Company Posts Non-GAAP EPS of $0.45(1), Excluding $0.07 of Expenses
Related to Tepnel Acquisition, and GAAP EPS of $0.38
Record Quarterly STD Sales, Tepnel Acquisition Drive New Highs for Clinical
Diagnostics and Total Product Revenues
SAN DIEGO, July 30 /PRNewswire-FirstCall/ -- Gen-Probe Incorporated
(Nasdaq: GPRO) today reported financial results for the second quarter of
2009, including non-GAAP earnings per share (EPS) of $0.45 and record sexually
transmitted disease (STD), clinical diagnostics and total product sales.
"Gen-Probe posted solid earnings in the second quarter of 2009 as a good
performance from our core STD franchise, the inclusion of initial revenues
from our Tepnel acquisition, and portfolio gains outweighed
lower-than-expected blood screening sales," said Carl Hull, the Company's
president and chief executive officer. "In addition, the key R&D projects
that we expect to boost future growth - including our PANTHER instrument and
new tests for human papillomavirus (HPV), prostate cancer and trichomonas -
remain on track."
In the second quarter of 2009, product sales were $116.8 million, compared
to $113.7 million in the prior year period, an increase of 3%. Compared to
the second quarter of 2008, the stronger U.S. dollar reduced product sales
growth by an estimated 4%(2). Total revenues for the second quarter of 2009
were $120.5 million, compared to $119.8 million in the prior year period, an
increase of 1%.
Net income was $23.2 million ($0.45 per share) on a non-GAAP basis in the
second quarter of 2009, compared to $24.8 million ($0.45 per share) in the
prior year period, a decrease of 6%. Including $4.4 million ($0.07 per share)
of expenses related to the Company's acquisition of Tepnel, which closed on
April 8, 2009, net income in the second quarter of 2009 was $19.8 million
($0.38 per share) on a GAAP basis.
For the first six months of 2009, product sales were $229.3 million,
compared to $215.2 million in the prior year period, an increase of 7%.
Compared to the first half of 2008, the stronger U.S. dollar reduced product
sales growth by an estimated 4%. Total revenues for the first six months of
2009 were $236.7 million, compared to $242.4 million in the prior year period,
a decrease of 2%.
Net income was $50.2 million ($0.96 per share) on a non-GAAP basis in the
first six months of 2009, compared to $56.7 million ($1.03 per share) in the
prior year period, a decrease of 11% (7% per share). Including $6.0 million
($0.09 per share) of expenses related to the Company's acquisition of Tepnel,
net income in the first six months of 2009 was $45.6 million ($0.87 per share)
on a GAAP basis.
As previously disclosed, Gen-Probe's total revenues, net income and EPS in
the first six months of 2008 benefited from a number of non-recurring items,
most notably $16.4 million of royalty and license revenue ($0.20 of EPS) that
was recorded in the first quarter associated with the settlement of
Gen-Probe's patent infringement litigation against Bayer (now Siemens
Healthcare Diagnostics). By comparison, the Company's product sales, total
revenues, net income and EPS in the first six months of 2009 benefited from
$8.2 million of one-time revenue ($0.10 of EPS) recorded in the first quarter
associated with the previously announced renegotiation of the Company's
collaboration agreement with Novartis Diagnostics.
Detailed Results
Gen-Probe's clinical diagnostics sales in the second quarter of 2009
benefited from revenue associated with Tepnel's transplant diagnostics and
genetic testing products, and continued growth of the APTIMA Combo 2 assay,
an amplified nucleic acid test (NAT) for simultaneously detecting Chlamydia
trachomatis and Neisseria gonorrhoeae. Sales of our market-leading assay
increased based on market share gains on both the Company's semi-automated
instrument platform and on the high-throughput, fully automated TIGRIS
system. Revenue from the PACE product line, the Company's non-amplified
tests for the same microorganisms, declined in the second quarter compared to
the prior year period, in line with Gen-Probe's expectations. Clinical
diagnostics sales were negatively affected by the stronger U.S. dollar, which
reduced growth by an estimated 2% compared to the prior year period.
