Financial Performance - Fourth quarter 2024 revenue was $629.8 million, a 7.9% increase from $587.9 million in the same period last year[3] - GAAP gross profit for Q4 2024 was $227.3 million, compared to $171.6 million in Q4 2023, resulting in a gross margin of 36.1% versus 29.2%[3] - Adjusted EBITDA for Q4 2024 was $105.5 million, up from $86.3 million in Q4 2023[3] - Total revenues for the twelve months ended December 31, 2024, were $2.38 billion, an increase of $122.9 million from $2.26 billion in 2023[15] - Consumables revenue for Q4 2024 was $268.1 million, a $14.1 million increase from $254.0 million in Q4 2023[5] - The company reported a GAAP net loss of $(23.8) million for Q4 2024, compared to a net loss of $(17.1) million in Q4 2023[3] - Net loss for the twelve months ended December 31, 2024, was $117.688 million, compared to a net loss of $29.655 million in 2023[17] - Adjusted EBITDA for the three months ended December 31, 2024, was $105.515 million, up from $86.266 million in 2023, reflecting a year-over-year increase of about 22.3%[36] - The adjusted (non-GAAP) net income was $52.1 million, with diluted earnings per share of $2.11, compared to a net loss of $32.0 million and a diluted loss per share of $0.97 on a GAAP basis[37] - The adjusted income before income taxes was $90.2 million, which is 15% of total revenues, indicating a significant improvement from the previous period[37] Future Projections - For fiscal year 2025, the company estimates a GAAP net loss between $(45) million to $(28) million, translating to a net loss per share of $(1.81) to $(1.11)[7] - Excluding the impact from the IV Solutions joint venture, adjusted EBITDA for FY 2025 is expected to be between $395 million to $425 million, with adjusted EPS ranging from $6.55 to $7.25[8] - The IV Solutions joint venture is anticipated to close in Q2 2025, potentially reducing adjusted EBITDA guidance by $15 million to $20 million[8] - For fiscal year 2025, the company projects a GAAP net loss between $45 million and $28 million, with adjusted EBITDA expected to be between $395 million and $425 million[43] - The company anticipates total non-GAAP adjustments for fiscal year 2025 to be between $440 million and $453 million[43] - The projected GAAP loss per share for fiscal year 2025 is estimated to be between $(1.81) and $(1.11)[43] Cash Flow and Liquidity - Cash and cash equivalents increased to $308.6 million as of December 31, 2024, from $254.2 million a year earlier[13] - Net cash provided by operating activities increased to $204.033 million in 2024 from $166.201 million in 2023, representing an increase of approximately 22.7%[17] - Cash and cash equivalents at the end of the period increased to $308.566 million in 2024 from $254.222 million in 2023, marking a growth of approximately 21.4%[17] - The company reported a net cash used in investing activities of $88.960 million in 2024, slightly higher than $87.947 million in 2023[17] - Free cash flow for the three months ended December 31, 2023, was $16.162 million, with net cash provided by operating activities amounting to $40.192 million[41] Expenses and Costs - The company incurred $8.2 million in restructuring and strategic transaction costs, impacting the overall financial results[37] - Research and development expenses amounted to $22.4 million, accounting for 4% of total revenues[37] - The total operating expenses, including selling, general, and administrative expenses, were $158.8 million, which is approximately 25% of total revenues[37] - The company reported a restructuring, strategic transaction, and integration expense of $10.731 million for the three months ended December 31, 2023[40] - The quality system and product-related remediation costs amounted to $24.003 million for the same period[40] Debt and Financial Adjustments - Principal repayments of long-term debt increased to $51.000 million in 2024 from $29.688 million in 2023, indicating a significant rise of about 72.2%[17] - Total non-GAAP adjustments for the three months ended December 31, 2024, amounted to $129.343 million, compared to $103.413 million in 2023[36] - The provision for doubtful accounts increased to $5.800 million in 2024 from $0.838 million in 2023, showing a substantial rise of over 590%[17] - The company recorded a change in fair value of contingent earn-out of $(3.991) million during the reporting period[40] Exchange Rate Impact - The effect of exchange rate changes on cash resulted in a decrease of $4.929 million in 2024, contrasting with an increase of $3.163 million in 2023[17]

