ICU Medical Inc. (ICUI, Financial) filed Quarterly Report for the period ended 2011-03-31.
Icu Medical Inc. has a market cap of $615.4 million; its shares were traded at around $45.03 with a P/E ratio of 20.2 and P/S ratio of 2.2. Icu Medical Inc. had an annual average earning growth of 7.3% over the past 10 years.
Distribution channels: Net U.S. sales to Hospira in the first quarter of 2011 were $27.9 million, compared to net sales of $24.0 million in the first quarter of 2010, an increase of 16%. The $3.9 million increase was primarily due to increased custom sales of $2.0 million, increased CLAVE sales of $0.9 million and increased other product sales of $1.0 million. The increases in custom and CLAVE sales were due to higher unit sales from increased market share through Hospira. In the latter part of 2010, Hospira had additional non-recurring orders for CLAVE and custom infusion sets as they prepared for potential new business because of market conditions and switched their IV tubing from DEHP to non-DEHP material. Excluding the additional CLAVE and custom infusion set orders in the latter part of 2010, we expect moderate growth in sales to Hospira in 2011 from 2010, although there is no assurance that these expectations will be realized.
Net sales to domestic distributors/direct in the first quarter of 2011 (including Canada) were $25.9 million compared to $23.5 million in the first quarter of 2010, an increase of 10%. The increased sales were primarily from $1.3 million in increased custom infusion set sales, $0.7 million of increase CLAVE sales and $1.1 million in increased TEGO sales, our renal dialysis product, partially offset by lower other product revenue. The increases in custom infusion set, CLAVE and TEGO sales were due to higher unit volume sales. We expect increases in domestic distributor sales in 2011 compared to 2010, principally from growth in custom products, CLAVE, renal and oncology, although there is no assurance that these expectations will be realized.
Selling, general and administrative expenses (SG&A) were $22.9 million and 32% of revenues in the first quarter of 2011, compared with $19.7 million and 31% of revenues in the first quarter of 2010. The increase was primarily from a one-time expense for the Long Term Retention Plan (LTRP) of $2.0 million and increased sales and marketing compensation and benefits of $0.7 million. In January 2011, our Compensation Committee determined to pay out the 2005 LTRP grants and to not make any future payments for the 2006 and 2007 awards, thus effectively cancelling the plan. As a result, we recognized $2.0 million of non-recurring expense to SG&A in the first quarter of 2011. The increase in sales and marketing compensation and benefits is primarily a result of the expansion of our sales and marketing workforce and salary increases. We expect SG&A in 2011 to be approximately 28.0-28.5% of revenue. There is no assurance that these expectations will be realized.
Research and development expenses (R&D) were $2.1 million and 3% of revenue in the first quarter of 2011 compared to $0.9 million and 1% of revenue in the first quarter of 2010. The increase was primarily from $0.3 million of LTRP payout expense and $0.6 million of higher project related R&D expenses. We expect R&D in 2011 to be approximately 2.0% of revenue, although there is no assurance that these expectations will be realized.
During the first quarter of 2011, our cash provided by operations was $15.2 million, which was mainly comprised of net income of $8.1 million, depreciation and amortization of $4.5 million and stock compensation expense of $1.0 million, offset by changes in our operating assets and liabilities.
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Icu Medical Inc. has a market cap of $615.4 million; its shares were traded at around $45.03 with a P/E ratio of 20.2 and P/S ratio of 2.2. Icu Medical Inc. had an annual average earning growth of 7.3% over the past 10 years.
Highlight of Business Operations:
We are also expanding our business through increased sales to medical product manufacturers, independent distributors and through direct sales to the end users of our product. These expansions include our 2008 agreement with Premier, our recently awarded full-line critical care products agreement with Premier, our being named the single-source supplier of critical care products to Premiers ASCEND program, the extension of the term of our agreement with MedAssets, our recent entry into an agreement with Novation covering all of our critical care products and the growth of our internal sales and marketing group. Each of Premier, Med Assets and Novation is a U.S. healthcare purchasing network. Custom products, which include custom infusion, custom oncology and custom critical care products, accounted for approximately $24.1 million or 34% of total revenue for the first quarter of 2011 and $100.6 million or 35% of total revenue in 2010. CLAVE sales were $25.0 million or 35% of total revenue for the first quarter of 2011 and $98.4 million or 35% of revenue in 2010. Standard critical care sales were $12.7 million or 18% of total revenue in the first quarter of 2011 and $50.4 million or 18% of sales in 2010. We potentially face substantial increases in competition in our CLAVE business. Therefore, we are focusing on increasing product development, acquisition, sales and marketing efforts to custom products and other products that lend themselves to customization and new products in the U.S. and international markets.Distribution channels: Net U.S. sales to Hospira in the first quarter of 2011 were $27.9 million, compared to net sales of $24.0 million in the first quarter of 2010, an increase of 16%. The $3.9 million increase was primarily due to increased custom sales of $2.0 million, increased CLAVE sales of $0.9 million and increased other product sales of $1.0 million. The increases in custom and CLAVE sales were due to higher unit sales from increased market share through Hospira. In the latter part of 2010, Hospira had additional non-recurring orders for CLAVE and custom infusion sets as they prepared for potential new business because of market conditions and switched their IV tubing from DEHP to non-DEHP material. Excluding the additional CLAVE and custom infusion set orders in the latter part of 2010, we expect moderate growth in sales to Hospira in 2011 from 2010, although there is no assurance that these expectations will be realized.
Net sales to domestic distributors/direct in the first quarter of 2011 (including Canada) were $25.9 million compared to $23.5 million in the first quarter of 2010, an increase of 10%. The increased sales were primarily from $1.3 million in increased custom infusion set sales, $0.7 million of increase CLAVE sales and $1.1 million in increased TEGO sales, our renal dialysis product, partially offset by lower other product revenue. The increases in custom infusion set, CLAVE and TEGO sales were due to higher unit volume sales. We expect increases in domestic distributor sales in 2011 compared to 2010, principally from growth in custom products, CLAVE, renal and oncology, although there is no assurance that these expectations will be realized.
Selling, general and administrative expenses (SG&A) were $22.9 million and 32% of revenues in the first quarter of 2011, compared with $19.7 million and 31% of revenues in the first quarter of 2010. The increase was primarily from a one-time expense for the Long Term Retention Plan (LTRP) of $2.0 million and increased sales and marketing compensation and benefits of $0.7 million. In January 2011, our Compensation Committee determined to pay out the 2005 LTRP grants and to not make any future payments for the 2006 and 2007 awards, thus effectively cancelling the plan. As a result, we recognized $2.0 million of non-recurring expense to SG&A in the first quarter of 2011. The increase in sales and marketing compensation and benefits is primarily a result of the expansion of our sales and marketing workforce and salary increases. We expect SG&A in 2011 to be approximately 28.0-28.5% of revenue. There is no assurance that these expectations will be realized.
Research and development expenses (R&D) were $2.1 million and 3% of revenue in the first quarter of 2011 compared to $0.9 million and 1% of revenue in the first quarter of 2010. The increase was primarily from $0.3 million of LTRP payout expense and $0.6 million of higher project related R&D expenses. We expect R&D in 2011 to be approximately 2.0% of revenue, although there is no assurance that these expectations will be realized.
During the first quarter of 2011, our cash provided by operations was $15.2 million, which was mainly comprised of net income of $8.1 million, depreciation and amortization of $4.5 million and stock compensation expense of $1.0 million, offset by changes in our operating assets and liabilities.
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