ALPHARETTA, Ga., Nov. 2, 2016 /PRNewswire/ -- Halyard Health, Inc. (NYSE: HYH) today reported third quarter 2016 results and raised its full-year 2016 adjusted diluted earnings per share outlook.
Executive Summary
- Third quarter 2016 net sales totaled $398 million, a 2 percent increase compared to the same period last year.
- Net income for the third quarter 2016 was $9 million compared to net loss of $(471) million in the third quarter of 2015, which was impacted by a non-cash impairment charge taken in respect to the company's Surgical and Infection Prevention (S&IP) segment. Third quarter adjusted net income was $23 million compared to $24 million in the prior year.
- Third quarter diluted earnings per share were $0.19, compared to $(10.10) in the third quarter 2015. Adjusted diluted earnings per share in the quarter were $0.48, compared to $0.52 in the same period last year.
- Year-to-date 2016 net sales were $1,182 million, up 1 percent compared to the year-ago period.
- Through nine months, diluted earnings per share were $0.63, compared to $(9.46), in the same period a year ago. Adjusted diluted earnings per share for the first nine months of 2016 were $1.47 compared to $1.55 in the prior year period.
- The company raised its full-year 2016 adjusted diluted earnings per share outlook from $1.70 to $1.90 to $1.87 to $1.97.
"We delivered another solid quarter fueled by organic growth in Medical Devices and contributions from our recent CORPAK acquisition. I am pleased with our integration progress and we have realized synergies earlier than expected. As a result, we are raising our full-year adjusted diluted earnings outlook," said Robert Abernathy, Halyard chairman and CEO. "We are advancing Halyard's transformation into a leading medical devices company and our strong financial profile leaves us well-positioned for future growth."
Third Quarter 2016 Operating Results
Net sales of $398 million increased 2 percent compared to the prior year, including the CORPAK acquisition that contributed 3 percent of the growth. On a constant currency basis, sales increased 1 percent. Excluding expected lower Corporate and Other Sales and the CORPAK acquisition, volumes were flat compared to the prior year and net selling prices were lower by 2 percent.
Operating profit was $21 million in the third quarter of 2016 versus a net loss of $(461) million in 2015. On an adjusted basis, operating profit was $43 million compared to $46 million in the prior year. Volume growth in Medical Devices, including CORPAK, and manufacturing cost savings were offset by lower selling prices in S&IP and higher selling, general and administrative expenses.
Adjusted operating profit for the third quarter 2016 excludes $7 million spin-related transition charges, $4 million for acquisition-related charges, $5 million for litigation matters and $6 million for intangible amortization expense.
Adjusted EBITDA for the third quarter, excluding spin-related charges, acquisition-related charges and litigation expenses was $53 million compared to $56 million in the prior year.
Third Quarter 2016 Business Segment Results
Medical Devices
Net sales of Medical Devices in the third quarter increased 15 percent to $145 million compared to the third quarter 2015, driven by a 4 percent increase in organic sales volumes and 11 percent growth attributed to the CORPAK acquisition. Performance was driven by volume growth across all product categories and 1 percent favorable currency exchange rates.
Operating profit for Medical Devices was $32 million compared to $29 million in the third quarter 2015. Results were driven by higher sales volumes and manufacturing cost savings, which were partially offset by planned higher selling and research and development expense to help drive future growth.
Surgical and Infection Prevention
S&IP net sales were $249 million, down 3 percent compared to the third quarter of 2015. On a constant currency basis, net sales decreased 4 percent. Excluding sales to Kimberly-Clark, volumes were down 2 percent, as continued robust demand in exam gloves was offset by lower volume in surgical drapes and gowns and sterilization. Selling prices were lower by 3 percent, concentrated in exam gloves and sterilization.
S&IP operating profit for the quarter was $22 million compared to $26 million in the third quarter of 2015. Performance was impacted by lower net selling prices and volumes that were partially offset by manufacturing cost savings and favorable currency exchange rates.
Year-To-Date Results
Medical Devices
In the first nine months of 2016, net sales of Medical Devices were $413 million, up 10 percent compared to the comparable period in 2015. Organic sales volumes increased 4 percent and growth attributable to the CORPAK acquisition was 6 percent. Performance was driven by growth in each product category, in line with expectations.
