SHENZHEN, China, March 9, 2015 /PRNewswire/ -- Mindray Medical
International Limited ("Mindray", NYSE: MR), a leading developer,
manufacturer and marketer of medical devices worldwide, announced
today its selected unaudited financial results for the fourth
quarter and full year ended December 31,
2014.
Highlights for Fourth Quarter and Full Year 2014
- Full year net revenues increased 9.0% year-over-year to
$1.3 billion.
- China net revenues rose 10.1%
to $606.7 million for the full year.
International sales reached $716.1
million, representing an 8.0% increase from a year ago.
- In the fourth quarter, China
net revenues increased 13.9% year-over-year to $182.7 million, while Western Europe sales achieved double-digit net
revenue growth from a year ago.
- Reagent net revenues continued to climb in the fourth quarter,
contributing 48.2% to the IVD segment, up from 41.4% in the same
period last year and 44.2% in the previous quarter.
- Net operating cash inflow for the full year grew 7.3% to
$330.5 million.
- Introduced eight new products along with several reagents in
2014, including the first cellular analysis line in hematology and
a new portable color ultrasound system.
- Declared dividend of $0.40 per
share.
"In 2014, Mindray continued to focus on innovation and
strengthening its core competencies in the face of a tough
operating environment across major markets. Western Europe remained a bright spot and its
growth reflected the success of our investments over the last few
years. The IVD segment performed well, largely driven by reagents
sales increase. Longer term, we remain upbeat about our IVD
business, based on the ramp up of our higher-end products and our
ability to offer total solutions to customers," commented Mr. Cheng
Minghe, Mindray's Co-Chief Executive Officer and Chief Strategic
Officer. "We invested more in R&D and introduced eight new
products to the market during the year. The continued dividend
payout demonstrated our commitment to returning capital to our
shareholders despite the challenges we faced."
SUMMARY – Fourth Quarter and Year
Ended December 31,
2014
(in $ millions,
except per-share data, unaudited)
|
Three Months
Ended
|
Year
Ended
|
December
31
|
December
31
|
2014
|
2013
|
%
chg
|
2014
|
2013
|
%
chg
|
Net
Revenues
|
399.0
|
368.4
|
8.3%
|
1,322.8
|
1,214.0
|
9.0%
|
Net Revenues Generated
in China
|
182.7
|
160.4
|
13.9%
|
606.7
|
551.2
|
10.1%
|
Net Revenues Generated
in International Markets
|
216.2
|
208.0
|
3.9%
|
716.1
|
662.8
|
8.0%
|
Gross
Profit
|
220.4
|
205.9
|
7.1%
|
738.5
|
686.6
|
7.6%
|
Non-GAAP Gross
Profit
|
222.4
|
208.0
|
6.9%
|
747.1
|
694.7
|
7.5%
|
Operating
Income
|
53.4
|
54.0
|
-1.0%
|
192.5
|
210.2
|
-8.4%
|
Non-GAAP Operating
Income
|
61.9
|
75.8
|
-18.3%
|
230.3
|
252.7
|
-8.9%
|
EBITDA
|
74.4
|
69.5
|
7.1%
|
254.9
|
262.9
|
-3.1%
|
Net
Income[1]
|
52.0
|
75.2
|
-30.9%
|
193.3
|
224.8
|
-14.0%
|
Non-GAAP Net
Income[1]
|
59.7
|
73.9
|
-19.1%
|
228.2
|
264.1
|
-13.6%
|
Non-GAAP Net
Income[2]
(ex tax
benefit)
|
58.4
|
65.7
|
-11.1%
|
222.1
|
236.6
|
-6.1%
|
Diluted
EPS
|
0.44
|
0.63
|
-29.9%
|
1.63
|
1.87
|
-12.8%
|
Non-GAAP Diluted
EPS
|
0.50
|
0.62
|
-18.0%
|
1.93
|
2.20
|
-12.4%
|
[1]
|
For this press release, net income and non-GAAP net income refer to
GAAP net income attributable to the Company and Non-GAAP net income
attributable to the Company as stated in exhibit below,
respectively.
|
|
|
[2]
|
The non-GAAP net
income (ex tax benefit) excludes the tax benefits of $7.4 million
and $26.8 million recognized respectively in the fourth quarter and
full year of 2013 in relation to the nationwide key software
enterprise status for the calendar years 2011, 2012 and 2013; and
$1.3 million and $5.9 million recognized respectively in the fourth
quarter and full year of 2014 in relation to the nationwide key
software enterprise status for the calendar year 2014; and the
non-GAAP tax benefits of $0.7 million recognized both in the fourth
quarter and full year of 2013 in relation to dispute charges; and
$0.1 million and $0.2 million recognized respectively in the fourth
quarter and full year of 2014 in relation to dispute related legal
fees.
|
Fourth Quarter 2014 Results
Net Revenues
Mindray reported net revenues of $399.0
million for the fourth quarter of 2014, an 8.3% increase
from the fourth quarter of 2013.
