Second Quarter 2024 Highlights:
- Consolidated revenue was $496.3 million;
- Healthcare revenue was $343.9 million;
- Non-healthcare revenue was $152.4 million;
- GAAP net income per diluted share was $0.29; and
- Non-GAAP net income per diluted share was $0.86.
Masimo Corporation (Nasdaq: MASI) today announced its financial
results for the second quarter ended June 29, 2024.
Second Quarter 2024 Results:
Consolidated revenue was $496.3 million, comprised of healthcare
revenue of $343.9 million and non-healthcare revenue of $152.4
million.
Excluding handheld and fingertip pulse oximeters, shipments of
noninvasive technology boards and instruments were 58,600.
Consolidated GAAP operating income was $28.3 million.
Consolidated non-GAAP operating income was $72.9 million.
Consolidated GAAP net income was $16.0 million, or $0.29 per
diluted share. Consolidated non-GAAP net income was $46.6 million,
or $0.86 per diluted share.
Joe Kiani, Chairman and Chief Executive Officer of Masimo, said,
“Our team’s record-breaking contracting efforts, exceptional
execution of margin expansion initiatives and continued innovation
drove strong results for shareholders in the second quarter. On the
back of that performance and our growing momentum in the healthcare
market, we are increasing our full-year 2024 guidance for
healthcare revenue, consolidated operating income and consolidated
EPS.”
For additional financial details, please visit the Investor
Relations section of the Company’s website at investor.masimo.com
to access the second quarter 2024 earnings presentation
materials.
Third Quarter 2024 and Updated Full-Year 2024 Financial
Guidance:
The Company provided the following estimates for its third
quarter 2024 and updated full-year 2024 guidance:
Q3 2024
Guidance(1)
Updated Full-Year
2024 Guidance(1)
(in millions, except earnings per
diluted share)
GAAP
Non-GAAP
(Updated
Definition)(2)
GAAP
Non-GAAP
(Updated
Definition)(2)
Consolidated revenue
$495 to $515
$495 to $515
$2,085 to $2,135
$2,085 to $2,135
Healthcare revenue
$335 to $345
$335 to $345
$1,385 to $1,405
$1,385 to $1,405
Non-healthcare revenue
$160 to $170
$160 to $170
$700 to $730
$700 to $730
Consolidated operating income
$27 to $31
$70 to $74
$159 to $173
$317 to $330
Consolidated earnings per diluted
share
$0.22 to $0.27
$0.81 to $0.86
$1.74 to $1.89
$3.80 to $4.00
______________
(1)
Guidance provided August 6, 2024.
(2)
Effective fiscal year 2024, we have
updated our non-GAAP financial measures to exclude the impact of
all expenses related to our ongoing litigation with Apple. Masimo
had previously only excluded the expenses related to the U.S.
International Trade Commission litigation against Apple. Masimo
believes all Apple litigation expenses are unique in nature and not
indicative of the Company’s on-going operating performance and has
therefore excluded them from our non-GAAP financial measures.
Supplementary Non-GAAP Financial Information
For additional non-GAAP financial details, please visit the
Investor Relations section of the Company’s website at
investor.masimo.com to access Supplementary Financial
Information.
Non-GAAP Financial Measures
The non-GAAP financial measures contained herein are a
supplement to the corresponding financial measures prepared in
accordance with U.S. GAAP. The non-GAAP financial measures
presented exclude the items described below. Management believes
that adjustments for these items assist investors in making
comparisons of period-to-period operating results. Furthermore,
management also believes that these items are not indicative of the
Company’s on-going operating performance. These non-GAAP financial
measures have certain limitations in that they do not reflect all
of the costs associated with the operations of the Company’s
business as determined in accordance with GAAP.
Therefore, investors should consider non-GAAP financial measures
in addition to, and not as a substitute for, or as superior to,
measures of financial performance prepared in accordance with GAAP.
The non-GAAP financial measures presented by the Company may be
different from the non-GAAP financial measures used by other
companies.
The Company has presented the following non-GAAP measures to
assist investors in understanding the Company’s net operating
results on an on-going basis: (i) constant currency revenue growth
percentage, (ii) non-GAAP net income (prior definition and updated
definition), (iii) non-GAAP (net income) earnings per diluted share
(prior definition and updated definition) and (iv) non-GAAP
operating income/margin (prior definition and updated definition).