Through nine months, operating profit for Medical Devices was $91 million, compared to $87 million in the first nine months of 2015. Results were driven by higher volumes and favorable currency exchange rates partially offset by higher research and development spending, and selling and marketing expense to help drive growth.
Surgical and Infection Prevention
In the first nine months of 2016, S&IP net sales totaled $760 million, a 1 percent decline compared to the first nine months of 2015. Sales volumes increased 2 percent, driven by continued strong demand for exam gloves, which was offset by 3 percent lower selling prices, primarily in exam gloves and sterilization.
Year-to-date S&IP operating profit was $72 million compared to $71 million in the same period last year. Performance for the first nine months was driven by higher sales volumes, favorable currency exchange rates and manufacturing cost savings partially offset by lower selling prices.
Balance Sheet and Cash Flow
Total debt at the end of the third quarter 2016 was $589 million, consisting of a secured term loan, unsecured notes and net borrowing on the revolver to fund the CORPAK acquisition, compared to total debt of $578 million at the end of 2015.
Cash from operations for the third quarter was $50 million compared to $19 million a year ago. Capital spending for the third quarter totaled $8 million compared to $19 million in 2015. The decrease in capital spending for the quarter was attributed to higher spending for spin-related items in the prior year. The company's cash balance was $87 million at the end of the third quarter.
2016 Outlook and Key Planning Assumptions
The company is revising its previously announced full-year 2016 outlook.
- Adjusted diluted earnings per share are expected to be in the range of $1.87 to $1.97.
Based on current trends, the company is updating one of its key planning assumptions, as described below.
- S&IP sales to Kimberly-Clark are expected to range between $50 and $55 million.
Non-GAAP Financial Measures
This press release and the accompanying tables include the following financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S., or GAAP, and are therefore referred to as non-GAAP financial measures:
- Net sales on a constant currency basis
- Adjusted net income
- Adjusted diluted earnings per share
- Adjusted gross and operating profit
- Adjusted effective tax rate
- Adjusted EBITDA
These non-GAAP financial measures exclude the following items, as applicable, for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures:
- Transition costs relating to the separation from Kimberly-Clark, which include costs to establish Halyard Health's capabilities as a stand-alone entity. These costs are related primarily to the transition services the company receives from Kimberly-Clark as well as the rebranding and other supply chain transition costs, and are expected to continue through 2016.
- Manufacturing strategic charges and gains relating to exiting one of the disposable glove facilities in Thailand and outsourcing the related production.
- Expenses associated with the amortization of intangible assets associated with prior business acquisitions.
- The positive or negative effect of changes in currency exchange rates during the year.
- Expenses associated with certain litigation matters.
- Certain acquisition and integration charges related to the acquisition of CORPAK MedSystems, Inc.
- The remeasurement of a deferred tax asset due to Thailand's statutory tax rate change.
The company provides these non-GAAP financial measures as supplemental information to our GAAP financial measures. Management and the company's Board of Directors use net sales on a constant currency basis, adjusted net income, adjusted diluted earnings per share, adjusted operating profit, adjusted EBITDA, and free cash flow to (a) evaluate the company's historical and prospective financial performance and its performance relative to its competitors, (b) allocate resources and (c) measure the operational performance of the company's business units and their managers. Management also believes that the use of an adjusted effective tax rate provides improved insight into the tax effects of our ongoing business operations.
Additionally, the Compensation Committee of the company's Board of Directors will use certain of the non-GAAP financial measures when setting and assessing achievement of incentive compensation goals. These goals are based, in part, on the company's net sales on a constant currency basis, adjusted diluted earnings per share and adjusted EBITDA which will be determined by excluding certain items that are used in calculating these non-GAAP financial measures.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the attached financial tables.
Conference Call
Halyard Health, Inc. will host a conference call today at 9 a.m. ET. The conference call can be accessed live over the internet at https://halyardhealth.investorroom.com or via telephone by dialing 877.240.5772 in the U.S. A replay of the call will be available at noon ET today by calling 877.344.7529 in the U.S. and entering passcode 10094658. A webcast of the call will also be archived in the Investors section on the Halyard website.
