Mindray Announces 2012 Fourth Quarter and Full Year Results
Mindray Announces 2012 Fourth Quarter and Full Year Results
PR Newswire
SHENZHEN, China, Feb. 25, 2013
SHENZHEN, China, Feb. 25, 2013 /PRNewswire/ -- Mindray Medical International
Limited ("Mindray", NYSE: MR), a leading developer, manufacturer and marketer
of medical devices worldwide, announced today its selected unaudited financial
results for the fourth quarter and full year ended December 31, 2012.
Highlights for Fourth Quarter and Full Year 2012
o Full year net revenues increased 20.4% year-over-year to $1,060.1 million;
excluding tax benefits, full year non-GAAP net income increased 18.4% to
$211.7 million.
o China revenues rose 26.4% for the full year, primarily driven by robust
regular sales.
o International sales increased 15.9% for the full year. Emerging markets[1]
were again the key growth drivers.
o In-vitro diagnostic sales grew 29.8% year-over-year in the fourth quarter.
Reagent revenues contributed 36.9% to the segment, up from 32.1% in the
same period last year.
o Non-GAAP gross margin was 58.5% in the fourth quarter, improved from 54.7%
a year ago and 56.5% in the previous quarter. Full year non-GAAP gross
margin was 57.2%, improved from 55.8% in 2011.
o Net operating cash inflow for the full year strengthened to $325.7
million, representing an increase of 69.3% from 2011, mainly as a result
of improved working capital management.
o Cash conversion cycle was 89 days in the fourth quarter, compared to 100
days a year ago and 106 days in the previous quarter, due to better
control on receivable collections and inventory management.
o Declared dividend of $0.50 per share, representing a 25% increase from
2011.
o Announced a total of 10 new products and four acquisitions in 2012 to
further enhance the company's technology and product offerings.
"2012 marks another remarkable year for Mindray, as our revenue surpassed $1
billion for the first time in the company's history. We also achieved strong
revenue and net income growth, beating our financial guidance," said Mr. Li
Xiting, Mindray's President and Chief Executive Officer. "In addition, our
continuous focus on strengthening operating efficiency resulted in significant
improvement on our gross margin, working capital and operating cash flow.
China and emerging markets were again the main propellers for our company's
growth in 2012, reflecting the success of our strategy to strengthen sales,
distribution and services in these markets over the last few years. For our
in-vitro diagnostic segment, we have successfully ramped up sales in our
higher-margin reagents and are optimistic about the future growth prospects of
this business."
SUMMARY – Fourth Quarter and Year Ended December 31, 2012
Three Months Ended Year Ended
(in $ millions, except per-share data) December 31 December 31
2012 2011 % chg 2012 2011 % chg
Net Revenues 316.1 264.1 19.7% 1,060.1 880.7 20.4%
Revenues generated in China 148.1 117.6 25.9% 473.0 374.3 26.4%
Revenues generated outside China 168.0 146.5 14.7% 587.1 506.4 15.9%
Gross Profit 182.8 143.1 27.7% 600.7 486.4 23.5%
Non-GAAP Gross Profit 184.8 144.5 27.9% 606.2 491.9 23.2%
Operating Income 59.7 47.9 24.6% 191.3 167.0 14.5%
Non-GAAP Operating Income 65.8 53.0 24.2% 223.3 186.9 19.5%
EBITDA 71.9 57.6 24.8% 233.3 203.7 14.5%
Net Income 55.8 46.8 19.3% 180.2 166.6 8.1%
Non-GAAP Net Income 61.7 51.8 19.0% 211.7 186.3 13.6%
Non-GAAP Net Income[2] (ex tax benefit) 61.7 51.8 19.0% 211.7 178.8 18.4%
Diluted EPS 0.47 0.40 17.6% 1.50 1.41 6.9%
Non-GAAP Diluted EPS 0.51 0.44 17.3% 1.77 1.57 12.3%
Fourth Quarter 2012 Results
Revenues
Mindray reported net revenues of $316.1 million for the fourth quarter of
2012, a 19.7% increase from $264.1 million in the fourth quarter of 2011.
o Net revenues generated in China increased 25.9% to $148.1 million from
$117.6 million in the fourth quarter of 2011.
o Net revenues generated in the international markets increased 14.7% to
$168.0 million from $146.5 million in the fourth quarter of 2011.
