8-K

UNITED STATES

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) August 7, 2024

ICU MEDICAL, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-34634	33-0022692
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

951 Calle Amanecer	,	San Clemente	,	California	92673
(Address of principal executive offices)					(Zip Code)

(949) 366-2183

Registrant's telephone number, including area code

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
	☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
	☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
	☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
	☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common stock, par value $0.10 per share	ICUI	The Nasdaq Stock Market LLC
		(Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
	Emerging growth company	☐
	If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

    On August 7, 2024, ICU Medical, Inc. issued a press release announcing its financial results for the second quarter of 2024. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated in Item 2.02 by reference.

Item 9.01. Financial Statements and Exhibits.

(d)	Exhibits
99.1	Press release, dated August 7, 2024 announcing ICU Medical, Inc.'s second quarter 2024 earnings.
104	Cover Page Interactive Data File (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

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.

	ICU MEDICAL, INC.
Date: August 7, 2024	By:	/s/ Brian M. Bonnell
		Brian M. Bonnell
		Chief Financial Officer and Treasurer

EX-99.1

Exhibit 99.1

ICU Medical Announces Second Quarter 2024 Results

and Updates Its Fiscal Year 2024 Guidance

SAN CLEMENTE, Calif., August 7, 2024 (GLOBE NEWSWIRE) -- ICU Medical, Inc. (Nasdaq:ICUI), a leader in the development, manufacture and sale of innovative medical products, today announced financial results for the quarterly period ended June 30, 2024.

Second Quarter 2024 Results

Second quarter 2024 revenue was $596.5 million, compared to $549.3 million in the same period in the prior year. GAAP gross profit for the second quarter of 2024 was $207.4 million, as compared to $192.3 million in the same period in the prior year. GAAP gross margin for the second quarter of 2024 and 2023 was 35%. GAAP net loss for the second quarter of 2024 was $(21.4) million, or $(0.88) per diluted share, as compared to GAAP net loss of $(9.9) million, or $(0.41) per diluted share, for the second quarter of 2023. Adjusted diluted earnings per share for the second quarter of 2024 was $1.56 as compared to $1.88 for the second quarter of 2023. Adjusted EBITDA was $91.3 million for the second quarter of 2024 as compared to $98.1 million for the second quarter of 2023.

Adjusted EBITDA and adjusted diluted earnings per share are measures calculated and presented on the basis of methodologies other than in accordance with GAAP. Please refer to the Use of Non-GAAP Financial Information following the financial statements herein for further discussion and reconciliations of these measures to GAAP measures.

Vivek Jain, ICU Medical’s Chief Executive Officer, said, “Second quarter results were generally in line with our expectations."

Revenues by product line for the three and six months ended June 30, 2024 and 2023 were as follows (in millions):

	Three months ended June 30,						Six months ended June 30,
Product Line	2024		2023		$ Change		2024		2023		$ Change
Consumables	$	261.8	$	237.0	$	24.8	$	505.9	$	473.1	$	32.8
Infusion Systems	163.7		153.2		10.5		321.0		314.9		6.1
Vital Care*	171.0		159.2		11.8		336.3		330.0		6.3
Total**	$	596.5	$	549.4	$	47.1	$	1,163.2	$	1,118.0	$	45.2

*Vital Care includes Pfizer contract manufacturing revenue of $15.5 million and $29.5 million for the three and six months ended June 30, 2024, respectively, as compared to $14.2 million and $26.9 million for the three and six months ended June 30, 2023.

** Totals may differ from the income statement due to the rounding of product lines.

Fiscal Year 2024 Guidance

For Fiscal Year 2024 the Company updated its estimates of GAAP net loss from a range of $(127) to $(110) to a range of $(118) to $(108) and GAAP diluted loss per share from a range of $(5.16) to $(4.46) to a range of $(4.78) to $(4.38). The Company updated the estimate of the range of its full year 2024 guidance of adjusted EBITDA from a range of $330 million to $370 million to a range of $345 million to $365 million and diluted earnings per share from a range of $4.40 to $5.10 to a range of $4.95 to $5.35.

