Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Massachusetts
(State or other jurisdiction
of incorporation or organization)
|
|
04-2882273
(I.R.S. Employer Identification No.)
|
Yes
þ
|
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No
o
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Yes
þ
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No
o
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Yes
o
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No
þ
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PAGE
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|
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|
|
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|
|
|
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Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||||
Net revenues
|
$
|
241,581
|
|
|
$
|
225,377
|
|
|
$
|
470,928
|
|
|
$
|
436,328
|
|
Cost of goods sold
|
129,674
|
|
|
120,815
|
|
|
275,777
|
|
|
240,101
|
|
||||
Gross profit
|
111,907
|
|
|
104,562
|
|
|
195,151
|
|
|
196,227
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Research and development
|
8,583
|
|
|
7,521
|
|
|
17,989
|
|
|
15,714
|
|
||||
Selling, general and administrative
|
77,248
|
|
|
72,783
|
|
|
145,793
|
|
|
139,644
|
|
||||
Total operating expenses
|
85,831
|
|
|
80,304
|
|
|
163,782
|
|
|
155,358
|
|
||||
Operating income
|
26,076
|
|
|
24,258
|
|
|
31,369
|
|
|
40,869
|
|
||||
Gain on divestiture
|
—
|
|
|
—
|
|
|
—
|
|
|
8,000
|
|
||||
Interest and other expense, net
|
(3,039
|
)
|
|
(1,397
|
)
|
|
(5,017
|
)
|
|
(2,756
|
)
|
||||
Income before provision for income taxes
|
23,037
|
|
|
22,861
|
|
|
26,352
|
|
|
46,113
|
|
||||
Provision for income taxes
|
4,311
|
|
|
2,759
|
|
|
10,445
|
|
|
5,874
|
|
||||
Net income
|
$
|
18,726
|
|
|
$
|
20,102
|
|
|
$
|
15,907
|
|
|
$
|
40,239
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - basic
|
$
|
0.36
|
|
|
$
|
0.38
|
|
|
$
|
0.31
|
|
|
$
|
0.77
|
|
Net income per share - diluted
|
$
|
0.35
|
|
|
$
|
0.38
|
|
|
$
|
0.30
|
|
|
$
|
0.76
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding
|
|
|
|
|
|
|
|
||||||||
Basic
|
51,605
|
|
|
52,619
|
|
|
51,862
|
|
|
52,531
|
|
||||
Diluted
|
53,138
|
|
|
52,981
|
|
|
53,365
|
|
|
52,896
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
$
|
18,403
|
|
|
$
|
21,937
|
|
|
$
|
10,865
|
|
|
$
|
45,703
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||||
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
199,763
|
|
|
$
|
180,169
|
|
Accounts receivable, less allowance of $3,253 at September 29, 2018 and $2,111 at March 31, 2018
|
161,590
|
|
|
151,226
|
|
||
Inventories, net
|
163,584
|
|
|
160,799
|
|
||
Prepaid expenses and other current assets
|
27,868
|
|
|
28,983
|
|
||
Total current assets
|
552,805
|
|
|
521,177
|
|
||
Property, plant and equipment, net
|
344,560
|
|
|
332,156
|
|
||
Intangible assets, less accumulated amortization of $264,742 at September 29, 2018 and $249,278 at March 31, 2018
|
141,483
|
|
|
156,589
|
|
||
Goodwill
|
210,844
|
|
|
211,395
|
|
||
Deferred tax asset
|
3,765
|
|
|
3,961
|
|
||
Other long-term assets
|
12,254
|
|
|
12,061
|
|
||
