SHENZHEN, China, Aug. 10, 2015 /PRNewswire/ -- Mindray Medical
International Limited (NYSE: MR), a leading developer, manufacturer
and marketer of medical devices worldwide, announced today its
selected unaudited financial results for the second quarter ended
June 30, 2015.
Highlights for Second Quarter 2015
- Net revenues reached $336.8
million, up from $334.5
million a year ago.
- China net revenues were
$153.9 million, representing 45.7% of
the company's total net revenues.
- International net revenues totaled $183.0 million.
- Reagent net revenues grew more than 20% year-over-year.
Reagents contributed 48.8% to the IVD segment, up from 42.9% in the
same period last year.
- Launched four products during the quarter, including a mid-end
biochemistry analyzer, a mid-to-low-end hematology analyzer, a
mid-end glycohemoglobin analyzer, and a mid-to-low-end color
ultrasound.
- In July, Mindray completed the acquisition of the remaining
stake in Wuhan Dragonbio and now owns the whole company.
"In the second quarter, the tough operating environment weighed
on our financial results. Demand in our major markets remained
sluggish and we continued to experience currency headwinds and
intensifying competition," commented Mr. Li
Xiting, Mindray's Executive Chairman, President and Co-Chief
Executive Officer. "However, we are encouraged by the consistent
strong growth of our reagent sales. Our R&D productivity also
remained strong, with the introduction of four new products during
the second quarter."
SUMMARY – Second quarter 2015
(in $ millions,
except per-share data)
|
Three Months
Ended
|
June 30
|
2015
|
2014
|
% chg
|
Net
Revenues
|
336.8
|
334.5
|
0.7%
|
Net Revenues
Generated in China
|
153.9
|
152.5
|
0.9%
|
Net Revenues Generated
in International Markets
|
183.0
|
182.0
|
0.5%
|
Gross
Profit
|
184.2
|
189.2
|
-2.6%
|
Non-GAAP Gross
Profit
|
186.1
|
191.4
|
-2.8%
|
Operating
Income
|
50.0
|
64.4
|
-22.4%
|
Non-GAAP Operating
Income
|
59.3
|
71.6
|
-17.3%
|
EBITDA
|
64.8
|
77.0
|
-15.8%
|
Net
Income[1]
|
41.2
|
59.6
|
-31.0%
|
Non-GAAP Net
Income[1]
|
49.5
|
66.2
|
-25.3%
|
Non-GAAP Net Income
(ex tax benefit) [2]
|
49.5
|
64.3
|
-23.0%
|
Diluted
EPS
|
0.35
|
0.50
|
-31.3%
|
Non-GAAP Diluted
EPS
|
0.42
|
0.56
|
-25.6%
|
Non-GAAP Diluted EPS
(ex tax benefit)
|
0.42
|
0.54
|
-23.3%
|
|
[1] For this press
release, net income and non-GAAP net income refers 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 $2.0 million
recognized in the second quarter of 2014 in relation to the
nationwide key software enterprise status. Such status is reviewed
by the Chinese government every two years and is subject to
approval. The company did not record any such tax benefit in the
second quarter of 2015.
|
Net Revenues
Mindray reported net revenues of $336.8
million for the second quarter of 2015, a 0.7% increase from
the second quarter of 2014.
- Net revenues generated in China increased 0.9% year-over-year to
$153.9 million.
- Net revenues generated in the international markets increased
0.5% year-over-year to $183.0
million.
Performance by Segment
Patient Monitoring & Life Support Products: Net
revenues in this segment decreased 8.1% from the second quarter of
2014 to $109.7 million, contributing
32.6% to total net revenues in the second quarter of 2015.
In-Vitro Diagnostic Products: Net revenues in this
segment increased 6.3% year-over-year to $104.5 million, contributing 31.0% to total net
revenues in the second quarter of 2015. Reagents sales represented
48.8% of net revenues in this segment.
Medical Imaging Systems: Net revenues in this segment
increased 4.4% from a year ago to $88.3
million, contributing 26.2% to total net revenues in the
second quarter of 2015.