- Net revenues generated in China increased 13.9% year-over-year to
$182.7 million.
- Net revenues generated in the international markets increased
3.9% year-over-year to $216.2
million.
Performance by Segment
Patient Monitoring and Life Support Products: Net
revenues in this segment increased 5.0% year-over-year to
$149.8 million, contributing 37.6% to
total net revenues in this quarter.
In-Vitro Diagnostic Products: Net revenues in this
segment increased 7.7% year-over-year to $103.4 million, contributing 25.9% to total net
revenues in this quarter. Reagents sales represented 48.2% of this
segment's net revenues.
Medical Imaging Systems: Net revenues in this segment
increased 11.9% from a year ago to $108.6
million, contributing 27.2% to total net revenues in this
quarter.
Others: Other net revenues increased 13.5% year-over-year
to $37.2 million, contributing 9.3%
to total net revenues in this quarter. Other net revenues mainly
include sales from the orthopedics business, service revenues from
extended warranties, sales of accessories and repair-service
revenues for the post-warranty period.
Gross Profit
Fourth quarter 2014 gross profit was $220.4 million, a 7.1% increase year-over-year.
Gross margin was 55.3% in the fourth quarter of 2014 compared to
55.9% in the fourth quarter of 2013 and 56.3% in the third quarter
of 2014. Fourth quarter 2014 non-GAAP gross profit was $222.4 million, a 6.9% increase from the fourth
quarter of 2013. Non-GAAP gross margin was 55.8% in the fourth
quarter of 2014 compared to 56.5% in the fourth quarter of 2013 and
57.0% in the third quarter of 2014.
Operating Expenses
Selling expenses for the fourth quarter of 2014 were
$77.9 million, or 19.5% of total net
revenues, compared to 16.7% in the fourth quarter of 2013 and 20.3%
in the third quarter of 2014. Non-GAAP selling expenses for the
fourth quarter of 2014 were $75.0
million, or 18.8% of total net revenues, compared to 16.1%
in the fourth quarter of 2013 and 18.9% in the third quarter of
2014.
General and administrative expenses for the fourth quarter of
2014 were $40.3 million, or 10.1% of
total net revenues, compared to 13.5% in the fourth quarter of 2013
and 12.1% in the third quarter of 2014. Non-GAAP general and
administrative expenses for the fourth quarter of 2014 were
$37.8 million, or 9.5% of total net
revenues, compared to 9.1% in the fourth quarter of 2013 and 11.1%
in the third quarter of 2014.
Research and development expenses for the fourth quarter of 2014
were $48.8 million, or 12.2% of total
net revenues, compared to 11.1% in the fourth quarter of 2013 and
10.6% in the third quarter of 2014. Non-GAAP research and
development expenses for the fourth quarter of 2014 were
$47.7 million, or 12.0% of total net
revenues, compared to 10.7% in the fourth quarter of 2013 and 10.2%
in the third quarter of 2014.
Total share-based compensation expenses for the fourth quarter
of 2014, which were allocated to cost of revenues and related
operating expenses, were $3.6
million, compared to $3.8
million in the fourth quarter of 2013 and $4.9 million in the third quarter of 2014.
Operating Income
Operating income for the fourth quarter of 2014 was $53.4 million, a 1.0% decrease from the fourth
quarter of 2013. Operating margin was 13.4% in the fourth quarter
of 2014, compared to 14.6% in the fourth quarter of 2013 and
unchanged from the third quarter of 2014. Non-GAAP operating income
for the fourth quarter of 2014 was $61.9
million, an 18.3% decrease from the fourth quarter of 2013.
Non-GAAP operating margin was 15.5% in the fourth quarter of 2014,
compared to 20.6% in the fourth quarter of 2013 and 16.8% in the
third quarter of 2014.
Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA")
Fourth quarter 2014 EBITDA increased 7.1% year-over-year to
$74.4 million.
Net Income
Fourth quarter 2014 net income decreased 30.9% from a year ago
to $52.0 million. Net margin was
13.0% in the fourth quarter of 2014, compared to 20.4% in the
fourth quarter of 2013 and 14.2% in the third quarter of 2014.
Fourth quarter 2014 non-GAAP net income decreased 19.1%
year-over-year to $59.7 million.
Non-GAAP net margin was 15.0% in the fourth quarter of 2014,
compared to 20.0% in the fourth quarter of 2013 and 17.3% in the
third quarter of 2014. Fourth quarter 2014 income tax expense was
$16.8 million, representing an
effective tax rate of 23.9%.
Excluding the tax benefits related to the nationwide key
software enterprise status, fourth quarter 2014 non-GAAP net income
decreased 11.1% year-over-year to $58.4
million and non-GAAP net margin in the fourth quarter of
2014 was 14.6%, compared to 17.8% in the fourth quarter of 2013 and
16.9% in the third quarter of 2014.
