MARLBOROUGH, Mass.,
Nov. 4, 2015 /PRNewswire/
-- Hologic, Inc. (Nasdaq: HOLX) announced today the Company's
financial results for the fiscal fourth quarter ended September 26, 2015. The Company reported
revenue of $702.8 million, GAAP
diluted EPS of $0.09, and non-GAAP
diluted EPS of $0.43.
Revenue for the fourth quarter of fiscal 2015 grew 12.2% on a
constant currency basis, while non-GAAP diluted EPS increased
13.2%. These growth rates exclude from the prior year period
the one-time benefit of amending the Company's license agreement
with Roka Bioscience. This amendment added $20.1 million to revenue, and $0.05 to EPS, in the prior year
results.
"Hologic's strong fourth quarter financial results capped off an
outstanding year in which our people and our products enabled us to
exceed expectations across the board," said Steve MacMillan, the Company's Chairman,
President and Chief Executive Officer. "In the fourth
quarter, revenue again increased at a double-digit rate on a
constant currency basis excluding the one-time Roka benefit, while
earnings per share grew even faster. And importantly, all
four of our primary businesses grew in the United States and Internationally on a
constant currency basis."
Key financial results for the fiscal fourth quarter are shown
below. Throughout this press release, all dollar figures are
in millions, except EPS. Unless otherwise noted, all results
are on a reported basis, and are compared to the prior year
period.
|
GAAP
|
Non-GAAP
|
|
Q4'15
|
Q4'14*
|
Change
(Reported)
|
Q4'15
|
Q4'14*
|
Change
(Reported)
|
Change
(Reported,
Excluding Roka
Benefit)
|
|
Revenues
|
$702.8
|
$660.6
|
6.4%
|
$702.8
|
$660.6
|
6.4%
|
9.7%
|
|
Gross
Margin
|
54.0%
|
52.2%
|
180 bps
|
64.6%
|
64.7%
|
(10 bps)
|
100 bps
|
|
Operating
Expenses
|
$253.7
|
$253.1
|
0.3%
|
$218.7
|
$199.1
|
9.9%
|
9.9%
|
|
Operating
Margin
|
17.9%
|
13.9%
|
400 bps
|
33.5%
|
34.6%
|
(110 bps)
|
100 bps
|
|
Net Income
|
$25.2
|
$28.2
|
(10.9%)
|
$127.1
|
$120.0
|
5.9%
|
18.9%
|
|
Diluted
EPS
|
$0.09
|
$0.10
|
(10.0%)
|
$0.43
|
$0.43
|
0.0%
|
13.2%
|
Revenue Detail
Revenues grew in all four businesses globally on a constant
currency basis, and at a double-digit rate in three of four
businesses:
|
$s in
millions
|
Q4'15
|
Q4'14*
|
Change
(Reported)
|
Change
(Constant
Currency,
Excluding Roka
Benefit)**
|
|
Diagnostics
|
$304.2
|
$317.2
|
(4.1%)
|
4.4%
|
|
Breast
Health
|
$286.3
|
$241.5
|
18.6%
|
21.6%
|
|
GYN
Surgical
|
$86.8
|
$78.5
|
10.6%
|
12.9%
|
|
Skeletal
Health
|
$25.5
|
$23.4
|
8.8%
|
13.7%
|
|
Total
|
$702.8
|
$660.6
|
6.4%
|
12.2%
|
* These results include the one-time benefit of amending the
Company's license agreement with Roka. Excluding this benefit
(all of which was in the U.S.), Q4'14 total revenues would have
been $640.5 million, non-GAAP gross
margin would have been 63.6%, non-GAAP operating margin would have
been 32.5%, non-GAAP net income would have been $106.9 million, non-GAAP diluted EPS would have
been $0.38, and Diagnostics revenues
would have been $297.1 million.
** Including the Roka benefit, Diagnostics revenue decreased
(2.2%) in constant currency terms, and total revenue growth was
8.8%.
Other revenue highlights include:
- On a constant currency basis, revenues grew at double-digit
rates both domestically and internationally. U.S. revenues of
$538.1 million increased 7.7%, or
12.2% excluding the one-time Roka benefit from the prior year.
International revenues of $164.7
million increased 2.5%, or 12.5% on a constant currency
basis.
