CLARENCE, N.Y., July 23, 2001 (PRIMEZONE) -- Wilson Greatbatch Technologies, Inc. ("WGT") (NYSE:GB), a leading developer and manufacturer of power sources and components used in pacemakers and other implantable medical devices and specialty batteries for non-medical applications, today reported record sales and earnings for the second quarter and first half of 2001.
Consolidated revenues for the second quarter ended June 29, 2001 increased 41% to $33.0 million compared to $23.4 million for the comparable period last year. Six-month 2001 revenues were $62.6 million, a 34% increase from six-month 2000 revenues of $46.6 million.
"Our strong second quarter and six month performances reflect increased customer demand. Our medical technology products showed revenue growth of over 24% during this period," said Edward F. Voboril, Chairman, President and Chief Executive Officer. "Revenue derived from commercial power sources also increased significantly during the quarter, benefiting from the continuing recovery in the oil and gas exploration business. Commercial battery revenues, bolstered by last year's acquisition of Battery Engineering, Inc., increased by 181% in the second quarter of 2001 compared to the same quarter last year."
The Company reported record net income for the second quarter of 2001 of $2.6 million compared to a net loss of ($0.4) million for the second quarter of 2000. Diluted earnings per share for the quarter were $0.14, compared to a net loss per diluted share of ($0.03) in the prior year quarter. Net income for the first six months of 2001 was $2.6 million. Included in six month 2001 earnings is an extraordinary loss, net of tax, of $3.0 million relating to the first quarter 2001 retirement of debt. Diluted earnings per share for the first half of 2001, excluding the extraordinary loss, were $0.29.
For the second quarter of 2001, earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 32% to $8.3 million from $6.3 million for the second quarter of 2000.
"Our strong revenue and earnings growth in the first half of 2001 reflects our strategy of investment in our business and proprietary technology as well as strategic acquisitions that have expanded our core competencies. The steps taken to reduce long-term debt in 2000 enabled us to grow earnings at an even faster pace than our revenues during the first half of the year. EBITDA, another key measure of profitability, showed strong growth in the quarter," Voboril stated.
The Company reiterated its June 19, 2001 guidance on estimated revenues and earnings per share for the second half of fiscal year 2001. Voboril commented, "Despite some reports of a reduced pace of business for our industry, we remain comfortable with current research analyst consensus estimates for earnings per share in the third and fourth quarters of fiscal year 2001."
On June 18, 2001, the Company announced the acquisition of the Sierra-KD Components Division, formerly a division of Maxwell Technologies, Inc., located in Carson City, Nevada. The now renamed Greatbatch-Sierra is a leading developer and manufacturer of electromagnetic interference filters ("EMI") and capacitors for implantable medical devices. The acquisition is expected to be neutral to slightly accretive to 2001 earnings per share. "The addition of Greatbatch-Sierra broadens the product line we offer our customers, solidifies our position as a leading provider of enabling technologies to the manufacturers of implantable medical devices and positions us to participate in the growing demand for EMI protection on medical devices," said Voboril.
Wilson Greatbatch Technologies, Inc., with operations in New York, Maryland, Massachusetts and Nevada, is a leading developer and manufacturer of power sources and other critical components used in implantable medical devices and other technically demanding applications. Additional information about Wilson Greatbatch Technologies, Inc. is available at http://www.greatbatch.com.
Some of the statements in this press release and other written and oral statements made from time to time by the company and its representatives are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, as amended, and involve a number of risks and uncertainties. These statements can be identified by terminology such as "may", "will", "should", "could", "expects", "intends", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are based on the company's current expectations. The company's actual results could differ materially from those stated or implied in such forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements include, among others, dependence upon a limited number of customers, product obsolescence, inability to market current or future products, pricing pressure from customers, reliance on third party suppliers for raw materials, products and subcomponents, fluctuating operating results, inability to maintain high quality standards for our products, challenges to our intellectual property rights, product liability claims, inability to successfully consummate and integrate acquisitions, unsuccessful expansion into new markets, competition, inability to obtain licenses to key technology, regulatory changes or consolidation in the healthcare industry, and other risks and uncertainties described in the company's Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission. The company assumes no obligations to update forward-looking information included in this press release to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects.
