MARLBOROUGH, Mass.,
Aug. 2, 2017 /PRNewswire/
-- Hologic, Inc. (Nasdaq: HOLX) announced today the Company's
financial results for the fiscal third quarter ended July 1, 2017. GAAP diluted earnings
per share (EPS) of $0.21 decreased
(30.0%) compared to the prior year period, while non-GAAP diluted
EPS of $0.50 decreased (2.0%).
Revenue of $806.1 million increased
12.4%, or 13.1% in constant currency terms.
"Hologic posted solid results in the third quarter, with
revenues exceeding our guidance," said Steve MacMillan, Hologic's Chairman, President
and Chief Executive Officer. "Our molecular diagnostics and
international businesses are clearly emerging as new growth
drivers, and both grew organically at a low-double-digit rate in
constant currency. In addition, Cynosure revenue finished in
line with our guidance, driven by strong international
performance."
Key financial results for the fiscal third quarter are shown in
the table below. Results were affected by the divestiture of
the blood screening business and the acquisition of Cynosure, both
of which closed in the second quarter. Excluding these
businesses, base business revenue increased 2.4%, or 3.1% in
constant currency terms, while non-GAAP diluted EPS increased
11.9%.
|
GAAP
|
Non-GAAP
|
|
Q3'17
|
Q3'16
|
Change
Increase
(Decrease)
|
Q3'17
|
Q3'16
|
Change
Increase
(Decrease)
|
Revenues
|
$806.1
|
$717.4
|
12.4%
|
$806.1
|
$717.4
|
12.4%
|
Gross
Margin
|
50.8%
|
54.8%
|
(400 bps)
|
63.1%
|
65.7%
|
(260 bps)
|
Operating
Expenses
|
$294.6
|
$253.7
|
16.1%
|
$274.9
|
$229.2
|
19.9%
|
Operating
Margin
|
14.3%
|
19.4%
|
(510 bps)
|
29.0%
|
33.8%
|
(480 bps)
|
Net Margin
|
7.4%
|
11.8%
|
(440 bps)
|
18.0%
|
20.2%
|
(220 bps)
|
Diluted
EPS
|
$0.21
|
$0.30
|
(30.0%)
|
$0.50
|
$0.51
|
(2.0%)
|
Base Business
EPS
|
$0.30
|
$0.25
|
20.0%
|
$0.47
|
$0.42
|
11.9%
|
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
On a global basis, organic revenue growth in the third quarter
was led by molecular diagnostics, interventional breast solutions
and the GYN Surgical division.
$s in
millions
|
Q3'17
|
Q3'16
|
Reported
Change
|
Constant Currency
Change
|
Cytology &
Perinatal
|
$121.0
|
$122.2
|
(1.0%)
|
0.2%
|
Molecular
Diagnostics
|
$144.1
|
$131.8
|
9.3%
|
10.3%
|
Blood
Screening
|
$19.0
|
$55.9
|
(66.0%)
|
(66.0%)
|
Total
Diagnostics
|
$284.1
|
$309.9
|
(8.3%)
|
(7.4%)
|
Breast Imaging
|
$236.5
|
$239.3
|
(1.2%)
|
(0.7%)
|
Interventional Breast
Solutions
|
$45.0
|
$41.3
|
9.0%
|
9.4%
|
Other
|
$2.2
|
$2.0
|
12.7%
|
15.8%
|
Total Breast
Health
|
$283.7
|
$282.5
|
0.4%
|
0.9%
|
Body
|
$36.7
|
-
|
-
|
-
|
Skin
|
$45.4
|
-
|
-
|
-
|
Women's
Health/Other
|
$28.0
|
-
|
-
|
-
|
Total Medical
Aesthetics
|
$110.0
|
-
|
-
|
-
|
GYN
Surgical
|
$106.5
|
$102.0
|
4.4%
|
5.2%
|
Skeletal
Health
|
$21.8
|
$23.0
|
(5.3%)
|
(5.0%)
|
Total
|
$806.1
|
$717.4
|
12.4%
|
13.1%
|
Other quarterly revenue highlights:
- U.S. revenue of $618.5 million
increased 9.5%, and international revenue of $187.6 million increased 23.0%, or 26.5% in
constant currency. Growth benefited from a full quarter of Medical
Aesthetics revenue and strong molecular sales globally.
Internationally, growth also was driven by increased sales of
Breast Health and GYN Surgical products.
- Excluding blood screening and Medical Aesthetics, U.S. revenue
increased 1.3%, while international revenues increased 6.8%, or
10.5% in constant currency.
- GYN Surgical revenue of $106.5
million increased 4.4%, or 5.2% in constant currency.
MyoSure® system revenue of $49.0
million increased 20.1%, or 20.8% in constant currency,
while NovaSure® revenue of $57.5
million decreased (5.8%), or (5.0%) in constant
currency.
- Breast Health revenue totaled $283.7
million, an increase of 0.4%, or 0.9% in constant currency.
Revenue in the United States
decreased (1.7%), as lower sales of GeniusTM 3D
MammographyTM systems were partially offset by increases
in service and new product revenue. International revenue increased
10.6%, or 13.0% in constant currency, due primarily to increases in
sales of mammography systems, service and new products.
