Haemonetics’ (HAE) major growth drivers include Plasma and the Hospital business. However, rising costs are a concern. The stock carries a Zacks Rank #3 (Hold) currently.Haemonetics’ Plasma business unit focuses on the collection of source plasma for pharmaceutical manufacturers using apheresis devices that only collect plasma. The demand for source plasma has been growing due to an expanding end-user market for plasma-derived biopharmaceuticals. The business also offers software solutions to support the op ...

Haemonetics (HAE) is likely to grow in the coming quarters due to its evolving Hospital portfolio, which is creating new opportunities for growth and diversification. The favorable prospects within the Plasma franchise also buoy optimism. The robust utilization of TEG disposables in the United States and China is driving revenues in Hemostasis Management, which is highly encouraging.Meanwhile, the impacts of economic uncertainties and foreign exchange remain concerns for the company’s operations.In the past ...

BOSTON, April 10, 2024 /PRNewswire/ -- Haemonetics Corporation (NYSE: HAE) announced that the Company intends to publish fourth quarter and fiscal year 2024 financial results at 6:00 am ET on Thursday, May 9, 2024. The Company will hold a conference call with investors and analysts to discuss results and answer questions at 8:00 am ET on May 9, 2024.The call can be accessed via teleconference at: Q4 2024 Haemonetics Corporation Earnings Conference Call. Once registration is completed, participants will rece ...

Haemonetics Corporation (HAE) announced receipt of the FDA 510(k) clearance for the TEG 6s hemostasis analyzer system Global Hemostasis-HN assay cartridge. This new cartridge expands Haemonetics' TEG 6s viscoelastic testing capabilities to include fully heparinized patients undergoing adult cardiovascular surgeries/procedures and liver transplants in both laboratory and point-of-care settings.The recent development will fortify Haemonetics’ portfolio of hemostasis diagnostic systems.More on TEG 6s Cartridge ...

BOSTON, April 4, 2024 /PRNewswire/ -- Haemonetics Corporation (NYSE: HAE), a global medical technology company focused on delivering innovative medical solutions to drive better patient outcomes, announced today that it has received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for the TEG® 6s hemostasis analyzer system Global Hemostasis-HN assay cartridge. This new cartridge extends Haemonetics' TEG 6s viscoelastic testing capabilities to serve fully heparinized patients in adult cardio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: December 30, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ☐ 1934 Commission File Number: 001-14041 HAEMONETICS CORPORATION (Exact name of registrant as specified in its charter) Massachusetts 04-2882273 (State or other jurisdiction of incorporation or organizat ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q2 FY24 detail income, balance sheet, equity, and cash flow performance Condensed Consolidated Statements of Income (Six Months Ended) | Metric | Six Months Ended Sep 30, 2023 (in thousands) | Six Months Ended Oct 1, 2022 (in thousands) | | :--- | :--- | :--- | | Net revenues | $629,515 | $558,943 | | Gross profit | $337,775 | $300,141 | | Operating income | $88,962 | $77,499 | | Net income | $65,950 | $53,074 | | Diluted EPS | $1.28 | $1.03 | Condensed Consolidated Balance Sheet Highlights | Metric | Sep 30, 2023 (in thousands) | Apr 1, 2023 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $351,005 | $284,466 | | Total current assets | $865,744 | $769,722 | | Total assets | $2,011,275 | $1,934,825 | | Long-term debt | $748,662 | $754,102 | | Total stockholders' equity | $893,660 | $817,997 | Condensed Consolidated Statements of Cash Flows (Six Months Ended) | Metric | Six Months Ended Sep 30, 2023 (in thousands) | Six Months Ended Oct 1, 2022 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $118,210 | $129,032 | | Net cash used in investing activities | ($40,396) | ($89,282) | | Net cash used in financing activities | ($7,770) | ($49,081) | | Net Change in Cash and Cash Equivalents | $66,539 | ($18,296) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, OpSens acquisition, restructuring, impairment, debt, and legal contingency disclosures - On October 10, 2023, the company entered into a definitive agreement to acquire OpSens, Inc. for approximately **USD $253.0 million** in an all-cash transaction, expected to close by the end of January 2024[21](index=21&type=chunk) - Under the Operational Excellence Program (2020 Program), the company incurred **$4.2 million** in restructuring and related costs during the six months ended September 