In blood screening, product sales in the second quarter of 2009 were
negatively affected by $8.8 million of lower product shipments to the
Company's commercial partner, Novartis Diagnostics. This reduction resulted
primarily from: lower West Nile virus assay shipments due to previously
discussed ordering patterns; lower U.S. shipments of the PROCLEIX ULTRIO assay
due to the post-marketing study that was underway in the prior year period;
and lower U.S. shipments of the PROCLEIX HIV-1/HCV assay as customers prepared
to adopt the PROCLEIX ULTRIO assay. Blood screening sales growth also was
negatively affected by the stronger U.S. dollar, which reduced growth by an
estimated 6%, and by a one-time payment of $2.6 million in the prior year
period related to historical revenue adjustments made in the Novartis
collaboration.
"Blood screening sales were lower than expected in the second quarter, as
ordering patterns that were more negative than forecast outweighed a
low-single-digit percentage increase in underlying donations tested and stable
market shares," Mr. Hull said.
Sales of research products and services in the second quarter of 2009 were
$3.2 million. These sales, which were associated with the Tepnel acquisition,
were not included in Gen-Probe's prior year results.
Second quarter product sales were, in millions:
Three Months Ended June 30, Change
------------------------- ------
As Constant
2009(3) 2008(4) Reported Currency
------- ------- -------- --------
Clinical
Diagnostics $67.8 $57.2 19% 21%
Blood Screening $45.8 $56.5 -19% -13%
Research Products
and Services $3.2 N/A N/A N/A
----------------- ----- --- --- ---
Total Product
Sales $116.8 $113.7 3% 7%
First half product sales were, in millions:
Six Months Ended June 30, Change
------------------------ ------
As Constant
2009 2008 Reported Currency
---- ---- -------- --------
Clinical
Diagnostics $127.4 $109.7 16% 19%
Blood Screening $98.7 $105.5 -6% -1%
Research Products
and Services $3.2 N/A N/A N/A
----------------- ---- --- --- ---
Total Product
Sales $229.3 $215.2 7% 11%
Collaborative research revenues for the second quarter of 2009 were $2.2
million, compared to $4.7 million in the prior year period, a decrease of 53%.
This decrease resulted mainly from $2.7 million of previously deferred
milestone revenue that the Company recognized in the prior year period based
on the termination of its collaboration with 3M regarding
healthcare-associated infections. For the first six months of 2009,
collaborative research revenues were $3.9 million, compared to $7.1 million in
the prior year period, a decrease of 45%.
Royalty and license revenues for the second quarter of 2009 were $1.5
million, compared to $1.5 million in the prior year period. For the first six
months of 2009, royalty and license revenues were $3.5 million, compared to
$20.1 million in the prior year period. As previously discussed, this
significant decrease resulted primarily from $16.4 million of royalty and
license revenue that was recorded in the first quarter of 2008 associated with
the settlement of Gen-Probe's patent infringement litigation against Bayer.
This revenue represented the third and final payment due in connection with
the 2006 settlement of the companies' litigation.
Gross margin on product sales in the second quarter of 2009 was 67.3% on a
non-GAAP basis that excludes $0.1 million of acquisition-related depreciation
expense, compared to 71.4% in the prior year period. This decrease resulted
primarily from the stronger U.S. dollar, the addition of Tepnel's generally
lower-margin revenues, and the previously discussed $2.6 million payment in
the prior year period related to historical revenue adjustments in the
Novartis collaboration. For the first six months of 2009, gross margin on
product sales was 68.8% on a non-GAAP basis that excludes $0.1 million of
acquisition-related depreciation expense, compared to 69.7% in the prior year
period. On a GAAP basis, gross margin on product sales was 67.2% in the
second quarter of 2009, and 68.8% for the first six months of the year.
Acquisition-related intangible amortization expenses in each of the second
quarter and first six months of 2009 were $1.1 million, compared to $0 in the
comparable prior year periods.