Wilson Greatbatch Technologies, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands except per share amounts)
Three Months Ended Six Months Ended
------------------ ------------------
June 29, June 30, June 29, June 30,
2001 2000 2001 2000
-------- -------- ------- -------
Revenues $32,987 $23,408 $62,558 $46,584
Cost of goods sold 18,378 13,449 33,938 26,385
------- ------- ------- -------
Gross profit 14,609 9,959 28,620 20,199
Gross profit as a percentage
of revenues 44% 43% 46% 43%
Selling, general and
administrative expense 4,534 2,508 8,314 5,132
Research, development and
engineering costs, net 3,371 2,526 6,559 5,046
Intangible amortization 1,711 1,640 3,350 3,267
------- ------- ------- -------
4,993 3,285 10,397 6,754
Interest expense 728 3,802 1,440 7,787
Other expense 26 10 85 71
------- ------- ------- -------
Income (loss) before income
taxes and extraordinary loss 4,239 (527) 8,872 (1,104)
Income tax expense (benefit) 1,590 (144) 3,304 (328)
------- ------- ------- -------
Income (loss) before
extraordinary loss 2,649 (383) 5,568 (776)
Extraordinary loss on
retirement of debt,
net of tax 0 0 (2,994) 0
------- ------- ------- -------
Net income (loss) $ 2,649 $ (383) $ 2,574 $ (776)
======= ======= ======= =======
Basic earnings (loss)
per share:
Income (loss) from
continuing operations $ 0.14 $ (0.03) $ 0.30 $ (0.06)
Extraordinary loss on
retirement of debt 0.00 0.00 (0.16) 0.00
------- ------- ------- -------
Net income (loss) $ 0.14 $ (0.03) $ 0.14 $ (0.06)
======= ======= ======= =======
Diluted earnings (loss)
per share:
Income (loss) from
continuing operations $ 0.14 $ (0.03) $ 0.29 $ (0.06)
Extraordinary loss on
retirement of debt 0.00 0.00 (0.16) 0.00
------- ------- ------- -------
Net income (loss) $ 0.14 $ (0.03) $ 0.13 $ (0.06)
======= ======= ======= =======
Weighted average shares
outstanding
Basic 18,713 12,614 18,713 12,615
Diluted 19,102 12,614 19,081 12,615
WILSON GREATBATCH TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 29, December 29,
2001 2000
--------- ---------
ASSETS (unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 862 $ 16
Accounts receivable, net of allowance
for doubtful accounts of $389 and
$319 as of June 29, 2001 and
December 29, 2000, respectively 17,174 12,977
Inventories 23,151 13,643
Prepaid expenses and other assets 2,428 819
Refundable income taxes 279 623
Deferred tax asset 1,863 1,863
--------- ---------
Total current assets 45,757 29,941
PROPERTY, PLANT AND EQUIPMENT, NET 38,813 36,625
INTANGIBLE ASSETS, NET 143,024 104,395
DEFERRED TAX ASSET 8,800 8,800
OTHER ASSETS 2,033 1,886
--------- ---------
TOTAL ASSETS $ 238,427 $ 181,647
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 5,863 $ 2,365
Accrued liabilities 13,713 9,480
Current maturities of long-term
obligations 9,011 3,017
--------- ---------
Total current liabilities 28,587 14,862
LONG-TERM OBLIGATIONS 71,416 30,951
--------- ---------
Total liabilities 100,003 45,813
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock 19 19
Capital in excess of par value 157,542 157,526
Retained deficit (14,958) (17,532)
--------- ---------
Subtotal 142,603 140,013
Less treasury stock, at cost (4,179) (4,179)
--------- ---------
Total stockholders' equity 138,424 135,834
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 238,427 $ 181,647
========= =========
Wilson Greatbatch Technologies, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands except per share amounts)
Three Months Ended Six Months Ended
-------------------- -------------------
June 29, June 30, June 29, June 30,
2001 2000 2001 2000
-------- -------- -------- --------
Revenues $32,987 $23,408 $62,558 $46,584
Gross profit 14,609 9,959 28,620 20,199
Gross profit as
a percentage of revenues 44% 43% 46% 43%
Income (loss) before
extraordinary loss 2,649 (383) 5,568 (776)
Net income (loss) $ 2,649 $ (383) $ 2,574 $ (776)
======= ======= ======= =======
Basic earnings (loss)
per share:
Income (loss) from
continuing operations $ 0.14 $ (0.03) $ 0.30 $ (0.06)
Net income (loss) $ 0.14 $ (0.03) $ 0.14 $ (0.06)
======= ======= ======= =======
Diluted earnings (loss)
per share:
Income (loss) from
continuing operations $ 0.14 $ (0.03) $ 0.29 $ (0.06)
Net income (loss) $ 0.14 $ (0.03) $ 0.13 $ (0.06)
======= ======= ======= =======
Wilson Greatbatch Technologies, Inc.
Condensed Consolidated Revenue Detail
(unaudited)
(in thousands)
Three Months Ended
------------------
June 29, June 30,
2001 2000
-------- --------
Medical Technology
Medical Batteries
Pacemaker $ 6,673 $ 5,175
Implantable Cardioverter Defibrillators 5,214 3,795
Carbon Monoflouride 93 135
Other (incl. Royalties) 99 918
------- -------
Total Medical Batteries 12,079 10,023
Capacitors 4,348 3,623
Components 9,505 7,254
------- -------
Total Medical Technology 25,932 20,900
Commercial Power Sources 7,055 2,508
------- -------
Total Revenue $32,987 $23,408
======= =======