SHENZHEN, China, May 11, 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 first
quarter ended March 31, 2015.
Highlights for First Quarter 2015
- Net revenues increased 2.9% year-over-year to $272.5 million.
- China net revenues grew 5.3%
year-over-year to $122.0 million,
representing 44.8% of the company's total net revenues.
- International net revenues were $150.5
million, compared to $148.9
million in the first quarter of 2014. Asia Pacific sales achieved over 25%
year-over-year net revenues growth.
- Reagent net revenues increased more than 30% year-over-year.
Reagents led the IVD segment growth and contributed 48.3% to the
IVD segment, up from 38.1% in the same period last year.
- Launched three products during the quarter, including a
high-end tablet color ultrasound, and two low-end hematology
analyzers.
"In the first quarter, the persistently challenging market
conditions, currency headwinds as well as growing competition in
our key regions impacted our business. However, we recorded robust
sales growth in the Asia Pacific
region, thanks to our continued investments to build stronger local
presence," commented Mr. Li Xiting,
Mindray's Executive Chairman, President and Co-Chief Executive
Officer. "Our IVD reagent sales also performed well. As sales
continue to ramp up for our key IVD products, we remain upbeat
about the potential of this segment. In addition, we launched three
products during the quarter and are well on track to meet our
product launch target this year."
SUMMARY – First Quarter 2015
(in millions of US
dollars, except per-share data)
|
Three Months
Ended
|
March
31
|
2015
|
2014
|
%
chg
|
Net
Revenues
|
272.5
|
264.8
|
2.9%
|
Net Revenues Generated
in China
|
122.0
|
115.8
|
5.3%
|
Net Revenues Generated
in International Markets
|
150.5
|
148.9
|
1.1%
|
Gross
Profit
|
148.8
|
146.0
|
1.9%
|
Non-GAAP Gross
Profit
|
150.9
|
148.1
|
1.9%
|
Operating
Income
|
30.9
|
31.3
|
-1.1%
|
Non-GAAP Operating
Income
|
39.0
|
42.3
|
-7.8%
|
EBITDA
|
45.5
|
46.0
|
-1.0%
|
Net
Income[1]
|
32.2
|
35.6
|
-9.7%
|
Non-GAAP Net
Income[1]
|
39.5
|
46.1
|
-14.3%
|
Non-GAAP Net Income
(ex tax benefit)[2]
|
39.5
|
44.7
|
-11.7%
|
Diluted
EPS
|
0.27
|
0.30
|
-10.0%
|
Non-GAAP Diluted
EPS
|
0.33
|
0.39
|
-14.6%
|
[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 $1.4 million
and $nil million recognized respectively in the first quarter of
2014 and 2015 in relation to our nationwide key software enterprise
status, which is currently granted every two years by the relevant
government authority in China and is subject to review.
|
First Quarter 2015 Results
Net Revenues
Mindray reported net revenues of $272.5
million for the first quarter of 2015, a 2.9% increase from
the first quarter of 2014.
- Net revenues generated in China increased 5.3% year-over-year to
$122.0 million.
- Net revenues generated in the international markets increased
1.1% year-over-year to $150.5
million.
Performance by Segment
Patient Monitoring and Life Support Products: Net
revenues in this segment increased 4.9% from the first quarter of
2014 to $102.8 million, contributing
37.7% to total net revenues in this quarter.
In-Vitro Diagnostic Products: Net revenues in this
segment increased 3.0% year-over-year to $75.1 million, contributing 27.6% to total net
revenues in this quarter. Reagents sales represented 48.3% of this
segment's net revenues.
Medical Imaging Systems: Net revenues in this segment
decreased 1.3% year-over-year to $66.7
million, contributing 24.5% to total net revenues in this
quarter.
Others: Others net revenues increased 6.0% from the first
quarter of 2014 to $27.8 million,
contributing 10.2% to total net revenues in this quarter. Others
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
First quarter 2015 gross profit was $148.8 million, a 1.9% increase from the first
quarter of 2014. Gross margin was 54.6% in the first quarter of
2015 compared to 55.1% in the first quarter of 2014 and 55.3% in
the fourth quarter of 2014. First quarter 2015 non-GAAP gross
profit was $150.9 million, a 1.9%
increase from the first quarter of 2014. Non-GAAP gross margin was
55.4% in the first quarter of 2015 compared to 55.9% in the first
quarter of 2014 and 55.8% in the fourth quarter of 2014.