Research and development (R&D) expenses in the second quarter of 2009 were
$26.1 million, compared to $29.4 million in the prior year period, a decrease
of 11%. This decrease resulted primarily from a non-recurring charge in the
prior year period, namely a $3.5 million write-off of previously capitalized
expenses associated with intellectual property acquired in 2005 from Corixa.
For the first six months of 2009, R&D expenses were $51.1 million, compared to
$52.4 million in the prior year period, a decrease of 2%. R&D expenses are
expected to increase significantly in the third quarter of 2009, to
approximately $30 million, based on clinical trials of the Company's HPV, PCA3
and trichomonas assays.
Marketing and sales expenses in the second quarter of 2009 were $14.0
million, compared to $11.5 million in the prior year period, an increase of
22% that resulted primarily from the addition of Tepnel's cost structure, and
European sales force expansion and market development efforts. For the first
six months of 2009, marketing and sales expenses were $25.1 million, compared
to $23.4 million in the prior year period, an increase of 7%.
General and administrative (G&A) expenses in the second quarter of 2009
were $14.6 million on a non-GAAP basis that excludes $3.2 million of
acquisition-related expense, compared to $13.7 million in the prior year
period, an increase of 7% that resulted primarily from the addition of
Tepnel's cost structure. For the first six months of 2009, G&A expenses were
$26.9 million on a non-GAAP basis that excludes $4.8 million of
acquisition-related expense, compared to $25.6 million in the prior year
period, an increase of 5%. On a GAAP basis, G&A expenses were $17.8 million
in the second quarter of 2009, up 30% compared to the prior year period, and
$31.7 million for the first six months of the year, up 24% compared to the
prior year period.
Total other income in the second quarter of 2009 was $8.5 million,
compared to $3.7 million in the prior year period, an increase of 130% that
resulted primarily from the Company's previously communicated decision to sell
portions of its municipal bond portfolio, and to use the proceeds to
repurchase stock. For the first six months of 2009, total other income was
$13.1 million, compared to $9.4 million in the prior year period, an increase
of 39%.
In the second quarter of 2009, Gen-Probe generated net cash of $22.8
million from its operating activities, and repurchased approximately 1.6
million shares of its stock for approximately $70 million.
Gen-Probe continues to have a strong balance sheet. As of June 30, 2009,
the Company had $569.2 million of cash, cash equivalents and marketable
securities, and $240.9 million of short-term debt. The Company currently pays
interest on funds borrowed under its credit facility at a rate 0.6 percent
above the one-month London Interbank Offered Rate (LIBOR), which was recently
0.3 percent.
Updated 2009 Financial Guidance
"We continue to expect solid growth in our clinical diagnostics business
in 2009 as well as industry-leading profitability on the bottom line," said
Herm Rosenman, Gen-Probe's senior vice president, finance, and chief financial
officer. "However, we are lowering the top end of our full-year revenue and
EPS guidance slightly to account for lower-than-expected blood screening
revenues in the second quarter and slower anticipated blood screening growth
going forward."
In the table below, Gen-Probe's non-GAAP guidance excludes certain
expenses related to the Tepnel acquisition, namely transaction costs and the
amortization of purchased intangibles. These expenses are forecast to total
between $8 million and $9 million in 2009, equating to between ($0.10) and
($0.12) of EPS on a GAAP basis.
Current Previous Current Previous
Guidance Guidance Guidance Guidance
(non-GAAP) (non-GAAP) (GAAP) (GAAP)
---------- -------- ----- -----
Total revenues $490 to $503 $490 to $510 $490 to $503 $490 to $510
million million million million
Product gross
margins 68% to 69% 68% to 70% 68% to 69% 68% to 70%
Acquisition-related
intangibles
amortization N/A N/A $3-4 million N/A
R&D expenses ~ 22% 21% to 23% ~ 22% 21% to 23%
Marketing and
sales expenses 10% to 11% 10% to 11% 10% to 11% 11% to 12%
G&A expenses 10% to 11% 10% to 11% 11% to 12% 11% to 12%
Tax rate ~ 34% 33% to 34% ~ 34% 33% to 34%
Diluted shares ~ 52 million ~ 52 million ~ 52 million ~ 52 million
EPS $1.85 to $1.95 $1.85 to $2.00 $1.73 to $1.85 $1.72 to $1.90
Webcast Conference Call
A live webcast of Gen-Probe's second quarter 2009 conference call for
investors can be accessed at http://www.gen-probe.com beginning at 4:30 p.m.
