
620 bps
|
|
63.4%
|
62.5%
|
90 bps
|
Operating
Expenses
|
$226.2
|
$231.9
|
(2.5%)
|
|
$195.9
|
$187.9
|
4.3%
|
Operating
Margin
|
16.8%
|
8.0%
|
880 bps
|
|
33.5%
|
32.4%
|
110 bps
|
Net Income
(Loss)
|
$47.8
|
($16.8)
|
N/M
|
|
$118.9
|
$103.1
|
15.3%
|
Diluted
EPS
|
$0.17
|
($0.06)
|
N/M
|
|
$0.41
|
$0.37
|
10.8%
|
Revenue Detail
Revenues grew in all four business segments in the second fiscal
quarter, and increased 7.2% on a constant currency basis:
$s in
millions
|
Q2'15
|
Q2'14
|
Change
(Reported)
|
Change
(Constant
Currency)
|
Diagnostics
|
$296.7
|
$290.8
|
2.0%
|
4.1%
|
Breast
Health
|
$255.5
|
$238.7
|
7.0%
|
9.4%
|
GYN
Surgical
|
$79.1
|
$72.0
|
9.8%
|
11.9%
|
Skeletal
Health
|
$24.2
|
$23.5
|
3.3%
|
8.1%
|
Total
|
$655.5
|
$625.0
|
4.9%
|
7.2%
|
Other revenue highlights from the second quarter of fiscal 2015
include:
- U.S. revenues of $495.2 million
increased 6.8%, while international revenues of $160.3 million declined (0.7%). On a
constant currency basis, international revenues increased
8.0%.
- In Breast Health, revenue from breast imaging products and
related service increased 11.4% on a reported basis, and 13.8% on a
constant currency basis, as customers continued to adopt Hologic's
Genius 3D mammography.
- In Diagnostics:
- Molecular diagnostics sales increased 6.4% on a reported basis,
and 7.9% on a constant currency basis, driven mainly by Aptima
women's health products on the fully automated Panther and Tigris
platforms.
- Cytology and perinatal sales declined (5.2%) on a reported
basis, and (1.5%) on a constant currency basis, as declines in
ThinPrep sales continued to moderate.
- Blood screening revenue from our partner Grifols increased
8.3%, mainly due to new business with the Japanese Red Cross.
- In GYN Surgical, MyoSure system sales increased by 33.9% on a
reported basis and 35.2% on a constant currency basis.
NovaSure system sales declined by (0.1%) on a reported basis and
increased by 2.5% on a constant currency basis.
- Approximately 61% of total revenues were from disposables, 22%
were from capital equipment, and 17% were from service and
other.
Expense Detail
Gross margin was 51.3% on a GAAP basis, and 63.4% on a non-GAAP
basis. On a non-GAAP basis, gross margin improved mainly due
to strong sales growth in the U.S. market, and favorable product
mix in the Breast Health division.
Operating expenses were $226.2
million on a GAAP basis, and $195.9
million on a non-GAAP basis. The 4.3% increase in
non-GAAP operating expenses resulted mainly from higher research
and development investment in the Diagnostics business, and
increased marketing spending in the Breast Health division.
These increases were offset by lower general and administrative
expenses.
Adjusted non-GAAP earnings before interest, taxes, depreciation
and amortization (EBITDA) were $238.6
million in the second quarter, an increase of
7.3%.
Balance Sheet and Cash Flows
Hologic continues to focus on reducing its debt. Total
debt outstanding at the end of the second fiscal quarter was
$3,939.8 million, a $327.9 million decrease from the end of fiscal
2014. The Company ended the quarter with cash and equivalents
of $675.1 million.
Operating cash flow was $157.8
million, while free cash flow, defined as operating cash
flow less capital expenditures, was $139.2
million.
Updated Financial Guidance
Based on its strong performance in the second quarter of fiscal
2015, Hologic is raising its full year 2015 revenue and non-GAAP
EPS guidance, as shown in the table below. The guidance for
reported results is based on recent foreign exchange rates.