Operating Expenses
Selling expenses for the first quarter of 2015 were $56.5 million, or 20.7% of total net revenues,
unchanged from the first quarter of 2014 and compared to 19.5% in
the fourth quarter of 2014. Non-GAAP selling expenses for the first
quarter of 2015 were $53.6 million,
or 19.7% of total net revenues, unchanged from the first quarter of
2014 and compared to 18.8% in the fourth quarter of 2014.
General and administrative expenses for the first quarter of
2015 were $27.0 million, or 9.9% of
total net revenues, compared to 11.3% in the first quarter of 2014
and 10.1% in the fourth quarter of 2014. Non-GAAP general and
administrative expenses for the first quarter of 2015 were
$25.1 million, or 9.2% of total net
revenues, compared to 9.3% in the first quarter of 2014 and 9.5% in
the fourth quarter of 2014.
Research and development expenses for the first quarter of 2015
were $34.5 million, or 12.7% of total
net revenues, compared to 11.4% in the first quarter of 2014 and
12.2% in the fourth quarter of 2014. Non-GAAP research and
development expenses for the first quarter of 2015 were
$33.3 million, or 12.2% of total net
revenues, compared to 11.0% in the first quarter of 2014 and 12.0%
in the fourth quarter of 2014.
Total share-based compensation expenses for the first quarter of
2015, which were allocated to cost of revenues and related
operating expenses, were $3.6
million, compared to $7.6
million in the first quarter of 2014 and $3.6 million in the fourth quarter of 2014.
Operating Income
Operating income for the first quarter of 2015 was $30.9 million, a 1.1% decrease from the first
quarter of 2014. Operating margin was 11.4% in the first quarter of
2015 compared to 11.8% in the first quarter of 2014 and 13.4% in
the fourth quarter of 2014. Non-GAAP operating income for the first
quarter of 2015 was $39.0 million, a
7.8% decrease from the first quarter of 2014. Non-GAAP operating
margin was 14.3% in the first quarter of 2015 compared to 16.0% in
the first quarter of 2014 and 15.5% in the fourth quarter of
2014.
Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA")
First quarter 2015 EBITDA decreased 1.0% year-over-year to
$45.5 million.
Net Income
First quarter 2015 net income decreased 9.7% year-over-year to
$32.2 million. Net margin was 11.8%
in the first quarter of 2015, compared to 13.5% in the first
quarter of 2014 and 13.0% in the fourth quarter of 2014. First
quarter 2015 non-GAAP net income declined 14.3% from the first
quarter of 2014 to $39.5 million.
Non-GAAP net margin was 14.5% in the first quarter of 2015,
compared to 17.4% in the first quarter of 2014 and 15.0% in the
fourth quarter of 2014. First quarter 2015 income tax expense was
$8.3 million, representing an
effective tax rate of 19.7%.
First quarter 2015 non-GAAP net income (excluding the tax
benefits in relation to our nationwide key software enterprise
status) decreased 11.7% year-over-year to $39.5 million. Non-GAAP net margin (excluding the
tax benefits in relation to our nationwide key software enterprise
status) was 14.5% in the first quarter of 2015, compared to 16.9%
in the first quarter of 2014 and 14.6% in the fourth quarter of
2014.
First quarter 2015 basic and diluted earnings per share were
both $0.27, compared to $0.30 for both in the first quarter of 2014.
First quarter 2015 basic and diluted non-GAAP earnings per share
were both $0.33, compared to
$0.39 for both in the first quarter
of 2014. Shares used in the computation of basic and diluted
earnings per share for the first quarter of 2015 were approximately
117.8 million and 118.7 million, respectively.
Other Selected Data
Accounts receivable turnover days were 68 days in the first
quarter of 2015, compared to 69 days in the first quarter of 2014
and 48 days in the fourth quarter of 2014. Inventory turnover days
were 116 days in the first quarter of 2015, compared to 114 days in
the first quarter of 2014 and 82 days in the fourth quarter of
2014. Accounts payable turnover days were 72 days in the first
quarter of 2015, compared to 78 days in the first quarter of 2014
and 54 days in the fourth quarter of 2014. Mindray calculates the
above working capital days using the average of beginning and
ending balances of the quarter.