Eastern Time today. The webcast will be archived for at least 90 days. A
telephone replay of the call also will be available for approximately 24
hours. The replay number is 800-879-6754 for domestic callers or 402-220-5334
for international callers.
About Gen-Probe
Gen-Probe Incorporated is a global leader in the development, manufacture
and marketing of rapid, accurate and cost-effective NATs that are used
primarily to diagnose human diseases and screen donated human blood. Gen-Probe
has more than 25 years of NAT expertise, and received the 2004 National Medal
of Technology, America's highest honor for technological innovation, for
developing NAT assays for blood screening. Gen-Probe is headquartered in San
Diego and employs approximately 1,200 people. For more information, go to
www.gen-probe.com.
Trademarks
APTIMA, APTIMA COMBO 2, PACE, PROGENSA and TIGRIS are trademarks of
Gen-Probe Incorporated. ULTRIO and PROCLEIX are trademarks of Novartis
Diagnostics. All other trademarks are the property of their owners.
About Non-GAAP Financial Measures
To supplement Gen-Probe's financial results for the second quarter of 2009
and its updated 2009 financial guidance, in each case presented in accordance
with GAAP, Gen-Probe uses the following financial measures defined as non-GAAP
by the SEC: non-GAAP net income, gross margin, G&A expenses, effective income
tax rate, and EPS. Gen-Probe's management does not itself, nor does it
suggest that investors should, consider such non-GAAP financial measures in
isolation from, or as a substitute for, financial information prepared and
presented in accordance with GAAP. Gen-Probe's management believes that these
non-GAAP financial measures provide meaningful supplemental information
regarding the Company's performance by excluding certain expenses that may not
be indicative of core business results. Gen-Probe believes that both
management and investors benefit from referring to these non-GAAP financial
measures in assessing Gen-Probe's performance and when planning, forecasting
and analyzing future periods. These non-GAAP financial measures also
facilitate management's internal comparisons to Gen-Probe's historical
performance and our competitors' operating results. Gen-Probe believes these
non-GAAP financial measures are useful to investors in allowing for greater
transparency with respect to supplemental information used by management in
its financial and operational decision making.
Caution Regarding Forward-Looking Statements
Any statements in this press release about our expectations, beliefs,
plans, objectives, assumptions or future events or performance, including
those under "Updated 2009 Financial Guidance," are not historical facts and
are forward-looking statements. These statements are often, but not always,
made through the use of words or phrases such as believe, will, expect,
anticipate, estimate, intend, plan and would. For example, statements
concerning Gen-Probe's financial condition, possible or expected results of
operations, regulatory approvals, future milestone payments, growth
opportunities, and plans and objectives of management are all forward-looking
statements. Forward-looking statements are not guarantees of performance.