Percentage changes from the prior year exclude the one-time benefit
associated with amending the Roka license agreement, which added
$20.1 million of revenue and
$0.05 of EPS to the fourth quarter of
fiscal 2014.
|
New
Guidance
|
Last
Guidance
From
1/28/15
|
New Guidance vs.
Prior Year (As
Reported)
|
New Guidance vs.
Prior Year
(Constant
Currency)
|
Revenues
|
$2,600 to $2,620
million
|
$2,570 to $2,600
million
|
3.6% to
4.4%
|
5.8% to
6.6%
|
Non-GAAP
EPS
|
$1.57 to
$1.59
|
$1.54 to
$1.57
|
7.5% to
8.9%
|
11.6% to
13.0%
|
Since Hologic last provided financial guidance on January 28, 2015, the US dollar has continued to
strengthen. If the dollar were at the same level today as it
was in January, the Company's new revenue guidance would have been
approximately $9 million higher, and
its new EPS guidance would have been about $0.01 higher.
For the third quarter of fiscal 2015, Hologic now expects:
|
Guidance
|
Change vs. Prior
Year
Period (As Reported)
|
Change vs. Prior
Year
Period (Constant Currency)
|
Revenues
|
$645 to $655
million
|
2.0% to
3.5%
|
4.7% to
6.3%
|
Non-GAAP
EPS
|
$0.38 to
$0.39
|
2.7% to
5.4%
|
8.1% to
10.8%
|
Use of Non-GAAP Financial Measures
The Company has presented the following non-GAAP financial
measures in this press release: constant currency revenues;
non-GAAP gross margin; non-GAAP operating expenses; non-GAAP
operating margin; non-GAAP net income; non-GAAP EPS; and adjusted
EBITDA. The Company defines its non-GAAP net income, EPS, and other
non-GAAP financial measures to exclude, as applicable: (i) the
amortization of intangible assets and impairment of goodwill and
intangible assets; (ii) acquisition-related charges and effects,
such as charges for contingent consideration, transaction costs,
integration costs including retention, and credits and/or charges
associated with the write-up of acquired inventory and fixed assets
to fair value; (iii) non-cash interest expense related to
amortization of the debt discount from the equity conversion option
of the convertible notes; (iv) restructuring and divestiture
charges; (v) debt extinguishment losses and related transaction
costs; (vi) litigation settlement charges (benefits); (vii)
other-than-temporary impairment losses on investments; (viii) other
one-time, non-recurring, unusual or infrequent charges, expenses or
gains that may not be indicative of the Company's core business
results; and (ix) income taxes related to such adjustments.
The Company defines adjusted EBITDA as its non-GAAP net income plus
net interest expense, income taxes, and depreciation and
amortization expense included in its non-GAAP net income.
The Company believes the use of non-GAAP financial measures is
useful to investors by eliminating certain of the more significant
effects of its acquisitions and related activities, non-cash
charges resulting from the application of GAAP to convertible debt
instruments with cash settlement features, charges related to debt
extinguishment losses, investment impairments, litigation
settlements, and restructuring and divestiture initiatives. These
non-GAAP measures also reflect how Hologic manages its businesses
internally. In addition to the adjustments set forth in the
calculation of the Company's non-GAAP net income and EPS, its
adjusted EBITDA eliminates the effects of financing, income taxes
and the accounting effects of capital spending. As with the items
eliminated in its calculation of non-GAAP net income, these items
may vary for different companies for reasons unrelated to the
overall operating performance of a company's business. When
analyzing the Company's operating performance, investors should not
consider these non-GAAP financial measures as a substitute for net
income prepared in accordance with GAAP.
Future Non-GAAP Adjustments
Future GAAP EPS may be affected by changes in ongoing
assumptions and judgments, and may also be affected by
non-recurring, unusual or unanticipated charges, expenses or gains,
which are excluded in the calculation of the Company's non-GAAP EPS
guidance as described in this press release. It is therefore not
practicable to reconcile non-GAAP EPS guidance to the most
comparable GAAP measure.