Conference Call

The Company will host a conference call to discuss its second quarter 2024 financial results, today at 4:30 p.m. ET (1:30 p.m. PT). The call can be accessed at (800) 579-2543, conference ID "ICUMED". The conference call will be simultaneously available by webcast, which can be accessed by going to the Company's website at www.icumed.com, clicking on the Investors tab, clicking on Event Calendar and clicking on the Webcast icon and following the prompts. The webcast will also be available by replay.

About ICU Medical

ICU Medical (Nasdaq: ICUI) is a global leader in infusion systems, infusion consumables and high-value critical care products used in hospital, alternate site and home care settings. Our team is focused on providing quality, innovation and value to our

clinical customers worldwide. ICU Medical is headquartered in San Clemente, California. More information about ICU Medical can be found at www.icumed.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as ''will,'' ''expect,'' ''believe,'' ''could,'' ''would,'' ''estimate,'' ''continue,'' ''build,'' ''expand'' or the negative thereof or comparable terminology and may include (without limitation) information regarding the Company's expectations, goals and intentions regarding the future. These forward-looking statements are based on management's current expectations, estimates, forecasts and projections about the Company and assumptions management believes are reasonable, all of which are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated in the forward-looking statements. These risks and uncertainties include, but are not limited to, decreased demand for the Company's products, decreased free cash flow, changes in product mix, increased competition from competitors, lack of growth or improving efficiencies, unexpected changes in the Company's arrangements with its largest customers, the impact from fluctuations in foreign currency exchange rates, the impact of inflation on raw materials, freight charges and labor, rising interest rates, and the Company's ability to meet expectations regarding the ongoing integration of the Smiths Medical business. Future results are subject to risks and uncertainties, including the risk factors, and other risks and uncertainties, described in the Company's filings with the Securities and Exchange Commission ("SEC"), which include those in the Company's most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and our subsequent filings with the SEC. Forward-looking statements contained in this press release are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise unless required by law.

ICU MEDICAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands)

	June 30, 2024		December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	302,648	$	254,222
Short-term investment securities	—		501
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENT SECURITIES	302,648		254,723
Accounts receivable, net of allowance for doubtful accounts	151,765		161,566
Inventories	682,870		709,360
Prepaid income taxes	17,883		21,983
Prepaid expenses and other current assets	80,825		73,640
TOTAL CURRENT ASSETS	1,235,991		1,221,272
PROPERTY, PLANT AND EQUIPMENT, net	594,085		612,909
OPERATING LEASE RIGHT-OF-USE ASSETS	66,408		69,909
GOODWILL	1,450,935		1,472,446
INTANGIBLE ASSETS, net	805,794		870,588
DEFERRED INCOME TAXES	38,861		37,295
OTHER ASSETS	94,593		94,020
TOTAL ASSETS	$	4,286,667	$	4,378,439
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	155,515	$	150,030
Accrued liabilities	299,751		268,215
Current portion of long-term debt	51,000		51,000
Income tax payable	4,141		7,714
Contingent earn-out liability	1,500		4,879
TOTAL CURRENT LIABILITIES	511,907		481,838
CONTINGENT EARN-OUT LIABILITY	3,947		3,991
LONG-TERM DEBT	1,554,822		1,577,770
OTHER LONG-TERM LIABILITIES	91,356		100,497
DEFERRED INCOME TAXES	53,794		55,873
INCOME TAX LIABILITY	33,029		35,060
COMMITMENTS AND CONTINGENCIES	—		—
STOCKHOLDERS’ EQUITY:
Convertible preferred stock, $1.00 par value; Authorized — 500 shares; Issued and outstanding — none	—		—
Common stock, $0.10 par value; Authorized — 80,000 shares; Issued —24,430 and 24,144 shares at June 30, 2024 and December 31, 2023, respectively, and outstanding — 24,425 and 24,141 shares at June 30, 2024 and December 31, 2023, respectively	2,443		2,414
Additional paid-in capital	1,380,703		1,366,493
Treasury stock, at cost	(518)		(262)
Retained earnings	746,969		807,846
Accumulated other comprehensive loss	(91,785)		(53,081)
TOTAL STOCKHOLDERS' EQUITY	2,037,812		2,123,410
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	4,286,667	$	4,378,439

ICU MEDICAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In thousands, except per share data)

