SHENZHEN, China, Nov. 13, 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 third quarter ended
September 30, 2015.
Highlights for Third Quarter 2015
- Net revenues reached $327.6
million, up 0.9% from $324.6
million a year ago.
- China net revenues were
$152.6 million, representing 46.6% of
the company's total net revenues.
- International net revenues totaled $175.0 million, up 3.6% from the same period a
year ago.
- Reagent net revenues grew more than 18% year-over-year.
Reagents contributed 51.0% to the IVD segment, up from 44.2% in the
same period last year.
- In this quarter, the company generated around $16.0 million foreign exchange gain from RMB's
depreciation against US dollars.
SUMMARY -- Third quarter 2015
(in $ millions,
except per-share data)
|
Three Months
Ended
|
September
30
|
2015
|
2014
|
% chg
|
Net
Revenues
|
327.6
|
324.6
|
0.9%
|
Net Revenues
Generated in China
|
152.6
|
155.7
|
-2.0%
|
Net Revenues
Generated in International Markets
|
175.0
|
168.9
|
3.6%
|
Gross
Profit
|
178.8
|
182.8
|
-2.2%
|
Non-GAAP Gross
Profit
|
180.7
|
185.1
|
-2.4%
|
Operating
Income
|
58.7
|
43.4
|
35.3%
|
Non-GAAP Operating
Income
|
69.3
|
54.4
|
27.3%
|
EBITDA
|
74.1
|
57.5
|
28.9%
|
Net
Income1
|
50.9
|
46.0
|
10.5%
|
Non-GAAP Net
Income1
|
60.4
|
56.2
|
7.5%
|
Non-GAAP Net
Income2 (ex FX gain from RMB's
depreciation against US dollars)
|
46.1
|
56.2
|
-17.9%
|
Non-GAAP Net Income
(ex tax benefit)3
|
60.4
|
54.7
|
10.4%
|
Diluted
EPS
|
0.43
|
0.39
|
10.1%
|
Non-GAAP Diluted
EPS
|
0.51
|
0.47
|
7.1%
|
Non-GAAP Diluted EPS
(ex FX gain from RMB's
depreciation against US dollars)
|
0.39
|
0.47
|
-18.2%
|
Non-GAAP Diluted EPS
(ex tax benefit)
|
0.51
|
0.46
|
10.0%
|
|
1 For this
press release, net income and non-GAAP net income refers to GAAP
net income attributable to Mindray shareholders and non-GAAP net
income attributable to Mindray shareholders as stated in exhibit
below, respectively.
|
2 The
non-GAAP net income (ex FX gain from RMB's depreciation against US
dollars)excludes foreign exchange gain, net of related tax impact,
of $14.3 million recognized in the third quarter of 2015 in
relation to RMB's depreciation against US dollars.
|
3 The
non-GAAP net income (ex tax benefit)excludes the tax benefits of
$1.3 million recognized in the third quarter of 2014 in relation to
the nationwide key software enterprise status and the non-GAAP tax
benefits of $0.1 million recognized in the third quarter of 2014 in
relation to dispute related legal fees. The nationwide key software
enterprise 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 third quarter of 2015.
|
Net Revenues
Mindray reported net revenues of $327.6
million for the third quarter of 2015, a 0.9% increase from
the third quarter of 2014.
- Net revenues generated in China decreased 2.0%year-over-year to
$152.6 million.
- Net revenues generated in the international markets increased
3.6% year-over-year to $175.0
million.
Performance by Segment
Patient Monitoring & Life Support Products: Net
revenues in this segment decreased 2.7% year-over-year to
$114.8 million, contributing 35.1% to
total net revenues in the third quarter of 2015.
In-Vitro Diagnostic Products: Net revenues in this
segment increased 2.9% year-over-year to $95.2 million, contributing 29.1% to total net
revenues in the third quarter of 2015. Reagents sales represented
51.0% of net revenues in this segment.