About Halyard Health
Halyard Health (NYSE: HYH) is a medical technology company focused on preventing infection, eliminating pain and speeding recovery for healthcare providers and their patients. Headquartered in Alpharetta, Georgia, Halyard is committed to addressing some of today's most important healthcare needs, such as preventing healthcare-associated infections and reducing the use of narcotics while helping patients move from surgery to recovery. Halyard's business segments - Surgical and Infection Prevention (S&IP) and Medical Devices - develop, manufacture and market clinically superior solutions that improve medical outcomes and business performance in more than 100 countries. For more information, visit www.halyardhealth.com.
Forward-Looking Statements
This press release contains information that includes or is based on "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the current plans and expectations of management and are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as "may", "believe", "will", "expect", "project", " estimate", "anticipate", "plan", or "continue" and similar expressions, among others. Such factors include, but are not limited to: weakening of economic conditions that could adversely affect the level of demand for our products; pricing pressures generally, including cost-containment measures that could adversely affect the price of or demand for our products; changes in foreign exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect U.S. Food and Drug Administration approval of new products; changes in reimbursement levels from third-party payors; a significant increase in product liability claims; the impact of investigative and legal proceedings and compliance risks; the impact of the federal legislation to reform the United States healthcare system; changes in financial markets; and changes in the competitive environment. Additional information concerning these and other factors that may impact future results is contained in our filings with the U.S. Securities and Exchange Commission, including our most recent Form 10-K and Quarterly Reports on Form 10-Q.
|
HALYARD HEALTH, INC. | |||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | ||||||||||||||||
|
Net Sales |
$ |
397.5 |
$ |
389.5 |
2.1 |
% |
$ |
1,182.3 |
$ |
1,173.0 |
0.8 |
% | |||||||||
|
Cost of products sold |
259.5 |
258.5 |
0.4 |
767.1 |
775.0 |
(1.0) |
|||||||||||||||
|
Gross Profit |
138.0 |
131.0 |
5.3 |
415.2 |
398.0 |
4.3 |
|||||||||||||||
|
Research and development expenses |
10.9 |
10.2 |
6.9 |
29.1 |
22.5 |
29.3 |
|||||||||||||||
|
Selling and general expenses |
100.3 |
97.2 |
3.2 |
301.0 |
300.2 |
0.3 |
|||||||||||||||
|
Goodwill impairment |
— |
475.5 |
N.M. |
— |
475.5 |
N.M. |
|||||||||||||||
|
Other expense and (income), net |
5.9 |
9.3 |
N.M. |
13.5 |
(2.0) |
N.M. |
|||||||||||||||
|
Operating Profit (Loss) |
20.9 |
(461.2) |
N.M. |
71.6 |
(398.2) |
N.M. |
|||||||||||||||
|
Interest income |
0.2 |
— |
N.M. |
0.5 |
0.2 |
N.M. |
|||||||||||||||
|
Interest expense |
(8.4) |
(7.8) |
7.7 |
(24.7) |
(25.0) |
(1.2) |
|||||||||||||||
|
Income (Loss) Before Income Taxes |
12.7 |
(469.0) |
N.M. |
47.4 |
(423.0) |
N.M. |
|||||||||||||||
