CLARENCE, N.Y., April 29, 2002 (PRIMEZONE) -- Wilson Greatbatch Technologies, Inc. ("WGT" or "the 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 first-quarter revenue and net income for the period ended March 29, 2002.
Consolidated revenues for the first quarter 2002 were $36.3 million, an increase of 23% from $29.6 million in the same period last year. Quarterly medical technology sales rose 34% while commercial power sources revenues decreased 14%. The Company reported 2002 net income for the first quarter of $3.3 million, or $0.16 per diluted share, on 21.3 million diluted weighted average shares outstanding, compared to a net loss of $75 thousand in 2001. The prior year results included an extraordinary charge of $3.0 million, net of tax, for early extinguishment of debt and also $0.45 million in revenues and pre-tax income from royalties that were payable from Medtronic on patents that have subsequently expired.
The first quarter of 2002 includes the effect of Statement of Financial Accounting Standard No. 142, the new accounting standard that discontinues the amortization of certain intangible assets. If this standard had been in effect in 2001, net income in the first quarter of 2001 would have been $0.02 per diluted share.
"Although the first half of 2002 remains somewhat challenging as expected, we had a solid first-quarter performance. There was substantial growth in our implantable medical batteries and capacitors revenues over last year and financial results were in line with our expectations," said Edward F. Voboril, Chairman, President and Chief Executive Officer.
Voboril added: "We see major long-term market trends having a favorable effect on our business. These trends include the wider use of cardiac rhythm management devices, new indications for implantable medical devices, and rising demand for electromagnetic interference protection for implantable medical devices. We continue to invest in the almost completed expansion of our Research & Development facilities, the formation of our emerging technologies business unit focusing on new product applications, and our Six-Sigma quality initiative."
Voboril concluded: "Fiscal year 2002 will be another year of continued growth and solid financial performance for Wilson Greatbatch with our strongest growth expected in the second half. While we expect continued softness in some markets for the first half of 2002, we remain well positioned for the future in the market segments we serve."
The Company reaffirmed its previous 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 continues to estimate 2002 full-year revenues at approximately $155.0 million and 2002 full-year earnings in the range of $0.75 to $0.80 per share on a diluted basis. This includes the effect of the change in the accounting standard regarding the amortization of goodwill and certain intangible assets that will add approximately $0.13 earnings per share on an after tax, diluted basis.
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 first quarter 2002 financial results in a conference call scheduled for Monday, April 29, 2002, 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//EventPage.asp?ID-81128. 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 Balance Sheet
(Unaudited)
(In thousands)
March 29, December 28,
2002 2001
--------- ---------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 37,551 $ 43,272
Accounts receivable, net of allowance
for doubtful accounts 17,616 17,373
Inventories 31,602 29,026
Prepaid expenses and other assets 2,124 2,316
Deferred tax asset 2,888 2,888
--------- ---------
Total current assets 91,781 94,875
PROPERTY, PLANT AND EQUIPMENT, NET 46,874 44,149
INTANGIBLE ASSETS, NET 136,069 137,135
DEFERRED TAX ASSET 5,417 5,417
OTHER ASSETS 2,967 1,944
--------- ---------
TOTAL ASSETS $ 283,108 $ 283,520
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,427 $ 6,553
Accrued liabilities 12,073 13,721
Current maturities of long-term obligations 13,501 13,005
--------- ---------
Total current liabilities 30,001 33,279
LONG-TERM OBLIGATIONS 57,897 61,397
--------- ---------
Total liabilities 87,898 94,676
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock 21 21
Capital in excess of par value 202,567 200,880
Retained deficit (5,596) (8,935)
--------- ---------
Subtotal 196,992 191,966
Less treasury stock, at cost (1,782) (3,122)
--------- ---------
Total stockholders' equity 195,210 188,844
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 283,108 $ 283,520
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Wilson Greatbatch Technologies, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands except per share amounts)
Three Months Ended
-------------------
March 29, March 30,
2002 2001
-------- --------
Revenues $ 36,303 $ 29,571
Cost of goods sold 20,351 15,560
-------- --------
Gross profit 15,952 14,011
Gross profit as a percentage of revenues 44% 47%
Selling, general and administrative expense 5,657 3,780
Research, development and engineering costs, net 3,653 3,188
Intangible amortization 886 1,639
-------- --------
5,756 5,404
Interest expense 747 712
Other expense 26 59
-------- --------
Income before income taxes and
extraordinary loss 4,983 4,633
Income tax expense 1,644 1,714
-------- --------
Income before extraordinary loss 3,339 2,919
Extraordinary loss on
retirement of debt, net of tax 0 (2,994)
-------- --------
Net income (loss) $ 3,339 ($ 75)
======== ========
Basic earnings (loss) per share:
Income from continuing operations $ 0.16 $ 0.16
Extraordinary loss on retirement of debt 0.00 (0.16)
-------- --------
Net income (loss) $ 0.16 ($ 0.00)
======== ========
Diluted earnings (loss) per share:
Income from continuing operations $ 0.16 $ 0.15
Extraordinary loss on retirement of debt 0.00 (0.15)
-------- --------
Net income (loss) $ 0.16 ($ 0.00)
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Weighted average shares outstanding
Basic 20,872 18,713
Diluted 21,268 19,059
Wilson Greatbatch Technologies, Inc.
Condensed Consolidated Revenue Detail
(Unaudited)
(In thousands)
Three Months Ended
------------------
March 29, March 30,
2002 2001
------- -------
Medical Technology
Medical Batteries
Pacemaker $ 5,529 $ 5,821
Implantable Cardioverter Defibrillators 6,506 4,912
Other 1,002 509
------- -------
Total Medical Batteries 13,037 11,242
Capacitors 5,749 3,479
Components 11,527 7,861
------- -------
Total Medical Technology 30,313 22,582
Commercial Power Sources 5,990 6,989
------- -------
Total Revenue $36,303 $29,571
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