These non-GAAP financial measures may also assist investors in
making comparisons of the Company’s operating results with those of
other companies. Management believes constant currency revenue
growth, non-GAAP operating income/margin, non-GAAP net income and
non-GAAP earnings per diluted share are important measures in the
evaluation of the Company’s performance and uses these measures to
better understand and evaluate our business.
The non-GAAP financial measures reflect adjustments for the
following items:
Constant currency revenue
adjustments
Some of our sales agreements with foreign customers provide for
payment in currencies other than the U.S. Dollar. These foreign
currency revenues, when converted into U.S. Dollars, can vary
significantly from period-to-period depending on the average and
quarter-end exchange rates during a respective period. We believe
that comparing these foreign currency denominated revenues by
holding the exchange rates constant with the prior year period is
useful to management and investors in evaluating our revenue growth
rates on a period-to-period basis. We anticipate that fluctuations
in foreign exchange rates and the related constant currency
adjustments for calculation of our revenue growth rate will
continue to occur in future periods.
Acquired tangible asset
amortization
These transactions represent amortization expense in connection
with business or assets acquisitions associated with acquired
tangible assets and asset valuation step-ups.
Business transition and related
costs
These transactions represent gains, losses, and other related
costs associated with business transition plans. These items may
include but are not limited to severance, relocation, consulting,
leasehold exit costs, asset impairment, and other related costs to
rationalize our operational footprint and optimize business
results.
Acquired intangible asset
amortization
These transactions represent amortization expense in connection
with business or assets acquisitions associated with acquired
intangible assets including, but not limited to customer
relationships, intellectual property, trade names and
non-competition agreements.
Acquisitions, integrations,
divestitures, and related costs
These transactions represent gains, losses, and other related
costs associated with acquisitions, integrations, investments,
divestitures, assets impairments, and in-process research and
development.
Litigation related expenses and
settlements (prior definition)
These transactions represent gains, losses, and other related
costs associated with certain litigation matters, which can vary in
their characteristics, frequency and significance to our operating
results.
Litigation related expenses and
settlements (updated definition)
We have been engaged in various legal proceedings against Apple
since January 2020, including various proceedings in the federal
courts, various proceedings in the U.S. Patent and Trademark Office
(the “PTO proceedings”), and a proceeding in the U.S. International
Trade Commission (the “ITC proceeding”). Although we previously
excluded only expenses relating to the ITC proceeding from the
definition of “Litigation related expenses and settlements”,
beginning with the first quarter of 2024, we have revised the
definition of “Litigation related expenses and settlements” to
exclude not only expenses relating to the ITC proceeding, but also
all other Apple litigation expenses, including those relating to
the federal court proceedings and the PTO proceedings. We believe
all of the Apple litigation expenses are unique in nature and not
indicative of the Company’s on-going operating performance, and
this updated definition will provide more useful information to
investors by facilitating period-to-period comparisons of our
financial performance that otherwise may be obscured by the
significant fluctuations in Apple-related litigation expenses.
Other adjustments
In the event there are gains, losses and other adjustments which
impact period-to-period comparability and do not represent the
underlying ongoing results of the business, the Company may choose
to exclude these from non-GAAP earnings.
Realized and unrealized gains or
losses
These transactions represent gains, losses, and other related
costs associated with foreign currency denominated transactions and
investments. Changes in the underlying currency rates relative to
the U.S. Dollar may result in realized and unrealized foreign
currency gains and losses between the time these receivables and
payables arise and the time that they are settled in cash.
Unrealized and realized gains and losses on investments may impact
the Company’s reported results of operations for a period. These
items are highly variable, difficult to predict and outside the
control of those responsible for the underlying operations of the
business. Other items also included here are mark-to-market gains
and losses of derivative contracts that are not designated as
hedging instruments or the ineffective portions of cash flow
hedges.
Financing related
adjustments
The Company may enter into various financial arrangements
whereby costs are incurred and certain instrument features are
valued and expensed accordingly but are not necessarily indicative
of the on-going cash flow generation of the Company and therefore
excludes these costs from non-GAAP earnings. For GAAP earnings per
diluted share purposes, the Company cannot reflect the
anti-dilutive impact, if applicable, in its diluted shares
calculations. However, the Company believes that reflecting the
anti-dilutive impact of these instruments in non-GAAP earnings per
diluted share provides management and investors with useful
information in evaluating the financial performance of the Company
on a per share basis.
