MARLBOROUGH, Mass.,
Nov. 8, 2017 /PRNewswire/
-- Hologic, Inc. (Nasdaq: HOLX) announced today the Company's
financial results for the fiscal fourth quarter ended September 30, 2017.
Revenue of $802.9 million
increased 10.5%, or 9.9% in constant currency, compared to the
prior year period. Excluding the net impact of the Cynosure
acquisition and blood screening divestiture, fourth-quarter revenue
increased 5.0%, or 4.4% in constant currency.
GAAP diluted earnings per share (EPS) of $0.29 decreased (12.1%) compared to the prior
year period, while non-GAAP diluted EPS of $0.50 decreased (3.8%).
"We finished a successful and productive fiscal year with a
strong performance in the fourth quarter, as revenue exceeded our
guidance and sales growth, net of acquisitions and divestitures,
accelerated on a sequential basis versus the third quarter," said
Steve MacMillan, Hologic's Chairman,
President and Chief Executive Officer. "All our legacy
divisions grew on a global basis net of divestitures, while our
international and molecular diagnostics franchises delivered
double-digit growth. For the full year, we met our financial
commitments and strengthened our future by shifting our portfolio
toward higher-growth markets, and by advancing our research and
development pipelines."
Key financial results for the fiscal fourth quarter
were:
|
GAAP
|
Non-GAAP
|
|
Q4'17
|
Q4'16
|
Change
Increase
(Decrease)
|
Q4'17
|
Q4'16
|
Change
Increase
(Decrease)
|
Revenues
|
$802.9
|
$726.8
|
10.5%
|
$802.9
|
$726.8
|
10.5%
|
Gross
Margin
|
52.0%
|
55.9%
|
(390 bps)
|
64.1%
|
65.7%
|
(160 bps)
|
Operating
Expenses
|
$308.5
|
$259.0
|
19.1%
|
$275.8
|
$235.5
|
17.1%
|
Operating
Margin
|
13.6%
|
20.2%
|
(660 bps)
|
29.8%
|
33.3%
|
(350 bps)
|
Net Margin
|
10.3%
|
12.7%
|
(240 bps)
|
17.8%
|
20.0%
|
(220 bps)
|
Diluted
EPS
|
$0.29
|
$0.33
|
(12.1%)
|
$0.50
|
$0.52
|
(3.8%)
|
Throughout this press release, all dollar figures are in
millions, except EPS. Some totals may not foot due to
rounding. Unless otherwise noted, all results are compared to
the corresponding prior year period. Non-GAAP results exclude
a number of cash and non-cash items as discussed under "Use of
Non-GAAP Financial Measures."
Revenue Detail
$s in
millions
|
Q4'17
|
Q4'16
|
Reported
Change
|
Constant Currency
Change
|
Cytology &
Perinatal
|
$120.2
|
$121.0
|
(0.7%)
|
(1.4%)
|
Molecular
Diagnostics
|
$153.5
|
$134.3
|
14.3%
|
13.8%
|
Blood
Screening
|
$18.0
|
$56.6
|
(68.2%)
|
(68.2%)
|
Total
Diagnostics
|
$291.7
|
$311.9
|
(6.5%)
|
(7.0%)
|
Total Diagnostics
ex. Blood
|
$273.7
|
$255.3
|
7.2%
|
6.6%
|
Breast Imaging
|
$255.5
|
$248.8
|
2.7%
|
2.2%
|
Interventional Breast
Solutions
|
$42.3
|
$40.9
|
3.6%
|
3.1%
|
Other
|
$3.1
|
$2.6
|
15.3%
|
9.3%
|
Total Breast
Health
|
$300.9
|
$292.3
|
2.9%
|
2.4%
|
Body
|
$22.2
|
-
|
-
|
-
|
Skin
|
$32.6
|
-
|
-
|
-
|
Women's
Health/Other
|
$26.6
|
-
|
-
|
-
|
Total Medical
Aesthetics
|
$81.4
|
-
|
-
|
-
|
GYN
Surgical
|
$104.7
|
$101.5
|
3.2%
|
2.7%
|
Skeletal
Health
|
$24.2
|
$21.2
|
14.2%
|
12.9%
|
Total
|
$802.9
|
$726.8
|
10.5%
|
9.9%
|
Quarterly revenue highlights:
- U.S. revenue of $613.0 million
increased 6.1%, and international revenue of $189.9 million increased 27.5%, or 24.7% in
constant currency. Excluding blood screening and Medical
Aesthetics, U.S. revenue increased 1.4%, while international
revenues increased 20.8%, or 17.5% in constant currency.
- In Diagnostics:
-
- Molecular diagnostics sales of $153.5
million increased 14.3%, or 13.8% in constant currency,
driven primarily by continued strength across Aptima® women's
health products globally.
- Cytology and perinatal sales of $120.2
million decreased (0.7%), or (1.4%) in constant currency,
due primarily to lower sales of perinatal products.
- Breast Health revenue totaled $300.9
million, an increase of 2.9%, or 2.4% in constant currency,
faster growth than in the third quarter. Revenue in the United States decreased (1.2%), as changes
in product mix were partially offset by increases in service and
new product revenue. International revenue increased 24.1%, or
20.6% in constant currency.
- GYN Surgical revenue of $104.7
million increased 3.2%, or 2.7% in constant currency.
MyoSure® system revenue of $50.0
million increased 17.3%, or 17.0% in constant currency,
while NovaSure® revenue of $54.7
million decreased (6.6%), or (7.2%) in constant
currency.
- In Skeletal Health, revenue of $24.2
million increased 14.2%, or 12.9% in constant currency,
reversing recent declines.
Segment revenue highlights by geography are shown below:
|
U.S.