Total assets
|
$
|
1,265,711
|
|
|
$
|
1,237,339
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Notes payable and current maturities of long-term debt
|
$
|
12,664
|
|
|
$
|
194,259
|
|
Accounts payable
|
57,857
|
|
|
55,265
|
|
||
Accrued payroll and related costs
|
49,132
|
|
|
69,519
|
|
||
Other liabilities
|
69,514
|
|
|
65,660
|
|
||
Total current liabilities
|
189,167
|
|
|
384,703
|
|
||
Long-term debt, net of current maturities
|
330,988
|
|
|
59,423
|
|
||
Deferred tax liability
|
13,235
|
|
|
6,526
|
|
||
Other long-term liabilities
|
30,983
|
|
|
34,258
|
|
||
Total stockholders’ equity
|
|
|
|
||||
Common stock, $0.01 par value; Authorized — 150,000,000 shares; Issued and outstanding — 51,624,719 shares at September 29, 2018 and 52,342,965 shares at March 31, 2018
|
516
|
|
|
523
|
|
||
Additional paid-in capital
|
530,480
|
|
|
503,955
|
|
||
Retained earnings
|
194,375
|
|
|
266,942
|
|
||
Accumulated other comprehensive loss
|
(24,033
|
)
|
|
(18,991
|
)
|
||
Total stockholders’ equity
|
701,338
|
|
|
752,429
|
|
||
Total liabilities and stockholders’ equity
|
$
|
1,265,711
|
|
|
$
|
1,237,339
|
|
|
Six Months Ended
|
||||||
|
September 29,
2018 |
|
September 30,
2017 |
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net income
|
$
|
15,907
|
|
|
$
|
40,239
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Non-cash items:
|
|
|
|
||||
Depreciation and amortization
|
51,692
|
|
|
43,986
|
|
||
Impairment of assets
|
21,170
|
|
|
—
|
|
||
Stock-based compensation expense
|
7,961
|
|
|
4,199
|
|
||
Gain on divestiture
|
—
|
|
|
(8,000
|
)
|
||
Provision for losses on accounts receivable and inventory
|
549
|
|
|
688
|
|
||
Other non-cash operating activities
|
1,277
|
|
|
312
|
|
||
Change in operating assets and liabilities:
|
|
|
|
||||
Change in accounts receivable
|
(13,326
|
)
|
|
10,739
|
|
||
Change in inventories
|
(3,912
|
)
|
|
7,284
|
|
||
Change in prepaid income taxes
|
(349
|
)
|
|
776
|
|
||
Change in other assets and other liabilities
|
4,095
|
|
|
3,920
|
|
||
Change in accounts payable and accrued expenses
|
(4,585
|
)
|
|
(6,815
|
)
|
||
Net cash provided by operating activities
|
80,479
|
|
|
97,328
|
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Capital expenditures
|
(76,002
|
)
|
|
(29,125
|
)
|
||
Proceeds from divestiture
|
—
|
|
|
9,000
|
|
||
Proceeds from sale of property, plant and equipment
|
656
|
|
|
1,346
|
|
||
Net cash used in investing activities
|
(75,346
|
)
|
|
(18,779
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Term loan borrowings
|
347,780
|
|
|
—
|
|
||
Repayment of term loan borrowings
|
(258,103
|
)
|
|
(28,455
|
)
|
||
Proceeds from employee stock purchase plan
|
1,780
|
|
|
1,622
|
|
||
Proceeds from exercise of stock options
|
7,127
|
|
|
10,120
|
|
||
Share repurchases
|
(80,000
|
)
|
|
—
|
|
||
Other financing activities
|
—
|
|
|
417
|
|
||
Net cash provided by (used in) financing activities
|
18,584
|
|
|
(16,296
|
)
|
||
Effect of exchange rates on cash and cash equivalents
|
(4,123
|
)
|
|
1,805
|
|
||
Net Change in Cash and Cash Equivalents
|
19,594
|
|
|
64,058
|
|
||
Cash and Cash Equivalents at Beginning of Period
