Haemonetics Corp. (HAE, Financial) filed Quarterly Report for the period ended 2008-12-27.
Haemonetics is a global company engaged in the design manufacture and worldwide marketing of automated blood processing systems. These systems address important medical markets: surgical blood salvage blood component collections and plasma collections. The majority of their business is outside the US. Haemonetics Corp. has a market cap of $1.49 billion; its shares were traded at around $63.47 with a P/E ratio of 27.3 and P/S ratio of 2.88. Haemonetics Corp. had an annual average earning growth of 9.9% over the past 10 years. GuruFocus rated Haemonetics Corp. the business predictability rank of 4.5-star.
Net revenues increased 15.5% and 17.9% for the third quarter and the first nine months of fiscal year 2009 over the comparable period of fiscal year 2008. The effects of foreign exchange accounted for an increase of 1.0% and 3.7% for the third quarter and nine months, respectively. The remaining increase of 14.5% for the quarter and 14.2% for the nine months is mainly due to increases in our disposables revenue and equipment sales. The increase in disposables revenue for the quarter resulted primarily from disposable unit increases in Plasma and Surgical & Diagnostic. Surgical & Diagnostic disposables revenue include $5.3 million and $15.0 million of revenues for the third quarter and nine months, respectively related to the TEG® Thrombelastograph® Hemostasis Analyzer business (TEG® or TEG) which was acquired in the third quarter of fiscal year 2008 and the Medicell business which was acquired in the first quarter of fiscal year 2009.
Gross profit increased 17.6% and 20.3% for the third quarter and the first nine months of fiscal year 2009 over the comparable period of fiscal year 2008. The favorable effects of foreign exchange accounted for an increase of 2.6% and 5.7% for the third quarter and first nine months of fiscal year 2009, respectively. The remaining
Operating income increased 25.0% and 34.9% for the third quarter and the first nine months of fiscal year 2009 over the comparable period of fiscal year 2008. The favorable effects of foreign exchange accounted for an increase of 13.1% and 14.6% for the third quarter and the first nine months of fiscal year 2009, respectively. Without the effects of foreign exchange, operating income increased 11.9% for the quarter and 20.3% for the nine months. These increases were a result of the gross profit changes described above offset by higher operating expenses of 16.3% and 12.3% for the third quarter and first nine months of fiscal year 2009, respectively. The noted higher operating expenses are largely related to the expenses from the recent acquisitions, including TEG® and increased employee performance based compensation expense in the third quarter and first nine months of fiscal year 2009 based on strong Company performance versus pre-established targets.
Net income increased 13.0% and 18.8% for the third quarter and the first nine months of fiscal year 2009 over the comparable periods of fiscal year 2008. The main factor that affected net income was the increase in operating income, due to the reasons mentioned above and a reduction in interest and other income. The increase in operating income was partially offset by lower interest income and by higher other expense, net relating to lower cash on hand stemming from the TEG® business acquisition and share repurchase program, and lower investment yield.
Our revenues generated outside the U.S. approximated 52.8% and 54.3% of total sales for the third quarter of fiscal years 2009 and 2008, respectively and 53.8% and 55.0% for the first nine months of fiscal years 2009 and 2008, respectively. Revenues in Japan accounted for approximately 17.7% and 16.4% of total revenues for the third quarter of fiscal year 2009 and 2008, respectively and 16.5% and 17.6% of total revenues for the first nine months of fiscal year 2009 and 2008, respectively. Revenues in Europe accounted for approximately 27.6% and 30.8% of total revenues for the third quarters of fiscal year 2009 and 2008 and 29.5% and 29.7% of total revenues for the first nine months of fiscal year 2009 and 2008, respectively. International sales are primarily conducted in local currencies, primarily the Japanese Yen and the Euro. As discussed above, our results of operations can be impacted by changes in the value of the Yen and the Euro relative to the U.S. dollar.