Change
|
International
Change
(Reported)
|
International
Change
(Constant
Currency)
|
Increase
(Decrease)
|
Diagnostics
|
(2.1%)
|
(19.2%)
|
(21.3%)
|
Diagnostics ex. Blood
|
3.9%
|
19.5%
|
16.5%
|
Breast
Health
|
(1.2%)
|
24.1%
|
20.6%
|
Medical
Aesthetics
|
-
|
-
|
-
|
GYN
Surgical
|
1.9%
|
11.1%
|
7.9%
|
Skeletal
Health
|
7.5%
|
26.2%
|
22.6%
|
Total
Revenues
|
6.1%
|
27.5%
|
24.7%
|
Total
Revenues ex. Blood and Medical Aesthetics
|
1.4%
|
20.8%
|
17.5%
|
Expense Detail
Gross margin was 52.0% on a GAAP basis, and 64.1% on a non-GAAP
basis. GAAP gross margin declined by 390 basis points, while
non-GAAP gross margin declined by 160 basis points. These
declines were primarily related to sales mix associated with the
divestiture of the higher-margin blood screening business and sales
of lower-margin Cynosure products. These factors were
partially offset by manufacturing efficiencies, an increase in
high-margin royalty revenue, and favorable foreign exchange
rates.
Operating expenses were $308.5
million on a GAAP basis, and $275.8
million on a non-GAAP basis. GAAP operating expenses
increased 19.1% and non-GAAP operating expenses increased 17.1%
primarily due to the inclusion of Cynosure expenses.
The quarterly effective tax rate was a benefit of (14.2%) on a
GAAP basis, and a provision of 30.5% on a non-GAAP basis. The
difference in these rates was primarily due to the income tax
effect of statutes of limitations expiring and audit settlements
related to prior years not reflected in the non-GAAP results.
Other Key Financial Results
GAAP net income for the fourth quarter was $82.7 million, a decrease of (10.3%).
Adjusted non-GAAP earnings before interest, taxes, depreciation and
amortization (EBITDA) for the fourth quarter was $262.7 million, a decrease of (0.5%).
Operating cash flow for the fourth quarter was $166.5 million. Free cash flow, defined as
operating cash flow less capital expenditures, was $132.9 million.
During the fourth quarter, Hologic repurchased $85.9 million in principal of its 2012 and 2013
convertible notes for a total of $106.1
million. The Company also repurchased 5.3 million
shares of its common stock for $200.1
million.
Total debt outstanding at the end of the quarter was
$3.3 billion. The company ended
the quarter with cash and equivalents of $0.5 billion, and a net leverage ratio (net debt
over adjusted EBITDA) of 2.7 times.
On a trailing 12 months basis, adjusted ROIC of 12.6% declined
10 basis points compared to the prior year period.
Financial Guidance for Fiscal 2018
"We expect to post solid, mid-single-digit organic revenue
growth in fiscal 2018," said Bob
McMahon, Hologic's Chief Financial Officer. "At the
same time, after adjusting for the blood screening divestiture, we
anticipate much faster EPS growth driven by healthy operating
margin expansion."
For fiscal 2018, "organic revenue" is defined as total revenue
less blood screening revenue for the full year and medical
aesthetics revenue for the first two quarters of fiscal 2018.
Medical aesthetics revenue is included in organic revenue for the
third and fourth quarters of fiscal 2018. In addition,
organic revenue growth rates adjust for the extra selling days in
Hologic's 2017 fiscal year, and non-recurring royalty revenue in
Diagnostics. Together, these two non-recurring factors are
estimated to contribute approximately 100 basis points to organic
growth.
Hologic's financial guidance for fiscal 2018 is shown in the two
tables immediately below. As a reminder, percentage changes
versus the prior year are affected by the blood screening
divestiture and the Cynosure acquisition, both of which closed in
the second quarter of fiscal 2017. The guidance is based on a
full year non-GAAP tax rate of approximately 31% and diluted shares
outstanding of 284 million for the full year. Constant
currency guidance assumes that foreign exchange rates are the same
in fiscal 2018 as in fiscal 2017. Current guidance assumes
that recent foreign exchange rates persist for all of fiscal
2018.
|
GAAP
|
Revenue
|
EPS
|
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Current Guidance
for
Fiscal 2018
|
4.6% to
7.2%
|
$3,200 to $3,280
million
|
(53.8%) to
(51.9%)
|
$1.22 to
$1.27
|
|
|
Non-GAAP
|
Revenue
|
EPS
|
|
Constant
Currency %
Increase
(Decrease)
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Current Guidance
for
Fiscal 2018
|
4.0% to
6.6%
|
4.6% to
7.2%
|
$3,200 to
$3,280 million
|
3.4% to
5.9%
|
$2.10 to
$2.15
|
Hologic's financial guidance for the first quarter of fiscal
2018 is shown in the two tables immediately below. As a
reminder, percentage changes versus the prior year period are
affected by the blood screening divestiture and the Cynosure
acquisition, both of which closed in the second quarter of fiscal
2017. In addition, Hologic's first quarter of fiscal 2018
includes four fewer shipping days than the prior year
period.