- In Diagnostics:
-
- Molecular diagnostics sales of $144.1
million increased 9.3%, or 10.3% in constant currency,
driven primarily by continued strength across Aptima® women's
health products on the fully automated Panther® and Tigris®
platforms, both in the United
States and internationally.
- Cytology and perinatal sales of $121.0
million decreased (1.0%), but increased 0.2% in constant
currency.
- In Skeletal Health, revenue of $21.8
million decreased (5.3%), or (5.0%) in constant
currency.
Segment revenue highlights by geography are shown below:
|
U.S.
Change
|
International
Change
(Reported)
|
International
Change
(Constant
Currency)
|
Increase
(Decrease)
|
Diagnostics
|
(2.2%)
|
(25.5%)
|
(22.1%)
|
Diagnostics ex. Blood
|
3.5%
|
7.4%
|
12.3%
|
Breast
Health
|
(1.7%)
|
10.6%
|
13.0%
|
Medical
Aesthetics
|
-
|
-
|
-
|
GYN
Surgical
|
4.4%
|
4.6%
|
9.8%
|
Skeletal
Health
|
0.8%
|
(16.8%)
|
(16.1%)
|
Total
Revenues
|
9.5%
|
23.0%
|
26.5%
|
Total
Revenues ex. Blood and Medical Aesthetics
|
1.3%
|
6.8%
|
10.5%
|
Expense Detail
Gross margin was 50.8% on a GAAP basis, and 63.1% on a non-GAAP
basis. GAAP gross margin declined by 400 basis points, while
non-GAAP gross margin declined 260 basis points. These
declines were due primarily to product sales mix, mainly the
divestiture of the higher-margin blood screening business and a
full quarter of sales of lower-margin Cynosure products.
These factors were partially offset by strong pricing trends in
Breast Health and increased sales of Aptima® women's health
assays.
Operating expenses were $294.6
million on a GAAP basis, and $274.9
million on a non-GAAP basis. GAAP operating expenses
increased 16.1%, while non-GAAP operating expenses increased 19.9%
primarily due to the inclusion of Cynosure expenses for the full
quarter.
Hologic's quarterly effective tax rate was 20.1% on a GAAP
basis, and 29.5% on a non-GAAP basis.
Other Key Financial Results
GAAP net income for the third quarter was $59.5 million, a decrease of (29.8%).
Adjusted non-GAAP earnings before interest, taxes, depreciation and
amortization (EBITDA) for the third quarter was $260.7 million, a decrease of (0.7%).
Operating cash flow for the third quarter was ($411.7) million. Free cash flow, defined
as operating cash flow less capital expenditures, was ($435.9) million. Operating and free cash
flows declined primarily as a result of $616.0 million in federal and state tax payments
related to the gain on the divestiture of the blood screening
business. Excluding these tax payments, free cash flow for
the quarter would have been $180.1
million.
Total debt outstanding at the end of the quarter was
$3.2 billion, a decrease of
($0.2) billion compared to the prior
year period. During the quarter, Hologic repurchased
$100 million principal of each of its
2012 and 2013 convertible notes for a total of $269.1 million.
The Company ended the quarter with cash and equivalents of
$0.6 billion, and a leverage ratio
(net debt over adjusted EBITDA) of 2.6 times.
Strong profit growth and lower debt have continued to improve
Hologic's adjusted return on invested capital (ROIC). On a
trailing 12 months basis, adjusted ROIC of 12.6% improved 30 basis
points compared to the prior year period.
Financial Guidance for Fiscal 2017
Hologic's financial guidance for fiscal 2017 is shown in the two
tables immediately below. As a reminder, the Company's
current guidance includes partial-year contributions from both the
divested blood screening business and the acquired Cynosure
business. This guidance is based on a full year non-GAAP tax
rate of approximately 30.5%, and diluted shares outstanding of
about 288 million for the full year. Constant currency
guidance assumes that foreign exchange rates are the same in fiscal
2017 as in fiscal 2016. Current guidance assumes that recent
foreign exchange rates persist for all of fiscal 2017.
|
GAAP
|
Revenue
|
EPS
|
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Current Guidance
for
Fiscal 2017
|
7.3% to
7.8%
|
$3,040 to $3,055
million
|
114.7% to
116.4%
|
$2.49 to
$2.51
|
Previous Guidance
for
Fiscal 2017
|
7.7% to
8.7%
|
$3,050 to $3,080
million
|
110.3% to
113.8%
|
$2.44 to
$2.48
|
|
Non-GAAP
|
Revenue
|
EPS
|
|
Constant
Currency %
Increase
(Decrease)
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Constant
Currency %
Increase
(Decrease)
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Current Guidance
for
Fiscal 2017
|
7.9% to
8.4%
|
7.3% to
7.8%
|
$3,040 to
$3,055 million
|
3.0% to
4.1%
|
2.0% to
3.1%
|
$2.00 to
$2.02
|
Previous Guidance
for
Fiscal 2017
|
8.4% to
9.5%
|
7.7% to
8.7%
|
$3,050 to
$3,080 million
|
2.3% to
4.4%
|
1.0% to
3.1%
|
$1.98 to
$2.02
|
Hologic's financial guidance for the fourth quarter of fiscal
2017 is shown in the two tables immediately below. As a
reminder, the Company's current guidance includes a reduced
contribution from the blood screening business associated with raw
material and instrument supply, versus a full-quarter contribution
in the prior year period. In contrast, the current guidance
includes a full-quarter contribution from Cynosure, versus none in
the prior year period.