Core Insights - ICU Medical, Inc. reported a revenue increase of 7.1% in Q4 2024, reaching $629.8 million compared to $587.9 million in Q4 2023 [2] - The company experienced a GAAP gross profit of $227.3 million in Q4 2024, up from $171.6 million in the same quarter of the previous year, resulting in a gross margin improvement from 29.2% to 36.1% [2] - Despite the revenue growth, ICU Medical reported a GAAP net loss of $(23.8) million in Q4 2024, compared to a net loss of $(17.1) million in Q4 2023 [2][4] Financial Performance - Adjusted diluted earnings per share for Q4 2024 was $2.11, an increase from $1.57 in Q4 2023 [2] - Adjusted EBITDA for Q4 2024 was $105.5 million, compared to $86.3 million in Q4 2023, reflecting a significant year-over-year increase [2] - For the fiscal year 2024, total revenues reached $2.38 billion, up from $2.26 billion in 2023, marking a growth of $122.9 million [2][4] Product Line Performance - Revenue from consumables in Q4 2024 was $268.1 million, an increase of $14.1 million from $254.0 million in Q4 2023 [4] - Infusion systems revenue rose to $171.7 million in Q4 2024, up by $6.6 million from $165.1 million in Q4 2023 [4] - Vital care product line revenue increased by $21.3 million to $190.0 million in Q4 2024, compared to $168.7 million in Q4 2023 [4] Fiscal Year 2025 Guidance - The company estimates a GAAP net loss for fiscal year 2025 to be between $(45) million and $(28) million, with a projected net loss per share ranging from $(1.81) to $(1.11) [5] - Excluding the impact from the IV Solutions joint venture, adjusted EBITDA for fiscal year 2025 is expected to be between $395 million and $425 million, with adjusted EPS projected to be between $6.55 and $7.25 [6] Cash Flow and Balance Sheet - As of December 31, 2024, cash and cash equivalents increased to $308.6 million from $254.2 million a year earlier [11] - The total assets of the company decreased to $4.20 billion from $4.38 billion as of December 31, 2023 [11] - Current liabilities increased to $556.2 million from $481.8 million in the previous year [11]

Core Viewpoint - ICU Medical, Inc. is set to release its fourth quarter 2024 earnings results on February 27, 2025, followed by a conference call to discuss these results [1][2]. Company Information - ICU Medical is a global leader in infusion systems, infusion consumables, and high-value critical care products utilized in various healthcare settings, including hospitals and home care [3]. - The company is headquartered in San Clemente, California, and emphasizes quality, innovation, and value for its clinical customers worldwide [3].

Core Points - ICU Medical will present at the Raymond James 46th Annual Institutional Investors Conference in Orlando, Florida from March 3-5, 2025 [1] - The presentation is scheduled for March 3, 2025, at 5:40 a.m. PT (8:40 a.m. ET) [1] - Company management will also engage in one-on-one meetings on the same day [1] Company Overview - ICU Medical is a global leader in infusion systems, infusion consumables, and high-value critical care products [3] - The company focuses on providing quality, innovation, and value to clinical customers worldwide [3] - ICU Medical is headquartered in San Clemente, California [3]

Company Presentation - ICU Medical management will present at the 43rd Annual J P Morgan Healthcare Conference on January 15 2025 at 10 30 a m PT (1 30 p m ET) [1] - The company will also participate in one-on-one meetings on January 15 and 16 2025 [1] - The presentation will be webcast live and available for replay on the company's website under the Investors and Event Calendar tabs [2] Company Overview - ICU Medical is a global leader in infusion systems infusion consumables and high-value critical care products used in hospital alternate site and home care settings [3] - The company is headquartered in San Clemente California and focuses on providing quality innovation and value to clinical customers worldwide [3]

