-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, L4R1wG3WucdI0T7LUpBq2AUpgjGh5vCXoJ5bGNKvKQUyy/bHcFtm8AFCcb7rYzut 1hfbAOppv0i5GgIFCW/GUA== 0000950134-03-016004.txt : 20031203 0000950134-03-016004.hdr.sgml : 20031203 20031203081953 ACCESSION NUMBER: 0000950134-03-016004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031203 ITEM INFORMATION: ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031203 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SYNOVIS LIFE TECHNOLOGIES INC CENTRAL INDEX KEY: 0000780127 STANDARD INDUSTRIAL CLASSIFICATION: ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842] IRS NUMBER: 411526554 STATE OF INCORPORATION: MN FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-13907 FILM NUMBER: 031033849 BUSINESS ADDRESS: STREET 1: 2575 UNIVERSITY AVENUE CITY: ST PAUL STATE: MN ZIP: 55114-1024 BUSINESS PHONE: 6516033700 FORMER COMPANY: FORMER CONFORMED NAME: BIO VASCULAR INC DATE OF NAME CHANGE: 19920703 8-K 1 c81389e8vk.txt FORM 8-K - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 - -------------------------------------------------------------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): December 3, 2003 SYNOVIS LIFE TECHNOLOGIES, INC. (Exact name of Registrant as specified in its charter) State of Incorporation: Minnesota I.R.S. Employer Identification No.: 41-1526554 Address of principal executive offices: 2575 University Ave. W. St. Paul, Minnesota 55114 Telephone Number: (651) 603-3700 --------------------------------------------------- ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE On December 3, 2003, Synovis Life Technologies, Inc. (Synovis) issued a press release announcing its earnings for the fourth quarter and fiscal year ended October 31, 2003. Consolidated net revenue increased 27 percent to $14.9 million in the fourth quarter of fiscal 2003 from $11.8 million in the year-earlier period. Operating income rose 54 percent over the year-ago quarter to $2.0 million. The company posted a 67 percent gain in net income to $1.5 million, or 13 cents per diluted share, versus $878,000, or nine cents per diluted share, in the fourth quarter of fiscal 2002. For fiscal 2003, consolidated net revenue rose 45 percent to $58.0 million from $40.0 million in the prior fiscal year. This increase is an acceleration over the 40 percent revenue growth rate between fiscal 2002 and fiscal 2001. In fiscal 2003, operating income grew 61 percent to $7.3 million compared to $4.6 million in the prior fiscal year. Consolidated net income reached $5.0 million, or 47 cents per diluted share, in fiscal 2003, up from $3.0 million, or 31 cents per diluted share, in fiscal 2002. In September 2003, the company received $36.5 million in net proceeds from a private placement of 1.5 million shares for $39 million. As a result of the placement, the company's outstanding shares increased 16 percent. The effect of the additional shares was a reduction in earnings per share in the quarter by one cent per diluted share on a rounded basis. The effect on the full year was negligible. Cash and cash equivalents at fiscal year-end totaled $44.1 million. Cash provided by operating activities was $2.8 million in fiscal 2003. The company invested $4.3 million in capital expenditures to support current and future growth. Financing activities, excluding the private placement, provided cash of $1.4 million primarily from options exercises of $1.7 million, net of lease and other debt payments. Surgical Business Surgical business revenue increased 27 percent in the fourth quarter to $6.6 million from $5.2 million in the year-ago period. Due to product mix and higher scrap rates, the quarterly gross margin declined 1.6 percentage points to 64.1 percent in the fourth quarter. However for the fiscal year, product mix and efficiencies drove a 1.4 percentage point gross margin gain. Fourth-quarter operating income grew to $1.0 million, a 20 percent rise over $874,000 in the year-ago period. For fiscal 2003, surgical business revenue grew 31 percent to $25.6 million while operating income rose 96 percent to $4.7 million, leveraging gross margin improvements and expense reduction as a percentage of revenue. The operating margin for the surgical business for fiscal 2003 was 18.3 percent, up from 12.2 percent in fiscal 2002. Peri-Strips(R) sales generated net revenue of $3.1 million in the fourth quarter, a 42 percent increase over the year-ago quarter. In fiscal 2003, Peri-Strips revenue grew to $11.7 million, a 62 percent rise over the previous year. Peri-Strips' use in gastric bypass surgery, a treatment for morbid obesity that