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Posted February 11th, 2010 in Press Releases
Q4 2009 Operating Income Grows 117% as Operating Margins Hit 15.4% Excluding Non-recurring Items
Conference Call Webcast Live Today at 1:30 pm Pacific/4:30 pm Eastern
BOTHELL, WA – February 11, 2010 – SonoSite, Inc. (Nasdaq:SONO), the world leader and specialist in hand-carried ultrasound for the point-of-care, today reported financial results for the fourth quarter and year ended December 31, 2009.
REVENUE
Revenues in the fourth quarter of 2009 were $69.7 million, a decrease of 1% compared to the fourth quarter of 2008. Full year of 2009 revenues were $227.4 million, down 7% versus full year of 2008.
Revenues for the partial year acquisition of CardioDynamics were $4.2 million for the fourth quarter and $7.1 million for the full year of 2009.
Excluding partial year revenues from CDIC, SonoSite fourth quarter revenues were $65.5 million, down 7% versus the fourth quarter of 2008. Full year revenues excluding CDIC were $220.3 million, a decrease of 10% compared to 2008.
Changes in foreign currency rates increased worldwide revenues by 4% in the fourth quarter and decreased revenues by 2% for the full year.
OPERATING INCOME AND CASH FLOW
Fourth Quarter Results
Fourth quarter operating income was $6.8 million, an increase of 46% compared to the fourth quarter of 2008. Operating income for the fourth quarter 2009 included charges from CDIC of $3.3 million, related to operating results as well as acquisition and integration.
Excluding CDIC, operating income in the fourth quarter of 2009 was $10.1 million, an increase of 117% compared to the fourth quarter of 2008. Operating margins reached 15.4% for the quarter.
Full Year Results
For the full year of 2009, operating income was $13.7 million, including charges from CDIC of $6.9 million; a decrease of 39% compared to the full year of 2008.
Excluding CDIC, full year of 2009 operating income was $20.6 million, down 8% versus the full year of 2008 on a $24 million or 10% revenue decline versus full year 2008.
Cash Flow
Operating cash flow was $15.3 million for the quarter and $24.4 million for the full year of 2009, as compared to $11.2 million and $29.2 million for the comparable periods of 2008. Operating cash flow for the full year of 2009 reflects the $21 million received to settle a patent dispute in the fourth quarter.
Net Income
For the fourth quarter of 2009, the Company recorded net income of $2.2 million or $0.12 per share, compared to $6.0 million or $0.34 per share in 2008. For the full year of 2009, net income was $3.2 million or $0.18 per share compared to $11.2 million or $0.64 per share for the full year of 2008. Excluding non-recurring items such as bond gains, acquisition expenses, and patent royalty revenue, net income would have been $0.36 per share for the full year of 2009 or essentially even with 2008.
COMMENTARY
“In a very tough year we simply got stronger as a company, improving our operating model and tightening our capital allocation process,” said Kevin M. Goodwin, SonoSite President and CEO. “We successfully integrated CardioDynamics which included significant changes to their sales force during the fourth quarter, while successfully closing out our litigation matters and achieving 9% operating margins, a level similar to 2008, despite core revenues falling by $24 million or 10%.”
“With a difficult year behind us we are stronger and more focused on growth initiatives for 2010 and beyond. We have leaned out our ‘SG&A structure’ and are deploying our strategy across four key vertical markets,” said Mr. Goodwin.
“We have also initiated market development in cardiovascular disease management markets enabling us to expand our role in the cardiovascular health marketplace.”
“Additionally, we are at work on revising our capital structure with the recently announced “Dutch Auction” tender offer to repurchase $100 million of our shares. Following a two year evaluation of investment alternatives, it became clear to us that investing in our own stock was our best choice,” Mr. Goodwin further commented.
As of December 31, 2009, the company held $257.7 million in cash and investments and had outstanding senior convertible notes of $114.7 million for net liquidity of $143.0 million.
2010 FINANCIAL OUTLOOK
The company provided the following guidance:
NON-GAAP MEASURES
This release includes a discussion of management measures that are non-GAAP. We believe it is useful for investors to understand the comparison of operating results in 2009 versus 2008 by eliminating the impact of the CDIC related charges, convertible debt repurchase, and partial year patent royalty revenues using non-GAAP measures.