	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
TOTAL REVENUES	$	596,455	$	549,310	$	1,163,110	$	1,117,959
COST OF GOODS SOLD	389,027		356,983		770,438		733,591
GROSS PROFIT	207,428		192,327		392,672		384,368
OPERATING EXPENSES:
Selling, general and administrative	159,549		150,895		317,206		303,467
Research and development	23,390		22,302		45,232		42,063
Restructuring, strategic transaction and integration	17,136		12,354		33,241		23,367
Change in fair value of contingent earn-out	(339)		4,016		(44)		3,316
TOTAL OPERATING EXPENSES	199,736		189,567		395,635		372,213
INCOME (LOSS) FROM OPERATIONS	7,692		2,760		(2,963)		12,155
INTEREST EXPENSE, net	(23,841)		(24,121)		(47,613)		(46,636)
OTHER EXPENSE, net	(3,384)		(1,502)		(5,725)		(1,771)
LOSS BEFORE INCOME TAXES	(19,533)		(22,863)		(56,301)		(36,252)
(PROVISION) BENEFIT FOR INCOME TAXES	(1,873)		12,929		(4,576)		16,506
NET LOSS	$	(21,406)	$	(9,934)	$	(60,877)	$	(19,746)
NET LOSS PER SHARE
Basic	$	(0.88)	$	(0.41)	$	(2.51)	$	(0.82)
Diluted	$	(0.88)	$	(0.41)	$	(2.51)	$	(0.82)
WEIGHTED AVERAGE NUMBER OF SHARES
Basic	24,393		24,075		24,295		24,045
Diluted	24,393		24,075		24,295		24,045

ICU MEDICAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

	Six months ended June 30,
	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(60,877)	$	(19,746)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	110,844		113,244
Noncash lease expense	10,524		11,110
Provision for doubtful accounts	1,370		399
Provision for warranty, returns and field action	(2,458)		7,070
Stock compensation	22,596		18,931
(Gain) loss on disposal of property, plant and equipment and other assets	(78)		1,019
Debt issuance costs amortization	3,411		3,404
Change in fair value of contingent earn-out liability	(44)		3,316
Usage of spare parts	8,944		10,056
Other	4,925		2,917
Changes in operating assets and liabilities, net of amounts acquired:
Accounts receivable	6,715		46,796
Inventories	21,095		(76,040)
Prepaid expenses and other current assets	(12,638)		2,983
Other assets	(11,124)		(12,698)
Accounts payable	9,432		(46,864)
Accrued liabilities	20,245		(104)
Income taxes, including excess tax benefits and deferred income taxes	(5,138)		(26,022)
Net cash provided by operating activities	127,744		39,771
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(35,382)		(32,489)
Proceeds from sale of assets	692		1,431
Intangible asset additions	(5,364)		(4,651)
Proceeds from sale and maturities of investment securities	500		2,920
Net cash used in investing activities	(39,554)		(32,789)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal repayments of long-term debt	(25,500)		(14,813)
Proceeds from exercise of stock options	3,074		2,233
Payments on finance leases	(518)		(436)
Payment of contingent earn-out liability	(2,600)		—
Tax withholding payments related to net share settlement of equity awards	(11,685)		(8,718)
Net cash used in financing activities	(37,229)		(21,734)
Effect of exchange rate changes on cash	(2,535)		1,855
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	48,426		(12,897)
CASH AND CASH EQUIVALENTS, beginning of period	254,222		208,784
CASH AND CASH EQUIVALENTS, end of period	$	302,648	$	195,887

Use of Non-GAAP Financial Information

This press release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The non-GAAP financial measures should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. There are material limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may not be comparable to similarly titled non-GAAP financial measures used by other companies, including peer companies. Our management believes that the non-GAAP data provides useful supplemental information to management and investors regarding our performance and facilitates a more meaningful comparison of results of operations between current and prior periods. We use non-GAAP financial measures in addition to and in conjunction with GAAP financial measures to analyze and assess the overall performance of our business, in making financial, operating and planning decisions, and in determining executive incentive compensation.

The non-GAAP financial measures include adjusted EBITDA, adjusted revenue, adjusted gross profit, adjusted selling, general and administrative, adjusted research and development, adjusted restructuring, strategic transaction and integration, adjusted change in fair value of contingent earn-out, adjusted (loss) income from operations, adjusted other expense, net, adjusted (loss) income before income taxes, adjusted (provision) benefit for income taxes, adjusted net (loss) income and adjusted diluted (loss) earnings per share, all of which exclude special items because they are highly variable or unusual and impact year-over-year comparisons.