As of March 31, 2015, the company
had a total of $1.1 billion in cash
and cash equivalents, as well as short-term and restricted
investments as compared to $1.0
billion as of March 31, 2014
and $1.1 billion as of December 31, 2014. Net cash generated from
operating activities and net cash outflow for capital expenditures
for the first quarter of 2015 were $37.0
million and $30.8 million
respectively.
As of March 31, 2015, the company
had more than 8,200 employees.
New Employee Incentive and Talent Retention Program
Separately, the company announced that its Board of Directors
has approved a new employee incentive and talent retention program.
Under the program, which is in the process of being established, up
to $50 million a year in total will
be awarded to selected key employees for three years starting 2015.
This additional compensation could be in the form of cash, equity
based compensation or a combination of both.
Business Outlook for Full Year 2015
Mindray continues to expect its full year 2015 net revenues to
grow by a mid-single digit percentage over its full year 2014 net
revenues.
Previous guidance for full year 2015 non-GAAP net income is
being revised to reflect the impact of the newly announced employee
incentive and talent retention program, as well as pricing pressure
as a result of rising competition. Assuming the related 2015
payments are distributed half in equity based compensation and half
in cash, Mindray forecasts its full year 2015 non-GAAP net income
to decrease by a high-teens percentage over its full year 2014
non-GAAP net income. Please note, however, that this assumption is
subject to change and the exact impact on the guidance will depend
on the actual split between equity based compensation and cash
payments. The company will provide more updates as additional
details of the program are finalized. The non-GAAP net income
guidance also excludes our 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 continues to expect its capital expenditure for full
year 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.
"Looking forward, the outlook of our overall operating
environment in major markets remains challenging. We are, however,
optimistic about the long-term potential of our business in these
markets and will continue to execute our investment strategy,"
commented Mr. Cheng Minghe, Mindray's Co-Chief Executive Officer
and Chief Strategic Officer. "Mindray sees our top talents as our
most valuable asset and we are working on a new employee incentive
and talent retention program that should help us effectively retain
our key employees. Also, in light of increasing competition, we
intend to adopt a more competitive pricing strategy to strengthen
our market position. Although we are lowering our net income
guidance as a result of these initiatives, we firmly believe that
they will serve us well in ensuring the future success of our
company."
Conference Call Information
Mindray's management will hold an earnings conference call at
8:00 AM on May
12, 2015 U.S. Eastern Time (8:00
PM on May 12, 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
Mainland 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
Mainland 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 May 27,
2015.
U.S. Toll Free: +1-855-452-5696
International: +1-646-254-3697
Passcode: 23059737
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 provides gross profit, selling expenses, general and
administrative expenses, research and development 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 and dispute related legal
fees, all net of related tax impact, as well as EBITDA to enable
investors to better assess the company's operating performance for
the first quarter of 2015. 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 for the first quarter 2015 earnings and
its comparative period 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, 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 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 and
dispute related legal fees, 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, 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 ended March 31, 2014 and 2015,
respectively, as stated in exhibit below.
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, statements that we remain upbeat about the potential of
IVD segment as sales continue to ramp up for our key IVD products,
that we are well on track to meet our product launch target of year
2015, the outlook of our overall operating environment in our major
markets, statements that we are optimistic about the long-term
potential of our business in our major markets and will continue to
execute our investment strategy, that in light of increasing
competition, we intend to adopt a more competitive pricing strategy
to strengthen our market position, statements about continuation of
our investment strategy and related benefits, statements about our
planned employee incentive and talent retention program and its
anticipated benefits and impacts under "New Employee Incentive and
Talent Retention Program" and "Business Outlook for Full Year
2015", including without limitation, statements that we are working