|
GAAP
|
Revenue
|
EPS
|
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Current Guidance for
the First
Quarter of Fiscal 2018
|
5.5% to
7.6%
|
$775 to $790
million
|
(16.7%) to
(10.0%)
|
$0.25 to
$0.27
|
|
|
Non-GAAP
|
Revenue
|
EPS
|
|
Constant
Currency %
Increase
(Decrease)
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Current Guidance for
the First
Quarter of Fiscal 2018
|
4.7% to
6.7%
|
5.5% to
7.6%
|
$775 to
$790 million
|
(7.7%) to
(3.8%)
|
$0.48 to
$0.50
|
To assist with "apples to apples" analyses of Hologic's ongoing,
base business, the historical contributions of blood screening to
Hologic's quarterly revenues and EPS are shown below:
|
GAAP
|
|
2016
|
2017
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Total
|
Q1
|
Q2
|
Q3
|
Q4
|
Total
|
Revenue
|
$60.7
|
$62.2
|
$55.9
|
$56.6
|
$235.4
|
$65.2
|
$38.3
|
$19.0
|
$18.0
|
$140.5
|
EPS
|
$0.06
|
$0.06
|
$0.05
|
$0.05
|
$0.22
|
$0.06
|
$1.62
|
$0.01
|
$0.01
|
$1.70
|
|
|
Non-GAAP
|
|
2016
|
2017
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Total
|
Q1
|
Q2
|
Q3
|
Q4
|
Total
|
Revenue
|
$60.7
|
$62.2
|
$55.9
|
$56.6
|
$235.4
|
$65.2
|
$38.3
|
$19.0
|
$18.0
|
$140.5
|
EPS
|
$0.10
|
$0.10
|
$0.09
|
$0.09
|
$0.37
|
$0.10
|
$0.04
|
$0.01
|
$0.01
|
$0.16
|
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 profit; non-GAAP gross margin; non-GAAP operating
expenses; non-GAAP income from operations; non-GAAP operating
margin; non-GAAP interest expense; non-GAAP pre-tax income;
non-GAAP net margin; non-GAAP net income; non-GAAP diluted EPS;
adjusted EBITDA; and return on invested capital. Constant currency
presentations show reported period operating results as if the
foreign exchange rates remain the same as those in effect in the
comparable prior year period. 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;
(ii) additional depreciation expense from acquired fixed assets and
accelerated depreciation related to business consolidation and
closure of facilities; (iii) additional expense resulting from the
purchase accounting adjustment to record inventory at fair value;
(iv) non-cash interest expense related to amortization of the debt
discount from the equity conversion option of the convertible
notes; (v) restructuring and divestiture charges, facility closure
and consolidation charges and costs incurred to integrate
acquisitions (including retention, transaction bonuses, legal and
professional consulting services) and separate divested businesses
from existing operations; (vi) transaction related expenses for
divestitures and acquisitions; (vii) gain on disposal of business;
(viii) debt extinguishment losses and related transaction costs;
(ix) the unrealized (gains) losses on the mark-to-market of forward
foreign currency contracts for which the Company has not elected
hedge accounting; (x) litigation settlement charges (benefits) and
non-income tax related charges (benefits); (xi)
other-than-temporary impairment losses on investments and realized
(gains) losses resulting from the sale of investments; (xii) other
one-time, non-recurring, unusual or infrequent charges, expenses or
gains that may not be indicative of the Company's core business
results as detailed in our reconciliations of such adjustments; and
(xiii) 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. "Organic"
presentations are non-GAAP measures that are adjusted as described
under "Financial Guidance for Fiscal 2018."
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 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.
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 2017. Approximately
10 minutes before the call, dial 866-548-4713 (U.S. and
Canada) or 323-794-2093
(international) and enter access code 7397739. A replay will
be available starting two hours after the call ends through
November 24, 2017 at 888-203-1112
(U.S.) or +1 719-457-0820 (international), access code 7397739, Pin
2953. The Company will also provide a live webcast of the
call at http://investors.hologic.com.
About Hologic, Inc.
Hologic, Inc. is an innovative medical technology company
primarily focused on improving women's health and well-being
through early detection and treatment. For more information on
Hologic, visit www.hologic.com.
Hologic, Genius 3D Mammography, Aptima, ThinPrep, MyoSure,
NovaSure, Panther, Tigris, Cynosure, SculpSure, PicoSure, 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 INCOME
(Unaudited)
(In millions, except number of shares, which are reflected in
thousands, and per share data)