Performance by Segment
Patient Monitoring and Life Support Products: Revenues in this segment
increased 13.0% to $135.0 million from $119.5 million in the fourth quarter of
2011, contributing 42.7% to the total net revenues in this quarter.
In-Vitro Diagnostic Products: Revenues in this segment increased 29.8% to
$82.9 million from $63.9 million in the fourth quarter of 2011, contributing
26.2% to the total net revenues in this quarter. Reagents sales represented
36.9% of this segment's revenues.
Medical Imaging Systems: Revenues in this segment increased 15.8% to $75.4
million from $65.1 million in the fourth quarter of 2011, contributing 23.8%
to the total net revenues in this quarter.
Others: The other revenues increased 45.3% to $22.8 million from $15.7 million
in the fourth quarter of 2011, contributing 7.3% to the total net revenues in
this quarter. Other revenues mainly include sales from the orthopedics
business, service revenues from extended warranties, sales of accessories and
repair service revenues for post-warranty period.
Gross Margins
Fourth quarter 2012 gross profit was $182.8 million, a 27.7% increase from
$143.1 million in the fourth quarter of 2011. Non-GAAP gross profit was $184.8
million, a 27.9% increase from $144.5 million in the fourth quarter of 2011.
The gross margin was 57.8%, compared to 54.2% in the fourth quarter of 2011
and 56.0% in the third quarter of 2012. Non-GAAP gross margin was 58.5%,
compared to 54.7% in the fourth quarter of 2011 and 56.5% in the third quarter
of 2012.
Operating Expenses
Selling expenses for the fourth quarter of 2012 were $53.7 million, or 17.0%
of the total net revenues, compared to 19.7% in the fourth quarter of 2011 and
18.5% in the third quarter of 2012. Non-GAAP selling expenses were $51.2
million, or 16.2% of the total net revenues, compared to 19.0% in the fourth
quarter of 2011 and 17.8% in the third quarter of 2012.
General and administrative expenses for the fourth quarter of 2012 were $36.5
million, or 11.5% of the total net revenues, compared to 6.7% in the fourth
quarter of 2011 and 13.2% in the third quarter of 2012. Non-GAAP general and
administrative expenses were $36.0 million, or 11.4% of the total net
revenues, compared to 6.3% in the fourth quarter of 2011 and 9.2% in the third
quarter of 2012.
Research and development expenses for the fourth quarter of 2012 were $32.9
million, or 10.4% of the total net revenues, compared to 9.7% in the fourth
quarter of 2011 and 9.0% in the third quarter of 2012. Non-GAAP research and
development expenses were $31.9 million, or 10.1% of the total net revenues,
compared to 9.3% in the fourth quarter of 2011 and 8.6% in the third quarter
of 2012.
Total share-based compensation expenses for the fourth quarter of 2012, which
were allocated to cost of goods sold and related operating expenses, were $2.7
million, compared to $3.2 million in the fourth quarter of 2011 and $3.1
million in the third quarter of 2012.
Operating income in the fourth quarter was $59.7 million, a 24.6% increase
from $47.9 million in the fourth quarter of 2011. Non-GAAP operating income
was $65.8 million, a 24.2% increase from $53.0 million in the fourth quarter
of 2011. Operating margin was 18.9% compared to 18.1% in the fourth quarter of
2011 and 15.2% in the third quarter of 2012. Non-GAAP operating margin was
20.8%, compared to 20.1% in the fourth quarter of 2011 and 20.8% in the third
quarter of 2012.
Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA")
Fourth quarter 2012 EBITDA increased 24.8% year-over-year to $71.9 million
from $57.6 million in the fourth quarter of 2011.
Net Income
Fourth quarter 2012 net income increased 19.3% to $55.8 million from $46.8
million in the fourth quarter of 2011. Non-GAAP net income increased 19.0% to
$61.7 million from $51.8 million in the fourth quarter of 2011. Net margin was
17.7%, unchanged from the fourth quarter of 2011 and compared to 13.9% in the
third quarter of 2012. Non-GAAP net margin was 19.5%, compared to 19.6% in the
fourth quarter of 2011 and unchanged from the third quarter of 2012. Fourth
quarter 2012 income tax expense was $9.9 million, representing an effective
tax rate of 14.8%, compared to a 14.9% effective tax rate in the fourth
quarter of 2011.
Fourth quarter 2012 basic and diluted earnings per share were $0.48 and $0.47,
respectively, compared to $0.41 and $0.40 in the fourth quarter of 2011.
Fourth quarter 2012 basic and diluted non-GAAP earnings per share were $0.53
and $0.51, respectively, compared to $0.45 and $0.44 in the fourth quarter of
2011. Shares used in the computation of diluted earnings per share for the
fourth quarter of 2012 were 120.1 million.
Other Selected Data
Accounts receivable days were 53 days in the fourth quarter of 2012, improved
from 66 days both in the fourth quarter of 2011 and the third quarter of 2012.
Inventory days were 83 days in the fourth quarter of 2012, compared to 78 days
in the fourth quarter of 2011 and 100 days in the third quarter of 2012.
Accounts payable days were 47 days in the fourth quarter of 2012, compared to
44 days in the fourth quarter of 2011 and 60 days in the third quarter of
2012. Mindray calculates the above working capital days using the average of
beginning and ending balances of the quarter.
As of December 31, 2012, the company had total $862.9 million in cash and cash
equivalents, and short-term investments as compared to $747.6 million as of
September 30, 2012. Net cash generated from operating activities and net cash
outflow for capital expenditures for the quarter were $144.9 million and $18.4
million, respectively.
As of December 31, 2012 the company had approximately 7,500 employees,
including those from the acquired businesses.
Full Year 2012 Results
Mindray reported net revenues of $1,060.1 million for the full year 2012, a
20.4% increase from $880.7 million for the full year 2011.
o Net revenues generated in China for the full year 2012 increased 26.4% to
$473.0 million from $374.3 million in 2011.
o Net revenues generated in international markets for the full year 2012
increased 15.9% to $587.1 million from $506.4 million in 2011.
Full year 2012 EBITDA increased 14.5% to $233.3 million from $203.7 million in
2011.
Full year 2012 net income increased 8.1% to $180.2 million from $166.6 million
in 2011. Non-GAAP net income increased 13.6% year-over-year to $211.7 million
from $186.3 million in 2011. Net margin was 17.0%, compared to 18.9% in 2011.
Non-GAAP net margin was 20.0%, compared to 21.2% in 2011. Full year 2012
income tax expense was $37.4 million, representing an effective tax rate of
17.0%, compared to 11.9% in 2011.
Diluted earnings per share increased 6.9% year-over-year to $1.50 from $1.41
in 2011. Non-GAAP diluted earnings per share increased 12.3% to $1.77 from
$1.57 in 2011.
Dividend Declaration
Mindray's board of directors has declared a cash dividend on its ordinary
shares of $0.50 per share, based on the company's net income for the full year
2012. The cash dividend will be payable on or around April 8, 2013, to
shareholders of record as of March 8, 2013. The company has approximately 119
million outstanding ordinary shares as of January 31, 2013.
