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ICU Medical Announces Third Quarter 2024 Results and Updates Its Fiscal Year 2024 Guidance

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ICU Medical (NASDAQ:ICUI) reported Q3 2024 financial results with revenue of $589.1 million, up from $553.3 million year-over-year. The company posted a GAAP net loss of $(33.0) million, or $(1.35) per diluted share, compared to a net income of $7.2 million, or $0.30 per share in Q3 2023. Gross margin improved to 34.8% from 33.2%. Adjusted EBITDA increased to $94.8 million from $89.8 million. The company updated its FY2024 guidance, projecting adjusted EBITDA of $355-365 million and adjusted EPS of $5.40-5.70.

ICU Medical (NASDAQ:ICUI) ha riportato i risultati finanziari del terzo trimestre del 2024, con un fatturato di $589,1 milioni, in aumento rispetto ai $553,3 milioni dello stesso trimestre dell'anno precedente. L'azienda ha registrato una perdita netta secondo i principi contabili GAAP di $(33,0) milioni, ossia $(1,35) per azione diluita, rispetto a un utile netto di $7,2 milioni, ovvero $0,30 per azione nel terzo trimestre del 2023. Il margine lordo è migliorato al 34,8% dal 33,2%. L'EBITDA rettificato è aumentato a $94,8 milioni rispetto ai $89,8 milioni. L'azienda ha aggiornato le previsioni per l'intero anno fiscale 2024, prevedendo un EBITDA rettificato di $355-365 milioni e un utile per azione rettificato di $5,40-5,70.

ICU Medical (NASDAQ:ICUI) reportó los resultados financieros del tercer trimestre de 2024, con ingresos de $589.1 millones, un aumento respecto a los $553.3 millones del año anterior. La compañía presentó una pérdida neta de $(33.0) millones, o $(1.35) por acción diluida, en comparación con una ganancia neta de $7.2 millones, o $0.30 por acción en el tercer trimestre de 2023. El margen bruto mejoró al 34.8% desde el 33.2%. El EBITDA ajustado aumentó a $94.8 millones desde $89.8 millones. La compañía actualizó su guía para el año fiscal 2024, proyectando un EBITDA ajustado de $355-365 millones y un EPS ajustado de $5.40-5.70.

ICU Medical (NASDAQ:ICUI)가 2024년 3분기 재무 결과를 발표했습니다. 매출은 $589.1백만으로, 지난해 같은 기간의 $553.3백만에서 증가했습니다. 회사는 GAAP 기준으로 $(33.0)백만의 순손실을 기록했으며, 이는 희석 주당 $(1.35)에 해당합니다. 이는 2023년 3분기 $7.2백만의 순이익, 즉 주당 $0.30과 비교됩니다. 총 마진은 33.2%에서 34.8%로 개선되었습니다. 조정된 EBITDA는 $89.8백만에서 $94.8백만으로 증가했습니다. 회사는 2024 회계연도에 대한 예측을 업데이트하며, 조정된 EBITDA를 $355-365백만, 조정된 EPS를 $5.40-5.70으로 예상하고 있습니다.

ICU Medical (NASDAQ:ICUI) a annoncé les résultats financiers du troisième trimestre de 2024, avec des revenus de $589,1 millions, en hausse par rapport à $553,3 millions de l'année précédente. L'entreprise a enregistré une perte nette selon les normes GAAP de $(33,0) millions, soit $(1,35) par action diluée, comparativement à un bénéfice net de $7,2 millions, soit $0,30 par action au T3 2023. La marge brute a été améliorée à 34,8% contre 33,2%. L'EBITDA ajusté a augmenté à $94,8 millions contre $89,8 millions. L'entreprise a mis à jour ses prévisions pour l'exercice 2024, s'attendant à un EBITDA ajusté de $355-365 millions et un bénéfice par action ajusté de $5,40-5,70.