Tax impact of non-GAAP
adjustments
In order to reflect the tax effected impact of the non-GAAP
adjustments, the Company will adjust the non-GAAP earnings by the
approximate tax impact of these adjustments.
Excess tax benefits from stock-based
compensation expense
GAAP requires that excess tax benefits recognized on stock-based
compensation expense be reflected in our provision for income taxes
rather than paid-in capital. As these excess tax benefits may be
highly variable from period-to-period, the Company may choose to
exclude these tax benefits from non-GAAP earnings to facilitate
comparability between periods and with peers.
Second Quarter 2024 Actuals versus
Second Quarter 2023 Actuals:
RECONCILIATION OF HEALTHCARE GAAP TO NON-GAAP CONSTANT
CURRENCY REVENUE(1):
Three Months Ended
(in millions, except
percentages)
June 29, 2024
July 1, 2023
GAAP healthcare revenue
$
343.9
$
281.1
Constant currency revenue adjustments
1.8
N/A
Non-GAAP healthcare constant currency
revenue
$
345.7
$
281.1
GAAP healthcare revenue growth %
22.4
%
Non-GAAP healthcare constant currency
revenue growth %
23.0
%
__________________
(1)
May not foot due to rounding.
RECONCILIATION OF NON-HEALTHCARE GAAP TO NON-GAAP
CONSTANT CURRENCY REVENUE(1):
Three Months Ended
(in millions, except
percentages)
June 29, 2024
July 1, 2023
GAAP non-healthcare revenue
$
152.4
$
174.2
Constant currency revenue adjustments
3.0
N/A
Non-GAAP non-healthcare constant currency
revenue
$
155.4
$
174.2
GAAP non-healthcare revenue growth %
(12.5
)%
Non-GAAP non-healthcare constant currency
revenue growth %
(10.8
)%
__________________
(1)
May not foot due to rounding.
RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED OPERATING
INCOME(1):
Three Months Ended
(in millions)
June 29, 2024
July 1, 2023
GAAP operating income
$
28.3
$
29.3
Non-GAAP adjustments:
Acquired tangible asset amortization
0.8
1.0
Acquired intangible asset amortization
9.1
9.6
Acquisitions, integrations, divestitures,
and related costs
6.1
4.0
Business transition and related costs
11.4
—
Litigation related expenses, settlements
and awards
9.3
13.4
Other adjustments
—
0.9
Total non-GAAP adjustments
36.7
29.0
Non-GAAP operating income (prior
definition)
$
65.1
$
58.6
Litigation related expenses and
settlements
7.9
9.8
Non-GAAP operating income (updated
definition)
$
72.9
$
68.4
__________________
(1)
May not foot due to rounding.
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME AND NET
INCOME PER DILUTED SHARE(1):
Three Months Ended
June 29, 2024
July 1, 2023
(in millions, except per diluted share
amounts)
$
Per Diluted Share
$
Per Diluted Share
GAAP net income
$
16.0
$
0.29
$
15.7
$
0.29
Non-GAAP adjustments:
Acquired tangible asset amortization
0.8
0.01
1.0
0.02
Acquired intangible asset amortization
9.1
0.17
9.6
0.18
Acquisitions, integrations, divestitures,
and related costs
6.1
0.11
4.0
0.07
Business transition and related costs
11.4
0.21
—
—
Litigation related expenses, settlements
and awards
9.3
0.17
13.4
0.25
Other adjustments
—
—
0.9
0.02
Realized and unrealized gains or
losses
(1.4
)
(0.03
)
(6.5
)
(0.12
)
Financing related adjustments
0.5
0.01
0.5
0.01
Tax impact of non-GAAP adjustments
(9.2
)
(0.17
)
(4.8
)
(0.09
)
Excess tax benefits from stock-based
compensation expense
(2.0
)
(0.04
)
(0.5
)
(0.01
)
Total non-GAAP adjustments
24.6
0.45
17.7
0.33
Non-GAAP net income (prior definition)
$
40.6
$
0.75
$
33.7
$
0.62
Litigation related expenses and
settlements
7.9
0.15
9.8
0.18
Tax impact of non-GAAP adjustments
(1.9
)
(0.04
)
(2.3
)
(0.04
)
Non-GAAP net income (updated
definition)
$
46.6
$
0.86
$
41.2
$
0.76
Weighted average shares
outstanding-diluted
54.3
54.4
__________________
(1)
May not foot due to rounding.