Fourth quarter 2014 basic and diluted earnings per share were
both $0.44, compared to $0.64 and $0.63
respectively in the fourth quarter of 2013. Fourth quarter 2014
basic and diluted non-GAAP earnings per share were $0.51 and $0.50,
compared to $0.62 for both in the
fourth quarter of 2013. Excluding the tax benefits, diluted
non-GAAP earnings per share was $0.49
in the fourth quarter of 2014, compared to $0.55 in the fourth quarter of 2013. Shares used
in the computation of diluted earnings per share for the fourth
quarter of 2014 were approximately 118.4 million.
Other Selected Data
Accounts receivable turnover days were 48 days in the fourth
quarter of 2014, improved from 50 days in the fourth quarter of
2013 and 55 days in the third quarter of 2014. Inventory turnover
days were 82 days in the fourth quarter of 2014, compared to 79
days in the fourth quarter of 2013 and 106 days in the third
quarter of 2014. Accounts payable turnover days were 54 days in the
fourth quarter of 2014, unchanged from the fourth quarter of 2013
and compared to 67 days in the third quarter of 2014. Mindray
calculates the above working capital days using the average of
beginning and ending net balances of the quarter.
As of December 31, 2014, the
company had a total of $1.1 billion
in cash and cash equivalents, and short-term investments as
compared to $1.2 billion as of
December 31, 2013 and $1.0 billion as of September 30, 2014. Net cash generated by
operating activities and net cash outflow for capital expenditures
for the fourth quarter of 2014 were $140.7
million and $28.0 million,
respectively.
As of December 31, 2014, the
company had more than 8,200 employees, including those from
acquired businesses.
Full Year 2014 Results
Mindray reported net revenues of $1.3
billion for the full year 2014, a 9.0% increase from the
full year 2013.
- Net revenues generated in China for the full year 2014 increased 10.1%
year-over-year to $606.7
million.
- Net revenues generated in the international markets for the
full year 2014 increased 8.0% from a year ago to $716.1 million.
Full year 2014 EBITDA decreased 3.1% to $254.9 million from full year 2013.
Full year 2014 net income decreased 14.0% to $193.3 million from a year ago. Net margin for
full year 2014 was 14.6% compared to 18.5% in 2013. Full year 2014
non-GAAP net income decreased 13.6% to $228.2 million from 2013. Non-GAAP net margin for
full year 2014 was 17.2% compared to 21.8% in 2013. Full year 2014
income tax expense was $35.5 million,
representing an effective tax rate of 15.1%.
Excluding tax benefits, full year 2014 non-GAAP net income
decreased 6.1% year-over-year to $222.1
million and non-GAAP net margin was 16.8% in 2014 compared
to 19.5% in 2013. Full year 2014 diluted earnings per share
decreased 12.8% to $1.63 from
$1.87 in 2013. Full year 2014
non-GAAP diluted earnings per share decreased 12.4% to $1.93 from $2.20 in
2013. Excluding the tax benefits, full year 2014 diluted non-GAAP
earnings per share was $1.88, down
4.8% compared to $1.97 in 2013.
Dividend Declaration
Mindray's board of directors has declared a cash dividend on its
ordinary shares of $0.40 per share,
based on the company's net income for the full year 2014. The cash
dividend will be payable on or around March
31, 2015 to shareholders of record as of March 19, 2015. The company has approximately 118
million outstanding ordinary shares as of February 27, 2015.
Business Outlook for Full Year 2015
The company anticipates its full year 2015 net revenues to grow
by a mid-single digit percentage over its full year 2014 net
revenues. The company also expects its full year 2015 non-GAAP net
income to decrease by a high-single digit percentage over its full
year 2014 non-GAAP net income. This guidance excludes the tax
benefits related to the nationwide key software enterprise status
and assumes a corporate income tax rate of 15% applicable to the
Shenzhen subsidiary.
The company expects its capital expenditure for 2015 to be
around $150 million.
The company's practice is to provide guidance on a full year
basis only. This forecast reflects Mindray's current and
preliminary views, which are subject to change.
Board of Directors Change
Separately, the company announced that the Board of Directors
has appointed Mr. Li Xiting as
Executive Chairman of the Board. Mr. Li is President, Co-Chief
Executive Officer and Director of the Board. Mr. Xu Hang will continue to serve as Chairman of
the Board.
"As we continue to grow in today's volatile market environment,
the Board and I decided that it is best for Mr. Li to lead the
Board as Executive Chairman," said Mr. Xu, "As a significant
shareholder, I am fully confident in Mr. Li's ability to fulfill
his new role and steer the company to the next level. I look
forward to working closely with Mr. Li to ensure the future success
of our company."
"I am honored to accept this new appointment," said Mr. Li. "As
I continue to lead the company, I am fully aware of our near-term
challenges as management expects headwinds to persist in our key
markets. Nevertheless, we will continue to drive our long-term
growth by investing in our core capabilities, strengthening our
competitive position, improving our operational efficiency, and
searching for M&A and other growth opportunities. We believe
these long-term corporate strategies will lay a strong foundation
for the company for years to come."
