April 23, 2008 - Q2 Earnings Results

INVESTOR CONTACT:

A. Ernest Whiton
Chief Financial Officer
ZOLL Medical Corporation
+1 (978) 421-9655

 

 

 

ZOLL Medical Corporation Announces Record Second Quarter Results

-Quarterly Revenue Increases 40%; Quarterly EPS Increases 80% -

April 23, 2008Chelmsford, Mass. – ZOLL Medical Corporation (NasdaqGS: ZOLL), a manufacturer of resuscitation devices and software solutions, today announced revenues for the second quarter of fiscal 2008 of $99,160,000, an increase of 40% compared to revenues in the second quarter of last year. Net income for the quarter was $5,654,000, compared to $3,172,000 in the prior year, an increase of 78%. Diluted earnings per share were $0.27, compared to $0.15 in the prior year. Backlog at the end of the second quarter was approximately $14 million.

Second quarter sales to the North American market increased 40% to $74.6 million, compared to $53.2 million for the comparable prior-year quarter. Sales to the North American hospital market increased 73% to $27.9 million, compared to $16.1 million in the second quarter of last year. Excluding US Military/Big Government sales, North American hospital sales increased 61%. US Military/Big Government sales were $3.7 million, compared to $1.0 million in the prior-year period. Sales to the North American pre-hospital market increased 28% to $41.0 million, compared to $31.9 million in the same period last year. International sales increased 39% to $24.6 million, compared to $17.7 million for the comparable prior-year quarter. Total AutoPulse shipments were $3.4 million in the quarter, compared to $3.3 million in the second quarter of the prior year.

As expected, gross margin was up sharply from the first quarter, and was in line with historical levels. Gross margin for Q2 was 54.1%, slightly higher than the 53.7% gross margin for the prior-year second quarter.

Richard A. Packer, President and Chief Executive Officer of ZOLL, commented, “Overall, Q2 represented another great quarter for ZOLL. We experienced growth in all major parts of our business. We continue to see momentum with the R Series™ product in the North American hospital market. The North American pre-hospital business also did very well with all elements, professional defibrillators, data management software, LifeVest®, AEDs and AutoPulse®, experiencing continued growth. Once again, our International business delivered another solid quarter of growth, with the strongest growth this quarter coming from our direct subsidiaries relative to our business partners/distributors.”

Mr. Packer concluded, “Based on our strength in the first half of fiscal 2008, we believe we will modestly outperform our FY2008 plan. We hope to achieve earnings per share of $1.10 for fiscal 2008, a 10% increase from our original guidance of $1.00 established at the beginning of the fiscal year.”

ZOLL will host a conference call on Wednesday, April 23, 2008 at 10:30 a.m. EDT to discuss its second quarter financial results. This conference call will be accessible on the Company’s home page at www.zoll.com. Recorded replays of this conference call will be available on the web page beginning later that day.

About ZOLL Medical Corporation

ZOLL Medical Corporation is committed to developing technologies that help advance the practice of resuscitation. With products for pacing, defibrillation, circulation, ventilation, and fluid resuscitation, ZOLL provides a comprehensive set of technologies, including Real CPR Help® and See Thru CPR™, that help clinicians, EMS professionals, and lay rescuers resuscitate sudden cardiac arrest or trauma victims. ZOLL also designs and markets software that automates the documentation and management of both clinical and non-clinical information.

ZOLL markets and sells its products in more than 140 countries. The Company has direct operations, distributor networks, and business partners throughout the U.S., Canada, Latin America, Europe, the Middle East and Africa, Asia, and Australia. 2008 marks the 25th anniversary of ZOLL’s resuscitation product development. For more information, visit www.zoll.com.

Certain statements contained in this press release, including statements regarding the future business of the Company, and other statements contained herein regarding matters that are not historical facts, are “forward-looking” statements (as defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those factors discussed in the section entitled “Risk Factors” in the Company's Quarterly Report on Form 10-Q filed with the SEC on February 5, 2008. You should not place undue reliance on the forward-looking statements in this press release, and the Company disavows any obligation to update or supplement those statements in the event of any changes in the facts, circumstances, or expectations that underlie those statements.

©2008 ZOLL Medical Corporation. All rights reserved. 269 Mill Road, Chelmsford, MA 01824-4105. R Series and See-Thru CPR are trademarks, and AutoPulse, LifeVest, Real CPR Help and ZOLL are registered trademarks, of ZOLL Medical Corporation. All trademarks are property of their respective owners.

ZOLL MEDICAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

 

 

March 30,
2008

September 30,
2007

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

$ 26,995

$ 37,631

Short-term investments

18,205

19,767

Accounts receivable, net

81,021

78,086

Inventory

63,073

57,929

Prepaid expenses and other current assets

12,422

11,809

Total current assets

201,716

205,222

Property and equipment, net

35,009

32,504

Other assets, net

83,576

81,712

 

 

$ 320,301

$ 319,438

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

Current liabilities:

 

 

Accounts payable

$ 18,337

$ 21,860

Accrued expenses and other liabilities

55,457

61,792

Total current liabilities

73,794

83,652

Total stockholders’ equity

246,507

235,786

 

$ 320,301

$ 319,438

 

ZOLL MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

 

 

Three Months Ended

Six Months Ended

 

March 30,
2008

April 1,
2007

March 30,
2008

April 1,
2007

Net sales

$ 99,160

$ 70,839

$ 192,175

$ 137,434

Cost of goods sold

45,522

32,820

93,392

63,437

Gross profit

53,638<