CLARENCE, N.Y., Jan. 25, 2001 (PRIMEZONE) -- Wilson Greatbatch Technologies, Inc. (NYSE:GB), a leading developer and manufacturer of power sources and other critical components used in implantable medical devices and other technically demanding applications, today reported financial results for its fourth quarter and 2000 fiscal year ended December 29, 2000. The company converted to public ownership through an initial public offering on September 29, 2000.
Performance Highlights:
-- Annual and quarterly revenues reach record levels, increasing
31% in fourth quarter, 23% in 2000
-- IPO proceeds used to reduce debt by $84 million for annual
interest savings of $8.7 million
-- Fourth quarter results reflect revenue growth of $6.7 million,
$2.2 million reduction in interest expense, and a $1.6 million
extraordinary charge, net of taxes, for early debt extinguishment
-- First quarter 2001 debt restructuring to further reduce annual
interest expense by $1.5 million
For the fourth quarter of 2000, Wilson Greatbatch reported record revenues of $27.9 million, a 31% increase from $21.3 million in the 1999 fourth quarter. Income before an extraordinary charge for early debt extinguishment was $2.7 million in the 2000 fourth quarter compared to a $0.7 million loss before an accounting change in the 1999 fourth quarter. Net income for the 2000 fourth quarter was $1.1 million, compared to a net loss of $0.7 million for the 1999 fourth quarter. Fourth quarter 2000 diluted earnings per share were $0.14 from continuing operations. Including the $1.6 million extraordinary charge, net of taxes for early debt extinguishment, net income per diluted share for the 2000 fourth quarter was $0.06. Earnings before interest, income taxes, depreciation and amortization (EBITDA) increased by 61% to a record $7.9 million in the 2000 fourth quarter compared to $4.9 million in the 1999 fourth quarter.
Edward F. Voboril, Chairman of the Board, President and CEO commented, "We are pleased by the performance of Wilson Greatbach in our second quarter as a public company with operating results exceeding our forecasts. During the quarter, we put in place the organizational and financial structure to facilitate our continued growth as a critical component supplier to the implantable medical device industry. To further support our growth plans as a public company, we have increased our investment in research, development, and engineering, as well as adding a Vice President of Corporate Development to lead our corporate development efforts."
Voboril continued, "This quarter's results reflect the significant benefit of using the proceeds of our IPO to pay down debt with an over $2.0 million reduction in quarterly interest expense and an $84.0 million reduction in long-term debt. To further enhance our financial position and future earnings, in January 2001 we consummated a restructuring of our remaining long-term debt, which was initiated in the fourth quarter of 2000. This debt restructuring will reduce annual interest expense by an additional $1.5 million. There will be an extraordinary charge associated with this debt restructuring of $3.0 million, net of taxes, which will be recorded in the first quarter of 2001."
For fiscal 2000, Wilson Greatbatch reported record revenues of $97.8 million, a 23% increase from $79.2 million in 1999. Income before the extraordinary charge for debt restructuring was $1.0 million in 2000 compared to a $1.7 million loss before an accounting change in 1999. The company's net loss for 2000 was $0.5 million or $0.04 per diluted share, compared to a net loss of $2.3 million or $0.18 per diluted share for 1999. EBITDA for 2000 increased by 19% to a record $26.3 million compared to $22.2 million in 1999.
Voboril commented, "2000 was a milestone year in our company's development highlighted by our successful initial public offering which positions us to leverage our technological and market leadership as a supplier of power sources for medical devices. We again demonstrated our ability to respond to customer requirements and execute successfully by adapting to new specifications for smaller battery sizes for cardiac rhythm management (CRM) devices and by completing the launch of our capacitor product for defibrillators which contributed significantly to top line growth in 2000. During 2000, we also successfully integrated our August acquisition of the former Battery Engineering Inc. (BEI) which enhances our commercial power source capabilities."
Business Outlook
The company also provided guidance on its business plan and performance objectives for 2001. Based on current business and economic conditions, the company is comfortable with the current range of estimates for revenues and profits being projected by research analysts after giving consideration to the reduction of interest expense that has resulted from its refinancing activities.
Voboril concluded, "The overall demographics continue to be positive for our business and give us confidence in our ability to achieve our 2001 performance objectives. A major operating focus over the next year will be to secure additional production efficiencies from our newly introduced capacitor line as this product moves out of the more costly start-up phase. Longer term, we are optimistic about our R&D initiatives and the future prospects for Wilson Greatbatch to capitalize on new growth opportunities being created by advances in medical treatments using implantable devices."