affects more than 15 million Americans, is driving the current sales momentum. International Peri-Strips sales rose 105 percent in the fourth quarter and 41 percent for the fiscal year, while domestic Peri-Strips revenue grew 39 percent in the quarter and 63 percent in fiscal 2003. Sales in the microsurgery product line rose 23 percent to $345,000 in the fourth quarter and showed a 26 percent year-over-year increase. The primary product in the microsurgery product line is the Coupler, a proprietary device used by microsurgeons to connect extremely small blood vessels, primarily veins, without sutures, quickly, easily and with consistently excellent results. Sales of Veritas(R), a patented remodelable biomaterial grew 172 percent for both the fourth quarter and fiscal 2003. This product has FDA marketing clearance and CE Mark approval for use in surgical procedures to treat urologic and gynecologic conditions common among post-menopausal women and for soft tissue repair. Interventional Business Interventional business revenue grew to $8.3 million in the fourth quarter, up 27 percent over the same period last year. The fourth-quarter gross margin was essentially the same as the prior-year quarter. Quarterly operating income reached $965,000, a 123 percent gain over the prior-year quarter. Fiscal 2003 revenue increased 59 percent to $32.4 million, while operating income grew to $2.7 million, up 23 percent. The fiscal 2003 gross margin, at 27.5 percent, was 5.2 percentage points lower than last year due to product mix, the cost of a growing workforce, the opening of a new facility in Puerto Rico and $415,000 in milestone payments with no cost to Synovis in the previous year. The interventional business prototypes and manufactures coils, helices, stylets, guidewires and complex micro-wire, polymer and machined components for the interventional medical device industry. SYNOVIS LIFE TECHNOLOGIES, INC. Consolidated Results of Operations (unaudited) (in thousands, except per share data)
Three Months Ended Fiscal Year Ended October 31, October 31, 2003 2002 2003 2002 ---- ---- ---- ---- Net revenue $ 14,943 $ 11,770 $ 57,989 $ 39,962 Cost of revenue 8,250 6,392 32,559 20,958 Gross margin 6,693 5,378 25,430 19,004 Gross margin percentage 45% 46% 44% 48% Selling, general and administrative 3,691 3,264 14,276 12,182 Research and development 989 807 3,806 2,272 Operating income 2,013 1,307 7,348 4,550 Interest, net 44 1 41 35 Income before provision for income taxes 2,057 1,308 7,389 4,585 Provision for income taxes 587 430 2,416 1,544 Net income $ 1,470 $ 878 $ 4,973 $ 3,041 Basic earnings per share $ 0.14 $ 0.09 $ 0.50 $ 0.32 Diluted earnings per share $ 0.13 $ 0.09 $ 0.47 $ 0.31 Weighted basic shares outstanding 10,547 9,561 9,920 9,435 Weighted diluted shares outstanding 11,236 9,908 10,574 9,849
Business Segment Information (in thousands)
Three Months Ended Fiscal Year Ended October 31, October 31, 2003 2002 2003 2002 ---- ---- ---- ---- Net revenue Surgical business $ 6,619 $ 5,219 $ 25,623 $ 19,546 Interventional business 8,324 6,551 32,366 20,416 ------------ ------------ ------------ ------------ Total $ 14,943 $ 11,770 $ 57,989 $ 39,962 Gross margin Surgical business $ 4,240 $ 3,428 $ 16,529 $ 12,332 Interventional business 2,453 1,950 8,901 6,672 ------------ ------------ ------------ ------------ Total $ 6,693 $ 5,378 $ 25,430 $ 19,004 Gross margin percentage Surgical business 64% 66% 65% 63% Interventional business 29% 30% 28% 33% Total 45% 46% 44% 48% Operating income Surgical business $ 1,048 $ 874 $ 4,681 $ 2,387 Interventional business 965 433 2,667 2,163 ------------ ------------ ------------ ------------ Total $ 2,013 $ 1,307 $ 7,348 $ 4,550
Consolidated Condensed Balance Sheets (unaudited) As of October 31, 2003 and 2002 (in thousands, except share and per share data)
October 31, October 31, 2003 2002 ------------------ ------------------ ASSETS Current assets: Cash and cash equivalents $ 44,102 $ 7,866 Accounts receivable, net 6,541 4,815 Inventories 10,849 7,368 Other 1,891 971 ------------ ------------ Total current assets 63,383 21,020 Property, plant and equipment, net 10,559 8,408 Goodwill and other intangible assets, net 6,892 7,127 Other 11 58 ------------ ------------ Total assets $ 80,845 $ 36,613 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $ 5,903 $ 5,471 Current maturities of long-term obligations 281 362 ------------ ------------ Total current liabilities 6,184 5,833 Long-term obligations and deferred income taxes 599 482 ------------ ------------ Total liabilities 6,783 6,315 ------------ ------------ Shareholders' equity: Preferred stock: authorized 5,000,000 shares of $.01 par value; none issued or outstanding at both dates - - Common stock: authorized 20,000,000 shares of $.01 par value; issued and outstanding, 11,435,638 and 9,586,222 at October 31, 2003 and 2002, respectively 114 96 Additional paid-in capital 69,956 31,190 Unearned compensation - (7) Retained earnings (accumulated deficit) 3,992 (981) ------------ ------------ Total shareholders' equity 74,062 30,298 ------------ ------------ Total liabilities and shareholders' equity $ 80,845 $ 36,613 ============ ============