ICU Medical (NASDAQ:ICUI) hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit einem Umsatz von $589,1 Millionen, was einem Anstieg gegenüber $553,3 Millionen im Vorjahr entspricht. Das Unternehmen verzeichnete einen GAAP-Nettoverlust von $(33,0) Millionen oder $(1,35) pro verwässerter Aktie, im Vergleich zu einem Nettogewinn von $7,2 Millionen oder $0,30 pro Aktie im 3. Quartal 2023. Die Bruttomarge verbesserte sich auf 34,8% von 33,2%. Das bereinigte EBITDA stieg von $89,8 Millionen auf $94,8 Millionen. Das Unternehmen aktualisierte seine Prognosen für das Geschäftsjahr 2024 und erwartet ein bereinigtes EBITDA von $355-365 Millionen und ein bereinigtes EPS von $5,40-5,70.

Positive
  • Revenue increased 6.5% YoY to $589.1 million
  • Gross margin improved to 34.8% from 33.2% YoY
  • Adjusted EBITDA grew to $94.8 million from $89.8 million YoY
  • All product lines showed positive revenue growth
  • Raised FY2024 adjusted EPS guidance to $5.40-5.70 from $4.95-5.35
Negative
  • GAAP net loss of $(33.0) million compared to $7.2 million profit last year
  • EPS declined to $(1.35) from $0.30 YoY
  • Lowered FY2024 GAAP EPS guidance to $(5.28)-$(4.98) from $(4.78)-$(4.38)

Insights

ICU Medical's Q3 2024 shows mixed performance with notable improvements in revenue and margins, but concerning bottom-line results. Revenue increased by 6.5% to $589.1 million, with gross margin expanding to 34.8%. However, the company swung to a significant loss of $33.0 million compared to a profit last year.

The consumables segment led growth with a 9.5% increase, while all product lines showed positive momentum. The updated guidance suggests operational improvements, with adjusted EBITDA guidance tightened to $355-365 million and adjusted EPS raised to $5.40-5.70. However, the widening GAAP loss projection raises concerns about underlying cost structures and operational efficiency.

The divergence between GAAP and adjusted metrics indicates significant non-operational factors affecting profitability, warranting closer scrutiny of the company's financial health and operational strategy.

The medical device sector context makes ICU Medical's performance particularly noteworthy. The company's 6.5% revenue growth outpaces the industry average, suggesting market share gains. The consumables segment's strong performance indicates improving hospital utilization rates and procedure volumes.

The Vital Care segment's modest growth and increased Pfizer contract manufacturing revenue ($9.1 million vs $6.7 million) demonstrate diversification benefits. However, margin improvements haven't translated to bottom-line growth, suggesting potential market pricing pressures or cost challenges that could affect long-term competitiveness in the $4.3B market cap company.

SAN CLEMENTE, Calif., Nov. 12, 2024 (GLOBE NEWSWIRE) -- ICU Medical, Inc. (Nasdaq:ICUI), a leader in the development, manufacture and sale of innovative medical products, today announced financial results for the quarterly period ended September 30, 2024.

Third Quarter 2024 Results

Third quarter 2024 revenue was $589.1 million, as compared to $553.3 million in the same period in the prior year. GAAP gross profit for the third quarter of 2024 was $204.9 million, as compared to $183.9 million in the same period in the prior year. GAAP gross margin for the third quarter of 2024 was 34.8%, as compared to 33.2% in the same period in the prior year. GAAP net loss for the third quarter of 2024 was $(33.0) million, or $(1.35) per diluted share, as compared to GAAP net income of $7.2 million, or $0.30 per diluted share, for the third quarter of 2023. Adjusted diluted earnings per share for the third quarter of 2024 was $1.59 as compared to $1.57 for the third quarter of 2023. Adjusted EBITDA was $94.8 million for the third quarter of 2024 as compared to $89.8 million for the third quarter of 2023.

Adjusted EBITDA and adjusted diluted earnings per share are measures calculated and presented on the basis of methodologies other than in accordance with GAAP. Please refer to the Use of Non-GAAP Financial Information following the financial statements herein for further discussion and reconciliations of these measures to GAAP measures.