|
GAAP
|
Revenue
|
EPS
|
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Current Guidance for
the
Fourth Quarter of Fiscal 2017
|
8.0% to
10.1%
|
$785 to $800
million
|
(36.4%) to
(30.3%)
|
$0.21 to
$0.23
|
|
Non-GAAP
|
Revenue
|
EPS
|
|
Constant
Currency %
Increase
(Decrease)
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Constant
Currency %
Increase
(Decrease)
|
Reported %
Increase
(Decrease)
|
Guidance $
|
Current Guidance for
the
Fourth Quarter of Fiscal 2017
|
8.3% to
10.3%
|
8.0% to
10.1%
|
$785 to
$800 million
|
(7.2%) to
(3.4%)
|
(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
|
Revenue
|
$60.7
|
$62.2
|
$55.9
|
$56.6
|
$235.4
|
$65.2
|
$38.3
|
$19.0
|
EPS
|
$0.06
|
$0.06
|
$0.05
|
$0.05
|
$0.22
|
$0.06
|
$1.62
|
$0.01
|
|
|
Non-GAAP
|
|
2016
|
2017
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Total
|
Q1
|
Q2
|
Q3
|
Revenue
|
$60.7
|
$62.2
|
$55.9
|
$56.6
|
$235.4
|
$65.2
|
$38.3
|
$19.0
|
EPS
|
$0.10
|
$0.10
|
$0.09
|
$0.09
|
$0.37
|
$0.10
|
$0.04
|
$0.01
|
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) interest expense accrued related to amounts owed to Cynosure
shareholders who did not tender shares; (xiii) 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 (xiv)
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 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 third quarter of fiscal 2017. Approximately
10 minutes before the call, dial 877-780-3379 (U.S. and
Canada) or 719-325-2435
(international) and enter access code 9898213. A replay will
be available starting two hours after the call ends through
August 25, 2017 at 888-203-1112 (U.S.
and Canada) or 719-457-0820
(international), access code 9898213, Pin 9876. 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, 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
|
|
Nine Months
Ended
|
|
July 1,
2017
|
|
June 25,
2016
|
|
July 1,
2017
|
|
June 25,
2016
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Product
|
$
|
674.1
|
|
|
$
|
601.3
|
|
|
$
|
1,882.3
|
|
|
$
|
1,771.5
|
|
Service and
other
|
132.0
|
|
|
116.1
|
|
|
373.6
|
|
|
334.3
|
|
Total
revenues
|
806.1
|
|
|
717.4
|
|
|
2,255.9
|
|
|
2,105.8
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Product
|
249.3
|
|
|
191.1
|
|
|
648.1
|
|
|
561.2
|
|
Amortization of
intangible assets
|
79.1
|
|
|
77.9
|
|
|
217.9
|
|
|
222.2
|
|
Service and
other
|
68.1
|
|
|
55.3
|
|
|
186.8
|
|
|
165.2
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
409.6
|
|
|
393.1
|
|
|
1,203.1
|
|
|
1,157.2
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
62.5
|
|
|
58.8
|
|
|
172.3
|
|
|
169.6
|
|
Selling and
marketing
|
145.4
|
|
|
109.0
|
|
|
358.8
|
|
|
309.2
|
|
General and
administrative
|
65.5
|
|
|
62.5
|
|
|
252.7
|
|
|
202.0
|
|
Amortization of
intangible assets
|
15.2
|
|
|
21.9
|
|
|
47.3
|
|
|
67.3
|
|
Gain on sale of
business
|
—
|
|
|
—
|
|
|
(899.7)
|
|
|
—
|
|
Restructuring and
divestiture charges
|
6.0
|
|
|
1.5
|
|
|
10.8
|
|
|
7.5
|
|
Total operating
expenses
|
294.6
|
|
|
253.7
|
|
|
(57.8)
|
|
|
755.6
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
115.0
|
|
|
139.4
|
|
|
1,260.9
|
|
|
401.6
|
|
Interest
income
|
1.1
|
|
|
0.2
|
|
|
3.3
|
|
|
0.6
|
|
Interest
expense
|
(39.1)
|
|
|
(39.1)
|
|
|
(117.1)
|
|
|
(117.4)
|
|
Debt extinguishment
loss
|
(2.6)
|
|
|
—
|
|
|
(2.6)
|
|
|
(4.5)
|
|
Other income
(expense), net
|
0.1
|
|
|
0.6
|
|
|
13.7
|
|
|
27.5
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
74.5
|
|
|
101.1
|
|
|
1,158.2
|
|
|
307.8
|
|
Provision for income
taxes
|
15.0
|
|
|
16.3
|
|
|
485.4
|
|
|
69.1
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
59.5
|
|
|
$
|
84.8
|
|
|
$
|
672.8
|
|
|
$
|
238.7
|
|
|
|
|
|
|
|
|
|
