Mindray Announces Third Quarter 2015 Financial Results

SHENZHEN, ChinaNov. 13, 2015 /PRNewswire/ -- Mindray Medical International Limited (NYSE: MR), a leading developer, manufacturer and marketer of medical devices worldwide, announced today its selected unaudited financial results for the third quarter ended September 30, 2015.

Highlights for Third Quarter 2015

 

  • Net revenues reached $327.6 million, up 0.9% from $324.6 million a year ago.
    • China net revenues were $152.6 million, representing 46.6% of the company's total net revenues.
    • International net revenues totaled $175.0 million, up 3.6% from the same period a year ago.
  • Reagent net revenues grew more than 18% year-over-year. Reagents contributed 51.0% to the IVD segment, up from 44.2% in the same period last year.
  • In this quarter, the company generated around $16.0 million foreign exchange gain from RMB's depreciation against US dollars.

SUMMARY -- Third quarter 2015

(in $ millions, except per-share data)

Three Months Ended

September 30

2015

2014

% chg

Net Revenues

327.6

324.6

0.9%

Net Revenues Generated in China

152.6

155.7

-2.0%

Net Revenues Generated in International Markets

175.0

168.9

3.6%

Gross Profit

178.8

182.8

-2.2%

Non-GAAP Gross Profit

180.7

185.1

-2.4%

Operating Income

58.7

43.4

35.3%

Non-GAAP Operating Income

69.3

54.4

27.3%

EBITDA

74.1

57.5

28.9%

Net Income1

50.9

46.0

10.5%

Non-GAAP Net Income1

60.4

56.2

7.5%

Non-GAAP Net Income2 (ex FX gain from RMB's 
depreciation against US dollars)

46.1

56.2

-17.9%

Non-GAAP Net Income (ex tax benefit)3

60.4

54.7

10.4%

Diluted EPS

0.43

0.39

10.1%

Non-GAAP Diluted EPS

0.51

0.47

7.1%

Non-GAAP Diluted EPS (ex FX gain from RMB's 
depreciation against US dollars)

0.39

0.47

-18.2%

Non-GAAP Diluted EPS (ex tax benefit)

0.51

0.46

10.0%

 

1 For this press release, net income and non-GAAP net income refers to GAAP net income attributable to Mindray shareholders and non-GAAP net income attributable to Mindray shareholders as stated in exhibit below, respectively.

The non-GAAP net income (ex FX gain from RMB's depreciation against US dollars)excludes foreign exchange gain, net of related tax impact, of $14.3 million recognized in the third quarter of 2015 in relation to RMB's depreciation against US dollars.

3 The non-GAAP net income (ex tax benefit)excludes the tax benefits of $1.3 million recognized in the third quarter of 2014 in relation to the nationwide key software enterprise status and the non-GAAP tax benefits of $0.1 million recognized in the third quarter of 2014 in relation to dispute related legal fees. The nationwide key software enterprise status is reviewed by the Chinese government every two years and is subject to approval. The company did not record any such tax benefit in the third quarter of 2015.

Net Revenues

Mindray reported net revenues of $327.6 million for the third quarter of 2015, a 0.9% increase from the third quarter of 2014.

  • Net revenues generated in China decreased 2.0%year-over-year to $152.6 million.
  • Net revenues generated in the international markets increased 3.6% year-over-year to $175.0 million.

Performance by Segment

Patient Monitoring & Life Support Products: Net revenues in this segment decreased 2.7% year-over-year to $114.8 million, contributing 35.1% to total net revenues in the third quarter of 2015.

In-Vitro Diagnostic Products: Net revenues in this segment increased 2.9% year-over-year to $95.2 million, contributing 29.1% to total net revenues in the third quarter of 2015. Reagents sales represented 51.0% of net revenues in this segment.

Medical Imaging Systems: Net revenues in this segment increased 3.8% year-over-year to $85.6 million, contributing 26.1% to total net revenues in the third quarter of 2015.

Others: Net revenues in this segment increased 1.0% year-over-year to $31.9 million, contributing 9.7% to total net revenues in the third quarter of 2015.Other net revenues mainly include sales from the orthopedics business, service revenues from extended warranties, sales of accessories and repair service revenues for post-warranty period.