on a new employee incentive and talent retention program that
should help us effectively retain our key employees, that under the
new employee incentive and talent retention program, which is in
the process of being established, up to $50
million a year in total will be awarded to selected key
employees for three years starting 2015, that the additional
compensation under the new employee incentive and talent retention
program could be in the form of cash, equity based compensation or
a combination of both, that assuming the related 2015 payments
under the new employee incentive and talent retention program are
distributed half in equity based compensation and half in cash, we
forecast our full year 2015 non-GAAP net income to decrease by a
high-teens percentage over our full year 2014 non-GAAP net income,
statement about the impact of the newly announced employee
incentive and talent retention program, as well as pricing pressure
as a result of rising competition, statements that the assumption
of the related 2015 payments under the new employee incentive and
talent retention program being distributed half in equity based
compensation and half in cash is subject to change and the exact
impact on the guidance will depend on the actual split between
equity based compensation and cash payments, that we firmly believe
that the new employee incentive and talent retention program and
the more competitive pricing strategy will serve us well in
ensuring the future success of our company, statements about our
investment and pricing strategies 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, competitive, pricing and other conditions in
China and our international
markets and our ability to effectively address or respond those
conditions; our ability effectively attract and retain our key
employees; 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; 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 6 of our annual
report on Form 20-F which was filed on April
16, 2015. Our results of operations for the first quarter of
2015 are not necessarily indicative of our operating results for
any future periods. 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 diagnostics, 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,
2014
|
|
As of March 31,
2015
|
|
|
US$
|
|
US$
|
|
|
(Note 1)
|
|
(unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents (Note 2)
|
276,598
|
|
221,699
|
|
Restricted cash (Note
3)
|
7,422
|
|
10,681
|
|
Restricted
Investments (Note 4)
|
-
|
|
242,991
|
|
Short-term
investments (Note 2)
|
816,394
|
|
640,019
|
|
Accounts receivable,
net
|
222,522
|
|
180,571
|
|
Inventories
|
150,642
|
|
164,382
|
|
Value added tax
receivables
|
3,432
|
|
10,500
|
|
Other receivables and
current assets
|
23,316
|
|
24,216
|
|
Prepayments and
deposits
|
16,481
|
|
16,585
|
|
Deferred tax
assets,net
|
14,802
|
|
16,208
|
Total current
assets
|
1,531,609
|
|
1,527,852
|
|
|
|
|
|
Restricted cash,
non-current (Note 3)
|
5,061
|
|
2,771
|
Other
assets
|
9,666
|
|
9,420
|
Accounts receivables,
net, non-current
|
3,350
|
|
3,423
|
Advances for purchase
of property, plant and equipment
|
21,840
|
|
24,548
|
Property, plant and
equipment, net
|
412,733
|
|
416,240
|
Land use rights,
net
|
59,057
|
|
58,488
|
Intangible assets,
net
|
175,451
|
|
169,994
|
Goodwill
|
254,435
|
|
254,115
|
Total
assets
|
2,473,202
|
|
2,466,851
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term bank
loans
|
59,625
|
|
111,638
|
|
Notes
payable
|
9,234
|
|
9,615
|
|
Accounts
payable
|
93,523
|
|
83,006
|
|
Advances from
customers
|
31,396
|
|
56,330
|
|
Salaries
payable
|
114,583
|
|
64,439
|
|
Other payables and
current liabilities
|
168,139
|
|
168,827
|
|
Purchase
consideration payable
|
17,173
|
|
14,647
|
|
Income taxes
payable
|
20,415
|
|
25,762
|
|
Other taxes
payable
|
10,342
|
|
5,746
|
Total current
liabilities
|
524,430
|
|
540,010
|
|
|
|
|
|
Long-term bank
loans
|
197,585
|
|
189,000
|
Other long-term
liabilities
|
10,670
|
|
10,856
|
Deferred tax
liabilities, net
|
69,233
|
|
71,933
|
Total
liabilities
|
801,918
|
|
811,799
|
|
|
|
|
|
Mindray shareholders'
equity:
|
|
|
|
Ordinary
shares
|
15
|
|
15
|
Additional paid-in
capital
|
453,564
|
|
458,782
|
Retained
earnings
|
1,000,257
|
|
985,334
|
Accumulated other
comprehensive income
|
144,120
|
|
135,953
|
Total Mindray
shareholders' equity
|
1,597,956
|
|
1,580,084
|
|
|
|
|
|
Non-controlling
interests
|
73,328
|
|
74,968
|
Total
equity
|
1,671,284
|
|
1,655,052
|
Total liabilities and
equity
|
2,473,202
|
|
2,466,851
|
|
|
|
|
|
(1) Financial
information is extracted from the audited financial statements
included in the Company's 2014 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 $189,000 and $nil as
of December 31, 2014 and March 31, 2015, respectively in relation
to the drawings of certain bank loans.
|
(3) Restricted cash
are mainly those purchase consideration in connection with our
acquisitions being held on escrow accounts.
|
(4) Restricted
investments are those investments in Chinese Renminbi denominated
financial products placed with bank which are restricted as to
withdrawal or usage according to new terms imposed on certain bank
loans during the quarter ended March 31, 2015.