30, 2023. Total cumulative charges under the program are **$71.4 million**[28](index=28&type=chunk) - In Q2 fiscal 2024, the company recorded an intangible asset impairment charge of **$10.4 million** related to the enicor GmbH acquisition within the Hospital business unit[46](index=46&type=chunk) - In August 2023, a voluntary recall of certain Whole Blood products resulted in cumulative charges of **$6.5 million** for inventory, returns, and customer claims as of September 30, 2023[83](index=83&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=23&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, highlighting revenue growth, operating income changes, and strategic focus on Plasma and Hospital Financial Summary (Three Months Ended Sep 30, 2023) | Metric | Q2 FY24 (in thousands) | Q2 FY23 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $318,183 | $297,485 | 7.0% | | Gross profit | $170,510 | $157,878 | 8.0% | | Operating income | $35,303 | $46,732 | (24.5)% | | Net income | $24,908 | $33,197 | (25.0)% | - The company's strategy focuses on growth in the Plasma and Hospital segments, while managing the challenging Blood Center market through cost reduction and portfolio evaluation[92](index=92&type=chunk) - The company announced plans to end-of-life the ClotPro system (Hospital) and whole blood inline collection products (Blood Center), which are not expected to materially impact fiscal 2024 results[95](index=95&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) This section details Q2 FY24 revenue by business unit, gross profit, and operating expense drivers, including impairment Net Revenues by Business Unit (Three Months Ended Sep 30, 2023) | Business Unit | Q2 FY24 Revenue (in thousands) | Q2 FY23 Revenue (in thousands) | Reported Growth | | :--- | :--- | :--- | :--- | | Plasma | $141,900 | $127,893 | 11.0% | | Blood Center | $68,098 | $73,683 | (7.6)% | | Hospital | $103,143 | $90,856 | 13.5% | - The increase in operating expenses for Q2 FY24 was driven by a **$10.4 million** impairment of intangible assets related to the enicor GmbH acquisition[111](index=111&type=chunk)[115](index=115&type=chunk) - SG&A expenses increased **14.0%** in Q2 FY24 due to higher investments in sales and marketing, costs for an ERP system upgrade, and litigation-related charges[113](index=113&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity relies on cash, operations, and credit facilities, sufficient for the OpSens acquisition and future needs Key Liquidity Indicators | Metric | Sep 30, 2023 (in thousands) | Apr 1, 2023 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $351,005 | $284,466 | | Working capital | $601,529 | $517,906 | | Net debt position | ($411,223) | ($481,420) | - Net cash from operating activities decreased to **$118.2 million** for the six months ended Sep 30, 2023, from **$129.0 million** in the prior year, primarily due to an increase in inventory[126](index=126&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to foreign exchange and interest rate market risks, mitigated by derivative instruments and swaps - The company utilizes forward foreign currency contracts to hedge anticipated cash flows, primarily in Japanese Yen and Euro[134](index=134&type=chunk)[143](index=143&type=chunk) - As of September 30, 2023, the company had **$269.5 million** in variable-rate debt, with interest rate swaps on a notional amount of **$217 million** to effectively convert borrowings to a fixed rate[146](index=146&type=chunk) [Controls and Procedures](index=32&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with a new ERP system potentially impacting future internal controls - The CEO and CFO concluded that disclosure controls and procedures were effective as of September 30, 2023[147](index=147&type=chunk) - The company is implementing a new global ERP system in phases, which may materially affect internal control over financial reporting in the future[149](index=149&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=33&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to Note 14 for legal matters, including a qui tam action and a BIPA class action lawsuit - The company is cooperating with a subpoena from the U.S. Attorney's Office regarding its apheresis and autotransfusion devices. The Department of Justice has declined to intervene in the related qui tam action[81](index=81&type=chunk) - The company has recorded a total accrual of approximately **$8.7 million** related to a putative class action complaint alleging violations of the Illinois Biometric Information Privacy Act (BIPA)[82](index=82&type=chunk) [Risk Factors](index=33&type=section&id=ITEM%201A.%20Risk%20Factors) There are no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K - There are no material changes from the Risk Factors previously disclosed in the company's Annual Report on Form 10-K[151](index=151&type=chunk) [Other Information](index=33&type=section&id=ITEM%205.%20Other%20Information) This section discloses an executive officer adopted a Rule 10b5-1 trading plan for common stock sales - On August 31, 2023, Josep Llorens, EVP of Global Manufacturing and Supply Chain, adopted a Rule 10b5-1 trading plan to sell **8,857 shares** of common stock, expiring August 16, 2024[155](index=155&type=chunk)

