Haemonetics(HAE) - 2024 Q4 - Annual Results

Financial Highlights for Q4 and Fiscal Year 2024 Haemonetics achieved strong Q4 and FY2024 financial results, driven by double-digit revenue growth and strategic portfolio evolution Overview Haemonetics reported strong Q4 and FY2024 financial results, emphasizing double-digit revenue growth and strategic portfolio evolution Q4 and Fiscal 2024 Key Financial Metrics | Metric | Q4 2024 | Fiscal 2024 | | :--- | :--- | :--- | | Revenue | $343 million (+13%) | $1.309 billion (+12%) | | Organic Revenue Growth | 10% | 12% | | GAAP EPS | $0.40 | $2.29 | | Adjusted EPS | $0.90 | $3.96 | | Cash Flow from Operations | $64 million | $182 million | - CEO Chris Simon stated that the company advanced its market leadership and portfolio evolution by investing selectively, acquiring new products, and rationalizing non-strategic assets to accelerate growth and margin expansion[1] Financial Performance Analysis This section analyzes Haemonetics' financial performance, detailing revenue growth, margin changes, and profitability metrics Q4 FY2024 Performance Q4 FY2024 reported revenue grew 12.8%, led by the Hospital segment, with adjusted operating margin improving despite GAAP margin decline GAAP Results (Q4 FY2024) Q4 FY2024 GAAP revenue grew 12.8% to $343.3 million, driven by Hospital segment, though operating income and margin declined Q4 2024 GAAP Revenue by Business Unit | Business Unit | Revenue ($ millions) | Growth Rate (YoY) | | :--- | :--- | :--- | | Plasma | $138.6 | 5.7% | | Blood Center | $70.2 | 4.5% | | Hospital | $129.2 | 28.1% | | Total Net Revenue | $343.3 | 12.8% | - GAAP gross margin was stable at 51.2% compared to 51.3% in Q4 FY23, with the slight decrease due to foreign exchange impacts and acquisition-related amortization, offset by volume and mix[3][4] - Operating expenses as a percentage of revenue increased to 42.5% from 39.7% in Q4 FY23, driven by growth investments, digital transformation, acquisition costs (OpSens Inc.), and freight[4] - Q4 FY24 net income was $20.4 million, with earnings per diluted share of $0.40, a decrease from $29.4 million and $0.57 per share in Q4 FY23[4] Adjusted (Non-GAAP) Results (Q4 FY2024) Q4 FY2024 adjusted organic revenue grew 10.2%, led by Hospital segment, with gross margin expanding to 54.0% and EPS increasing to $0.90 Q4 2024 Organic Revenue Growth by Business Unit | Business Unit | Organic Growth Rate (YoY) | | :--- | :--- | | Plasma | 5.6% | | Blood Center | 7.1% | | Hospital | 18.7% | | Total Net Revenue | 10.2% | - Adjusted gross margin increased by 220 basis points to 54.0%, driven by volume and mix, partially offset by foreign exchange impacts[5] - Adjusted operating margin improved by 110 basis points to 18.8% compared to the prior year period[6] - Adjusted net income for Q4 FY24 was $46.0 million, a 17.3% increase, with adjusted EPS of $0.90, up 16.9% from the prior year[7] Balance Sheet and Cash Flow This section details the company's financial position and cash generation, highlighting changes in assets, liabilities, and cash flow activities FY2024 Balance Sheet and Cash Flow Summary FY2024 cash on hand decreased to $178.8 million due to acquisitions, while operating and free cash flow declined due to increased inventories - Cash on hand decreased by $105.7 million since the beginning of the fiscal year, ending at $178.8 million, largely driven by the acquisition of OpSens Inc[9] Fiscal Year Cash Flow Comparison | Metric | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Cash Flow from Operating Activities | $181.8 million | $273.1 million | | Free Cash Flow (before restructuring) | $127.2 million | $190.4 million | - The decrease in both operating and free cash flow was primarily attributed to increased inventory balances[10] Fiscal 2025 Guidance This section provides the company's financial outlook for fiscal year 2025, including revenue, margin, and EPS projections FY2025 Outlook FY2025 guidance projects 5-8% total revenue growth, 0-3% organic, adjusted operating margin 23-24%, and adjusted EPS $4.45-$4.75 Fiscal 2025 Revenue Growth Guidance | Segment | Reported Growth | Organic Growth | | :--- | :--- | :--- | | Plasma | (3) - 6% | (3) - 