- In Breast Health, revenue from breast imaging products and
service totaled $241.6 million, an
increase of 23.1% on a reported basis and 26.2% on a constant
currency basis, as uptake of Hologic's GeniusTM 3D
MammographyTM systems continued to grow.
- In Diagnostics:
- Molecular diagnostics sales of $123.2
million decreased (9.0%) in constant currency. Excluding the
one-time Roka benefit from the prior year, molecular diagnostics
sales increased 5.1%, or 6.6% on a constant currency basis. Growth
was primarily due to continued strength across Aptima® women's
health products on the fully automated Panther® and Tigris®
platforms.
- Cytology and perinatal sales of $120.8
million decreased (0.1%) on a reported basis, but increased
3.2% on a constant currency basis. International sales grew 10.3%
on a constant currency basis, while domestic sales were flat.
- Blood screening revenue from Hologic's partner Grifols totaled
$60.2 million, an increase of 2.3%.
As previously discussed, the growth benefit from new business with
the Japanese Red Cross annualized in the fourth quarter.
- In GYN Surgical, MyoSure® system sales of $32.1 million increased 37.2% on a reported
basis, and 38.6% on a constant currency basis. NovaSure® system
sales of $54.3 million decreased
(0.4%) on a reported basis, but grew 2.3% on a constant currency
basis.
- In Skeletal Health, revenue of $25.5
million grew 8.8% on a reported basis, and 13.7% in constant
currency, reversing declines seen in the third quarter of fiscal
2015.
- In the fourth quarter, approximately 60% of total revenues were
from disposables, 25% were from capital equipment, and 15% were
from service and other sources.
Expense Detail
Gross margin was 54.0% on a GAAP basis, and 64.6% on a non-GAAP
basis. Gross margin improved mainly due to strong domestic
sales growth, favorable product mix in the Diagnostics and Breast
Health divisions, and operational efficiencies. These
benefits were partially offset by a stronger U.S. dollar.
Operating expenses were $253.7
million on a GAAP basis, and $218.7
million on a non-GAAP basis. Operating expenses
increased mainly due to marketing investments in the Breast Health
and Diagnostics divisions, as well as higher variable compensation
expense. As a percent of sales, non-GAAP operating expenses
were flat compared to the prior year period.
Other Key Financial Results
Adjusted non-GAAP earnings before interest, taxes, depreciation
and amortization (EBITDA) were $250.9
million, an increase of 10.5% excluding the one-time Roka
benefit.
Operating cash flow was $232.5
million, an increase of 76.4%, driven by net income growth
and working capital efficiencies. Free cash flow, defined as
operating cash flow less capital expenditures, was $201.3 million.
Total debt outstanding at the end of the fiscal fourth quarter
was $3,639.8 million, a decrease of
$627.9 million compared to the prior
year period. During the quarter, the Company repurchased
$300 million of its 2010 Convertible
Notes for $543.7 million, reducing
the future dilutive effect of these securities.
The Company ended the quarter with cash, cash equivalents and
restricted cash of $492.7
million.
Return on invested capital was 10.9% on a trailing 12 months
basis, an improvement of 160 basis points compared to the prior
year period.
Financial Guidance for Fiscal 2016
"We are very pleased with our financial performance and
prospects as we begin fiscal 2016," said Bob McMahon, Hologic's Chief Financial
Officer. "Building on our exceptional performance last year,
we anticipate revenues in 2016 to grow at a mid-single-digit rate
on a constant currency basis, with earnings per share increasing at
roughly double that pace."
The guidance below is based on recent foreign exchange rates, a
full-year tax rate of 34%, and diluted shares outstanding of
between 302 and 305 million for the full year.
|
Fiscal 2016
Guidance
|
Change vs. Prior Year
Period (As Reported)
|
Change vs. Prior Year
Period (Constant Currency)
|
|
Revenues
|
$2,810 to $2,840
million
|
3.9% to
5.0%
|
4.4% to
5.5%
|
|
Non-GAAP
EPS
|
$1.80 to
$1.84
|
7.8% to
10.2%
|
8.7% to
11.1%
|
For the first quarter of fiscal 2016, Hologic expects:
|
New
Guidance
|
Change vs. Prior Year
Period
(As Reported)
|
Change vs. Prior Year
Period (Constant Currency)
|
|
Revenues
|
$680 to $690
million
|
4.2% to
5.7%
|
5.7% to
7.2%
|
|
Non-GAAP
EPS
|
$0.41 to
$0.42
|
5.1% to
7.7%
|
7.7% to
10.3%
|
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 and accelerated depreciation expense; (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.