Others: Net revenues increased 6.4% to $34.3 million from the second quarter of 2014,
contributing 10.2% to total net revenues in the second quarter of
2015. Other net revenues mainly include sales from the orthopedics
business, service revenues from extended warranties, sales of
accessories and repair service revenues for post-warranty
period.
Gross Margin
Second quarter 2015 gross profit was $184.2 million, a 2.6% decrease from the second
quarter of 2014. Gross margin was 54.7% in the second quarter of
2015 compared to 56.6% in the second quarter of 2014 and 54.6% in
the first quarter of 2015. Second quarter 2015 non-GAAP gross
profit was $186.1 million, a 2.8%
decrease from the second quarter of 2014. Non-GAAP gross margin was
55.2% in the second quarter of 2015 compared to 57.2% in the second
quarter of 2014 and 55.4% in the first quarter of 2015.
Operating Expenses
Selling expenses for the second quarter of 2015 were
$63.9 million, or 19.0% of total net
revenues, unchanged from the second quarter of 2014 and compared to
20.7% in the first quarter of 2015. Non-GAAP selling expenses for
the second quarter of 2015 were $60.9
million, or 18.1% of total net revenues, unchanged from the
second quarter of 2014 and compared to 19.7% in the first quarter
of 2015.
General and administrative expenses for the second quarter of
2015 were $34.0 million, or 10.1% of
total net revenues, compared to 8.2% in the second quarter of 2014
and 9.9% in the first quarter of 2015. Non-GAAP general and
administrative expenses for the second quarter of 2015 were
$30.8 million, or 9.1% of total net
revenues, compared to 8.0% in the second quarter of 2014 and 9.2%
in the first quarter of 2015.
Research and development expenses for the second quarter of 2015
were $36.4 million, or 10.8% of total
net revenues, compared to 10.1% in the second quarter of 2014 and
12.7% in the first quarter of 2015. Non-GAAP research and
development expenses for the second quarter of 2015 were
$35.1 million, or 10.4% of total net
revenues, compared to 9.7% in the second quarter of 2014 and 12.2%
in the first quarter of 2015.
Total share-based compensation expenses, which were allocated to
cost of revenues and related operating expenses, were $3.7 million in the second quarter of 2015
compared to $3.8 million in the
second quarter of 2014 and $3.6
million in the first quarter of 2015.
Operating Income
Operating income for the second quarter of 2015 was $50.0 million, a 22.4% decrease from a year ago.
Operating margin was 14.8% in the second quarter of 2015 compared
to 19.3% in the second quarter of 2014 and 11.4% in the first
quarter of 2015. Non-GAAP operating income for the second quarter
of 2015 was $59.3 million, a 17.3%
decrease from the second quarter of 2014. Non-GAAP operating margin
was 17.6% in the second quarter of 2015 compared to 21.4% in the
second quarter of 2014 and 14.3% in the first quarter of 2015.
Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA")
Second quarter 2015 EBITDA decreased 15.8% year-over-year to
$64.8 million.
Net Income
Second quarter 2015 net income decreased 31.0% year-over-year to
$41.2 million. Net margin was 12.2%
in the second quarter of 2015 compared to 17.8% in the second
quarter of 2014 and 11.8% in the first quarter of 2015. Second
quarter 2015 non-GAAP net income decreased 25.3% year-over-year to
$49.5 million. Non-GAAP net margin
was 14.7% in the second quarter of 2015, compared to 19.8% in the
second quarter of 2014 and 14.5% in the first quarter of 2015.
Second quarter 2015 interest income was $3.0
million, down from $7.7
million a year ago and $11.3
million in the previous quarter. In the second quarter of
2015, the company recorded a $7.6
million interest receivable provision based on the
uncertainty of interest payment from certain short-term investments
(where the principal amount is guaranteed but not the interest
portion). Second quarter 2015 income tax expense was $10.2 million, representing an effective tax rate
of 19.2%.
Second quarter 2015 non-GAAP net income (excluding the tax
benefits in relation to our nationwide key software enterprise
status) decreased 23.0% year-over-year to $49.5 million. Non-GAAP net margin (excluding the
tax benefits in relation to our nationwide key software enterprise
status) was 14.7% in the second quarter of 2015, compared to 19.2%
in the second quarter of 2014 and 14.5% in the first quarter of
2015.