|
Income tax provision |
(3.6) |
(1.5) |
N.M. |
(17.6) |
(17.8) |
(1.1) |
|||||||||||||||
|
Net Income (Loss) |
$ |
9.1 |
$ |
(470.5) |
N.M. |
$ |
29.8 |
$ |
(440.8) |
N.M. |
|||||||||||
|
Interest expense, net |
8.2 |
7.8 |
5.1 |
24.2 |
24.8 |
(2.4) |
|||||||||||||||
|
Income tax provision |
3.6 |
1.5 |
N.M. |
17.6 |
17.8 |
(1.1) |
|||||||||||||||
|
Depreciation and amortization |
16.6 |
16.3 |
1.8 |
48.4 |
48.6 |
(0.4) |
|||||||||||||||
|
EBITDA |
$ |
37.5 |
$ |
(444.9) |
N.M. |
$ |
120.0 |
$ |
(349.6) |
N.M. |
|||||||||||
|
Earnings (Loss) Per Share |
|||||||||||||||||||||
|
Basic |
$ |
0.19 |
$ |
(10.10) |
N.M. |
$ |
0.64 |
$ |
(9.46) |
N.M. |
|||||||||||
|
Diluted |
0.19 |
(10.10) |
N.M. |
0.63 |
(9.46) |
N.M. |
|||||||||||||||
|
Common Shares Outstanding (in thousands) |
|||||||||||||||||||||
|
Basic |
46.7 |
46.6 |
46.6 |
46.6 |
|||||||||||||||||
|
Diluted |
47.2 |
46.6 |
47.0 |
46.6 |
|||||||||||||||||
|
HALYARD HEALTH, INC. | |||||||||||||||||||||||||||||||
|
Gross Profit |
Operating Profit | ||||||||||||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
Three Months Ended |
Nine Months Ended | ||||||||||||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||||||
|
As reported |
$ |
138.0 |
$ |
131.0 |
$ |
415.2 |
$ |
398.0 |
$ |
20.9 |
$ |
(461.2) |
$ |
71.6 |
$ |
(398.2) |
|||||||||||||||
|
Spin-related transition charges |
4.5 |
4.1 |
4.6 |
8.2 |
6.7 |
16.0 |
10.6 |
46.4 |
|||||||||||||||||||||||
|
Manufacturing strategic changes |
— |
— |
— |
0.3 |
— |
— |
— |
(12.0) |
|||||||||||||||||||||||
|
Acquisition-related charges |
1.5 |
— |
5.0 |
— |
4.4 |
— |
14.7 |
— |
|||||||||||||||||||||||
|
Goodwill impairment |
— |
— |
— |
— |
— |
475.5 |
— |
475.5 |
|||||||||||||||||||||||
|
Litigation and legal |
— |
— |
— |
— |
5.1 |
9.1 |
15.1 |
9.1 |
|||||||||||||||||||||||
|
Intangibles amortization |
0.8 |
0.7 |
2.3 |
2.3 |
5.6 |
6.5 |
16.5 |
19.2 |
|||||||||||||||||||||||
|
As adjusted non-GAAP |
$ |
144.8 |
$ |
135.8 |
$ |
427.1 |
$ |
408.8 |
$ |
42.7 |
$ |
45.9 |
$ |
128.5 |
$ |
140.0 |
|||||||||||||||
|
Income Before Taxes |
Income Tax Provision | ||||||||||||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
Three Months Ended |
Nine Months Ended | ||||||||||||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||||||
|
As reported |
$ |
12.7 |
$ |
(469.0) |
$ |
47.4 |
$ |
(423.0) |
$ |
(3.6) |
$ |
(1.5) |
$ |
(17.6) |
$ |
(17.8) |
|||||||||||||||
|
Effective tax rate, as |
28.3 |
% |
(0.3)% |
37.1 |
% |
(4.2)% |
|||||||||||||||||||||||||
|
Spin-related transition charges |
6.7 |
16.0 |
10.6 |
46.4 |
(2.3) |
(6.3) |
(3.9) |
(17.7) |
|||||||||||||||||||||||
|
Manufacturing strategic changes |
— |
— |
— |
(12.0) |
— |
— |
— |
3.6 |
|||||||||||||||||||||||
|
Acquisition-related charges |
4.4 |
— |
14.7 |
— |
(1.7) |
— |
(5.6) |
— |
|||||||||||||||||||||||
|
Goodwill impairment |
— |
475.5 |
— |
475.5 |
— |
— |
— |
— |
|||||||||||||||||||||||
|
Litigation and legal |
5.1 |
9.1 |
15.1 |
9.1 |
(1.9) |
(3.5) |
(5.7) |
(3.5) |
|||||||||||||||||||||||
|
Intangibles amortization |
5.6 |
6.5 |
16.5 |
19.2 |
(2.3) |
(2.4) |
(6.2) |
(7.4) |
|||||||||||||||||||||||
|
Thailand statutory tax rate change |
— |
— |
— |
— |
— |
— |
3.7 |
— |