Gross Margin

Third quarter 2015 gross profit was $178.8million, a 2.2% decrease from the third quarter of 2014. Gross margin was 54.6% in the third quarter of 2015 compared to 56.3% in the third quarter of 2014 and 54.7% in the second quarter of 2015. Third quarter 2015 non-GAAP gross profit was $180.7million, a 2.4% decrease from the third quarter of 2014. Non-GAAP gross margin was 55.1% in the third quarter of 2015 compared to 57.0% in the third quarter of 2014 and 55.2% in the second quarter of 2015.

Operating Expenses

Selling expenses for the third quarter of 2015 were $62.5 million, or 19.1% of total net revenues, compared to 20.3% in the third quarter of 2014 and 19.0% in the second quarter of 2015. Non-GAAP selling expenses for the third quarter of 2015 were $59.7 million, or 18.2% of total net revenues, compared to 18.9% in the third quarter of 2014 and18.1%in the second quarter of 2015.

General and administrative expenses for the third quarter of 2015 were $20.4million, or 6.2% of total net revenues, compared to 12.1% in the third quarter of 2014 and 10.1% in the second quarter of 2015. Non-GAAP general and administrative expenses for the third quarter of 2015 were $15.8 million, or 4.8% of total net revenues, compared to 11.1% in the third quarter of 2014 and 9.1% in the second quarter of 2015. The change is largely due to the foreign exchange gain of $16.0 million from RMB's depreciation against US dollars.

Research and development expenses for the third quarter of 2015 were $37.1 million, or 11.3% of total net revenues, compared to 10.6% in the third quarter of 2014 and 10.8% in the second quarter of 2015. Non-GAAP research and development expenses for the third quarter of 2015 were $35.9 million, or 11.0% of total net revenues, compared to 10.2% in the third quarter of 2014 and 10.4% in the second quarter of 2015.

Total share-based compensation expenses, which were allocated to cost of revenues and related operating expenses, were $3.6 million in the third quarter of 2015, compared to $4.9 million in the third quarter of 2014 and $3.7 million in the second quarter of 2015.

Operating income for the third quarter of 2015 was $58.7 million, a 35.3% increase from the third quarter of 2014. Operating margin was 17.9% in the third quarter of 2015, compared to 13.4% in the third quarter of 2014 and 14.8% in the second quarter of 2015. Non-GAAP operating income for the third quarter of 2015 was $69.3 million, a 27.3% increase from the third quarter of 2014. Non-GAAP operating margin was 21.1% in the third quarter of 2015compared to 16.8% in the third quarter of 2014 and 17.6% in the second quarter of 2015.

Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA")

Third quarter 2015 EBITDA increased 28.9% year-over-year to $74.1 million.

Net Income

Third quarter 2015 net income increased 10.5% year-over-year to $50.9 million. Net margin was 15.5% in the third quarter of 2015 compared to 14.2% in the third quarter of 2014 and 12.2% in the second quarter of 2015. Third quarter 2015 non-GAAP net income increased 7.5% year-over-year to $60.4 million. Non-GAAP net margin was 18.4% in the third quarter of 2015, compared to 17.3%in the third quarter of 2014 and 14.7% in the second quarter of 2015. Third quarter 2015 interest income was $7.6 million, compared to$9.5 million a year ago and $3.0 million in the previous quarter. Third quarter 2015 income tax expense was $14.8 million, representing an effective tax rate of 22.1%.

Third quarter 2015 non-GAAP net income (excluding the tax benefits in relation to our nationwide key software enterprise status) increased 10.4% year-over-year to $60.4 million. Non-GAAP net margin (excluding the tax benefits in relation to our nationwide key software enterprise status) was 18.4% in the third quarter of 2015, compared to 16.9% in the third quarter of 2014 and 14.7% in the second quarter of 2015.

Third quarter 2015 basic and diluted earnings per share were both $0.43, compared to $0.39 for both in the third quarter of 2014. Third quarter 2015 basic and diluted non-GAAP earnings per share were both $0.51, compared to $0.48 and $0.47 respectively, in the third quarter of 2014. Shares used in the computation of diluted earnings per share for the third quarter 2015were 118.7 million.

