Navigation Links
Inverness Medical Innovations Announces First Quarter 2009 Results
Date:4/27/2009

WALTHAM, Mass., April 27 /PRNewswire-FirstCall/ -- Inverness Medical Innovations, Inc. (NYSE: IMA), a global leader in enabling individuals to take charge of their health at home through the merger of rapid diagnostics and health management, today announced its financial results for the quarter ended March 31, 2009.

In the first quarter of 2009, the Company recorded net revenue of $443.9 million compared to net revenue of $372.2 million in the first quarter of 2008. The revenue increase was primarily due to $76.9 million of incremental revenue provided by our Health Management segment principally as a result of incremental revenues from recently acquired businesses, along with $10.2 million of incremental revenue contributed by our other recently acquired businesses, offset in part by the adverse impact of foreign currency translation which reduced reported revenues by $16.6 million. A relatively mild flu season resulted in a reduction in sales of our influenza tests in North America by $12.4 million from the first quarter of 2008. Excluding the impact of this reduction, the currency adjusted organic growth rate in our Professional Diagnostics segment was approximately 8%.

For the first quarter of 2009, the net income prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") was $6.3 million, or $0.01 per diluted common share, compared to net loss of $4.2 million, or $0.05 per diluted common share, for the first quarter of 2008. The Company reported adjusted cash basis net income of $56.1 million, or $0.61 per diluted common share, for the first quarter of 2009, compared to adjusted cash basis net income of $39.1 million, or $0.48 per diluted common share, for the first quarter of 2008.

The Company's GAAP results for the first quarter of 2009 include amortization of $58.6 million, $5.4 million of restructuring charges, $5.9 million of stock-based compensation expense and $4.7 million of acquisition-related costs recorded in accordance with our adoption of SFAS No. 141-R, Business Combinations. GAAP results for the first quarter of 2008 include amortization of $40.0 million, $16.3 million of restructuring charges, $5.6 million of stock-based compensation expense, a $1.7 million charge related to the write-up to fair market value of inventory acquired in connection with the acquisitions of Panbio Limited and BBI Holdings Plc., and a net realized foreign currency loss of $1.7 million associated with a cash escrow established in connection with the acquisition of BBI Holdings Plc. These amounts, net of tax, have been excluded from the adjusted cash basis net income per common share for the respective quarters.

A detailed reconciliation of the Company's adjusted cash basis net income, which is a non-GAAP financial measure, to net income under GAAP, as well as a discussion regarding this non-GAAP financial measure, is included in the schedules to this press release.

The Company will host a conference call beginning at 10:00 a.m. (Eastern Time) today, April 27, 2009, to discuss these results as well as other corporate matters. During the conference call, the Company may answer questions concerning business and financial developments and trends and other business and financial matters. The Company's responses to these questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed.

The conference call may be accessed by dialing 706-679-1656 (domestic and international), an access code is not required, or via a link on the Inverness website at www.invmed.com. It is also available via link at https://event.meetingstream.com/r.htm?e=143196&s=1&k=B623F2CFEF254698763484BC6914EF4B. An archive of the call will be available from the same link approximately two hours after the conclusion of the live call and will be accessible for 90 days. Additionally, reconciliations to non-GAAP financial measures not included in this press release that may be discussed during the call will also be available at the Inverness website (www.invmed.com/News.cfm) shortly before the conference call begins and will continue to be available on this website for 30 days.

For more information about Inverness Medical Innovations, please visit our website at http://www.invernessmedical.com.

By developing new capabilities in near-patient diagnosis, monitoring and health management, Inverness Medical Innovations enables individuals to take charge of improving their health and quality of life at home. Inverness' global leading products and services, as well as its new product development efforts, focus on infectious disease, cardiology, oncology, drugs of abuse and women's health. Inverness is headquartered in Waltham, Massachusetts.

              Inverness Medical Innovations, Inc. and Subsidiaries
               Condensed Consolidated Statements of Operations and
              Reconciliation to Non-GAAP Adjusted Cash Basis Amounts
                      (in $000s, except per share amounts)

                                      Three Months Ended March 31, 2009
                                      ---------------------------------

                                                                     Non-GAAP
                                                                     Adjusted
                                                 Non-GAAP              Cash
                                        GAAP    Adjustments          Basis (a)
                                        ----   -------------       -----------

    Net product sales and services
     revenue                        $434,800        $-             $434,800
    License and royalty revenue        9,060         -                9,060
                                       -----         -                -----
      Net revenue                    443,860                        443,860
    Cost of net revenue              209,658   (12,417)(b)(c)(d)    197,241
                                     -------   -------              -------
      Gross profit                   234,202    12,417              246,619
                                     -------    ------              -------
      Gross margin                       53%                            56%