These non-GAAP financial measures should be considered
supplemental to, and not a substitute for, financial information
prepared in accordance with GAAP. The company's definition of
these non-GAAP measures may differ from similarly titled measures
used by others.
The non-GAAP financial measures used in this press release
adjust for specified items that can be highly variable or difficult
to predict. The company generally uses these non-GAAP
financial measures to facilitate management's financial and
operational decision-making, including evaluation of Hologic's
historical operating results, comparison to competitors' operating
results and determination of management incentive
compensation. These non-GAAP financial measures reflect an
additional way of viewing aspects of the company's operations that,
when viewed with GAAP results and the reconciliations to
corresponding GAAP financial measures, may provide a more complete
understanding of factors and trends affecting Hologic's
business.
Because non-GAAP financial measures exclude the effect of items
that will increase or decrease the company's reported results of
operations, management strongly encourages investors to review the
company's consolidated financial statements and publicly filed
reports in their entirety. A reconciliation of the non-GAAP
financial measures to the most directly comparable GAAP financial
measures is included in the tables accompanying this release.
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 financial
results for the fourth quarter of fiscal 2015. Approximately
10 minutes before the call, dial 877-681-3375 (U.S. and
Canada) or 719-325-4876
(international) and enter access code 7129201. A replay will
be available starting two hours after the call ends through
November 27, 2015, at 888-203-1112
(U.S. and Canada) or 719-457-0820
(international), access code 7129201. 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, the need to comply with especially high
standards for the manufacture of many of its products and risks
associated with utilizing third party manufacturers; 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
|
|
Years
Ended
|
|
September 26,
2015
|
|
September 27,
2014
|
|
September 26,
2015
|
|
September 27,
2014
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Product
|
$
|
594.4
|
|
|
$
|
532.1
|
|
|
$
|
2,270.4
|
|
|
$
|
2,094.9
|
|
|
Service and
other
|
108.4
|
|
|
128.5
|
|
|
434.6
|
|
|
435.8
|
|
|
Total
revenues
|
702.8
|
|
|
660.6
|
|
|
2,705.0
|
|
|
2,530.7
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
Product
|
195.9
|
|
|
182.0
|
|
|
755.5
|
|
|
731.3
|
|
|
Amortization of
intangible assets
|
74.1
|
|
|
80.5
|
|
|
299.7
|
|
|
314.6
|
|
|
Impairment of
intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
26.6
|
|
|
Service and
other
|
53.4
|
|
|
53.1
|
|
|
217.1
|
|
|
212.7
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
379.4
|
|
|
345.0
|
|
|
1,432.7
|
|
|
1,245.5
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
53.8
|
|
|
52.1
|
|
|
214.9
|
|
|
203.2
|
|
|
Selling and
marketing
|
99.7
|
|
|
86.8
|
|
|
363.0
|
|
|
331.7
|
|
|
General and
administrative
|
