ICU Medical(ICUI) - 2024 Q1 - Quarterly Results

Financial Highlights (Q1 2024) ICU Medical reported first-quarter 2024 revenue of $566.7 million, a slight decrease from $568.6 million in the prior year. The company experienced a significant increase in GAAP net loss to $(39.5) million, compared to a $(9.8) million loss in Q1 2023. Both Adjusted EBITDA and Adjusted Diluted EPS saw substantial declines, falling to $78.8 million and $0.96, respectively Financial Highlights Summary | Financial Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $566.7 million | $568.6 million | -0.3% | | GAAP Gross Profit | $185.2 million | $192.0 million | -3.5% | | GAAP Gross Margin | 33% | 34% | -1 ppt | | GAAP Net Loss | $(39.5) million | $(9.8) million | +303% | | GAAP Diluted EPS | $(1.63) | $(0.41) | +298% | | Adjusted EBITDA | $78.8 million | $102.0 million | -22.7% | | Adjusted Diluted EPS | $0.96 | $1.74 | -44.8% | - The company's CEO, Vivek Jain, stated that the first-quarter results were generally in line with expectations[5] Revenue by Product Line For the first quarter of 2024, the Consumables segment was the only product line to show growth, increasing by $8.0 million year-over-year. Both Infusion Systems and Vital Care segments experienced revenue declines of $4.4 million and $5.5 million respectively, contributing to the slight overall decrease in total revenue Revenue by Product Line Summary | Product Line | Q1 2024 Revenue (in millions) | Q1 2023 Revenue (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Consumables | $244.1 | $236.1 | $8.0 | | Infusion Systems | $157.3 | $161.7 | $(4.4) | | Vital Care | $165.3 | $170.8 | $(5.5) | | Total | $566.7 | $568.6 | $(1.9) | - Pfizer contract manufacturing revenue, which is included in the Vital Care segment, increased to $14.1 million in Q1 2024 from $12.7 million in Q1 2023[5] Financial Statements The company's financial statements detail its financial position and performance. As of March 31, 2024, total assets were $4.29 billion. The statement of operations shows a net loss of $(39.5) million for the quarter, a significant increase from the $(9.8) million loss in the prior-year period. The company generated $45.8 million in cash from operations Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets Summary | Balance Sheet Item (in thousands) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $251,423 | $254,222 | | Inventories | $693,006 | $709,360 | | Total Assets | $4,288,398 | $4,378,439 | | Current portion of long-term debt | $51,000 | $51,000 | | Long-term debt | $1,566,298 | $1,577,770 | | Total Liabilities | $2,220,568 | $2,255,029 | | Total Stockholders' Equity | $2,067,830 | $2,123,410 | Condensed Consolidated Statements of Operations Condensed Consolidated Statements of Operations Summary | P&L Item (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenues | $566,655 | $568,649 | | Gross Profit | $185,244 | $192,041 | | (Loss) Income from Operations | $(10,655) | $9,395 | | Net Loss | $(39,471) | $(9,812) | | Diluted Net Loss Per Share | $(1.63) | $(0.41) | Condensed Consolidated Statements of Cash Flows Condensed Consolidated Statements of Cash Flows Summary | Cash Flow Item (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $45,791 | $41,245 | | Net cash used in investing activities | $(17,862) | $(15,183) | | Net cash used in financing activities | $(26,845) | $(15,837) | | Net (Decrease) Increase in Cash | $(2,799) | $12,163 | Non-GAAP Financial Measures The company utilizes non-GAAP measures like Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow to supplement its GAAP results. Management believes these metrics offer a clearer view of operational performance by excluding special items that are variable or unusual, such as stock compensation, amortization, restructuring costs, and certain quality-related charges, thereby facilitating more meaningful period-over-period comparisons - The company uses non-GAAP financial measures to supplement GAAP results, believing they provide useful information for management and investors to assess business performance and facilitate comparisons between periods[17] - Special items excluded from non-GAAP calculations include stock compensation, intangible asset amortization, restructuring and integration costs, changes in fair value of contingent earn-outs, and quality system remediation charges[19][20][21] Reconciliation of GAAP to Non-GAAP Financial Measures Reconciliation to Adjusted EBITDA | Reconciliation to Adjusted EBITDA (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | GAAP net loss | $(39,471) | $(9,812) | | Total non-GAAP adjustments | $118,278 | $111,793 | | Adjusted EBITDA | $78,807 | $101,981 | Reconciliation to Adjusted Diluted EPS | Reconciliation to Adjusted Diluted EPS | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Reported GAAP diluted (loss) per share | $(1.63) | $(0.41) | | Adjustments (Amortization, Stock Comp, etc.) | $2.59 | $2.15 | | Adjusted (Non-GAAP) diluted earnings per share | $0.96 | $1.74 | Reconciliation to Free Cash Flow Reconciliation to Free Cash Flow | Free Cash Flow Calculation (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $45,791 | $41,245 | | Purchase of property, plant and equipment | $(15,915) | $(14,205) | | Proceeds from sale of assets | $507 | $54 | | Free cash flow | $30,383 | $27,094 | Fiscal Year 2024 Outlook ICU Medical provided its full-year 2024 guidance, projecting an Adjusted EBITDA between $330 million and $370 million, and Adjusted Diluted EPS in the range of $4.40 to $5.10. This outlook reflects updates from the guidance previously issued on February 27, 2024, and includes significant non-GAAP adjustments from the projected GAAP net loss Fiscal Year 2024 Guidance Summary | FY 2024 Guidance | Low End | High End | | :--- | :--- | :--- | | Adjusted EBITDA (in millions) | $330 | $370 | | Adjusted Diluted EPS | $4.40 | $5.10 | - The provided guidance reflects updates from the full-year outlook that was published on February 27, 2024[40] Other Information This section provides details for the investor conference call held on May 7, 2024, to discuss the quarterly results. It also includes the standard forward-looking statement disclaimer, which outlines potential risks and uncertainties—such as demand fluctuations, competition, and integration challenges—that could cause actual results to differ from management's expectations - The company hosted a conference call and webcast on May 7, 2024, to discuss its first-quarter financial results[7] - The report contains forward-looking statements subject to risks and uncertainties, including decreased product demand, competition, inflation, and challenges with the integration of the Smiths Medical business[9][10]