|
180,169
|
|
|
139,564
|
|
||
Cash and Cash Equivalents at End of Period
|
$
|
199,763
|
|
|
$
|
203,622
|
|
Supplemental Disclosures of Cash Flow Information:
|
|
|
|
||||
Interest paid
|
$
|
5,833
|
|
|
$
|
3,768
|
|
Income taxes paid
|
$
|
5,053
|
|
|
$
|
5,449
|
|
Transfers from inventory to fixed assets for placement of Haemonetics equipment
|
$
|
12,099
|
|
|
$
|
3,965
|
|
(In thousands)
|
2018 Program
|
|
2017 Program
|
|
Total
|
||||||
Balance at March 31, 2018
|
$
|
27,129
|
|
|
$
|
1,406
|
|
|
$
|
28,535
|
|
Costs incurred, net of reversals
|
(382
|
)
|
|
57
|
|
|
(325
|
)
|
|||
Payments
|
(12,159
|
)
|
|
(984
|
)
|
|
(13,143
|
)
|
|||
Non-cash adjustments
|
(96
|
)
|
|
—
|
|
|
(96
|
)
|
|||
Balance at September 29, 2018
|
$
|
14,492
|
|
|
$
|
479
|
|
|
$
|
14,971
|
|
Restructuring costs
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In thousands)
|
September 29, 2018
|
|
September 30, 2017
|
|
September 29, 2018
|
|
September 30, 2017
|
||||||||
Japan
|
$
|
91
|
|
|
$
|
2
|
|
|
$
|
102
|
|
|
$
|
111
|
|
EMEA
|
(5
|
)
|
|
15
|
|
|
119
|
|
|
25
|
|
||||
North America Plasma
|
—
|
|
|
—
|
|
|
(40
|
)
|
|
—
|
|
||||
All Other
|
(119
|
)
|
|
134
|
|
|
(506
|
)
|
|
1,071
|
|
||||
Total
|
$
|
(33
|
)
|
|
$
|
151
|
|
|
$
|
(325
|
)
|
|
$
|
1,207
|
|
|
|
|
|
|
|
|
|
||||||||
Turnaround costs
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In thousands)
|
September 29, 2018
|
|
September 30, 2017
|
|
September 29, 2018
|
|
September 30, 2017
|
||||||||
Japan
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
EMEA
|
—
|
|
|
20
|
|
|
28
|
|
|
26
|
|
||||
North America Plasma
|
31
|
|
|
197
|
|
|
41
|
|
|
349
|
|
||||
All Other
|
2,120
|
|
|
5,419
|
|
|
5,723
|
|
|
6,688
|
|
||||
Total
|
$
|
2,151
|
|
|
$
|
5,636
|
|
|
$
|
5,792
|
|
|
$
|
7,063
|
|
|
|
|
|
|
|
|
|
||||||||
Total restructuring and turnaround costs
|
$
|
2,118
|
|
|
$
|
5,787
|
|
|
$
|
5,467
|
|
|
$
|
8,270
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In thousands, except per share amounts)
|
September 29,
2018 |
|
September 30,
2017 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||||
Basic EPS
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
18,726
|
|
|
$
|
20,102
|
|
|
$
|
15,907
|
|
|
$
|
40,239
|
|
Weighted average shares
|
51,605
|
|
|
52,619
|
|
|
51,862
|
|
|
52,531
|
|
||||
Basic income per share
|
$
|
0.36
|
|
|
$
|
0.38
|
|
|
$
|
0.31
|
|
|
$
|
0.77
|
|
Diluted EPS
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
18,726
|
|
|
$
|
20,102
|
|
|
$
|
15,907
|
|
|
$
|
40,239
|
|
Basic weighted average shares
|
51,605
|
|
|
52,619
|
|
|
51,862
|
|
|
52,531
|
|
||||
Net effect of common stock equivalents
|
1,533
|
|
|
362
|
|
|
1,503
|
|
|
365
|
|
||||
Diluted weighted average shares
|
53,138
|
|
|
52,981
|
|
|
53,365
|
|
|
52,896
|
|
||||
Diluted income per share
|
$
|
0.35
|
|
|
$
|
0.38
|
|
|
$
|
0.30
|
|
|
$
|
0.76
|
|
(In thousands)
|
|
September 29,
2018 |
|
March 31,
2018
(1)
|
||||
Raw materials
|
|
$
|
51,028
|
|
|
$
|
52,997
|
|
Work-in-process
|
|
13,075
|
|
|
10,774
|
|
||
Finished goods
|
|
99,481
|
|
|
97,028
|
|
||
Total inventories
|
|
$
|
163,584
|
|
|
$
|
160,799
|
|
|
|
Six Months Ended