Conference Call and Webcast
Hologic's management will host a conference call at 4:30 p.m. ET today to discuss its second quarter
fiscal 2015 operating results. Approximately 10 minutes
before the call, dial 877-675-4751 (US and Canada) or 719-325-4802 (international) and
enter access code 1755131. A replay will be available
starting two hours after the call ends through May 29, 2015, at 888-203-1112 or 719-457-0820 for
international callers, access code 1755131. The Company will
also provide a live webcast of the call at
www.investors.hologic.com/investors-overview. A PowerPoint
presentation related to the conference call will be posted to the
same site.
About Hologic, Inc.
Hologic, Inc. is a leading developer, manufacturer and supplier
of premium diagnostic products, medical imaging systems and
surgical products. The Company's core business units focus on
diagnostics, breast health, GYN surgical, and skeletal
health. With a unified suite of technologies and a robust
research and development program, Hologic is dedicated to The
Science of Sure. For more information on Hologic, visit
www.hologic.com.
Hologic, Genius 3D mammography, Aptima, ThinPrep, MyoSure,
NovaSure, Panther, Tigris, The Science of Sure, and associated
logos are trademarks and/or registered trademarks of Hologic, Inc.
and/or its subsidiaries in the United
States and/or other countries.
Forward-Looking Statements
This News Release contains forward-looking information that
involves risks and uncertainties, including statements about the
Company's plans, objectives, expectations and intentions. Such
statements include, without limitation: financial or other
information included herein based upon or otherwise incorporating
judgments or estimates relating to future performance, events or
expectations; the Company's strategies, positioning, resources,
capabilities, and expectations for future performance; and the
Company's outlook and financial and other guidance. These
forward-looking statements are based upon assumptions made by the
Company as of the date hereof and are subject to known and unknown
risks and uncertainties that could cause actual results to differ
materially from those anticipated.
Risks and uncertainties that could adversely affect the
Company's business and prospects, and otherwise cause actual
results to differ materially from those anticipated, include
without limitation: the ability of the Company to successfully
manage leadership and organizational changes, including the ability
of the Company to attract, motivate and retain key employees; U.S.,
European and general worldwide economic conditions and related
uncertainties; the Company's reliance on third-party reimbursement
policies to support the sales and market acceptance of its
products, including the possible adverse impact of government
regulation and changes in the availability and amount of
reimbursement and uncertainties for new products or product
enhancements; uncertainties regarding healthcare reform
legislation, including associated tax provisions, or budget
reduction or other cost containment efforts; changes in guidelines,
recommendations and studies published by various organizations that
could affect the use of the Company's products; uncertainties
inherent in the development of new products and the enhancement of
existing products, including FDA approval and/or clearance and
other regulatory risks, technical risks, cost overruns and delays;
the risk that products may contain undetected errors or defects or
otherwise not perform as anticipated; risks associated with
strategic alliances and the ability of the Company to realize
anticipated benefits of those alliances; risks associated with
acquisitions, including, without limitation, the Company's ability
to successfully integrate acquired businesses, the risks that the
acquired businesses may not operate as effectively and efficiently
as expected even if otherwise successfully integrated, and the
risks that acquisitions may involve unexpected costs or unexpected
liabilities; the risks of conducting business internationally; the
risk of adverse exchange rate fluctuations on the Company's
international activities and businesses; manufacturing risks,
including the Company's reliance on a single or limited source of
supply for key components, and the need to comply with especially
high standards for the manufacture of many of its products; the
Company's ability to predict accurately the demand for its
products, and products under development, and to develop strategies
to address its markets successfully; the early stage of market
development for certain of the Company's products; the Company's
leverage risks, including the Company's obligation to meet payment
obligations and financial covenants associated with its debt; risks
related to the use and protection of intellectual property;
expenses, uncertainties and potential liabilities relating to
litigation, including, without limitation, commercial, intellectual
property, employment and product liability litigation; technical
innovations that could render products marketed or under
development by the Company obsolete; and competition.