    Operating expenses:
      Research and development        27,052    (2,420)(b)(c)(d)     24,632
      Selling, general and
       administrative                178,996   (58,213)(b)(c)(d)(g) 120,783
                                     -------   -------              -------
          Total operating expenses   206,048   (60,633)             145,415
                                     -------   -------              -------
              Operating income        28,154    73,050              101,204
    Interest and other income
     (expense), net                  (20,671)      130 (c)          (20,541)
    Income tax provision (benefit)     3,689    24,768 (h)           28,457
    Equity earnings of unconsolidated
     entities, net of tax              2,497     1,388 (b)(c)         3,885
                                       -----     -----                -----
      Net income (loss)               $6,291   $49,800              $56,091
                                      ======   =======              =======

    Preferred stock dividends        $(5,520)                       $(5,520)

      Net income (loss) available to
       common stockholders - basic      $771                        $50,571
                                        ====                        =======

    Net income (loss) per common share:
      Basic                            $0.01                          $0.64
                                       =====                          =====
      Diluted                          $0.01 (i)                      $0.61(k)
                                       =====                          =====

    Weighted average common shares -
     basic                            78,614                         78,614
    Weighted average common shares -
     diluted                          79,637 (i)                     93,812(k)



                                      Three Months Ended March 31, 2008
                                      ---------------------------------

                                                                     Non-GAAP
                                                                     Adjusted
                                                 Non-GAAP              Cash
                                        GAAP    Adjustments          Basis (a)
                                        ----   -------------       -----------

    Net product sales and services
     revenue                        $361,361        $-             $361,361
    License and royalty revenue       10,872         -               10,872
                                      ------         -               ------
      Net revenue                    372,233                        372,233
    Cost of net revenue              191,843   (23,614)(b)(c)(d)(e) 168,229
                                     -------   -------              -------
      Gross profit                   180,390    23,614              204,004
                                     -------    ------              -------
      Gross margin                       48%                            55%

    Operating expenses:
      Research and development       30,925     (5,380)(b)(c)(d)     25,545
      Selling, general and
       administrative               134,687    (34,327)(b)(c)(d)    100,360
                                    -------    -------              -------
          Total operating expenses  165,612    (39,707)             125,905
                                    -------    -------              -------
              Operating income       14,778     63,321               78,099
    Interest and other income
     (expense), net                 (20,753)     1,691 (f)          (19,062)
    Income tax provision (benefit)     (880)    21,966 (h)           21,086
    Equity earnings of unconsolidated
     entities, net of tax               921        242 (b)            1,163
                                        ---        ---                -----
      Net income (loss)             $(4,174)   $43,288              $39,114
                                    =======    =======              =======

    Preferred stock dividends            $-                              $-

      Net income (loss) available to
       common stockholders - basic  $(4,174)                        $39,114
                                    =======                         =======

    Net income (loss) per common share:
      Basic                          $(0.05)                          $0.51
                                     ======                           =====
      Diluted                        $(0.05)(j)                       $0.48(l)
                                     ======                           =====

    Weighted average common shares -
     basic                           77,244                          77,244
    Weighted average common shares -
     diluted                         77,244(j)                       83,124(l)

(a) In calculating net income or loss on an adjusted cash basis, the Company excludes from net income or loss (i) certain non-cash charges, including amortization expense and stock-based compensation expense, (ii) non-recurring charges and income, and (iii) certain other charges and income that have a significant positive or negative impact on results yet do not occur on a consistent or regular basis in its business. In determining whether a particular item meets one of these criteria, management considers facts and circumstances that it believes are relevant. Management believes that excluding such charges and income from net income or loss allows investors and management to evaluate and compare the Company's operating results from continuing operations from period to period in a meaningful and consistent manner. Due to the frequency of their occurrence in its business, the Company does not adjust net income or loss for the costs associated with litigation, including payments made or received through settlements. It should be noted that "net income or loss on an adjusted cash basis" is not a standard financial measurement under accounting principles generally accepted in the United States of America ("GAAP") and should not be considered as an alternative to net income or loss or cash flow from operating activities, as a measure of liquidity or as an indicator of operating performance or any measure of performance derived in accordance with GAAP. In addition, all companies do not calculate non-GAAP financial measures in the same manner and, accordingly, "net income or loss on an adjusted cash basis" presented in this press release may not be comparable to similar measures used by other companies.

(b) Amortization expense of $58.6 million and $40.0 million in the first quarter of 2009 and 2008 GAAP results, respectively, including $10.0 million and $12.0 million charged to cost of sales, $0.9 million and $0.8 million charged to research and development, $47.5 million and $27.0 million charged to selling, general and administrative, with $0.2 million charged through equity earnings of unconsolidated entities, net of tax during each of the respective quarters.