|||||||||||||||||||||||
|
As adjusted non-GAAP |
$ |
34.5 |
$ |
38.1 |
$ |
104.3 |
$ |
115.2 |
$ |
(11.8) |
$ |
(13.7) |
$ |
(35.3) |
$ |
(42.8) |
|||||||||||||||
|
Effective tax rate, as |
34.2 |
% |
36.0 |
% |
33.8 |
% |
37.2 |
% | |||||||||||||||||||||||
|
HALYARD HEALTH, INC. | |||||||||||||||
|
Net Income | |||||||||||||||
|
Three Months Ended |
Nine Months Ended | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
As reported |
$ |
9.1 |
$ |
(470.5) |
$ |
29.8 |
$ |
(440.8) |
|||||||
|
Diluted EPS, as reported |
$ |
0.19 |
$ |
(10.10) |
$ |
0.63 |
$ |
(9.46) |
|||||||
|
Spin-related transition charges |
4.4 |
9.7 |
6.7 |
28.7 |
|||||||||||
|
Manufacturing strategic changes |
— |
— |
— |
(8.4) |
|||||||||||
|
Acquisition-related charges |
2.7 |
— |
9.1 |
— |
|||||||||||
|
Goodwill impairment |
— |
475.5 |
— |
475.5 |
|||||||||||
|
Litigation and legal |
3.2 |
5.6 |
9.4 |
5.6 |
|||||||||||
|
Intangibles amortization |
3.3 |
4.1 |
10.3 |
11.8 |
|||||||||||
|
Thailand statutory tax rate change |
— |
— |
3.7 |
— |
|||||||||||
|
As adjusted non-GAAP |
$ |
22.7 |
$ |
24.4 |
$ |
69.0 |
$ |
72.4 |
|||||||
|
Diluted EPS, as adjusted |
$ |
0.48 |
$ |
0.52 |
$ |
1.47 |
$ |
1.55 |
|||||||
|
EBITDA | |||||||||||||||
|
Three Months Ended |
Nine Months Ended | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
Net income |
$ |
9.1 |
$ |
(470.5) |
$ |
29.8 |
$ |
(440.8) |
|||||||
|
Interest expense, net |
8.2 |
7.8 |
24.2 |
24.8 |
|||||||||||
|
Income tax provision |
3.6 |
1.5 |
17.6 |
17.8 |
|||||||||||
|
Depreciation and amortization |
16.6 |
16.3 |
48.4 |
48.6 |
|||||||||||
|
EBITDA, as reported |
37.5 |
(444.9) |
120.0 |
(349.6) |
|||||||||||
|
Spin-related transition charges |
6.7 |
16.0 |
10.6 |
45.6 |
|||||||||||
|
Manufacturing strategic changes |
— |
— |
— |
(12.0) |
|||||||||||
|
Acquisition-related charges |
4.0 |
— |
14.4 |
— |
|||||||||||
|
Goodwill impairment |
— |
475.5 |
— |
475.5 |
|||||||||||
|
Litigation and legal |
5.1 |
9.1 |
15.1 |
9.1 |
|||||||||||
|
Adjusted EBITDA |
$ |
53.3 |
$ |
55.7 |
$ |
160.1 |
$ |
168.6 |
|||||||
|
HALYARD HEALTH, INC. | |||||||
|
2016 Outlook | |||||||
|
Estimated Range | |||||||
|
Adjusted diluted earnings per share |
$ |
1.87 |
to |
$ |
1.97 |
||
|
Amortization |
(0.30) |
to |
(0.30) |
||||
|
Spin-related transition expenses |
(0.20) |
to |
(0.16) |
||||
|
Acquisition related charges |
(0.23) |
to |
(0.18) |
||||
|
Other |
(0.31) |
to |
(0.28) |
||||
|
Diluted earnings per share (GAAP) |
$ |
0.83 |
to |
$ |
1.05 |
||
|
HALYARD HEALTH, INC. | |||||||
|
As of |
As of December 31, | ||||||
|
ASSETS |
|||||||
|
Current Assets |
|||||||
|
Cash and cash equivalents |
$ |
86.7 |
$ |
129.5 |
|||
|
Accounts receivable, net |
189.1 |
224.7 |
|||||
|
Inventories |
298.7 |
303.2 |
|||||
|
Prepaid expenses and other current assets |
31.1 |
18.6 |
|||||
|
Total Current Assets |
605.6 |
676.0 |
|||||
|
Property, Plant and Equipment, net |
265.0 |
279.5 |
|||||
|
Goodwill |
1,031.9 |
945.2 |
|||||
|
Other Intangible Assets, net |
176.7 |
82.6 |
|||||
|
Deferred Tax Assets |
12.2 |
14.9 |
|||||
|
Other Assets |
3.6 |
2.0 |
|||||
|
TOTAL ASSETS |
$ |
2,095.0 |
$ |
2,000.2 |
|||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