Conference Call Information
Mindray's management will hold an earnings conference call at
8:00 AM on Mar
10, 2015 U.S. Eastern Time (8:00
PM on Mar 10, 2015
Beijing/Hong Kong Time).
Dial-in details for the earnings conference call are as
follows:
International Toll
Free:
|
|
United
States:
|
866-519-4004
|
United
Kingdom:
|
080-8234-6646
|
Hong Kong:
|
800-906-601
|
China:
|
800-819-0121
|
|
|
Local dial-in
numbers:
|
|
United
States:
|
+1-845-675-0437
|
United
Kingdom:
|
+44-20-3059-8139
|
Hong Kong:
|
+852-3018-6771
|
China:
|
400-620-8038
|
Passcode for all
regions: Mindray
|
|
A replay of the conference call may be accessed by phone at the
following numbers until Mar 25,
2015.
U.S. Toll
Free:
|
+1-855-452-5696
|
International:
|
+1-646-254-3697
|
Passcode:
|
79496488
|
Additionally, a live and archived webcast of this conference
call will be available on the Investor Relations section of
Mindray's website at: http://ir.mindray.com/
Use of Non-GAAP Financial Measures
Mindray's full year 2014 results reported in this release are
unaudited and remain subject to the finalization of the company's
year-end closing, reporting and audit processes.
Mindray provides gross profit, selling expenses, general and
administrative expenses, R&D expenses, operating income, net
income and earnings per share on a non-GAAP basis that excludes
share-based compensation expense, acquired intangible assets
amortization expense, dispute charges, dispute related legal fees
and withholding tax for intra-group fund transfer, all net of
related tax impact, as well as EBITDA to enable investors to better
assess the company's operating performance. The non-GAAP measures
described by the company are reconciled to the corresponding GAAP
measure in the exhibit below titled "Reconciliations of non-GAAP
results of operations measures to the nearest comparable GAAP
measures".
The company has reported operation results for the fourth
quarter and full year 2014 and its comparative periods on a
non-GAAP basis. Each of the terms as used by the company is defined
as follows:
- Non-GAAP gross profit represents gross profit reported in
accordance with GAAP, adjusted for the effects of share-based
compensation and amortization of acquired intangible assets.
- Non-GAAP operating income represents operating income reported
in accordance with GAAP, adjusted for the effects of share-based
compensation, amortization of acquired intangible assets, dispute
charges, and dispute related legal fees.
- Non-GAAP selling expenses represent selling expenses reported
in accordance with GAAP, adjusted for the effects of share-based
compensation and amortization of acquired intangible assets.
- Non-GAAP general and administrative expenses represent general
and administrative expenses reported in accordance with GAAP,
adjusted for the effects of share-based compensation, dispute
charges, and dispute related legal fees.
- Non-GAAP research and development expenses represent research
and development expenses reported in accordance with GAAP, adjusted
for the effects of share-based compensation.
- Non-GAAP net income represents net income reported in
accordance with GAAP, adjusted for the effects of share-based
compensation, amortization of acquired intangible assets, dispute
charges, dispute related legal fees, and withholding tax for
intra-group fund transfer, all net of related tax impact.
- Non-GAAP earnings per share represents non-GAAP net income
divided by the number of shares used in computing basic and diluted
earnings per share in accordance with GAAP, and excludes the impact
of the declared dividends for the basic calculation.
- EBITDA represents net income reported in accordance with GAAP,
adjusted for the effect of interest income and expenses, income tax
provision/benefits, depreciation and amortization.
The company computes its non-GAAP financial measures using the
same consistent method from quarter to quarter. The company notes
that these measures may not be calculated on the same basis of
similar measures used by other companies. Readers are cautioned not
to view non-GAAP results on a stand-alone basis or as a substitute
for results under GAAP, or as being comparable to results reported
or forecasted by other companies, and should refer to the
reconciliation of GAAP results with non-GAAP results for the three
months and years ended December 31,
2013 and 2014, respectively, in the attached financial
information.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Statements that are not historical
facts, including, without limitation, statements about Mindray's
anticipated net revenues, non-GAAP net income and capital
expenditure for 2015, our assumption of a corporate income tax rate
of 15% applicable to the Shenzhen
subsidiary, statement about our near term challenges, management's
expectation of headwinds to persist in our key markets, statements
that longer term, we remain upbeat about our IVD business, based on
the ramp up of our higher-end products and our ability to offer
total solutions to customers, that we will continue to drive our
long-term growth by investing in our core capabilities,
strengthening our competitive position, improving our operational
efficiency, and searching for M&A and other growth
opportunities, that we believe our long-term corporate strategies
will lay a strong foundation for the company for years to come and
other statements under "Business Outlook for Full Year 2015" are
forward-looking statements. Readers are cautioned that these
forward-looking statements are only predictions and may differ
materially from actual results due to a variety of factors,
including, without limitation, the growth and expected growth of
the medical device market in China
and internationally; applicable government policies and
regulations; our ability to satisfy the requirements imposed by
relevant regulatory bodies; market acceptance of our products; our
expectations regarding demand for our products; our ability to
expand our production, our sales and distribution network and other
aspects of our operations; our ability to stay abreast of market
trends and technological advances; our ability to effectively
protect our intellectual property rights and not infringe on the
intellectual property rights of others; our ability to settle
disputes with our customers and suppliers; competition in the
medical device industry in China
and internationally; and general economic and business conditions
in the countries in which we operate. For a discussion of other
important factors that could adversely affect our business,
financial condition, results of operations and prospects, see "Risk
Factors" beginning on page 5 of our annual report on Form 20-F
which was filed on April 28, 2014.