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements, management's discussion, and market risk disclosures [Financial Statements](index=3&type=section&id=ITEM%201.%20Financial%20Statements) Unaudited Q1 FY2024 financial statements show significant revenue and net income growth, with increased assets and equity, despite reduced operating cash flow from inventory build-up [Condensed Consolidated Statements of Income and Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) This statement details the company's net revenues, gross profit, operating income, and net income for the quarter Income Statement Summary (Three Months Ended) | Metric | July 1, 2023 | July 2, 2022 | Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | $311,332K | $261,458K | +19.1% | | **Gross Profit** | $167,265K | $142,263K | +17.6% | | **Operating Income** | $53,659K | $30,767K | +74.4% | | **Net Income** | $41,042K | $19,877K | +106.5% | | **Diluted EPS** | $0.80 | $0.38 | +110.5% | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and stockholders' equity at quarter-end Balance Sheet Highlights | Metric | July 1, 2023 | April 1, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $285,719K | $284,466K | | **Total current assets** | $801,607K | $769,722K | | **Total assets** | $1,962,258K | $1,934,825K | | **Total current liabilities** | $236,939K | $251,816K | | **Long-term debt, net** | $751,381K | $754,102K | | **Total stockholders' equity** | $864,616K | $817,997K | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement outlines the company's cash inflows and outflows from operating, investing, and financing activities - Net cash from operating activities decreased to **$19.1 million** from **$42.0 million** year-over-year, mainly due to a significant increase in inventories (**$29.4 million** use of cash)[17](index=17&type=chunk) - Net cash used in investing activities decreased substantially to **$15.3 million** from **$58.2 million** in the prior-year period, driven by lower capital expenditures[17](index=17&type=chunk) - Net cash used in financing activities decreased to **$0.6 million** from **$23.4 million**, primarily due to lower contingent consideration payments compared to the prior year[17](index=17&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on significant accounting policies, financial instruments, and other material events - The company made strategic investments of **$6.0 million** during the first quarter of fiscal 2024[22](index=22&type=chunk) - As of July 1, 2023, the company had **$24.6 million** of transaction price allocated to remaining performance obligations, with about **80%** expected to be recognized as revenue within the next twelve months[24](index=24&type=chunk) - Under the Operational Excellence Program, the company incurred **$2.2 million** in restructuring and related costs during the quarter, with total cumulative charges reaching **$69.4 million** towards an expected total of **$95-$105 million** by fiscal 2025[28](index=28&type=chunk) - A voluntary recall of certain Whole Blood business products was issued in August 2023, resulting in a **$3.4 million** charge for inventory in Q1 fiscal 2024[40](index=40&type=chunk) - The company has **$500.0 million** in 0% convertible senior notes due 2026 and **$273.0 million** outstanding under a term loan with an effective interest rate of **6.6%** as of July 1, 2023[43](index=43&type=chunk)[49](index=49&type=chunk) - Additional loss contingencies were recorded in Q1 fiscal 2024 related to a DOJ subpoena and a BIPA class action lawsuit, neither of which had a material impact on the financial statements[73](index=73&type=chunk)[74](index=74&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports strong Q1 FY2024 revenue growth, driven by Plasma and Hospital segments, with surging operating income and solid liquidity [Financial Summary](index=20&type=section&id=Financial%20Summary) This section provides a concise overview of the company's key financial performance metrics for the quarter Q1 FY2024 Financial Highlights vs. Q1 FY2023 | Metric | Q1 FY2024 (ended Jul 1, 2023) | Q1 FY2023 (ended