CLARENCE, N.Y., Jan. 28, 2002 (PRIMEZONE) -- Wilson Greatbatch Technologies, Inc. ("WGT" or "Company") (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 revenue and net income for the quarter and year ended December 28, 2001.
Consolidated revenues for the fourth quarter increased 24% to $34.7 million, a fourth quarter record, from the same period last year. Quarterly medical technology sales rose 20% and commercial power sources revenues increased 45%. The Company reported net income for the quarter of $2.7 million, or $0.13 per diluted share, on 21.2 million weighted average shares outstanding, compared to net income of $1.1 million or $0.06 per diluted share in the prior year. The prior year quarter included an extraordinary loss on early extinguishment of debt of $.08 per diluted share.
Consolidated revenues for the year 2001 increased 39% to a record $135.6 million from 2000 revenues of $97.8 million. Income from continuing operations for 2001 was a record $11.6 million, or $0.58 per diluted share, compared to $1.0 million, or $0.07 per diluted share, for the prior year. Net income for 2001 was $8.6 million, or $0.43 per diluted shared, up from a loss of $0.5 million, or $0.04 per diluted share, in 2000.
"We are pleased with our fourth quarter performance with substantial growth in revenues and net income over last year, and financial results in line with expectations," said Edward F. Voboril, Chairman, President and Chief Executive Officer. "Overall, the year 2001, our first full year as a public company, was an outstanding one for WGT, marked by record sales and net income as a result of strong demand across our entire product line. In addition, we also benefited in the second half of the year from the Greatbatch-Sierra acquisition. Our 2001 financial performance and successful secondary offering have placed us in an excellent position to further expand our business."
Voboril added, "We see the major long-term market trends continuing to have a favorable effect on our business. These include the wider use of cardiac rhythm management devices, new indications for implantable medical devices, and rising demand for EMI protection for implantable medical devices. We are preparing to capitalize on these trends by making significant investments in our Company, including the expansion of our Research & Development facilities, and the formation of an emerging technologies business unit which will focus on new product applications. A formal Six-Sigma quality initiative is well under way and underscores our continuing commitment to quality leadership."
Voboril concluded, "We expect 2002 to be another year of continued growth and solid financial performance for Wilson Greatbatch with the strongest growth expected in the second half. While we expect softness in some markets for the first half of 2002, we remain well positioned for the future."
The Company also provided initial guidance on estimated revenues and earnings per share for the 2002 full-year. Based on the present business outlook and planned strategic investments, the Company estimates 2002 full-year revenues at approximately $155.0 million. The Company estimates 2002 full-year earnings to be between $0.75 and $0.80 per share on a diluted basis, including the anticipated effect of a change in the accounting standard regarding the amortization of goodwill and intangible assets.
The Company indicated that based upon initial analyses, the adoption of Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets" on January 1, 2002, is expected to generate no impairment of goodwill or other intangible assets.
Wilson Greatbatch Technologies, Inc., with operations in New York, Maryland, Massachusetts and Nevada, is 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. Additional information about Wilson Greatbatch Technologies, Inc. is available at http://www.greatbatch.com.
The management of Wilson Greatbatch Technologies, Inc. will discuss fourth quarter and fiscal 2001 financial results in a conference call scheduled for Monday, January 28, 2002, at 4:30 p.m. Eastern Standard Time. Investors will have the opportunity to listen to the Conference Call over the Internet at http://www.vcall.com/NASApp/Vcall/EventPage?ID-80261. To listen to the live call via the Internet, please go to the Website at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available two hours after the call and will remain available until the next conference call.
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, the following matters affecting the Company: 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 obligation to update forward-looking information in this press release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.