Medical Imaging Systems: Net revenues in this segment
increased 3.8% year-over-year to $85.6
million, contributing 26.1% to total net revenues in the
third quarter of 2015.
Others: Net revenues in this segment increased 1.0%
year-over-year to $31.9 million,
contributing 9.7% to total net revenues in the third 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
Third quarter 2015 gross profit was $178.8million, a 2.2% decrease from the third
quarter of 2014. Gross margin was 54.6% in the third quarter of
2015 compared to 56.3% in the third quarter of 2014 and 54.7% in
the second quarter of 2015. Third quarter 2015 non-GAAP gross
profit was $180.7million, a 2.4%
decrease from the third quarter of 2014. Non-GAAP gross margin was
55.1% in the third quarter of 2015 compared to 57.0% in the third
quarter of 2014 and 55.2% in the second quarter of 2015.
Operating Expenses
Selling expenses for the third quarter of 2015 were $62.5 million, or 19.1% of total net revenues,
compared to 20.3% in the third quarter of 2014 and 19.0% in the
second quarter of 2015. Non-GAAP selling expenses for the third
quarter of 2015 were $59.7 million, or 18.2% of total net revenues,
compared to 18.9% in the third quarter of 2014 and18.1%in the
second quarter of 2015.
General and administrative expenses for the third quarter of
2015 were $20.4million, or 6.2% of
total net revenues, compared to 12.1% in the third quarter of 2014
and 10.1% in the second quarter of 2015. Non-GAAP general and
administrative expenses for the third quarter of 2015 were
$15.8 million, or 4.8% of total net
revenues, compared to 11.1% in the third quarter of 2014 and 9.1%
in the second quarter of 2015. The change is largely due to the
foreign exchange gain of $16.0
million from RMB's depreciation against US dollars.
Research and development expenses for the third quarter of 2015
were $37.1 million, or 11.3% of total
net revenues, compared to 10.6% in the third quarter of 2014 and
10.8% in the second quarter of 2015. Non-GAAP research and
development expenses for the third quarter of 2015 were
$35.9 million, or 11.0% of total net
revenues, compared to 10.2% in the third quarter of 2014 and 10.4%
in the second quarter of 2015.
Total share-based compensation expenses, which were allocated to
cost of revenues and related operating expenses, were $3.6 million in the third quarter of 2015,
compared to $4.9 million in the third
quarter of 2014 and $3.7 million in
the second quarter of 2015.
Operating income for the third quarter of 2015 was $58.7 million, a 35.3% increase from the third
quarter of 2014. Operating margin was 17.9% in the third quarter of
2015, compared to 13.4% in the third quarter of 2014 and 14.8% in
the second quarter of 2015. Non-GAAP operating income for the third
quarter of 2015 was $69.3 million, a
27.3% increase from the third quarter of 2014. Non-GAAP operating
margin was 21.1% in the third quarter of 2015compared to 16.8% in
the third quarter of 2014 and 17.6% in the second quarter of
2015.
Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA")
Third quarter 2015 EBITDA increased 28.9% year-over-year to
$74.1 million.
Net Income
Third quarter 2015 net income increased 10.5% year-over-year to
$50.9 million. Net margin was 15.5%
in the third quarter of 2015 compared to 14.2% in the third quarter
of 2014 and 12.2% in the second quarter of 2015. Third quarter 2015
non-GAAP net income increased 7.5% year-over-year to $60.4 million. Non-GAAP net margin was 18.4% in
the third quarter of 2015, compared to 17.3%in the third quarter of
2014 and 14.7% in the second quarter of 2015. Third quarter 2015
interest income was $7.6 million,
compared to $9.5 million a year ago
and $3.0 million in the previous
quarter. Third quarter 2015 income tax expense was $14.8 million, representing an effective tax rate
of 22.1%.
Third quarter 2015 non-GAAP net income (excluding the tax
benefits in relation to our nationwide key software enterprise
status) increased 10.4% year-over-year to $60.4 million. Non-GAAP net margin (excluding the
tax benefits in relation to our nationwide key software enterprise
status) was 18.4% in the third quarter of 2015, compared to 16.9%
in the third quarter of 2014 and 14.7% in the second quarter of
2015.