6% | | Blood Center | (5) - 8% | (5) - 7% | | Hospital | 27% - 32% | 13% - 16% | | Total Company | 5% - 8% | 0% - 3% | Fiscal 2025 Adjusted Guidance | Metric | Guidance Range | | :--- | :--- | | Adjusted Operating Margin | 23% - 24% | | Adjusted EPS | $4.45 - $4.75 | | Free Cash Flow | $130M - $180M | - Beginning in fiscal 2025, the company will integrate service revenue within its three business units, changing its revenue reporting format[11] Financial Statements This section presents the company's detailed consolidated financial statements, including income, balance sheet, and cash flow Condensed Consolidated Statements of Income FY2024 net revenues reached $1.31 billion, up 12.0%, with gross profit up 12.4%, but operating income growth was modest due to higher expenses Fiscal Year 2024 vs 2023 Income Statement Highlights | Metric | Year Ended 3/30/2024 | Year Ended 4/1/2023 | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | $1,309.1 M | $1,168.7 M | 12.0% | | Gross Profit | $691.5 M | $615.1 M | 12.4% | | Operating Income | $164.9 M | $156.0 M | 5.7% | | Net Income | $117.6 M | $115.4 M | 1.9% | | Diluted EPS | $2.29 | $2.24 | 2.2% | Revenue Analysis by Business Unit FY2024 total net revenue grew 12.0% reported and 11.7% organically, led by strong Hospital and Plasma segment performance Full Fiscal Year 2024 Revenue Growth by Business Unit | Business Unit | FY24 Revenue ($M) | Reported Growth | Organic Growth | | :--- | :--- | :--- | :--- | | Plasma | $565.9 | 13.9% | 13.8% | | Blood Center | $276.1 | (1.4)% | 1.0% | | Hospital | $445.4 | 19.8% | 17.1% | | Total Net Revenues | $1,309.1 | 12.0% | 11.7% | Q4 2024 Revenue Growth by Business Unit | Business Unit | Q4 FY24 Revenue ($M) | Reported Growth | Organic Growth | | :--- | :--- | :--- | :--- | | Plasma | $138.6 | 5.7% | 5.6% | | Blood Center | $70.2 | 4.5% | 7.1% | | Hospital | $129.2 | 28.1% | 18.7% | | Total Net Revenues | $343.3 | 12.8% | 10.2% | Condensed Consolidated Balance Sheets As of March 30, 2024, total assets increased to $2.20 billion, driven by acquisition-related intangible assets and goodwill, with a slight rise in total debt Balance Sheet Summary (as of March 30, 2024) | Account | 3/30/2024 ($ thousands) | 4/1/2023 ($ thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $178,800 | $284,466 | | Total current assets | $768,903 | $769,722 | | Intangible assets, net | $406,117 | $275,771 | | Goodwill | $565,082 | $466,231 | | Total assets | $2,195,591 | $1,934,825 | | Total current liabilities | $300,383 | $251,816 | | Long-term debt | $797,564 | $754,102 | | Total liabilities & stockholders' equity | $2,195,591 | $1,934,825 | Condensed Consolidated Statements of Cash Flows FY2024 operating cash flow decreased to $181.8 million due to increased inventories, while investing activities used $322.4 million, primarily for acquisitions Fiscal Year 2024 Cash Flow Summary | Cash Flow Activity | Year Ended 3/30/2024 ($ thousands) | Year Ended 4/1/2023 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $181,751 | $273,058 | | Net cash used in investing activities | ($322,389) | ($143,788) | | Net cash provided by (used in) financing activities | $38,157 | ($100,364) | | Net Change in Cash | ($105,666) | $24,970 | - Free cash flow before restructuring costs was $127.2 million in FY24, down from $190.4 million in FY23[26] Reconciliation of GAAP to Non-GAAP Measures Reconciliations detail adjustments from GAAP to non-GAAP results for Q4 and FY2024, showing higher adjusted net income and EPS due to various exclusions Q4 FY24 GAAP to Adjusted EPS Reconciliation | Metric | Amount | | :--- | :--- | | Reported (GAAP) EPS | $0.40 | | Amortization of intangibles | $0.15 | | Restructuring & related costs | $0.14 | | Digital transformation costs | $0.07 | | Other adjustments | $0.14 | | Adjusted (Non-GAAP) EPS | $0.90 | Full Year FY24 GAAP to Adjusted EPS Reconciliation | Metric | Amount | | :--- | :--- | | Reported (GAAP) EPS | $2.29 | | Amortization of intangibles | $0.46 | | Restructuring & related costs | $0.35 | | Digital transformation costs | $0.23 | | Integration costs | $0.19 | | Impairment of intangible assets | $0.14 | | Other adjustments | $0.30 | | Adjusted (Non-GAAP) EPS | $3.96 |