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Haemonetics is a global company engaged in the design manufacture and worldwide marketing of automated blood processing systems. These systems address important medical markets: surgical blood salvage blood component collections and plasma collections. The majority of their business is outside the US. Haemonetics Corp. has a market cap of $1.49 billion; its shares were traded at around $63.47 with a P/E ratio of 27.3 and P/S ratio of 2.88. Haemonetics Corp. had an annual average earning growth of 9.9% over the past 10 years. GuruFocus rated Haemonetics Corp. the business predictability rank of 4.5-star.
Highlight of Business Operations:
Our disposables revenue stream (including sales of disposables and fees for the use of our equipment) accounted for approximately 86.9% and 85.5% of our total revenues for the third quarter of fiscal year 2009 and 2008, respectively and 87.1% and 86.2% of our total revenues for the first nine months of fiscal year 2009 and 2008, respectively.Net revenues increased 15.5% and 17.9% for the third quarter and the first nine months of fiscal year 2009 over the comparable period of fiscal year 2008. The effects of foreign exchange accounted for an increase of 1.0% and 3.7% for the third quarter and nine months, respectively. The remaining increase of 14.5% for the quarter and 14.2% for the nine months is mainly due to increases in our disposables revenue and equipment sales. The increase in disposables revenue for the quarter resulted primarily from disposable unit increases in Plasma and Surgical & Diagnostic. Surgical & Diagnostic disposables revenue include $5.3 million and $15.0 million of revenues for the third quarter and nine months, respectively related to the TEG® Thrombelastograph® Hemostasis Analyzer business (TEG® or TEG) which was acquired in the third quarter of fiscal year 2008 and the Medicell business which was acquired in the first quarter of fiscal year 2009.
Gross profit increased 17.6% and 20.3% for the third quarter and the first nine months of fiscal year 2009 over the comparable period of fiscal year 2008. The favorable effects of foreign exchange accounted for an increase of 2.6% and 5.7% for the third quarter and first nine months of fiscal year 2009, respectively. The remaining
Operating income increased 25.0% and 34.9% for the third quarter and the first nine months of fiscal year 2009 over the comparable period of fiscal year 2008. The favorable effects of foreign exchange accounted for an increase of 13.1% and 14.6% for the third quarter and the first nine months of fiscal year 2009, respectively. Without the effects of foreign exchange, operating income increased 11.9% for the quarter and 20.3% for the nine months. These increases were a result of the gross profit changes described above offset by higher operating expenses of 16.3% and 12.3% for the third quarter and first nine months of fiscal year 2009, respectively. The noted higher operating expenses are largely related to the expenses from the recent acquisitions, including TEG® and increased employee performance based compensation expense in the third quarter and first nine months of fiscal year 2009 based on strong Company performance versus pre-established targets.
Net income increased 13.0% and 18.8% for the third quarter and the first nine months of fiscal year 2009 over the comparable periods of fiscal year 2008. The main factor that affected net income was the increase in operating income, due to the reasons mentioned above and a reduction in interest and other income. The increase in operating income was partially offset by lower interest income and by higher other expense, net relating to lower cash on hand stemming from the TEG® business acquisition and share repurchase program, and lower investment yield.
Our revenues generated outside the U.S. approximated 52.8% and 54.3% of total sales for the third quarter of fiscal years 2009 and 2008, respectively and 53.8% and 55.0% for the first nine months of fiscal years 2009 and 2008, respectively. Revenues in Japan accounted for approximately 17.7% and 16.4% of total revenues for the third quarter of fiscal year 2009 and 2008, respectively and 16.5% and 17.6% of total revenues for the first nine months of fiscal year 2009 and 2008, respectively. Revenues in Europe accounted for approximately 27.6% and 30.8% of total revenues for the third quarters of fiscal year 2009 and 2008 and 29.5% and 29.7% of total revenues for the first nine months of fiscal year 2009 and 2008, respectively. International sales are primarily conducted in local currencies, primarily the Japanese Yen and the Euro. As discussed above, our results of operations can be impacted by changes in the value of the Yen and the Euro relative to the U.S. dollar.
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