|
Current Liabilities |
|||||||
|
Trade accounts payable |
$ |
166.5 |
$ |
163.2 |
|||
|
Accrued expenses |
144.2 |
152.0 |
|||||
|
Total Current Liabilities |
310.7 |
315.2 |
|||||
|
Long-Term Debt |
589.4 |
578.1 |
|||||
|
Deferred Tax Liabilities |
63.4 |
23.8 |
|||||
|
Other Long-Term Liabilities |
30.0 |
27.8 |
|||||
|
TOTAL LIABILITIES |
993.5 |
944.9 |
|||||
|
Stockholders' Equity |
1,101.5 |
1,055.3 |
|||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
2,095.0 |
$ |
2,000.2 |
|||
|
HALYARD HEALTH, INC. | |||||||||||||||
|
Three Months Ended |
Nine Months Ended | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
Operating Activities |
|||||||||||||||
|
Net income (loss) |
$ |
9.1 |
$ |
(470.5) |
$ |
29.8 |
$ |
(440.8) |
|||||||
|
Depreciation and amortization |
16.6 |
16.3 |
48.4 |
48.6 |
|||||||||||
|
Goodwill impairment |
— |
475.5 |
— |
475.5 |
|||||||||||
|
Net loss (gain) on asset dispositions |
3.0 |
2.2 |
3.8 |
(7.6) |
|||||||||||
|
Changes in operating assets and liabilities |
18.4 |
(6.0) |
43.8 |
(13.4) |
|||||||||||
|
Deferred income taxes and other |
2.8 |
1.4 |
18.1 |
12.3 |
|||||||||||
|
Cash Provided by Operating Activities |
49.9 |
18.9 |
143.9 |
74.6 |
|||||||||||
|
Investing Activities |
|||||||||||||||
|
Capital expenditures |
(7.6) |
(19.2) |
(21.7) |
(64.4) |
|||||||||||
|
Acquisition of business, net of cash acquired |
0.1 |
— |
(175.0) |
— |
|||||||||||
|
Proceeds from dispositions of property |
— |
0.1 |
— |
7.8 |
|||||||||||
|
Cash Used in Investing Activities |
(7.5) |
(19.1) |
(196.7) |
(56.6) |
|||||||||||
|
Financing Activities |
|||||||||||||||
|
Line of credit facility proceeds |
— |
— |
72.0 |
— |
|||||||||||
|
Line of credit facility repayments |
(35.0) |
— |
(62.0) |
— |
|||||||||||
|
Debt repayments |
— |
— |
— |
(51.0) |
|||||||||||
|
Purchase of treasury stock |
— |
— |
(0.9) |
(1.0) |
|||||||||||
|
Proceeds from the exercise of stock options |
0.2 |
0.3 |
0.2 |
1.2 |
|||||||||||
|
Cash Used in Financing Activities |
(34.8) |
0.3 |
9.3 |
(50.8) |
|||||||||||
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents |
(0.1) |
(1.9) |
0.7 |
(3.7) |
|||||||||||
|
Increase (Decrease) in Cash and Cash Equivalents |
7.5 |
(1.8) |
(42.8) |
(36.5) |
|||||||||||
|
Cash and Cash Equivalents - Beginning of Period |
79.2 |
114.3 |
129.5 |
149.0 |
|||||||||||
|
Cash and Cash Equivalents - End of Period |
$ |
86.7 |
$ |
112.5 |
$ |
86.7 |
$ |
112.5 |
|||||||
|
HALYARD HEALTH, INC. | |||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | ||||||||||||||||
|
Net Sales |
|||||||||||||||||||||
|
Surgical and Infection Prevention |
$ |
248.8 |
$ |
257.4 |
(3.3) |
% |
$ |
760.2 |
$ |
767.5 |
(1.0) |
% | |||||||||
|
Medical Devices |
145.2 |
126.1 |
15.1 |
413.4 |
375.3 |
10.2 |
|||||||||||||||
|
Corporate and Other(a) |
3.5 |
6.0 |
(41.7) |
8.7 |
30.2 |
(71.2) |
|||||||||||||||
|
Total Net Sales |
$ |
397.5 |
$ |
389.5 |
2.1 |
% |
$ |
1,182.3 |
$ |
1,173.0 |
0.8 |
% | |||||||||
|
Operating Profit (Loss) |
|||||||||||||||||||||
|
Surgical and Infection Prevention(b) |
$ |
22.2 |
$ |
26.3 |
(15.6) |
% |
$ |
71.9 |
$ |
71.3 |
0.8 |
% | |||||||||
|
Medical Devices(c) |
31.9 |
28.5 |
11.9 |
90.6 |
86.6 |
4.6 |