|
||||||
(In thousands)
|
|
September 29,
2018 |
|
September 30,
2017 |
||||
Warranty accrual as of the beginning of the period
|
|
$
|
316
|
|
|
$
|
176
|
|
Warranty provision
|
|
333
|
|
|
796
|
|
||
Warranty spending
|
|
(392
|
)
|
|
(537
|
)
|
||
Warranty accrual as of the end of the period
|
|
$
|
257
|
|
|
$
|
435
|
|
(In thousands)
|
|
Amount of Gain
Recognized in Accumulated Other Comprehensive Loss |
|
Amount of (Loss) Reclassified
from Accumulated Other Comprehensive Loss into Earnings |
|
Location in
Consolidated Statements of Income and Comprehensive Income |
|
Amount of Gain Excluded from
Effectiveness
Testing
|
|
Location in
Consolidated Statements of Income and Comprehensive Income |
||||||
Designated foreign currency hedge contracts, net of tax
|
|
$
|
2,452
|
|
|
$
|
(730
|
)
|
|
Net revenues, COGS and SG&A
|
|
$
|
938
|
|
|
Interest and other expense, net
|
Non-designated foreign currency hedge contracts
|
|
—
|
|
|
—
|
|
|
|
|
$
|
1,176
|
|
|
Interest and other expense, net
|
||
Designated interest rate swaps, net of tax
|
|
$
|
306
|
|
|
$
|
—
|
|
|
Interest and other expense, net
|
|
$
|
—
|
|
|
|
(In thousands)
|
|
Location in
Balance Sheet |
|
As of
|
|
As of
|
||||
|
|
September 29, 2018
|
|
March 31, 2018
|
||||||
Derivative Assets:
|
|
|
|
|
|
|
||||
Designated foreign currency hedge contracts
|
|
Other current assets
|
|
$
|
2,407
|
|
|
$
|
780
|
|
Non-designated foreign currency hedge contracts
|
|
Other current assets
|
|
213
|
|
|
324
|
|
||
Designated interest rate swaps
|
|
Other current assets
|
|
306
|
|
|
—
|
|
||
|
|
|
|
$
|
2,926
|
|
|
$
|
1,104
|
|
Derivative Liabilities:
|
|
|
|
|
|
|
||||
Designated foreign currency hedge contracts
|
|
Other current liabilities
|
|
$
|
133
|
|
|
$
|
1,445
|
|
Non-designated foreign currency hedge contracts
|
|
Other current liabilities
|
|
84
|
|
|
138
|
|
||
|
|
|
|
$
|
217
|
|
|
$
|
1,583
|
|
•
|
Level 1 — Inputs to the valuation methodology are quoted market prices for identical assets or liabilities.
|
•
|
Level 2 — Inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets or liabilities and market-corroborated inputs.
|
•
|
Level 3 — Inputs to the valuation methodology are unobservable inputs based on management’s best estimate of inputs market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk.
|
|
|
As of September 29, 2018
|
||||||||||
(In thousands)
|
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Money market funds
|
|
$
|
70,961
|
|
|
$
|
—
|
|
|
$
|
70,961
|
|
Designated foreign currency hedge contracts
|
|
—
|
|
|
2,407
|
|
|
2,407
|
|
|||
Non-designated foreign currency hedge contracts
|
|
—
|
|
|
213
|
|
|
213
|
|
|||
Designated interest rate swaps
|
|
—
|
|
|
306
|
|
|
306
|
|
|||
|
|
$
|
70,961
|
|
|
$
|
2,926
|
|
|
$
|
73,887
|
|
Liabilities
|
|
|
|
|
|
|
||||||
Designated foreign currency hedge contracts
|
|
$
|
—
|
|
|
$
|
133
|
|
|
$
|
133
|
|
Non-designated foreign currency hedge contracts
|
|
—
|
|
|
84
|
|
|
84
|
|
|||
|
|
$
|
—
|
|
|
$
|
217
|
|
|
$
|
217
|
|
|
|
|
|
|
|
|
||||||
|
|
As of March 31, 2018
|
||||||||||
|
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Money market funds
|
|
$