Other Select Data

Accounts receivable turnover days were 51 days in the third quarter of 2015, improved from 55 days in the third quarter of 2014 and the same compared to the second quarter of 2015. Inventory turnover days were 108 days in the third quarter of 2015, compared to 106 days in the third quarter of 2014 and 101 days in the second quarter of 2015. Accounts payable turnover days were 63 days in the third quarter of 2015, compared to 67 days in the third quarter of 2014 and 57 days in the second quarter of 2015. Mindray calculates the above working capital turnover days using the average of the beginning and ending net balances of the quarter.

As of September 30, 2015, the company had $958.0 million in cash and cash equivalents as well as short-term and restricted investments (excluding $7.1 million investment being held on escrow account in connection with acquisition), compared to $1,057.9 million as of June 30, 2015. Net cash generated by operating activities and net cash outflow for capital expenditures for the third quarter of 2015 were $108.8 million and $27.2 million respectively.

As of September 30, 2015, the company had around 8,400 employees.

Going Private Transaction

On November 4, 2015, the company entered into a definitive Agreement and Plan of Merger with respect to the previously announced "going private" transaction. The agreed purchase price per ADS is US$28.0.

The transaction is subject to various closing conditions, including shareholder approval. The company will prepare and file with the U.S. Securities and Exchange Commission (the "SEC") a Schedule 13E-3 transaction statement, which will include a proxy statement of the company. The Schedule 13E-3 will include a description of the Agreement and Plan of Merger and contain other important information about the transaction, the company, and the other participants in the transaction.

In the interim, investors are encouraged to review the related Form 6-K filed with the SEC at www.sec.gov on November 4, 2015 that contains certain information and attachments with respect to the going private transaction and its participants.

In light of these events the company does not intend to host a conference call to discuss the financial information contained in this press release.

Use of Non-GAAP Financial Measures

Mindray provides gross profit, selling expenses, general and administrative expenses, research and development expenses, operating income, net income and earnings per share on a non-GAAP basis that excludes share-based compensation expense, acquired intangible assets amortization expense, dispute related legal fees and going private related expenses, all net of related tax impact, as well as EBITDA to enable investors to better assess the company's operating performance for the third quarter of 2015 and its comparative periods. The non-GAAP measures described by the company are reconciled to the corresponding GAAP measure in the exhibit below titled "Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures".

The company has reported operation results for the third quarter of 2015 and its comparative periods on a non-GAAP basis. Each of the terms as used by the company is defined as follows:

  • Non-GAAP gross profit represents gross profit reported in accordance with GAAP, adjusted for the effects of share-based compensation and amortization of acquired intangible assets.
  • Non-GAAP operating income represents operating income reported in accordance with GAAP, adjusted for the effects of share-based compensation, amortization of acquired intangible assets, dispute related legal fees and going private related expenses.
  • Non-GAAP selling expenses represent selling expenses reported in accordance with GAAP, adjusted for the effects of share-based compensation and amortization of acquired intangible assets.
  • Non-GAAP general and administrative expenses represent general and administrative expenses reported in accordance with GAAP, adjusted for the effects of share-based compensation, dispute related legal fees and going private related expenses.
  • Non-GAAP research and development expenses represent research and development expenses reported in accordance with GAAP, adjusted for the effects of share-based compensation.
  • Non-GAAP net income represents net income reported in accordance with GAAP, adjusted for the effects of share-based compensation, amortization of acquired intangible assets, dispute related legal fees and going private related expenses, all net of related tax impact.
  • Non-GAAP earnings per share represents non-GAAP net income divided by the number of shares used in computing basic and diluted earnings per share in accordance with GAAP, and excludes the impact of the declared dividends for the basic calculation.
  • EBITDA represents net income reported in accordance with GAAP, adjusted for the effect of interest income and expenses, provision of income taxes, depreciation and amortization.