Conference Call Information
SonoSite will hold a conference call on February 11 at 1:30 pm PT/4:30 pm ET. The call will be broadcast live and can be accessed via www.sonosite.com/company/investors. A replay of the audio webcast will be available beginning February 11, 2010, 5:30 pm PT and will be available until February 25, 2010, 9:59 pm PT by dialing (719) 457-0820 or toll-free (888) 203-1112. The confirmation code 7406921 is required to access the replay. The call will also be archived on SonoSite’s website.
About SonoSite
SonoSite, Inc. (www.sonosite.com) is the innovator and world leader in hand-carried ultrasound. Headquartered near Seattle, the company is represented by ten subsidiaries and a global distribution network in over 100 countries. SonoSite’s small, lightweight systems are expanding the use of ultrasound across the clinical spectrum by cost-effectively bringing high performance ultrasound to the point of patient care.
Forward-looking Information and the Private Litigation Reform Act of 1995
Certain statements in this press release relating to our future financial position and operating results are “forward-looking statements” for the purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the opinions and estimates of our management at the time the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those expected or implied by the forward-looking statements. These statements are not guaranties of future performance, are based on potentially inaccurate assumptions and are subject to known and unknown risks and uncertainties, including, without limitation, the risk that the acquisition of CardioDynamics will not yield the expected potential benefits, our ability to manufacture, market and sell our newest products, spending patterns in the hospital market, healthcare reform, prolonged adverse conditions in the U.S. or world economies or SonoSite’s industry and the other factors contained in Item 1A. “Risk Factors” section of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. We caution readers not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. We undertake no obligation to publicly revise any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
Download Q4 Selected Financial Information (PDF)
Posted January 21st, 2010 in Press Releases
BOTHELL, WA – January 21, 2010 – SonoSite, Inc. (Nasdaq:SONO), the world leader and specialist in hand-carried ultrasound for the point-of-care, said today that it will report the company’s fourth quarter financial results on Thursday, February 11, 2010 at the close of market and will host a conference call at 1:30 p.m. PT/4:30 p.m. ET. The call will be broadcast live and can be accessed via SonoSite’s website at www.sonosite.com/investorinformation/webcasts.
A replay of the audio webcast will be available beginning February 11, 2010 at 5:30 p.m. PT and can be accessed until February 25, 2010 at 9:59 p.m. PT by dialing (719) 457-0820 or toll-free (888) 203-1112. The confirmation code 7406921 is required to access the replay. Additionally, the call will be archived on SonoSite’s website.
About SonoSite
SonoSite, Inc. (www.sonosite.com) is the innovator and world leader in hand-carried ultrasound. Headquartered near Seattle, the company is represented by ten subsidiaries and a global distribution network in over 100 countries. SonoSite’s small, lightweight systems are expanding the use of ultrasound across the clinical spectrum by cost-effectively bringing high-performance ultrasound to the point of patient care.
Posted January 19th, 2010 in Press Releases
BOTHELL, WA – January 19, 2010 – SonoSite, Inc. (Nasdaq:SONO), the world leader and specialist in hand-carried ultrasound for the point-of-care, today announced the commencement of its previously announced tender offer to repurchase up to $100 million of the Company’s common stock for cash through a modified “Dutch Auction” tender offer.
As previously announced, under the terms of the tender offer, SonoSite shareholders have the opportunity to tender some or all of their shares at a price within the range of $26.10 to $30.00 per share. Based on the number of shares tendered and the prices specified by the tendering shareholders, SonoSite will determine the lowest per share price within the range that will enable it to buy $100 million in shares, or such lesser number of shares that are properly tendered. All shares accepted for payment will be paid the same price, regardless of whether a shareholder tendered such shares at a lower price within the range. At the minimum price of $26.10 per share, SonoSite would repurchase a maximum of 3,831,417 shares, which represents approximately 22% of SonoSite’s currently outstanding common stock. SonoSite will fund the repurchase from available cash on hand. The low and high ends of the price range represent approximately a 0% and 15% premium, respectively, to the share closing price for our common stock on January 8, 2010, which was the trading day immediately preceding the original announcement of the proposed tender offer.
The tender offer will expire at 5:00 p.m., New York City time, on Friday, February 19, 2010, unless extended by SonoSite. Tenders of shares must be made on or prior to the expiration of the tender offer and may be withdrawn at any time on or prior to the expiration of the tender offer. The tender offer is subject to various terms and conditions described in offer materials that were publicly filed and distributed to shareholders today. Additional copies of the offer materials will also be available from the Information Agent, Georgeson Inc. The Dealer Manager for the tender offer is J.P. Morgan Securities Inc.