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits. (99.1) Synovis Life Technologies, Inc. News Release dated December 3, 2003. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On December 3, 2003, Synovis Life Technologies, Inc. (Synovis) issued a press release announcing its earnings for the fourth quarter and fiscal year ended October 31, 2003. A copy of the press release is attached hereto as Exhibit 99.1, and is furnished in accordance with Item 12 of Form 8-K. In accordance with General Instruction B.6. of Form 8-K, all of the information in this Item and the accompanying exhibit shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act. Synovis will also publish the press release, including the supplemental information contained therein, on its website at www.synovislife.com. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SYNOVIS LIFE TECHNOLOGIES, INC. By: /s/ Connie L. Magnuson ------------------------------- December 3, 2003 Connie L. Magnuson Vice-President of Finance and Chief Financial Officer EX-99.1 3 c81389exv99w1.txt NEWS RELEASE EXHIBIT 99.1 FROM: FOR: Padilla Speer Beardsley Inc. Synovis Life Technologies, Inc. 1101 West River Parkway 2575 University Ave. Minneapolis, Minnesota 55415 St. Paul, Minnesota 55114 CONTACT: CONTACT: Nancy A. Johnson Karen Gilles Larson, President and CEO (612) 455-1700 Connie Magnuson, CFO (651) 603-3700 FOR IMMEDIATE RELEASE SYNOVIS LIFE TECHNOLOGIES REVENUE GROWS 27 PERCENT AND NET INCOME GAINS 67 PERCENT IN FISCAL FOURTH QUARTER FISCAL 2003 EPS OF 47 CENTS ON REVENUE OF $58 MILLION ST. PAUL, Minn., Dec. 3, 2003 -- Synovis Life Technologies, Inc. (NASDAQ: SYNO), today reported strong growth in revenue, operating income, net income and earnings per share for the fourth quarter and fiscal year ended October 31, 2003. Consolidated net revenue increased 27 percent to $14.9 million in the fourth quarter of fiscal 2003 from $11.8 million in the year-earlier period. Operating income rose 54 percent over the year-ago quarter to $2.0 million. The company posted a 67 percent gain in net income to $1.5 million, or 13 cents per diluted share, versus $878,000, or nine cents per diluted share, in the fourth quarter of fiscal 2002. For fiscal 2003, consolidated net revenue rose 45 percent to $58.0 million from $40.0 million in the prior fiscal year. This increase is an acceleration over the 40 percent revenue growth rate between fiscal 2002 and fiscal 2001. In fiscal 2003, operating income grew 61 percent to $7.3 million compared to $4.6 million in the prior fiscal year. Consolidated net income reached $5.0 million, or 47 cents per diluted share, in fiscal 2003, up from $3.0 million, or 31 cents per diluted share, in fiscal 2002. In September, the company significantly strengthened its balance sheet by adding $36.5 million in net proceeds from a private investment of public equity (PIPE) financing involving Synovis Life Technologies, Inc. December 3, 2003 Page 2 the placement of 1.5 million shares for $39 million. As a result of the placement, the company's outstanding shares increased 16 percent. The additional shares reduced fourth-quarter EPS by one cent per diluted share on a rounded basis, and the effect on the full-year EPS was negligible. Cash and cash equivalents at fiscal year-end totaled $44.1 million. Cash provided by operating activities was $2.8 million in fiscal 2003. The company invested $4.3 million in capital expenditures to support current and future growth. Financing activities, excluding the PIPE, provided cash of $1.4 million primarily from options exercises of $1.7 million, net of lease and other debt payments. "This has been a terrific year for Synovis, with strong organic revenue growth, bottom line leverage and EPS growth that exceeded all expectations - as well as the incredibly successful PIPE transaction that added cash of $36.5 million," said Karen Gilles Larson, Synovis Life Technologies president and chief executive officer. "Our performance was recognized by inclusion in Fortune, Forbes and