Haemonetics(US:HAE)2026-02-05 11:05Financial Performance - Net revenues for the three months ended December 27, 2025, decreased by 2.7% to $338.967 million compared to $348.542 million for the same period in 2024[153] - Gross profit increased by 4.6% to $202.386 million, representing 59.7% of net revenues for the three months ended December 27, 2025[153] - Operating income rose by 14.2% to $67.396 million, accounting for 19.9% of net revenues for the three months ended December 27, 2025[154] - Net income for the three months ended December 27, 2025, increased by 19.3% to $44.740 million, representing 13.2% of net revenues[153] - The company reported a 4.1% decrease in net revenues for the nine months ended December 27, 2025, totaling $987.676 million compared to $1,030.225 million in the prior year[153] - Constant currency growth for the three months ended December 27, 2025, was reported at (3.5)% for total net revenues[156] Segment Performance - Plasma segment net revenues increased by 3.5% to $138.905 million for the three months ended December 27, 2025, while Blood Center segment revenues decreased by 19.6% to $56.560 million[159] - The Hospital segment's Blood Management Technologies saw an 8.3% increase in net revenues to $87.448 million for the three months ended December 27, 2025[159] - Plasma revenue increased by 3.5% for the three months and decreased by 3.6% for the nine months ended December 27, 2025, compared to the same periods of fiscal 2025[161] - Blood Center revenue decreased by 19.6% for both the three and nine months ended December 27, 2025, primarily due to the divestiture of the Whole Blood product line[162] - Hospital revenue decreased by 0.3% for the three months and increased by 2.9% for the nine months ended December 27, 2025, driven by sales volume changes in different product lines[163] Expenses and Profitability - Gross profit increased by 4.6% for the three months and 6.0% for the nine months ended December 27, 2025, with gross profit as a percentage of net revenues at 59.7%[164] - Research and development expenses decreased by 10.4% for the three months and increased by 2.0% for the nine months ended December 27, 2025, reflecting lower compliance costs and increased product innovation investments[167] - Selling, general and administrative expenses increased by 2.5% for the three months and decreased by 0.1% for the nine months ended December 27, 2025, primarily due to performance-based compensation costs[168] - Total operating expenses were $134.99 million for the three months and $409.62 million for the nine months ended December 27, 2025, with a slight increase in percentage of net revenues[166] - The company reported income tax expenses of $15.2 million and $39.0 million for the three and nine months ended December 27, 2025, with effective tax rates of 25.4% and 24.9% respectively[174] Cash Flow and Investments - Net cash provided by operating activities increased by $157.1 million to $222.3 million for the nine months ended December 27, 2025, compared to the same period in fiscal 2025[188] - Net cash used in investing activities decreased by $87.0 million to $92.9 million for the nine months ended December 27, 2025, compared to the same period in fiscal 2025[189] - Net cash provided by financing activities decreased by $337.2 million to an outflow of $76.9 million for the nine months ended December 27, 2025, compared to the same period in fiscal 2025[190] - The company has made strategic investments and loans totaling $97.2 million as of December 27, 2025, including $78.3 million in investments related to Vivasure[206] Share Repurchase and Debt - During the fourth quarter of fiscal 2026, the company repurchased 360,457 shares for $25.0 million, with a remaining authorization of $400.0 million[152] - The share repurchase program authorized up to $500.0 million, with $75.0 million repurchased in September 2025, totaling 1,430,579 shares at an average price of $52.43[184] - As of December 27, 2025, the company had $363.4 million in cash and cash equivalents, with a current ratio of 1.7[177] - As of December 27, 2025, the remaining principal balance on the 2026 Notes is $299.7 million after a repurchase of $200.0 million, resulting in a net gain of $12.6 million[179] - The 2029 Notes have a principal balance of $687.9 million as of December 27, 2025, with an interest expense of $15.6 million for the nine months ended December 27, 2025[180] - The company has $240.6 million outstanding under the term loan with an effective interest rate of 5.8% as of December 27, 2025[183] Foreign Currency and Risk Management - 26.9% of sales were generated outside the U.S. during the three months ended December 27, 2025, indicating significant foreign currency exposure[198] - The company has a program to mitigate exposure to foreign currency exchange rate changes, utilizing derivative financial instruments such as forward foreign currency contracts primarily for Japanese Yen and Euro[200] - As of December 27, 2025, a 10% strengthening of the U.S. Dollar would increase the fair value of all forward contracts by $9.0 million, while a 10% weakening would decrease it by $10.9 million[201] - Concentrations of credit risk are limited due to a large number of customers, but certain markets, such as the Plasma business unit, expose the company to significant credit risk from large customers[203] - The company has not incurred significant losses on trade accounts or other receivables, but continually evaluates receivables for potential collection risks[204] - The notional amount on active interest rate swap agreements to convert variable rate borrowings to fixed rate was $200.6 million as of December 27, 2025[202] - The company does not use forward foreign currency contracts for speculative or trading activities, focusing instead on cash flow hedges[200]