Vivek Jain, ICU Medical’s Chief Executive Officer, said, “Third quarter results were generally in line with our expectations."

Revenues by product line for the three and nine months ended September 30, 2024 and 2023 were as follows (in millions):

  Three months ended
September 30,
   Nine months ended
September 30,
  
Product Line  2024  2023 $ Change  2024  2023 $ Change
Consumables $264.9 $242.0 $22.9 $770.7 $715.1 $55.6
Infusion Systems  159.8  149.0  10.8  480.7  463.9  16.8
Vital Care*  164.5  162.3  2.2  500.8  492.3  8.5
Total** $589.2 $553.3 $35.9 $1,752.2 $1,671.3 $80.9

*Vital Care includes Pfizer contract manufacturing revenue of $9.1 million and $38.6 million for the three and nine months ended September 30, 2024, respectively, as compared to $6.7 million and $33.6 million for the three and nine months ended September 30, 2023.
** Totals may differ from the income statement due to the rounding of product lines.

Fiscal Year 2024 Guidance

For Fiscal Year 2024 the Company updated its estimates of GAAP net loss from a range of $(118) to $(108) to a range of $(130) to $(122) and GAAP diluted loss per share from a range of $(4.78) to $(4.38) to a range of $(5.28) to $(4.98). The Company updated the estimated range of its full year 2024 guidance of adjusted EBITDA from a range of $345 million to $365 million to a range of $355 million to $365 million and updated the estimated range of diluted earnings per share from a range of $4.95 to $5.35 to a range of $5.40 to $5.70.

Conference Call

The Company will host a conference call to discuss its third quarter 2024 financial results, today at 4:30 p.m. ET (1:30 p.m. PT). The call can be accessed at (800) 343-5172, conference ID "ICUMED". The conference call will be simultaneously available by webcast, which can be accessed by going to the Company's website at www.icumed.com, clicking on the Investors tab, clicking on Event Calendar and clicking on the Webcast icon and following the prompts. The webcast will also be available by replay.

About ICU Medical

ICU Medical (Nasdaq: ICUI) is a global leader in infusion systems, infusion consumables and high-value critical care products used in hospital, alternate site and home care settings. Our team is focused on providing quality, innovation and value to our clinical customers worldwide. ICU Medical is headquartered in San Clemente, California. More information about ICU Medical can be found at www.icumed.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as ''will,'' ''expect,'' ''believe,'' ''could,'' ''would,'' ''estimate,'' ''continue,'' ''build,'' ''expand'' or the negative thereof or comparable terminology and may include (without limitation) information regarding the Company's expectations, goals and intentions regarding the future. These forward-looking statements are based on management's current expectations, estimates, forecasts and projections about the Company and assumptions management believes are reasonable, all of which are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated in the forward-looking statements. These risks and uncertainties include, but are not limited to, decreased demand for the Company's products, decreased free cash flow, changes in product mix, increased competition from competitors, lack of growth or improving efficiencies, unexpected changes in the Company's arrangements with its largest customers, the impact from fluctuations in foreign currency exchange rates, the impact of inflation on raw materials, freight charges and labor, rising interest rates, and the Company's ability to meet expectations regarding the ongoing integration of the Smiths Medical business. Future results are subject to risks and uncertainties, including the risk factors, and other risks and uncertainties, described in the Company's filings with the Securities and Exchange Commission ("SEC"), which include those in the Company's most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and our subsequent filings with the SEC. Forward-looking statements contained in this press release are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise unless required by law.