Third Quarter 2024 and Updated Full-Year
2024 Financial Guidance:
RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED OPERATING
INCOME(1):
(in millions)
Q3 2024
Guidance(2)
Updated
Full-Year 2024
Guidance(2)
GAAP operating income
$27 to $31
$159 to $173
Non-GAAP adjustments:
Acquired tangible asset amortization
1
3
Acquired intangible asset amortization
9
37
Acquisitions, integrations, divestitures,
and related costs
4
20
Business transition and related costs
7
33
Litigation related expenses, settlements
and awards
14
29
Other adjustments
—
3
Total non-GAAP adjustments
35
125
Non-GAAP operating income (prior
definition)
$62 to $66
$285 to $298
Litigation related expenses and
settlements
8
32
Non-GAAP operating income (updated
definition)
$70 to $74
$317 to $330
__________________
(1)
May not foot due to rounding.
(2)
Guidance provided August 6, 2024.
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME AND NET
INCOME PER DILUTED SHARE(1):
Q3 2024
Guidance(2)
Updated
Full-Year 2024
Guidance(2)
(in millions, except per diluted share
amounts)
$
Per Diluted Share
$
Per Diluted Share
GAAP net income
$12 to $15
$0.22 to $0.27
$95 to $103
$1.74 to $1.89
Non-GAAP adjustments:
Acquired tangible asset amortization
1
0.02
3
0.06
Acquired intangible asset amortization
9
0.17
37
0.68
Acquisitions, integrations, divestitures,
and related costs
4
0.07
20
0.37
Business transition and related costs
7
0.12
33
0.60
Litigation related expenses, settlements
and awards
14
0.26
29
0.53
Other adjustments
—
—
3
0.06
Realized and unrealized gains or
losses
—
—
(3
)
(0.06
)
Financing related adjustments
—
0.01
2
0.03
Tax impact of non-GAAP adjustments
(9
)
(0.17
)
(29) to (31)
(0.53) to (0.57)
Excess tax benefits from stock-based
compensation expense
—
(0.01
)
(4
)
(0.08
)
Total non-GAAP adjustments
26
0.47
89 to 91
1.63 to 1.66
Non-GAAP net income (prior definition)
$38 to $41
$0.70 to $0.75
$183 to $193
$3.36 to $3.55
Litigation related expenses and
settlements
8
0.15
32
0.59
Tax impact of non-GAAP adjustments
(2
)
(0.03
)
(8
)
(0.14
)
Non-GAAP net income (updated
definition)
$44 to $47
$0.81 to $0.86
$207 to $218
$3.80 to $4.00
Weighted average shares
outstanding-diluted
54.6
54.5
__________________
(1)
May not foot due to rounding.
(2)
Guidance provided August 6, 2024.
Conference Call:
The conference call to review Masimo’s complete financial
results for the second quarter ended June 29, 2024 will begin at
1:30 p.m. PT today (4:30 p.m. ET) on August 6, 2024 and will be
hosted by Joe Kiani, Chairman and Chief Executive Officer, and
Micah Young, Executive Vice President and Chief Financial Officer.
A live webcast of the conference call will be available online from
the investor relations page of the Company’s corporate website at
www.masimo.com.
To register for the conference call and receive the dial-in
number, please use the link below. Upon registering, each
participant will be provided with call details and a registrant ID
number.
Conference Call Registration Link:
https://registrations.events/direct/Q4I407288
A replay of the webcast and conference call will be available
shortly after the conclusion of the call and will be archived on
the Company’s website.
About Masimo
Masimo (Nasdaq: MASI) is a global technology company that
develops and produces a wide array of industry-leading monitoring
technologies, including innovative measurements, sensors, patient
monitors, and automation and connectivity solutions. In addition,
Masimo Consumer Audio is home to eight iconic audio brands,
including Bowers & Wilkins®, Denon®, Marantz®, and Polk Audio®.