Our results of operations for the fourth quarter of 2014 and the
full year ended December 31, 2014 are
not necessarily indicative of our operating results for any future
periods. The company has not completed its audit of 2014 financial
statements and the selected unaudited financial results for the
fourth quarter and full year ended December
31, 2014 announced today are subject to adjustments. The
anticipated results for the fourth quarter and full year ended
December 31, 2014 remain subject to
the finalization of the company's year-end closing, reporting and
audit processes, particularly as related to accrued expenses,
income taxes, share-based compensation expenses, and expenses
and/or amortization of intangible assets. The financial information
contained in this release should be read in conjunction with the
consolidated financial statements and notes thereto included in our
public filings with the Securities and Exchange Commission. Any
projections in this release are based on limited information
currently available to us, which is subject to change. Although
such projections and the factors influencing them will likely
change, we will not necessarily update the information. Such
information speaks only as of the date of this release.
All references to "shares" are to our ordinary shares, which are
divided into two classes, Class A and Class B. Each of our American
Depositary Shares, which trade on the New York Stock Exchange,
represents one Class A ordinary share.
About Mindray
We are a leading developer, manufacturer and marketer of medical
devices worldwide. We maintain our global headquarters in
Shenzhen, China, U.S. headquarters
in Mahwah, New Jersey and multiple
sales offices in major international markets. From our main
manufacturing and engineering base in China, we supply through our worldwide
distribution network a broad range of products across three primary
business segments, namely patient monitoring and life support,
in-vitro diagnostic, and medical imaging systems. For more
information, please visit http://ir.mindray.com.
For investor and media inquiries, please contact:
In China:
Cathy Gao
Mindray Medical International Limited
Tel: +86-755-8188-8023
Email: cathy.gao@mindray.com
In the U.S:
Hoki Luk
Western Bridge, LLC
Tel: +1-646-808-9150
Email: hoki.luk@westernbridgegroup.com
Exhibit
1
|
|
|
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In thousands of
US dollars)
|
|
|
|
|
|
|
|
|
|
|
As of December
31, 2013
|
|
As of December 31,
2014
|
|
|
US$
|
|
US$
|
|
|
(Note
1)
|
|
(unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents (Note 2)
|
385,224
|
|
276,598
|
|
Restricted cash (Note
3)
|
759
|
|
7,422
|
|
Short-term
investments (Note 2)
|
847,041
|
|
816,394
|
|
Accounts receivable,
net
|
220,228
|
|
222,522
|
|
Inventories
|
138,808
|
|
150,642
|
|
Value added tax
receivables
|
10,225
|
|
3,432
|
|
Other
receivables
|
21,512
|
|
23,316
|
|
Prepayments and
deposits
|
14,310
|
|
16,481
|
|
Deferred tax
assets,net
|
9,585
|
|
14,802
|
Total current
assets
|
1,647,692
|
|
1,531,609
|
|
|
|
|
|
Restricted cash,
non-current (Note 3)
|
17,453
|
|
5,061
|
Other
assets
|
10,755
|
|
9,666
|
Accounts receivables,
net, non-current
|
1,389
|
|
3,350
|
Advances for purchase
of property, plant and equipment
|
18,919
|
|
21,840
|
Property, plant and
equipment, net
|
324,710
|
|
412,733
|
Land use rights,
net
|
59,463
|
|
59,057
|
Intangible assets,
net
|
181,077
|
|
175,451
|
Goodwill
|
242,476
|
|
254,435
|
Total
assets
|
2,503,934
|
|
2,473,202
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term bank
loans
|
260,000
|
|
59,625
|
|
Notes
payable
|
10,945
|
|
9,234
|
|
Accounts
payable
|
93,673
|
|
93,523
|
|
Advances from
customers
|
28,240
|
|
31,396
|
|
Salaries
payable
|
91,220
|
|
114,583
|
|
Other payables and
current liabilities
|
118,951
|
|
168,139
|
|
Purchase
consideration payable
|
20,457
|
|
17,173
|
|
Income taxes
payable
|
20,721
|
|
20,415
|
|
Other taxes
payable
|
12,832
|
|
10,342
|
Total current
liabilities
|
657,039
|
|
524,430
|
|
|
|
|
|
Long-term bank
loans
|
215,703
|
|
197,585
|
Other long-term
liabilities
|
7,222
|
|
10,670
|
Deferred tax
liabilities, net
|
45,812
|
|
69,233
|
Total
liabilities
|
925,776
|
|
801,918
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Ordinary
shares
|
15
|
|
15
|
Additional paid-in
capital
|
521,617
|
|
453,564
|
Retained
earnings
|
865,676
|
|
1,000,257
|
Accumulated other
comprehensive income
|
150,432
|
|
144,120
|
Treasury stock at
cost
|
(18,792)
|
|
-
|
Total shareholders'
equity
|
1,518,948
|
|
1,597,956
|
|
|
|
|
|
Non-controlling
interests
|
59,210
|
|
73,328
|
Total
equity
|
1,578,158
|
|
1,671,284
|
Total liabilities and
equity
|
2,503,934
|
|
2,473,202
|
|
|
|
|
|
(1) Financial
information is extracted from the audited financial statements
included in the Company's 2013 annual report on Form
20-F.