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
September 30,
2017
|
|
September 24,
2016
|
|
September 30,
2017
|
|
September 24,
2016
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Product
|
$
|
655.7
|
|
|
$
|
607.5
|
|
|
$
|
2,538.0
|
|
|
$
|
2,379.0
|
|
Service and
other
|
147.2
|
|
|
119.3
|
|
|
520.8
|
|
|
453.7
|
|
Total
revenues
|
802.9
|
|
|
726.8
|
|
|
3,058.8
|
|
|
2,832.7
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Product
|
233.7
|
|
|
195.5
|
|
|
881.8
|
|
|
756.8
|
|
Amortization of
intangible assets
|
79.2
|
|
|
71.2
|
|
|
297.1
|
|
|
293.4
|
|
Service and
other
|
72.1
|
|
|
54.0
|
|
|
258.9
|
|
|
219.2
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
417.9
|
|
|
406.1
|
|
|
1,621.0
|
|
|
1,563.3
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
60.5
|
|
|
62.5
|
|
|
232.8
|
|
|
232.1
|
|
Selling and
marketing
|
139.7
|
|
|
105.8
|
|
|
498.6
|
|
|
415.1
|
|
General and
administrative
|
90.6
|
|
|
65.4
|
|
|
343.3
|
|
|
267.3
|
|
Amortization of
intangible assets
|
15.2
|
|
|
22.4
|
|
|
62.5
|
|
|
89.7
|
|
Gain on sale of
business
|
—
|
|
|
—
|
|
|
(899.7)
|
|
|
—
|
|
Restructuring and
divestiture charges
|
2.5
|
|
|
2.9
|
|
|
13.3
|
|
|
10.5
|
|
Total operating
expenses
|
308.5
|
|
|
259.0
|
|
|
250.8
|
|
|
1,014.7
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
109.4
|
|
|
147.1
|
|
|
1,370.2
|
|
|
548.6
|
|
Interest
income
|
0.5
|
|
|
0.1
|
|
|
3.8
|
|
|
0.7
|
|
Interest
expense
|
(36.1)
|
|
|
(37.9)
|
|
|
(153.2)
|
|
|
(155.3)
|
|
Debt extinguishment
loss
|
(0.6)
|
|
|
(0.8)
|
|
|
(3.2)
|
|
|
(5.3)
|
|
Other income
(expense), net
|
(0.8)
|
|
|
(0.9)
|
|
|
12.9
|
|
|
26.6
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
72.4
|
|
|
107.6
|
|
|
1,230.5
|
|
|
415.3
|
|
Provision (benefit)
for income taxes
|
(10.3)
|
|
|
15.4
|
|
|
475.0
|
|
|
84.5
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
82.7
|
|
|
$
|
92.2
|
|
|
$
|
755.5
|
|
|
$
|
330.8
|
|
|
|
|
|
|
|
|
|
Net income per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.30
|
|
|
$
|
0.33
|
|
|
$
|
2.70
|
|
|
$
|
1.18
|
|
Diluted
|
$
|
0.29
|
|
|
$
|
0.33
|
|
|
$
|
2.64
|
|
|
$
|
1.16
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
279,543
|
|
|
277,549
|
|
|
279,811
|
|
|
280,213
|
|
Diluted
|
284,741
|
|
|
282,494
|
|
|
285,653
|
|
|
286,156
|
|
HOLOGIC,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In
millions)
|
|
|
September 30,
2017
|
|
September 24,
2016
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
540.6
|
|
|
$
|
548.4
|
|
Accounts receivable,
net
|
533.5
|
|
|
447.0
|
|
Inventories
|
331.6
|
|
|
274.7
|
|
Other current
assets
|
72.9
|
|
|
56.5
|
|
Total current
assets
|
1,478.6
|
|
|
1,326.6
|
|
|
|
|
|
Property, plant and
equipment, net
|
491.2
|
|
|
460.2
|
|
Goodwill and
intangible assets
|
5,912.8
|
|
|
5,446.5
|
|
Other
assets
|
97.0
|
|
|
83.7
|
|
Total
assets
|
$
|
7,979.6
|
|
|
$
|
7,317.0
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Current portion of
long-term debt
|
$
|
1,150.8
|
|
|
$
|
296.0
|
|
Accounts payable and
accrued liabilities
|
543.5
|
|
|
444.5
|
|
Deferred
revenue
|
171.2
|
|
|
161.4
|
|
Total current
liabilities
|
1,865.5
|
|
|
901.9
|
|
|
|
|
|
Long-term debt, net
of current portion
|
2,172.1
|
|
|
3,049.4
|
|
Deferred income
taxes
|
973.6
|
|
|
982.6
|
|
Other long-term
liabilities
|
183.7
|
|
|
240.4
|
|
Total
liabilities
|
5,194.9
|
|
|
5,174.3
|
|
Total stockholders'
equity
|
2,784.7
|
|
|
2,142.7
|
|
Total liabilities
and stockholders' equity
|
$
|
7,979.6
|
|
|
$
|
7,317.0
|
|
HOLOGIC,
INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
(in
millions)
|
|
|
Years
Ended
|
|
September 30,
2017
|
|
September 24,
2016
|
(a)
|
OPERATING
ACTIVITIES
|
|
|
|
Net income
|
$
|
755.5
|
|
|
$
|
330.8
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation
|
89.6
|
|
|
82.3
|
|
Amortization
|
359.6
|
|
|
383.1
|
|
Non-cash interest
expense
|
49.4
|
|
|
52.1
|
|
Stock-based
compensation expense
|
68.2
|
|
|
65.4
|
|
Deferred income
taxes
|
(357.2)
|
|
|
(155.8)
|
|
Fair value write-up
of inventory sold
|
39.7
|
|
|
—
|
|
Gain on sale of
investments
|
(5.6)
|
|
|
(25.1)
|
|
Debt extinguishment
losses
|
3.2
|
|
|
5.3
|
|
Equity investment
impairment charges
|
—
|
|
|
1.1
|
|
Gain on sale of
business
|
(899.7)
|
|
|
—
|
|
Other adjustments and
non-cash items
|
8.8
|
|
|
2.6
|
|
Changes in operating
assets and liabilities, excluding the effect of
acquisitions and dispositions:
|
|
|
|
Accounts
receivable
|
(41.5)
|
|
|
(31.8)
|
|
Inventories
|
(11.6)
|
|
|
7.6
|
|
Prepaid income
taxes
|
(8.7)
|
|
|
4.7
|
|