Business Outlook for Full Year 2013
The company expects its full year 2013 net revenues to grow at least 17% over
its full year 2012 net revenues. The company also expects its full year 2013
non-GAAP net income to grow at least 15% over its non-GAAP net income for the
full year 2012. This guidance excludes the tax benefits related to the key
software enterprise status for the calendar year 2011 and 2012 that we may
receive in 2013 and assumes a corporate income tax rate of 15% applicable to
the Shenzhen subsidiary.
The company expects its capital expenditure for 2013 to be around $130
million.
The company's practice is to provide guidance on a full year basis only. This
forecast reflects Mindray's current and preliminary views, which are subject
to change.
"Looking ahead, China will remain the primary engine for our growth this year,
due to our strong competitive position in the domestic market and favourable
spending environment on healthcare. As for emerging markets, the prospects,
albeit favourable overall, are somewhat overshadowed by potential political
instability and currency risks in some regions," said Li Xiting, Mindray's
President and Chief Executive Officer. "We anticipate that the developed
markets[3] will remain challenging this year because of lingering
uncertainties over their economies or hospital spending. But our strategy of
offering great products at reasonable prices will continue to serve us well in
all markets. We will work on strengthening our research and development and
pursuing suitable M&A opportunities in order to drive long-term growth for
Mindray."
[1] Emerging markets represent all countries except China and developed
markets.
[2] The amount excludes the $7.6 million tax benefits related to the key
software enterprise status for the calendar year 2010, which was recognized in
the first quarter of 2011.
[3] Developed markets represent countries in North America and Western Europe.
Conference Call Information
Mindray's management will hold an earnings conference call at 8:00 AM on
February 26, 2013 U.S. Eastern Time (9:00 PM on February 26, 2013 Beijing/Hong
Kong Time).
Dial-in details for the earnings conference call are as follows:
International Toll Free:
United States: +1-866-519-4004
Hong Kong: 800-930-346
China Landline: 800-819-0121
Local dial-in numbers:
United States: +1-718-354-1231
Hong Kong: +852-2475-0994
China Mobile: 400-620-8038
Passcode for all regions: Mindray
A replay of the conference call may be accessed by phone at the following
numbers until March 12, 2012.
U.S. Toll Free: +1-855-452-5696
International: +1-646-254-3697
Passcode: 97684615
Additionally, a live and archived webcast of this conference call will be
available on the Investor Relations section of Mindray's website at:
http://ir.mindray.com/
Use of Non-GAAP Financial Measures
Mindray provides gross profit, selling expenses, general and administrative
expenses, research and development expenses, operating income, net income and
earnings per share on a non-GAAP basis that excludes dispute related legal
fees, dispute charges, share-based compensation expense and acquired
intangible assets amortization expense, all net of related tax impact, as well
as EBITDA to enable investors to better assess the company's operating
performance. The non-GAAP measures described by the company are reconciled to
the corresponding GAAP measure in the exhibit below titled "Reconciliations of
non-GAAP results of operations measures to the nearest comparable GAAP
measures."
The company has reported for the fourth quarter and full year of 2012 and
provided guidance for full year 2013 earnings on a non-GAAP basis. Each of the
terms as used by the company is defined as follows:
o Non-GAAP gross profit represents gross profit reported in accordance with
GAAP, adjusted for the effects of share-based compensation and
amortization of acquired intangible assets.
o Non-GAAP operating income represents operating income reported in
accordance with GAAP, adjusted for the effects of dispute related legal
fees, dispute charges, share-based compensation, and amortization of
acquired intangible assets.
o Non-GAAP selling expenses represent selling expenses reported in
accordance with GAAP, adjusted for the effects of share-based compensation
and amortization of acquired intangible assets.
o Non-GAAP general and administrative expenses represent general and
administrative expenses reported in accordance with GAAP, adjusted for the
effects of dispute related legal fees, dispute charges and share-based
compensation.
o Non-GAAP research and development expenses represent research and
development expenses reported in accordance with GAAP, adjusted for the
effects of share-based compensation.
o Non-GAAP net income represents net income reported in accordance with
GAAP, adjusted for the effects of dispute related legal fees, dispute
charges, share-based compensation and amortization of acquired intangible
assets, all net of related tax impact.
o Non-GAAP earnings per share represents non-GAAP net income divided by the
number of shares used in computing basic and diluted earnings per share in
accordance with GAAP, and excludes the impact of declared dividends for
the calculation of basic earnings per share.
o EBITDA represents net income reported in accordance with GAAP, adjusted
for the effect of interest income, interest expense, provision of income
taxes, depreciation and amortization.