Investor's Business Daily stock lists. Surgical business revenue rose 31 percent; the fifth consecutive year of increasing growth rates. Our interventional business demonstrated strong revenue growth with a 59 percent growth rate in fiscal 2003, following a 60 percent growth rate in fiscal 2002. In fiscal 2003, we increased our R&D investment by 68 percent to $3.8 million, and we plan to raise our R&D investment by as much as 44 percent in the coming year. We are constantly preparing the way for continuing success." SURGICAL BUSINESS Surgical business revenue increased 27 percent in the fourth quarter to $6.6 million from $5.2 million in the year-ago period. Due to product mix and higher scrap rates, the quarterly gross margin declined 1.6 percentage points to 64.1 percent in the fourth quarter. However for the fiscal year, product mix and efficiencies drove a 1.4 percentage point gross margin gain. Fourth-quarter operating income grew to $1.0 million, a 20 percent rise over $874,000 in the year-ago period. The surgical business develops, manufactures and markets implantable biomaterial products, tools to facilitate cardiovascular surgeries and products for microsurgery. For fiscal 2003, surgical business revenue grew 31 percent to $25.6 million, while operating income rose 96 percent to $4.7 million, leveraging gross margin improvements and Synovis Life Technologies, Inc. December 3, 2003 Page 3 expense reduction as a percentage of revenue. The operating margin for the surgical business for fiscal 2003 was 18.3 percent, up from 12.2 percent in fiscal 2002. "Peri-Strips(R), our patent-protected biomaterial device, has been the leading growth driver in the surgical line," said Larson. "With the upcoming opportunity from lung volume reduction surgery and a third application on the horizon, we expect this product to continue to deliver substantial growth." Synovis plans to seek FDA marketing clearance for a third Peri-Strips application in fiscal 2004. Peri-Strips sales generated net revenue of $3.1 million in the fourth quarter, a 42 percent increase over the year-ago quarter. In fiscal 2003, Peri-Strips revenue grew to $11.7 million, a 62 percent rise over the previous year. Peri-Strips' use in gastric bypass surgery, a treatment for morbid obesity that affects more than 15 million Americans, is driving the current sales momentum. Increasing numbers of surgeons are appreciating Peri-Strips' value in reinforcing the staple line to reduce the risk of life-threatening complications, and increasing numbers of patients are seeking gastric bypass surgery. Projections call for at least 80,000 gastric bypass procedures in 2003, followed by 110,000 to 150,000 in 2004. Further, more gastric bypass surgeries are being performed laparoscopically, a technique in which surgeons generally use more Peri-Strips per surgery than an open surgical procedure. International Peri-Strips sales rose 105 percent in the fourth quarter and 41 percent for the fiscal year, while domestic Peri-Strips revenue grew 39 percent in the quarter and 63 percent in fiscal 2003. In Europe, there is increasing interest in gastric bypass procedures as a treatment for morbid obesity, which led to the strong international sales increase. In August 2003, the Centers for Medicare and Medicaid Services (CMS) announced its intent to provide reimbursement for certain patients undergoing lung volume reduction surgery (LVRS), a treatment for late-stage emphysema that involves the use of Peri-Strips. While this development is expected to spur demand for Peri-Strips, the rate at which the demand will develop as well as the ultimate annual demand are unknown. Initially, CMS indicated that it would take six to nine months to implement the coverage decision, that is, a February to May 2004 timeframe. Current indications are that implementation will likely occur in January 2004. In its fiscal 2004 guidance, Synovis included $1.5 million in revenue from LVRS. Synovis will, as always, adjust its guidance when and if it seems appropriate to do so. Synovis Life Technologies, Inc. December 3, 2003 Page 4 Sales in the microsurgery product line rose 23 percent to $345,000 in the fourth quarter and showed a 26 percent year-over-year increase. The primary product in the microsurgery product line is the Coupler, a proprietary device used by microsurgeons to connect extremely small blood vessels, primarily veins, without sutures, quickly, easily and with consistently excellent results. Synovis sees a significant market opportunity for this product with microsurgeons, who perform a wide range of procedures in