Prepaid expenses and
other assets
|
(2.4)
|
|
|
(4.9)
|
|
Accounts
payable
|
(10.6)
|
|
|
40.1
|
|
Accrued expenses and
other liabilities
|
(17.8)
|
|
|
45.6
|
|
Deferred
revenue
|
(10.6)
|
|
|
(4.9)
|
|
Net cash provided by
operating activities
|
8.3
|
|
|
798.2
|
|
INVESTING
ACTIVITIES
|
|
|
|
Acquisition of
businesses, net of cash acquired
|
(1,558.1)
|
|
|
—
|
|
Proceeds from sale of
business
|
1,865.0
|
|
|
—
|
|
Purchase of property
and equipment
|
(57.8)
|
|
|
(47.3)
|
|
Increase in equipment
under customer usage agreements
|
(49.8)
|
|
|
(47.2)
|
|
Proceeds from sale of
available-for-sale marketable securities
|
87.1
|
|
|
31.1
|
|
Purchases of
insurance contracts
|
—
|
|
|
(5.2)
|
|
Sales of mutual
funds
|
—
|
|
|
5.2
|
|
Purchase of
intellectual property
|
—
|
|
|
(4.0)
|
|
Other
activity
|
(0.6)
|
|
|
(1.0)
|
|
Net cash provided by
(used in) investing activities
|
285.8
|
|
|
(68.4)
|
|
FINANCING
ACTIVITIES
|
|
|
|
Repayment of
long-term debt
|
(84.4)
|
|
|
(75.0)
|
|
Payments to
extinguish convertible notes
|
(396.2)
|
|
|
(392.8)
|
|
Proceeds from amounts
borrowed under revolving credit line
|
345.0
|
|
|
50.0
|
|
Repayment of amounts
borrowed under revolving credit line
|
—
|
|
|
(225.0)
|
|
Proceeds from
accounts receivable securitization program
|
48.0
|
|
|
200.0
|
|
Repayment of amounts
borrowed under accounts receivable securitization
program
|
(48.0)
|
|
|
—
|
|
Repurchase of common
stock
|
(200.1)
|
|
|
(250.0)
|
|
Purchase of interest
rate caps
|
(1.9)
|
|
|
—
|
|
Net proceeds from
issuance of common stock pursuant to employee stock
plans
|
49.0
|
|
|
38.5
|
|
Payment under capital
lease obligation
|
(0.9)
|
|
|
—
|
|
Payment of minimum
tax withholdings on net share settlements of equity
awards
|
(19.7)
|
|
|
(16.4)
|
|
Net cash used in
financing activities
|
(309.2)
|
|
|
(670.7)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
7.3
|
|
|
(2.0)
|
|
Net increase
(decrease) in cash and cash equivalents
|
(7.8)
|
|
|
57.1
|
|
Cash and cash
equivalents, beginning of period
|
548.4
|
|
|
491.3
|
|
Cash and cash
equivalents, end of period
|
$
|
540.6
|
|
|
$
|
548.4
|
|
|
|
(a)
|
The statement of cash
flows for 2016 has been recasted to reflect the adoption of ASU
2016-09 as the Company has retrospectively adopted the presentation
requirement of the excess tax benefit related to equity awards. As
a result, cash provided by operating activities increased $11.0
million with a corresponding increase in cash used in financing
activities.
|
HOLOGIC,
INC.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (Unaudited)
(In millions, except earnings per share)
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
September 30,
2017
|
|
September 24,
2016
|
|
September 30,
2017
|
|
September 24,
2016
|
|
|
|
|
|
|
|
|
Gross
Profit:
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
417.9
|
|
|
$
|
406.1
|
|
|
$
|
1,621.0
|
|
|
$
|
1,563.3
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
intangible assets (1)
|
79.2
|
|
|
71.2
|
|
|
297.1
|
|
|
293.4
|
|
Incremental
depreciation expense (2)
|
0.2
|
|
|
0.4
|
|
|
1.0
|
|
|
1.8
|
|
Integration/consolidation costs (3)
|
0.1
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
Fair value write-up of
acquired inventory (11)
|
17.4
|
|
|
—
|
|
|
39.7
|
|
|
—
|
|
Non-GAAP gross
profit
|
$
|
514.8
|
|
|
$
|
477.7
|
|
|
$
|
1,959.7
|
|
|
$
|
1,858.5
|
|
|
|
|
|
|
|
|
|
Gross Margin
Percentage:
|
|
|
|
|
|
|
|
GAAP gross margin
percentage
|
52.0
|
%
|
|
55.9
|
%
|
|
53.0
|
%
|
|
55.2
|
%
|
Impact of adjustments
above
|
12.1
|
%
|
|
9.8
|
%
|
|
11.1
|
%
|
|
10.4
|
%
|
Non-GAAP gross margin
percentage
|
64.1
|
%
|
|
65.7
|
%
|
|
64.1
|
%
|
|
65.6
|
%
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
308.5
|
|
|
$
|
259.0
|
|
|
$
|
250.8
|
|
|
$
|
1,014.7
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
intangible assets (1)
|
(15.2)
|
|
|
(22.4)
|
|
|
(62.5)
|
|
|
(89.7)
|
|
Incremental
depreciation expense (2)
|
(2.9)
|
|
|
(0.7)
|
|
|
(4.6)
|
|
|
(3.3)
|
|
Transaction expenses
(4)
|
(0.5)
|
|
|
—
|
|
|
(23.2)
|
|
|
—
|
|
Non-income tax net
charges (12)
|
(6.7)
|
|
|
—
|
|
|
(23.1)
|
|
|
—
|
|
Integration/consolidation costs (3)
|
(4.9)
|
|
|
(0.2)
|
|
|
(18.9)
|
|
|
(0.9)
|
|
Restructuring and
divestiture charges (3)
|
(2.5)
|
|
|
(2.9)
|
|
|
(13.3)
|
|
|
(10.5)
|
|
Gain on sale of
business (10)
|
—
|
|
|
—
|
|
|
899.7
|
|
|
—
|
|
Other (5)
|
—
|
|
|
2.7
|
|
|
—
|
|
|
(3.3)
|
|
Non-GAAP operating
expenses
|
$
|
275.8
|
|
|
$
|
235.5
|
|
|
$
|
1,004.9
|
|
|
$
|
907.0
|
|
|
|
|
|
|
|
|
|
Operating
