ICU Medical : 2025 First Quarter ICU Medical Announces First Quarter 2025 Results

Published: 2025-05-08 20:08:44 ET ICUI

Published on 05/08/2025 at 20:08

May 8, 2025

SAN CLEMENTE, Calif., May 08, 2025 (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 March 31, 2025.

First quarter 2025 revenue was $604.7 million, as compared to $566.7 million in the same period in the prior year. GAAP gross profit for the first quarter of 2025 was $210.1 million, as compared to $185.2 million in the same period in the prior year. GAAP gross margin for the first quarter of 2025 was 35%, as compared to 33% in the same period in the prior year. GAAP net loss for the first quarter of 2025 was $(15.5) million, or $(0.63) per diluted share, as compared to GAAP net loss of $(39.5) million, or $(1.63) per diluted share, for the first quarter of 2024. Adjusted diluted earnings per share for the first quarter of 2025 was $1.72 as compared to $0.96 for the first quarter of 2024. Adjusted EBITDA was $99.4 million for the first quarter of 2025 as compared to $78.8 million for the first quarter of 2024.

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, "First quarter results were generally in line with our expectations."

March 31,

Product Line

2025

2024

$ Change

Consumables

$ 266.2

$ 244.1

$ 22.1

Infusion Systems

166.3

157.3

9.0

Vital Care*

172.2

165.3

6.9

Total**

$ 604.7

$ 566.7

$ 38.0

*Vital Care includes Pfizer contract manufacturing revenue of $5.2 million and $14.1 million for the three months ended March 31, 2025, and 2024, respectively.

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

The Company will host a conference call to discuss its first quarter 2025 financial results, today at 4:30 p.m. ET (1:30 p.m. PT). The call can be accessed at (800) 225-9448, conference ID "ICUMED". The conference call will be simultaneously available by webcast, which can be accessed by going to the Company's website at https://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.

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 https://www.icumed.com.

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 and financial outlook for 2025 and expected impacts from the IV Solutions joint venture. 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: risks from doing business in foreign countries, including related to tariffs and other barriers to trade; the Company's ability to compete successfully; decreased demand for the Company's products; costs related to product development; cost volatility or loss of supply of raw materials; inflation, tariffs and foreign currency exchange rates; impacts from global macroeconomic and geopolitical conditions; healthcare costs and reimbursement levels; disruptions at the FDA and other governmental agencies; damage at the Company's manufacturing or supply facilities; risks associated with the IV Solutions joint venture; risks associated with the timing and resolution of the 2025 warning letter; and the other important factors described under "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and our subsequent filings with the SEC, including, without limitation, in the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025. 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.

(In thousands)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents Short-term investment securities

TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENT SECURITIES

289,704

308,566

Accounts receivable, net of allowance for doubtful accounts

170,928

182,828

Inventories

590,326

584,676

Prepaid income taxes

11,471

11,244

Prepaid expenses and other current assets

75,364

70,287

Assets held for sale

286,122

284,382

TOTAL CURRENT ASSETS

1,423,915

1,441,983

PROPERTY, PLANT AND EQUIPMENT, net

441,983

442,746

OPERATING LEASE RIGHT-OF-USE ASSETS

58,025

53,295

GOODWILL

1,455,113

1,432,772

INTANGIBLE ASSETS, net

716,667

740,789

DEFERRED INCOME TAXES

24,247

24,211

OTHER ASSETS

64,631

68,135

TOTAL ASSETS

$ 4,184,581

$ 4,203,931

LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES:

Accounts payable

180,409

148,020

Accrued liabilities

278,892

306,923

Current portion of long-term debt

47,813

51,000

Income tax payable

12,246

17,328

Liabilities held for sale

29,664

32,911

TOTAL CURRENT LIABILITIES

549,024

556,182

LONG-TERM DEBT

1,488,565

1,531,858

OTHER LONG-TERM LIABILITIES

77,637

66,745

DEFERRED INCOME TAXES

45,493

48,814

INCOME TAX LIABILITY

36,173

35,097

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 -24,611 and 24,518 shares at March 31, 2025 and December 31, 2024, respectively, and outstanding - 24,611

and 24,517 shares at March 31, 2025 and December 31, 2024, respectively

2,461

2,452

Additional paid-in capital

1,416,001

1,412,118

Treasury stock, at cost

(60)