(c) Restructuring charges associated with the decision to close facilities of $5.4 million and $16.3 million for the first quarter of 2009 and 2008 GAAP results, respectively. The $5.4 million charge for the first quarter of 2009 includes: $2.0 million charged to cost of sales, $0.5 million charged to research and development, $1.6 million charged to selling, general and administrative expense, $0.1 million charged to interest expense and $1.2 million charged through equity earnings of unconsolidated entities, net of tax. The $16.3 million charge for the first quarter of 2008 includes: $9.7 million charged to cost of sales, $3.4 million charged to research and development and $3.2 million charged to selling, general and administrative expense. These charges have been excluded from net income or loss because they have a significant impact on results yet do not occur on a consistent or regular basis in the Company's business.

(d) Compensation costs of $5.9 million and $5.6 million associated with stock-based compensation expense for the first quarter of 2009 and 2008 GAAP results, respectively, including $0.5 million and $0.3 million charged to cost of sales, $1.0 million and $1.2 million charged to research and development and $4.4 million and $4.1 million charged to selling, general and administrative, in the respective quarters.

(e) Write-off in the amount of $1.7 million relating to inventory write-ups recorded in connection with the acquisitions of Panbio Limited and BBI Holdings Plc., during the first quarter of 2008.

(f) A $1.7 million net realized foreign currency loss associated with a cash escrow established in connection with the acquisition of BBI Holdings Plc.

(g) Write-off in the amount of $4.7 million for acquisition-related costs recorded in connection with the adoption of SFAS No. 141-R, Business Combinations, on January 1, 2009.

(h) Tax effect on adjustments as discussed above in notes (b), (c), (d), (e), (f) and (g).

(i) Included in the weighted average diluted common shares for the calculation of net income per common share on a GAAP basis for the three months ended March 31, 2009, are dilutive shares consisting of 1,023,000 common stock equivalent shares from the potential exercise of stock options and warrants. Potential dilutive shares consisting of 3,411,000 common stock equivalent shares from the potential conversion of convertible debt securities and potential dilutive shares consisting of 10,765,000 common stock equivalent shares from the potential conversion of Series B convertible preferred stock were not included in the calculation of net income per common share on a GAAP basis for the three months ended March 31, 2009 because inclusion thereof would be antidilutive.

(j) For the three months ended March 31, 2008, potential diluted shares were not used in the calculation of diluted net loss per common share under GAAP because inclusion thereof would be antidilutive.

(k) Included in the weighted average diluted common shares for the calculation of net income per common share for the three months ended March 31, 2009, on an adjusted cash basis, are dilutive shares consisting of 1,023,000 common stock equivalent shares from the potential exercise of stock options and warrants. Also included were potential dilutive shares consisting of 3,411,000 common stock equivalent shares from the potential conversion of convertible debt securities and 10,765,000 common stock equivalent shares from the potential conversion of Series B convertible preferred stock. The diluted net income per common share calculation for the three months ended March 31, 2009, on an adjusted cash basis, includes the add back of interest expense related to the convertible debt of $0.7 million and the add back of preferred stock dividends related to the Series B convertible preferred stock resulting in net income available to common stockholders of $56.8 million for the three months ended March 31, 2009.

(l) Included in the weighted average dilutive common shares for the calculation of net income per common share on an adjusted cash basis for the three months ended March 31, 2008 are dilutive shares consisting of 5,880,000 common stock equivalent shares from the potential exercise of stock options and warrants and conversion of convertible debt. The net income per diluted share calculation for the three months ended March 31, 2008, on an adjusted cash basis, is calculated as if the convertible debt was converted resulting in net income available to common shareholders of $39.9 million.

              Inverness Medical Innovations, Inc. and Subsidiaries
                     Condensed Consolidated Balance Sheets
                                   (in $000s)

                                                      March 31,  December 31,
                                                          2009          2008
                                                          ----          ----
                                                    (unaudited)
    ASSETS
    ------
    CURRENT ASSETS:
    Cash and cash equivalents                         $205,181      $141,324
    Restricted cash                                      3,705         2,748
    Marketable securities                                1,558         1,763
    Accounts receivable, net                           273,541       280,608
    Inventories, net                                   198,497       199,131
    Prepaid expenses and other current assets          175,502       196,969
                                                       -------       -------
    Total current assets                               857,984       822,543

    PROPERTY, PLANT AND EQUIPMENT, NET                 287,126       284,483
    GOODWILL AND OTHER INTANGIBLE ASSETS, NET        4,626,840     4,717,704
    DEFERRED FINANCING COSTS AND OTHER ASSETS, NET     130,556       130,630
                                                       -------       -------
    Total assets                                    $5,902,506    $5,955,360
                                                    ==========    ==========