Net income per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.21
|
|
|
$
|
0.31
|
|
|
$
|
2.40
|
|
|
$
|
0.85
|
|
Diluted
|
$
|
0.21
|
|
|
$
|
0.30
|
|
|
$
|
2.35
|
|
|
$
|
0.83
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
280,824
|
|
|
277,853
|
|
|
279,901
|
|
|
281,101
|
|
Diluted
|
287,638
|
|
|
282,302
|
|
|
285,957
|
|
|
287,377
|
|
HOLOGIC,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(In
millions)
|
|
|
July 1,
2017
|
|
September 24,
2016
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
588.4
|
|
|
$
|
548.4
|
|
Accounts receivable,
net
|
520.3
|
|
|
447.0
|
|
Inventories
|
357.0
|
|
|
274.7
|
|
Other current
assets
|
70.3
|
|
|
56.5
|
|
Total current
assets
|
1,536.0
|
|
|
1,326.6
|
|
|
|
|
|
Property, plant and
equipment, net
|
485.5
|
|
|
460.2
|
|
Goodwill and
intangible assets
|
6,000.8
|
|
|
5,446.5
|
|
Other
assets
|
95.7
|
|
|
83.7
|
|
Total
assets
|
$
|
8,118.0
|
|
|
$
|
7,317.0
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Current portion of
long-term debt
|
$
|
1,013.3
|
|
|
$
|
296.0
|
|
Accounts payable and
accrued liabilities
|
617.3
|
|
|
444.5
|
|
Deferred
revenue
|
182.2
|
|
|
161.4
|
|
Total current
liabilities
|
1,812.8
|
|
|
901.9
|
|
|
|
|
|
Long-term debt, net
of current portion
|
2,207.6
|
|
|
3,049.4
|
|
Deferred income
taxes
|
1,032.0
|
|
|
982.6
|
|
Other long-term
liabilities
|
200.0
|
|
|
240.4
|
|
Total stockholders'
equity
|
2,865.6
|
|
|
2,142.7
|
|
Total liabilities
and stockholders' equity
|
$
|
8,118.0
|
|
|
$
|
7,317.0
|
|
HOLOGIC,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(in
millions)
|
|
|
Nine Months
Ended
|
|
|
July 1,
2017
|
|
June 25,
2016
|
(a)
|
OPERATING
ACTIVITIES
|
|
|
|
|
Net income
|
$
|
672.8
|
|
|
$
|
238.7
|
|
|
Adjustments to
reconcile net income to net cash (used in) provided by operating
activities:
|
|
|
|
|
Depreciation
|
63.5
|
|
|
61.3
|
|
|
Amortization
|
265.2
|
|
|
289.5
|
|
|
Non-cash interest
expense
|
38.9
|
|
|
38.8
|
|
|
Stock-based
compensation expense
|
53.4
|
|
|
45.1
|
|
|
Deferred income
taxes
|
(304.6)
|
|
|
(104.2)
|
|
|
Net gains on sale of
marketable securities
|
(3.6)
|
|
|
(25.1)
|
|
|
Fair value write-up
of inventory sold
|
22.3
|
|
|
—
|
|
|
Debt extinguishment
loss
|
2.6
|
|
|
4.5
|
|
|
Gain on disposal of
business
|
(899.7)
|
|
|
—
|
|
|
Other adjustments and
non-cash items
|
1.8
|
|
|
1.2
|
|
|
Changes in operating
assets and liabilities, excluding the effect of
acquisitions:
|
|
|
|
|
Accounts
receivable
|
(29.7)
|
|
|
(10.8)
|
|
|
Inventories
|
(20.2)
|
|
|
2.1
|
|
|
Prepaid income
taxes
|
(4.5)
|
|
|
1.9
|
|
|
Prepaid expenses and
other assets
|
(4.4)
|
|
|
(16.2)
|
|
|
Accounts
payable
|
(28.3)
|
|
|
14.4
|
|
|
Accrued expenses and
other liabilities
|
15.4
|
|
|
34.7
|
|
|
Deferred
revenue
|
0.8
|
|
|
(6.2)
|
|
|
Net cash (used in)
provided by operating activities
|
(158.3)
|
|
|
569.7
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
Acquisition of
businesses, net of cash acquired
|
(1,478.9)
|
|
|
—
|
|
|
Net proceeds from
sale of business
|
1,865.0
|
|
|
—
|
|
|
Purchase of property
and equipment
|
(35.8)
|
|
|
(27.0)
|
|
|
Increase in equipment
under customer usage agreements
|
(38.2)
|
|
|
(35.8)
|
|
|
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)
|
|
|
Increase in other
assets
|
(5.6)
|
|
|
(0.4)
|
|
|
Net cash provided by
(used in) investing activities
|
393.6
|
|
|
(36.1)
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
Repayment of
long-term debt
|
(56.3)
|
|
|
(56.2)
|
|
|
Repayment of amounts
borrowed under accounts receivable securitization
program
|
(48.0)
|
|
|
—
|
|
|
Proceeds from
accounts receivable securitization agreement
|
48.0
|
|
|
200.0
|
|
|
Payments to
extinguish convertible notes
|
(290.1)
