ALARIS Medical Systems Reports 2003 Q4, Full-Year Results
Mar 5, 2004
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ALARIS Medical Systems, Inc. (San Diego, CA, U.S.), developer of products for delivery of intravenous (IV) medications, has reported that sales for the year ended Dec. 31, 2003 increased 16 percent to U.S. $533.9 million, compared with $460.3 million for 2002. Income from operations increased 38 percent to $98.8 million, compared with $71.7 million for the year ended Dec. 31, 2002.
In addition, the company reported that fourth quarter sales increased 15 percent to $154.5 million, compared with $134.4 million for the fourth quarter of 2002. For the quarter, Alaris reported net income of $14.9 million, or $0.20 per share, compared with net income of $4.2 million, or $0.07 per share, for the fourth quarter of 2002.
The company's mid-year 2003 recapitalization resulted in $67.7 million of charges ($41.4 million net of tax) in the first half of the year. As a result, the company reported a net loss of $7.5 million, or $0.11 per share, for 2003.
Excluding the recapitalization expenses, earnings per share would have been $0.48 for the year ended Dec. 31, 2003, compared with $0.13 per share for the previous year. As has been previously reported, the recapitalization lowered the company's total debt by more than 20 percent, lowered its average annual interest rate from more than 11 percent to less than 6 percent, and lowered its interest expense from $57 million to $24 million per year.
On a pro forma basis (if the recapitalization occurred on Jan. 1, 2003), and excluding the recapitalization expenses, net income for the year ended Dec. 31, 2003 would have been $43.8 million and net income per common share, on a fully diluted basis, would have been $0.58.
"The final results of our strong finish for 2003 were somewhat better than we indicated in our press release on January 14, 2004," David L. Schlotterbeck, president and CEO, said in a written statement. "I am pleased that our positive momentum is continuing."
For the year ended Dec. 31, 2003, sales were $533.9 million, an increase of $73.5 million, or 16 percent, from the prior year. If currency exchange rates for the year ended Dec. 31, 2003 had prevailed during 2002, sales would have been $482.8 million for the year ended Dec. 31, 2002. Thus, the favorable effect of currency changes on revenues in 2003 was $22.5 million.
Higher volumes of both drug infusion instruments and disposable administration sets were the primary factors leading to the increase in North America sales of $46.8 million, or 15 percent, from the prior year.
International sales for the year ended Dec. 31, 2003 increased $26.7 million, or 19 percent, compared with the prior year. This increase was due to strong growth in dedicated disposable administration sets, as well as higher volumes of large volume pumps, SmartSite(R) Needle-Free Systems, and services compared with the same period in the prior year, according to Alaris.
If currency exchange rates for the year ended Dec. 31, 2003 had prevailed during 2002, international sales would have been $163.5 million for the year ended Dec. 31, 2002. Thus, the favorable effect of currency changes on international sales for the year ended Dec. 31, 2003 was $20.9 million.
Gross profit increased $57.7 million, or 25 percent, for the year ended Dec. 31, 2003, compared with 2002. The gross margin percentage increased to 53.4 percent for 2003, from 49.4 percent for 2002. If currency exchange rates for the year ended Dec. 31, 2003 had prevailed during 2002, the gross-margin percentage for the year ended Dec. 31, 2002 would have been 50.3 percent. The company attributes its increased gross margin primarily to sales growth and mix, which included higher-margin sales than in the prior year.
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