CLARENCE, N.Y., April 26, 2001 (PRIMEZONE) -- Wilson Greatbatch Technologies, Inc. (NYSE:GB), a leader in the development and manufacture of power sources and other critical components used in implantable medical devices and other technically demanding applications, today reported record revenues and income before extraordinary charges for its first fiscal quarter ended March 30, 2001.
Revenues for the first fiscal quarter were $29.6 million, an increase of 28 percent from the $23.2 million in revenues for the same period last year. Income, excluding extraordinary charges for early debt retirement, was $2.9 million, or $0.15 per diluted share, as compared to a loss of $0.4 million, or ($0.03) per diluted share, for the same period last year. The net loss and loss per share for the current quarter were $0.1 million and ($0.00) per diluted share.
Commenting on the second full quarter as a publicly held company, Edward F. Voboril, Chairman, President and Chief Executive Officer, said, "Our quarterly results exceeded projections and demonstrate superior performance as we build a public company with great shareholder value."
Medical revenues in the first quarter of 2001 amounted to $22.6 million as compared to the prior year's first quarter of $20.8 million. This advance was led by an increase in sales of batteries for implantable cardioverter defibrillators which grew at a more rapid rate than the growth in overall medical revenues. Commercial power sources revenues, enhanced by the company's acquisition of Battery Engineering, Inc. in August 2000, were $7.0 million versus $2.3 million for the same period last year.
Earnings before interest, taxes, depreciation and amortization (EBITDA), exclusive of extraordinary charges, were $8.6 million, an increase of 33 percent over the $6.4 million reported during the same period last year. This performance occurred in a period where the company invested heavily in research and development, increasing those costs 27 percent over the same period last year.
"This record-setting level of EBITDA is especially noteworthy. It is a direct result of strong growth in key markets, coupled with a continuing focus on operational improvements," commented Voboril.
Gross profit was $14.0 million for the quarter, a 37 percent improvement over the same period last year. Gross profit margin for the current quarter was 47 percent, as compared to 44 percent for the first quarter of 2000. Voboril continued, "This is a textbook example of leveraging greater profitability from increases in sales."
"Early in the first quarter of 2001, we completed the negotiations for our new credit facility, further reducing interest costs," said Voboril. Associated with this debt restructuring was an extraordinary charge of $3.0 million, net of taxes. The new credit facility, coupled with the use of $84.0 million in net proceeds from the September 2000 initial public offering to pay down debt, resulted in quarterly interest expense of $0.7 million, a savings from the $4.0 million incurred in the 2000 first quarter.
Voboril added, "These solid quarterly results reflect the long-term commitment we have made to reinvest in our business, secure strategic acquisitions and maintain our technological leadership in the businesses we serve."
The company also provided guidance on its business plan and performance objectives for 2001. Based on current business and economic conditions, the company continues to believe that it will meet or exceed the current range of estimates for revenues and profits being projected by research analysts for the remainder of the year, after giving consideration to the reduction of interest expense that has resulted from its refinancing activities.
Wilson Greatbatch Technologies, Inc., with operations in New York, Maryland and Massachusetts, 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
---------------------
Mar. 30, Mar. 31,
2001 2000
-------- --------
Revenues $ 29,571 $ 23,176
Cost of goods sold 15,560 12,936
-------- --------
Gross profit 14,011 10,240
Gross profit as a percentage of revenues 47% 44%
Selling, general and administrative expense 3,780 2,624
Research, development and
engineering costs, net 3,188 2,520
Intangible amortization 1,639 1,627
-------- --------
5,404 3,469
Interest expense 712 3,985
Other expense 59 61
-------- --------
Income (loss) before income taxes
and extraordinary loss 4,633 (577)
Income tax expense (benefit) 1,714 (184)
-------- --------
Income (loss) before extraordinary loss 2,919 (393)
Extraordinary loss on retirement
of debt, net of tax (2,994) 0
-------- --------
Net loss ($ 75) ($ 393)
======== ========
Basic earnings (loss) per share:
Income (loss) from continuing operations $ 0.16 ($ 0.03)
Extraordinary loss on retirement of debt (0.16) (0.00)
-------- --------
Net loss ($ 0.00) ($ 0.03)
======== ========
Diluted earnings (loss) per share:
Income (loss) from continuing operations $ 0.15 ($ 0.03)
Extraordinary loss on retirement of debt (0.15) (0.00)
-------- --------
Net loss ($ 0.00) ($ 0.03)
======== ========
Weighted average shares outstanding
Basic 18,713 12,616
Diluted 19,059 12,616
WILSON GREATBATCH TECHNOLOGIES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
March 30, December 29,
2001 2000
--------- ---------
ASSETS (unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 253 $ 16
Accounts receivable, net of allowance
for doubtful accounts of $364 and
$319 as of March 30, 2001 and
December 29, 2000, respectively 15,377 12,977
Inventories 15,948 13,643
Prepaid expenses and other assets 930 819
Refundable income taxes 279 623
Deferred tax asset 1,863 1,863
--------- ---------
Total current assets 34,650 29,941
PROPERTY, PLANT AND EQUIPMENT, NET 36,640 36,625
INTANGIBLE ASSETS, NET 102,347 104,395
DEFERRED TAX ASSET 8,800 8,800
OTHER ASSETS 1,970 1,886
--------- ---------
TOTAL ASSETS $ 184,407 $ 181,647
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term obligations $ 15 $ 3,017
Accounts payable 3,277 2,365
Accrued liabilities 9,429 9,480
--------- ---------
Total current liabilities 12,721 14,862
LONG-TERM OBLIGATIONS 35,916 30,951
--------- ---------
Total liabilities 48,637 45,813
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock 19 19
Capital in excess of par value 157,537 157,526
Retained deficit (17,607) (17,532)
--------- ---------
Subtotal 139,949 140,013
Less treasury stock, at cost (4,179) (4,179)
--------- ---------
Total stockholders' equity 135,770 135,834
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 184,407 $ 181,647
========= =========
See notes to consolidated financial statements.
Wilson Greatbatch Technologies, Inc.
Condensed Consolidated Statements of Operations Data
(unaudited)
(in thousands except per share amounts)
Three Months Ended
----------------------
Mar. 30, Mar. 31,
2001 2000
--------- ---------
Revenues $29,571 $ 23,176
Gross profit 14,011 10,240
Gross profit as a percentage of revenues 47% 44%
Income (loss) before extraordinary item 2,919 (393)
Net loss ($ 75) ($ 393)
======= =======
Basic earnings (loss) per share:
Income (loss) before extraordinary item $ 0.16 ($ 0.03)
Net loss ($ 0.00) ($ 0.03)
======= =======
Diluted earnings (loss) per share:
Income (loss) before extraordinary item $ 0.15 ($ 0.03)
Net loss ($ 0.00) ($ 0.03)
======= =======