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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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