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Thoratec Corp. Reports Operating Results (10-Q)

November 02, 2012 | About:
10qk

10qk

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Thoratec Corp. (THOR) filed Quarterly Report for the period ended 2012-09-29.

Thoratec Laboratories Corporation has a market cap of $2.06 billion; its shares were traded at around $36.62 with a P/E ratio of 23.5 and P/S ratio of 4.9. Thoratec Laboratories Corporation had an annual average earning growth of 27.8% over the past 10 years. GuruFocus rated Thoratec Laboratories Corporation the business predictability rank of 3.5-star.

Highlight of Business Operations:

During the three months ended September 29, 2012 as compared to the three months ended October 1, 2011, product sales increased by $15.2 million or 14.8% driven by strong sales volume of our HeartMate II and CentriMag products. HeartMate II units grew 27% contributing $18.3 million to the increase, while the CentriMag and PediMag product lines increase was attributable to the incremental revenues of $0.9 million related to the Levitronix Medical acquisition. The increase was partially offset by a decline of $3.4 million in sales of the Thoratec product line. From a regional perspective, U.S. sales contributed $13.6 million to the increase, while international sales contributed $1.6 million.

During the nine months ended September 29, 2012 as compared to the nine months ended October 1, 2011, product sales increased by $49.9 million or 15.9% driven by strong sales volume of our HeartMate II and CentriMag products. HeartMate II units grew 23% contributing $51.3 million to the increase, while the CentriMag and PediMag product lines contributed $7.3 million to the increase, primarily attributable to the incremental revenues of $6.1 million related to the Levitronix Medical acquisition. This was partially offset by a decline of $8.7 million in sales of the Thoratec product line. From a regional perspective, U.S. sales contributed $39.2 million to the increase, while international sales contributed $10.7 million.

Sales originating outside of the U.S. and U.S. export sales accounted for approximately 17% and 18% of our total product sales for each of the three months ended September 29, 2012 and October 1, 2011, respectively, and approximately 18% and 17% of our total product sales for each of the nine months ended September 29, 2012 and October 1, 2011, respectively.

Cash provided by operating activities in the nine months ended September 29, 2012 was $109.2 million and consisted of net income of $70.5 million, adjustments for non-cash items of $26.6 million, and cash provided by working capital of $12.1 million. Adjustments for non-cash items primarily consisted of $16.0 million of stock-based compensation expense, $14.6 million of depreciation and amortization expense, offset by $4.2 million related to deferred income taxes and $2.2 million for excess tax benefits from stock-based compensation. The increase in cash from changes in working capital activities primarily consisted of a decrease in inventory of $5.2 million resulting from lower inventory levels, offset by an increase in accounts receivable of $2.0 million from higher sales in the first nine months of 2012. Increases to accounts payable and other liabilities totaling $11.7 million also contributed to cash provided by operating activities.

Cash provided by investing activities in the nine months ended October 1, 2011 of $124.2 million was primarily attributable to the maturities and sales of available for sale investments of $476.3 million. This was partially offset by the purchases of available for sale investments of $236.4 million, $110.0 million used for the acquisition of Levitronix Medical in August 2011, and capital expenditures of $5.7 million to support our manufacturing facilities and administration growth.

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