|
(2) In respect of
cash and cash equivalents and short-term investments, there is an
aggregate compensating balance arrangement of $241,500 and $189,000
as of December 31, 2013 and December 31, 2014, respectively in
relation to the drawings of certain bank loans.
|
(3) Restricted cash
are mainly those purchase consideration in connection with our
acquisitions being held on escrow accounts.
|
Exhibit
2
|
|
|
|
|
|
|
|
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
(In thousands of
US dollars, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31,
|
|
Year ended December 31,
|
|
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(Note
1)
|
|
(unaudited)
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
-
China
|
|
160,401
|
|
182,749
|
|
551,155
|
|
606,745
|
|
-
International
|
|
208,014
|
|
216,206
|
|
662,832
|
|
716,069
|
|
Net
revenues
|
|
368,415
|
|
398,955
|
|
1,213,987
|
|
1,322,814
|
|
Cost of
revenues
|
|
(162,516)
|
|
(178,523)
|
|
(527,402)
|
|
(584,310)
|
|
Gross
profit
|
|
205,899
|
|
220,432
|
|
686,585
|
|
738,504
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
(61,374)
|
|
(77,898)
|
|
(220,589)
|
|
(261,965)
|
|
General and
administrative expenses
|
|
(49,565)
|
|
(40,332)
|
|
(128,308)
|
|
(137,016)
|
|
Research and
development expenses
|
|
(40,990)
|
|
(48,784)
|
|
(127,464)
|
|
(146,997)
|
|
Income from
operations
|
|
53,970
|
|
53,418
|
|
210,224
|
|
192,526
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
3,049
|
|
7,138
|
|
3,881
|
|
9,363
|
|
Interest
income
|
|
10,786
|
|
10,998
|
|
37,047
|
|
38,985
|
|
Interest
expense
|
|
(2,160)
|
|
(1,252)
|
|
(6,345)
|
|
(6,400)
|
|
Income before income
taxes and non-controlling interests
|
|
65,645
|
|
70,302
|
|
244,807
|
|
234,474
|
|
Income tax benefits
(provision)
|
|
11,484
|
|
(16,808)
|
|
(14,260)
|
|
(35,485)
|
|
Net
income
|
|
77,129
|
|
53,494
|
|
230,547
|
|
198,989
|
|
Less: Net income
attributable to non-controlling interests
|
|
(1,913)
|
|
(1,501)
|
|
(5,793)
|
|
(5,697)
|
|
Net income
attributable to the Company
|
|
75,216
|
|
51,993
|
|
224,754
|
|
193,292
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
0.64
|
|
0.44
|
|
1.91
|
|
1.65
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
0.63
|
|
0.44
|
|
1.87
|
|
1.63
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the
computation of:
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
118,300,560
|
|
117,288,346
|
|
117,705,414
|
|
117,057,116
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
120,006,267
|
|
118,360,611
|
|
120,051,635
|
|
118,412,460
|
|
|
|
|
|
|
|
|
|
|
|
(1) Financial
information is extracted from the audited financial statements
included in the Company's 2013 annual report on Form
20-F.