Third quarter 2015 basic and diluted earnings per share were
both $0.43, compared to $0.39 for both in the third quarter of 2014.
Third quarter 2015 basic and diluted non-GAAP earnings per share
were both $0.51, compared to
$0.48 and $0.47 respectively, in the third quarter of 2014.
Shares used in the computation of diluted earnings per share for
the third quarter 2015were 118.7 million.
Other Select Data
Accounts receivable turnover days were 51 days in the third
quarter of 2015, improved from 55 days in the third quarter of 2014
and the same compared to the second quarter of 2015. Inventory
turnover days were 108 days in the third quarter of 2015, compared
to 106 days in the third quarter of 2014 and 101 days in the second
quarter of 2015. Accounts payable turnover days were 63 days in the
third quarter of 2015, compared to 67 days in the third quarter of
2014 and 57 days in the second 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 September 30, 2015, the
company had $958.0 million in cash
and cash equivalents as well as short-term and restricted
investments (excluding $7.1 million
investment being held on escrow account in connection with
acquisition), compared to $1,057.9
million as of June 30, 2015.
Net cash generated by operating activities and net cash outflow for
capital expenditures for the third quarter of 2015 were
$108.8 million and $27.2 million respectively.
As of September 30, 2015, the
company had around 8,400 employees.
Going Private Transaction
On November 4, 2015, the company
entered into a definitive Agreement and Plan of Merger with respect
to the previously announced "going private" transaction. The agreed
purchase price per ADS is US$28.0.
The transaction is subject to various closing conditions,
including shareholder approval. The company will prepare and file
with the U.S. Securities and Exchange Commission (the "SEC") a
Schedule 13E-3 transaction statement, which will include a proxy
statement of the company. The Schedule 13E-3 will include a
description of the Agreement and Plan of Merger and contain other
important information about the transaction, the company, and the
other participants in the transaction.
In the interim, investors are encouraged to review the related
Form 6-K filed with the SEC at www.sec.gov on November 4, 2015 that contains certain
information and attachments with respect to the going private
transaction and its participants.
In light of these events the company does not intend to host a
conference call to discuss the financial information contained in
this press release.
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, dispute related legal fees
and going private related expenses, all net of related tax impact,
as well as EBITDA to enable investors to better assess the
company's operating performance for the third quarter of 2015 and
its comparative periods. 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 third 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, dispute
related legal fees and going private related expenses.
- 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
related legal fees and going private related expenses.
- 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
related legal fees and going private related expenses, 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, provision
of income taxes, 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 nine months ended September 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 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 related costs,