Second quarter 2015 basic and diluted earnings per share were
both $0.35, compared to $0.51 and $0.50
respectively in the second quarter of 2014. Second quarter basic
and diluted non-GAAP earnings per share were both $0.42, compared to $0.57 and $0.56
respectively in the second quarter of 2014. Shares used in the
computation of basic and diluted earnings per share for the second
quarter of 2015 were approximately 117.8 million and 118.7 million,
respectively.
Other Select Data
Accounts receivable turnover days were 51 days in the second
quarter of 2015, compared to 52 days a year ago and lower than 68
days in the first quarter of 2015. Inventory turnover days were 101
days in the second quarter of 2015, compared to 99 days in the
second quarter of 2014 and 116 days in the first quarter of 2015.
Accounts payable turnover days were 57 days in the second quarter
of 2015, compared to 62 days in the second quarter of 2014 and 72
days in the first quarter of 2015. Mindray calculates the above
working capital turnover days using the average of the beginning
and ending net balances of the quarter.
As of June 30, 2015, the company
had a total of $1,057.9 million in
cash and cash equivalents, as well as short-term and restricted
investments, compared to $1,104.7
million as of March 31, 2015.
Net cash generated from operating activities and net cash outflow
for capital expenditures for the second quarter of 2015 were
$62.1 million and $20.3 million respectively.
As of June 30, 2015, the company
had over 8,200 employees.
Business Outlook for Full Year 2015
Mindray now expects its full year 2015 net revenues to grow by a
low-single-digit percentage over its full year 2014 net
revenues.
Mindray has revised its full year 2015 non-GAAP net income and
now expects it to decrease by around 30% over its full year 2014
non-GAAP net income. This revision is due to lower revenue guidance
and lower interest income. The non-GAAP net income guidance
continues to assume the 2015 payments related to the recently
announced employee incentive and talent retention program will be
distributed half in equity based compensation and half in cash.
Please note, however, that this assumption is subject to change and
the exact impact 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 the tax benefits related
to the nationwide key software enterprise status and projects a
corporate income tax rate of 15% applicable to the Shenzhen subsidiary.
The company expects 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.
"Although the near-term outlook of our overall business remains
challenging amid a difficult environment, we are working diligently
to strengthen our competitive position and seize business
opportunities," commented Mr. Cheng Minghe, Mindray's Co-Chief
Executive Officer and Chief Strategic Officer. "Our goal is to
build a stronger foundation for sustainable future growth. We will
continue to invest prudently into our global sales, marketing, and
distribution networks, as well as product development capabilities.
We will continue to pursue attractive M&As and other
partnerships opportunities to ensure the future success of
Mindray."
Conference Call Information
Mindray's management will hold an earnings conference call at
8:00 AM on August 11, 2015 U.S. Eastern Time (8:00 PM on August 11,
2015 Beijing/Hong Kong Time).
Dial-in details for the earnings conference call are as
follows:
International Toll
Free:
|
|
United
States:
|
+1-866-519-4004
|
United
Kingdom:
|
080-8234-6646
|
Hong Kong:
|
800-906-601
|
China
Landline:
|
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
Mobile:
|
400-620-8038
|
Passcode for all
regions:
|
Mindray
|
A replay of the conference call may be accessed by phone at the
following numbers until August 26,
2015.