Margin:
|
|
|
|
|
|
|
|
GAAP income from
operations
|
$
|
109.4
|
|
|
$
|
147.1
|
|
|
$
|
1,370.2
|
|
|
$
|
548.6
|
|
Adjustments to gross
profit as detailed above
|
96.9
|
|
|
71.6
|
|
|
338.7
|
|
|
295.2
|
|
Adjustments to
operating expenses as detailed
above
|
32.7
|
|
|
23.5
|
|
|
(754.1)
|
|
|
107.7
|
|
Non-GAAP income from
operations
|
$
|
239.0
|
|
|
$
|
242.2
|
|
|
$
|
954.8
|
|
|
$
|
951.5
|
|
|
|
|
|
|
|
|
|
Operating Margin
Percentage:
|
|
|
|
|
|
|
|
GAAP income from
operations margin percentage
|
13.6
|
%
|
|
20.2
|
%
|
|
44.8
|
%
|
|
19.4
|
%
|
Impact of adjustments
above
|
16.2
|
%
|
|
13.1
|
%
|
|
(13.6)
|
%
|
|
14.2
|
%
|
Non-GAAP operating
margin percentage
|
29.8
|
%
|
|
33.3
|
%
|
|
31.2
|
%
|
|
33.6
|
%
|
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
|
GAAP interest
expense
|
$
|
36.1
|
|
|
$
|
37.9
|
|
|
$
|
153.2
|
|
|
$
|
155.3
|
|
Adjustments:
|
|
|
|
|
|
|
|
Non-cash interest
expense relating to convertible
notes (6)
|
(3.4)
|
|
|
(5.0)
|
|
|
(17.9)
|
|
|
(22.3)
|
|
Interest expense
relating to Cynosure dissenting
shareholders (15)
|
1.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Non-GAAP interest
expense
|
$
|
34.2
|
|
|
$
|
32.9
|
|
|
$
|
135.3
|
|
|
$
|
133.0
|
|
|
Pre-Tax
Income:
|
|
|
|
|
|
|
|
|
GAAP pre-tax
earnings
|
$
|
72.4
|
|
$
|
107.6
|
|
|
1,230.5
|
|
|
415.3
|
|
Adjustments to pre-tax
earnings as detailed
above
|
131.5
|
|
|
100.1
|
|
|
(397.5)
|
|
|
425.2
|
|
Debt extinguishment
loss (7)
|
0.6
|
|
|
0.8
|
|
|
3.2
|
|
|
5.3
|
|
Gain on sale of
investments (8)
|
(2.0)
|
|
|
—
|
|
|
(5.6)
|
|
|
(25.1)
|
|
Equity investment
impairment charge
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
Unrealized losses on
forward foreign currency
contracts (9)
|
3.6
|
|
|
1.6
|
|
|
2.6
|
|
|
1.1
|
|
Non-GAAP pre-tax
Income
|
$
|
206.1
|
|
|
$
|
211.2
|
|
|
$
|
833.2
|
|
|
$
|
822.9
|
|
|
|
|
|
|
|
|
|
|
Net
income:
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
|
82.7
|
|
|
$
|
92.2
|
|
|
$
|
755.5
|
|
|
$
|
330.8
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
intangible assets (1)
|
94.4
|
|
|
93.6
|
|
|
359.6
|
|
|
383.1
|
|
Fair value write-up
of acquired inventory (11)
|
17.4
|
|
|
—
|
|
|
39.7
|
|
|
—
|
|
Non-cash interest
expense relating to
convertible notes (6)
|
3.4
|
|
|
5.0
|
|
|
17.9
|
|
|
22.3
|
|
Restructuring,
divestiture and
integration/consolidation costs (3)
|
7.5
|
|
|
3.1
|
|
|
33.1
|
|
|
11.4
|
|
Non-income tax net
charges (12)
|
6.7
|
|
|
—
|
|
|
23.1
|
|
|
—
|
|
Transaction expenses
(4)
|
0.5
|
|
|
—
|
|
|
23.2
|
|
|
—
|
|
Incremental
depreciation expenses (2)
|
3.1
|
|
|
1.1
|
|
|
5.6
|
|
|
5.1
|
|
Debt extinguishment
loss (7)
|
0.6
|
|
|
0.8
|
|
|
3.2
|
|
|
5.3
|
|
Gain on sale of
investments (8)
|
(2.0)
|
|
|
—
|
|
|
(5.6)
|
|
|
(25.1)
|
|
Equity investment
impairment charge
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
Unrealized losses on
forward foreign currency
contracts (9)
|
3.6
|
|
|
1.6
|
|
|
2.6
|
|
|
1.1
|
|
Gain on sale of
business (10)
|
—
|
|
|
—
|
|
|
(899.7)
|
|
|
—
|
|
Interest expense
relating to Cynosure dissenting
shareholders (15)
|
(1.5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other charges
(5)
|
—
|
|
|
(2.7)
|
|
|
—
|
|
|
3.3
|
|
Income tax effect of
reconciling items (13)
|
(73.2)
|
|
|
(50.1)
|
|
|
220.7
|
|
|
(176.8)
|
|
Non-GAAP net
income
|
$
|
143.2
|
|
|
$
|
145.7
|
|
|
$
|
578.9
|
|
|
$
|
561.6
|
|
|
|
|
|
|
|
|
|
|
Net Income
Percentage:
|
|
|
|
|
|
|
|
|
GAAP net income
percentage
|
10.3
|
%
|
|
12.7
|
%
|
|
24.7
|
%
|
|
11.7
|
%
|
Impact of adjustments
above
|
7.5
|
%
|
|
7.3
|
%
|
|
(5.8)
|
%
|
|
8.1
|
%
|
Non-GAAP net income
percentage
|
17.8
|
%
|
|
20.0
|
%
|
|
18.9
|
%
|
|
19.8
|
%
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
GAAP earnings per
share - Diluted
|
$
|
0.29
|
|
|
$
|
0.33
|
|
|
$
|
2.64
|
|
|
$
|
1.16
|
|
Adjustment to net
earnings (as detailed above)
|
0.21
|
|
|
0.19
|
|
|
(0.61)
|
|
|
0.80
|
|
Non-GAAP earnings per
share – diluted (14)
|
$
|
0.50
|
|
|
$
|
0.52
|
|
|
$
|
2.03
|
|
|
$
|
1.96
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
$
|
143.2
|
|
|
$
|
145.7
|
|
|
$
|
578.9
|
|
|
$
|
561.6
|
|
Interest expense,
net, not adjusted above
|
33.7
|
|
|
32.8
|
|
|
131.5
|
|
|
132.3
|
|
Provision for income
taxes
|
62.9
|
|
|
65.5
|
|
|
254.1
|
|
|
261.3
|
|
Depreciation expense,
not adjusted above
|
22.9
|
|
|
19.9
|
|
|
84.0
|
|
|
77.1
|
|
Adjusted
EBITDA
|
$
|
262.7
|
|
|
$
|
263.9
|
|
|
$
|
1,048.5
|
|
|
$
|
1,032.3
|
|
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 business consolidation.