|||||||||||||||
|
Corporate and Other(d) |
(27.3) |
(31.2) |
N.M. |
(77.4) |
(82.6) |
N.M. |
|||||||||||||||
|
Goodwill impairment |
— |
(475.5) |
N.M. |
— |
(475.5) |
N.M. |
|||||||||||||||
|
Other (expense) income, net(e) |
(5.9) |
(9.3) |
N.M. |
(13.5) |
2.0 |
N.M. |
|||||||||||||||
|
Total Operating Profit (Loss) |
$ |
20.9 |
$ |
(461.2) |
N.M. |
$ |
71.6 |
$ |
(398.2) |
N.M. |
|||||||||||
_______________________________________________
|
(a) |
Corporate and Other net sales include sales of non-healthcare products to Kimberly-Clark. |
|
(b) |
S&IP operating profit includes $0.2 million and $0.2 million of amortization expense for the quarters ended September 30, 2016 and 2015, respectively and $0.6 million and $0.6 million for the nine months ended September 30, 2016 and 2015, respectively. |
|
(c) |
Medical Devices operating profit includes $5 million and $6 million of amortization expense for the quarters ended September 30, 2016 and 2015, respectively and $16 million and $19 million for the nine months ended September 30, 2016 and 2015, respectively. |
|
(d) |
Corporate and Other for the three and nine months ended September 30, 2016 includes $16 million and $48 million, respectively, of general expenses, $7 million and $11 million, respectively, of post spin-related transition expenses, $4 million and $15 million, respectively, of acquisition, integration and restructuring expenses related to the CORPAK acquisition and $0 million and $4 million, respectively of costs related to corporate sales. Corporate and Other for the three and nine months ended September 30, 2015 includes $13 million and $36 million, respectively, of general expenses and $16 million and $46 million, respectively, of post spin-related transition expenses and $2 million and $0 million of costs, respectively, from corporate sales. |
|
(e) |
Other (expense) income, net for the three and nine months ended September 30, 2016 includes $5 million and $15 million, respectively, related to legal expenses and litigation. Other (expense) income, net for the three ended September 30, 2015 includes $9 million related to legal expenses and litigation. Other (expense) income, net for the nine months ended September 30, 2015 includes $9 million related to legal expenses and litigation and a $12 million gain on the disposal of one of our disposable glove facilities in Thailand. |
|
N.M. - not meaningful | |
|
Percentage Change - Net Sales vs. Prior Year |
Changes Due To | |||||||||||||
|
Third Quarter |
Total |
Volume(a) |
Pricing/Mix |
Currency |
Other(b) | |||||||||
|
Consolidated |
2 |
% |
— |
% |
(2)% |
1 |
% |
3 |
% | |||||
|
S&IP |
(3) |
(2) |
(3) |
1 |
1 |
|||||||||
|
Medical Devices |
15 |
4 |
— |
1 |
10 |
|||||||||
|
Year-to-date |
||||||||||||||
|
Consolidated |
1 |
% |
3 |
% |
(2)% |
— |
% |
— |
% | |||||
|
S&IP |
(1) |
2 |
(3) |
— |
— |
|||||||||
|
Medical Devices |
10 |
4 |
— |
— |
6 |
|||||||||
______________________________
|
(a) |
Volume excludes changes in sales volume to Kimberly-Clark. |
|
(b) |
Other includes Corpak net sales, changes in sales volume to Kimberly-Clark and rounding. |
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SOURCE Halyard Health, Inc.