U.S. Toll
Free:
|
+1-855-452-5696
|
International:
|
+1-646-254-3697
|
Passcode:
|
81850811
|
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 second 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 second quarter of 2015 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 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
and six months ended June 30, 2014 and 2015,
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 expected lower interest income for 2015,
our assumption of a corporate income tax rate of 15% applicable to
the Shenzhen subsidiary, our
anticipated uncertainty of interest payment from certain short-term
investments (where the principal amount is guaranteed but not the
interest portion) in relation to $7.6
million interest receivable provision recorded by us in this
second quarter of 2015, our continued assumption of the 2015
payments related to the recently announced employee incentive and
talent retention program to be distributed half in equity based
compensation and half in cash, statements that the exact impact of
the assumption of the 2015 payments related to the recently
announced employee incentive and talent retention program will
depend on the actual split between equity based compensation and
cash payments, that although the near-term outlook of our overall
business remains challenging amid a difficult environment, we are
working diligently to strengthen our competitive position and seize
business opportunities, that we will continue to invest prudently
into our global sales, marketing, and distribution networks, as
well as product development capabilities, that we will continue to
pursue attractive M&As and other partnerships opportunities to
ensure the future success of Mindray 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; 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 6 of our annual report on Form 20-F,
which was filed, with the Securities and Exchange Commission on
April 16, 2015. Our results of
operations for the second 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 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, 2014
|
|
As of June 30,
2015
|
|
|
US$
|
|
US$
|
|
|
(Note
1)
|
|
(unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents (Note 2)
|
276,598
|
|
284,194
|
|
Restricted cash (Note
3)
|
7,422
|
|
10,683
|
|
Restricted
investments (Note 4)
|
-
|
|
244,128
|
|
Short-term
investments (Note 2)
|
816,394
|
|
529,544
|
|
Accounts receivable,
net
|
222,522
|
|
188,485
|
|
Inventories
|
150,642
|
|
172,785
|
|
Value added tax
receivables
|
3,432
|
|
11,398
|
|
Other receivables and
current assets
|
23,316
|
|
105,184
|
|
Prepayments and
deposits
|
16,481
|
|
18,976
|
|
Deferred tax
assets,net
|
14,802
|
|
17,957
|
Total current
assets
|
1,531,609
|
|
1,583,334
|
|
|
|
|
|
Restricted cash,
non-current (Note 3)
|
5,061
|
|
2,784
|
Other
assets
|
9,666
|
|
9,605
|
Accounts receivables,
net, non-current
|
3,350
|
|
2,566
|
Advances for purchase
of plant and equipment
|
21,840
|
|
19,725
|
Property, plant and
equipment, net
|
412,733
|
|
438,624
|
Land use rights,
net
|
59,057
|
|
58,414
|
Intangible assets,
net
|
175,451
|
|
165,612
|
Goodwill
|
254,435
|
|
254,510
|
Total
assets
|
2,473,202
|
|
2,535,174
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term bank
loans
|
59,625
|
|
129,115
|
|
Notes
payable
|
9,234
|
|
8,211
|
|
Accounts
payable
|
93,523
|
|
90,720
|
|
Advances from
customers
|
31,396
|
|
52,266
|
|
Salaries
payable
|
114,583
|
|
79,924
|
|
Other payables and
current liabilities
|
168,139
|
|
168,825
|
|
Purchase
consideration payable
|
17,173
|
|
11,592
|
|
Income taxes
payable
|
20,415
|
|
23,405
|
|
Other taxes
payable
|
10,342
|
|
6,354
|
Total current
liabilities
|
524,430
|
|
570,412
|
|
|
|
|
|
Long-term bank
loans
|
197,585
|
|
168,000
|
Other long-term
liabilities
|
10,670
|
|
11,280
|
Deferred tax
liabilities, net
|
69,233
|
|
74,574
|
Total
liabilities
|
801,918
|
|
824,266
|
|
|
|
|
|
Mindray shareholders'
equity:
|
|
|
|
Ordinary
shares
|
15
|
|
15
|
Additional paid-in
capital
|
453,564
|
|
462,765
|
Retained
earnings
|
1,000,257
|
|
1,026,495
|
Accumulated other
comprehensive income
|
144,120
|
|
145,158
|
Treasury stock at
cost
|
-
|
|
-
|
Total Mindray
shareholders' equity
|
1,597,956
|
|
1,634,433
|
|
|
|
|
|
Non-controlling
interests
|
73,328
|
|
76,475
|
Total
equity
|
1,671,284
|
|
1,710,908
|
Total liabilities and
equity
|
2,473,202
|
|
2,535,174
|
|
|
|
|
|
(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 $nil as
of December 31, 2014 and June 30, 2015, respectively in relation to
the drawings of certain bank loans.
|
|
(3) Restricted cash
are mainly those purchase consideration in connection with our
acquisitions being held on escrow accounts.
|
|
(4) Restricted
investments are those investments in Chinese Renminbi denominated
financial products placed with bank which are restricted as to
withdrawal or usage according to new terms imposed on certain bank
loans during the quarter ended March 31, 2015.