Our mission is to improve life, improve patient outcomes; and
reduce the cost of care. Masimo SET® Measure-through Motion and Low
Perfusion™ pulse oximetry, introduced in 1995, has been shown in
over 100 independent and objective studies to outperform other
pulse oximetry technologies. Masimo SET® has also been shown to
help clinicians reduce severe retinopathy of prematurity in
neonates, improve CCHD screening in newborns, and, when used for
continuous monitoring with Masimo Patient SafetyNet™ in
post-surgical wards, reduce rapid response team activations, ICU
transfers, and costs. Masimo SET® is estimated to be used on more
than 200 million patients in leading hospitals and other healthcare
settings around the world, and is the primary pulse oximetry at 9
of the top 10 hospitals as ranked in the 2022-23 U.S. News and
World Report Best Hospitals Honor Roll. In 2005, Masimo introduced
rainbow® Pulse CO-Oximetry technology, allowing noninvasive and
continuous monitoring of blood constituents that previously could
only be measured invasively and intermittently, including total
hemoglobin (SpHb®), oxygen content (SpOC™), carboxyhemoglobin
(SpCO®), methemoglobin (SpMet®), Pleth Variability Index (Pvi®),
RPVi™ (rainbow® Pvi), and Oxygen Reserve Index (Ori™). In 2013,
Masimo introduced the Root® Patient Monitoring and Connectivity
Platform, built from the ground up to be as flexible and expandable
as possible to facilitate the addition of other Masimo and
third-party monitoring technologies; key Masimo additions include
Next Generation SedLine® Brain Function Monitoring, O3® Regional
Oximetry, and ISA™ Capnography with NomoLine® sampling lines.
Masimo’s family of continuous and spot-check monitoring Pulse
CO-Oximeters® includes devices designed for use in a variety of
clinical and non-clinical scenarios, including tetherless, wearable
technology, such as Radius-7®, Radius-PPG® and Radius VSM™,
portable devices like Rad-67®, fingertip pulse oximeters like
MightySat® Rx, and devices available for use both in the hospital
and at home, such as Rad-97®. Masimo hospital and home automation
and connectivity solutions are centered around Root and the Masimo
Hospital Automation™ platform, and include Iris® Gateway, iSirona™,
Patient SafetyNet, Replica®, Halo ION, UniView®, UniView :60™, and
Masimo SafetyNet™. Masimo’s growing portfolio of health and
wellness solutions include Radius T™ and the Masimo W1™ watch,
Stork™, Opioid Halo™, Bridge™, and PerL™. Additional information
about Masimo and its products may be found at www.masimo.com.
Published clinical studies on Masimo products can be found at
www.masimo.com/evidence/featured-studies/feature/.
RPVi has not received FDA 510(k) clearance and is not available
for sale in the United States. The use of the trademark Patient
SafetyNet is under license from University HealthSystem
Consortium.
Forward-Looking Statements
All statements other than statements of historical facts
included in this press release that address activities, events or
developments that we expect, believe or anticipate will or may
occur in the future are forward-looking statements including, in
particular, the statements about our expectations regarding our
third-quarter 2024 and updated full-year 2024 financial guidance,
including GAAP and non-GAAP consolidated revenue, healthcare
revenue, non-healthcare revenue, consolidated operating income and
consolidated earnings per diluted share; the proposed separation of
Masimo’s consumer business, including the potential timing and
structure thereof and the expectation that the proposed separation
will be value-accretive; our momentum in the healthcare market,
including the expectation that such momentum is growing or will
continue to grow and the growth targets for our healthcare business
of double-digit revenue growth and 30% operating margins and
expected timing for achieving such targets. These forward-looking
statements are based on management’s current expectations and
beliefs and are subject to uncertainties and factors, all of which
are difficult to predict and many of which are beyond our control
and could cause actual results to differ materially and adversely
from those described in the forward-looking statements. These risks
include, but are not limited to, those related to: our dependence
on Masimo SET® and Masimo rainbow SET™ products and technologies
