CLARENCE, N.Y., Oct. 25, 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 third quarter and first nine months of 2001.
Consolidated revenues for the third quarter ended September 28, 2001, increased 65% to $38.3 million from $23.3 million for the same period last year. For the 2001 third quarter, medical technology sales rose 66% and commercial power sources revenues increased 60%. Excluding the effect of the June 2001 acquisition of Greatbatch-Sierra, Inc. ("Greatbatch-Sierra") and the August 2000 acquisition of Battery Engineering, Inc. ("BEI"), consolidated revenues increased 40% in the 2001 third quarter over the similar period in 2000. Consolidated nine-month 2001 revenues increased 44% to $100.9 million from nine-month 2000 revenues of $69.8 million.
For the 2001 third quarter, Wilson Greatbatch Technologies reported net income, which is a record for any quarter, of $3.3 million or $0.16 per diluted share on 20.4 million weighted average shares outstanding, compared to a 2000 third quarter net loss of ($0.9) million or ($0.07) per diluted share on 13.0 million weighted average shares outstanding. For the 2001 third quarter, earnings before interest, taxes, depreciation, and amortization increased by 81% to $10.3 million from $5.7 million in the third quarter of 2000. Income from continuing operations for the first nine months of 2001 was $8.9 million, excluding a 2001 first quarter extraordinary loss of $3.0 million, net of tax, on the retirement of debt, compared with a loss of ($1.6) million for the comparable period of 2000. Nine-month 2001 diluted earnings per share, excluding the first quarter 2001 extraordinary loss on the retirement of debt, were $0.45.
"The 2001 third quarter was a very strong one for Wilson Greatbatch Technologies with record revenues and earnings and our financial results again exceeding expectations," said Edward F. Voboril, Chairman, President and Chief Executive Officer. "Top line growth was driven by increased customer demand in all the markets we serve and by the BEI and Greatbatch-Sierra acquisitions. This quarter's bottom line benefited from a 65% increase in consolidated sales and a $2.7 million decrease in interest expense from last year. Over the past several quarters we have continued to strengthen Wilson Greatbatch Technologies' solid financial performance through debt reduction, strong internal growth and two key acquisitions that have broadened our product line and significantly expanded our platform for future growth."
Voboril continued, "Our growth in the medical technology segment is coming from wider use of cardiac rhythm management devices and continued market acceptance of our capacitor product for defibrillators. We will see continued growth in these markets, as well as potential future growth from further advances in medical treatments using implantable devices such as the new implantable artificial heart which uses external and internal power sources developed and manufactured by Wilson Greatbatch Technologies. Our commercial power sources segment has benefited from the BEI acquisition and a recovery in the oil and gas exploration market."
Voboril also commented on the recently-completed Greatbatch-Sierra acquisition, "The integration of the Greatbatch-Sierra acquisition into our medical technology segment's components group is well underway and we continue to see its business having excellent growth potential. As a leading developer and manufacturer of electromagnetic interference filters ("EMI") and capacitors for implantable medical devices, Greatbatch-Sierra is well positioned to benefit from greater demand for EMI protection, as it is currently used in only about 25% of all implantable medical devices. We anticipate that the majority of implantable medical devices will have this feature in the foreseeable future."
During the 2001 third quarter, the Company completed an additional stock offering of 7.8 million shares comprised of 5.8 million shares sold by existing shareholders and 2.0 million newly issued primary shares. The Company received $43.6 million in net proceeds to be used for general corporate purposes including acquisitions and debt reduction.
On October 2, 2001, the Company announced it would build a new dedicated 12,300 square foot research and development center at its Clarence headquarters that is scheduled for completion in 2002. Voboril commented on the Company's decision, "Our ability to use technology to develop enhanced power sources has been instrumental to our successful growth. By expanding our R&D capabilities and capacity, we are better positioned to develop the power sources for a wide range of new medical devices that are expected to be introduced during the next several years. These potential new applications include devices that can be used to treat congestive heart failure, implantable drug injection devices and neurostimulators that could be used to treat depression."
Voboril concluded, "2001 is proving to be an excellent year for Wilson Greatbatch Technologies, and we have thus far been able to weather this year's difficult economic climate without a major negative impact on our business. Overall, we remain very optimistic about Wilson Greatbatch Technologies' future prospects based on strong demand in the markets we serve and the strength and value of our proprietary technology and intellectual property portfolio. We remain comfortable with the current analysts' estimates of revenues and earnings per share for our fiscal year 2001."
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 third quarter fiscal 2001 financial results in a conference call scheduled for Thursday, October 25, 2001 at 4:30 p.m. Eastern Daylight Time. Investors will have the opportunity to listen to the Conference Call over the Internet at http://www.vcall.com/NASApp/VCall/EventPage?ID=78586. 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, 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 Nine Months Ended
-------------------- --------------------
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
2001 2000 2001 2000
-------- -------- -------- --------
Revenues $ 38,325 $ 23,256 $100,883 $ 69,840
Gross profit 16,648 9,726 45,268 29,925
Gross profit
as a percentage
of revenues 43% 42% 45% 43%
Income (loss)
before extra-
ordinary loss 3,312 (860) 8,880 (1,636)
Net income (loss) $ 3,312 ($ 860) $ 5,886 ($ 1,636)
======== ======== ======== ========
Basic earnings
(loss) per share:
Income (loss)
from continuing
operations $ 0.17 ($ 0.07) $ 0.46 ($ 0.13)
Net income
(loss) $ 0.17 ($ 0.07) $ 0.31 ($ 0.13)
======== ======== ======== ========
Diluted earnings
(loss) per share:
Income (loss)
from continuing
operations $ 0.16 ($ 0.07) $ 0.45 ($ 0.13)
Net income
(loss) $ 0.16 ($ 0.07) $ 0.30 ($ 0.13)
======== ======== ======== ========
Weighted average
shares outstanding
Basic 20,044 12,971 19,157 12,705
Diluted 20,426 12,971 19,529 12,705
Wilson Greatbatch Technologies, Inc.