Wilson Greatbatch Technologies, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands except per share amounts)
Three Months Ended Year Ended
------------------- --------------------
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2001 2000 2001 2000
------- ------- -------- -------
Revenues $34,692 $27,949 $135,575 $97,790
Cost of goods sold 19,101 15,530 74,716 55,446
------- ------- -------- -------
Gross profit 15,591 12,419 60,859 42,344
Gross profit as a
percentage of revenues 45% 44% 45% 43%
Selling, general and
administrative expense 5,167 3,280 18,174 11,473
Research, development
and engineering costs, net 2,778 2,439 12,575 9,941
Intangible amortization 2,207 1,635 7,726 6,530
------- ------- -------- -------
5,439 5,065 22,384 14,400
Interest expense 989 1,293 3,588 12,958
Other expense (income) 128 (190) 266 (189)
------- ------- -------- -------
Income before income
taxes and
extraordinary loss 4,322 3,962 18,530 1,631
Income tax expense 1,611 1,306 6,939 611
------- ------- -------- -------
Income before
extraordinary loss 2,711 2,656 11,591 1,020
Extraordinary loss on
retirement of debt,
net of tax 0 (1,568) (2,994) (1,568)
------- ------- -------- -------
Net income (loss) $ 2,711 $ 1,088 $ 8,597 ($548)
======= ======= ======== =======
Basic earnings
(loss) per share:
Income from
continuing operations $ 0.13 $ 0.14 $ 0.59 $ 0.07
Extraordinary loss
on retirement of debt 0.00 (0.08) (0.15) (0.11)
------- ------- -------- -------
Net income (loss) $ 0.13 $ 0.06 $ 0.44 ($0.04)
======= ======= ======== =======
Diluted earnings
(loss) per share:
Income from
continuing operations $ 0.13 $ 0.14 $ 0.58 $ 0.07
Extraordinary loss
on retirement of debt 0.00 (0.08) (0.15) (0.11)
------- ------- -------- -------
Net income (loss) $ 0.13 $ 0.06 $ 0.43 ($0.04)
======= ======= ======== =======
Weighted average shares
outstanding
Basic 20,782 18,464 19,563 14,167
Diluted 21,194 18,839 19,945 14,434
Wilson Greatbatch Technologies, Inc.
Condensed Consolidated Revenue Detail
(unaudited)
(in thousands)
Three Months Ended Year Ended
----------------- -------------------
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2001 2000 2001 2000
-------- -------- -------- --------
Medical Technology
Medical Batteries
Pacemaker $ 4,578 $ 6,230 $ 22,923 $ 22,516
Implantable
Cardioverter
Defibrillators 6,637 3,922 22,215 14,171
Other 209 1,142 1,713 4,601
-------- -------- -------- --------
Total Medical
Batteries 11,424 11,294 46,851 41,288
Capacitors 6,063 2,904 20,290 12,611
Components 9,783 8,621 40,513 29,890
-------- -------- -------- --------
Total Medical
Technology 27,270 22,819 107,654 83,789
Commercial Power
Sources 7,422 5,130 27,921 14,001
-------- -------- -------- --------
Total Revenue $ 34,692 $ 27,949 $135,575 $ 97,790
======== ======== ======== ========
Wilson Greatbatch Technologies, Inc.
Condensed Consolidated Balance Sheet
(unaudited)
(In thousands)
December 28, December 29,
2001 2000
--------- ---------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 43,272 $ 16
Accounts receivable, net of allowance
for doubtful accounts of $447 and
$319 as of Dec. 28, 2001 and
Dec. 29, 2000, respectively 17,373 12,977
Inventories 29,026 13,643
Prepaid expenses and other assets 2,316 1,442
Deferred tax asset 2,888 1,863
--------- ---------
Total current assets 94,875 29,941
PROPERTY, PLANT AND EQUIPMENT, NET 44,149 36,625
INTANGIBLE ASSETS, NET 137,135 104,395
DEFERRED TAX ASSET 5,417 8,800
OTHER ASSETS 1,944 1,886
--------- ---------
TOTAL ASSETS $ 283,520 $ 181,647
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 6,553 $ 2,365
Accrued liabilities 13,721 9,480
Current maturities of long-term
obligations 13,005 3,017
--------- ---------
Total current liabilities 33,279 14,862
LONG-TERM OBLIGATIONS 61,397 30,951
--------- ---------
Total liabilities 94,676 45,813
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock 21 19
Capital in excess of par value 200,880 157,526
Retained deficit (8,935) (17,532)
--------- ---------
Subtotal 191,966 140,013
Less treasury stock, at cost (3,122) (4,179)
--------- ---------
Total stockholders' equity 188,844 135,834
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 283,520 $ 181,647
========= =========