The company computes its non-GAAP financial measures using the same consistent
method from quarter to quarter. The company notes that these measures may not
be calculated on the same basis of similar measures used by other companies.
Readers are cautioned not to view non-GAAP results on a stand-alone basis or
as a substitute for results under GAAP, or as being comparable to results
reported or forecasted by other companies, and should refer to the
reconciliation of GAAP results with non-GAAP results for the three months and
years ended December 31, 2011 and 2012, respectively, in the attached
financial information.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Statements that are not historical facts, including, without limitation,
statements about Mindray's anticipated net revenues, non-GAAP net income and
capital expenditure for 2013, the tax benefits related to the key software
enterprise status that we may receive in 2013 for the calendar year 2011 and
2012, our assumption of a corporate income tax rate of 15% applicable to the
Shenzhen subsidiary, our being optimistic about the future growth prospects of
our in-vitro diagnostic segment, that China will remain the primary engine for
our growth this year due to our strong competitive position in the domestic
market and favourable spending environment on healthcare, that the prospects
for emerging markets, albeit favourable overall, are somewhat overshadowed by
potential political instability and currency risks in some regions, our
anticipation that the developed markets will remain challenging this year
because of lingering uncertainties over their economies or hospital spending,
that our strategy of offering great products at reasonable prices will
continue to serve us well in all markets, and that we will work on
strengthening our research and development and pursuing suitable M&A
opportunities in order to drive long-term growth for Mindray, are
forward-looking statements. Readers are cautioned that these forward-looking
statements are only predictions and may differ materially from actual results
due to a variety of factors, including, without limitation, the growth and
expected growth of the medical device market in China and internationally;
relevant government policies and regulations relating to the medical device
industry; market acceptance of our products; our expectations regarding demand
for our products; our ability to expand our production, our sales and
distribution network and other aspects of our operations; our ability to stay
abreast of market trends and technological advances; our ability to
effectively protect our intellectual property rights and not infringe on the
intellectual property rights of others; our ability to settle disputes with
our customers and suppliers; competition in the medical device industry in
China and internationally; and general economic and business conditions in the
countries in which we operate. For a discussion of other important factors
that could adversely affect our business, financial condition, results of
operations and prospects, see "Risk Factors" beginning on page 5 of our annual
report on Form 20-F which was filed on April 30, 2012. Our results of
operations for the fourth quarter of 2012 and the full year ended December 31,
2012 are not necessarily indicative of our operating results for any future
periods. The company has not completed its audit of 2012 financial statements
and the selected unaudited financial results for the fourth quarter and full
year ended December 31, 2012 announced today are subject to adjustment. The
anticipated results for the fourth quarter and full year ended December 31,
2012 remain subject to the finalization of the company's year-end closing,
reporting and audit processes, particularly as related to accrued expenses,
income taxes, share-based compensation expenses, and expenses and/or
amortization of intangible assets. The financial information contained in this
release should be read in conjunction with the consolidated financial
statements and notes thereto included in our public filings with the
Securities and Exchange Commission. Any projections in this release are based
on limited information currently available to us, which is subject to change.
Although such projections and the factors influencing them will likely change,
we will not necessarily update the information. Such information speaks only
as of the date of this release.
All references to "shares" are to our ordinary shares, which are divided into
two classes, Class A and Class B. Each of our American Depositary Shares,
which trade on the New York Stock Exchange, represents one Class A ordinary
share.
