Greatbatch Inc. (GB, Financial) filed Quarterly Report for the period ended 2009-07-03.
Greatbatch Inc. is a leading developer and manufacturer of critical components used in implantable medical devices and other technically demanding applications. Greatbatch Inc. has a market cap of $487.4 million; its shares were traded at around $21.02 with a P/E ratio of 12.2 and P/S ratio of 0.9.
Operating income increased to $27.3 million for the first six months of 2009 compared to $7.2 million for the comparable 2008 period. Operating income for the first six months of 2009 included $5.2 million of acquisition related charges, consolidation costs and integration expenses compared to $12.6 million for the same period in 2008. We have initiated various consolidation initiatives aimed at streamlining our operations and improving operating profitability. The progress made on these initiatives can be seen by the improvement in operating margin from 2008 to 2009.
As of the end of the second quarter of 2009, cash and cash equivalents totaled $19.0 million. These funds along with the cash generated from operations and the $114 million available under our line of credit are sufficient to meet our operating and investment activities for the foreseeable future, including the cash expenditures relating to our consolidation initiatives. During the first two quarters of 2009, we repaid $11 million of our long-term debt which was funded by cash flows from operations.
The total cost for the 2007 & 2008 facility shutdowns and consolidations is expected to be approximately $14.2 million to $17.5 million, of which $12.4 million has been incurred through July 3, 2009. The major categories of costs include the following:
All categories of costs are considered to be cash expenditures, except accelerated depreciation and asset write-offs. For the first two quarters of 2009, costs relating to these initiatives of $1.4 million and $2.1 million were included in the Greatbatch Medical and Electrochem business segments, respectively. Costs incurred during the first six months of 2008 of $1.1 million and $0.5 million were included in the Greatbatch Medical and Electrochem business segments, respectively.
Read the The complete ReportGB is in the portfolios of PRIMECAP Management.
Greatbatch Inc. is a leading developer and manufacturer of critical components used in implantable medical devices and other technically demanding applications. Greatbatch Inc. has a market cap of $487.4 million; its shares were traded at around $21.02 with a P/E ratio of 12.2 and P/S ratio of 0.9.
Highlight of Business Operations:
Consolidated sales for the first six months of 2009 were $274.5 million, an increase of 4% over the comparable 2008 period. This growth was driven by CRM and Neuromodulation revenue and the benefit of a full six months of Orthopaedic operations ($8 million) as compared to the 2008 period. Partially offsetting these increases were lower Electrochem revenue due to a slow-down in the energy markets and approximately $4 million of foreign currency impact on our Orthopaedic sales. Our revenue is significantly impacted each quarter due to the timing of various customer product launches, shifts in customer market share, customer inventory management initiatives as well as marketplace field actions.Operating income increased to $27.3 million for the first six months of 2009 compared to $7.2 million for the comparable 2008 period. Operating income for the first six months of 2009 included $5.2 million of acquisition related charges, consolidation costs and integration expenses compared to $12.6 million for the same period in 2008. We have initiated various consolidation initiatives aimed at streamlining our operations and improving operating profitability. The progress made on these initiatives can be seen by the improvement in operating margin from 2008 to 2009.
As of the end of the second quarter of 2009, cash and cash equivalents totaled $19.0 million. These funds along with the cash generated from operations and the $114 million available under our line of credit are sufficient to meet our operating and investment activities for the foreseeable future, including the cash expenditures relating to our consolidation initiatives. During the first two quarters of 2009, we repaid $11 million of our long-term debt which was funded by cash flows from operations.
The total cost for the 2007 & 2008 facility shutdowns and consolidations is expected to be approximately $14.2 million to $17.5 million, of which $12.4 million has been incurred through July 3, 2009. The major categories of costs include the following:
All categories of costs are considered to be cash expenditures, except accelerated depreciation and asset write-offs. For the first two quarters of 2009, costs relating to these initiatives of $1.4 million and $2.1 million were included in the Greatbatch Medical and Electrochem business segments, respectively. Costs incurred during the first six months of 2008 of $1.1 million and $0.5 million were included in the Greatbatch Medical and Electrochem business segments, respectively.
Read the The complete ReportGB is in the portfolios of PRIMECAP Management.