various specialties. In addition, R&D is progressing on two new versions of the Coupler - one version to incorporate the ability to detect blood flow and the other for the coronary market. Sales of Veritas(R), a patented remodelable biomaterial, are gaining ground, growing 172 percent for both the fourth quarter and fiscal 2003. This product has FDA marketing clearance and CE Mark approval for use in surgical procedures to treat urologic and gynecologic conditions common among post-menopausal women and for soft tissue repair. INTERVENTIONAL BUSINESS Interventional business revenue grew to $8.3 million in the fourth quarter, up 27 percent over the same period last year. The fourth-quarter gross margin was essentially the same as the prior-year quarter. Quarterly operating income reached $965,000, a 123 percent gain over the prior-year quarter. Fiscal 2003 revenue increased 59 percent to $32.4 million, while operating income grew to $2.7 million, up 23 percent. The fiscal 2003 gross margin, at 27.5 percent, was 5.2 percentage points lower than last year due to: product mix, the cost of a growing workforce, opening a new facility in Puerto Rico and $415,000 in milestone payments with no cost to Synovis in the previous year. The interventional business prototypes and manufactures coils, helices, stylets, guidewires and complex micro-wire, polymer and machined components for the interventional medical device industry. Most interventional products are used by manufacturers in devices for cardiac rhythm management, neurostimulation and vascular procedures, all fast-growing markets. "Our interventional business revenue jumped 59 percent over fiscal 2002," said Larson. "We have customarily experienced and come to expect inherent quarterly variations in revenue within this business, and this year was no exception. We continue to be excited about Synovis Life Technologies, Inc. December 3, 2003 Page 5 the multiple growth opportunities for the interventional business. In the fourth quarter and for the fiscal year, all interventional product categories showed significant increases. The products we provide to interventional device companies are used in a multitude of devices in fast-growing medical markets. Three customers each accounted for more than 10 percent of fiscal 2003 interventional business revenue, and all significantly increased their business with us. Further, finished goods inventory of $2.1 million at October 31, 2003, reflected our customers' firm purchase orders." In addition, the interventional business is developing proprietary products to be sold to its customers, creating new opportunities. The company is seeking to have its first such product, a steerable stylet, cleared to market in the first half of fiscal 2004. OUTLOOK FOR FISCAL 2004 In mid-October, Synovis Life Technologies announced revenue and earnings guidance for fiscal 2004. The company anticipates consolidated revenue of $75 million to $79 million, a 29 to 36 percent increase over fiscal 2003 consolidated revenue. The company is projecting earnings per diluted share of 56 cents to 60 cents for fiscal 2004, a 19 to 28 percent gain over the just-completed year. This projection includes the impact of the 16 percent increase in outstanding shares as a result of the private placement. Larson concluded, "We just finished a great year, and we are fully engaged in the process of continuing our growth and producing new opportunities in fiscal 2004 and beyond. We are well positioned. Both our interventional and surgical businesses have unique in-demand products in strong and growing markets. We are advancing and adapting our technologies and capabilities for opportunities ahead, seeking acquisitions with a sound strategic fit, and investing in R&D and infrastructure to set the stage for future growth." CONFERENCE CALL AND WEBCAST Synovis Life Technologies, Inc., will host a live Webcast of its fiscal fourth-quarter conference call today, December 3, at 10:00 a.m. CT to discuss the company's fiscal fourth-quarter and full-year results, as well as current market opportunities and the outlook for fiscal 2004. To access the Webcast, go to the investor information section of the company's Web site, www.synovislife.com, and click on the Webcast icon. The Webcast replay will be Synovis Life Technologies, Inc. December 3, 2003 Page 6 available from noon CT today until 5:00 p.m. CT, Friday, January 2, 2004. If you do not have access to the Internet and want to listen to an audio replay of the fourth-quarter conference call, dial (800) 405-2236 and enter access number 560253. The audio replay