|
75,450
|
|
|
$
|
—
|
|
|
$
|
75,450
|
|
Designated foreign currency hedge contracts
|
|
—
|
|
|
780
|
|
|
780
|
|
|||
Non-designated foreign currency hedge contracts
|
|
—
|
|
|
324
|
|
|
324
|
|
|||
|
|
$
|
75,450
|
|
|
$
|
1,104
|
|
|
$
|
76,554
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|||
Designated foreign currency hedge contracts
|
|
$
|
—
|
|
|
$
|
1,445
|
|
|
$
|
1,445
|
|
Non-designated foreign currency hedge contracts
|
|
—
|
|
|
138
|
|
|
138
|
|
|||
|
|
$
|
—
|
|
|
$
|
1,583
|
|
|
$
|
1,583
|
|
•
|
Japan
|
•
|
EMEA
|
•
|
North America Plasma
|
•
|
All Other
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In thousands)
|
September 29,
2018 |
|
September 30,
2017 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||||
Net revenues
|
|
|
|
|
|
|
|
||||||||
Japan
|
$
|
17,343
|
|
|
$
|
17,164
|
|
|
$
|
33,947
|
|
|
$
|
32,396
|
|
EMEA
|
40,051
|
|
|
41,428
|
|
|
81,339
|
|
|
81,867
|
|
||||
North America Plasma
|
99,655
|
|
|
85,051
|
|
|
191,229
|
|
|
162,587
|
|
||||
All Other
|
85,482
|
|
|
82,551
|
|
|
165,294
|
|
|
163,294
|
|
||||
Net revenues before foreign exchange impact
|
242,531
|
|
|
226,194
|
|
|
471,809
|
|
|
440,144
|
|
||||
Effect of exchange rates
|
(950
|
)
|
|
(817
|
)
|
|
(881
|
)
|
|
(3,816
|
)
|
||||
Net revenues
|
$
|
241,581
|
|
|
$
|
225,377
|
|
|
$
|
470,928
|
|
|
$
|
436,328
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In thousands)
|
September 29,
2018 |
|
September 30,
2017 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||||
Segment operating income
|
|
|
|
|
|
|
|
||||||||
Japan
|
$
|
9,366
|
|
|
$
|
8,656
|
|
|
$
|
17,633
|
|
|
$
|
16,123
|
|
EMEA
|
11,459
|
|
|
10,026
|
|
|
23,499
|
|
|
20,524
|
|
||||
North America Plasma
|
41,468
|
|
|
34,692
|
|
|
80,064
|
|
|
61,892
|
|
||||
All Other
|
36,229
|
|
|
32,529
|
|
|
69,270
|
|
|
63,199
|
|
||||
Segment operating income
|
98,522
|
|
|
85,903
|
|
|
190,466
|
|
|
161,738
|
|
||||
Corporate operating expenses
|
(62,244
|
)
|
|
(50,456
|
)
|
|
(116,517
|
)
|
|
(98,505
|
)
|
||||
Effect of exchange rates
|
2,594
|
|
|
1,102
|
|
|
5,649
|
|
|
(1,099
|
)
|
||||
Restructuring and turnaround costs
|
(2,118
|
)
|
|
(5,787
|
)
|
|
(5,467
|
)
|
|
(8,270
|
)
|
||||
Deal amortization
|
(6,236
|
)
|
|
(6,504
|
)
|
|
(12,536
|
)
|
|
(12,995
|
)
|
||||
Asset impairments
|
—
|
|
|
—
|
|
|
(21,170
|
)
|
|
—
|
|
||||
Accelerated depreciation
|
(4,442
|
)
|
|
—
|
|
|
(8,381
|
)
|
|
—
|
|
||||
Legal charges
|
—
|
|
|
—
|
|
|
(675
|
)
|
|
—
|
|
||||
Operating income
|
$
|
26,076
|
|
|
$
|
24,258
|
|
|
$
|
31,369
|
|
|
$
|
40,869
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In thousands)
|
September 29,
2018 |
|
September 30,
2017 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||||
Plasma
|
$
|
124,352
|
|
|
$
|
109,771
|
|
|
$
|
241,255
|
|
|
$
|
211,278
|
|
Blood Center
|
68,243
|
|
|
71,710
|
|
|
132,726
|
|
|
137,275
|
|
||||
Hospital
|
48,986
|
|
|
43,896
|
|
|
96,947
|
|
|
87,775
|
|
||||
Net revenues
|
$
|
241,581
|
|
|
$
|
225,377
|
|
|
$
|
470,928
|
|
|
$
|
436,328
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In thousands)
|
September 29,
2018 |
|
September 30,