They involve known and unknown risks, uncertainties and assumptions that may
cause actual results, levels of activity, performance or achievements to
differ materially from those expressed or implied. Some of these risks,
uncertainties and assumptions include but are not limited to: (i) the risk
that we may not achieve our expected 2009 financial targets, (ii) the risk
that we may not integrate acquisitions, such as Tepnel, successfully, (iii)
the possibility that the market for the sale of our new products, such as our
TIGRIS system, PROCLEIX ULTRIO assay and PROGENSA PCA3 assay, may not develop
as expected, (iv) the enhancement of existing products and the development of
new products, including products, if any, to be developed under our industrial
collaborations, may not proceed as planned, (v) the risk that products,
including the investigational PROGENSA PCA3 assay for which we expect to begin
clinical trials shortly, may not be approved by regulatory authorities or
commercially available in the time frame we anticipate, or at all, (vi) the
risk that we may not be able to compete effectively, (vii) the risk that we
may not be able to maintain our current corporate collaborations and enter
into new corporate collaborations or customer contracts, (viii) our dependence
on Novartis, Siemens (as assignee of Bayer) and other third parties for the
distribution of some of our products, (ix) our dependence on a small number of
customers, contract manufacturers and single source suppliers of raw
materials, (x) changes in third-party reimbursement policies regarding our
products could adversely affect sales of our products, (xi) changes in
government regulation affecting our diagnostic products could harm our sales
and increase our development costs, (xii) the risk that our intellectual
property may be infringed by third parties or invalidated, and (xiii) our
involvement in patent and other intellectual property and commercial
litigation could be expensive and could divert management's attention. This
list includes some, but not all, of the factors that could affect our ability
to achieve results described in any forward-looking statements. For
additional information about risks and uncertainties we face and a discussion
of our financial statements and footnotes, see documents we file with the SEC,
including our most recent annual report on Form 10-K and all subsequent
periodic reports. We assume no obligation and expressly disclaim any duty to
update forward-looking statements to reflect events or circumstances after the
date of this news release or to reflect the occurrence of subsequent events.
(1) In this press release, all per share amounts are calculated on a
fully diluted basis. Non-GAAP EPS for the second quarter of 2009 excludes
$4.4 million ($0.07 per share) of expenses related to the Company's
acquisition of Tepnel, which closed on April 8, 2009. Some totals may not
foot due to rounding.
(2) Throughout this press release, all estimates of "constant currency"
growth exclude foreign currency fluctuations associated with acquired Tepnel
revenues, since Tepnel was not part of Gen-Probe in the prior year period.
(3) 2009 and percentage changes include transplant diagnostics and
genetic testing product sales associated with the Tepnel acquisition.
(4) 2008 figures exclude revenues associated with the Tepnel acquisition,
since Tepnel was not part of Gen-Probe in the prior year period.
Gen-Probe Incorporated
Consolidated Balance Sheets - GAAP
(In thousands, except share and per share data)
June 30, December 31,
2009 2008
---- ----
(unaudited)
Assets
Current assets:
Cash and cash equivalents $233,506 $60,122
Marketable securities 230,698 371,276
Trade accounts receivable, net of allowance
for doubtful accounts of $691 and $700 at
June 30, 2009 and December 31, 2008,
respectively 39,946 33,397
Accounts receivable - other 2,852 2,900
Inventories 56,455 54,406
Deferred income tax 9,136 7,269
Prepaid income tax 6,863 2,306
Prepaid expenses 13,388 15,094
Other current assets 4,322 6,135
----- -----
Total current assets 597,166 552,905
Marketable securities, net of current
portion 105,037 73,780
Property, plant and equipment, net 153,767 141,922
Capitalized software, net 12,858 13,409
Goodwill 90,682 18,621
Deferred income tax, net of current portion 11,837 12,286