66.2
|
|
|
65.2
|
|
|
261.0
|
|
|
259.8
|
|
|
Amortization of
intangible assets
|
27.5
|
|
|
28.8
|
|
|
110.2
|
|
|
113.8
|
|
|
Impairment of
intangible assets
|
—
|
|
|
5.1
|
|
|
—
|
|
|
5.6
|
|
|
Restructuring and
divestiture charges
|
6.5
|
|
|
15.1
|
|
|
28.5
|
|
|
51.7
|
|
|
Total operating
expenses
|
253.7
|
|
|
253.1
|
|
|
977.6
|
|
|
965.8
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
125.7
|
|
|
91.9
|
|
|
455.1
|
|
|
279.7
|
|
|
Interest
income
|
0.3
|
|
|
0.5
|
|
|
1.3
|
|
|
1.3
|
|
|
Interest
expense
|
(51.2)
|
|
|
(52.4)
|
|
|
(205.5)
|
|
|
(220.6)
|
|
|
Debt extinguishment
loss
|
(37.8)
|
|
|
—
|
|
|
(62.7)
|
|
|
(7.4)
|
|
|
Other expense,
net
|
(11.5)
|
|
|
(1.3)
|
|
|
(11.0)
|
|
|
(4.9)
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
25.5
|
|
|
38.7
|
|
|
177.2
|
|
|
48.1
|
|
|
Provision for income
taxes
|
0.3
|
|
|
10.5
|
|
|
45.6
|
|
|
30.8
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
25.2
|
|
|
$
|
28.2
|
|
|
$
|
131.6
|
|
|
$
|
17.3
|
|
|
|
|
|
|
|
|
|
|
Net income per
common share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.09
|
|
|
$
|
0.10
|
|
|
$
|
0.47
|
|
|
$
|
0.06
|
|
|
Diluted
|
$
|
0.09
|
|
|
$
|
0.10
|
|
|
$
|
0.45
|
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
282,072
|
|
|
277,855
|
|
|
280,566
|
|
|
275,499
|
|
|
Diluted
|
294,778
|
|
|
282,217
|
|
|
289,537
|
|
|
278,360
|
|
|
HOLOGIC,
INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
(In
millions)
|
|
|
September 26,
2015
|
|
September 27,
2014
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
492.7
|
|
|
$
|
741.6
|
|
|
Accounts receivable,
net
|
416.1
|
|
|
396.0
|
|
|
Inventories
|
283.1
|
|
|
330.6
|
|
|
Deferred income
taxes
|
19.0
|
|
|
39.4
|
|
|
Other current
assets
|
55.5
|
|
|
58.2
|
|
|
Total current
assets
|
1,266.4
|
|
|
1,565.8
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
457.1
|
|
|
461.9
|
|
|
Goodwill and
intangible assets
|
5,831.4
|
|
|
6,244.4
|
|
|
Other
assets
|
115.2
|
|
|
142.6
|
|
|
Total
assets
|
$
|
7,670.1
|
|
|
$
|
8,414.7
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
long-term debt
|
$
|
391.8
|
|
|
$
|
114.5
|
|
|
Accounts payable and
accrued liabilities
|
389.1
|
|
|
354.2
|
|
|
Deferred
revenue
|
163.1
|
|
|
150.9
|
|
|
Total current
liabilities
|
944.0
|
|
|
619.6
|
|
|
|
|
|
|
Long-term debt, net
of current portion
|
3,248.0
|
|
|
4,153.2
|
|
|
Deferred income
taxes
|
1,178.4
|
|
|
1,375.4
|
|
|
Other long-term
liabilities
|
220.5
|
|
|
203.5
|
|
|
Total
liabilities
|
5,590.9
|
|
|
6,351.7
|
|
|
Total stockholders'
equity
|
2,079.2
|
|
|
2,063.0
|
|
|
Total liabilities
and stockholders' equity
|
$
|
7,670.1
|
|
|
$
|
8,414.7
|
|
|
HOLOGIC,
INC.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
(in
millions)
|
|
|
Years
Ended
|
|
September 26,
2015
|
|
September 27,
2014
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
Net income
|
$
|
131.6
|
|
|
$
|
17.3
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
81.5
|
|
|
94.7
|
|
|
Amortization
|
409.9
|
|
|
428.5
|
|
|
Non-cash interest
expense
|
63.8
|
|
|
68.7
|
|
|
Stock-based
compensation expense
|
59.3
|
|
|
50.0
|
|
|
Excess tax benefit
related to equity awards