Financial Data and Key Metrics - Q3 revenue was $580 million, representing 7% growth on a constant currency basis and 6% on a reported basis [9] - Adjusted EBITDA for Q3 was $95 million, a 6% increase compared to $90 million last year [26] - Adjusted EPS for Q3 was $1.59, up from $1.57 last year [25] - Gross margins were higher than expected due to supply chain efficiencies, FX, and sales mix [9] - Free cash flow for Q3 was $16 million, with year-to-date free cash flow at $109 million, already exceeding full-year guidance [27][29] - Cash balance increased to $313 million, and net debt stood at $1.3 billion [9][45] Business Unit Performance - **Consumables**: Grew 9% on both constant currency and reported basis, driven by infusion consumables, vascular access, and oncology [11] - **IV Systems**: Grew 10% on a constant currency basis and 7% on a reported basis, with strong performance in LVP line and new contract signings for Plum Duo infusion system [12] - **Vital Care**: Flat year-over-year on both constant currency and reported basis [15] Market Performance - Healthy demand and utilization across all geographies in Q3, with no major changes observed in Q4 [9] - Favorable foreign exchange impact in Q3, though the U.S. dollar has since strengthened, which may affect Q4 margins [22] Strategic Direction and Industry Competition - Announced a joint venture with Otsuka Pharmaceutical Factory for IV Solutions, aiming to bring innovation, supply redundancy, and geographic diversification to the market [36][38] - The joint venture will deconsolidate IV Solutions financial results, with ICU Medical recognizing only its proportional share in the net earnings of the JV [43] - The company aims to have the most modern fleet of infusion devices, focusing on clinical outcomes, new market creation, and innovation [13][14] Management Commentary on Operating Environment and Future Outlook - Management expects full-year results to finish above original mid-single-digit targets, with legacy ICU consumables lines at record levels [11] - The company is focused on improving profitability through revenue growth, operational efficiencies, and waiting for macro improvements in currency and interest rates [44] - The joint venture is expected to be EPS breakeven initially, with potential for margin improvements over time [43] Other Important Information - The company completed the cutover of its U.S. and Canada order-to-cash systems in Q3, with plans to optimize North American logistics and expand internationally [16] - Factory consolidations are mostly completed, with savings expected to contribute to profitability from 2025 onwards [16] - The company received no observations during a detailed FDA follow-up inspection at its Minneapolis site, marking progress in its quality improvement journey [17] Q&A Session Summary Question: Strategic rationale for the joint venture with Otsuka - The joint venture allows ICU Medical to stay in the IV Solutions market while leveraging Otsuka's innovation and global manufacturing footprint [51][60] Question: Impact of ERP system implementation - The U.S. and Canada ERP system cutover was completed in Q3, with some disruption in August but no material impact on the quarter's performance [52][53] Question: Pricing and market share for LVP and Plum Duo - The company is focused on maintaining pricing levels for new technology and feels confident about its competitive position in the market [54][55] Question: Impact of Mexican peso and potential tariffs - The company is not currently planning for significant impacts from potential tariffs, as it is a major player in the healthcare industry with substantial operations in Mexico [56] Question: FDA inspection and warning letter follow-up - The FDA follow-up inspection at the Minneapolis site resulted in no observations, and the company is awaiting the final report [57][58] Question: Gross margin outlook and supply chain efficiencies - The company is ahead of schedule in capturing $50 million in supply chain synergies, with gross margins expected to improve further as factory consolidations are completed [66][68] Question: Free cash flow and CapEx implications of the joint venture - The joint venture is expected to be marginally positive to neutral on free cash flow, with potential reinvestment in other areas [84][85] Question: Put-call option in the joint venture agreement - The put-call option allows either party to exercise starting in 2030, based on a multiple of revenues, providing flexibility depending on market developments [89] Question: Incremental capacity and revenue expectations - The company is focused on sustainable long-term growth rather than short-term gains from increased demand [87]