The risks included above are not exhaustive. Other factors that
could adversely affect the Company's business and prospects are
described in the filings made by the Company with the SEC. The
Company expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any such statements
presented herein to reflect any change in expectations or any
change in events, conditions or circumstances on which any such
statements are based.
Contact
Michael Watts
Vice President, Investor Relations and
Corporate Communications
(858) 410-8588
HOLOGIC,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
(In millions, except
number of shares, which are reflected in thousands, and per share
data)
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
March 28,
2015
|
|
March 29,
2014
|
|
March 28,
2015
|
|
March 29,
2014
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Product
|
$
|
546.4
|
|
|
$
|
521.1
|
|
|
$
|
1,093.0
|
|
|
$
|
1,033.5
|
|
Service and
other
|
109.1
|
|
|
103.9
|
|
|
215.3
|
|
|
203.9
|
|
Total
revenues
|
655.5
|
|
|
625.0
|
|
|
1,308.3
|
|
|
1,237.4
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Product
|
186.7
|
|
|
185.7
|
|
|
373.4
|
|
|
362.6
|
|
Amortization of
intangible assets
|
78.6
|
|
|
76.9
|
|
|
152.5
|
|
|
153.5
|
|
Impairment of
intangible assets
|
—
|
|
|
26.6
|
|
|
—
|
|
|
26.6
|
|
Service and
other
|
54.2
|
|
|
53.7
|
|
|
107.8
|
|
|
107.0
|
|
Total cost of
revenues
|
319.5
|
|
|
342.9
|
|
|
633.7
|
|
|
649.7
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
336.0
|
|
|
282.1
|
|
|
674.6
|
|
|
587.7
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
53.3
|
|
|
49.9
|
|
|
105.2
|
|
|
98.6
|
|
Selling and
marketing
|
83.0
|
|
|
78.7
|
|
|
169.0
|
|
|
161.9
|
|
General and
administrative
|
60.3
|
|
|
62.1
|
|
|
121.7
|
|
|
129.9
|
|
Amortization of
intangible assets
|
27.6
|
|
|
29.1
|
|
|
55.4
|
|
|
55.3
|
|
Impairment of
intangible assets
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
Restructuring and
divestiture charges
|
2.0
|
|
|
11.6
|
|
|
10.0
|
|
|
30.0
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
226.2
|
|
|
231.9
|
|
|
461.3
|
|
|
476.2
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
109.8
|
|
|
50.2
|
|
|
213.3
|
|
|
111.5
|
|
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
|
Interest
expense
|
(49.4)
|
|
|
(54.4)
|
|
|
(101.9)
|
|
|
(115.7)
|
|
Other income
(expense), net
|
0.4
|
|
|
(3.2)
|
|
|
0.2
|
|
|
(1.6)
|
|
Debt extinguishment
loss
|
—
|
|
|
(4.4)
|
|
|
(6.7)
|
|
|
(7.4)
|
|
Total other
expense
|
(49.0)
|
|
|
(62.0)
|
|
|
(108.4)
|
|
|
(124.7)
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
60.8
|
|
|
(11.8)
|
|
|
104.9
|
|
|
(13.2)
|
|
Provision for income
taxes
|
13.0
|
|
|
5.0
|
|
|
27.9
|
|
|
8.9
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
47.8
|
|
|