Condensed Consolidated Revenue Detail
(unaudited)
(in thousands)
Three Months Ended
------------------------------
Sept. 28, Sept. 29,
2001 2000
------------- -------------
Medical Technology
Medical Batteries
Pacemaker $ 5,851 $ 4,883
Implantable Cardioverter
Defibrillators 5,453 3,658
Other 802 914
------- -------
Total Medical
Batteries 12,106 9,455
Capacitors 6,400 2,801
Components 13,364 6,968
------- -------
Total Medical
Technology 31,870 19,224
Commercial Power Sources 6,455 4,032
------- -------
Total Revenue $38,325 $23,256
======= =======
Wilson Greatbatch Technologies, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands except per share amounts)
Three Months Ended Nine Months Ended
---------------------- ---------------------
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
2001 2000 2001 2000
-------- --------- --------- --------
Revenues $ 38,325 $ 23,256 $ 100,883 $ 69,840
Cost of goods
sold 21,677 13,530 55,615 39,915
-------- --------- --------- --------
Gross profit 16,648 9,726 45,268 29,925
Gross profit
as a percentage
of revenues 43% 42% 45% 43%
Selling,
general and
administrative
expense 4,695 3,061 13,007 8,193
Research,
development
and engineering
costs, net 3,237 2,456 9,797 7,502
Intangible
amortization 2,169 1,628 5,519 4,895
-------- --------- --------- --------
6,547 2,581 16,945 9,335
Interest
expense 1,159 3,879 2,599 11,666
Other expense
(income) 52 (70) 138 1
-------- --------- --------- --------
Income (loss)
before income
taxes and
extraordinary
loss 5,336 (1,228) 14,208 (2,332)
Income tax expense
(benefit) 2,024 (368) 5,328 (696)
-------- --------- --------- --------
Income (loss)
before extraordinary
loss 3,312 (860) 8,880 (1,636)
Extraordinary loss
on retirement of
debt, net of tax 0 0 (2,994) 0
-------- --------- --------- --------
Net income (loss) $ 3,312 ($ 860) $ 5,886 ($ 1,636)
======== ========= ========= ========
Basic earnings
(loss) per share:
Income (loss)
from
continuing
operations $ 0.17 ($ 0.07) $ 0.46 ($ 0.13)
Extraordinary
loss on
retirement
of debt 0.00 0.00 (0.15) 0.00
-------- --------- --------- --------
Net income
(loss) $ 0.17 ($ 0.07) $ 0.31 ($ 0.13)
======== ========= ========= ========
Diluted earnings
(loss) per share:
Income (loss)
from
continuing
operations $ 0.16 ($ 0.07) $ 0.45 ($ 0.13)
Extraordinary
loss on
retirement
of debt 0.00 0.00 (0.15) 0.00
-------- --------- --------- --------
Net income
(loss) $ 0.16 ($ 0.07) $ 0.30 ($ 0.13)
======== ========= ========= ========
Weighted average
shares outstanding
Basic 20,044 12,971 19,157 12,705
Diluted 20,426 12,971 19,529 12,705
Wilson Greatbatch Technologies, Inc.
Condensed Consolidated Balance Sheet
(In thousands)
Sept. 28, Dec. 29,
2001 2000
------------ ------------
ASSETS (unaudited)
CURRENT ASSETS:
Cash and cash
equivalents $ 43,641 $ 16
Accounts receivable,
net of allowance
for doubtful accounts
of $421 and $319
as of Sept. 28, 2001
and Dec. 29, 2000,
respectively 21,658 12,977
Inventories 25,740 13,643
Prepaid expenses and
other assets 2,947 819
Refundable income taxes 279 623
Deferred tax asset 1,863 1,863
--------- ---------
Total current assets 96,128 29,941
PROPERTY, PLANT AND
EQUIPMENT, NET 40,990 36,625
INTANGIBLE ASSETS, NET 139,489 104,395
DEFERRED TAX ASSET 8,800 8,800
OTHER ASSETS 1,970 1,886
--------- ---------
TOTAL ASSETS $ 287,377 $ 181,647
========= =========
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 5,076 $ 2,365
Accrued liabilities 15,345 9,480
Current maturities
of long-term obligations 12,007 3,017
--------- ---------
Total current
liabilities 32,428 14,862
LONG-TERM OBLIGATIONS 68,416 30,951
--------- ---------
Total liabilities 100,844 45,813
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock 21 19
Capital in excess
of par value 201,280 157,526
Retained deficit (11,646) (17,532)
--------- ---------
Subtotal 189,655 140,013
Less treasury stock,
at cost (3,122) (4,179)
--------- ---------
Total stockholders' equity 186,533 135,834
--------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 287,377 $ 181,647
========= =========