|
(10.7)
|
|
|
(5.7)
|
|
|
Deferred income
taxes
|
(148.8)
|
|
|
(243.1)
|
|
|
Asset impairment
charges
|
—
|
|
|
38.4
|
|
|
Debt extinguishment
loss
|
62.7
|
|
|
7.4
|
|
|
Equity investment
impairment charges
|
7.8
|
|
|
6.9
|
|
|
Loss on disposal of
property and equipment
|
6.6
|
|
|
7.1
|
|
|
Loss on disposal of
business
|
9.6
|
|
|
5.5
|
|
|
Other adjustments and
non-cash items
|
14.3
|
|
|
(11.8)
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(30.3)
|
|
|
7.9
|
|
|
Inventories
|
43.9
|
|
|
(44.7)
|
|
|
Prepaid income
taxes
|
0.7
|
|
|
22.4
|
|
|
Prepaid expenses and
other assets
|
5.7
|
|
|
17.3
|
|
|
Accounts
payable
|
25.5
|
|
|
11.8
|
|
|
Accrued expenses and
other liabilities
|
36.9
|
|
|
14.7
|
|
|
Deferred
revenue
|
16.1
|
|
|
15.1
|
|
|
Net cash provided by
operating activities
|
786.1
|
|
|
508.4
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
Net proceeds from
sale of business
|
—
|
|
|
10.1
|
|
|
Purchase of property
and equipment
|
(48.1)
|
|
|
(44.3)
|
|
|
Increase in equipment
under customer usage agreements
|
(41.3)
|
|
|
(35.9)
|
|
|
Net (purchases) sales
of insurance contracts
|
(6.4)
|
|
|
13.8
|
|
|
Purchases of mutual
funds
|
—
|
|
|
(29.7)
|
|
|
Sales of mutual
funds
|
10.0
|
|
|
22.4
|
|
|
Increase in other
assets
|
(0.3)
|
|
|
(3.4)
|
|
|
Net cash used in
investing activities
|
(86.1)
|
|
|
(67.0)
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
Proceeds from
long-term debt
|
2,495.1
|
|
|
—
|
|
|
Repayment of
long-term debt
|
(3,095.0)
|
|
|
(595.0)
|
|
|
Payments to
extinguish convertible notes
|
(543.7)
|
|
|
—
|
|
|
Proceeds from
revolving credit line
|
358.0
|
|
|
—
|
|
|
Repayment of
revolving credit line
|
(183.0)
|
|
|
—
|
|
|
Payment of debt
issuance costs
|
(22.7)
|
|
|
(2.4)
|
|
|
Purchase of interest
rate caps
|
(13.2)
|
|
|
—
|
|
|
Payment of deferred
acquisition consideration
|
—
|
|
|
(5.0)
|
|
|
Net proceeds from
issuance of common stock pursuant to employee stock
plans
|
70.0
|
|
|
81.4
|
|
|
Excess tax benefit
related to equity awards
|
10.7
|
|
|
5.7
|
|
|
Payment of minimum
tax withholdings on net share settlements of equity
awards
|
(12.9)
|
|
|
(9.8)
|
|
|
Net cash used in
financing activities
|
(936.7)
|
|
|
(525.1)
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(8.1)
|
|
|
(2.7)
|
|
|
Net decrease in cash
and cash equivalents
|
(244.8)
|
|
|
(86.4)
|
|
|
Cash and cash
equivalents, beginning of period
|
736.1
|
|
|
822.5
|
|
|
Cash and cash
equivalents, end of period
|
$
|
491.3
|
|
|
$
|
736.1
|
|
|
HOLOGIC,
INC.
|
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS (Unaudited)
|
|
(In millions, except
earnings per share)
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
September 26,
2015
|
|
September 27,
2014
|
|
September 26,
2015
|
|
September 27,
2014
|
|
|
Gross
Profit:
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
379.4
|
|
|
$
|
345.0
|
|
|
$
|
1,432.7
|
|
|
$
|
1,245.5
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets (1)
|
74.1
|
|
|
80.5
|
|
|
299.7
|
|
|
314.6
|
|
|
Incremental
depreciation expense (2)
|
0.6
|
|
|
1.1
|
|
|
3.0
|
|
|
6.3
|
|
|
Acquisition and
integration- related costs (3)