for substantially all of our revenue; any failure in protecting our
intellectual property exposure to competitors’ assertions of
intellectual property claims; the highly competitive nature of the
markets in which we sell our products and technologies; any failure
to continue developing innovative products and technologies; our
ability to successfully integrate Sound United’s brands into our
business; our ability to address and expand into new markets; the
lack of acceptance of any of our current or future products and
technologies; obtaining regulatory approval of our current and
future products and technologies; the risk that the implementation
of our international realignment will not continue to produce
anticipated operational and financial benefits, including a
continued lower effective tax rate; the loss of our customers; the
failure to retain and recruit senior management; product liability
claims exposure; a failure to obtain expected returns from the
amount of intangible assets we have recorded; the maintenance of
our brand; the amount and type of equity awards that we may grant
to employees and service providers in the future; our ongoing
litigation and related matters; the ability to effect any potential
separation of our consumer business described above and to meet any
of the conditions related thereto; the approval of any such
potential separation by Masimo’s board of directors; the ability of
any separated businesses to be successful; potential uncertainty
during the pendency of any such potential separation that could
affect Masimo’s financial performance; the possibility that any
potential separation will not be completed within the anticipated
time period or at all; the possibility that any such potential
separation will not achieve its intended benefits; the possibility
of disruption, including changes to existing business
relationships, disputes, litigation or unanticipated costs in
connection with any such potential separation; the impact on our
employees; the uncertainty of the expected financial performance of
Masimo prior to and following completion of any such potential
separation; negative effects of the announcement or pendency of any
such potential separation on the market price of Masimo’s
securities and/or on the financial performance of Masimo; evolving
legal, regulatory and tax regimes; changes in general economic
and/or industry specific conditions; actions by third parties,
including government agencies; and other factors discussed in the
“Risk Factors” section of our most recent periodic reports filed
with the Securities and Exchange Commission (“SEC”), including our
most recent Form 10-K and Form 10-Q, all of which you may obtain
for free on the SEC’s website at www.sec.gov. Although we believe that the
expectations reflected in our forward-looking statements are
reasonable, we do not know whether our expectations will prove
correct. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof,
even if subsequently made available by us on our website or
otherwise. We do not undertake any obligation to update, amend or
clarify these forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be
required under applicable securities laws.
Masimo, SET, Signal Extraction Technology, Improving Patient
Outcome and Reducing Cost of Care... by Taking Noninvasive
Monitoring to New Sites and Applications, rainbow, SpHb, SpOC,
SpCO, SpMet, PVI and ORI are trademarks or registered trademarks of
Masimo Corporation.
MASIMO CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited, in
millions)
June 29, 2024
December 30,
2023
ASSETS
Current assets
Cash and cash equivalents
$
129.6
$
163.0
Accounts receivable, net of allowance for
credit losses
337.7
355.5
Inventories
513.0
545.0
Other current assets
161.9
168.4
Total current assets
1,142.2
1,231.9
Lease receivable, non-current
66.5
71.4
Deferred costs and other contract
assets
58.8
57.3
Property and equipment, net
413.9
424.4
Customer relationships, net
162.2
177.7
Acquired technologies, net
112.0
129.4
Other intangible assets, net
116.3
112.8
Trademarks
215.6
232.4
Goodwill
389.0
407.7
Deferred tax assets
107.0
107.2
Other non-current assets
110.4
89.3
Total assets
$
2,893.9
$
3,041.5
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Accounts payable
$
216.0
$
251.5
Accrued compensation
72.2
62.6
Deferred revenue and other contract
liabilities, current
79.8
87.3
Other current liabilities