ICU MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
 
 September 30,
2024
 December 31,
2023
    
ASSETS   
CURRENT ASSETS:   
Cash and cash equivalents$312,512  $254,222 
Short-term investment securities    501 
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENT SECURITIES 312,512   254,723 
Accounts receivable, net of allowance for doubtful accounts 173,983   161,566 
Inventories 692,038   709,360 
Prepaid income taxes 5,787   21,983 
Prepaid expenses and other current assets 73,735   73,640 
TOTAL CURRENT ASSETS 1,258,055   1,221,272 
    
PROPERTY, PLANT AND EQUIPMENT, net 595,627   612,909 
OPERATING LEASE RIGHT-OF-USE ASSETS 59,757   69,909 
GOODWILL 1,478,293   1,472,446 
INTANGIBLE ASSETS, net 785,823   870,588 
DEFERRED INCOME TAXES 40,646   37,295 
OTHER ASSETS 86,837   94,020 
TOTAL ASSETS$4,305,038  $4,378,439 
    
LIABILITIES AND STOCKHOLDERS’ EQUITY   
CURRENT LIABILITIES:   
Accounts payable$168,562  $150,030 
Accrued liabilities 325,728   268,215 
Current portion of long-term debt 51,000   51,000 
Income tax payable 2,767   7,714 
Contingent earn-out liability 1,500   4,879 
TOTAL CURRENT LIABILITIES 549,557   481,838 
    
CONTINGENT EARN-OUT LIABILITY    3,991 
LONG-TERM DEBT 1,543,342   1,577,770 
OTHER LONG-TERM LIABILITIES 80,389   100,497 
DEFERRED INCOME TAXES 48,538   55,873 
INCOME TAX LIABILITY 34,625   35,060 
COMMITMENTS AND CONTINGENCIES   
STOCKHOLDERS’ EQUITY:   
Convertible preferred stock, $1.00 par value; Authorized — 500 shares; Issued and outstanding — none     
Common stock, $0.10 par value; Authorized — 80,000 shares; Issued —24,461 and 24,144 shares at September 30, 2024 and December 31, 2023, respectively, and outstanding — 24,459 and 24,141 shares at September 30, 2024 and December 31, 2023, respectively 2,446   2,414 
Additional paid-in capital 1,394,799   1,366,493 
Treasury stock, at cost (208)  (262)
Retained earnings 713,986   807,846 
Accumulated other comprehensive loss (62,436)  (53,081)
TOTAL STOCKHOLDERS' EQUITY 2,048,587   2,123,410 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$4,305,038  $4,378,439 


ICU MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
 
 Three months ended
September 30,
 Nine months ended
September 30,
  2024   2023   2024   2023 
TOTAL REVENUES$589,131  $553,311  $1,752,241  $1,671,270 
COST OF GOODS SOLD 384,279   369,391   1,154,717   1,102,982 
GROSS PROFIT 204,852   183,920   597,524   568,288 
OPERATING EXPENSES:       
Selling, general and administrative 162,707   148,609   479,913   452,076 
Research and development 21,028   20,870   66,260   62,933 
Restructuring, strategic transaction and integration 16,828   7,160   50,069   30,527 
Change in fair value of contingent earn-out (3,947)  (15,572)  (3,991)  (12,256)
TOTAL OPERATING EXPENSES 196,616   161,067   592,251   533,280 
INCOME FROM OPERATIONS 8,236   22,853   5,273   35,008 
INTEREST EXPENSE, net (24,683)  (24,175)  (72,296)  (70,811)
OTHER EXPENSE, net (1,481)  (4,044)  (7,206)  (5,815)
LOSS BEFORE INCOME TAXES (17,928)  (5,366)  (74,229)  (41,618)
(PROVISION) BENEFIT FOR INCOME TAXES (15,055)  12,604   (19,631)  29,110 
NET (LOSS) INCOME$(32,983) $7,238  $(93,860) $(12,508)
NET (LOSS) INCOME PER SHARE       
Basic$(1.35) $0.30  $(3.85) $(0.52)
Diluted$(1.35) $0.30  $(3.85) $(0.52)
WEIGHTED AVERAGE NUMBER OF SHARES       
Basic 24,438   24,132   24,353   24,075 
Diluted 24,438   24,368   24,353   24,075 