|
(3)
|
To reflect
restructuring and divestiture charges, and certain costs associated
with the Company's integration and facility consolidation plans,
which primarily include retention and transfer costs, as well as
costs incurred to integrate acquisitions including consulting,
legal and accounting fees, and expenses incurred to separate the
divested blood screening business from the molecular diagnostics
operations. These costs do not include those incurred to provide
transition services to Grifols, nor amounts received from Grifols
under transition services agreements.
|
(4)
|
To reflect expenses
incurred with third parties related to acquisitions and
divestitures prior to when such transactions are completed. These
expenses primarily comprise broker fees, legal fees, and consulting
and due diligence fees.
|
(5)
|
To reflect the net
impact from miscellaneous transactions during the period, including
legal settlements.
|
(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
the repurchases of $285.9 million principal amount of the 2012 and
2013 Convertible Notes in fiscal 2017 and $274.3 million principal
amount of the 2010 and 2012 Convertible Notes in fiscal
2016.
|
(8)
|
To reflect realized
gains on the sale of available-for-sale marketable securities and a
cost-method investment.
|
(9)
|
To reflect non-cash
unrealized losses (gains) on the mark-to market on outstanding
forward foreign currency contracts, which do not qualify for hedge
accounting.
|
(10)
|
To reflect the gain
realized on the sale of the Blood Screening business to
Grifols.
|
(11)
|
To reflect the fair
value step up of inventory sold during the period related to
acquisitions.
|
(12)
|
To reflect a
non-income tax benefit in the third quarter of fiscal 2017 of $12.4
million, net from refunds received from amending the Company's
Medical Device Excise tax filings, and charges recorded in fiscal
2017 of $35.6 million as the Company determined during the period
that a loss became probable associated with a non-income tax issue
currently under audit.
|
(13)
|
To reflect an
estimated annual effective tax rate of 30.50% and 31.75% for fiscal
2017 and 2016, respectively, applied to Non-GAAP pretax income. The
calculation of this rate excludes certain items that impact the
GAAP provision for income taxes consistent with the Company's
exclusion of items from pre-tax Non-GAAP income.
|
(14)
|
Non-GAAP earnings per
share was calculated based on 284,741 and 285,653 weighted average
diluted shares outstanding for the three and twelve months ended
September 30, 2017 and 282,494 and 286,156 for the three and twelve
months ended September 24, 2016.
|
(15)
|
Reversal of interest
accrued related to Cynosure shareholders who dissented and
ultimately tendered their shares.
|
Reconciliation of GAAP to non-GAAP EPS Guidance:
|
Guidance
Range
|
|
Guidance
Range
|
|
Quarter
Ending
December 30,
2017
|
|
Year Ending
September 29, 2018
|
|
Low
|
High
|
|
Low
|
High
|
GAAP Net Income Per
Share
|
$0.25
|
$0.27
|
|
$1.22
|
$1.27
|
Amortization of Intangible Assets
|
$0.33
|
$0.33
|
|
$1.33
|
$1.33
|
Amortization of Debt Discount
|
$0.01
|
$0.01
|
|
$0.01
|
$0.01
|
Accelerated depreciation and Other Charges
|
$0.01
|
$0.01
|
|
$0.04
|
$0.04
|
Tax
Impact of Exclusions
|
($0.12)
|
($0.12)
|
|
($0.50)
|
($0.50)
|
Non-GAAP Net Income
Per Share
|
$0.48
|
$0.50
|
|
$2.10
|
$2.15
|
Reconciliations of Reported to Constant Currency
Revenue:
|
|
|
|
|
Constant
|
|
|
|
Reported
|
Foreign Currency
Effect
|
Currency
|
$s in
millions
|
Q4'17
|
Q4'16
|
Change
|
$
|
%
|
Change
|
Cytology &
Perinatal
|
$120.2
|
$121.0
|
(0.7%)
|
$(0.9)
|
(0.7%)
|
(1.4%)
|
Molecular
Diagnostics
|
$153.5
|
$134.3
|
14.3%
|
$(0.7)
|
(0.5%)
|
13.8%
|
Blood
Screening
|
$18.0
|
$56.6
|
(68.2%)
|
-
|
-
|
(68.2%)
|
Total
Diagnostics
|
$291.7
|
$311.9
|
(6.5%)
|
$(1.6)
|
(0.5%)
|
(7.0%)
|
Total Diagnostics
ex. Blood
|
$273.7
|
$255.3
|
7.2%
|
$(1.6)
|
(0.6%)
|
6.6%
|
Breast Imaging
|
$255.5
|
$248.8
|
2.7%
|
$(1.4)
|
(0.5%)
|
2.2%
|
Interventional Breast
Solutions
|
$42.3
|
$40.9
|
3.6%
|
$(0.2)
|
(0.5%)
|
3.1%
|
Other
|
$3.1
|
$2.6
|
15.3%
|
$(0.2)
|
(6.0%)
|
9.3%
|
Total Breast
Health
|
$300.9
|
$292.3
|
2.9%
|
$(1.7)
|
(0.5%)
|
2.4%
|
Body
|
$22.2
|
-
|
-
|
-
|
-
|
-
|
Skin
|
$32.6
|
-
|
-
|
-
|
-
|
-
|
Women's
Health/Other
|
$26.6
|
-
|
-
|
-
|
-
|
-
|
Total Medical
Aesthetics
|
$81.4
|
-
|
-
|
-
|
-
|
-
|
GYN
Surgical
|
$104.7
|
$101.5
|
3.2%
|
$(0.4)
|
(0.5%)
|
2.7%
|
Skeletal
Health
|
$24.2
|
$21.2
|
14.2%
|
$(0.3)
|
(1.3%)
|
12.9%
|
Total
|
$802.9
|
$726.8
|
10.5%
|
$(4.3)
|
(0.6%)
|
9.9%
|
|
|
|
|
|
International
|
|
|
International
|
|
Change
|
|
|
Change
|
Foreign Currency
Effect
|
(Constant
|
|
U.S.
