ICU Medical(ICUI) - 2024 Q4 - Annual Results

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]