expenses and potential business disruptions; 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 third quarter as of September 30, 2015are 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
-tables to follow-
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands of
US dollars)
|
|
|
|
|
|
|
|
As of December
31, 2014
|
|
As of September
30, 2015
|
|
|
US$
|
|
US$
|
|
|
(Note
1)
|
|
(unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents (Note 2)
|
276,598
|
|
197,708
|
|
Restricted cash (Note
3)
|
7,422
|
|
28
|
|
Restricted
investments (Note 4)
|
-
|
|
234,622
|
|
Short-term
investments (Note 2)
|
816,394
|
|
525,688
|
|
Accounts receivable,
net
|
222,522
|
|
175,959
|
|
Inventories
|
150,642
|
|
180,030
|
|
Value added tax
receivables
|
3,432
|
|
8,790
|
|
Other receivables and
current assets
|
23,316
|
|
155,564
|
|
Prepayments and
deposits
|
16,481
|
|
25,471
|
|
Deferred tax assets,
net
|
14,802
|
|
18,482
|
Total current
assets
|
1,531,609
|
|
1,522,342
|
|
|
|
|
|
Restricted cash,
non-current (Note 3)
|
5,061
|
|
2,769
|
Restricted
investment, non-current (Note 5)
|
-
|
|
7,074
|
Other
assets
|
9,666
|
|
8,835
|
Accounts receivables,
net, non-current
|
3,350
|
|
2,623
|
Advances for purchase
of plant and equipment
|
21,840
|
|
19,579
|
Property, plant and
equipment, net
|
412,733
|
|
440,150
|
Land use rights,
net
|
59,057
|
|
55,805
|
Intangible assets,
net
|
175,451
|
|
156,978
|
Goodwill
|
254,435
|
|
251,205
|
Total
assets
|
2,473,202
|
|
2,467,360
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term bank
loans
|
59,625
|
|
249,629
|
|
Notes
payable
|
9,234
|
|
5,829
|
|
Accounts
payable
|
93,523
|
|
100,284
|
|
Advances from
customers
|
31,396
|
|
48,361
|
|
Salaries
payable
|
114,583
|
|
97,275
|
|
Other payables and
current liabilities
|
168,139
|
|
163,383
|
|
Purchase
consideration payable
|
17,173
|
|
7,090
|
|
Income taxes
payable
|
20,415
|
|
32,713
|
|
Other taxes
payable
|
10,342
|
|
6,199
|
Total current
liabilities
|
524,430
|
|
710,763
|
|
|
|
|
|
Long-term bank
loans
|
197,585
|
|
48,000
|
Other long-term
liabilities
|
10,670
|
|
11,155
|
Deferred tax
liabilities, net
|
69,233
|
|
78,815
|
Total
liabilities
|
801,918
|
|
848,733
|
|
|
|
|
|
Mindray shareholders'
equity:
|
|
|
|
Ordinary
shares
|
15
|
|
15
|
Additional paid-in
capital
|
453,564
|
|
433,872
|
Retained
earnings
|
1,000,257
|
|
1,077,366
|
Accumulated other
comprehensive income
|
144,120
|
|
68,292
|
Total Mindray
shareholders' equity
|
1,597,956
|
|
1,579,545
|
|
|
|
|
|
Non-controlling
interests
|
73,328
|
|
39,082
|
Total
equity
|
1,671,284
|
|
1,618,627
|
Total liabilities and
equity
|
2,473,202
|
|
2,467,360
|
|
|
|
|
|
(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 $nil as
of December 31, 2014 and September 30, 2015, respectively in
relation to the drawings of certain bank loans.
|
(3) Restricted cash
as of December 31, 2014 is mainly those purchase consideration in
connection with our acquisitions being held on escrow
accounts.
|
(4) Restricted
investments are those investments in Chinese Renminbi denominated
financial products placed with bank which are restricted as to
withdrawal or usage according to new terms imposed on certain bank
loans during the quarter ended March 31, 2015.
|
(5) Restricted
investment, non-current is the purchase consideration being held as
time deposit which is restricted as withdrawal or usage for over
one year in connection with our acquisition.