    LIABILITIES AND STOCKHOLDERS' EQUITY
    ------------------------------------
    CURRENT LIABILITIES:
    Current portion of notes payable                   $19,023       $19,509
    Other current liabilities                          324,827       345,836
                                                       -------       -------
    Total current liabilities                          343,850       365,345
                                                       -------       -------

    LONG-TERM LIABILITIES:
    Notes payable, net of current portion            1,497,009     1,501,025
    Deferred tax liability                             462,674       462,787
    Other long-term liabilities                        341,296       347,365
                                                       -------       -------
    Total long-term liabilities                      2,300,979     2,311,177
                                                     ---------     ---------

    TOTAL STOCKHOLDERS' EQUITY                       3,257,677     3,278,838
                                                     ---------     ---------
    Total liabilities and stockholders' equity      $5,902,506    $5,955,360
                                                    ==========    ==========


'/>"/>
SOURCE Inverness Medical Innovations, Inc.
Copyright©2009 PR Newswire.
All rights reserved


Related medicine news :

1. Inverness Completes Acquisition of Cholestech
2. Inverness Medical Innovations Acquires Bio-Stat Healthcare Group
3. Inverness Medical Innovations Acquires Alere Medical
4. Inverness Medical Innovations Announces Closing of Public Offering
5. Inverness Medical Innovations to Participate at 2007 RBC Healthcare Conference on December 12, 2007
6. Inverness Medical Innovations to Acquire Redwood Toxicology Laboratory
7. Inverness Medical Innovations Enters Into a Definitive Agreement to Acquire Matria Healthcare, Inc.
8. Inverness Medical Innovations to Present at 2008 UBS Global Healthcare Services Conference on February 13, 2008
9. Inverness Medical Innovations Schedules Conference Call for 10:00 a.m. ET February 20, 2008 to Discuss Fourth Quarter 2007 Results
10. Law Offices of Howard G. Smith Announces Investigation on Behalf of Current and Former Employees of Inverness Medical Innovations, Inc. Who Invested in the Inverness Medical Innovations, Inc. Employee Savings Plan
11. Correction: Law Offices of Howard G. Smith Announces Investigation on Behalf of Shareholders of Inverness Medical Innovations, Inc.
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/26/2016)... ... June 26, 2016 , ... Brent Kasmer, a legally blind and certified personal trainer is helping ... fitness app. The fitness app plans to fix the two major problems leading the fitness ... size fits all type program , They don’t eliminate all the reasons people ...
(Date:6/25/2016)... , ... June 25, 2016 , ... The temporary closing of Bruton Memorial Library on ... Observer , brings up a new, often overlooked aspect of head lice: the parasite’s ability ... fumigation is not a common occurrence, but a necessary one in the event that lice ...
(Date:6/25/2016)... ... June 25, 2016 , ... ... non-athletes recover from injury. Recently, he has implemented orthobiologic procedures as a method ... —Johnson is one of the first doctors to perform the treatment. Orthobiologics are ...
(Date:6/24/2016)... ... ... Those who have experienced traumatic events may suffer from a complex set ... drug or alcohol abuse, as a coping mechanism. To avoid this pain and suffering, ... traumatic event. , Trauma sufferers tend to feel a range of emotions, from depression, ...
(Date:6/24/2016)... ... June 24, 2016 , ... Global law firm Greenberg Traurig, ... Elite. The attorneys chosen by their peers for this recognition are considered among the ... Traurig Shareholders received special honors as members of this year’s Legal Elite Hall of ...
Breaking Medicine News(10 mins):
(Date:6/26/2016)... , June 27, 2016  VMS Rehab Systems, Inc. ... will take whatever measures required to build a strong ... which is currently listed on the OTC Markets-pink current ... Chairman and CEO, "We are seeing an anomaly in ... understand, not only by the Company, but shareholders and ...
(Date:6/24/2016)... 24, 2016   Bay Area Lyme Foundation ... Dean Center for Tick Borne Illness , Harvard ... MIT Hacking Medicine, University of California, Berkeley, and ... the five finalists of Lyme Innovation , ... than 100 scientists, clinicians, researchers, entrepreneurs, and investors ...
(Date:6/24/2016)... and SAN CLEMENTE, Calif. , June 24, 2016 ... mobile pulmonary function testing company, is now able to perform sophisticated ... by ndd Medical Technologies , Inc. Patients ... hospital-based labs.  Thanks to ndd,s EasyOne PRO ® , ARL patients ... get any needed testing done in the comfort of her own ...
Breaking Medicine Technology: