ALPHARETTA, Ga., May 2, 2018 /PRNewswire/ -- Halyard Health, Inc.
(NYSE: HYH) today reported first quarter 2018 results and provided
its 2018 earnings outlook.
"I'm pleased with our continued momentum and volume growth,
achieving 6 percent organic top-line growth in medical devices,"
said Joe Woody, Halyard chief
executive officer. "We delivered solid earnings, at the same time
investing to further enhance commercial execution and product
innovation. With the divestiture of S&IP now complete, we are
in a strong position to take advantage of attractive opportunities
that fit within our dual-track growth strategy, focused on M&A
and product development."
First Quarter 2018 Financial Highlights
- First quarter continuing operations, or Medical Device sales,
were $156 million, a 7 percent
increase from the prior year. On a constant currency basis, sales
increased 6 percent.
- Net income for the first quarter was $20
million, compared to $13
million in the prior year. Adjusted net income was
$36 million, up from $23 million a year ago. Additionally, Medical
Device operating profit for the first quarter increased 6 percent
to $40 million.
- First quarter diluted earnings per share totaled $0.43, compared to $0.27 a year ago.
- Adjusted diluted earnings per share were $0.76, up 58 percent compared to the prior
year.
- First quarter EBITDA was $42
million compared to $43
million in the prior year. On an adjusted basis, EBITDA
increased 12 percent to $59 million
for the quarter, compared to the prior year.
Operational and Business Highlights
- Completed the divestiture of Surgical and Infection Prevention
(S&IP) on April 30, 2018 - which
transforms the company into a pure-play Medical Devices business
and provides additional financial capacity to fund dual-track
growth strategy.
- Initiated the installation of a new IT system that will be
completed in 2019 and is expected to generate $15 to $19 million
in cost savings.
- Repaid $40 million of the Term
Loan B credit facility and plan to pay off the balance with the
proceeds from the sale of the S&IP business.
- Focused on establishing an enhanced organizational structure
for a pure-play Medical Devices business, strengthening the
leadership team, including recent appointment of Arjun Sarker, as Senior Vice President -
International.
First Quarter 2018 Operating Results from Continuing
Operations
Medical Device net sales totaled $156
million, a 6 percent increase compared to the first quarter
last year, on a constant currency basis.
Performance was driven by increased demand in interventional
pain, digestive health and respiratory health as volumes increased
6 percent and favorable currency exchange rates benefited sales by
1 percent.
Operating loss was $7 million
compared to a loss of $18 million in
2017. Volume growth and lower expenses related to excluded items
helped drive performance. On an adjusted basis, operating profit
was $2 million compared to a loss of
$2 million in 2017.
As a result of the previously announced divestiture, the
S&IP segment operating results are reflected as discontinued
operations for all periods presented. Treating S&IP as
discontinued operations results in significant shared overhead
costs previously allocated to the S&IP business that are now
included in continuing operations. Included in first quarter
continuing operations are costs previously allocated to S&IP of
$28 million in 2018 and$29 million in
2017.
Adjusted operating profit for the first quarter excludes
$3 million of restructuring and IT
charges, $2 million for litigation
matters and $5 million of intangible
amortization expense.
Adjusted EBITDA for the first quarter, excluding
divestiture-related charges, restructuring and IT charges, and
litigation expenses was, $59 million
compared to $53 million in the prior
year.
Cash Flow and Balance Sheet
Total debt at the end of the first quarter was $542 million, consisting of a secured term loan
and unsecured notes, compared to $581
million at the end of 2017. The decrease in total debt was
due to the $40 million repayment of
the secured term loan, as required in the company's credit
agreement for excess cash generation in the prior year.
Cash from operations less capital expenditures, or free cash
flow, for the quarter was $17 million
compared to $27 million a year ago.
The decrease was primarily due to changes in working capital. The
company's cash balance was $203
million at the end of the quarter, compared to $220 million at the end of 2017.
Discontinued Operations
First quarter net sales from discontinued operations were
$264 million, a 6 percent increase,
compared to the first quarter a year ago. On a constant currency
basis, sales were up 4 percent. Five percent volume growth was
driven by continued strong demand for exam gloves and an increase
in facial protection due to the cold and flu season. Volume growth
was partially offset by 2 percent lower selling prices,
concentrated in exam gloves. Adjusted net income for the quarter
totaled $41 million compared to
$28 million in the prior year.
2018 Key Planning Assumptions
For the full-year 2018, the company expects to earn adjusted
diluted earnings per share of $1.65
to $1.85, which includes earnings
from both continuing and discontinued operations. Additionally, the
key planning assumptions that it provided on its Year-End 2017
conference call remain unchanged.
Non-GAAP Financial Measures
This press release and the accompanying tables include the
following financial measures that have not been calculated in
accordance with accounting principles generally accepted in the
U.S., or GAAP, and are therefore referred to as non-GAAP financial
measures:
- Adjusted net income
- Adjusted diluted earnings per share
- Adjusted gross and operating profit
- Adjusted effective tax rate
- Adjusted EBITDA
- Free cash flow
These non-GAAP financial measures exclude the following items,
as applicable, for the relevant time periods as indicated in the
accompanying non-GAAP reconciliations to the comparable GAAP
financial measures:
- Expenses associated with the divestiture of the S&IP
business and the corporate restructuring and IT transformation
costs.
- Prior year transition costs relating to the separation from
Kimberly-Clark Corporation, which included costs to establish
Halyard Health's capabilities as a stand-alone entity. These costs
are related primarily to rebranding and other supply chain
transition costs.
- Expenses associated with the amortization of intangible assets
associated with prior business acquisitions.
- The positive or negative effect of changes in currency exchange
rates during the year.
- Expenses associated with certain litigation matters.
- Certain prior year acquisition and integration charges related
to the acquisition of CORPAK MedSystems, Inc.
- Prior periods impact of tax regulatory changes.
The company provides these non-GAAP financial measures as
supplemental information to our GAAP financial measures. Management
and the company's Board of Directors use net sales on a constant
currency basis, adjusted net income, adjusted diluted earnings per
share, adjusted operating profit, adjusted EBITDA, and free cash
flow to (a) evaluate the company's historical and prospective
financial performance and its performance relative to its
competitors, (b) allocate resources and (c) measure the operational
performance of the company's business units and their managers.
Management also believes that the use of an adjusted effective tax
rate provides improved insight into the tax effects of our ongoing
business operations.
Additionally, the Compensation Committee of the company's Board
of Directors will use certain of the non-GAAP financial measures
when setting and assessing achievement of incentive compensation
goals. These goals are based, in part, on the company's net sales
on a constant currency basis and adjusted EBITDA, which will be
determined by excluding certain items that are used in calculating
these non-GAAP financial measures.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in the
attached financial tables.
Conference Call Webcast
Halyard Health, Inc. will host a conference call today at
9 a.m. ET. The conference call can be
accessed live over the internet at
https://halyardhealth.investorroom.com or via telephone by
dialing 877-240-5772 in the United
States. A replay of the call will be available at
noon ET today by calling 877-344-7529
in the United States and entering
passcode 10118578. A webcast of the call will also be archived
in the Investors section on the Halyard website.
About Halyard Health
Halyard Health (NYSE: HYH) is a medical technology company
focused on delivering clinically superior breakthrough medical
device solutions to improve patients' quality of life.
Headquartered in Alpharetta,
Georgia, Halyard is committed to addressing some of today's
most important healthcare needs, such as reducing the use of
opioids while helping patients move from surgery to recovery.
Halyard develops, manufactures and markets its recognized brands in
more than 90 countries. For more information, visit
www.halyardhealth.com.
Forward-Looking Statements
This press release contains information that includes or is
based on "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are based on the current plans and expectations of
management and are subject to various risks and uncertainties that
could cause our actual results to differ materially from those
expressed or implied in such statements. Forward-looking statements
include all statements that do not relate solely to historical or
current facts, and can generally be identified by the use of words
such as "may", "believe", "will", "expect", "project", " estimate",
"anticipate", "plan", or "continue" and similar expressions, among
others. Such factors include, but are not limited to: weakening of
economic conditions that could adversely affect the level of demand
for our products; pricing pressures generally, including
cost-containment measures that could adversely affect the price of
or demand for our products; S&IP separation execution; changes
in foreign exchange markets; legislative and regulatory actions;
unanticipated issues arising in connection with clinical studies
and otherwise that affect U.S. Food and Drug Administration
approval of new products; changes in reimbursement levels from
third-party payors; a significant increase in product liability
claims; the impact of investigative and legal proceedings and
compliance risks; the impact of the federal legislation to reform
the United States healthcare
system; changes in financial markets; and changes in the
competitive environment. Additional information concerning these
and other factors that may impact future results is contained in
our filings with the U.S. Securities and Exchange Commission,
including our most recent Form 10-K and Quarterly Reports on Form
10-Q.
HALYARD HEALTH,
INC.
|
CONDENSED
CONSOLIDATED INCOME STATEMENTS
|
(unaudited)
|
(in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2018
|
|
2017
|
|
Change
|
Net
Sales
|
$
|
156.4
|
|
|
$
|
145.7
|
|
7.3
|
%
|
Cost of products
sold
|
65.3
|
|
|
64.2
|
|
1.7
|
|
Gross
Profit
|
91.1
|
|
|
81.5
|
|
11.8
|
|
Research and
development expenses
|
9.9
|
|
|
7.3
|
|
35.6
|
|
Selling and general
expenses
|
86.4
|
|
|
84.8
|
|
1.9
|
|
Other expense,
net
|
1.8
|
|
|
7.0
|
|
N.M.
|
|
Operating
Loss
|
(7.0)
|
|
|
(17.6)
|
|
(60.2)
|
|
Interest
income
|
1.0
|
|
|
0.4
|
|
N.M.
|
|
Interest
expense
|
(8.8)
|
|
|
(7.6)
|
|
15.8
|
|
Loss Before Income
Taxes
|
(14.8)
|
|
|
(24.8)
|
|
(40.3)
|
|
Income tax
benefit
|
3.5
|
|
|
9.9
|
|
(64.6)
|
|
Loss from
Continuing Operations
|
(11.3)
|
|
|
(14.9)
|
|
(24.2)
|
|
Income from
discontinued operations, net of tax
|
31.5
|
|
|
27.7
|
|
N.M.
|
|
Net
Income
|
$
|
20.2
|
|
|
$
|
12.8
|
|
57.8
|
|
|
|
|
|
|
|
Interest expense,
net
|
7.8
|
|
|
7.2
|
|
8.3
|
|
Income tax
provision
|
6.1
|
|
|
6.3
|
|
(3.2)
|
|
Depreciation and
amortization
|
7.8
|
|
|
16.2
|
|
(51.9)
|
|
EBITDA
|
$
|
41.9
|
|
|
$
|
42.5
|
|
(1.4)
|
|
|
|
|
|
|
|
Basic (Loss)
Earnings Per Share
|
|
|
|
|
|
Continuing
operations
|
$
|
(0.24)
|
|
|
$
|
(0.32)
|
|
(25.0)
|
|
Discontinued
operations
|
0.67
|
|
|
0.59
|
|
13.6
|
|
Net income
|
$
|
0.43
|
|
|
$
|
0.27
|
|
59.3
|
|
Diluted (Loss)
Earnings Per Share
|
|
|
|
|
|
Continuing
operations
|
$
|
(0.24)
|
|
|
$
|
(0.32)
|
|
(25.0)
|
|
Discontinued
operations
|
0.67
|
|
|
0.59
|
|
13.6
|
|
Net income
|
$
|
0.43
|
|
|
$
|
0.27
|
|
59.3
|
|
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding
|
|
|
|
|
|
Basic
|
46.9
|
|
|
46.7
|
|
|
|
Diluted
|
46.9
|
|
|
46.7
|
|
|
|
HALYARD HEALTH,
INC.
|
DISCONTINUED
OPERATIONS SUMMARY
|
(unaudited)
|
(in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Income from
Discontinued Operations
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Net Sales
|
$
|
264.0
|
|
|
$
|
249.9
|
|
Cost of products
sold
|
194.5
|
|
|
188.5
|
|
Research and
development
|
0.9
|
|
|
0.7
|
|
Selling, general and
other expenses
|
27.5
|
|
|
16.8
|
|
Income before income
taxes
|
41.1
|
|
|
43.9
|
|
Tax
provision
|
(9.6)
|
|
|
(16.2)
|
|
Income from
Discontinued Operations, net of tax
|
$
|
31.5
|
|
|
$
|
27.7
|
|
|
|
|
|
Earnings per share
from discontinued operations:
|
|
|
|
Basic
|
$
|
0.67
|
|
|
$
|
0.59
|
|
Diluted
|
0.67
|
|
|
0.59
|
|
HALYARD HEALTH,
INC.
|
NON-GAAP
RECONCILIATIONS
|
(unaudited)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
Operating Profit
(Loss)(a)
|
|
Three Months Ended
March 31,
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
As
reported
|
$
|
91.1
|
|
|
$
|
81.5
|
|
|
$
|
(7.0)
|
|
|
$
|
(17.6)
|
|
|
|
|
|
|
|
|
|
Restructuring and IT
charges
|
—
|
|
|
—
|
|
|
2.9
|
|
|
—
|
|
Acquisition-related
charges
|
—
|
|
|
0.5
|
|
|
—
|
|
|
1.6
|
|
Spin-related
transition charges
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
Litigation and
legal
|
—
|
|
|
—
|
|
|
1.7
|
|
|
8.0
|
|
Intangibles
amortization
|
0.9
|
|
|
1.0
|
|
|
4.5
|
|
|
5.3
|
|
|
|
|
|
|
|
|
|
As adjusted
non-GAAP
|
$
|
92.0
|
|
|
$
|
83.0
|
|
|
$
|
2.1
|
|
|
$
|
(2.2)
|
|
|
|
(a)
|
For the three months
ended March 31, 2018, operating profit includes $27.9 million
of costs formerly included in the S&IP business, $14.5 million
of general expenses and $2.9 million of restructuring costs. For
the three months ended March 31, 2017, operating profit
includes $28.9 million of costs formerly included in the S&IP
business, $17.6 million of general expenses, $1.6 million of
acquisition-related expenses and $0.5 million of post-spin related
rebranding costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Before Income
Taxes
|
|
Income Tax
Benefit
|
|
Three Months Ended
March 31,
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
As
reported
|
$
|
(14.8)
|
|
|
$
|
(24.8)
|
|
|
$
|
3.5
|
|
|
$
|
9.9
|
|
Effective tax
rate, as reported
|
|
|
|
|
23.6
|
%
|
|
39.9
|
%
|
|
|
|
|
|
|
|
|
Restructuring and IT
charges
|
2.9
|
|
|
—
|
|
|
(0.8)
|
|
|
—
|
|
Acquisition-related
charges
|
—
|
|
|
1.6
|
|
|
—
|
|
|
(0.6)
|
|
Spin-related
transition charges
|
—
|
|
|
0.5
|
|
|
—
|
|
|
(0.2)
|
|
Litigation and
legal
|
1.7
|
|
|
8.0
|
|
|
(0.5)
|
|
|
(3.0)
|
|
Intangibles
amortization
|
4.5
|
|
|
5.3
|
|
|
(1.2)
|
|
|
(2.1)
|
|
|
|
|
|
|
|
|
|
As adjusted
non-GAAP
|
$
|
(5.7)
|
|
|
$
|
(9.4)
|
|
|
$
|
1.0
|
|
|
$
|
4.0
|
|
Effective tax
rate, as adjusted
|
|
|
|
|
17.5
|
%
|
|
42.6
|
%
|
HALYARD HEALTH,
INC.
|
NON-GAAP
RECONCILIATIONS
|
(unaudited)
|
(in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Loss from
Continuing Operations
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
As
reported
|
$
|
(11.3)
|
|
|
$
|
(14.9)
|
|
Diluted EPS, as
reported
|
$
|
(0.24)
|
|
|
$
|
(0.32)
|
|
|
|
|
|
Restructuring and IT
charges
|
2.1
|
|
|
—
|
|
Acquisition-related
charges
|
—
|
|
|
1.0
|
|
Spin-related
transition charges
|
—
|
|
|
0.3
|
|
Litigation and
legal
|
1.2
|
|
|
5.0
|
|
Intangibles
amortization
|
3.3
|
|
|
3.2
|
|
|
|
|
|
As adjusted
non-GAAP
|
$
|
(4.7)
|
|
|
$
|
(5.4)
|
|
Diluted EPS, as
adjusted
|
$
|
(0.10)
|
|
|
$
|
(0.12)
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Discontinued
Operations, net of tax
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
As
reported
|
$
|
31.5
|
|
|
$
|
27.7
|
|
Diluted EPS, as
reported
|
$
|
0.67
|
|
|
$
|
0.59
|
|
|
|
|
|
Divestiture-related
charges
|
9.0
|
|
|
—
|
|
Spin-related
transition charges
|
—
|
|
|
0.1
|
|
Intangibles
amortization
|
—
|
|
|
0.2
|
|
|
|
|
|
As adjusted
non-GAAP
|
$
|
40.5
|
|
|
$
|
28.0
|
|
Diluted EPS, as
adjusted
|
$
|
0.86
|
|
|
$
|
0.60
|
|
NON-GAAP
RECONCILIATIONS
|
(unaudited)
|
(in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
As
reported
|
$
|
20.2
|
|
|
$
|
12.8
|
|
Diluted EPS, as
reported
|
$
|
0.43
|
|
|
$
|
0.27
|
|
|
|
|
|
Divestiture-related
charges
|
9.0
|
|
|
—
|
|
Restructuring and IT
charges
|
2.1
|
|
|
—
|
|
Acquisition-related
charges
|
—
|
|
|
1.0
|
|
Spin-related
transition charges
|
—
|
|
|
0.4
|
|
Litigation and
legal
|
1.2
|
|
|
5.0
|
|
Intangibles
amortization
|
3.3
|
|
|
3.4
|
|
|
|
|
|
As adjusted
non-GAAP
|
$
|
35.8
|
|
|
$
|
22.6
|
|
Diluted EPS, as
adjusted
|
$
|
0.76
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
EBITDA, as
reported
|
$
|
41.9
|
|
|
$
|
42.5
|
|
|
|
|
|
Divestiture-related
charges
|
12.2
|
|
|
—
|
|
Restructuring and IT
charges
|
2.9
|
|
|
—
|
|
Acquisition-related
charges
|
—
|
|
|
1.4
|
|
Spin-related
transition charges
|
—
|
|
|
0.7
|
|
Litigation and
legal
|
1.7
|
|
|
8.0
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
58.7
|
|
|
$
|
52.6
|
|
NON-GAAP
RECONCILIATIONS
|
(unaudited)
|
(in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Cash provided by
operating activities
|
$
|
26.3
|
|
|
$
|
37.0
|
|
Capital
expenditures
|
(9.6)
|
|
|
(10.2)
|
|
Free Cash
Flow
|
$
|
16.7
|
|
|
$
|
26.8
|
|
2018
OUTLOOK
|
|
|
|
|
|
|
|
|
|
Estimated
Range
|
Adjusted diluted
earnings per
share
|
$
|
1.65
|
|
to
|
$
|
1.85
|
|
Amortization
|
(0.29)
|
|
to
|
(0.29)
|
|
Divestiture-related
charges
|
(0.82)
|
|
to
|
(0.75)
|
|
Restructuring and IT
charges
|
(0.28)
|
|
to
|
(0.23)
|
|
Other
|
(0.32)
|
|
to
|
(0.22)
|
|
Diluted earnings per
share
(GAAP)
|
$
|
(0.06)
|
|
to
|
$
|
0.36
|
|
HALYARD HEALTH,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(unaudited)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
December 31,
2017
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
203.1
|
|
|
$
|
219.7
|
|
Accounts receivable,
net of allowances
|
199.5
|
|
|
203.0
|
|
Inventories
|
92.3
|
|
|
91.1
|
|
Prepaid expenses and
other current assets
|
15.8
|
|
|
14.4
|
|
Assets held for
sale
|
650.4
|
|
|
632.5
|
|
Total Current
Assets
|
1,161.1
|
|
|
1,160.7
|
|
Property, Plant
and Equipment, net
|
117.5
|
|
|
109.9
|
|
Goodwill
|
764.6
|
|
|
764.7
|
|
Other Intangible
Assets, net
|
144.6
|
|
|
148.9
|
|
Deferred Tax
Assets
|
11.3
|
|
|
7.6
|
|
Other
Assets
|
3.8
|
|
|
4.1
|
|
TOTAL
ASSETS
|
$
|
2,202.9
|
|
|
$
|
2,195.9
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Current portion of
long-term debt
|
$
|
—
|
|
|
$
|
39.8
|
|
Trade accounts
payable
|
194.4
|
|
|
171.2
|
|
Accrued
expenses
|
128.3
|
|
|
144.9
|
|
Liabilities held for
sale
|
37.9
|
|
|
33.9
|
|
Total Current
Liabilities
|
360.6
|
|
|
389.8
|
|
Long-Term
Debt
|
542.0
|
|
|
541.1
|
|
Deferred Tax
Liabilities
|
18.3
|
|
|
17.8
|
|
Other Long-Term
Liabilities
|
30.2
|
|
|
31.8
|
|
TOTAL
LIABILITIES
|
951.1
|
|
|
980.5
|
|
Stockholders'
Equity
|
1,251.8
|
|
|
1,215.4
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
2,202.9
|
|
|
$
|
2,195.9
|
|
HALYARD HEALTH,
INC.
|
CONDENSED
CONSOLIDATED CASH FLOW STATEMENTS
|
(unaudited)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Operating
Activities
|
|
|
|
Net income
|
$
|
20.2
|
|
|
$
|
12.8
|
|
Depreciation and
amortization
|
7.8
|
|
|
16.2
|
|
Net loss on asset
dispositions
|
0.8
|
|
|
—
|
|
Changes in operating
assets and liabilities
|
(6.6)
|
|
|
0.1
|
|
Deferred income taxes
and other
|
4.1
|
|
|
7.9
|
|
Cash Provided by
Operating Activities
|
26.3
|
|
|
37.0
|
|
Investing
Activities
|
|
|
|
Capital
expenditures
|
(9.6)
|
|
|
(10.2)
|
|
Cash Used in
Investing Activities
|
(9.6)
|
|
|
(10.2)
|
|
Financing
Activities
|
|
|
|
Debt
repayments
|
(40.0)
|
|
|
—
|
|
Purchase of treasury
stock
|
(0.1)
|
|
|
—
|
|
Proceeds from the
exercise of stock options
|
3.4
|
|
|
0.5
|
|
Cash (Used in)
Provided by Financing Activities
|
(36.7)
|
|
|
0.5
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
3.4
|
|
|
2.1
|
|
(Decrease)
Increase in Cash and Cash Equivalents
|
(16.6)
|
|
|
29.4
|
|
Cash and Cash
Equivalents - Beginning of Period
|
219.7
|
|
|
113.7
|
|
Cash and Cash
Equivalents - End of Period
|
$
|
203.1
|
|
|
$
|
143.1
|
|
HALYARD HEALTH,
INC.
|
SELECTED BUSINESS
SEGMENT DATA
|
(unaudited)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
ended
March 31,
|
|
|
|
2018
|
|
2017
|
|
Change
|
Operating Profit
(Loss)
|
|
|
|
|
|
Medical
Devices(a)
|
$
|
40.1
|
|
|
$
|
38.0
|
|
|
5.5
|
%
|
Corporate and
Other(b)
|
(45.3)
|
|
|
(48.6)
|
|
|
N.M.
|
|
Other expense,
net(c)
|
(1.8)
|
|
|
(7.0)
|
|
|
N.M.
|
|
Total Operating
Loss
|
$
|
(7.0)
|
|
|
$
|
(17.6)
|
|
|
(60.2)
|
%
|
(a)
|
Medical Devices
operating profit includes $4.5 million and $5.3 million of
amortization expense in the three months ended March 31, 2018
and 2017, respectively.
|
(b)
|
Corporate and Other
for the three months ended March 31, 2018 includes $27.9
million of costs formerly included in the S&IP business, $14.5
million of general expenses and $2.9 million of restructuring
costs. Corporate and Other for the three months ended
March 31, 2017 includes $28.9 million of costs formerly
included in the S&IP business, $17.6 million of general
expenses and $1.6 million of acquisition-related expenses and $0.5
million of post-spin related rebranding costs.
|
(c)
|
Other expense
includes amounts incurred related to litigation matters.
|
|
N.M. - Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
ended
March 31,
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
Change
|
Chronic
care
|
|
|
|
|
$
|
97.1
|
|
|
$
|
88.6
|
|
|
9.6
|
%
|
Pain
management
|
|
|
|
|
59.3
|
|
|
57.1
|
|
|
3.9
|
|
Net Sales
|
|
|
|
|
$
|
156.4
|
|
|
$
|
145.7
|
|
|
7.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Volume
|
|
Pricing/Mix
|
|
Currency
|
|
Other
|
Net Sales -
percentage change
|
7
|
%
|
|
6
|
%
|
|
—
|
%
|
|
1
|
%
|
|
—
|
%
|
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SOURCE Halyard Health, Inc.