2017 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||||
United States
|
$
|
152,926
|
|
|
$
|
138,779
|
|
|
$
|
295,066
|
|
|
$
|
269,831
|
|
Japan
|
17,172
|
|
|
16,732
|
|
|
34,561
|
|
|
31,648
|
|
||||
Europe
|
39,096
|
|
|
39,133
|
|
|
78,098
|
|
|
76,355
|
|
||||
Asia
|
30,575
|
|
|
28,831
|
|
|
59,970
|
|
|
54,771
|
|
||||
Other
|
1,812
|
|
|
1,902
|
|
|
3,233
|
|
|
3,723
|
|
||||
Net revenues
|
$
|
241,581
|
|
|
$
|
225,377
|
|
|
$
|
470,928
|
|
|
$
|
436,328
|
|
(In thousands)
|
|
Foreign Currency
|
|
Defined Benefit Plans
|
|
Net Unrealized Gain/Loss on Derivatives
|
|
Total
|
||||||||
Balance as of March 31, 2018
|
|
$
|
(16,405
|
)
|
|
$
|
(323
|
)
|
|
$
|
(2,263
|
)
|
|
$
|
(18,991
|
)
|
Other comprehensive income (loss) before reclassifications
(1)
|
|
(8,530
|
)
|
|
—
|
|
|
2,758
|
|
|
(5,772
|
)
|
||||
Amounts reclassified from Accumulated Other Comprehensive Loss
(1)
|
|
—
|
|
|
—
|
|
|
730
|
|
|
730
|
|
||||
Net current period other comprehensive income (loss)
|
|
(8,530
|
)
|
|
—
|
|
|
3,488
|
|
|
(5,042
|
)
|
||||
Balance as of September 29, 2018
|
|
$
|
(24,935
|
)
|
|
$
|
(323
|
)
|
|
$
|
1,225
|
|
|
$
|
(24,033
|
)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In thousands, except per share data)
|
September 29,
2018 |
|
September 30,
2017 |
|
% Increase/
(Decrease) |
|
September 29,
2018 |
|
September 30,
2017 |
|
% Increase/
(Decrease) |
||||||||||
Net revenues
|
$
|
241,581
|
|
|
$
|
225,377
|
|
|
7.2
|
%
|
|
$
|
470,928
|
|
|
$
|
436,328
|
|
|
7.9
|
%
|
Gross profit
|
$
|
111,907
|
|
|
$
|
104,562
|
|
|
7.0
|
%
|
|
$
|
195,151
|
|
|
$
|
196,227
|
|
|
(0.5
|
)%
|
% of net revenues
|
46.3
|
%
|
|
46.4
|
%
|
|
|
|
41.4
|
%
|
|
45.0
|
%
|
|
|
||||||
Operating expenses
|
$
|
85,831
|
|
|
$
|
80,304
|
|
|
6.9
|
%
|
|
$
|
163,782
|
|
|
$
|
155,358
|
|
|
5.4
|
%
|
Operating income
|
$
|
26,076
|
|
|
$
|
24,258
|
|
|
7.5
|
%
|
|
$
|
31,369
|
|
|
$
|
40,869
|
|
|
(23.2
|
)%
|
% of net revenues
|
10.8
|
%
|
|
10.8
|
%
|
|
|
|
6.7
|
%
|
|
9.4
|
%
|
|
|
||||||
Gain on divestiture
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
$
|
8,000
|
|
|
(100.0
|
)%
|
Interest and other expense, net
|
$
|
(3,039
|
)
|
|
$
|
(1,397
|
)
|
|
117.5
|
%
|
|
$
|
(5,017
|
)
|
|
$
|
(2,756
|
)
|
|
82.0
|
%
|
Income before provision for income taxes
|
$
|
23,037
|
|
|
$
|
22,861
|
|
|
0.8
|
%
|
|
$
|
26,352
|
|
|
$
|
46,113
|
|
|
(42.9
|
)%
|
Provision for income taxes
|
$
|
4,311
|
|
|
$
|
2,759
|
|
|
56.3
|
%
|
|
$
|
10,445
|
|
|
$
|
5,874
|
|
|
77.8
|
%
|
% of pre-tax income
|
18.7
|
%
|
|
12.1
|
%
|
|
|
|
39.6
|
%
|
|
12.7
|
%
|
|
|
||||||
Net income
|
$
|
18,726
|
|
|
$
|
20,102
|
|
|
(6.8
|
)%
|
|
$
|
15,907
|
|
|
$
|
40,239
|
|
|
(60.5
|
)%
|
% of net revenues
|
7.8
|
%
|
|
8.9
|
%
|
|
|
|
3.4
|
%
|
|
9.2
|
%
|
|
|
||||||
Net income per share - basic
|
$
|
0.36
|
|
|
$
|
0.38
|
|
|
(5.3
|
)%
|
|
$
|
0.31
|
|
|
$
|
0.77
|
|
|
(59.7
|
)%
|
Net income per share - diluted
|
$
|
0.35
|
|
|
$
|
0.38
|
|
|
(7.9
|
)%
|
|
$
|
0.30
|
|
|
$
|
0.76
|
|
|
(60.5
|
)%
|
|
|
Three Months Ended
|
|||||||||||||||
(In thousands)
|
|
September 29,
2018 |
|
September 30,
2017 |
|
Reported growth
|
|
Currency impact
|
|
Constant currency growth