The company computes its non-GAAP financial measures using the same consistent method from quarter to quarter. The company notes that these measures may not be calculated on the same basis of similar measures used by other companies. Readers are cautioned not to view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies, and should refer to the reconciliation of GAAP results with non-GAAP results for the three and nine months ended September 30, 2014 and 2015, respectively, in the attached financial information.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are not historical facts are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors, including, without limitation, competitive, pricing and other conditions in China and our international markets and our ability to effectively address or respond those conditions; our ability effectively attract and retain our key employees; the growth and expected growth of the medical device market in China and internationally; applicable government policies and regulations; our ability to satisfy the requirements imposed by relevant regulatory bodies; market acceptance of our products; our expectations regarding demand for our products; our ability to expand our production, our sales and distribution network and other aspects of our operations; our ability to stay abreast of market trends and technological advances; our ability to effectively protect our intellectual property rights and not infringe on the intellectual property rights of others; our ability to settle disputes with our customers and suppliers and related costs, expenses and potential business disruptions; competition in the medical device industry in China and internationally; and general economic and business conditions in the countries in which we operate. For a discussion of other important factors that could adversely affect our business, financial condition, results of operations and prospects, see "Risk Factors" beginning on page 6 of our annual report on Form 20-F which was filed with the Securities and Exchange Commission on April 16, 2015. Our results of operations for the third quarter as of September 30, 2015are not necessarily indicative of our operating results for any future periods. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in our public filings with the Securities and Exchange Commission. Any projections in this release are based on limited information currently available to us, which is subject to change. Although such projections and the factors influencing them will likely change, we will not necessarily update the information. Such information speaks only as of the date of this release.

All references to "shares" are to our ordinary shares, which are divided into two classes, Class A and Class B. Each of our American Depositary Shares, which trade on the New York Stock Exchange, represents one Class A ordinary share.

About Mindray

We are a leading developer, manufacturer and marketer of medical devices worldwide. We maintain our global headquarters inShenzhen, China, U.S. headquarters in Mahwah, New Jersey and multiple sales offices in major international markets. From our main manufacturing and engineering base in China, we supply through our worldwide distribution network a broad range of products across three primary business segments, namely patient monitoring and life support, in-vitro diagnostics, and medical imaging systems. For more information, please visit http://ir.mindray.com.

For investor and media inquiries, please contact:

In China
Cathy Gao
Mindray Medical International Limited
Tel: +86-755-8188-8023
Email: [email protected]

In the U.S:
Hoki Luk
Western Bridge, LLC
Tel:+1-646-808-9150
Email: [email protected]

-tables to follow-

 

 

MINDRAY MEDICAL INTERNATIONAL LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of US dollars)

         
   

As of  December 31, 2014

 

As of  September 30, 2015

   

 US$ 

 

 US$ 

   

 (Note 1) 

 

 (unaudited) 

ASSETS

     

Current assets:

     
 

Cash and cash equivalents (Note 2)

276,598

 

197,708

 

Restricted cash (Note 3)

7,422

 

28

 

Restricted investments (Note 4)

-

 

234,622

 

Short-term investments (Note 2)

816,394

 

525,688

 

Accounts receivable, net

222,522

 

175,959

 

Inventories

150,642

 

180,030

 

Value added tax receivables

3,432

 

8,790

 

Other receivables and current assets

23,316

 

155,564

 

Prepayments and deposits

16,481

 

25,471

 

Deferred tax assets, net

14,802

 

18,482

Total current assets

1,531,609

 

1,522,342

         

Restricted cash, non-current (Note 3)

5,061

 

2,769

Restricted investment, non-current (Note 5)

-

 

7,074

Other assets

9,666

 

8,835

Accounts receivables, net, non-current

3,350

 

2,623

Advances for purchase of plant and equipment

21,840

 

19,579

Property, plant and equipment, net

412,733

 

440,150

Land use rights, net 

59,057

 

55,805

Intangible assets, net

175,451

 

156,978

Goodwill

254,435

 

251,205

Total assets

2,473,202

 

2,467,360

         

LIABILITIES AND EQUITY

     

Current liabilities:

     
 

Short-term bank loans

59,625

 

249,629

 

Notes payable

9,234

 

5,829

 

Accounts payable

93,523

 

100,284

 

Advances from customers

31,396

 

48,361

 

Salaries payable

114,583

 

97,275

 

Other payables and current liabilities

168,139

 

163,383

 

Purchase consideration payable

17,173

 

7,090

 

Income taxes payable

20,415

 

32,713

 

Other taxes payable

10,342

 

6,199

Total current liabilities

524,430

 

710,763

         

Long-term bank loans

197,585

 

48,000

Other long-term liabilities

10,670

 

11,155

Deferred tax liabilities, net

69,233

 

78,815

Total liabilities

801,918

 

848,733

         

Mindray shareholders' equity:

     

Ordinary shares

15

 

15

Additional paid-in capital

453,564

 

433,872

Retained earnings

1,000,257

 

1,077,366

Accumulated other comprehensive income

144,120

 

68,292

Total Mindray shareholders' equity

1,597,956

 

1,579,545

         

Non-controlling interests

73,328

 

39,082

Total equity

1,671,284

 

1,618,627

Total liabilities and equity

2,473,202

 

2,467,360

         

(1) Financial information is extracted from the audited financial statements included in the Company's 2014 annual report on Form 20-F.