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands of
US dollars, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
Three
months ended September 30,
|
|
Nine
months ended September 30,
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Net
revenues
|
|
|
|
|
|
|
|
-
China
|
155,699
|
|
152,567
|
|
423,996
|
|
428,388
|
-
International
|
168,937
|
|
175,048
|
|
499,863
|
|
508,508
|
Net
revenues
|
324,636
|
|
327,615
|
|
923,859
|
|
936,896
|
Cost of
revenues
|
(141,799)
|
|
(148,818)
|
|
(405,787)
|
|
(425,031)
|
Gross
profit
|
182,837
|
|
178,797
|
|
518,072
|
|
511,865
|
|
|
|
|
|
|
|
|
Selling
expenses
|
(65,800)
|
|
(62,541)
|
|
(184,067)
|
|
(182,859)
|
General and
administrative expenses
|
(39,293)
|
|
(20,439)
|
|
(96,684)
|
|
(81,385)
|
Research and
development expenses
|
(34,346)
|
|
(37,093)
|
|
(98,213)
|
|
(107,982)
|
Income from
operations
|
43,398
|
|
58,724
|
|
139,108
|
|
139,639
|
|
|
|
|
|
|
|
|
Other income,
net
|
631
|
|
1,796
|
|
2,225
|
|
3,589
|
Interest
income
|
9,530
|
|
7,589
|
|
27,987
|
|
21,919
|
Interest
expense
|
(1,462)
|
|
(1,082)
|
|
(5,148)
|
|
(3,175)
|
Income before income
taxes and non-controlling interests
|
52,097
|
|
67,027
|
|
164,172
|
|
161,972
|
Income tax
provision
|
(4,729)
|
|
(14,825)
|
|
(18,677)
|
|
(33,288)
|
Net
income
|
47,368
|
|
52,202
|
|
145,495
|
|
128,684
|
Less: Net income
attributable to non-controlling interests
|
(1,325)
|
|
(1,331)
|
|
(4,196)
|
|
(4,478)
|
Net income
attributable to Mindray shareholders
|
46,043
|
|
50,871
|
|
141,299
|
|
124,206
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
0.39
|
|
0.43
|
|
1.21
|
|
1.05
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
0.39
|
|
0.43
|
|
1.19
|
|
1.05
|
|
|
|
|
|
|
|
|
Shares used in the
computation of:
|
|
|
|
|
|
|
|
Basic earnings per
share
|
117,106,169
|
|
117,846,734
|
|
116,979,193
|
|
117,830,960
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
118,231,031
|
|
118,657,681
|
|
118,315,564
|
|
118,818,946
|
MINDRAY MEDICAL
INTERNATIONAL LIMITED
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands of
US dollars)
|
|
|
|
|
|
|
|
|
|
Three
months ended September 30,
|
|
Nine months ended September 30,
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
Net
income
|
47,368
|
|
52,202
|
|
145,495
|
|
128,684
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
22,969
|
|
27,437
|
|
71,666
|
|
82,819
|
Changes in
assets and liabilities, net of effects of acquisitions
|
15,187
|
|
29,208
|
|
(27,372)
|
|
(3,579)
|
Net cash provided
by operating activities
|
85,524
|
|
108,847
|
|
189,789
|
|
207,924
|
|
|
|
|
|
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
Acquisition cost of subsidiaries, net of cash
received
|
(852)
|
|
(11,113)
|
|
(9,067)
|
|
(16,691)
|
Capital
expenditures
|
(28,057)
|
|
(27,239)
|
|
(79,108)
|
|
(78,335)
|
Decrease
(increase) in restricted cash
|
724
|
|
10,699
|
|
(790)
|
|
9,730
|
Increase
in restricted investments
|
-
|
|
(7,354)
|
|
-
|
|
(59,499)
|
Proceeds
from sale of short-term investments
|
184,247
|
|
424,208
|
|
800,762
|
|
576,779
|
Increase
in short-term investments and changes in other investing