(1)
|
|||||||
United States
|
|
$
|
152,926
|
|
|
$
|
138,779
|
|
|
10.2
|
%
|
|
—
|
%
|
|
10.2
|
%
|
International
|
|
88,655
|
|
|
86,598
|
|
|
2.4
|
%
|
|
(0.1
|
)%
|
|
2.5
|
%
|
||
Net revenues
|
|
$
|
241,581
|
|
|
$
|
225,377
|
|
|
7.2
|
%
|
|
—
|
%
|
|
7.2
|
%
|
|
|
Six Months Ended
|
|||||||||||||||
(In thousands)
|
|
September 29,
2018 |
|
September 30,
2017 |
|
Reported growth
|
|
Currency impact
|
|
Constant currency growth
(1)
|
|||||||
United States
|
|
$
|
295,066
|
|
|
$
|
269,831
|
|
|
9.4
|
%
|
|
—
|
%
|
|
9.4
|
%
|
International
|
|
175,862
|
|
|
166,497
|
|
|
5.6
|
%
|
|
1.8
|
%
|
|
3.8
|
%
|
||
Net revenues
|
|
$
|
470,928
|
|
|
$
|
436,328
|
|
|
7.9
|
%
|
|
0.7
|
%
|
|
7.2
|
%
|
|
|
Three Months Ended
|
|||||||||||||||
(In thousands)
|
|
September 29,
2018 |
|
September 30,
2017 |
|
Reported growth
|
|
Currency impact
|
|
Constant currency growth
(1)
|
|||||||
Plasma
|
|
$
|
124,352
|
|
|
$
|
109,771
|
|
|
13.3
|
%
|
|
—
|
%
|
|
13.3
|
%
|
Blood Center
|
|
68,243
|
|
|
71,710
|
|
|
(4.8
|
)%
|
|
(0.1
|
)%
|
|
(4.7
|
)%
|
||
Hospital
(2)
|
|
48,986
|
|
|
43,896
|
|
|
11.6
|
%
|
|
0.3
|
%
|
|
11.3
|
%
|
||
Net revenues
|
|
$
|
241,581
|
|
|
$
|
225,377
|
|
|
7.2
|
%
|
|
—
|
%
|
|
7.2
|
%
|
|
|
Six Months Ended
|
|||||||||||||||
(In thousands)
|
|
September 29,
2018 |
|
September 30,
2017 |
|
Reported growth
|
|
Currency impact
|
|
Constant currency growth
(1)
|
|||||||
Plasma
|
|
$
|
241,255
|
|
|
$
|
211,278
|
|
|
14.2
|
%
|
|
0.6
|
%
|
|
13.6
|
%
|
Blood Center
|
|
132,726
|
|
|
137,275
|
|
|
(3.3
|
)%
|
|
0.6
|
%
|
|
(3.9
|
)%
|
||
Hospital
(2)
|
|
96,947
|
|
|
87,775
|
|
|
10.4
|
%
|
|
1.6
|
%
|
|
8.8
|
%
|
||
Net revenues
|
|
$
|
470,928
|
|
|
$
|
436,328
|
|
|
7.9
|
%
|
|
0.7
|
%
|
|
7.2
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In thousands)
|
September 29,
2018 |
|
September 30,
2017 |
|
% Increase/
(Decrease) |
|
September 29, 2018
|
|
September 30,
2017 |
|
% Increase/
(Decrease) |
||||||||||
Gross profit
|
$
|
111,907
|
|
|
$
|
104,562
|
|
|
7.0
|
%
|
|
$
|
195,151
|
|
|
$
|
196,227
|
|
|
(0.5
|
)%
|
% of net revenues
|
46.3
|
%
|
|
46.4
|
%
|
|
|
|
|
41.4
|
%
|
|
45.0
|
%
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In thousands)
|
September 29,
2018 |
|
September 30,
2017 |
|
% Increase/
(Decrease)
|
|
September 29,
2018 |
|
September 30,
2017 |
|
% Increase/
(Decrease)
|
||||||||||
Research and development
|
$
|
8,583
|
|
|
$
|
7,521
|
|
|
14.1
|
%
|
|
$
|
17,989
|
|
|
$
|
15,714
|
|
|
14.5
|
%
|
% of net revenues
|
3.6
|
%
|
|
3.3
|
%
|
|
|
|
|
3.8
|
%
|
|
3.6
|
%
|
|
|
|
||||
Selling, general and administrative
|
$
|
77,248
|
|
|
$
|
72,783
|
|
|
6.1
|
%
|
|
$
|
145,793
|
|
|
$
|
139,644
|
|
|
4.4
|
%
|
% of net revenues
|
32.0
|
%
|
|
32.3
|
%
|
|
|
|
|
31.0
|
%
|
|
32.0
|
%
|
|
|
|
||||
Total operating expenses
|
$
|
85,831
|
|
|
$
|
80,304
|
|
|
6.9
|
%
|
|
$
|
163,782
|
|
|
$
|
155,358
|
|
|
5.4
|
%
|
% of net revenues
|
35.5
|
%
|
|
35.6
|
%
|
|
|
|
|
34.8
|
%
|
|
35.6
|
%
|
|
|
|
(Dollars in thousands)
|
|
September 29,
2018 |
|
March 31,
2018 |
||||
Cash & cash equivalents
|
|
$
|
199,763
|
|
|
$
|
180,169
|
|
Working capital
|
|
$
|
363,638