(2) In respect of cash and cash equivalents and short-term investments, there is an aggregate compensating balance arrangement of $189,000 and $nil as of December 31, 2014 and September 30, 2015, respectively in relation to the drawings of certain bank loans.

(3) Restricted cash as of December 31, 2014 is mainly those purchase consideration in connection with our acquisitions being held on escrow accounts.

(4) Restricted investments are those investments in Chinese Renminbi denominated financial products placed with bank which are restricted as to withdrawal or usage according to new terms imposed on certain bank loans during the quarter ended March 31, 2015.

(5) Restricted investment, non-current is the purchase consideration being held as time deposit which is restricted as withdrawal or usage for over one year in connection with our acquisition.

 

 

MINDRAY MEDICAL INTERNATIONAL LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of US dollars, except share and per share amounts)

               
 

   Three months ended September  30,

 

   Nine months ended September  30,

 

2014

 

2015

 

2014

 

2015

 

US$

 

 US$ 

 

US$

 

 US$ 

 

(unaudited)

 

 (unaudited) 

 

(unaudited)

 

 (unaudited) 

Net revenues

             

China

155,699

 

152,567

 

423,996

 

428,388

International 

168,937

 

175,048

 

499,863

 

508,508

Net revenues

324,636

 

327,615

 

923,859

 

936,896

Cost of revenues 

(141,799)

 

(148,818)

 

(405,787)

 

(425,031)

Gross profit

182,837

 

178,797

 

518,072

 

511,865

               

Selling expenses 

(65,800)

 

(62,541)

 

(184,067)

 

(182,859)

General and administrative expenses 

(39,293)

 

(20,439)

 

(96,684)

 

(81,385)

Research and development expenses 

(34,346)

 

(37,093)

 

(98,213)

 

(107,982)

Income from operations

43,398

 

58,724

 

139,108

 

139,639

               

Other income, net

631

 

1,796

 

2,225

 

3,589

Interest income

9,530

 

7,589

 

27,987

 

21,919

Interest expense

(1,462)

 

(1,082)

 

(5,148)

 

(3,175)

Income before income taxes and non-controlling interests

52,097

 

67,027

 

164,172

 

161,972

Income tax provision

(4,729)

 

(14,825)

 

(18,677)

 

(33,288)

Net income 

47,368

 

52,202

 

145,495

 

128,684

Less: Net income attributable to non-controlling interests

(1,325)

 

(1,331)

 

(4,196)

 

(4,478)

Net income attributable to Mindray shareholders

46,043

 

50,871

 

141,299

 

124,206

               

Basic earnings per share

0.39

 

0.43

 

1.21

 

1.05

               

Diluted earnings per share

0.39

 

0.43

 

1.19

 

1.05

               

Shares used in the computation of:

             

Basic earnings per share

117,106,169

 

117,846,734

 

116,979,193

 

117,830,960

               

Diluted earnings per share

118,231,031

 

118,657,681

 

118,315,564

 

118,818,946

 

 

MINDRAY MEDICAL INTERNATIONAL LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of US dollars)

               
 

   Three months ended September  30,

 

    Nine months ended September  30,

 

2014

 

2015

 

2014

 

2015

 

 US$ 

 

 US$ 

 

 US$ 

 

 US$ 

 

 (unaudited) 

 

 (unaudited) 

 

 (unaudited) 

 

 (unaudited) 

Cash flow from operating activities:

             

  Net income

47,368

 

52,202

 

145,495

 

128,684

  Adjustments to reconcile net income to net cash provided by operating activities

22,969

 

27,437

 

71,666

 

82,819

  Changes in assets and liabilities, net of effects of acquisitions

15,187

 

29,208

 

(27,372)

 

(3,579)

Net cash provided by operating activities 

85,524

 