|
|
|
(311.5)
|
|
|
Proceeds from amounts
borrowed under revolving credit line
|
125.0
|
|
|
50.0
|
|
|
Repayment of amounts
borrowed under revolving credit line
|
—
|
|
|
(225.0)
|
|
|
Repurchase of common
stock
|
—
|
|
|
(250.0)
|
|
|
Net proceeds from
issuance of common stock pursuant to employee stock
plans
|
42.5
|
|
|
27.4
|
|
|
Payment under capital
lease obligations
|
(0.4)
|
|
|
—
|
|
|
Payment of minimum
tax withholdings on net share settlements of equity
awards
|
(19.3)
|
|
|
(16.1)
|
|
|
Net cash used in
financing activities
|
(198.6)
|
|
|
(581.4)
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
3.3
|
|
|
(2.0)
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
40.0
|
|
|
(49.8)
|
|
|
Cash and cash
equivalents, beginning of period
|
548.4
|
|
|
491.3
|
|
|
Cash and cash
equivalents, end of period
|
$
|
588.4
|
|
|
$
|
441.5
|
|
|
|
(a) The statement of
cash flows from the 2016 period 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 $9.2 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 and margin percentages)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
July 1,
2017
|
|
June 25,
2016
|
|
July 1,
2017
|
|
June 25,
2016
|
|
|
|
|
|
|
|
|
Gross
Profit:
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
409.6
|
|
|
$
|
393.1
|
|
|
$
|
1,203.1
|
|
|
$
|
1,157.2
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
intangible assets (1)
|
79.1
|
|
|
77.9
|
|
|
217.9
|
|
|
222.2
|
|
Incremental
depreciation expense (2)
|
0.2
|
|
|
0.5
|
|
|
0.8
|
|
|
1.5
|
|
Integration/consolidation costs (3)
|
0.2
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
Fair value write-up of
acquired inventory (11)
|
19.9
|
|
|
—
|
|
|
22.3
|
|
|
|
|
Non-GAAP gross
profit
|
$
|
509.0
|
|
|
$
|
471.5
|
|
|
$
|
1,444.9
|
|
|
$
|
1,380.9
|
|
|
|
|
|
|
|
|
|
Gross Margin
Percentage:
|
|
|
|
|
|
|
|
GAAP gross margin
percentage
|
50.8
|
%
|
|
54.8
|
%
|
|
53.3
|
%
|
|
55.0
|
%
|
Impact of adjustments
above
|
12.3
|
%
|
|
10.9
|
%
|
|
10.7
|
%
|
|
10.6
|
%
|
Non-GAAP gross margin
percentage
|
63.1
|
%
|
|
65.7
|
%
|
|
64.0
|
%
|
|
65.6
|
%
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
294.6
|
|
|
$
|
253.7
|
|
|
$
|
(57.8)
|
|
|
$
|
755.6
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
intangible assets (1)
|
(15.2)
|
|
|
(21.9)
|
|
|
(47.3)
|
|
|
(67.3)
|
|
Incremental
depreciation expense (2)
|
(0.8)
|
|
|
(0.9)
|
|
|
(1.7)
|
|
|
(2.6)
|
|
Transaction expenses
(4)
|
(0.7)
|
|
|
—
|
|
|
(22.7)
|
|
|
—
|
|
Non-income tax benefit
(charge) (12)
|
12.4
|
|
|
—
|
|
|
(16.4)
|
|
|
—
|
|
Integration/consolidation costs (3)
|
(9.4)
|
|
|
(0.2)
|
|
|
(14.0)
|
|
|
(0.7)
|
|
Restructuring and
divestiture charges (3)
|
(6.0)
|
|
|
(1.5)
|
|
|
(10.8)
|
|
|
(7.5)
|
|
Gain on sale of
business (10)
|
—
|
|
|
—
|
|
|
899.7
|
|
|
—
|
|
Other (5)
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.0)
|
|
Non-GAAP operating
expenses
|
$
|
274.9
|
|
|
$
|
229.2
|
|
|
$
|
729.0
|
|
|
$
|
671.5
|
|
|
|
|
|
|
|
|
|
Operating
Margin:
|
|
|
|
|
|
|
|
GAAP income from
operations
|
115.0
|
|
|
139.4
|
|
|
1,260.9
|
|
|
401.6
|
|
Adjustments to gross
profit as detailed above
|
99.4
|
|
|
78.4
|
|
|
241.8
|
|
|
223.7
|
|
Adjustments to
operating expenses as detailed above
|
19.7
|
|
|
24.5
|
|
|
(786.8)
|
|
|
84.1
|
|
Non-GAAP income from
operations
|
$
|
234.1
|
|
|
$
|
242.3
|
|
|
$
|
715.9
|
|
|
$
|
709.4
|
|
|
|
|
|
|
|
|
|
Operating Margin
Percentage:
|
|
|
|
|
|
|
|
GAAP income from
operations margin percentage
|
14.3
|
%
|
|
19.4
|
%
|
|
55.9
|
%
|
|
19.1
|
%
|
Impact of adjustments
above
|
14.7
|
%
|
|
14.4
|
%
|
|
(24.2)
|
%
|
|
14.6
|
%
|
Non-GAAP operating
margin percentage
|
29.0
|
%
|
|
33.8
|
%
|
|
31.7
|
%
|
|
33.7
|
%
|