|
|
|
$
|
136,474
|
|
Current ratio
|
|
2.9
|
|
|
1.4
|
|
||
Net debt
(1)
|
|
$
|
(143,889
|
)
|
|
$
|
(73,513
|
)
|
Days sales outstanding (DSO)
|
|
60
|
|
|
58
|
|
||
Inventory turnover
|
|
2.9
|
|
|
3.5
|
|
|
|
Six Months Ended
|
||||||||||
(In thousands)
|
|
September 29,
2018 |
|
September 30,
2017 |
|
Increase/
(Decrease) |
||||||
Net cash provided by (used in):
|
|
|
|
|
|
|
||||||
Operating activities
|
|
$
|
80,479
|
|
|
$
|
97,328
|
|
|
$
|
(16,849
|
)
|
Investing activities
|
|
(75,346
|
)
|
|
(18,779
|
)
|
|
(56,567
|
)
|
|||
Financing activities
|
|
18,584
|
|
|
(16,296
|
)
|
|
34,880
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
(1)
|
|
(4,123
|
)
|
|
1,805
|
|
|
(5,928
|
)
|
|||
Net increase in cash and cash equivalents
|
|
$
|
19,594
|
|
|
$
|
64,058
|
|
|
|
|
Form of Indemnification Agreement.
|
|
|
|
|
|
Certification pursuant to Section 302 of Sarbanes-Oxley Act of 2002, of Christopher Simon, President and Chief Executive Officer of the Company.
|
|
|
|
|
|
Certification pursuant to Section 302 of Sarbanes-Oxley of 2002, of William Burke, Executive Vice President, Chief Financial Officer of the Company.
|
|
|
|
|
|
Certification Pursuant to 18 United States Code Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Christopher Simon, President and Chief Executive Officer of the Company.
|
|
|
|
|
|
Certification Pursuant to 18 United States Code Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of William Burke, Executive Vice President, Chief Financial Officer of the Company.
|
|
|
|
|
101**
|
|
The following materials from Haemonetics Corporation on Form 10-Q for the quarter ended September 29, 2018, formatted in Extensible Business Reporting Language (XBRL); (i) Consolidated Statements of Income and Comprehensive Income, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Cash Flows, and (iv) Notes to Consolidated Financial Statements.
|
**
|
|
In accordance with Rule 406T of Regulation S-T, the XBRL-related information in Exhibit 101 to this Form 10-Q is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act, is deemed not filed for the purposes of section 18 of the Exchange Act, and otherwise is not subject to liability under these sections.
|
|
HAEMONETICS CORPORATION
|
|
|
11/6/2018
|
By:
|
/s/ Christopher Simon
|
|
|
|
Christopher Simon,
President and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
11/6/2018
|
By:
|
/s/ William Burke
|
|
|
|
William Burke, Executive Vice President, Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Haemonetics Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Christopher Simon
|
|
||
|
Christopher Simon, President and Chief Executive Officer
|
|
||
|
(Principal Executive Officer)
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Haemonetics Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ William Burke
|
|
||
|
William Burke, Executive Vice President, Chief Financial Officer
|
|
||
|
(Principal Financial Officer)
|
|
|
/s/ Christopher Simon
|
|
||
|
Christopher Simon,
|
|
||
|
President and Chief Executive Officer
|
|
|
/s/ William Burke
|
|
||
|
William Burke,
|
|
||
|
Executive Vice President, Chief Financial Officer
|
|