ICU MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
 
 Nine months ended
September 30,
  2024   2023 
CASH FLOWS FROM OPERATING ACTIVITIES:   
Net loss$(93,860) $(12,508)
Adjustments to reconcile net loss to net cash provided by operating activities:   
Depreciation and amortization 166,519   171,615 
Noncash lease expense 16,008   16,543 
Provision for doubtful accounts 1,381   865 
Provision for warranty, returns and field action 1,801   5,597 
Stock compensation 34,366   29,878 
Loss on disposal of property, plant and equipment and other assets 184   1,757 
Debt issuance costs amortization 5,111   5,108 
Change in fair value of contingent earn-out liability (3,991)  (12,256)
Usage of spare parts 13,965   13,587 
Other 7,256   4,407 
Changes in operating assets and liabilities, net of amounts acquired:   
Accounts receivable (11,517)  43,086 
Inventories 9,416   (66,662)
Prepaid expenses and other current assets (11,188)  11,295 
Other assets (17,540)  (18,860)
Accounts payable 21,086   (65,049)
Accrued liabilities 20,484   (10,532)
Income taxes, including excess tax benefits and deferred income taxes 4,360   (42,939)
Net cash provided by operating activities 163,841   74,932 
CASH FLOWS FROM INVESTING ACTIVITIES:   
Purchases of property, plant and equipment (55,292)  (53,956)
Proceeds from sale of assets 695   1,481 
Intangible asset additions (8,317)  (7,742)
Proceeds from sale and maturities of investment securities 500   2,920 
Net cash used in investing activities (62,414)  (57,297)
CASH FLOWS FROM FINANCING ACTIVITIES:   
Principal repayments of long-term debt (38,250)  (22,250)
Proceeds from exercise of stock options 5,883   4,022 
Payments on finance leases (775)  (681)
Payments of contingent earn-out liability (2,600)   
Tax withholding payments related to net share settlement of equity awards (11,867)  (9,221)
Net cash used in financing activities (47,609)  (28,130)
Effect of exchange rate changes on cash 4,472   (1,097)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 58,290   (11,592)
CASH AND CASH EQUIVALENTS, beginning of period 254,222   208,784 
CASH AND CASH EQUIVALENTS, end of period$312,512  $197,192 


Use of Non-GAAP Financial Information

This press release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The non-GAAP financial measures should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. There are material limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may not be comparable to similarly titled non-GAAP financial measures used by other companies, including peer companies. Our management believes that the non-GAAP data provides useful supplemental information to management and investors regarding our performance and facilitates a more meaningful comparison of results of operations between current and prior periods. We use non-GAAP financial measures in addition to and in conjunction with GAAP financial measures to analyze and assess the overall performance of our business, in making financial, operating and planning decisions, and in determining executive incentive compensation.

The non-GAAP financial measures include adjusted EBITDA, adjusted revenue, adjusted gross profit, adjusted selling, general and administrative, adjusted research and development, adjusted restructuring, strategic transaction and integration, adjusted change in fair value of contingent earn-out, adjusted (loss) income from operations, adjusted other expense, net, adjusted (loss) income before income taxes, adjusted (provision) benefit for income taxes, adjusted net (loss) income and adjusted diluted (loss) earnings per share, all of which exclude special items because they are highly variable or unusual and impact year-over-year comparisons.

For the three months ended September 30, 2024 and 2023, special items include the following:

Contract manufacturing: We manufacture certain products for Pfizer in accordance with a manufacturing services agreement. We do not include the contract revenue in our adjusted revenue as the commercial relationship under this agreement was originally negotiated contemporaneously with a business combination and is not indicative of a normal market transaction.

Stock compensation expense: Stock-based compensation is generally fixed at the time the stock-based instrument is granted and amortized over a period of several years. The value of stock options is determined using a complex formula that incorporates factors, such as market volatility, that are beyond our control. The value of our restricted stock awards is determined using the grant date stock price, which may not be indicative of our operational performance over the expense period. Additionally, in order to establish the fair value of performance-based stock awards, which are currently an element of our ongoing stock-based compensation, we are required to apply judgment to estimate the probability of the extent to which performance objectives will be achieved. Based on the above factors, we believe it is useful to exclude stock-based compensation in order to better understand our operating performance.