108,847

 

189,789

 

207,924

               

Cash flow from investing activities:

             

   Acquisition cost of subsidiaries, net of cash received 

(852)

 

(11,113)

 

(9,067)

 

(16,691)

   Capital expenditures

(28,057)

 

(27,239)

 

(79,108)

 

(78,335)

   Decrease (increase) in restricted cash

724

 

10,699

 

(790)

 

9,730

   Increase in restricted investments 

-

 

(7,354)

 

-

 

(59,499)

   Proceeds from sale of short-term investments

184,247

 

424,208

 

800,762

 

576,779

   Increase in short-term investments and changes in other investing activities

(407,911)

 

(514,776)

 

(749,649)

 

(646,957)

Net cash used in investing activities

(251,849)

 

(125,575)

 

(37,852)

 

(214,973)

               

Cash flow from financing activities:

             

   Repayment of bank loans

-

 

-

 

(210,000)

 

(4,375)

   Proceeds from bank loans, net of costs

-

 

-

 

-

 

47,712

   Dividend paid

-

 

-

 

(58,711)

 

(47,097)

   Proceeds from exercise of options

1,731

 

81

 

2,745

 

1,938

   Repurchase of ordinary American depositary shares

-

 

-

 

(68,080)

 

-

   Cash paid to acquire a non-controlling interest

-

 

(64,074)

 

(4,731)

 

(64,074)

   Cash contribution from a non-controlling interest

416

 

-

 

655

 

-

Net cash provided by (used in) financing activities

2,147

 

(63,993)

 

(338,122)

 

(65,896)

               

Net decrease in cash and cash equivalents

(164,178)

 

(80,721)

 

(186,185)

 

(72,945)

   Cash and cash equivalents, beginning of period

362,311

 

284,194

 

385,224

 

276,598

   Effect of exchange rate changes on cash and cash equivalents

(749)

 

(5,765)

 

(1,655)

 

(5,945)

Cash and cash equivalents, end of period

197,384

 

197,708

 

197,384

 

197,708

 

 

MINDRAY MEDICAL INTERNATIONAL LIMITED

RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST

COMPARABLE GAAP MEASURES

(In thousands of US dollars, except share and per share amounts)

                 
   

   Three months ended September  30,

 

   Nine months ended September  30,

   

2014

 

2015

 

2014

 

2015

   

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

   

 US$ 

 

 US$ 

 

 US$ 

 

 US$ 

Non-GAAP net income attributable to the Company

 

56,157

 

60,386

 

168,430

 

149,340

Non-GAAP net margin

 

17.3%

 

18.4%

 

18.2%

 

15.9%

Amortization of acquired intangible assets

 

(3,499)

 

(3,243)

 

(10,384)

 

(9,935)

Deferred tax impact related to acquired intangible assets

 

662

 

613

 

1,881

 

1,848

Dispute related legal fees, net of tax impact

 

(2,340)

 

(2,446)

 

(2,340)

 

(5,266)

Going private related expenses, net of tax impact

 

-

 

(874)

 

-

 

(874)

Share-based compensation

 

(4,937)

 

(3,565)

 

(16,288)

 

(10,907)

GAAP net income attributable to the Company

 

46,043

 

50,871

 

141,299

 

124,206

GAAP net margin

 

14.2%

 

15.5%

 

15.3%

 

13.3%

                 

Non-GAAP basic earnings per share

 

0.48

 

0.51

 

1.44

 

1.27

Non-GAAP diluted earnings per share

 

0.47

 

0.51

 

1.42

 

1.26

                 

GAAP basic earnings per share

 

0.39

 

0.43

 

1.21

 

1.05

GAAP diluted earnings per share

 

0.39

 

0.43

 

1.19

 

1.05

                 

 Shares used in computation of: 

               

 Basic earnings per share 

 

117,106,169

 

117,846,734

 

116,979,193

 

117,830,960

 Diluted earnings per share 

 

118,231,031

 

118,657,681

 

118,315,564

 

118,818,946

                 

Non-GAAP operating income

 

54,434

 

69,284

 

168,380

 

167,550

Non-GAAP operating margin

 

16.8%

 

21.1%

 

18.2%

 

17.9%

Amortization of acquired intangible assets

 

(3,499)

 

(3,243)

 