$
|
(16.8)
|
|
|
$
|
77.0
|
|
|
$
|
(22.1)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.17
|
|
|
$
|
(0.06)
|
|
|
$
|
0.28
|
|
|
$
|
(0.08)
|
|
Diluted
|
$
|
0.17
|
|
|
$
|
(0.06)
|
|
|
$
|
0.27
|
|
|
$
|
(0.08)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
280,338
|
|
|
274,589
|
|
|
279,505
|
|
|
273,648
|
|
Diluted
|
287,580
|
|
|
274,589
|
|
|
285,378
|
|
|
273,648
|
|
HOLOGIC,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
March 28,
2015
|
|
September 27,
2014
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
670.5
|
|
|
$
|
736.1
|
|
Restricted
cash
|
4.6
|
|
|
5.5
|
|
Accounts receivable,
net
|
381.0
|
|
|
396.0
|
|
Inventories
|
298.2
|
|
|
330.6
|
|
Deferred income
taxes
|
—
|
|
|
39.4
|
|
Other current
assets
|
62.0
|
|
|
58.2
|
|
Total current
assets
|
1,416.3
|
|
|
1,565.8
|
|
|
|
|
|
Property, plant and
equipment, net
|
451.0
|
|
|
461.9
|
|
Goodwill and
intangible assets
|
6,034.9
|
|
|
6,244.4
|
|
Other
assets
|
129.6
|
|
|
142.6
|
|
Total
assets
|
$
|
8,031.8
|
|
|
$
|
8,414.7
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Current portion of
long-term debt
|
$
|
581.7
|
|
|
$
|
114.5
|
|
Accounts payable and
accrued liabilities
|
306.0
|
|
|
354.2
|
|
Deferred
revenue
|
156.5
|
|
|
150.9
|
|
Total current
liabilities
|
1,044.2
|
|
|
619.6
|
|
|
|
|
|
Long-term debt, net
of current portion
|
3,358.1
|
|
|
4,153.2
|
|
Deferred income
taxes
|
1,243.5
|
|
|
1,375.4
|
|
Other long-term
liabilities
|
217.4
|
|
|
203.5
|
|
Total
liabilities
|
5,863.2
|
|
|
6,351.7
|
|
Total stockholders'
equity
|
2,168.6
|
|
|
2,063.0
|
|
Total liabilities
and stockholders' equity
|
$
|
8,031.8
|
|
|
$
|
8,414.7
|
|
HOLOGIC,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
Six Months
Ended
|
|
March 28,
2015
|
|
March 29,
2014
|
OPERATING
ACTIVITIES
|
|
|
|
Net income
(loss)
|
$
|
77.0
|
|
|
$
|
(22.1)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Depreciation
|
40.7
|
|
|
49.0
|
|
Amortization
|
207.9
|
|
|
208.9
|
|
Non-cash interest
expense
|
33.2
|
|
|
35.8
|
|
Stock-based
compensation expense
|
25.8
|
|
|
26.1
|
|
Excess tax benefit
related to equity awards
|
(6.0)
|
|
|
(4.1)
|
|
Deferred income
taxes
|
(79.1)
|
|
|
(164.8)
|
|
Asset impairment
charges
|
—
|
|
|
33.3
|
|
Debt extinguishment
loss
|
6.7
|
|
|
7.4
|
|
Loss on disposal of
property and equipment
|
3.2
|
|
|
3.4
|
|
Other
|
0.7
|
|
|
2.9
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
3.3
|
|
|
21.5
|
|
Inventories
|
29.0
|
|
|
(23.8)
|
|
Prepaid income
taxes
|
1.3
|
|
|
44.7
|
|
Prepaid expenses and
other assets
|
(2.6)
|
|
|
9.8
|
|
Accounts
payable
|
(17.8)
|
|
|
(12.3)
|
|
Accrued expenses and
other liabilities
|
(19.3)
|
|
|
(6.5)
|
|
Deferred
revenue
|
7.3
|
|
|
9.1
|
|
Net cash provided by
operating activities
|
311.3
|
|
|
218.3
|
