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Zoll Medical Corp. (ZOLL) filed Quarterly Report for the period ended 2012-01-01.
Zoll Medical Corp. has a market cap of $1.55 billion; its shares were traded at around $69.79 with a P/E ratio of 46.5 and P/S ratio of 3.1. Zoll Medical Corp. had an annual average earning growth of 13.2% over the past 10 years.
This is the annual revenues and earnings per share of ZOLL over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ZOLL.
Highlight of Business Operations:
Our sales for the three months ended January 1, 2012 increased 18% to $133.7 million, as compared to the same period in the prior year. The increase in sales was driven primarily by the LifeVest and the North American core defibrillator businesses. LifeVest revenue grew 45% in the three months ended January 1, 2012 compared to the same period in fiscal 2011. In December 2011, Centers for Medicare & Medicaid Services (CMS) reaffirmed the existing Local Coverage Determination for coverage for the LifeVest, which also garnered strong support from the clinical and professional societies. We believe our core North American hospital business, particularly with respect to professional defibrillator equipment, benefitted from market share gains and pent up demand. Revenues from the North American core hospital business, excluding U.S. military, grew 38% in the three months ended January 1, 2012 to $30.5 million, compared to revenues of $22.1 million from this business in the prior-year quarter. Sales to the U.S. military decreased approximately $4.9 million, or 57%, to $3.7 million for the three months ended January 1, 2012, compared to sales of $8.6 million in the same period in the prior year, as business with the U.S. military can be subject to irregular and unpredictable ordering patterns. Our gross margin reflected an improvement in product mix, lower factory costs, and improved North American capital equipment related pricing.Total rental revenue of the LifeVest product increased 45% to $32.3 million in the first quarter of fiscal 2012 compared to $22.3 million in the same period of the prior year. This increase was the result of increased acceptance of the LifeVest product in both the U.S. and in Germany. The growth was slightly lower than our historical growth rates, which we attributed to the disruption caused by the issuance in August 2001 of draft revisions with respect to Medicare reimbursement of the LifeVest. These revisions have since been rescinded.
Total sales of the AutoPulse® product to all of our markets decreased 17% during the three months ended January 1, 2012, compared to the three months ended January 2, 2011. Total AutoPulse sales were approximately $4.0 million in the first quarter of fiscal 2012 in comparison to $4.8 million in the prior-year quarter. We believe increased competition has hurt our sales and will require us to refocus our sales force efforts. Refocusing our selling efforts will also help us take advantage of future publications of results from our CIRC trial.
As of January 1, 2012 we had two foreign currency forward contracts designated as cash flow hedges in the amount of approximately $5.5 million, each of which matures in less than twelve months. The net settlement amount of these contracts on January 1, 2012 was an unrealized gain of approximately $311,000, which is included within “Accumulated other comprehensive income” on our condensed consolidated balance sheet. We had a net realized gain of approximately $167,000 from foreign currency forward contracts designated as cash flow hedges during the quarter ended January 1, 2012, which was included in earnings within “Product sales” in the condensed consolidated statement of income. As of January 2, 2011 we had three foreign currency forward contracts designated as cash flow hedges in the amount of approximately $8 million, all maturing in less than twelve months. The net settlement amount of these contracts on January 2, 2011 was an unrealized gain of approximately $10,000, which is included within “Accumulated other comprehensive income” on our condensed consolidated balance sheet. We had a net realized gain of approximately $4,000 from foreign currency forward contracts designated as cash flow hedges during the quarter ended January 2, 2011, which was included in earnings within “Investment and other income (expense), net” in the condensed consolidated statement of income.
Inventory on hand may exceed future demand either because the product is outdated or obsolete, or because the amount on hand is in excess of future needs. We provide for the total value of inventories that we determine to be obsolete based on criteria such as customer demand and changing technologies. We estimate excess inventory amounts by reviewing quantities on hand and comparing those quantities to sales forecasts for the next 12 months, identifying historical service usage trends, and matching that usage with the installed base quantities to estimate future needs. At January 1, 2012, our inventory was recorded at net realizable value requiring reserves of $5.9 million, or 9% of our $62.6 million gross inventories. At October 2, 2011, the Company’s inventory was recorded at net realizable value requiring reserves of $6.6 million, or 11% of the $58.5 million gross inventories.
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