(10,384)

 

(9,935)

Dispute related legal fees

 

(2,600)

 

(2,878)

 

(2,600)

 

(6,195)

Going private related expenses

 

-

 

(874)

 

-

 

(874)

Share-based compensation

 

(4,937)

 

(3,565)

 

(16,288)

 

(10,907)

GAAP operating income

 

43,398

 

58,724

 

139,108

 

139,639

GAAP operating margin

 

13.4%

 

17.9%

 

15.1%

 

14.9%

                 

Non-GAAP gross profit

 

185,119

 

180,664

 

524,657

 

517,633

Non-GAAP gross margin

 

57.0%

 

55.1%

 

56.8%

 

55.2%

Amortization of acquired intangible assets 

 

(1,808)

 

(1,672)

 

(5,676)

 

(5,186)

Share-based compensation

 

(474)

 

(195)

 

(909)

 

(582)

GAAP gross profit

 

182,837

 

178,797

 

518,072

 

511,865

GAAP gross margin

 

56.3%

 

54.6%

 

56.1%

 

54.6%

                 

Non-GAAP selling expenses

 

(61,486)

 

(59,708)

 

(174,245)

 

(174,175)

Non-GAAP as % of total net revenues

 

18.9%

 

18.2%

 

18.9%

 

18.6%

Amortization of acquired intangible assets 

 

(1,691)

 

(1,571)

 

(4,708)

 

(4,749)

Share-based compensation

 

(2,623)

 

(1,262)

 

(5,114)

 

(3,935)

GAAP selling expenses

 

(65,800)

 

(62,541)

 

(184,067)

 

(182,859)

GAAP as % of total net revenues

 

20.3%

 

19.1%

 

19.9%

 

19.5%

                 

Non-GAAP general and administrative expenses

 

(36,061)

 

(15,770)

 

(87,467)

 

(71,628)

Non-GAAP as % of total net revenues

 

11.1%

 

4.8%

 

9.5%

 

7.6%

Dispute related legal fees

 

(2,600)

 

(2,878)

 

(2,600)

 

(6,195)

Going private related expenses

 

-

 

(874)

 

-

 

(874)

Share-based compensation

 

(632)

 

(917)

 

(6,617)

 

(2,688)

GAAP general and administrative expenses

 

(39,293)

 

(20,439)

 

(96,684)

 

(81,385)

GAAP as % of total net revenues

 

12.1%

 

6.2%

 

10.5%

 

8.7%

                 

Non-GAAP research and development expenses

 

(33,138)

 

(35,902)

 

(94,565)

 

(104,280)

Non-GAAP as % of total net revenues

 

10.2%

 

11.0%

 

10.2%

 

11.1%

Share-based compensation

 

(1,208)

 

(1,191)

 

(3,648)

 

(3,702)

GAAP research and development expenses

 

(34,346)

 

(37,093)

 

(98,213)

 

(107,982)

GAAP as % of total net revenues

 

10.6%

 

11.3%

 

10.6%

 

11.5%

 

 

 

MINDRAY MEDICAL INTERNATIONAL LIMITED

RECONCILIATION OF GAAP NET INCOME TO EARNINGS BEFORE INTEREST, TAXES,

DEPRECIATION AND AMORTIZATION

(In thousands of US dollars)

                 
   

   Three months ended September  30,

 

    Nine months ended September  30,

   

2014

 

2015

 

2014

 

2015

   

US$

 

US$

 

US$

 

US$

   

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

GAAP net income attributable to the Company

 

46,043

 

50,871

 

141,299

 

124,206

     Interest income

 

(9,530)

 

(7,589)

 

(27,987)

 

(21,919)

     Interest expense

 

1,462

 

1,082

 

5,148

 

3,175

     Income tax provision 

 

4,729

 

14,825

 

18,677

 

33,288

                 

Earnings before interest and taxes ("EBIT")

 

42,704

 

59,189

 

137,137

 

138,750

     Depreciation

 

9,070

 

9,651

 

26,402

 

29,422

     Amortization

 

5,743

 

5,304

 

16,889

 

16,274

                 

Earnings before interest, taxes, depreciation, and amortization ("EBITDA")

 

57,517

 

74,144

 

180,428

 

184,446

 

 

 

 

SOURCE Mindray Medical International Limited