Jul 2, 2022) | % Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | $311,332K | $261,458K | +19.1% | | **Operating Income** | $53,659K | $30,767K | +74.4% | | **Net Income** | $41,042K | $19,877K | +106.5% | | **Diluted EPS** | $0.80 | $0.38 | +110.5% | - Revenue growth was primarily driven by volume and price benefits in the Plasma and Hospital businesses[88](index=88&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) This section analyzes the drivers of revenue growth, gross profit, and operating expenses across business units Net Revenue Growth by Business Unit (Q1 FY2024 vs Q1 FY2023) | Business Unit | Reported Growth | Constant Currency Growth | Key Driver | | :--- | :--- | :--- | :--- | | **Plasma** | +35.4% | +35.5% | Volume and price | | **Blood Center** | +2.5% | +5.8% | Increase in apheresis business | | **Hospital** | +12.6% | +13.8% | Vascular Closure & Hemostasis Management | - Gross profit increased **17.6%** to **$167.3 million**, though the gross margin slightly decreased from **54.4%** to **53.7%** due to inventory reserves, investments, and higher depreciation, which partially offset benefits from mix, volume, and price[97](index=97&type=chunk)[98](index=98&type=chunk) - Total operating expenses increased by a modest **1.9%**, with R&D expenses up **16.0%** due to innovation investments, while SG&A expenses rose only **1.4%**[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, working capital, debt, and sources of liquidity Key Liquidity Indicators | Metric | July 1, 2023 | April 1, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $285,719K | $284,466K | | **Working capital** | $564,668K | $517,906K | | **Net debt position** | $(479,234)K | $(481,420)K | - Primary liquidity sources are cash on hand, cash from operations, and a **$420.0 million** senior unsecured revolving credit facility, which had no outstanding borrowings as of July 1, 2023[107](index=107&type=chunk)[109](index=109&type=chunk) - The company has **$273.0 million** outstanding under its term loan and **$500.0 million** in convertible senior notes due 2026[108](index=108&type=chunk)[110](index=110&type=chunk) - Operating cash flow decreased by **$22.9 million** year-over-year, primarily due to an increase in inventory[113](index=113&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company mitigates market risks from foreign exchange and interest rate fluctuations through derivative instruments like forward contracts and interest rate swaps - The company uses forward contracts to hedge anticipated cash flows from transactions in foreign currencies, primarily the Japanese Yen and Euro[130](index=130&type=chunk) - A **10%** strengthening of the U.S. Dollar would result in a **$3.4 million** increase in the fair value of forward contracts, while a **10%** weakening would cause a **$3.7 million** decrease[131](index=131&type=chunk) - The company uses interest rate swaps to convert a portion of its variable-rate debt to a fixed rate. As of July 1, 2023, swaps covered a notional amount of **$219.1 million** of the **$273.0 million** outstanding term loan[132](index=132&type=chunk) [Controls and Procedures](index=28&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period[133](index=133&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[134](index=134&type=chunk) [Part II. Other Information](index=29&type=section&id=Part%20II.%20OTHER%20INFORMATION) This section provides disclosures on legal proceedings, risk factors, and other significant corporate information [Legal Proceedings](index=29&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including a DOJ inquiry and a BIPA class action lawsuit, with related loss contingencies deemed immaterial - Information regarding legal proceedings is detailed in Note 13 to the financial statements[135](index=135&type=chunk) [Risk Factors](index=29&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended April 1, 2023 - There are no material changes from the Risk Factors disclosed in the Annual Report on Form 10-K for the fiscal year ended April 1, 2023[136](index=136&type=chunk) [Other Information](index=29&type=section&id=ITEM%205.%20Other%20Information) Certain directors and officers adopted Rule 10b5-1 trading plans for future sales of company common stock during the quarter - Certain directors and officers adopted Rule 10b5-1 trading arrangements for the sale of company common stock during the quarter[140](index=140&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended April 1, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-14041 HAEMONETICS CORPORATION (Exact name of registrant as specified in its charter) Massachusetts 04-2882273 (State or other jurisdiction of incorpora ...