For the three months ended June 30, 2024 and 2023, special items include the following:

Contract manufacturing: We manufacture certain products for Pfizer in accordance with a manufacturing services agreement. We do not include the contract revenue in our adjusted revenue as the commercial relationship under this agreement was originally negotiated contemporaneously with a business combination and is not indicative of a normal market transaction.

Stock compensation expense: Stock-based compensation is generally fixed at the time the stock-based instrument is granted and amortized over a period of several years. The value of stock options is determined using a complex formula that incorporates factors, such as market volatility, that are beyond our control. The value of our restricted stock awards is determined using the grant date stock price, which may not be indicative of our operational performance over the expense period. Additionally, in order to establish the fair value of performance-based stock awards, which are currently an element of our ongoing stock-based compensation, we are required to apply judgment to estimate the probability of the extent to which performance objectives will be achieved. Based on the above factors, we believe it is useful to exclude stock-based compensation in order to better understand our operating performance.

Intangible asset amortization expense: We do not acquire businesses or capitalize certain patent costs on a predictable cycle. The amount of purchase price allocated to intangible assets and the term of amortization can vary significantly and are unique to each acquisition. Capitalized patent costs can vary significantly based on our current level of development activities. We believe that excluding amortization of intangible assets provides the users of our financial statements with a consistent basis for comparison across accounting periods.

Restructuring, strategic transaction and integration: We incur restructuring and strategic transaction charges that result from events, which arise from unforeseen circumstances and/or often occur outside of the ordinary course of our ongoing business. Although these events are reflected in our GAAP financial statements, these unique transactions may limit the comparability of our ongoing operations with prior and future periods.

Change in fair value of contingent earn-out: We exclude the impact of certain amounts recorded in connection with business combinations. We exclude items that are either non-cash or not normal, recurring operating expenses due to their nature, variability of amounts, and lack of predictability as to occurrence and/or timing.

Quality system and product-related remediation: We exclude certain quality system and product-related remediation charges in determining our non-GAAP financial measures as they may limit the comparability of our ongoing operations with prior and future periods and distort the evaluation of our normal operating performance.

Asset write-offs and similar charges: Occasionally, we may write-off certain assets or we may sell certain assets. We exclude the non-cash gain/loss on the write-off/sale of these assets in determining our non-GAAP financial measures as they may limit the comparability of our ongoing operations with prior and future periods and distort the evaluation of our normal operating performance.

From time to time in the future, there may be other items that we may exclude if we believe that doing so is consistent with the goal of providing useful information to investors and management.

In addition to the above special items, Adjusted EBITDA additionally excludes the following items from net income:

Depreciation expense: We exclude depreciation expense in deriving adjusted EBITDA because companies utilize productive assets of different ages and the depreciable lives can vary significantly resulting in considerable variability in depreciation expense among companies.

Interest, net: We exclude interest in deriving adjusted EBITDA as interest can vary significantly among companies depending on a company's level of income generating instruments and/or level of debt.

Taxes: We exclude taxes in deriving adjusted EBITDA as taxes are deemed to be non-core to the business and may limit the comparability of our ongoing operations with prior and future periods and distort the evaluation of our normal operating performance.

Adjusted Diluted EPS excludes from diluted EPS, net of tax, the special items listed above. The tax effect on the special items is calculated using the specific tax rate applied to each adjustment based on the nature of the item/or the tax jurisdiction in which the item has been recorded. Additionally, adjusted diluted EPS may exclude the income tax impact of certain non-recurring discrete tax items that are not reflective of income tax expense/benefit incurred as a result of current period earnings/ loss, as well as the impact of certain deferred tax valuation allowances when assessed against non-GAAP profitability.

We also present Free cash flow as a non-GAAP financial measure as management believes that this is an important measure for use in evaluating overall company financial performance as it measures our ability to generate additional cash flow from business operations. Free cash flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited and does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as supplemental to our entire statement of cash flows.