|
INVESTING
ACTIVITIES
|
|
|
|
Net proceeds from
sale of business
|
—
|
|
|
2.4
|
|
Purchase of property
and equipment
|
(20.0)
|
|
|
(19.8)
|
|
Increase in equipment
under customer usage agreements
|
(19.7)
|
|
|
(18.0)
|
|
Net (purchases) sales
of insurance contracts
|
(6.4)
|
|
|
13.8
|
|
Purchases of mutual
funds
|
—
|
|
|
(29.7)
|
|
Sales of mutual
funds
|
7.7
|
|
|
18.6
|
|
Increase in other
assets
|
(0.6)
|
|
|
(1.9)
|
|
Net cash used in
investing activities
|
(39.0)
|
|
|
(34.6)
|
|
FINANCING
ACTIVITIES
|
|
|
|
Repayment of
long-term debt
|
(357.5)
|
|
|
(562.5)
|
|
Payment of debt
issuance costs
|
—
|
|
|
(2.4)
|
|
Purchase of interest
rate caps
|
(6.1)
|
|
|
—
|
|
Payment of deferred
acquisition consideration
|
—
|
|
|
(5.0)
|
|
Net proceeds from
issuance of common stock pursuant to employee stock
plans
|
37.4
|
|
|
53.7
|
|
Excess tax benefit
related to equity awards
|
6.0
|
|
|
4.1
|
|
Payment of minimum tax
withholdings on net share settlements of equity awards
|
(12.1)
|
|
|
(9.1)
|
|
Net cash used in
financing activities
|
(332.3)
|
|
|
(521.2)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(5.6)
|
|
|
(0.5)
|
|
Net decrease in cash
and cash equivalents
|
(65.6)
|
|
|
(338.0)
|
|
Cash and cash
equivalents, beginning of period
|
736.1
|
|
|
822.5
|
|
Cash and cash
equivalents, end of period
|
$
|
670.5
|
|
|
$
|
484.5
|
|
HOLOGIC,
INC.
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS
|
Unaudited) (In
millions, except earnings per share)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
March 28,
2015
|
|
March 29,
2014
|
|
March 28,
2015
|
|
March 29,
2014
|
Gross
Profit:
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
336.0
|
|
|
$
|
282.1
|
|
|
$
|
674.6
|
|
|
$
|
587.7
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
intangible assets (1)
|
78.6
|
|
|
76.9
|
|
|
152.5
|
|
|
153.5
|
|
Fair value adjustment
to depreciation expense (2)
|
0.8
|
|
|
1.8
|
|
|
1.6
|
|
|
3.5
|
|
Acquisition and
integration-related costs (3)
|
0.1
|
|
|
2.9
|
|
|
0.3
|
|
|
5.8
|
|
Impairment charges
(4)
|
—
|
|
|
26.8
|
|
|
—
|
|
|
26.8
|
|
Other (5)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
Non-GAAP gross
profit
|
$
|
415.5
|
|
|
$
|
390.5
|
|
|
$
|
829.0
|
|
|
$
|
777.9
|
|
|
|
|
|
|
|
|
|
Gross Margin
Percentage:
|
|
|
|
|
|
|
|
GAAP gross margin
percentage
|
51.3
|
%
|
|
45.1
|
%
|
|
51.6
|
%
|
|
47.5
|
%
|
Impact of adjustments
above
|
12.1
|
%
|
|
17.4
|
%
|
|
11.8
|
%
|
|
15.4
|
%
|
Non-GAAP gross margin
percentage
|
63.4
|
%
|
|
62.5
|
%
|
|
63.4
|
%
|
|
62.9
|
%
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
226.2
|
|
|
$
|
231.9
|
|
|
$
|
461.3
|
|
|
$
|
476.2
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
intangible assets (1)
|
(27.6)
|
|
|
(29.1)
|
|
|
(55.4)
|
|
|
(55.3)
|
|
Fair value adjustment