Financial Data and Key Metrics Changes - The company reported organic revenue growth of 17% in Q4 and 21% for fiscal 2023, with adjusted earnings per diluted share of $0.77 in Q4 and $3.03 for the full year, representing increases of 18% and 17% respectively [18][66] - Adjusted operating income for fiscal 2023 was $218.4 million, an increase of $31.3 million or 17% compared to the prior year, with adjusted operating income margin at 18.7% [35][66] - Adjusted gross margin was 51.8% in Q4 and 53.2% for fiscal 2023, reflecting a decrease of 180 basis points and 70 basis points respectively due to inflationary pressures [61][140] Business Line Data and Key Metrics Changes - Plasma revenue grew 31% in Q4 and 43% for fiscal 2023, driven by volume growth and price benefits, with North America disposables representing 85% of plasma revenue [53][24] - Hospital revenue increased by 19% in Q4 and 18% for fiscal 2023, primarily due to growth in Vascular Closure and Hemostasis Management [25][26] - Transfusion Management revenue grew 8% in Q4 and 19% for fiscal 2023, driven by sales force expansion and software implementations [27] Market Data and Key Metrics Changes - The company anticipates total organic revenue growth of 5% to 8% in fiscal 2024, with plasma revenue growth expected to be between 3% to 6% [58] - Blood Center revenue is projected to decline by 2% to flat for fiscal 2024, with unfavorable order timing impacting the first half of the year [60] - The company retained a majority of CSL U.S. disposables business, which grew at a rate comparable to the overall U.S. disposables business [24] Company Strategy and Development Direction - The company is focusing on strengthening competitiveness in plasma while pivoting to higher growth, higher margin hospital-based opportunities [31] - The operational excellence program is expected to deliver additional growth savings of approximately $20 million, contributing to margin expansion [67] - The company plans to allocate capital to high-impact, high-ROI projects that accelerate growth and value creation [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for plasma and the ability to meet customer needs despite macroeconomic challenges [79][126] - The company expects operational inefficiencies to persist in the near term but anticipates improvements in the second half of fiscal 2024 [38][45] - Management highlighted the importance of the NexSys platform and its role in driving efficiency and reducing costs for customers [112][143] Other Important Information - The company achieved a milestone by surpassing $1 billion in annual revenue for the first time [22] - Adjusted net income for fiscal 2023 was $155.7 million, up 17% compared to the prior year [66] - Free cash flow before restructuring expenses is expected to be between $80 million to $100 million in fiscal 2024 [68] Q&A Session Summary Question: Can you clarify the CSL contribution and its impact on plasma revenue? - Management confirmed that CSL accounted for approximately 14% of reported revenue in fiscal 2023 and that they expect a minimum purchase commitment from CSL slightly in excess of $100 million for fiscal 2024 [59][92] Question: What are the expectations for gross margins in fiscal 2024? - Management indicated that gross margins would be impacted by inflationary pressures in the first half of fiscal 2024 but expected improvements in the second half as operational efficiencies are realized [45][72] Question: How is the company addressing the competitive landscape for Vascular Closure products? - Management noted that they are focused on penetrating top U.S. electrophysiology hospitals and expanding internationally, with plans to leverage existing infrastructure for commercialization [56][113]