Greatbatch Inc. (GB, Financial) filed Quarterly Report for the period ended 2012-09-28.
Greatbatch, Inc. has a market cap of $524.1 million; its shares were traded at around $22.88 with a P/E ratio of 13.4 and P/S ratio of 0.9. Greatbatch, Inc. had an annual average earning growth of 11.7% over the past 10 years.
Third quarter 2012 sales increased 22% over the prior year period to $161.3 million. This increase was driven by our recent acquisitions, which added $21.6 million to sales, as well as a 20% increase in vascular access revenue and 13% growth in our CRM product line. Third quarter results also included the impact of foreign currency exchange rate fluctuations, which lowered orthopaedic sales by approximately $2 million in comparison to the prior year. On an organic constant currency basis, sales for the third quarter increased 8% versus the prior year as the benefits described above were partially offset by continued weakness within our orthopaedics product line. For the year-to-date period, sales increased 14% primarily due to the same reasons that impacted the third quarter results. For the first nine months of 2012, our acquisitions added approximately $64.5 million to revenue while foreign currency exchange rate fluctuations lowered orthopaedic sales by approximately $6 million. At this time, we still expect to achieve our 13% to 17% growth guidance for total sales set at the beginning of the year given stronger than expected performance from our CRM and portable medical product lines.
Third quarter and year-to-date 2012 sales for the vascular access product line increased 20% and 16%, respectively, in comparison to the prior year periods and were primarily driven by the commercialization of new medical devices, as well as market growth. We continue to see a high level of interest in our medical device programs from our OEM customers. However, we now believe that our medical device revenue for 2012 will be $8 million to $10 million, down from the $10 million to $15 million guidance we provided earlier in the year. This decrease is primarily due to a lower rate of acceptance for our medical devices than originally anticipated. If achieved, our 2012 projected medical device revenue will still represent a significant increase over our 2011 medical device sales of $5 million.
Orthopaedic product line sales for the third quarter and year-to-date periods of 2012 declined 13% (-6% constant currency) and 16% (-11% constant currency), respectively, compared to the same periods of 2011. Foreign currency exchange rate fluctuations decreased orthopaedic revenue by approximately $2 million in the third quarter of 2012 ($6 million year-to-date) in comparison to the prior year. The remaining decline in third quarter and year-to-date 2012 orthopaedic sales was a result of price concessions provided to customers, as well as fewer customer product launches and development opportunities due to operational issues within our orthopaedic facilities, which are aggressively being addressed. Given the softness that we are seeing in our orthopaedic product line, we do not expect to achieve the revenue growth assumptions previously provided for that product line.
Electrochem Third quarter and year-to-date 2012 sales for Electrochem increased $21.8 million and $63.4 million, respectively versus the comparable 2011 periods. 2012 third quarter Electrochem sales included $20.9 million ($62.8 million year-to-date) of revenue related to the acquisition of Micro Power in December 2011. On an organic basis, Electrochem revenue increased 5% and 1% for the quarter and year-to-date periods, respectively, in comparison to the prior year due to continued strength in the energy markets. The Micro Power acquisition continues to exceed our initial expectations, and is being driven by successful product launches into the higher growth, higher value portable medical market. This market is benefiting from the shifting of patient care from clinical settings to the home and an aging population, which is driving the need for lightweight/portable devices for patients and caregivers. Our funnel of portable medical products from this acquisition continues to be full and is expected to drive high single digit revenue growth for this product line for the next several years.
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Greatbatch, Inc. has a market cap of $524.1 million; its shares were traded at around $22.88 with a P/E ratio of 13.4 and P/S ratio of 0.9. Greatbatch, Inc. had an annual average earning growth of 11.7% over the past 10 years.
Highlight of Business Operations:
Third quarter 2012 sales increased 22% over the prior year period to $161.3 million. This increase was driven by our acquisitions, which added $21.6 million to sales, as well as growth of 13% in CRM/neuromodulation and 20% in vascular access revenue. Third quarter results also included the impact of foreign currency exchange rate fluctuations, which lowered orthopaedic sales by approximately $2 million in comparison to the prior year. On an organic constant currency basis, sales for the third quarter increased 8% versus the prior year as the benefits described above were partially offset by fewer customer product launches and development opportunities due to operational issues within our orthopaedic operations, which are aggressively being addressed through our consolidation initiatives. For the nine months ended September 28, 2012, sales increased 14% primarily due to our acquisitions, which added approximately $64.5 million to revenue, partially offset by foreign currency exchange rate fluctuations which lowered orthopaedic sales by approximately $6 million.Third quarter 2012 sales increased 22% over the prior year period to $161.3 million. This increase was driven by our recent acquisitions, which added $21.6 million to sales, as well as a 20% increase in vascular access revenue and 13% growth in our CRM product line. Third quarter results also included the impact of foreign currency exchange rate fluctuations, which lowered orthopaedic sales by approximately $2 million in comparison to the prior year. On an organic constant currency basis, sales for the third quarter increased 8% versus the prior year as the benefits described above were partially offset by continued weakness within our orthopaedics product line. For the year-to-date period, sales increased 14% primarily due to the same reasons that impacted the third quarter results. For the first nine months of 2012, our acquisitions added approximately $64.5 million to revenue while foreign currency exchange rate fluctuations lowered orthopaedic sales by approximately $6 million. At this time, we still expect to achieve our 13% to 17% growth guidance for total sales set at the beginning of the year given stronger than expected performance from our CRM and portable medical product lines.
Third quarter and year-to-date 2012 sales for the vascular access product line increased 20% and 16%, respectively, in comparison to the prior year periods and were primarily driven by the commercialization of new medical devices, as well as market growth. We continue to see a high level of interest in our medical device programs from our OEM customers. However, we now believe that our medical device revenue for 2012 will be $8 million to $10 million, down from the $10 million to $15 million guidance we provided earlier in the year. This decrease is primarily due to a lower rate of acceptance for our medical devices than originally anticipated. If achieved, our 2012 projected medical device revenue will still represent a significant increase over our 2011 medical device sales of $5 million.
Orthopaedic product line sales for the third quarter and year-to-date periods of 2012 declined 13% (-6% constant currency) and 16% (-11% constant currency), respectively, compared to the same periods of 2011. Foreign currency exchange rate fluctuations decreased orthopaedic revenue by approximately $2 million in the third quarter of 2012 ($6 million year-to-date) in comparison to the prior year. The remaining decline in third quarter and year-to-date 2012 orthopaedic sales was a result of price concessions provided to customers, as well as fewer customer product launches and development opportunities due to operational issues within our orthopaedic facilities, which are aggressively being addressed. Given the softness that we are seeing in our orthopaedic product line, we do not expect to achieve the revenue growth assumptions previously provided for that product line.
Electrochem Third quarter and year-to-date 2012 sales for Electrochem increased $21.8 million and $63.4 million, respectively versus the comparable 2011 periods. 2012 third quarter Electrochem sales included $20.9 million ($62.8 million year-to-date) of revenue related to the acquisition of Micro Power in December 2011. On an organic basis, Electrochem revenue increased 5% and 1% for the quarter and year-to-date periods, respectively, in comparison to the prior year due to continued strength in the energy markets. The Micro Power acquisition continues to exceed our initial expectations, and is being driven by successful product launches into the higher growth, higher value portable medical market. This market is benefiting from the shifting of patient care from clinical settings to the home and an aging population, which is driving the need for lightweight/portable devices for patients and caregivers. Our funnel of portable medical products from this acquisition continues to be full and is expected to drive high single digit revenue growth for this product line for the next several years.
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