to depreciation expense (2)
|
(0.7)
|
|
|
(1.3)
|
|
|
(1.3)
|
|
|
(2.7)
|
|
Acquisition and
integration-related costs (3)
|
—
|
|
|
(1.1)
|
|
|
—
|
|
|
(3.3)
|
|
Restructuring and
divestiture charges (3)
|
(2.0)
|
|
|
(11.6)
|
|
|
(10.0)
|
|
|
(30.0)
|
|
Impairment charges
(4)
|
—
|
|
|
(1.8)
|
|
|
—
|
|
|
(1.8)
|
|
Other (5)
|
—
|
|
|
0.9
|
|
|
(0.1)
|
|
|
0.9
|
|
Non-GAAP operating
expenses
|
$
|
195.9
|
|
|
$
|
187.9
|
|
|
$
|
394.5
|
|
|
$
|
384.0
|
|
|
|
|
|
|
|
|
|
Operating
Margin
|
|
|
|
|
|
|
|
GAAP income from
operations
|
$
|
109.8
|
|
|
$
|
50.2
|
|
|
$
|
213.3
|
|
|
$
|
111.5
|
|
Adjustments to gross
profit as detailed above
|
79.5
|
|
|
108.4
|
|
|
154.4
|
|
|
190.2
|
|
Adjustments to
operating expenses as detailed above
|
30.3
|
|
|
|
44.0
|
|
|
66.8
|
|
|
92.2
|
|
Non-GAAP income from
operations
|
$
|
219.6
|
|
|
$
|
202.6
|
|
|
$
|
434.5
|
|
|
$
|
393.9
|
|
|
|
|
|
|
|
|
|
Operating Margin
Percentage
|
|
|
|
|
|
|
|
GAAP operating margin
percentage
|
16.8
|
%
|
|
8.0
|
%
|
|
16.3
|
%
|
|
9.0
|
%
|
Impact of adjustments
above
|
16.7
|
%
|
|
24.4
|
%
|
|
16.9
|
%
|
|
22.8
|
%
|
Non-GAAP operating
margin percentage
|
33.5
|
%
|
|
32.4
|
%
|
|
33.2
|
%
|
|
31.8
|
%
|
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
|
GAAP interest
expense
|
$
|
49.4
|
|
|
$
|
54.4
|
|
|
$
|
101.9
|
|
|
$
|
115.7
|
|
Adjustments:
|
|
|
|
|
|
|
|
Non-cash interest
expense relating to convertible
notes (6)
|
(9.0)
|
|
|
(8.3)
|
|
|
(17.8)
|
|
|
(19.8)
|
|
Debt transaction
costs (7)
|
—
|
|
|
(1.0)
|
|
|
—
|
|
|
(1.0)
|
|
Non-GAAP interest
expense
|
$
|
40.4
|
|
|
$
|
45.1
|
|
|
$
|
84.1
|
|
|
$
|
94.9
|
|
|
|
|
|
|
|
|
|
Pre-Tax Income
(Loss):
|
|
|
|
|
|
|
|
GAAP pre-tax earnings
(loss)
|
$
|
60.8
|
|
|
$
|
(11.8)
|
|
|
$
|
104.9
|
|
|
$
|
(13.2)
|
|
Adjustments to
pre-tax earnings (loss) as detailed
above
|
118.7
|
|
|
161.8
|
|
|
239.1
|
|
|
303.2
|
|
Debt transaction
charges (7)
|
—
|
|
|
4.4
|
|
|
6.7
|
|
|
7.4
|
|
Other (5)
|
—
|
|
|
3.0
|
|
|
—
|
|
|
3.7
|
|
Non-GAAP pre-tax
Income
|
$
|
179.5
|
|
|
$
|
157.4
|
|
|
$
|
350.7
|
|
|
$
|
301.1
|
|
|
|
|
|
|
|
|
|
Net income
(loss):
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
|
47.8
|
|
|
$
|
(16.8)
|
|
|
$
|
77.0
|
|
|
$
|
(22.1)
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
intangible assets (1)
|
106.2
|
|
|
106.0
|
|
|
207.9
|
|
|
208.8
|
|
Non-cash interest
expense relating to convertible
notes (6)
|
9.0
|
|
|
8.3
|
|
|
17.8
|
|
|
19.9
|
|
Restructuring,
divestiture and acquisition-related
charges (3)
|
2.1
|
|
|
15.6
|
|
|
10.4
|
|
|
39.0
|
|
Fair value
adjustments (2)
|
1.4
|
|
|
3.1
|
|
|
2.9
|
|
|
6.2
|
|
Debt transaction
charges (7)
|
—
|
|
|
5.4
|
|
|
6.7
|
|
|
8.4
|
|
Asset impairment
charges (4)
|
—
|
|
|
28.6
|
|
|
—
|
|
|
28.6
|
|
Other charges
(5)
|