activities
|
(407,911)
|
|
(514,776)
|
|
(749,649)
|
|
(646,957)
|
Net cash used in
investing activities
|
(251,849)
|
|
(125,575)
|
|
(37,852)
|
|
(214,973)
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
Repayment of bank loans
|
-
|
|
-
|
|
(210,000)
|
|
(4,375)
|
Proceeds
from bank loans, net of costs
|
-
|
|
-
|
|
-
|
|
47,712
|
Dividend
paid
|
-
|
|
-
|
|
(58,711)
|
|
(47,097)
|
Proceeds
from exercise of options
|
1,731
|
|
81
|
|
2,745
|
|
1,938
|
Repurchase of ordinary American depositary shares
|
-
|
|
-
|
|
(68,080)
|
|
-
|
Cash
paid to acquire a non-controlling interest
|
-
|
|
(64,074)
|
|
(4,731)
|
|
(64,074)
|
Cash
contribution from a non-controlling interest
|
416
|
|
-
|
|
655
|
|
-
|
Net cash provided
by (used in) financing activities
|
2,147
|
|
(63,993)
|
|
(338,122)
|
|
(65,896)
|
|
|
|
|
|
|
|
|
Net decrease in
cash and cash equivalents
|
(164,178)
|
|
(80,721)
|
|
(186,185)
|
|
(72,945)
|
Cash and cash equivalents,
beginning of period
|
362,311
|
|
284,194
|
|
385,224
|
|
276,598
|
Effect of exchange rate changes on
cash and cash equivalents
|
(749)
|
|
(5,765)
|
|
(1,655)
|
|
(5,945)
|
Cash and cash
equivalents, end of period
|
197,384
|
|
197,708
|
|
197,384
|
|
197,708
|
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 September 30,
|
|
Nine
months ended September 30,
|
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
Non-GAAP net
income attributable to the Company
|
|
56,157
|
|
60,386
|
|
168,430
|
|
149,340
|
Non-GAAP net
margin
|
|
17.3%
|
|
18.4%
|
|
18.2%
|
|
15.9%
|
Amortization of
acquired intangible assets
|
|
(3,499)
|
|
(3,243)
|
|
(10,384)
|
|
(9,935)
|
Deferred tax impact
related to acquired intangible assets
|
|
662
|
|
613
|
|
1,881
|
|
1,848
|
Dispute related legal
fees, net of tax impact
|
|
(2,340)
|
|
(2,446)
|
|
(2,340)
|
|
(5,266)
|
Going private related
expenses, net of tax impact
|
|
-
|
|
(874)
|
|
-
|
|
(874)
|
Share-based
compensation
|
|
(4,937)
|
|
(3,565)
|
|
(16,288)
|
|
(10,907)
|
GAAP net income
attributable to the Company
|
|
46,043
|
|
50,871
|
|
141,299
|
|
124,206
|
GAAP net
margin
|
|
14.2%
|
|
15.5%
|
|
15.3%
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic
earnings per share
|
|
0.48
|
|
0.51
|
|
1.44
|
|
1.27
|
Non-GAAP diluted
earnings per share
|
|
0.47
|
|
0.51
|
|
1.42
|
|
1.26
|
|
|
|
|
|
|
|
|
|
GAAP basic earnings
per share
|
|
0.39
|
|
0.43
|
|
1.21
|
|
1.05
|
GAAP diluted earnings
per share
|
|
0.39
|
|
0.43
|
|
1.19
|
|
1.05
|
|
|
|
|
|
|
|
|
|
Shares used in
computation of:
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
117,106,169
|
|
117,846,734
|
|
116,979,193
|
|
117,830,960
|
Diluted
earnings per share
|
|
118,231,031
|
|
118,657,681
|
|
118,315,564
|
|
118,818,946
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
|
54,434
|
|
69,284
|
|
168,380
|
|
167,550
|
Non-GAAP operating
margin
|
|
16.8%
|
|
21.1%
|
|
18.2%
|
|
17.9%
|
Amortization of
acquired intangible assets
|
|
(3,499)
|
|
(3,243)
|
|
(10,384)
|
|
(9,935)
|
Dispute related legal
fees
|
|
(2,600)
|
|
(2,878)
|
|
(2,600)
|
|
(6,195)
|
Going private related
expenses
|
|
-
|
|
(874)
|
|
-
|
|
(874)