|
Exhibit
2
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands of
US dollars, except share and per share amounts)
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2014
|
|
2015
|
|
|
US$
|
|
US$
|
|
|
(unaudited)
|
|
(unaudited)
|
Net
revenues
|
|
|
|
|
-
China
|
|
115,828
|
|
121,957
|
-
International
|
|
148,943
|
|
150,507
|
Net
revenues
|
|
264,771
|
|
272,464
|
Cost of
revenues
|
|
(118,751)
|
|
(123,629)
|
Gross
profit
|
|
146,020
|
|
148,835
|
|
|
|
|
|
Selling
expenses
|
|
(54,796)
|
|
(56,458)
|
General and
administrative expenses
|
|
(29,813)
|
|
(26,953)
|
Research and
development expenses
|
|
(30,143)
|
|
(34,486)
|
Income from
operations
|
|
31,268
|
|
30,938
|
|
|
|
|
|
Other income,
net
|
|
1,809
|
|
885
|
Interest
income
|
|
10,779
|
|
11,282
|
Interest
expense
|
|
(2,395)
|
|
(985)
|
Income before income
taxes and non-controlling interests
|
|
41,461
|
|
42,120
|
Income tax
provision
|
|
(4,500)
|
|
(8,306)
|
Net income
|
|
36,961
|
|
33,814
|
Less: Net income
attributable to non-controlling interests
|
|
(1,323)
|
|
(1,640)
|
Net income
attributable to Mindray shareholders
|
|
35,638
|
|
32,174
|
|
|
|
|
|
Basic earnings per
share
|
|
0.30
|
|
0.27
|
|
|
|
|
|
Diluted earnings per
share
|
|
0.30
|
|
0.27
|
|
|
|
|
|
Shares used in the
computation of:
|
|
|
|
|
Basic earnings per
share
|
|
116,854,637
|
|
117,814,582
|
|
|
|
|
|
Diluted earnings per
share
|
|
118,270,656
|
|
118,701,761
|
|
|
|
|
|
Exhibit
3
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands of
US dollars)
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2014
|
|
2015
|
|
|
US$
|
|
US$
|
|
|
(unaudited)
|
|
(unaudited)
|
Cash flow from
operating activities:
|
|
|
|
|
Net income
|
36,961
|
|
33,814
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
27,864
|
|
23,858
|
|
Changes in assets and
liabilities, net of effects of acquisition
|
(45,159)
|
|
(20,680)
|
Net cash provided
by operating activities
|
19,666
|
|
36,992
|
|
|
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
Acquisition cost of
subsidiaries, net of cash received
|
(2,206)
|
|
(2,507)
|
|
Capital
expenditures
|
(27,875)
|
|
(30,780)
|
|
Decrease in
restricted cash and restricted investment
|
(6,455)
|
|
(53,114)
|
|
Proceeds from sale of
short-term investments
|
241,964
|
|
9,777
|
|
Increase in
short-term investments and changes in other investing
activities
|
(12,965)
|
|
(16,383)
|
Net cash provided
by (used in) investing activities
|
192,463
|
|
(93,007)
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
Repayment of bank
loans
|
(50,000)
|
|
-
|
|
Proceeds from bank
loans, net of costs
|
-
|
|
47,712
|
|
Dividend
paid
|
(58,711)
|
|
(47,097)
|
|
Proceeds from
exercise of options
|
345
|
|
1,615
|
|
Repurchase of
ordinary American depositary shares
|
(68,029)
|
|
-
|
|
Cash paid to acquire
a non-controlling interest
|
(445)
|
|
-
|
|
Cash contribution
from a non-controlling interest
|
239
|
|
-
|
Net cash (used in)
provided by financing activities
|
(176,601)
|
|
2,230
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
35,528
|
|
(53,785)
|
|
Cash and cash
equivalents, beginning of period
|
385,224
|
|
276,598
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(932)
|
|
(1,114)
|
Cash and cash
equivalents, end of period
|
419,820
|
|
221,699
|
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
March 31,
|
|
|
2014
|
|
2015