About Mindray
We are a leading developer, manufacturer and marketer of medical devices
worldwide. We maintain our global headquarters in Shenzhen, China, U.S.
headquarters in Mahwah, New Jersey and multiple sales offices in major
international markets. From our main manufacturing and engineering base
in China, we supply through our worldwide distribution network a broad range
of products across three primary business segments, namely patient monitoring
and life support, in-vitro diagnostic, and medical imaging systems. For more
information, please visit http://ir.mindray.com.
For investor and media inquiries, please contact:
In the U.S:
Hoki Luk
Western Bridge, LLC
Tel: +1-646-808-9150
Email: hoki.luk@westernbridgegroup.com
In China:
Cathy Gao
Mindray Medical International Limited
Tel: +86-755-8188-8023
Email: cathy.gao@mindray.com
Exhibit 1
MINDRAY MEDICAL INTERNATIONAL LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
As of December 31, 2011 As of December 31, 2012
US$ US$
(Note 1) (unaudited)
ASSETS
Current assets:
Cash and cash 124,311 247,859
equivalents
Restricted cash and
restricted - 21,528
investment (Note 2)
Short-term 479,173 615,003
investments
Accounts receivable, 200,437 185,701
net
Inventories 94,690 110,099
Value added tax 10,833 7,427
receivables
Other receivables 16,590 15,704
Prepayments and 9,792 11,081
deposits
Deferred tax assets 3,483 6,443
Total current assets 939,309 1,220,845
Other assets 7,330 10,811
Accounts
receivables, net, - 2,172
non-current
Advances for
purchase of plant 6,239 3,009
and equipment
Property, plant and 237,952 268,010
equipment, net
Land use rights, net 55,272 56,921
Intangible assets, 84,029 132,334
net
Goodwill 128,840 163,016
Total assets 1,458,971 1,857,118
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank 50,475 85,100
loans
Notes payable 7,013 8,697
Accounts payable 48,501 53,244
Advances from 20,700 17,550
customers
Salaries payable 38,784 69,919
Other payables 65,357 108,528
Purchase
consideration 2,142 20,354
payable
Income taxes payable 16,847 30,305
Other taxes payable 7,412 8,894
Total current 257,231 402,591
liabilities
Long-term bank loan 35,025 50,039
Other long-term payables 2,355 4,004
Deferred tax liabilities, 12,925 23,369
net
50,305 77,412
Shareholders' equity:
Ordinary shares 15 15
Additional paid-in 486,314 514,280
capital
Retained earnings 566,184 699,992
Accumulated other 100,139 116,556
comprehensive income
Treasury stock (10,160) -
Total shareholders' 1,142,492 1,330,843
equity
Non-controlling interest 8,943 46,272
Total equity 1,151,435 1,377,115
Total liabilities and 1,458,971 1,857,118
shareholders' equity
(1) Financial information is extracted from the audited financial statements
included in the Company's fiscal year 2011 20F.
(2) Restricted cash and restricted investment are those purchase consideration
in connection with our acquisition being held on escrow accounts.
Exhibit 2
MINDRAY MEDICAL INTERNATIONAL LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except for share and per share data)
Three months ended December 31, Year ended December
31,
2011 2012 2011 2012
US$ US$ US$ US$
(unaudited) (unaudited) (Note 1) (unaudited)
Net revenues
-PRC 117,630 148,136 374,312 472,991
- International 146,500 167,980 506,431 587,063
Net revenues 264,130 316,116 880,743 1,060,054
Cost of revenues (121,035) (133,355) (394,302) (459,389)
Gross profit 143,095 182,761 486,441 600,665
Selling expenses (51,917) (53,688) (167,049) (188,804)
General and
administrative (17,689) (36,467) (70,330) (116,228)
expenses
Research and
development (25,589) (32,926) (82,024) (104,302)
expenses
Operating income 47,900 59,680 167,038 191,331
Other income, net 516 177 3,108 1,619
Interest income 7,258 7,949 20,816 30,794
Interest expense (470) (1,028) (1,390) (4,093)
Income before
income taxes and 55,204 66,778 189,572 219,651
non-controlling
interests
Provision for (8,220) (9,895) (22,647) (37,369)
income taxes
Net income 46,984 56,883 166,925 182,282
Less: Net income
attributable to (189) (1,034) (296) (2,073)
non-controlling
interests
Net income
attributable to 46,795 55,849 166,629 180,209
the Company
Basic earnings 0.41 0.48 1.45 1.54
per share
Diluted earnings 0.40 0.47 1.41 1.50
per share
Shares used in
the computation
of:
Basic earnings 115,466,221 117,358,594 115,254,095 116,749,213
per share
Diluted earnings 118,365,008 120,099,229 118,449,851 119,815,004
per share
(1) Financial information is extracted from the audited
financial statements included in the Company's fiscal year 2011
20F.