Neither SonoSite’s management, nor any of its board of directors, executive officers, the Dealer Manager, the Information Agent or the depositary is making any recommendation to shareholders as to whether to tender or refrain from tendering their shares in the tender offer or at which price or prices to tender their shares. The company’s executive officers, senior management and directors have advised the company that they do not intend to tender any of their shares in the tender offer. Shareholders must decide how many shares they will tender, if any, and the price or prices within the stated range at which they will tender their shares. Shareholders should consult their financial and tax advisors in making this decision.
This press release is for information purposes only, and is not an offer to purchase or the solicitation of an offer to sell any shares of SonoSite common stock. The solicitation of offers to purchase shares of SonoSite common stock will be made only pursuant to the tender offer documents, including an Offer to Purchase and related Letter of Transmittal that will be distributed to shareholders and filed with the Securities and Exchange Commission shortly.
SONOSITE SHAREHOLDERS ARE URGED TO READ THE TENDER OFFER STATEMENT (INCLUDING THE OFFER TO PURCHASE, LETTER OF TRANSMITTAL AND RELATED TENDER OFFER DOCUMENTS) AND ANY OTHER DOCUMENTS FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ON THE TENDER OFFER.
Holders of common stock are able to obtain these documents, free of charge, at the SEC’s website at www.sec.gov, or at the SEC’s public reference room located at 100 F Street, N.E., Washington, DC 20549. Please call the SEC at 1-800-SEC-0330 for further information about the public reference room. In addition, holders of common stock will also be able to request copies of the Tender Offer Statement, the Offer to Purchase, related Letter of Transmittal and other filed tender offer documents free of charge by contacting Georgeson Inc., the Information Agent for the Offer, by telephone at (800) 509-0976 (toll-free), or in writing to 199 Water Street, 26th Floor, New York, New York 10038-3560.
About SonoSite
SonoSite, Inc. (www.sonosite.com) is the innovator and world leader in hand-carried ultrasound. Headquartered near Seattle, the company is represented by ten subsidiaries and a global distribution network in over 100 countries. SonoSite’s small, lightweight systems are expanding the use of ultrasound across the clinical spectrum by cost-effectively bringing high performance ultrasound to the point of patient care.
Forward-looking Information and the Private Litigation Reform Act of 1995
Certain statements in this press release relating to SonoSite’s tender offer, including the number of shares SonoSite expects to repurchase in the offer, the price range within which it will repurchase such shares and the expected expiration date of the offer, are “forward-looking statements” for the purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the opinions and estimates of our management at the time the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those expected or implied by the forward-looking statements. These statements are not guaranties of future performance, are based on potentially inaccurate assumptions and are subject to known and unknown risks and uncertainties, including, without limitation, the risk of a significant change in the price of SonoSite common stock, the risk of unanticipated cash requirements or prolonged adverse conditions in the U.S. or world economies or SonoSite’s industry and the other factors contained in Item 1A. “Risk Factors” section of SonoSite’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. SonoSite cautions readers not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. SonoSite undertakes no obligation to publicly revise any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
Posted January 11th, 2010 in Press Releases
BOTHELL, WA – January 11, 2010 – SonoSite, Inc. (Nasdaq:SONO), the world leader and specialist in hand-carried ultrasound for the point-of-care, today announced that its Board of Directors has authorized SonoSite to repurchase up to $150 million of the Company’s common stock or outstanding convertible notes for cash. In connection with the repurchase authorization, the company will purchase up to $100 million of the Company’s common stock through a modified “Dutch Auction” tender offer. SonoSite intends to commence the tender offer during the week of January 18, 2010.
Under the terms of the proposed tender offer, SonoSite shareholders will have the opportunity to tender some or all of their shares at a price within the range of $26.10 to $30.00 per share. Based on the number of shares tendered and the prices specified by the tendering shareholders, SonoSite will determine the lowest per share price within the range that will enable it to buy $100 million in shares, or such lesser number of shares that are properly tendered. All shares accepted for payment will be paid the same price, regardless of whether a shareholder tendered such shares at a lower price within the range. At the minimum price of $26.10 per share, SonoSite would repurchase a maximum of 3,831,417 shares, which represents approximately 22% of SonoSite’s currently outstanding common stock. SonoSite will fund the repurchase from available cash on hand. The low and high ends of the price range represent approximately a 0% and 15% premium, respectively, to the most recent share closing price of $26.10 per share. Based on the January 8, 2010 closing price, the share price has increased 10% year-to-date.