—
|
|
|
2.2
|
|
|
0.1
|
|
|
3.4
|
|
Income tax effect of
reconciling items (8)
|
(47.6)
|
|
|
(49.3)
|
|
|
(92.2)
|
|
|
(94.9)
|
|
Non-GAAP net
income
|
$
|
118.9
|
|
|
$
|
103.1
|
|
|
$
|
230.6
|
|
|
$
|
197.3
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share:
|
|
|
|
|
|
|
|
GAAP earnings (loss)
per share - Diluted
|
$
|
0.17
|
|
|
$
|
(0.06)
|
|
|
$
|
0.27
|
|
|
$
|
(0.08)
|
|
Adjustment to net
earnings (loss) (as detailed
below)
|
0.24
|
|
|
0.43
|
|
|
0.54
|
|
|
0.79
|
|
Non-GAAP earnings per
share – diluted (9)
|
$
|
0.41
|
|
|
$
|
0.37
|
|
|
$
|
0.81
|
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
$
|
118.9
|
|
|
$
|
103.1
|
|
|
$
|
230.6
|
|
|
$
|
197.3
|
|
Interest expense,
net, not adjusted above
|
40.2
|
|
|
45.0
|
|
|
83.4
|
|
|
94.3
|
|
Provision for income
taxes
|
60.6
|
|
|
54.3
|
|
|
120.1
|
|
|
103.9
|
|
Depreciation expense,
not adjusted above
|
18.9
|
|
|
20.0
|
|
|
37.6
|
|
|
40.4
|
|
Adjusted
EBITDA
|
$
|
238.6
|
|
|
$
|
222.4
|
|
|
$
|
471.7
|
|
|
$
|
435.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Explanatory Notes to Reconciliations:
(1) To reflect a non-cash charge attributable to the
amortization of intangible assets.
(2) To reflect non-cash fair value adjustments for additional
depreciation expense related to the fair value write-up of fixed
assets acquired in the Gen-Probe acquisition.
(3) To reflect restructuring and divestiture charges and certain
costs associated with the Company's acquisition(s) and integration
plans, which primarily include retention and transfer costs.
(4) To reflect a non-cash impairment charge on certain of the
Company's intangible assets and property and equipment related to
its MRI breast coils product line to record them at fair value in
fiscal 2014.
(5) To reflect the net impact from miscellaneous transactions
during the relevant period.
(6) To reflect certain non-cash interest expense related to the
amortization of the debt discount from the equity conversion option
of the Company's convertible notes.
(7) To reflect non-cash losses for partial extinguishment related
to voluntary prepayments and refinancings under the Credit
Agreement and related transaction costs.
(8) To reflect an estimated annual effective tax rate of 34.25% and
34.5% for fiscal 2015 and 2014, respectively.
(9) Non-GAAP earnings per share was calculated based on 287,580 and
276,546 weighted average diluted shares outstanding for the three
months ended March 28, 2015 and
March 29, 2014, respectively, and
285,378 and 276,008 weighted average diluted shares outstanding for
the six months ended March 28, 2015
and March 29, 2014,
respectively.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/hologic-announces-financial-results-for-second-quarter-fiscal-2015-300074393.html
SOURCE Hologic, Inc.