(92)

Retained earnings

674,682

690,158

Accumulated other comprehensive loss

(105,395)

(139,401)

TOTAL STOCKHOLDERS' EQUITY

1,987,689

1,965,235

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 4,184,581

$ 4,203,931

(In thousands, except per share data)

March 31,

2025

2024

TOTAL REVENUES

604,702

566,655

COST OF GOODS SOLD

394,593

381,411

GROSS PROFIT

210,109

185,244

OPERATING EXPENSES:

Selling, general and administrative

157,233

157,657

Research and development

23,291

21,842

Restructuring, strategic transaction and integration

16,697

16,105

Change in fair value of contingent earn-out

295

TOTAL OPERATING EXPENSES

197,221

195,899

INCOME (LOSS) FROM OPERATIONS

12,888

(10,655)

INTEREST EXPENSE, net

(22,031)

(23,772)

OTHER EXPENSE, net

(1,763)

(2,341)

LOSS BEFORE INCOME TAXES

(10,906)

(36,768)

PROVISION FOR INCOME TAXES

(4,570)

(2,703)

NET LOSS

NET LOSS PER SHARE

$ (15,476)

$ (39,471)

Basic

$ (0.63)

$ (1.63)

Diluted

$ (0.63)

$ (1.63)

WEIGHTED AVERAGE NUMBER OF SHARES

Basic

24,539

24,222

Diluted

24,539

24,222

(In thousands)

March 31,

2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss

$ (15,476)

$ (39,471)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

49,445

55,526

Noncash lease expense

4,475

5,341

Provision for doubtful accounts

549

Provision for warranty, returns and field action

3,634

(618)

Stock compensation

12,179

11,598

Loss (gain) on disposal of property, plant and equipment and other assets

1,696

(65)

Debt issuance costs amortization

1,700

1,708

Change in fair value of contingent earn-out liability

295

Usage of spare parts

5,023

4,201

Other

557

2,627

Changes in operating assets and liabilities, net of amounts acquired:

Accounts receivable

22,439

13,967

Inventories

(8,224)

14,164

Prepaid expenses and other current assets

(8,464)

(5,735)

Other assets

(6,815)

(5,160)

Accounts payable

32,099

5,313

Accrued liabilities

(36,343)

(16,503)

Income taxes, including excess tax benefits and deferred income taxes

(6,598)

(1,946)

Net cash provided by operating activities

51,327

45,791

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property, plant and equipment

(14,621)

(15,915)

Proceeds from sale of assets

507

Intangible asset additions

(2,232)

(2,954)

Proceeds from sale and maturities of investment securities

500

Net cash used in investing activities

(16,811)

(17,862)

CASH FLOWS FROM FINANCING ACTIVITIES:

Principal repayments of long-term debt

(47,750)

(12,750)

Proceeds from exercise of stock options

133

150

Payments on finance leases

(328)

(245)

Payments of contingent earn-out liability

(2,600)

Tax withholding payments related to net share settlement of equity awards

(8,391)

(11,400)

Net cash used in financing activities

(56,336)

(26,845)

Effect of exchange rate changes on cash

2,958

(3,883)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(18,862)

(2,799)

CASH AND CASH EQUIVALENTS, beginning of period

308,566

254,222

CASH AND CASH EQUIVALENTS, end of period

$ 289,704

$ 251,423

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 income (loss) from operations, adjusted other expense, net, adjusted income (loss) 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 March 31, 2025 and 2024, 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.

Depreciation expense reduction - Assets Held For Sale Classification: Once classified as held for sale, depreciation expense is not recorded for any

long-lived assets included in the disposal group even though these assets continue to be utilized in the normal course of business. As such, we adjust for the impact of the discontinuation of depreciation with respect to assets classified as held for sale during the period as these unique transactions may limit the comparability of our ongoing operations with prior and future 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:

(In thousands, except per share data)

March 31,

2025

2024

GAAP net loss

$ (15,476)

$ (39,471)

Non-GAAP adjustments: Interest, net

22,031

23,772

Stock compensation expense

12,179

11,598

Depreciation and amortization expense

49,445

55,526

Restructuring, strategic transaction and integration

16,697

16,105

Change in fair value of contingent earn-out

295

Quality system and product-related charges

9,980

7,498

Asset write-offs and similar charges

781

Provision for income taxes

4,570

2,703

Total non-GAAP adjustments

114,902

118,278

Adjusted EBITDA

$ 99,426

$ 78,807

(In thousands, except percentages and per share)

The Company's U.S. GAAP results for the three months ended March 31, 2025 included special items which impacted the U.S. GAAP measures as follows:

Reported (GAAP)

Reported percent of

$604,702 $210,109

$ 157,233

$ 23,291

$ 16,697

$ 12,888 $(10,906)

$ (4,570) $(15,476) $

(0.63)

total revenues (or percent of (loss) income before income taxes for benefit (provision) for

income taxes) 35% 26%

(2 )%

(41.9 )%

(3 )%

Contract manufacturing

(5,212)

Stock compensation expense

- 1,68

Amortization expense

- 1,03

Depreciation expense reduction - assets held for sale classification

- (3,2

Restructuring, strategic transaction and integration

Quality system and product-related remediation

- 9,98

Tax expense from valuation allowance*

Adjusted (Non-GAAP)**

$599,490 $219,58

(9,868)

(628)

12,179

(2,957)

9,222

0.37

(31,533)

32,572

(8,026)

24,546

0.99

(3,223)

790

(2,433)

(0.10)

(16,697)

16,697

(4,091)

12,606

0.51

9,980

(2,338)

7,642

0.31

6,402

0.26

$ 115,832

$ 22,663

$ -

$ 81,093

$ 57,299

$(14,790)

$ 42,509

$ 1.72

- 3

23)

- 8

Adjusted percent of total revenues (or percent of (loss) income before income taxes for benefit (provision) for income

taxes) 37% 19% 4% -% 14% 10% 25.8% 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 March 31, 2025. However, based on the

same assessment, including, predominantly, our being, 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.

(In thousands, except percentages and per share)

The Company's U.S. GAAP results for the three months ended March 31, 2024 included special items which impacted the U.S. GAAP measures as follows:

Reported (GAAP)

$566,655 $185,244

$ 157,657

$ 21,842

$ 16,105

$ 295 $(10,655) $(36,768)

$ (2,703)

$(39,471) $

(1.63)

Reported percent of total revenues (or percent of (loss) income before income taxes for benefit (provision) for

income taxes)

33%

28%

(2 )%

(6 )%

(7.4 )%

(7 )%

Contract manufacturing

(14,073)

Stock compensation expense

1,582

(9,563)

(453)

11,598

(2,784)

8,814

0.36

Amortization expense

(33,130)

33,130

(8,046)

25,084

1.03

Restructuring, strategic transaction and integration

(16,105)

16,105

(3,873)

12,232

0.50

Change in fair value of contingent earn-out

(295)

295

0.01

Quality system and product-related remediation

7,498

(1,803)

5,695

0.23

Asset

write-offs and similar charges

781

(187)

594

0.02

Tax expense from valuation allowance*

10,143

0.42

Earnings per share impact on net loss due to basic versus diluted weighted average shares

0.01

Adjusted

(Non-GAAP)* $552,582

$195,105

114,964

21,389

$ 58,752

$ 32,639

$ (9,253)

$ 23,386

0.96

Adjusted percent of total revenues (or percent of (loss) income before income taxes for benefit (provision) for income taxes)

35%

21%

11%

28.3%

* Amounts may not foot due to rounding

(In thousands)

March 31,

2025

2024

Net cash provided by operating activities

$ 51,327

45,791

Purchase of property, plant and equipment

(14,621)

(15,915)

Proceeds from sale of assets

507

Free cash flow

$ 36,748

$ 30,383

CONTACT:

ICU Medical, Inc.

Brian Bonnell, Chief Financial Officer (949) 366-2183

ICR, Inc.

John Mills, Partner (646) 277-1254

Source: ICU Medical, Inc.

Disclaimer

ICU Medical Inc. published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 22:55 UTC.