Purchased intangibles, net 57,930 298
Licenses, manufacturing access fees and
other assets, net 62,451 56,310
------ ------
Total assets $1,091,728 $869,531
========== ========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $19,477 $16,050
Accrued salaries and employee benefits 20,534 25,093
Other accrued expenses 10,983 4,027
Income tax payable 1,187 -
Short-term borrowings 240,872 -
Deferred income tax 1,406 -
Deferred revenue 2,204 1,278
----- -----
Total current liabilities 296,663 46,448
Non-current income tax payable 4,864 4,773
Deferred income tax, net of current portion 14,120 55
Deferred revenue, net of current portion 2,306 2,333
Other long-term liabilities 2,997 2,162
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value per
share, 20,000,000 shares authorized, none
issued and outstanding - -
Common stock, $0.0001 par value per share;
200,000,000 shares authorized, 50,581,177
and 52,920,971 shares issued and
outstanding at June 30, 2009 and December
31, 2008, respectively 5 5
Additional paid-in capital 292,828 382,544
Accumulated other comprehensive income 4,227 3,055
Retained earnings 473,718 428,156
------- -------
Total stockholders' equity 770,778 813,760
------- -------
Total liabilities and stockholders' equity $1,091,728 $869,531
========== ========
Gen-Probe Incorporated
Consolidated Statements of Income - GAAP
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
Revenues:
Product sales $116,816 $113,701 $229,338 $215,208
Collaborative research
revenue 2,187 4,651 3,862 7,110
Royalty and license
revenue 1,542 1,462 3,528 20,059
----- ----- ----- ------
Total revenues 120,545 119,814 236,728 242,377
Operating expenses:
Cost of product sales
(excluding acquisition-
related intangibles
amortization) 38,280 32,510 71,594 65,146
Acquisition-related
intangibles amortization 1,114 - 1,114 -
Research and development 26,069 29,368 51,067 52,434
Marketing and sales 14,015 11,453 25,070 23,361
General and administrative 17,823 13,671 31,670 25,608
------ ------ ------ ------
Total operating expenses 97,301 87,002 180,515 166,549
------ ------ ------- -------
Income from operations 23,244 32,812 56,213 75,828
Other income/(expense):
Interest income 10,122 3,900 15,004 8,107
Interest expense (726) (2) (877) (2)
Other income/(expense) (895) (191) (1,037) 1,282
---- ---- ------ -----
Total other income, net 8,501 3,707 13,090 9,387
----- ----- ------ -----
Income before income tax 31,745 36,519 69,303 85,215
Income tax expense 11,930 11,728 23,741 28,479
------ ------ ------ ------
Net income $19,815 $24,791 $45,562 $56,736
======= ======= ======= =======
Net income per share:
Basic $0.39 $0.46 $0.88 $1.05
===== ===== ===== =====
Diluted $0.38 $0.45 $0.87 $1.03
===== ===== ===== =====
Weighted average shares
outstanding:
Basic 51,285 53,907 51,851 53,859
====== ====== ====== ======
Diluted 52,061 55,147 52,598 55,093
====== ====== ====== ======
Gen-Probe Incorporated
Consolidated Statements of Income - Non-GAAP
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30, 2009
-------------
Non-GAAP Adjustments GAAP
-------- ----------- ----
Revenues:
Product sales $116,816 $- $116,816
Collaborative research
revenue 2,187 - 2,187
Royalty and license revenue 1,542 - 1,542
----- ----- -----
Total revenues 120,545 - 120,545
Operating expenses:
Cost of product sales
(excluding acquisition-
related intangibles
amortization) 38,190 90 38,280
Acquisition-related
intangibles amortization - 1,114 1,114
Research and development 26,069 - 26,069
Marketing and sales 14,015 - 14,015
General and administrative 14,619 3,204 17,823
------ ----- ------
Total operating expenses 92,893 4,408 97,301
------ ----- ------
Income from operations 27,652 (4,408) 23,244
Other income/(expense):
Interest income 10,122 - 10,122
Interest expense (726) - (726)
Other income/(expense) (895) - (895)
---- ---- ----
Total other income, net 8,501 - 8,501
----- ----- -----
Income before income tax 36,153 (4,408) 31,745
Income tax expense 12,951 (1,021) 11,930
------ ------ ------
Net income $23,202 $(3,387) $19,815
======= ======= =======
Net income per share:
Basic $0.45 $(0.07) $0.39
===== ====== =====
Diluted $0.45 $(0.07) $0.38
===== ====== =====
Weighted average shares
outstanding:
Basic 51,285 51,285 51,285
====== ====== ======
Diluted 52,061 52,061 52,061