The following tables reconcile our non-GAAP financial measures for the periods presented:

ICU MEDICAL, INC. AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)

(In thousands, except per share data)

	Adjusted EBITDA
	Three months ended June 30,
	2024		2023
GAAP net loss	$	(21,406)	$	(9,934)
Non-GAAP adjustments:
Interest, net	23,841		24,121
Stock compensation expense	10,998		9,773
Depreciation and amortization expense	55,318		57,500
Restructuring, strategic transaction and integration	17,136		12,354
Change in fair value of contingent earn-out	(339)		4,016
Quality system and product-related charges	3,924		13,134
Asset write-offs and similar charges	(8)		19
Provision (Benefit) for income taxes	1,873		(12,929)
Total non-GAAP adjustments	112,743		107,988
Adjusted EBITDA	$	91,337	$	98,054

ICU MEDICAL, INC. AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)

(In thousands, except percentages and per share)

The Company’s U.S. GAAP results for the three months ended June 30, 2024 included special items which impacted the U.S. GAAP measures as follows:

	Total revenues		Gross profit			Selling, general and administrative			Research and development			Restructuring, strategic transaction and integration			Change in fair value of contingent earn-out			(Loss) income from operations			Other expense, net			(Loss) income before income taxes			Provision for income taxes			Net (loss) income			Diluted (loss) earnings per share
Reported (GAAP)	$	596,455	$	207,428		$	159,549		$	23,390		$	17,136		$	(339)		$	7,692		$	(3,384)		$	(19,533)		$	(1,873)		$	(21,406)		$	(0.88)
Reported percent of total revenues (or percent of (loss) income before income taxes for benefit (provision) for income taxes)			35		%	27		%	4		%	3		%	—		%	1		%	(1)		%	(3)		%	(9.6)		%	(4)		%
Contract manufacturing	(15,473)		—			—			—			—			—			—			—			—			—			—
Stock compensation expense	—		1,524			(9,071)			(403)			—			—			10,998			—			10,998			(2,640)			8,358			0.34
Amortization expense	—		—			(33,059)			—			—			—			33,059			—			33,059			(8,037)			25,022			1.02
Restructuring, strategic transaction and integration	—		—			—			—			(17,136)			—			17,136			—			17,136			(4,124)			13,012			0.53
Change in fair value of contingent earn-out	—		—			—			—			—			339			(339)			—			(339)			—			(339)			(0.01)
Quality system and product-related remediation	—		3,924			—			—			—			—			3,924			—			3,924			(885)			3,039			0.12
Asset write-offs and similar charges	—		—			—			—			—			—			—			(8)			(8)			2			(6)			—
Tax expense from valuation allowance*	—		—			—			—			—			—			—			—			—			10,387			10,387			0.42
Adjusted (Non-GAAP)**	$	580,982	$	212,876		$	117,419		$	22,987		$	—		$	—		$	72,470		$	(3,392)		$	45,237		$	(7,170)		$	38,067		$	1.56
Adjusted percent of total revenues (or percent of (loss) income before income taxes for benefit (provision) for income taxes)			37		%	20		%	4		%	—		%	—		%	12		%	(1)		%	8		%	15.8		%	7		%

_______________________

* The Company’s non-GAAP annual effective tax rate is calculated without the tax expense related to the valuation allowance against certain U.S. Federal and State deferred tax assets. The valuation allowance was recorded based on an assessment of available positive and negative evidence, including, predominantly, an estimate that we will be in a three-year cumulative U.S. loss position on a GAAP basis as of June 30, 2024. However, based on the same assessment, including, predominantly, our being, and expectation of remaining for 2024, in a three-year cumulative U.S. income position on a non-GAAP basis, which excludes the impact of our non-GAAP adjustments, we concluded that recording a valuation allowance would not have been appropriate for non-GAAP reporting. As a result, the tax expense for the valuation allowance was added back to our calculation of non-GAAP annual effective tax rate.