Intangible asset amortization expense: We do not acquire businesses or capitalize certain patent costs on a predictable cycle. The amount of purchase price allocated to intangible assets and the term of amortization can vary significantly and are unique to each acquisition. Capitalized patent costs can vary significantly based on our current level of development activities. We believe that excluding amortization of intangible assets provides the users of our financial statements with a consistent basis for comparison across accounting periods.

Restructuring, strategic transaction and integration: We incur restructuring and strategic transaction charges that result from events, which arise from unforeseen circumstances and/or often occur outside of the ordinary course of our ongoing business. Although these events are reflected in our GAAP financial statements, these unique transactions may limit the comparability of our ongoing operations with prior and future periods.

Change in fair value of contingent earn-out: We exclude the impact of certain amounts recorded in connection with business combinations. We exclude items that are either non-cash or not normal, recurring operating expenses due to their nature, variability of amounts, and lack of predictability as to occurrence and/or timing.

Quality system and product-related remediation: We exclude certain quality system and product-related remediation charges in determining our non-GAAP financial measures as they may limit the comparability of our ongoing operations with prior and future periods and distort the evaluation of our normal operating performance.

Legal settlement: Occasionally, we are involved in legal proceedings that may result in one-time legal settlements. We exclude these settlements as they have no direct correlation to the operation of our ongoing business.

Asset write-offs and similar charges: Occasionally, we may write-off certain assets or we may sell certain assets. We exclude the non-cash gain/loss on the write-off/sale of these assets in determining our non-GAAP financial measures as they may limit the comparability of our ongoing operations with prior and future periods and distort the evaluation of our normal operating performance.

From time to time in the future, there may be other items that we may exclude if we believe that doing so is consistent with the goal of providing useful information to investors and management.

In addition to the above special items, Adjusted EBITDA additionally excludes the following items from net income:

Depreciation expense: We exclude depreciation expense in deriving adjusted EBITDA because companies utilize productive assets of different ages and the depreciable lives can vary significantly resulting in considerable variability in depreciation expense among companies.

Interest, net: We exclude interest in deriving adjusted EBITDA as interest can vary significantly among companies depending on a company's level of income generating instruments and/or level of debt.

Taxes: We exclude taxes in deriving adjusted EBITDA as taxes are deemed to be non-core to the business and may limit the comparability of our ongoing operations with prior and future periods and distort the evaluation of our normal operating performance.

Adjusted Diluted EPS excludes from diluted EPS, net of tax, the special items listed above. The tax effect on the special items is calculated using the specific tax rate applied to each adjustment based on the nature of the item/or the tax jurisdiction in which the item has been recorded. Additionally, adjusted diluted EPS may exclude the income tax impact of certain non-recurring discrete tax items that are not reflective of income tax expense/benefit incurred as a result of current period earnings/ loss, as well as the impact of certain deferred tax valuation allowances when assessed against non-GAAP profitability.

We also present Free cash flow as a non-GAAP financial measure as management believes that this is an important measure for use in evaluating overall company financial performance as it measures our ability to generate additional cash flow from business operations. Free cash flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited and does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as supplemental to our entire statement of cash flows.

The following tables reconcile our non-GAAP financial measures for the periods presented:

ICU MEDICAL, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
(In thousands, except per share data)
 
  Adjusted EBITDA
 Three months ended
September 30,
  2024   2023 
GAAP net (loss) income$(32,983) $7,238 
    
Non-GAAP adjustments:   
Interest, net 24,683   24,175 
Stock compensation expense 11,770   10,947 
Depreciation and amortization expense 55,675   58,371 
Restructuring, strategic transaction and integration 16,828   7,160 
Change in fair value of contingent earn-out (3,947)  (15,572)
Quality system and product-related charges 7,737   4,016 
Asset write-offs and similar charges    6,083 
Legal settlement 20    
Provision (Benefit) for income taxes 15,055   (12,604)
Total non-GAAP adjustments 127,821   82,576 
    