|
Exhibit
2
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands of
US dollars, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended June 30,
|
|
Six
months ended June 30,
|
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Net
revenues
|
|
|
|
|
|
|
|
|
-
China
|
|
152,469
|
|
153,864
|
|
268,297
|
|
275,821
|
-
International
|
|
181,983
|
|
182,953
|
|
330,926
|
|
333,460
|
Net
revenues
|
|
334,452
|
|
336,817
|
|
599,223
|
|
609,281
|
Cost of
revenues
|
|
(145,237)
|
|
(152,584)
|
|
(263,988)
|
|
(276,213)
|
Gross
profit
|
|
189,215
|
|
184,233
|
|
335,235
|
|
333,068
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
(63,471)
|
|
(63,860)
|
|
(118,267)
|
|
(120,318)
|
General and
administrative expenses
|
|
(27,578)
|
|
(33,993)
|
|
(57,391)
|
|
(60,946)
|
Research and
development expenses
|
|
(33,724)
|
|
(36,403)
|
|
(63,867)
|
|
(70,889)
|
Income from
operations
|
|
64,442
|
|
49,977
|
|
95,710
|
|
80,915
|
|
|
|
|
|
|
|
|
|
Other (expenses)
income, net
|
|
(215)
|
|
908
|
|
1,594
|
|
1,793
|
Interest
income
|
|
7,678
|
|
3,048
|
|
18,457
|
|
14,330
|
Interest
expense
|
|
(1,291)
|
|
(1,108)
|
|
(3,686)
|
|
(2,093)
|
Income before income
taxes and non-controlling interests
|
|
70,614
|
|
52,825
|
|
112,075
|
|
94,945
|
Income tax
provision
|
|
(9,448)
|
|
(10,157)
|
|
(13,948)
|
|
(18,463)
|
Net
income
|
|
61,166
|
|
42,668
|
|
98,127
|
|
76,482
|
Less: Net income
attributable to non-controlling interests
|
|
(1,548)
|
|
(1,507)
|
|
(2,871)
|
|
(3,147)
|
Net income
attributable to Mindray shareholders
|
|
59,618
|
|
41,161
|
|
95,256
|
|
73,335
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
0.51
|
|
0.35
|
|
0.81
|
|
0.62
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
0.50
|
|
0.35
|
|
0.81
|
|
0.62
|
|
|
|
|
|
|
|
|
|
Shares used in the
computation of:
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
116,974,009
|
|
117,831,719
|
|
116,914,653
|
|
117,823,198
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
118,132,930
|
|
118,700,403
|
|
118,313,540
|
|
118,809,042
|
Exhibit
3
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands of
US dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended June 30,
|
|
Six
months ended June 30,
|
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
Net
income
|
61,166
|
|
42,668
|
|
98,127
|
|
76,482
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
20,833
|
|
31,524
|
|
48,697
|
|
55,382
|
|
Changes in
assets and liabilities, net of effects of acquisitions
|
2,600
|
|
(12,107)
|
|
(42,559)
|
|
(32,787)
|
Net cash provided
by operating activities
|
84,599
|
|
62,085
|
|
104,265
|
|
99,077
|
|
|
|
|
|
|
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
Acquisition cost of subsidiaries, net of cash
received
|
(6,009)
|
|
(3,071)
|
|
(8,215)
|
|
(5,578)
|
|
Capital
expenditures
|
(23,176)
|
|
(20,316)
|
|
(51,051)
|
|
(51,096)
|
|
Decrease
(Increase) in restricted cash and restricted
investments
|
4,941
|
|
-
|
|
(1,514)
|
|
(53,114)
|
|
Proceeds
from sale of short-term investments
|
374,551
|
|