** Amounts may not foot due to rounding.

ICU MEDICAL, INC. AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)(continued)

(In thousands, except percentages and per share)

The Company’s U.S. GAAP results for the three months ended June 30, 2023 included special items which impacted the U.S. GAAP measures as follows:

	Total revenues		Gross profit			Selling, general and administrative			Research and development			Restructuring, strategic transaction and integration			Change in fair value of contingent earn-out			Income from operations			Other expense, net			(Loss) income before income taxes			Benefit (provision) for income taxes			Net (loss) income			Diluted (loss) earnings per share
Reported (GAAP)	$	549,310	$	192,327		$	150,895		$	22,302		$	12,354		$	4,016		$	2,760		$	(1,502)		$	(22,863)		$	12,929		$	(9,934)		$	(0.41)
Reported percent of total revenues (or percent of (loss) income before income taxes for benefit (provision) for income taxes)			35		%	27		%	4		%	2		%	1		%	1		%	—		%	(4)		%	56.6		%	(2)		%
Contract manufacturing	(14,198)		—			—			—			—			—			—			—			—			—			—
Stock compensation expense	—		1,571			(7,794)			(408)			—			—			9,773			—			9,773			(2,346)			7,427			0.30
Amortization expense	—		—			(33,121)			—			—			—			33,121			—			33,121			(8,110)			25,011			1.02
Restructuring, strategic transaction and integration	—		—			—			—			(12,354)			—			12,354			—			12,354			(2,984)			9,370			0.38
Change in fair value of contingent earn-out	—		—			—			—			—			(4,016)			4,016			—			4,016			—			4,016			0.16
Quality system and product-related remediation	—		13,134			—			—			—			—			13,134			—			13,134			(3,234)			9,900			0.41
Asset write-offs and similar charges	—		—			—			—			—			—			—			19			19			—			19			—
Adjusted (Non-GAAP)*	$	535,112	$	207,032		$	109,980		$	21,894		$	—		$	—		$	75,158		$	(1,483)		$	49,554		$	(3,745)		$	45,809		$	1.88
Adjusted percent of total revenues (or percent of (loss) income before income taxes for benefit (provision) for income taxes)			39		%	21		%	4		%	—		%	—		%	14		%	—		%	9		%	7.6		%	9		%

_____________

* Amounts may not foot due to rounding

ICU MEDICAL, INC. AND SUBSIDIARIES

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited)

(In thousands)

	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Net cash provided by operating activities	$	81,953	(1,474)		$	127,744	$	39,771
Purchase of property, plant and equipment	(19,467)		(18,284)		(35,382)		(32,489)
Proceeds from sale of assets	185		1,377		692		1,431
Free cash flow	$	62,671	$	(18,381)	$	93,054	$	8,713

ICU MEDICAL, INC. AND SUBSIDIARIES

Fiscal Year 2024

Outlook (Unaudited)

(In millions, except per share data)

	Low End of Guidance		High End of Guidance
GAAP net loss	$	(118)	$	(108)
Non-GAAP adjustments:
Interest, net	105		105
Stock compensation expense	44		44
Depreciation and amortization expense	229		229
Restructuring, strategic transaction and integration	50		50
Quality and regulatory initiatives and remediation	35		35
Change in fair value of contingent earn-out	(4)		(4)
Provision for income taxes	4		14
Total non-GAAP adjustments	$	463	$	473
Adjusted EBITDA	$	345	$	365
GAAP basic/diluted loss per share	$	(4.78)	$	(4.38)
Non-GAAP adjustments:
Stock compensation expense	1.79		1.79
Amortization expense	5.53		5.53
Restructuring, strategic transaction and integration	2.03		2.03
Quality and regulatory initiatives and remediation	1.42		1.42
Change in fair value of contingent earn-out	(0.16)		(0.16)
Tax expense from valuation allowance	1.67		1.67
Estimated income tax impact from adjustments	(2.55)		(2.55)
Adjusted diluted earnings per share	$	4.95	$	5.35

CONTACT:

ICU Medical, Inc.                    

Brian Bonnell, Chief Financial Officer

(949) 366-2183

ICR, Inc.

John Mills, Partner

(646) 277-1254

XML

Cover Page	Aug. 07, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Aug. 07, 2024
Entity Registrant Name	ICU MEDICAL INC/DE
Entity Incorporation, State or Country Code	DE
Entity File Number	001-34634
Entity Tax Identification Number	33-0022692
Entity Address, Address Line One	951 Calle Amanecer
Entity Address, City or Town	San Clemente
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92673
City Area Code	949
Local Phone Number	366-2183
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock, par value $0.10 per share
Trading Symbol	ICUI
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0000883984