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
|
GAAP interest
expense
|
$
|
39.1
|
|
|
$
|
39.1
|
|
|
117.1
|
|
|
117.4
|
|
Adjustments:
|
|
|
|
|
|
|
|
Non-cash interest
expense relating to convertible notes (6)
|
(4.4)
|
|
|
(5.2)
|
|
|
(14.4)
|
|
|
(17.3)
|
|
Interest expense
relating to Cynosure dissenting shareholders (15)
|
(1.5)
|
|
|
—
|
|
|
(1.5)
|
|
|
—
|
|
Non-GAAP interest
expense
|
$
|
33.2
|
|
|
$
|
33.9
|
|
|
$
|
101.2
|
|
|
$
|
100.1
|
|
|
|
|
|
|
|
|
|
Pre-Tax
Income:
|
|
|
|
|
|
|
|
GAAP pre-tax
earnings
|
$
|
74.5
|
|
|
$
|
101.1
|
|
|
1,158.2
|
|
|
307.8
|
|
Adjustments to pre-tax
earnings as detailed above
|
125.0
|
|
|
108.1
|
|
|
(529.1)
|
|
|
325.1
|
|
Debt extinguishment
loss (7)
|
2.6
|
|
|
—
|
|
|
2.6
|
|
|
4.5
|
|
Gain on sale of
available-for-sale marketable securities (8)
|
—
|
|
|
—
|
|
|
(3.7)
|
|
|
(25.1)
|
|
Unrealized losses
(gains) on forward foreign currency contracts (9)
|
3.5
|
|
|
(0.2)
|
|
|
(1.1)
|
|
|
(0.6)
|
|
Non-GAAP pre-tax
Income
|
$
|
205.6
|
|
|
$
|
209.0
|
|
|
626.9
|
|
|
611.7
|
|
|
|
|
|
|
|
|
|
Net
income:
|
|
|
|
|
|
|
|
GAAP net
income
|
$
|
59.5
|
|
|
$
|
84.8
|
|
|
$
|
672.8
|
|
|
$
|
238.7
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
intangible assets (1)
|
94.3
|
|
|
99.8
|
|
|
265.2
|
|
|
289.5
|
|
Fair value write-up of
acquired inventory (11)
|
19.9
|
|
|
—
|
|
|
22.3
|
|
|
—
|
|
Non-cash interest
expense relating to convertible notes (6)
|
4.4
|
|
|
5.2
|
|
|
14.4
|
|
|
17.3
|
|
Interest expense
relating to Cynosure dissenting shareholders (15)
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
Restructuring,
divestiture and integration/consolidation costs (3)
|
15.6
|
|
|
1.7
|
|
|
25.6
|
|
|
8.2
|
|
Non-income tax
(benefit) charge (12)
|
(12.4)
|
|
|
—
|
|
|
16.4
|
|
|
—
|
|
Transaction expenses
(4)
|
0.7
|
|
|
—
|
|
|
22.7
|
|
|
—
|
|
Incremental
depreciation expenses (2)
|
1.0
|
|
|
1.4
|
|
|
2.5
|
|
|
4.1
|
|
Debt extinguishment
loss (7)
|
2.6
|
|
|
—
|
|
|
2.6
|
|
|
4.5
|
|
Gain on sale of
available-for-sale marketable securities (8)
|
—
|
|
|
—
|
|
|
(3.7)
|
|
|
(25.1)
|
|
Unrealized losses
(gains) on forward foreign currency contracts (9)
|
3.5
|
|
|
(0.2)
|
|
|
(1.1)
|
|
|
(0.6)
|
|
Gain on sale of
business (10)
|
—
|
|
|
—
|
|
|
(899.7)
|
|
|
—
|
|
Other charges
(5)
|
—
|
|
|
—
|
|
|
—
|
|
|
6.0
|
|
Income tax effect of
reconciling items (13)
|
(45.7)
|
|
|
(47.6)
|
|
|
294.2
|
|
|
(126.6)
|
|
Non-GAAP net
income
|
$
|
144.9
|
|
|
$
|
145.1
|
|
|
$
|
435.7
|
|
|
$
|
416.0
|
|
|
|
|
|
|
|
|
|
Net Income
Percentage:
|
|
|
|
|
|
|
|
GAAP net income
percentage
|
7.4
|
%
|
|
11.8
|
%
|
|
29.8
|
%
|
|
11.3
|
%
|
Impact of adjustments
above
|
10.6
|
%
|
|
8.4
|
%
|
|
(10.5)
|
%
|
|
8.4
|
%
|
Non-GAAP net income
percentage
|
18.0
|
%
|
|
20.2
|
%
|
|
19.3
|
%
|
|
19.7
|
%
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
GAAP earnings per share
- Diluted
|
$
|
0.21
|
|
|
$
|
0.30
|
|
|
$
|
2.35
|
|
|
$
|
0.83
|
|
Adjustment to net
earnings (as detailed above)
|
0.29
|
|
|
0.21
|
|
|
(0.83)
|
|
|
0.62
|
|
Non-GAAP earnings per
share – diluted (14)
|
$
|
0.50
|
|
|
$
|
0.51
|
|
|
$
|
1.52
|
|
|
$
|
1.45
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
$
|
144.9
|
|
|
$
|
145.1
|
|
|
$
|
435.7
|
|
|
$
|
416.0
|
|
Interest expense, net,
not adjusted above
|
32.2
|
|
|
33.8
|
|
|
97.9
|
|
|
99.5
|
|
Provision for income
taxes
|
60.6
|
|
|
63.8
|
|
|
191.2
|
|
|
195.7
|
|
Depreciation expense,
not adjusted above
|
23.0
|
|
|
19.8
|
|
|
61.0
|
|
|
57.2
|
|
Adjusted
EBITDA
|
$
|
260.7
|
|
|
$
|
262.5
|
|
|
$
|
785.8
|
|
|
$
|
768.4
|
|
|
|
|
|
|
|
|
|
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 from Gen-Probe 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.