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
US$
|
|
US$
|
Non-GAAP net
income attributable to the Company
|
|
46,054
|
|
39,458
|
Non-GAAP net
margin
|
|
17.4%
|
|
14.5%
|
Amortization of
acquired intangible assets
|
|
(3,447)
|
|
(3,378)
|
Deferred tax impact
related to acquired intangible assets
|
|
615
|
|
618
|
Dispute related legal
fees, net of related tax impact
|
|
-
|
|
(920)
|
Share-based
compensation
|
|
(7,584)
|
|
(3,604)
|
GAAP net income
attributable to the Company
|
|
35,638
|
|
32,174
|
GAAP net
margin
|
|
13.5%
|
|
11.8%
|
|
|
|
|
|
Non-GAAP basic
earnings per share
|
|
0.39
|
|
0.33
|
Non-GAAP diluted
earnings per share
|
|
0.39
|
|
0.33
|
|
|
|
|
|
GAAP basic earnings
per share
|
|
0.30
|
|
0.27
|
GAAP diluted earnings
per share
|
|
0.30
|
|
0.27
|
|
|
|
|
|
Shares used in
computation of:
|
|
|
|
|
Basic earnings per
share
|
|
116,854,637
|
|
117,814,582
|
Diluted earnings per
share
|
|
118,270,656
|
|
118,701,761
|
|
|
|
|
|
Non-GAAP operating
income
|
|
42,299
|
|
39,002
|
Non-GAAP operating
margin
|
|
16.0%
|
|
14.3%
|
Amortization of
acquired intangible assets
|
|
(3,447)
|
|
(3,378)
|
Dispute related legal
fees
|
|
-
|
|
(1,082)
|
Share-based
compensation
|
|
(7,584)
|
|
(3,604)
|
GAAP operating
income
|
|
31,268
|
|
30,938
|
GAAP operating
margin
|
|
11.8%
|
|
11.4%
|
|
|
|
|
|
Non-GAAP gross
profit
|
|
148,124
|
|
150,919
|
Non-GAAP gross
margin
|
|
55.9%
|
|
55.4%
|
Amortization of
acquired intangible assets
|
|
(1,931)
|
|
(1,790)
|
Share-based
compensation
|
|
(173)
|
|
(294)
|
GAAP gross
profit
|
|
146,020
|
|
148,835
|
GAAP gross
margin
|
|
55.1%
|
|
54.6%
|
|
|
|
|
|
Non-GAAP selling
expenses
|
|
(52,174)
|
|
(53,559)
|
Non-GAAP as % of
total net revenues
|
|
19.7%
|
|
19.7%
|
Amortization of
acquired intangible assets
|
|
(1,516)
|
|
(1,588)
|
Share-based
compensation
|
|
(1,106)
|
|
(1,311)
|
GAAP selling
expenses
|
|
(54,796)
|
|
(56,458)
|
GAAP as % of total
net revenues
|
|
20.7%
|
|
20.7%
|
|
|
|
|
|
Non-GAAP general
and administrative expenses
|
|
(24,562)
|
|
(25,097)
|
Non-GAAP as % of
total net revenues
|
|
9.3%
|
|
9.2%
|
Dispute related legal
fees
|
|
-
|
|
(1,082)
|
Share-based
compensation
|
|
(5,251)
|
|
(774)
|
GAAP general and
administrative expenses
|
|
(29,813)
|
|
(26,953)
|
GAAP as % of total
net revenues
|
|
11.3%
|
|
9.9%
|
|
|
|
|
|
Non-GAAP research
and development expenses
|
|
(29,089)
|
|
(33,261)
|
Non-GAAP as % of
total net revenues
|
|
11.0%
|
|
12.2%
|
Share-based
compensation
|
|
(1,054)
|
|
(1,225)
|
GAAP research and
development expenses
|
|
(30,143)
|
|
(34,486)
|
GAAP as % of total
net revenues
|
|
11.4%
|
|
12.7%
|
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
March 31,
|
|
|
|
2014
|
|
2015
|
|
|
|
US$
|
|
US$
|
|
|
|
(unaudited)
|
|
(unaudited)
|
GAAP net income
attributable to the Company
|
|
35,638
|
|
32,174
|
|
Interest
income
|
|
(10,779)
|
|
(11,282)
|
|
Interest
expense
|
|
2,395
|
|
985
|
|
Income tax
provision
|
|
4,500
|
|
8,306
|
|
|
|
|
|
|
Earnings before
interest and taxes ("EBIT")
|
|
31,754
|
|
30,183
|
|
Depreciation
|
|
8,628
|
|
9,822
|
|
Amortization
|
|
5,579
|
|
5,518
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
("EBITDA")
|
|
45,961
|
|
45,523
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mindray-announces-first-quarter-2015-financial-results-300081130.html
SOURCE Mindray Medical International Limited