Exhibit 3
MINDRAY MEDICAL INTERNATIONAL LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Three months ended December 31, Year ended December 31,
2011 2012 2011 2012
US$ US$ US$ US$
(unaudited) (unaudited) (Note 1) (unaudited)
Cash flow from
operating
activities:
Net income 46,795 55,849 166,629 180,209
Adjustments to
reconcile net income 13,353 21,091 49,825 71,797
to net cash from
operating activities
Changes in current
assets and 36,287 67,953 (24,050) 73,660
liabilities
Net cash generated
from operating 96,435 144,893 192,404 325,666
activities
Cash flow from
investing
activities:
Acquisition cost, - (3,064) (6,530) (34,552)
net of cash acquired
Capital (26,207) (18,361) (89,938) (65,605)
expenditure
Increase in
restricted cash and - (21,528) - (21,528)
restricted
investment
Proceeds from
sale of short-term 7,150 - 100,274 144,395
investments
Increase in
short-term
investments and (70,940) (19,727) (262,085) (255,255)
changes in other
investing activities
Net cash used in (89,997) (62,680) (258,279) (232,545)
investing activities
Cash flow from
financing
activities:
Repayment of bank - (2,475) - (2,475)
loans
Proceeds from - - 85,399 52,000
bank loans
Dividend paid - - (34,522) (46,401)
Proceeds from 1,730 1,964 7,121 24,593
exercise of options
Stock repurchase (10,160) - (10,160) -
Cash contribution
from non-controlling - - 797 506
interest
Net cash (used in)
generated from (8,430) (511) 48,635 28,223
financing activities
Net (decrease)
increase in cash and (1,992) 81,702 (17,240) 121,344
cash equivalents
Cash and cash
equivalents at 124,785 164,499 137,502 124,311
beginning of period
Effect of exchange 1,518 1,658 4,049 2,204
rate changes on cash
Cash and cash
equivalents at end 124,311 247,859 124,311 247,859
of period
(1) Financial information is extracted from the
audited financial statements included in the
Company's fiscal year 2011 20F.