|
—
|
|
|
1.0
|
|
|
0.5
|
|
|
10.5
|
|
|
Impairment charges
(4)
|
—
|
|
|
—
|
|
|
—
|
|
|
26.6
|
|
|
Non-GAAP gross
profit
|
$
|
454.1
|
|
|
$
|
427.6
|
|
|
$
|
1,735.9
|
|
|
$
|
1,603.5
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
Percentage:
|
|
|
|
|
|
|
|
|
GAAP gross margin
percentage
|
54.0
|
%
|
|
52.2
|
%
|
|
53.0
|
%
|
|
49.2
|
%
|
|
Impact of adjustments
above
|
10.6
|
%
|
|
12.5
|
%
|
|
11.2
|
%
|
|
14.2
|
%
|
|
Non-GAAP gross margin
percentage
|
64.6
|
%
|
|
64.7
|
%
|
|
64.2
|
%
|
|
63.4
|
%
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
253.7
|
|
|
$
|
253.1
|
|
|
$
|
977.6
|
|
|
$
|
965.8
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets (1)
|
(27.5)
|
|
|
(28.8)
|
|
|
(110.2)
|
|
|
(113.8)
|
|
|
Incremental
depreciation expense (2)
|
(0.9)
|
|
|
(0.9)
|
|
|
(3.2)
|
|
|
(4.8)
|
|
|
Acquisition and
integration- related costs (3)
|
(0.1)
|
|
|
(0.4)
|
|
|
(0.1)
|
|
|
(4.6)
|
|
|
Restructuring and
divestiture charges (3)
|
(6.5)
|
|
|
(15.1)
|
|
|
(28.5)
|
|
|
(51.7)
|
|
|
Impairment charges
(4)
|
—
|
|
|
(5.1)
|
|
|
—
|
|
|
(6.9)
|
|
|
Other (5)
|
—
|
|
|
(3.7)
|
|
|
(0.1)
|
|
|
(2.9)
|
|
|
Non-GAAP operating
expenses
|
$
|
218.7
|
|
|
$
|
199.1
|
|
|
$
|
835.5
|
|
|
$
|
781.1
|
|
|
|
|
|
|
|
|
|
|
Operating
Margin:
|
|
|
|
|
|
|
|
|
GAAP income from
operations
|
125.7
|
|
|
91.9
|
|
|
455.1
|
|
|
279.7
|
|
|
Adjustments to gross
profit as detailed above
|
74.7
|
|
|
82.6
|
|
|
303.2
|
|
|
358.0
|
|
|
Adjustments to
operating expenses as detailed above
|
35.0
|
|
|
54.0
|
|
|
142.1
|
|
|
184.7
|
|
|
Non-GAAP income from
operations
|
$
|
235.4
|
|
|
$
|
228.5
|
|
|
$
|
900.4
|
|
|
$
|
822.4
|
|
|
|
|
|
|
|
|
|
|
Operating Margin
Percentage:
|
|
|
|
|
|
|
|
|
GAAP income from
operations margin percentage
|
17.9
|
%
|
|
13.9
|
%
|
|
16.8
|
%
|
|
11.1
|
%
|
|
Impact of adjustments
above
|
15.6
|
%
|
|
20.7
|
%
|
|
16.5
|
%
|
|
21.4
|
%
|
|
Non-GAAP operating
margin percentage
|
33.5
|
%
|
|
34.6
|
%
|
|
33.3
|
%
|
|
32.5
|
%
|
|
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
|
|
GAAP interest
expense
|
$
|
51.2
|
|
|
$
|
52.4
|
|
|
$
|
205.5
|
|
|
$
|
220.6
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Non-cash interest
expense relating to convertible notes (6)
|
(7.9)
|
|
|
(8.7)
|
|
|
(34.9)
|
|
|
(37.1)
|
|
|
Debt transaction
costs (7)
|
(4.7)
|
|
|
—
|
|
|
(9.3)
|
|
|
(1.0)
|
|
|
Non-GAAP interest
expense
|
$
|
38.6
|
|
|
$
|
43.7
|
|
|
$
|
161.3
|
|
|
$
|
182.5
|
|
|
|
|
|
|
|
|
|
|
Pre-Tax
Income:
|
|
|
|
|
|
|
|
|
GAAP pre-tax
earnings
|
$
|
25.5
|
|
|
$
|
38.7
|
|
|
$
|
177.2
|
|
|
$
|
48.1
|
|
|
Adjustments to
pre-tax earnings as detailed above
|
122.3
|
|
|
145.2
|
|
|
489.4
|
|
|
580.8
|
|
|
Debt extinguishment
loss (7)
|
37.8
|
|
|
—
|
|
|
62.7
|
|
|
7.4
|
|
|
Other (5)
|
7.8
|
|
|
—
|
|
|
7.8
|
|
|
6.9
|
|
|
Non-GAAP pre-tax
Income
|
$
|
193.4
|
|
|
$
|
183.9
|
|
|
$
|
737.1
|
|
|
$
|
643.2
|
|
|
|
|
|
|
|
|
|
|
Net
income:
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
|
25.2
|
|
|
$
|
28.2
|
|
|
$
|
131.6
|
|
|
$
|
17.3
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets (1)
|
101.6
|
|
|
109.3
|
|
|
409.9
|
|
|
428.4