142,794
|
|
616,515
|
|
152,571
|
|
Increase
in short-term investments and changes in other investing
activities
|
(328,773)
|
|
(115,798)
|
|
(341,738)
|
|
(132,181)
|
Net cash provided
by (used in) investing activities
|
21,534
|
|
3,609
|
|
213,997
|
|
(89,398)
|
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
Repayment of bank loans
|
(160,000)
|
|
(4,375)
|
|
(210,000)
|
|
(4,375)
|
|
Proceeds
from bank loans, net of costs
|
-
|
|
-
|
|
-
|
|
47,712
|
|
Dividend
paid
|
-
|
|
-
|
|
(58,711)
|
|
(47,097)
|
|
Proceeds
from exercise of options
|
669
|
|
242
|
|
1,014
|
|
1,857
|
|
Repurchase of ordinary American depositary shares
|
(51)
|
|
-
|
|
(68,080)
|
|
-
|
|
Cash
paid to acquire a non-controlling interest
|
(4,286)
|
|
-
|
|
(4,731)
|
|
-
|
|
Cash
contribution from a non-controlling interest
|
-
|
|
-
|
|
239
|
|
-
|
Net cash used in
financing activities
|
(163,668)
|
|
(4,133)
|
|
(340,269)
|
|
(1,903)
|
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
(57,535)
|
|
61,561
|
|
(22,007)
|
|
7,776
|
|
Cash and cash
equivalents, beginning of period
|
419,820
|
|
221,699
|
|
385,224
|
|
276,598
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
26
|
|
934
|
|
(906)
|
|
(180)
|
Cash and cash
equivalents, end of period
|
362,311
|
|
284,194
|
|
362,311
|
|
284,194
|
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 June 30,
|
|
Six
months ended June 30,
|
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
Non-GAAP net
income attributable to Mindray shareholders
|
|
66,219
|
|
49,496
|
|
112,273
|
|
88,953
|
Non-GAAP net
margin
|
|
19.8%
|
|
14.7%
|
|
18.7%
|
|
14.6%
|
Amortization of
acquired intangible assets
|
|
(3,438)
|
|
(3,314)
|
|
(6,885)
|
|
(6,692)
|
Deferred tax impact
related to acquired intangible assets
|
|
604
|
|
617
|
|
1,219
|
|
1,235
|
Dispute related legal
fees, net of related tax impact
|
|
-
|
|
(1,900)
|
|
-
|
|
(2,819)
|
Share-based
compensation
|
|
(3,767)
|
|
(3,738)
|
|
(11,351)
|
|
(7,342)
|
GAAP net income
attributable to Mindray shareholders
|
|
59,618
|
|
41,161
|
|
95,256
|
|
73,335
|
GAAP net
margin
|
|
17.8%
|
|
12.2%
|
|
15.9%
|
|
12.0%
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic
earnings per share
|
|
0.57
|
|
0.42
|
|
0.96
|
|
0.75
|
Non-GAAP diluted
earnings per share
|
|
0.56
|
|
0.42
|
|
0.95
|
|
0.75
|
|
|
|
|
|
|
|
|
|
GAAP basic earnings
per share
|
|
0.51
|
|
0.35
|
|
0.81
|
|
0.62
|
GAAP diluted earnings
per share
|
|
0.50
|
|
0.35
|
|
0.81
|
|
0.62
|
|
|
|
|
|
|
|
|
|
Shares used in
computation of:
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
116,974,009
|
|
117,831,719
|
|
116,914,653
|
|
117,823,198
|
Diluted
earnings per share
|
|
118,132,930
|
|
118,700,403
|
|
118,313,540
|
|
118,809,042
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
|
71,647
|
|
59,264
|
|
113,946
|
|
98,266
|
Non-GAAP operating
margin
|
|
21.4%
|
|
17.6%
|
|
19.0%
|
|
16.1%
|
Amortization of
acquired intangible assets
|
|
(3,438)
|
|
(3,314)
|
|
(6,885)
|
|
(6,692)
|
Dispute related legal
fees
|
|
-
|
|
(2,235)
|
|
-
|
|