(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 $200.0 million principal of the 2012 and 2013
Convertible Notes in fiscal 2017 and $226.6
million principal of the 2010 and 2012 Convertible Notes in
fiscal 2016.
(8) To reflect realized gains on the sale of available-for-sale
marketable securities.
(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 a charge recorded
in the second quarter of fiscal 2017 of $28.8 million as the Company determined during
the second quarter 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 32.0% for fiscal 2017 and 2016.
(14) Non-GAAP earnings per share was calculated based on 287,638
and 285,957 weighted average diluted shares outstanding for the
three and nine months ended July 1, 2017 and 282,302 and
287,377 for the three and nine months ended June 25, 2016.
(15) To reflect interest expense accrued as required by law
related to the value owed to the Cynosure shareholders who
dissented and did not tender their shares as they are challenging
the value of the acquisition.
Reconciliation of
GAAP to non-GAAP EPS Guidance:
|
|
|
Guidance
Range
|
|
Guidance
Range
|
|
Quarter
Ending
September 30,
2017
|
|
Year Ending
September 30,2017
|
|
Low
|
High
|
|
Low
|
High
|
GAAP Net Income Per
Share
|
$0.21
|
$0.23
|
|
$2.49
|
$2.51
|
Amortization of Intangible Assets
|
$0.33
|
$0.33
|
|
$1.25
|
$1.25
|
Amortization of Debt Discount
|
$0.01
|
$0.01
|
|
$0.06
|
$0.06
|
Restructuring, Integration and Other Charges / (Benefit)
|
$0.03
|
$0.03
|
|
$0.18
|
$0.18
|
Transaction Expenses
|
$-
|
$-
|
|
$0.08
|
$0.08
|
Cynosure Inventory FV Adjustments
|
$0.06
|
$0.06
|
|
$0.14
|
$0.14
|
Gain
from Sale of Blood Screening
|
$-
|
$-
|
|
$(3.12)
|
$(3.12)
|
Tax
Impact of Exclusions
|
($0.16)
|
($0.16)
|
|
$0.92
|
$0.92
|
Non-GAAP Net Income
Per Share
|
$0.48
|
$0.50
|
|
$2.00
|
$2.02
|
Reconciliations of
Reported to Constant Currency Revenue:
|
|
$s in
millions
|
Q3'17
|
Q3'16
|
Reported
Change
|
Foreign Currency
Effect
$
%
|
Constant
Currency
Change
|
Cytology &
Perinatal
|
$121.0
|
$122.2
|
(1.0%)
|
$1.5
|
1.2%
|
0.2%
|
Molecular
Diagnostics
|
$144.1
|
$131.8
|
9.3%
|
$1.3
|
1.0%
|
10.3%
|
Blood
Screening
|
$19.0
|
$55.9
|
(66.0%)
|
-
|
-
|
(66.0%)
|
Total
Diagnostics
|
$284.1
|
$309.9
|
(8.3%)
|
$2.8
|
0.9%
|
(7.4%)
|
Breast Imaging
|
$236.5
|
$239.3
|
(1.2%)
|
$1.0
|
0.5%
|
(0.7%)
|
Interventional Breast
Solutions
|
$45.0
|
$41.3
|
9.0%
|
$0.2
|
0.4%
|
9.4%
|
Other
|
$2.2
|
$2.0
|
12.7%
|
$0.1
|
3.1%
|
15.8%
|
Total Breast
Health
|
$283.7
|
$282.5
|
0.4%
|
$1.2
|
0.5%
|
0.9%
|
Body
|
$36.7
|
-
|
-
|
-
|
-
|
-
|
Skin
|
$45.4
|
-
|
-
|
-
|
-
|
-
|
Women's
Health/Other
|
$27.9
|
-
|
-
|
-
|
-
|
-
|
Total Medical
Aesthetics
|
$110.0
|
-
|
-
|
-
|
-
|
-
|
GYN
Surgical
|
$106.5
|
$102.0
|
4.4%
|
$0.8
|
0.8%
|
5.2%
|
Skeletal
Health
|
$21.8
|
$23.0
|
(5.3%)
|
$0.1
|
0.3%
|
(5.0%)
|
Total
|
$806.1
|
$717.4
|
12.4%
|
$5.3
|
0.7%
|
13.1%
|
|
U.S.