|
Exhibit
3
|
|
|
|
|
|
|
|
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
(In thousands of
US dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31,
|
|
Year
ended December 31,
|
|
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(Note
1)
|
|
(unaudited)
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net
income
|
77,129
|
|
53,494
|
|
230,547
|
|
198,989
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
21,189
|
|
27,414
|
|
72,293
|
|
99,080
|
|
|
Changes in
assets and liabilities, net of effects of acquisitions
|
23,878
|
|
59,757
|
|
5,078
|
|
32,385
|
|
Net cash provided
by operating activities
|
122,196
|
|
140,665
|
|
307,918
|
|
330,454
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
Acquisition cost of subsidiaries, net of cash
received
|
(4,358)
|
|
(2,697)
|
|
(109,376)
|
|
(11,764)
|
|
|
Capital
expenditures
|
(41,901)
|
|
(28,016)
|
|
(109,080)
|
|
(107,124)
|
|
|
Decrease
in restricted cash and restricted investment
|
356
|
|
5,160
|
|
3,316
|
|
4,370
|
|
|
Proceeds
from sale of short-term investments
|
61,088
|
|
25,077
|
|
652,896
|
|
825,839
|
|
|
Increase
in short-term investments and changes in other investing
activities
|
(68,152)
|
|
(54,510)
|
|
(862,297)
|
|
(804,159)
|
|
Net cash used in
investing activities
|
(52,967)
|
|
(54,986)
|
|
(424,541)
|
|
(92,838)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
Repayment of bank loans
|
-
|
|
(4,375)
|
|
(35,000)
|
|
(214,375)
|
|
|
Proceeds
from bank loans
|
156,715
|
|
-
|
|
371,715
|
|
-
|
|
|
Dividend
paid
|
-
|
|
-
|
|
(59,070)
|
|
(58,711)
|
|
|
Proceeds
from exercise of options
|
491
|
|
579
|
|
16,091
|
|
3,324
|
|
|
Repurchase of ordinary American depositary shares
|
(42,369)
|
|
-
|
|
(42,369)
|
|
(68,080)
|
|
|
Cash
paid to acquire a non-controlling interest
|
-
|
|
(1,079)
|
|
-
|
|
(5,810)
|
|
|
Cash
contribution from a non-controlling interest
|
-
|
|
-
|
|
-
|
|
655
|
|
Net cash provided
by (used in) financing activities
|
114,837
|
|
(4,875)
|
|
251,367
|
|
(342,997)
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
184,066
|
|
80,804
|
|
134,744
|
|
(105,381)
|
|
|
Cash and cash
equivalents, beginning of period
|
200,018
|
|
197,384
|
|
247,859
|
|
385,224
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
1,140
|
|
(1,590)
|
|
2,621
|
|
(3,245)
|
|
Cash and cash
equivalents, end of period
|
385,224
|
|
276,598
|
|
385,224
|
|
276,598
|
|
|
|
|
|
|
|
|
|
|
|
(1) Financial
information is extracted from the audited financial statements
included in the Company's 2013 annual report on Form
20-F.
|
|
Exhibit
4
|
|
|
|
|
|
|
|
|
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
|
|
|
|
|
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE
GAAP MEASURES
|
|
(In thousands of
US dollars, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31,
|
|
Year
ended December 31,
|
|
|
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
Non-GAAP net
income attributable to the Company
|
|
73,853
|
|
59,725
|
|
264,073
|
|
228,155
|
|
|
Non-GAAP net
margin
|
|
20.0%
|
|
15.0%
|
|
21.8%
|
|
17.2%
|
|
|
Amortization of
acquired intangible assets
|
|
(3,272)
|
|
(3,389)
|
|
(13,024)
|
|
(13,773)
|
|
|
Withholding tax for
intra-group fund transfer
|
|
20,804
|
|
-
|
|
-
|
|
-
|
|
|
Deferred tax impact
related to acquired intangible assets
|
|
895
|
|
619
|
|
1,663
|
|
2,500
|
|
|
Dispute related legal
fees, net of related tax impact
|
|
-
|
|
(1,380)
|
|
-
|
|
(3,720)
|
|
|
Dispute charges, net
of related tax impact
|
|
(13,275)
|
|
-
|
|
(13,275)
|
|
-
|
|
|
Share-based
compensation
|
|
(3,789)
|
|
(3,582)
|
|
(14,683)
|
|
(19,870)
|
|
|
GAAP net income
attributable to the Company
|
|
75,216
|
|
51,993
|
|
224,754
|
|
193,292
|
|
|
GAAP net
margin
|
|
20.4%
|
|
13.0%
|
|
18.5%
|
|
14.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic
earnings per share
|
|
0.62
|
|
0.51
|
|
2.24
|
|
1.95
|
|
|
Non-GAAP diluted
earnings per share
|
|
0.62
|
|
0.50
|
|
2.20
|
|
1.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basic earnings
per share
|
|
0.64
|
|
0.44
|
|
1.91
|
|
1.65
|
|
|
GAAP diluted earnings
per share
|
|
0.63
|
|
0.44
|
|
1.87
|
|
1.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computation of:
