ICU Medical(US:ICUI)2025-11-06 21:39Financial Performance - Total revenues for Q3 2025 were $536.99 million, a decrease of 8.8% from $589.13 million in Q3 2024[16] - Gross profit for Q3 2025 was $200.88 million, compared to $204.85 million in Q3 2024, reflecting a gross margin of approximately 37.3%[16] - Net loss for Q3 2025 was $3.40 million, or $0.14 per share, compared to a net loss of $32.98 million, or $1.35 per share, in Q3 2024[16] - Total revenues for the three months ended September 30, 2025, were $536,990, a decrease of 8.8% compared to $589,131 for the same period in 2024[63] - For the nine months ended September 30, 2025, total revenues were $1,690,558, down from $1,752,241 in 2024, reflecting a decline of 3.5%[63] - The company reported a net gain on the sale of business amounting to $44,792 thousand in the nine months ended September 30, 2025[25] - The company recognized a consolidated net loss of $3,396 for the three months ended September 30, 2025, compared to a loss of $32,983 in 2024[74] - For the nine months ended September 30, 2025, the net income was $16.466 million, a significant improvement from a net loss of $93.860 million in the same period of 2024[86] Assets and Liabilities - Total current assets decreased to $1.21 billion as of September 30, 2025, from $1.44 billion at December 31, 2024[14] - Total liabilities decreased to $1.93 billion as of September 30, 2025, from $2.20 billion at December 31, 2024[14] - Total assets as of September 30, 2025, were $4.10 billion, a decrease from $4.20 billion at December 31, 2024[14] - The company’s total contract liabilities decreased to $37,213 as of September 30, 2025, from $42,177 at the beginning of the year[65] - The company’s accrued liabilities totaled $316,103 thousand as of September 30, 2025, compared to $306,923 thousand as of December 31, 2024, reflecting an increase of about 3.9%[121] Expenses - Operating expenses for Q3 2025 were $187.16 million, down from $196.62 million in Q3 2024, indicating a reduction of approximately 4.5%[16] - Research and development expenses remained stable at $21.25 million in Q3 2025, compared to $21.03 million in Q3 2024[16] - Depreciation and amortization for the nine months ended September 30, 2025, was $149,912 thousand, down from $166,519 thousand in 2024[25] - Stock compensation expense for the nine months ended September 30, 2025, was $41,879 thousand, compared to $34,366 thousand in 2024[25] - Restructuring expenses for the three and nine months ended September 30, 2025, were $6.2 million and $21.2 million, respectively, compared to $3.6 million and $16.6 million for the same periods in 2024[38] - Strategic transaction and integration expenses for the three and nine months ended September 30, 2025, were $6.9 million and $24.9 million, respectively, down from $13.2 million and $33.5 million in 2024[40] Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2025, was $119,248 thousand, compared to $163,841 thousand in 2024[25] - Net cash used in investing activities for the nine months ended September 30, 2025, was $140,620 thousand, while it was $(62,414) thousand in 2024[25] - Cash and cash equivalents at the end of the period on September 30, 2025, were $299,732 thousand, down from $312,512 thousand at the end of September 30, 2024[25] Debt and Financing - Principal repayments of long-term debt for the nine months ended September 30, 2025, totaled $272,750 thousand, compared to $38,250 thousand in 2024[25] - The company made a prepayment of $200 million on Term Loan A during the second quarter of 2025, funded by the sale of its IV Solutions business[143] - The outstanding principal balance of Term Loan A was $559.7 million as of September 30, 2025, with no borrowings under the $500 million revolving credit facility[173] - The company was in compliance with all financial covenants as of September 30, 2025[151] - The maximum Senior Secured Leverage Ratio is 4.50 to 1.00 until June 30, 2024, and thereafter it will be 4.00 to 1.00[149] Investments and Acquisitions - The company recognized a gain of $44.8 million from the sale of a 60% ownership interest in its IV Solutions business, which included a $45.6 million gain from the disposal and a $19.4 million gain from the fair value of the retained 40% interest[48] - The investment in Otsuka ICU Medical LLC was recorded at $131.1 million as of September 30, 2025, reflecting the retained 40% interest in the IV Solutions business[108] - The total consideration for the acquisition of Smiths Medical included a potential earn-out payment of $100 million contingent on stock price targets[96] Taxation - The effective tax rate for the three months ended September 30, 2025, was 26%, compared to an effective tax rate of (84)% for the same period in 2024[120] - The company recorded a tax benefit of $12.0 million for the year ended December 31, 2024, related to U.S. return-to-provision adjustments[123] - The company has considered the impact of the EU's Pillar Two legislation on its tax provision for fiscal year 2025, which may alter tax obligations in certain countries[124] Other Financial Metrics - The company’s total comprehensive loss for the nine months ended September 30, 2025, was $105,395 thousand[22] - The company recorded a net reversal of $0.7 million for the estimated costs related to field service corrective actions associated with the 2021 FDA Warning Letter, adjusting the total accrued amount to approximately $23.3 million[163] - The company has a share purchase plan approved for up to $100 million, with no shares purchased under this plan during the three months ended September 30, 2025[156]