Financial Performance - ICU Medical reported quarterly earnings of $1.59 per share, exceeding the Zacks Consensus Estimate of $1.25 per share, and showing a slight increase from $1.57 per share a year ago, resulting in an earnings surprise of 27.20% [1] - The company achieved revenues of $580.07 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.92% and increasing from $553.31 million year-over-year [2] Stock Performance - ICU Medical shares have appreciated approximately 78.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 25.8% [3] Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $1.43 for the upcoming quarter and $5.21 for the current fiscal year, alongside projected revenues of $596 million and $2.3 billion respectively [7] - The Zacks Rank for ICU Medical is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Medical - Products industry, to which ICU Medical belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Performance - Total revenues for the three months ended September 30, 2023, were $589.1 million, an increase from $553.3 million in the same period last year, representing a growth of 6.5%[12] - Gross profit for the three months ended September 30, 2023, was $204.9 million, compared to $183.9 million in the prior year, reflecting a gross margin increase from 33.3% to 34.8%[12] - The net loss for the three months ended September 30, 2023, was $33.0 million, compared to a net income of $7.2 million in the same period last year, marking a significant decline[12] - Total revenues for the three months ended September 30, 2024, were $589.1 million, a 6.5% increase from $553.3 million in the same period of 2023[48] - For the nine months ended September 30, 2024, total revenues reached $1.75 billion, compared to $1.67 billion for the same period in 2023, reflecting a growth of approximately 4.8%[48] Expenses and Costs - Operating expenses for the three months ended September 30, 2023, totaled $196.6 million, up from $161.1 million, indicating a rise of 22% year-over-year[12] - The company incurred interest expense of $24.7 million for the three months ended September 30, 2023, compared to $24.2 million in the prior year[12] - The total cost of goods sold for the three months ended September 30, 2023, was $384.3 million, an increase from $369.4 million year-over-year[12] - SG&A expenses increased to $162.7 million for the three months ended September 30, 2024, up 9.5% from $148.6 million in the same period last year, primarily due to higher compensation and dealer fees[199][200] - Restructuring, strategic transaction, and integration expenses were $16.8 million for the three months ended September 30, 2024, compared to $7.2 million for the same period in 2023[203] Research and Development - Research and development expenses for the three months ended September 30, 2023, were $21.0 million, slightly up from $20.9 million year-over-year[12] - R&D expenses were $21.0 million for the three months ended September 30, 2024, a slight increase of 0.5% from $20.9 million in the same period in 2023, reflecting ongoing support for R&D projects[201] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2024, was $163.84 million, up from $74.93 million in 2023[20] - The company reported a net cash used in investing activities of $62.41 million for the nine months ended September 30, 2024, compared to $57.30 million in 2023[20] - Purchases of property, plant, and equipment totaled $55.29 million for the nine months ended September 30, 2024, compared to $53.96 million in 2023[20] Debt and Financing - The company entered into a Credit Agreement for $2.2 billion in senior secured credit facilities, including a $850 million Term Loan A and a $850 million Term Loan B[121] - The effective interest rates for Term Loan A and Term Loan B are 8.22% and 8.57%, respectively, as of September 30, 2024[142] - Total principal payments on the Term Loans for the nine months ended September 30, 2024, were $38.3 million, compared to $22.3 million for the same period in 2023[134] Assets and Liabilities - As of September 30, 2024, total assets amounted to $16,473 million, a decrease from $35,399 million as of December 31, 2023[72] - Total liabilities as of September 30, 2024, were $11,503 million, compared to $2,830 million as of December 31, 2023[72] - The carrying value of goodwill increased to $1,478,293 thousand as of September 30, 2024, from $1,472,446 thousand at the beginning of the year[104] Revenue Segmentation - Revenues from the Consumables segment for the three months ended September 30, 2024, were $264.9 million, up from $242.0 million in 2023, representing a growth of 9.4%[48] - Infusion Systems revenue increased to $159.8 million for the three months ended September 30, 2024, a 10.8% increase from $149.0 million in the same period last year[195] - Vital Care revenue rose to $164.5 million for the three months ended September 30, 2024, a 1.4% increase from $162.3 million in the same period in 2023, driven by higher sales of IV Solutions and Respiratory products[196][197] Legal and Compliance - The company is involved in various legal proceedings but does not expect any material adverse impact on its financial position[152] - The company is currently assessing the impact of new accounting standards on its consolidated financial statements and related disclosures[26] Strategic Initiatives - The company plans to continue focusing on strategic transactions and integration, with restructuring expenses amounting to $16.8 million for the three months ended September 30, 2023, compared to $7.2 million in the prior year[12] - The company is forming a Delaware LLC to transfer its IV Solutions product line, with Otsuka Pharmaceutical Factory America acquiring a 60% equity interest for approximately $200 million at closing[165]

Exhibit 99.1 ICU Medical Announces Third Quarter 2024 Results and Updates Its Fiscal Year 2024 Guidance SAN CLEMENTE, Calif., November 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 g ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? ICU Medical (ICUI) , which belongs to the Zacks Medical - Products industry, could be a great candidate to consider. This medical device maker has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 36.73%. For the most recent quarter, ICU Medical was ...