====== ====== ======
Gen-Probe Incorporated
Consolidated Statements of Income - Non-GAAP
(In thousands, except per share data)
(Unaudited)
Six Months Ended
June 30, 2009
-------------
Non-GAAP Adjustments GAAP
-------- ----------- ----
Revenues:
Product sales $229,338 $- $229,338
Collaborative research
revenue 3,862 - 3,862
Royalty and license revenue 3,528 - 3,528
----- ----- -----
Total revenues 236,728 - 236,728
Operating expenses:
Cost of product sales
(excluding acquisition-
related intangibles
amortization) 71,504 90 71,594
Acquisition-related
intangibles amortization - 1,114 1,114
Research and development 51,067 - 51,067
Marketing and sales 25,070 - 25,070
General and administrative 26,864 4,806 31,670
------ ----- ------
Total operating expenses 174,505 6,010 180,515
------- ----- -------
Income from operations 62,223 (6,010) 56,213
Other income/(expense):
Interest income 15,004 - 15,004
Interest expense (877) - (877)
Other income/(expense) (1,037) - (1,037)
------ ----- ------
Total other income, net 13,090 - 13,090
------ ----- ------
Income before income tax 75,313 (6,010) 69,303
Income tax expense 25,069 (1,328) 23,741
------ ------ ------
Net income $50,244 $(4,682) $45,562
======= ======= =======
Net income per share:
Basic $0.97 $(0.09) $0.88
===== ====== =====
Diluted $0.96 $(0.09) $0.87
===== ====== =====
Weighted average shares
outstanding:
Basic 51,851 51,851 51,851
====== ====== ======
Diluted 52,598 52,598 52,598
====== ====== ======
Gen-Probe Incorporated
Consolidated Statements of Cash Flows - GAAP
(In thousands)
(Unaudited)
Six Months Ended
June 30,
--------
2009 2008
---- ----
Operating activities:
Net income $45,562 $56,736
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 19,463 17,233
Amortization of premiums on investments,
net of accretion of discounts 2,720 3,504
Stock-based compensation 11,405 9,228
Stock-based compensation income tax
benefits 310 1,294
Excess tax benefit from stock-based
compensation (702) (614)
Deferred revenue (255) (3,165)
Deferred income tax (1,041) (821)
Gain on sale of investment in MPI - (1,600)
Impairment of intangible assets - 3,496
Loss / (gain) on disposal of property
and equipment 69 (1)
Changes in assets and liabilities:
Trade and other accounts receivable 1,372 3,290
Inventories 3,890 (2,749)
Prepaid expenses 3,137 5,333
Other current assets 2,081 (1,322)
Goodwill 856 -
Other long-term assets (2,486) (909)
Accounts payable (2,218) 3,992
Accrued salaries and employee benefits (7,272) (1,732)
Other accrued expenses 1,337 (9)
Income tax payable (3,704) (72)
Other long-term liabilities 335 603
--- ---
Net cash provided by operating
activities 74,859 91,715
------ ------
Investing activities:
Proceeds from sales and maturities of
marketable securities 293,504 205,283
Purchases of marketable securities (189,091) (318,558)
Purchases of property, plant and
equipment (14,666) (25,717)
Capitalization of software development
costs (288) -
Purchases of intangible assets,
including licenses and manufacturing
access fees (811) (315)
Net cash paid for business combinations (123,816) -
Proceeds from sale of investment in MPI - 4,100
Cash paid for investment in DiagnoCure
and related license fees (5,250) -
Cash paid for Roche manufacturing access
fees - (10,000)
Other assets (289) 28
---- --
Net cash used in investing activities (40,707) (145,179)
------- --------
Financing activities:
Excess tax benefit from stock-based
compensation 702 614
Repurchase and retirement of restricted
stock for payment of taxes (38) (479)
Repurchases of common stock (105,577) -
Proceeds from issuance of common stock 3,777 10,814
Borrowings under short-term borrowings,
net 238,450 -
------- -----
Net cash provided by financing
activities 137,314 10,949
------- ------
Effect of exchange rate changes on cash
and cash equivalents 1,918 14
----- --
Net increase (decrease) in cash and cash
equivalents 173,384 (42,501)
Cash and cash equivalents at the
beginning of period 60,122 75,963
------ ------
Cash and cash equivalents at the end of
period $233,506 $33,462
======== =======
SOURCE: Gen-Probe Incorporated
CONTACT:
Michael Watts,
Vice president, investor relations and corporate
communications of Gen-Probe Incorporated,
+1-858-410-8673
Web Site: http://www.gen-probe.com
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