Change
|
International
Change (Reported)
|
Foreign Currency
Effect $
%
|
International
Change (Constant
Currency)
|
|
Increase
(Decrease)
|
Diagnostics
|
(2.2%)
|
(25.5%)
|
$2.7
|
3.4%
|
(22.1%)
|
Diagnostics ex. Blood
|
3.5%
|
7.4%
|
$2.7
|
4.9%
|
12.3%
|
Breast
Health
|
(1.7%)
|
10.6%
|
$1.2
|
2.4%
|
13.0%
|
Medical
Aesthetics
|
-
|
-
|
-
|
-
|
-
|
GYN
Surgical
|
4.4%
|
4.6%
|
$0.8
|
5.2%
|
9.8%
|
Skeletal
Health
|
0.8%
|
(16.8%)
|
$0.1
|
0.7%
|
(16.1%)
|
Total
Revenues
|
9.5%
|
23.0%
|
$5.3
|
3.5%
|
26.5%
|
Total
Revenues ex. Blood and Medical Aesthetics
|
1.3%
|
6.8%
|
$4.8
|
3.7%
|
10.5%
|
|
Trailing Twelve
Months
ended
July 1,
2017
|
Return on Invested
Capital:
|
|
|
|
Adjusted Net
Operating Profit After Tax
|
|
Non-GAAP net
income
|
$
|
581.4
|
|
Non-GAAP provision
for income taxes
|
256.7
|
|
Non-GAAP interest
expense
|
134.0
|
|
Non-GAAP other
income
|
(14.1)
|
|
Adjusted net
operating profit before tax
|
$
|
958.0
|
|
Non-GAAP average
effective tax rate (1)
|
30.63
|
%
|
Adjusted net
operating profit after tax
|
$
|
664.5
|
|
|
|
Average Net Debt plus
Average Stockholders' Equity (2)
|
|
Average total
debt
|
$
|
3,321.5
|
|
Less: Average cash,
cash equivalents and restricted cash
|
(514.9)
|
|
Average net
debt
|
$
|
2,806.6
|
|
Average stockholders'
equity (3)
|
$
|
2,486.3
|
|
Average net debt plus
average stockholders' equity
|
$
|
5,292.9
|
|
|
|
Adjusted
ROIC
|
|
Adjusted ROIC
(adjusted net operating profit after tax above divided by average net debt plus stockholders'
equity above)
|
12.56
|
%
|
|
|
(1) ROIC is
presented on a TTM basis; non-GAAP effective tax rate for the three
months ended September 24, 2016 was 31.03%, the three months ended
December 31, 2016 and April 1, 2017 was 31.00%, and the three
months ended July 1, 2017 was 29.48%.
|
(2) Calculated
using the average of the balances as of July 1, 2017 and
June 25, 2016.
|
(3) Adjusted
(increased) to eliminate the effect of the impairment of intangible
assets of $32.2 million in fiscal 2014.
|
|
|
As
of
|
|
July 1,
2017
|
Leverage
Ratio:
|
|
|
|
Total principal
debt
|
$
|
3,259.7
|
|
Total cash
|
(588.4)
|
|
Net principal debt,
as adjusted
|
$
|
2,671.3
|
|
EBITDA for the last
four quarters
|
$
|
1,049.6
|
|
Leverage
Ratio
|
2.55
|
|
|
|
Other Supplemental
Information:
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
July 1,
2017
|
|
June 25,
2016
|
|
July 1,
2017
|
|
June 25,
2016
|
|
|
|
|
|
|
|
|
|
Geographic
Revenues
|
|
|
|
|
|
|
|
|
U.S.
|
|
76.7
|
%
|
|
78.7
|
%
|
|
78.1
|
%
|
|
78.7
|
%
|
Europe
|
|
9.4
|
%
|
|
10.6
|
%
|
|
9.9
|
%
|
|
10.3
|
%
|
Asia-Pacific
|
|
8.7
|
%
|
|
7.5
|
%
|
|
7.9
|
%
|
|
7.6
|
%
|
All Others
|
|
5.2
|
%
|
|
3.2
|
%
|
|
4.1
|
%
|
|
3.4
|
%
|
Total
Revenues
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
Composition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3'17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposables
|
|
52.8
|
%
|
|
|
|
|
|
|
|
|
|
Capital
Equipment
|
|
30.8
|
%
|
|
|
|
|
|
|
|
|
|
Service &
Other
|
|
16.4
|
%
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/hologic-announces-financial-results-for-third-quarter-of-fiscal-2017-300498540.html
SOURCE Hologic, Inc.