Exhibit 4
MINDRAY MEDICAL INTERNATIONAL LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST
COMPARABLE GAAP MEASURES
(Dollars in thousands, except for share and per share data)
Three months ended December 31, Year ended December 31,
2011 2012 2011 2012
(unaudited) (unaudited) (unaudited) (unaudited)
US$ US$ US$ US$
Non-GAAP net 51,797 61,658 186,325 211,687
income
Non-GAAP net 19.6% 19.5% 21.2% 20.0%
margin
Amortization of
acquired (1,931) (3,404) (7,255) (8,298)
intangible assets
Deferred tax
impact related to 87 327 189 504
acquired
intangible assets
Dispute related - - (262) -
legal fees
Dispute charges - - - (9,700)
Share-based (3,158) (2,732) (12,368) (13,984)
compensation
GAAP net income 46,795 55,849 166,629 180,209
GAAP net margin 17.7% 17.7% 18.9% 17.0%
Non-GAAP basic
earnings per 0.45 0.53 1.62 1.81
share
Non-GAAP diluted
earnings per 0.44 0.51 1.57 1.77
share
GAAP basic
earnings per 0.41 0.48 1.45 1.54
share
GAAP diluted
earnings per 0.40 0.47 1.41 1.50
share
Shares used in
computation of:
Basic earnings 115,466,221 117,358,594 115,254,095 116,749,213
per share
Diluted earnings 118,365,008 120,099,229 118,449,851 119,815,004
per share
Non-GAAP 52,989 65,816 186,923 223,313
operating income
Non-GAAP 20.1% 20.8% 21.2% 21.1%
operating margin
Amortization of
acquired (1,931) (3,404) (7,255) (8,298)
intangible assets
Dispute related - - (262) -
legal fees
Dispute charges - - - (9,700)
Share-based (3,158) (2,732) (12,368) (13,984)
compensation
GAAP operating 47,900 59,680 167,038 191,331
income
GAAP operating 18.1% 18.9% 19.0% 18.0%
margin
Non-GAAP gross 144,503 184,799 491,870 606,214
profit
Non-GAAP gross 54.7% 58.5% 55.8% 57.2%
margin
Amortization of
acquired (1,219) (1,849) (4,667) (4,738)
intangible assets
Share-based (189) (189) (762) (811)
compensation
GAAP gross profit 143,095 182,761 486,441 600,665
GAAP gross margin 54.2% 57.8% 55.2% 56.7%
Non-GAAP selling (50,249) (51,165) (160,032) (180,788)
expenses
Non-GAAP as % of 19.0% 16.2% 18.2% 17.1%
total revenues
Amortization of
acquired (712) (1,555) (2,588) (3,560)
intangible assets
Share-based (956) (968) (4,429) (4,456)
compensation
GAAP selling (51,917) (53,688) (167,049) (188,804)
expenses
GAAP as % of 19.7% 17.0% 19.0% 17.8%
total revenues
Non-GAAP general
and (16,734) (35,966) (66,950) (102,119)
administrative
expenses
Non-GAAP as % of 6.3% 11.4% 7.6% 9.6%
total revenues
Dispute related - - (262) -
legal fees
Dispute charges - - - (9,700)
Share-based (955) (501) (3,118) (4,409)
compensation
GAAP general and
administrative (17,689) (36,467) (70,330) (116,228)
expenses
GAAP as % of 6.7% 11.5% 8.0% 11.0%
total revenues
Non-GAAP research
and development (24,531) (31,852) (77,965) (99,995)
expenses
Non-GAAP as % of 9.3% 10.1% 8.9% 9.4%
total revenues
Share-based (1,058) (1,074) (4,059) (4,307)
compensation
GAAP research and
development (25,589) (32,926) (82,024) (104,302)
expenses
GAAP as % of 9.7% 10.4% 9.3% 9.8%
total revenues
Exhibit 5
MINDRAY MEDICAL INTERNATIONAL LIMITED
RECONCILIATION OF GAAP NET INCOME TO EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION AND AMORTIZATION
(Dollars in thousands)
Three months ended December 31, Year ended December 31,
2011 2012 2011 2012
US$ US$ US$ US$
(unaudited) (unaudited) (unaudited) (unaudited)
GAAP net income 46,795 55,849 166,629 180,209
Interest income (7,258) (7,949) (20,816) (30,794)
Interest expense 470 1,028 1,390 4,093
Provision for 8,220 9,895 22,647 37,369
income taxes
Earnings before
interest and taxes 48,227 58,823 169,850 190,877
("EBIT")
Depreciation 6,367 7,445 23,216 28,043
Amortization 3,019 5,606 10,661 14,361
Earnings before
interest, taxes,
depreciation, and 57,613 71,874 203,727 233,281
amortization
("EBITDA")
SOURCE Mindray Medical International Limited
Website: http://ir.mindray.com
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