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
118,300,560
|
|
117,288,346
|
|
117,705,414
|
|
117,057,116
|
|
|
Diluted
earnings per share
|
|
120,006,267
|
|
118,360,611
|
|
120,051,635
|
|
118,412,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
|
75,781
|
|
61,889
|
|
252,681
|
|
230,269
|
|
|
Non-GAAP operating
margin
|
|
20.6%
|
|
15.5%
|
|
20.8%
|
|
17.4%
|
|
|
Amortization of
acquired intangible assets
|
|
(3,272)
|
|
(3,389)
|
|
(13,024)
|
|
(13,773)
|
|
|
Dispute related legal
fees
|
|
-
|
|
(1,500)
|
|
-
|
|
(4,100)
|
|
|
Dispute
charges
|
|
(14,750)
|
|
-
|
|
(14,750)
|
|
-
|
|
|
Share-based
compensation
|
|
(3,789)
|
|
(3,582)
|
|
(14,683)
|
|
(19,870)
|
|
|
GAAP operating
income
|
|
53,970
|
|
53,418
|
|
210,224
|
|
192,526
|
|
|
GAAP operating
margin
|
|
14.6%
|
|
13.4%
|
|
17.3%
|
|
14.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross
profit
|
|
208,048
|
|
222,445
|
|
694,689
|
|
747,102
|
|
|
Non-GAAP gross
margin
|
|
56.5%
|
|
55.8%
|
|
57.2%
|
|
56.5%
|
|
|
Amortization of
acquired intangible assets
|
|
(1,937)
|
|
(1,802)
|
|
(7,352)
|
|
(7,478)
|
|
|
Share-based
compensation
|
|
(212)
|
|
(211)
|
|
(752)
|
|
(1,120)
|
|
|
GAAP gross
profit
|
|
205,899
|
|
220,432
|
|
686,585
|
|
738,504
|
|
|
GAAP gross
margin
|
|
55.9%
|
|
55.3%
|
|
56.6%
|
|
55.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP selling
expenses
|
|
(59,293)
|
|
(75,005)
|
|
(210,572)
|
|
(249,250)
|
|
|
Non-GAAP as % of
total net revenues
|
|
16.1%
|
|
18.8%
|
|
17.3%
|
|
18.8%
|
|
|
Amortization of
acquired intangible assets
|
|
(1,335)
|
|
(1,587)
|
|
(5,672)
|
|
(6,295)
|
|
|
Share-based
compensation
|
|
(746)
|
|
(1,306)
|
|
(4,345)
|
|
(6,420)
|
|
|
GAAP selling
expenses
|
|
(61,374)
|
|
(77,898)
|
|
(220,589)
|
|
(261,965)
|
|
|
GAAP as % of total
net revenues
|
|
16.7%
|
|
19.5%
|
|
18.2%
|
|
19.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP general
and administrative expenses
|
|
(33,551)
|
|
(37,833)
|
|
(108,739)
|
|
(125,300)
|
|
|
Non-GAAP as % of
total net revenues
|
|
9.1%
|
|
9.5%
|
|
9.0%
|
|
9.5%
|
|
|
Dispute related legal
fees
|
|
-
|
|
(1,500)
|
|
-
|
|
(4,100)
|
|
|
Dispute
charges
|
|
(14,750)
|
|
-
|
|
(14,750)
|
|
-
|
|
|
Share-based
compensation
|
|
(1,264)
|
|
(999)
|
|
(4,819)
|
|
(7,616)
|
|
|
GAAP general and
administrative expenses
|
|
(49,565)
|
|
(40,332)
|
|
(128,308)
|
|
(137,016)
|
|
|
GAAP as % of total
net revenues
|
|
13.5%
|
|
10.1%
|
|
10.6%
|
|
10.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP research
and development expenses
|
|
(39,423)
|
|
(47,718)
|
|
(122,697)
|
|
(142,283)
|
|
|
Non-GAAP as % of
total net revenues
|
|
10.7%
|
|
12.0%
|
|
10.1%
|
|
10.8%
|
|
|
Share-based
compensation
|
|
(1,567)
|
|
(1,066)
|
|
(4,767)
|
|
(4,714)
|
|
|
GAAP research and
development expenses
|
|
(40,990)
|
|
(48,784)
|
|
(127,464)
|
|
(146,997)
|
|
|
GAAP as % of total
net revenues
|
|
11.1%
|
|
12.2%
|
|
10.5%
|
|
11.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit
5
|
|
|
|
|
|
|
|
|
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
|
|
|
|
|
|
RECONCILIATION OF
GAAP NET INCOME TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION
AND AMORTIZATION
|
|
(In thousands of
US dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31,
|
|
Year
ended December 31,
|
|
|
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
GAAP net income
attributable to the Company
|
|
75,216
|
|
51,993
|
|
224,754
|
|
193,292
|
|
|
Interest
income
|
|
(10,786)
|
|
(10,998)
|
|
(37,047)
|
|
(38,985)
|
|
|
Interest
expense
|
|
2,160
|
|
1,252
|
|
6,345
|
|
6,400
|
|
|
Income tax (benefits)
provision
|
|
(11,484)
|
|
16,808
|
|
14,260
|
|
35,485
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
interest and taxes ("EBIT")
|
|
55,106
|
|
59,055
|
|
208,312
|
|
196,192
|
|
|
Depreciation
|
|
8,985
|
|
9,615
|
|
33,499
|
|
36,017
|
|
|
Amortization
|
|
5,430
|
|
5,758
|
|
21,079
|
|
22,647
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
("EBITDA")
|
|
69,521
|
|
74,428
|
|
262,890
|
|
254,856
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mindray-announces-2014-fourth-quarter-and-full-year-results-300047578.html
SOURCE Mindray Medical International Limited