(3,317)
|
Share-based
compensation
|
|
(3,767)
|
|
(3,738)
|
|
(11,351)
|
|
(7,342)
|
GAAP operating
income
|
|
64,442
|
|
49,977
|
|
95,710
|
|
80,915
|
GAAP operating
margin
|
|
19.3%
|
|
14.8%
|
|
16.0%
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross
profit
|
|
191,414
|
|
186,050
|
|
339,538
|
|
336,969
|
Non-GAAP gross
margin
|
|
57.2%
|
|
55.2%
|
|
56.7%
|
|
55.3%
|
Amortization of
acquired intangible assets
|
|
(1,937)
|
|
(1,724)
|
|
(3,868)
|
|
(3,514)
|
Share-based
compensation
|
|
(262)
|
|
(93)
|
|
(435)
|
|
(387)
|
GAAP gross
profit
|
|
189,215
|
|
184,233
|
|
335,235
|
|
333,068
|
GAAP gross
margin
|
|
56.6%
|
|
54.7%
|
|
55.9%
|
|
54.7%
|
|
|
|
|
|
|
|
|
|
Non-GAAP selling
expenses
|
|
(60,585)
|
|
(60,908)
|
|
(112,759)
|
|
(114,467)
|
Non-GAAP as % of
total net revenues
|
|
18.1%
|
|
18.1%
|
|
18.8%
|
|
18.8%
|
Amortization of
acquired intangible assets
|
|
(1,501)
|
|
(1,590)
|
|
(3,017)
|
|
(3,178)
|
Share-based
compensation
|
|
(1,385)
|
|
(1,362)
|
|
(2,491)
|
|
(2,673)
|
GAAP selling
expenses
|
|
(63,471)
|
|
(63,860)
|
|
(118,267)
|
|
(120,318)
|
GAAP as % of total
net revenues
|
|
19.0%
|
|
19.0%
|
|
19.7%
|
|
19.7%
|
|
|
|
|
|
|
|
|
|
Non-GAAP general
and administrative expenses
|
|
(26,844)
|
|
(30,761)
|
|
(51,406)
|
|
(55,858)
|
Non-GAAP as % of
total net revenues
|
|
8.0%
|
|
9.1%
|
|
8.6%
|
|
9.2%
|
Dispute related legal
fees
|
|
-
|
|
(2,235)
|
|
-
|
|
(3,317)
|
Share-based
compensation
|
|
(734)
|
|
(997)
|
|
(5,985)
|
|
(1,771)
|
GAAP general and
administrative expenses
|
|
(27,578)
|
|
(33,993)
|
|
(57,391)
|
|
(60,946)
|
GAAP as % of total
net revenues
|
|
8.2%
|
|
10.1%
|
|
9.6%
|
|
10.0%
|
|
|
|
|
|
|
|
|
|
Non-GAAP research
and development expenses
|
|
(32,338)
|
|
(35,117)
|
|
(61,427)
|
|
(68,378)
|
Non-GAAP as % of
total net revenues
|
|
9.7%
|
|
10.4%
|
|
10.3%
|
|
11.2%
|
Share-based
compensation
|
|
(1,386)
|
|
(1,286)
|
|
(2,440)
|
|
(2,511)
|
GAAP research and
development expenses
|
|
(33,724)
|
|
(36,403)
|
|
(63,867)
|
|
(70,889)
|
GAAP as % of total
net revenues
|
|
10.1%
|
|
10.8%
|
|
10.7%
|
|
11.6%
|
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 June 30,
|
|
Six
months ended June 30,
|
|
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
GAAP net income
attributable to the Company
|
|
59,618
|
|
41,161
|
|
95,256
|
|
73,335
|
|
Interest
income
|
|
(7,678)
|
|
(3,048)
|
|
(18,457)
|
|
(14,330)
|
|
Interest
expense
|
|
1,291
|
|
1,108
|
|
3,686
|
|
2,093
|
|
Income tax
provision
|
|
9,448
|
|
10,157
|
|
13,948
|
|
18,463
|
|
|
|
|
|
|
|
|
|
|
Earnings before
interest and taxes ("EBIT")
|
|
62,679
|
|
49,378
|
|
94,433
|
|
79,561
|
|
Depreciation
|
|
8,704
|
|
9,949
|
|
17,332
|
|
19,771
|
|
Amortization
|
|
5,567
|
|
5,452
|
|
11,146
|
|
10,970
|
|
|
|
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
("EBITDA")
|
|
76,950
|
|
64,779
|
|
122,911
|
|
110,302
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mindray-announces-second-quarter-2015-financial-results-300126217.html
SOURCE Mindray Medical International Limited