|
|
|
Non-cash interest
expense relating to convertible notes (6)
|
7.9
|
|
|
8.7
|
|
|
34.9
|
|
|
37.1
|
|
|
Restructuring,
divestiture, acquisition and integration-related charges
(3)
|
6.6
|
|
|
16.5
|
|
|
29.1
|
|
|
66.8
|
|
|
Incremental
depreciation expenses (2)
|
1.5
|
|
|
2.0
|
|
|
6.2
|
|
|
11.1
|
|
|
Debt extinguishment
loss and transaction charges (7)
|
42.5
|
|
|
—
|
|
|
72.0
|
|
|
8.4
|
|
|
Asset impairment
charges (4)
|
—
|
|
|
5.1
|
|
|
—
|
|
|
33.5
|
|
|
Other charges
(5)
|
7.8
|
|
|
3.7
|
|
|
7.9
|
|
|
9.8
|
|
|
Income tax effect of
reconciling items (8)
|
(66.0)
|
|
|
(53.5)
|
|
|
(206.9)
|
|
|
(192.7)
|
|
|
Non-GAAP net
income
|
$
|
127.1
|
|
|
$
|
120.0
|
|
|
$
|
484.7
|
|
|
$
|
419.7
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
GAAP earnings per
share - Diluted
|
$
|
0.09
|
|
|
$
|
0.10
|
|
|
$
|
0.45
|
|
|
$
|
0.06
|
|
|
Adjustment to net
earnings (as detailed above)
|
0.34
|
|
|
0.33
|
|
|
1.22
|
|
|
1.45
|
|
|
Non-GAAP earnings per
share – diluted (9)
|
$
|
0.43
|
|
|
$
|
0.43
|
|
|
$
|
1.67
|
|
|
$
|
1.51
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
$
|
127.1
|
|
|
$
|
120.0
|
|
|
$
|
484.7
|
|
|
$
|
419.7
|
|
|
Interest expense,
net, not adjusted above
|
38.3
|
|
|
43.3
|
|
|
160.0
|
|
|
181.2
|
|
|
Provision for income
taxes
|
66.3
|
|
|
63.9
|
|
|
252.5
|
|
|
223.5
|
|
|
Depreciation expense,
not adjusted above
|
19.2
|
|
|
19.9
|
|
|
75.1
|
|
|
80.3
|
|
|
Adjusted
EBITDA
|
$
|
250.9
|
|
|
$
|
247.1
|
|
|
$
|
972.3
|
|
|
$
|
904.7
|
|
Explanatory Notes to Reconciliations:
|
(1)
|
To reflect non-cash
expenses 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 and accelerated depreciation expense related
to facility closure and consolidation.
|
|
(3)
|
To reflect
restructuring and divestiture charges and certain costs associated
with the Company's acquisition(s), integration and consolidation
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 and the impairments for
inventory and equipment due to cost containment and consolidation
plans.
|
|
(5)
|
To reflect the net
impact from miscellaneous transactions during the relevant period,
including equity investment impairments.
|
|
(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 losses for
extinguishment and partial extinguishment related to voluntary
prepayments and refinancings under the Credit Agreement and Senior
Notes and repurchases of $300 million of the 2010 Convertible
Notes, and related cash transaction costs.
|
|
(8)
|
To reflect an
estimated annual Non-GAAP effective tax rate of 34.25% and 34.75%
for fiscal 2015 and 2014, respectively.
|
|
(9)
|
Non-GAAP earnings per
share was calculated based on 294,778 and 282,217 weighted average
diluted shares outstanding for the three months ended
September 26, 2015 and September 27, 2014, respectively,
and 289,537 and 278,360 weighted average diluted shares outstanding
for the years ended September 26, 2015 and September 27,
2014, respectively.
|
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visit:http://www.prnewswire.com/news-releases/hologic-announces-financial-results-for-fourth-quarter-of-fiscal-2015-300171854.html
SOURCE Hologic, Inc.