The tender offer will be subject to various terms and conditions as will be described in offer materials that will be publicly filed and distributed to shareholders at the time of commencement of the tender offer during the week of January 18, 2010. Additional copies of the offer materials will also be available from the Information Agent, Georgeson Inc. The Dealer-Manager for the tender offer will be J.P. Morgan Securities Inc.
Kevin M. Goodwin, the Company’s President and Chief Executive Officer, said, “After evaluating various opportunities for two years, we concluded that the best investment of our cash was in our own stock. Moreover, we believe that the tender offer will benefit stockholders by providing an efficient mechanism for those who desire liquidity at a premium over current trading prices and, for our remaining stockholders, an enhanced ability to participate in the long-term earnings potential of our business.”
Neither SonoSite’s management, nor any of its board of directors, executive officers, the dealer manager, the information agent or the depositary is making any recommendation to shareholders as to whether to tender or refrain from tendering their shares in the proposed tender offer. The company’s executive officers, senior management and directors have advised the company that they do not intend to tender any of their shares in the tender offer. Shareholders must decide how many shares they will tender, if any, and the price within the stated range at which they will tender their shares. Shareholders should consult their financial and tax advisors in making this decision.
This press release is for information purposes only, and is not an offer to purchase or the solicitation of an offer to sell any shares of SonoSite common stock. The solicitation of offers to purchase shares of SonoSite common stock will be made only pursuant to the tender offer documents, including an Offer to Purchase and related Letter of Transmittal that SonoSite intends to distribute to shareholders and file with the Securities and Exchange Commission during the week of January 18, 2010.
SONOSITE SHAREHOLDERS ARE URGED TO READ THE TENDER OFFER STATEMENT (INCLUDING THE OFFER TO PURCHASE, LETTER OF TRANSMITTAL AND RELATED TENDER OFFER DOCUMENTS) WHEN IT BECOMES AVAILABLE AND ANY OTHER DOCUMENTS FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ON THE TENDER OFFER.
Holders of common stock will be able to obtain these documents as they become available free of charge at the SEC’s website at www.sec.gov, or at the SEC’s public reference room located at 100 F Street, N.E., Washington, DC 20549. Please call the SEC at 1-800-SEC-0330 for further information about the public reference room. In addition, holders of common stock will also be able to request copies of the Tender Offer Statement, the Offer to Purchase, related Letter of Transmittal and other filed tender offer documents free of charge by contacting Georgeson Inc., the Information Agent for the Offer, by telephone at (800) 509-0976 (toll-free), or in writing to 199 Water Street, 26th Floor, New York, New York 10038-3560.
About SonoSite
SonoSite, Inc. (www.sonosite.com) is the innovator and world leader in hand-carried ultrasound. Headquartered near Seattle, the company is represented by ten subsidiaries and a global distribution network in over 100 countries. SonoSite’s small, lightweight systems are expanding the use of ultrasound across the clinical spectrum by cost-effectively bringing high performance ultrasound to the point of patient care.
Forward-looking Information and the Private Litigation Reform Act of 1995
Certain statements in this press release relating to SonoSite’s proposed tender offer, including the anticipated commencement date of the offer, the expected number of shares SonoSite expects to repurchase in the offer, the price range within which it will repurchase such shares and the expected expiration date of the offer, are “forward-looking statements” for the purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the opinions and estimates of our management at the time the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those expected or implied by the forward-looking statements. These statements are not guaranties of future performance, are based on potentially inaccurate assumptions and are subject to known and unknown risks and uncertainties, including, without limitation, the risk of delays in effecting the tender, the risk of a significant change in the price of SonoSite common stock, the risk of unanticipated cash requirements or prolonged adverse conditions in the U.S. or world economies or SonoSite’s industry and the other factors contained in Item 1A. “Risk Factors” section of SonoSite’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. SonoSite cautions readers not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. SonoSite undertakes no obligation to publicly revise any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
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©2009–2010 SonoSite, Inc. All rights reserved.
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