Wilson Greatbatch Technologies, Inc. with operations in New York, Maryland, and Massachusetts, is a leading developer and manufacturer of power sources and other critical components used in implantable medical devices and other technically demanding applications. Additional information about Wilson Greatbatch Technologies, Inc. is available at http://www.greatbatch.com.
The listing requirements of the New York Stock Exchange require that Wilson Greatbatch Technologies, Inc. disclose that additional information is available upon which the New York Stock Exchange relied to list the company's public stock, which is included in Wilson Greatbatch Technologies, Inc.'s original listing application. Such information is available to the public upon request.
Forward-Looking Statements
The information in this press release includes forward-looking statements about the company that involve a number of risks and uncertainties. These statements are based on the company's current expectations. The company's actual results could differ materially from those stated or implied in such forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements include, among others, dependence upon a limited number of customers, possible product obsolescence, possible inability to market current or future products, pricing pressures from customers, fluctuating operating results, challenges to our intellectual property rights, product liability claims, possible inability to integrate acquisitions, unsuccessful expansion into new markets , inability to obtain licenses to key technology, regulatory changes or consolidation in the healthcare industry, and other risks and uncertainties described in the company's periodic filings with the Securities and Exchange Commission. The company assumes no obligations to update forward-looking information included in this press release to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects.
Wilson Greatbatch Technologies, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands except per share amounts)
Three Months Ended Year Ended
Dec. 29, Dec. 31, Dec. 29, Dec. 31,
2000 1999 2000 1999
--------- --------- --------- ---------
Revenues $ 27,949 $ 21,296 $ 97,790 $ 79,235
--------- --------- --------- ---------
Cost of goods sold 15,530 11,810 55,446 41,057
--------- --------- --------- ---------
Gross profit 12,419 9,486 42,344 38,178
Gross profit as a
percentage of revenues 44% 45% 43% 48%
Selling, general and
administrative expenses 3,280 2,422 11,473 9,880
Research, development and
engineering costs, net 2,439 1,862 9,941 9,339
Intangible amortization 1,635 1,605 6,530 6,510
--------- --------- --------- ---------
5,065 3,597 14,400 12,449
Interest expense 1,293 3,443 12,958 13,420
Other (income) expense (190) 1,159 (189) 1,343
--------- --------- --------- ---------
Income (loss) before
income taxes,
extraordinary loss
and cumulative effect
of accounting change 3,962 (1,005) 1,631 (2,314)
Income tax expense
(benefit) 1,306 (262) 611 (605)
--------- --------- --------- ---------
Income (loss) before
extraordinary item and
cumulative effect of
accounting change 2,656 (743) 1,020 (1,709)
Extraordinary loss on
retirement of debt,
net of tax (1,568) 0 (1,568) 0
Cumulative effect of
accounting change,
net of tax 0 0 0 (563)
--------- --------- --------- ---------
Net income (loss) $ 1,088 $ (743) $ (548) $ (2,272)
======== ========= ========= ========
Basic earnings
(loss) per share:
Income (loss) from
continuing operations $ 0.14 $ (0.06) $ 0.07 $ (0.14)
Extraordinary loss on
retirement of debt (0.08) 0.00 (0.11) (0.00)
Cumulative effect of
accounting change 0.00 0.00 0.00 (0.04)
--------- --------- --------- ---------
Net earnings (loss) $ 0.06 $ (0.06) $ (0.04) $ (0.18)
--------- --------- --------- ---------
Diluted earnings
(loss) per share:
Income (loss) from
continuing operations $ 0.14 $ (0.06) $ 0.07 $ (0.14)
Extraordinary loss on
retirement of debt (0.08) 0.00 (0.11) (0.00)
Cumulative effect of
accounting change 0.00 0.00 0.00 (0.04)
--------- --------- --------- ---------
Net earnings (loss) $ 0.06 $ (0.06) $ (0.04) $ (0.18)
--------- --------- --------- ---------
Weighted average
shares outstanding
Basic 18,464 12,612 14,167 12,491
Diluted 18,839 12,612 14,434 12,491
Wilson Greatbatch Technologies, Inc.
Selected Consolidated Balance Sheet Data
(Unaudited)
(In thousands)
December 29, December 31,
2000 1999
----------- ------------
ASSETS
Cash and cash equivalents $ 16 $ 3,863
Accounts receivable 12,977 11,016
Inventories 13,643 13,583
Intangible assets, net 104,395 112,902
Total assets 181,647 189,779
LIABILITIES & SHAREHOLDERS' EQUITY
Total debt 33,605 132,402
Shareholders' equity 135,835 46,407
Total liabilities & equity 181,647 189,779