Haemonetics(US:HAE)2025-11-06 11:03Financial Performance - Net revenues decreased by 5.3% and 4.8% for the three and six months ended September 27, 2025, compared to the same periods in fiscal 2025, primarily due to customer transition of CSL Plasma and divestiture of the Whole Blood product line [144]. - Gross profit increased by 3.9% to $194.7 million for the three months ended September 27, 2025, and by 6.8% to $387.0 million for the six months ended September 27, 2025 [144]. - Operating income rose by 13.1% and 22.9% for the three and six months ended September 27, 2025, driven by pricing benefits and decreased restructuring costs [145]. - Plasma segment revenues decreased by 9.5% for the three months and 7.0% for the six months ended September 27, 2025, primarily due to lower sales volumes in North America [151]. - Blood Center revenues fell by 17.6% for the three months and 19.6% for the six months ended September 27, 2025, mainly due to the divestiture of the Whole Blood product line [153]. - Hospital segment revenues increased by 5.1% for the three months and 4.7% for the six months ended September 27, 2025, supported by the Blood Management Technologies product line [150]. - Constant currency growth measures indicated a revenue decline of 6.0% for the three months and 5.5% for the six months ended September 27, 2025, highlighting the impact of foreign exchange rates [149]. Share Repurchase and Debt Management - The company repurchased a total of 1,430,579 shares at an average price of $52.43 under an accelerated share repurchase agreement, with $425.0 million remaining for future repurchases [143]. - The company approved a new three-year share repurchase program in April 2025, authorizing up to $500.0 million, with $75.0 million repurchased by September 2025 [176]. - The company repurchased $200.0 million of its 2026 convertible senior notes, resulting in a net gain of $12.6 million [171]. - As of September 27, 2025, the outstanding balance under the term loan was $242.2 million with an effective interest rate of 6.4% [174]. - As of September 27, 2025, total outstanding debt under the senior unsecured term loan was $242.2 million with an effective interest rate of 6.4% [194]. - The principal amount of the term loan under the 2024 Revised Credit Facilities amortizes quarterly, starting at 2.5% for the first three years [173]. Cash Flow and Expenses - Net cash provided by operating activities increased by $107.3 million to $128.7 million for the six months ended September 27, 2025, compared to the same period in fiscal 2025 [179]. - Net cash used in investing activities decreased by $99.1 million to $(63.5) million for the six months ended September 27, 2025, compared to $(162.6) million in fiscal 2025 [180]. - Net cash provided by financing activities decreased by $337.9 million to $(79.0) million for the six months ended September 27, 2025, compared to $258.9 million in fiscal 2025 [182]. - Total operating expenses for the three months ended September 27, 2025, were $136.3 million, a 0.4% increase compared to the same period in fiscal 2025 [157]. - Research and development expenses rose by 5.2% for the three months and 8.9% for the six months ended September 27, 2025, compared to the same periods of fiscal 2025 [158]. - Selling, general and administrative expenses decreased by 5.0% for the three months and 1.3% for the six months ended September 27, 2025, compared to the same periods of fiscal 2025 [159]. Tax and Impairment - The effective tax rate for the three and six months ended September 27, 2025, was 24.6%, with income tax expenses of $12.6 million and $23.7 million, respectively [165]. - Impairment charges of intangible assets were $8.6 million for both the three and six months ended September 27, 2025, compared to $2.4 million in the same periods of fiscal 2025 [162]. Liquidity and Financial Position - As of September 27, 2025, cash and cash equivalents totaled $296.4 million, with a current ratio of 1.6 [168]. - The net debt position as of September 27, 2025, was $(928.3) million, indicating a strong liquidity position [168]. - The company had $19.5 million of uncommitted operating lines of credit with no outstanding borrowings as of September 27, 2025 [174]. Foreign Sales and Currency Impact - International sales accounted for 26.6% and 25.6% of total net revenues for the three and six months ended September 27, 2025, respectively [147]. - The company’s foreign sales accounted for 26.6% and 25.9% of total sales for the three and six months ended September 27, 2025, respectively [190]. - A 10% strengthening of the U.S. Dollar would result in a $9.8 million increase in the fair value of forward contracts, while a 10% weakening would lead to an $11.9 million decrease [193]. - A 100 basis point increase in Term SOFR rates would lead to an additional annual interest expense of $0.4 million [194]. - The notional amount on two active interest rate swap agreements to convert variable rate borrowings to fixed rate was $201.9 million [194]. Credit Risk and Investments - Concentration of credit risk exists in the Plasma business unit due to significant sales to a few large customers [195]. - Trade accounts receivable outside the U.S. include sales to government-owned healthcare systems, which are subject to payment delays [195]. - The company has not incurred significant losses on trade accounts or other receivables, but potential collection risks are continually evaluated [196]. - Allowances may be required in future periods if the financial condition of customers deteriorates [196]. - The company’s investments in privately held entities are periodically evaluated for impairment, with a risk of losing a substantial portion of these investments [197]. - Strategic investments in privately held entities total $88.6 million, classified as other long-term assets [197]. - No adjustments were recorded to the carrying value of strategic investments for the three months ended September 27, 2025 [197].