Change
|
(Reported)
|
$
|
%
|
Currency)
|
|
Increase
(Decrease)
|
Diagnostics
|
(2.1%)
|
(19.2%)
|
$(1.6)
|
(2.1%)
|
(21.3%)
|
Diagnostics ex. Blood
|
3.9%
|
19.5%
|
$(1.6)
|
(3.0%)
|
16.5%
|
Breast
Health
|
(1.2%)
|
24.1%
|
$(1.7)
|
(3.5%)
|
20.6%
|
Medical
Aesthetics
|
-
|
-
|
-
|
-
|
-
|
GYN
Surgical
|
1.9%
|
11.1%
|
$(0.4)
|
(3.2%)
|
7.9%
|
Skeletal
Health
|
7.5%
|
26.2%
|
$(0.3)
|
(3.6%)
|
22.6%
|
Total
Revenues
|
6.1%
|
27.5%
|
$(4.3)
|
(2.8%)
|
24.7%
|
Total
Revenues ex. Blood and Medical Aesthetics
|
1.4%
|
20.8%
|
$(4.0)
|
(3.3%)
|
17.5%
|
|
Trailing Twelve
Months
ended
September 30,
2017
|
Return on Invested
Capital:
|
|
|
|
Adjusted Net
Operating Profit After Tax
|
|
Non-GAAP net
income
|
$578.9
|
|
Non-GAAP provision
for income taxes
|
254.1
|
|
Non-GAAP interest
expense
|
135.3
|
|
Non-GAAP other
income
|
(13.5)
|
|
Adjusted net
operating profit before tax
|
$954.8
|
|
Non-GAAP average
effective tax rate (1)
|
30.50
|
%
|
Adjusted net
operating profit after tax
|
$663.6
|
|
|
|
Average Net Debt plus
Average Stockholders' Equity (2)
|
|
Average total
debt
|
$3,334.1
|
|
Less: Average cash,
cash equivalents and restricted cash
|
(544.5)
|
|
Average net
debt
|
$2,789.6
|
|
Average stockholders'
equity (3)
|
$2,495.9
|
|
Average net debt plus
average stockholders' equity
|
$5,285.5
|
|
|
|
Adjusted
ROIC
|
|
Adjusted ROIC
(adjusted net operating profit after tax above divided by average net debt plus stockholders'
equity above)
|
12.6
|
%
|
|
(1) ROIC is
presented on a TTM basis; non-GAAP effective tax rate for the year
ended September 30, 2017 was 30.50%.
(2) Calculated
using the average of the balances as of September 30, 2017 and
September 24, 2016.
(3) Adjusted
(increased) to eliminate the effect of the impairment of intangible
assets of $32.2 million in fiscal 2014.
|
|
|
As
of
|
|
September 30,
2017
|
Leverage
Ratio:
|
|
|
|
Total principal
debt
|
$3,355.1
|
|
Total cash
|
(540.6)
|
|
Net principal debt,
as adjusted
|
$2,814.5
|
|
EBITDA for the last
four quarters
|
$1,048.5
|
|
Leverage
Ratio
|
2.7
|
|
|
|
Other Supplemental
Information:
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
September 30,
2017
|
|
September 24,
2016
|
|
September 30,
2017
|
|
September 24,
2016
|
|
|
|
|
|
|
|
|
|
Geographic
Revenues
|
|
|
|
|
|
|
|
|
U.S.
|
|
76.4
|
%
|
|
79.5
|
%
|
|
77.6
|
%
|
|
78.9
|
%
|
Europe
|
|
10.3
|
%
|
|
9.8
|
%
|
|
10.0
|
%
|
|
10.2
|
%
|
Asia-Pacific
|
|
8.6
|
%
|
|
7.8
|
%
|
|
8.1
|
%
|
|
7.6
|
%
|
Rest of
World
|
|
4.7
|
%
|
|
2.9
|
%
|
|
4.3
|
%
|
|
3.3
|
%
|
Total
Revenues
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
Revenue
Composition
|
|
|
|
|
|
Q4'17
|
|
|
|
Disposables
|
|
52.4
|
%
|
Capital
Equipment
|
|
29.3
|
%
|
Service &
Other
|
|
18.3
|
%
|
Total
Revenues
|
|
100.0
|
%
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/hologic-announces-financial-results-for-fourth-quarter-of-fiscal-2017-300552154.html
SOURCE Hologic, Inc.