Adjusted EBITDA$94,838  $89,814 


ICU MEDICAL, INC. AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
(In thousands, except percentages and per share)

The Company’s U.S. GAAP results for the three months ended September 30, 2024 included special items which impacted the U.S. GAAP measures as follows:

 Total
revenues
Gross
profit
Selling,
general and
administrative
Research
and
development
Restructuring,
strategic
transaction
and
integration
Change in
fair value of
contingent
earn-out
Income
(loss) from
operations
(Loss)
income
before
income
taxes
Provision
for income
taxes
Net (loss)
income
Diluted
(loss)
earnings
per share
Reported (GAAP)$589,131 $204,852 $162,707 $21,028 $16,828 $(3,947)$8,236 $(17,928)$(15,055)$(32,983)$(1.35)
Reported percent of total revenues (or percent of (loss) income before income taxes for benefit (provision) for income taxes)  35% 28% 4% 3%(1)% 1%(3)%(84.0)%(6)% 
Contract manufacturing (9,063)                   
Stock compensation expense   1,816  (9,287) (667)     11,770  11,770  (2,825) 8,945  0.36 
Amortization expense   692  (33,611)       34,303  34,303  (8,338) 25,965  1.06 
Restructuring, strategic transaction and integration         (16,828)   16,828  16,828  (4,043) 12,785  0.52 
Change in fair value of contingent earn-out           3,947  (3,947) (3,947)   (3,947) (0.16)
Quality system and product-related remediation   7,737          7,737  7,737  (1,839) 5,898  0.24 
Legal settlement     (20)       20  20    20   
Tax expense from valuation allowance*                 22,394  22,394  0.91 
Earnings per share impact on net loss due to basic versus diluted weighted average shares                     0.01 
Adjusted (Non-GAAP)**$580,068 $215,097 $119,789 $20,361 $ $ $74,947 $48,783 $(9,706)$39,077 $1.59 
Adjusted percent of total revenues (or percent of (loss) income before income taxes for benefit (provision) for income taxes)  37% 21% 4% % % 13% 8% 19.9% 7% 

_______________________

* The Company’s non-GAAP annual effective tax rate is calculated without the tax expense related to the valuation allowance against certain U.S. Federal and State deferred tax assets. The valuation allowance was recorded based on an assessment of available positive and negative evidence, including, predominantly, an estimate that we will be in a three-year cumulative U.S. loss position on a GAAP basis as of September 30, 2024. However, based on the same assessment, including, predominantly, our being, and expectation of remaining for 2024, in a three-year cumulative U.S. income position on a non-GAAP basis, which excludes the impact of our non-GAAP adjustments, we concluded that recording a valuation allowance would not have been appropriate for non-GAAP reporting. As a result, the tax expense for the valuation allowance was added back to our calculation of non-GAAP annual effective tax rate.
** Amounts may not foot due to rounding.

ICU MEDICAL, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)(continued)
(In thousands, except percentages and per share)

The Company’s U.S. GAAP results for the three months ended September 30, 2023 included special items which impacted the U.S. GAAP measures as follows:

 Total
revenues
Gross
profit
Selling,
general and
administrative
Research
and
development
Restructuring,
strategic
transaction
and
integration
Change in
fair value of
contingent
earn-out
Income
from
operations
Other
expense,
net
(Loss)
income
before
income
taxes
Benefit
(provision)
for income
taxes
Net
income
Diluted
earnings
per share
Reported (GAAP)$553,311 $183,920 $148,609 $20,870 $7,160 $(15,572)$22,853 $(28,219)$(5,366)$12,604 $7,238 $0.30 
Reported percent of total revenues (or percent of (loss) income before income taxes for benefit (provision) for income taxes)  33% 27% 4% 1%(3)% 4%(5)%(1)% 234.9% 1% 
Contract manufacturing (6,696)                     
Stock compensation expense   1,754  (8,743) (450)     10,947    10,947  (2,627) 8,320  0.34 
Amortization expense     (33,411)       33,411    33,411  (8,179) 25,232  1.04 
Restructuring, strategic transaction and integration         (7,160)   7,160    7,160  (1,722) 5,438  0.22 
Change in fair value of contingent earn-out           15,572  (15,572)   (15,572)   (15,572) (0.64)
Quality system and product-related remediation   4,016          4,016    4,016  (974) 3,042  0.12 
Asset write-offs and similar charges   6,306          6,306  223  6,083  (1,513) 4,570  0.19 
Adjusted (Non-GAAP)*$546,615 $195,996 $106,455 $20,420 $ $ $69,121 $(27,996)$40,679 $(2,411)$38,268 $1.57 
Adjusted percent of total revenues (or percent of (loss) income before income taxes for benefit (provision) for income taxes)  36% 19% 4% % % 13%(5)% 7% 5.9% 7% 

_____________
* Amounts may not foot due to rounding


ICU MEDICAL, INC. AND SUBSIDIARIES
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited)
(In thousands)
 
 Three months ended
September 30,
 Nine months ended
September 30,
  2024   2023   2024   2023 
Net cash provided by operating activities$36,097   35,161  $163,841  $74,932 
Purchase of property, plant and equipment (19,910)  (21,467)  (55,292)  (53,956)
Proceeds from sale of assets 3   50   695   1,481 
Free cash flow$16,190  $13,744  $109,244  $22,457 


ICU MEDICAL, INC. AND SUBSIDIARIES
Fiscal Year 2024
Outlook (Unaudited)
(In millions, except per share data)
 
 Low End of Guidance High End of Guidance
GAAP net loss$(130) $(122)
    
Non-GAAP adjustments:   
Interest, net 97   97 
Stock compensation expense 46   46 
Depreciation and amortization expense 223   223 
Restructuring, strategic transaction and integration 65   65 
Quality and regulatory initiatives and remediation 30   30 
Change in fair value of contingent earn-out (4)  (4)
Provision for income taxes 28   30 
Total non-GAAP adjustments$485  $487 
    
Adjusted EBITDA$355  $365 
    
    
    
GAAP basic/diluted loss per share$(5.28) $(4.98)
    
Non-GAAP adjustments:   
Stock compensation expense 1.87   1.87 
Amortization expense 5.53   5.53 
Restructuring, strategic transaction and integration 2.64   2.64 
Quality and regulatory initiatives and remediation 1.22   1.22 
Change in fair value of contingent earn-out (0.16)  (0.16)
Tax expense from valuation allowance 2.29   2.29 
Estimated income tax impact from adjustments (2.71)  (2.71)
Adjusted diluted earnings per share$5.40  $5.70 


CONTACT:
ICU Medical, Inc.                                        
Brian Bonnell, Chief Financial Officer
(949) 366-2183
     
ICR, Inc.
John Mills, Partner
(646) 277-1254


FAQ

What was ICU Medical's (ICUI) revenue in Q3 2024?

ICU Medical reported revenue of $589.1 million in Q3 2024, an increase from $553.3 million in Q3 2023.

What was ICU Medical's (ICUI) earnings per share in Q3 2024?

ICU Medical reported a GAAP loss of $(1.35) per diluted share in Q3 2024, compared to earnings of $0.30 per diluted share in Q3 2023.

What is ICU Medical's (ICUI) updated guidance for fiscal year 2024?

ICU Medical updated its FY2024 guidance with adjusted EBITDA of $355-365 million and adjusted EPS of $5.40-5.70.

How did ICU Medical's (ICUI) gross margin perform in Q3 2024?

ICU Medical's gross margin improved to 34.8% in Q3 2024 from 33.2% in Q3 2023.

ICU Medical Inc

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3.78B
22.57M
7.83%
101.02%
2.69%
Medical Instruments & Supplies
Surgical & Medical Instruments & Apparatus
Link
United States of America
SAN CLEMENTE