|
Share-based
compensation
|
|
(4,937)
|
|
(3,565)
|
|
(16,288)
|
|
(10,907)
|
GAAP operating
income
|
|
43,398
|
|
58,724
|
|
139,108
|
|
139,639
|
GAAP operating
margin
|
|
13.4%
|
|
17.9%
|
|
15.1%
|
|
14.9%
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross
profit
|
|
185,119
|
|
180,664
|
|
524,657
|
|
517,633
|
Non-GAAP gross
margin
|
|
57.0%
|
|
55.1%
|
|
56.8%
|
|
55.2%
|
Amortization of
acquired intangible assets
|
|
(1,808)
|
|
(1,672)
|
|
(5,676)
|
|
(5,186)
|
Share-based
compensation
|
|
(474)
|
|
(195)
|
|
(909)
|
|
(582)
|
GAAP gross
profit
|
|
182,837
|
|
178,797
|
|
518,072
|
|
511,865
|
GAAP gross
margin
|
|
56.3%
|
|
54.6%
|
|
56.1%
|
|
54.6%
|
|
|
|
|
|
|
|
|
|
Non-GAAP selling
expenses
|
|
(61,486)
|
|
(59,708)
|
|
(174,245)
|
|
(174,175)
|
Non-GAAP as % of
total net revenues
|
|
18.9%
|
|
18.2%
|
|
18.9%
|
|
18.6%
|
Amortization of
acquired intangible assets
|
|
(1,691)
|
|
(1,571)
|
|
(4,708)
|
|
(4,749)
|
Share-based
compensation
|
|
(2,623)
|
|
(1,262)
|
|
(5,114)
|
|
(3,935)
|
GAAP selling
expenses
|
|
(65,800)
|
|
(62,541)
|
|
(184,067)
|
|
(182,859)
|
GAAP as % of total
net revenues
|
|
20.3%
|
|
19.1%
|
|
19.9%
|
|
19.5%
|
|
|
|
|
|
|
|
|
|
Non-GAAP general
and administrative expenses
|
|
(36,061)
|
|
(15,770)
|
|
(87,467)
|
|
(71,628)
|
Non-GAAP as % of
total net revenues
|
|
11.1%
|
|
4.8%
|
|
9.5%
|
|
7.6%
|
Dispute related legal
fees
|
|
(2,600)
|
|
(2,878)
|
|
(2,600)
|
|
(6,195)
|
Going private related
expenses
|
|
-
|
|
(874)
|
|
-
|
|
(874)
|
Share-based
compensation
|
|
(632)
|
|
(917)
|
|
(6,617)
|
|
(2,688)
|
GAAP general and
administrative expenses
|
|
(39,293)
|
|
(20,439)
|
|
(96,684)
|
|
(81,385)
|
GAAP as % of total
net revenues
|
|
12.1%
|
|
6.2%
|
|
10.5%
|
|
8.7%
|
|
|
|
|
|
|
|
|
|
Non-GAAP research
and development expenses
|
|
(33,138)
|
|
(35,902)
|
|
(94,565)
|
|
(104,280)
|
Non-GAAP as % of
total net revenues
|
|
10.2%
|
|
11.0%
|
|
10.2%
|
|
11.1%
|
Share-based
compensation
|
|
(1,208)
|
|
(1,191)
|
|
(3,648)
|
|
(3,702)
|
GAAP research and
development expenses
|
|
(34,346)
|
|
(37,093)
|
|
(98,213)
|
|
(107,982)
|
GAAP as % of total
net revenues
|
|
10.6%
|
|
11.3%
|
|
10.6%
|
|
11.5%
|
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 September 30,
|
|
Nine months ended September 30,
|
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
GAAP net income
attributable to the Company
|
|
46,043
|
|
50,871
|
|
141,299
|
|
124,206
|
Interest income
|
|
(9,530)
|
|
(7,589)
|
|
(27,987)
|
|
(21,919)
|
Interest expense
|
|
1,462
|
|
1,082
|
|
5,148
|
|
3,175
|
Income tax
provision
|
|
4,729
|
|
14,825
|
|
18,677
|
|
33,288
|
|
|
|
|
|
|
|
|
|
Earnings before
interest and taxes ("EBIT")
|
|
42,704
|
|
59,189
|
|
137,137
|
|
138,750
|
Depreciation
|
|
9,070
|
|
9,651
|
|
26,402
|
|
29,422
|
Amortization
|
|
5,743
|
|
5,304
|
|
16,889
|
|
16,274
|
|
|
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
("EBITDA")
|
|
57,517
|
|
74,144
|
|
180,428
|
|
184,446
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mindray-announces-third-quarter-2015-financial-results-300178461.html
SOURCE Mindray Medical International Limited