will be available beginning at noon CT today through 5:00 p.m. CT on Friday, December 5. ABOUT SYNOVIS LIFE TECHNOLOGIES Synovis Life Technologies, Inc., based in St. Paul, Minn., is a diversified medical device company engaged in developing, designing, manufacturing and bringing to market medical devices for the surgical and interventional treatment of disease. For additional information on Synovis Life Technologies and its businesses, visit the company's Web site at www.synovislife.com. Forward-looking statements contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements can be identified by words such as "should", "may", "will", "expect", "believe", "anticipate", "estimate", "continue", or other similar expressions. Certain important factors that could cause results to differ materially from those anticipated by the forward-looking statements made herein include the timing of product introductions, the number of certain surgical procedures performed and the level of orders from contract manufacturing customers. A full discussion of factors can be found in the company's Annual Report on Form 10-K for the year ended October 31, 2002. Synovis Life Technologies, Inc. December 3, 2003 Page 7 SYNOVIS LIFE TECHNOLOGIES, INC. Consolidated Results of Operations (unaudited) (in thousands, except per share data)
Three Months Ended Fiscal Year Ended October 31, October 31, 2003 2002 2003 2002 ---- ---- ---- ---- Net revenue $14,943 $11,770 $57,989 $39,962 Cost of revenue 8,250 6,392 32,559 20,958 Gross margin 6,693 5,378 25,430 19,004 Gross margin percentage 45% 46% 44% 48% Selling, general and administrative 3,691 3,264 14,276 12,182 Research and development 989 807 3,806 2,272 Operating income 2,013 1,307 7,348 4,550 Interest, net 44 1 41 35 Income before provision for income taxes 2,057 1,308 7,389 4,585 Provision for income taxes 587 430 2,416 1,544 Net income $ 1,470 $ 878 $ 4,973 $ 3,041 Basic earnings per share $ 0.14 $ 0.09 $ 0.50 $ 0.32 Diluted earnings per share $ 0.13 $ 0.09 $ 0.47 $ 0.31 Weighted basic shares outstanding 10,547 9,561 9,920 9,435 Weighted diluted shares outstanding 11,236 9,908 10,574 9,849
Synovis Life Technologies, Inc. December 3, 2003 Page 8 Business Segment Information (in thousands)
Three Months Ended Fiscal Year Ended October 31, October 31, 2003 2002 2003 2002 ---- ---- ---- ---- Net revenue Surgical business $ 6,619 $ 5,219 $25,623 $19,546 Interventional business 8,324 6,551 32,366 20,416 ------- ------- ------- ------- Total $14,943 $11,770 $57,989 $39,962 Gross margin Surgical business $ 4,240 $ 3,428 $16,529 $12,332 Interventional business 2,453 1,950 8,901 6,672 ------- ------- ------- ------- Total $ 6,693 $ 5,378 $25,430 $19,004 Gross margin percentage Surgical business 64% 66% 65% 63% Interventional business 29% 30% 28% 33% Total 45% 46% 44% 48% Operating income Surgical business $ 1,048 $ 874 $ 4,681 $ 2,387 Interventional business 965 433 2,667 2,163 ------- ------- ------- ------- Total $ 2,013 $ 1,307 $ 7,348 $ 4,550
Synovis Life Technologies, Inc. December 3, 2003 Page 9 Consolidated Condensed Balance Sheets (unaudited) As of October 31, 2003 and 2002 (in thousands, except share and per share data)
October 31, October 31, 2003 2002 ------------- ------------- ASSETS Current assets: Cash and cash equivalents $ 44,102 $ 7,866 Accounts receivable, net 6,541 4,815 Inventories 10,849 7,368 Other 1,891 971 ------------- ------------- Total current assets 63,383 21,020 Property, plant and equipment, net 10,559 8,408 Goodwill and other intangible assets, net 6,892 7,127 Other 11 58 ------------- ------------- Total assets $ 80,845 $ 36,613 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $ 5,903 $ 5,471 Current maturities of long-term obligations 281 362 ------------- ------------- Total current liabilities 6,184 5,833 Long-term obligations and deferred income taxes 599 482 ------------- ------------- Total liabilities 6,783 6,315 ------------- ------------- Shareholders' equity: Preferred stock: authorized 5,000,000 shares of $.01 par value; none issued or outstanding at both dates -- -- Common stock: authorized 20,000,000 shares of $.01 par value; issued and outstanding, 11,435,638 and 9,586,222 at October 31, 2003 and 2002, respectively 114 96 Additional paid-in capital 69,956 31,190 Unearned compensation - (7) Retained earnings (accumulated deficit) 3,992 (981) ------------- ------------- Total shareholders' equity 74,062 30,298 ------------- ------------- Total liabilities and shareholders' equity $ 80,845 $ 36,613 ============= =============
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