178.2
162.4
Total current liabilities
546.2
563.8
Long-term debt
746.5
871.7
Deferred tax liabilities
102.1
111.7
Other non-current liabilities
130.3
129.5
Total liabilities
1,525.1
1,676.7
Commitments and contingencies
Stockholders’ equity
Common stock
0.1
0.1
Treasury stock
(1,169.2
)
(1,169.2
)
Additional paid-in capital
810.6
783.4
Accumulated other comprehensive loss
(103.4
)
(45.3
)
Retained earnings
1,830.7
1,795.8
Total stockholders’ equity
1,368.8
1,364.8
Total liabilities and stockholders’
equity
$
2,893.9
$
3,041.5
MASIMO CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited, in millions,
except per share amounts)
Three Months Ended
Six Months Ended
June 29, 2024
July 1, 2023
June 29, 2024
July 1, 2023
Revenue
$
496.3
$
455.3
$
989.1
$
1,020.3
Cost of goods sold
241.5
234.1
492.6
514.3
Gross profit
254.8
221.2
496.5
506.0
Operating expenses:
Selling, general and administrative
177.5
151.7
337.4
348.0
Research and development
49.0
40.2
96.8
90.7
Total operating expenses
226.5
191.9
434.2
438.7
Operating income
28.3
29.3
62.3
67.3
Non-operating loss
(8.4
)
(4.5
)
(17.5
)
(16.3
)
Income before provision for income
taxes
19.9
24.8
44.8
51.0
Provision for income taxes
3.9
9.1
9.9
14.0
Net income
$
16.0
$
15.7
$
34.9
$
37.0
Net income per share:
Basic
$
0.30
$
0.30
$
0.66
$
0.70
Diluted
$
0.29
$
0.29
$
0.64
$
0.68
Weighted-average shares used in per share
calculations:
Basic
53.1
52.8
53.1
52.7
Diluted
54.3
54.4
54.3
54.3
The following table presents details of the stock-based
compensation (benefit) expense that is included in each functional
line item in the condensed consolidated statements of operations
(in millions):
Three Months Ended
Six Months Ended
June 29, 2024
July 1, 2023
June 29, 2024
July 1, 2023
Cost of goods sold
$
0.3
$
0.2
$
0.5
$
0.5
Selling, general and administrative
9.2
(8.8
)
14.8
(4.6
)
Research and development
4.0
—
7.8
2.8
Total
$
13.5
$
(8.6
)
$
23.1
$
(1.3
)
MASIMO CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited, in
millions)
Six Months Ended
June 29, 2024
July 1, 2023
Cash flows from operating
activities:
Net income
$
34.9
$
37.0
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation and amortization
48.2
51.3
Stock-based compensation expense
23.1
(1.3
)
Provision for credit losses
0.4
0.5
Amortization of debt issuance cost
0.9
0.9
Changes in operating assets and
liabilities:
Decrease (increase) in accounts
receivable
13.1
95.9
Decrease (increase) in inventories
7.6
(45.5
)
Decrease (increase) in other current
assets
3.4
(8.8
)
Decrease (increase) in lease receivable,
net
4.9
(4.4
)
Decrease (increase) in deferred costs and
other contract assets
(1.6
)
(0.4
)
Decrease (increase) in other non-current
assets
(1.4
)
(24.4
)
Increase (decrease) in accounts
payable
(22.5
)
(11.8
)
Increase (decrease) in accrued
compensation
10.3
(39.0
)
Increase (decrease) in accrued
liabilities
17.1
(19.7
)
Increase (decrease) in income tax
payable
(1.3
)
5.0
Increase (decrease) in deferred revenue
and other contract-related liabilities
(7.1
)
(6.8
)
Increase (decrease) in other non-current
liabilities
(9.7
)
(4.5
)
Net cash provided by (used in)
operating activities
120.3
24.0
Cash flows from investing
activities:
Purchases of property and equipment
(15.8
)
(20.4
)
Proceeds from sale of property and
equipment
10.8
—
Increase in intangible assets
(16.1
)
(19.9
)
Business combinations, net of cash
acquired
—
7.5
Other strategic investing activities
(0.1
)
(0.7
)
Net cash (used in) provided by
investing activities
(21.2
)
(33.5
)
Cash flows from financing
activities:
Borrowings under line of credit
64.0
79.0
Repayments on line of credit
(185.6
)
(112.4
)
Proceeds from issuance of common stock
9.9
6.0
Payroll tax withholdings on behalf of
employees for vested equity awards
(5.8
)
(12.7
)
Net cash (used in) provided by
financing activities
(117.5
)
(40.1
)
Effect of foreign currency exchange rates
on cash
(14.2
)
(1.4
)
Net decrease in cash, cash equivalents and
restricted cash
(32.6
)
(51.0
)
Cash, cash equivalents and restricted cash
at beginning of period
168.2
209.6
Cash, cash equivalents and restricted cash
at end of period
$
135.6
$
158.6
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240806483016/en/
Investor Contact: Eli Kammerman (949) 297-7077
ekammerman@masimo.com
Media Contact: Evan Lamb (949) 396-3376
elamb@masimo.com
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