hae-20210703

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: July 3, 2021


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-14041

HAEMONETICS CORPORATION

(Exact name of registrant as specified in its charter)


Massachusetts		04-2882273
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

125 Summer Street
Boston,	Massachusetts	02110
(Address of principal executive offices)		(Zip Code)

(781) 848-7100

(Registrant’s telephone number, including area code)

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, $.01 par value per share

HAE

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

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. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.) Yes ☐No x

The number of shares of $0.01 par value common stock outstanding as of August 9, 2021: 51,029,618

HAEMONETICS CORPORATION

INDEX



			PAGE
PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

Unaudited Condensed Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income - Three Months Ended July 3, 2021 and June 27, 2020			3
Unaudited Condensed Consolidated Balance Sheet - July 3 , 202 1 and Consolidated Balance Sheet - April 3, 2021			4
Unaudited Condensed Consolidated Statements of Stockholders' Equity - Three Months Ended July 3, 2021 and June 27, 2020			5
Unaudited Condensed Consolidated Statements of Cash Flows - Three Months Ended July 3, 2021 and June 27, 2020			6
Notes to Unaudited Condensed Consolidated Financial Statements			7

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			22

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk			32

ITEM 4. Controls and Procedures			32

PART II. OTHER INFORMATION			33

ITEM 1. Legal Proceedings			33

ITEM 1A. Risk Factors			33

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds			33

ITEM 3. Defaults upon Senior Securities			34

ITEM 4. Mine Safety Disclosures			34

ITEM 5. Other Information			34

ITEM 6. Exhibits			35

SIGNATURES			36

ITEM 1. FINANCIAL STATEMENTS

HAEMONETICS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME

(Unaudited in thousands, except per share data)


	Three Months Ended
	July 3, 2021		June 27, 2020
Net revenues	$	228,528	$	195,577
Cost of goods sold	120,443		105,547
Gross profit	108,085		90,030
Operating expenses:
Research and development	12,701		7,750
Selling, general and administrative	91,218		62,302
Amortization of intangible assets	12,379		8,263
Gains on divestitures and sale of assets	(9,603)		—
Total operating expenses	106,695		78,315
Operating income	1,390		11,715
Interest and other expense, net	(4,398)		(3,735)
(Loss) income before provision (benefit) for income taxes	(3,008)		7,980
Provision (benefit) for income taxes	1,446		(2,547)
Net (loss) income	$	(4,454)	$	10,527

Net (loss) income per share - basic	$	(0.09)	$	0.21
Net (loss) income per share - diluted	$	(0.09)	$	0.21

Weighted average shares outstanding
Basic	50,939		50,418
Diluted	50,939		51,247

Comprehensive (loss) income	$	(4,007)	$	11,956

The accompanying notes are an integral part of these condensed consolidated financial statements.

HAEMONETICS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited in thousands, except share data)


	July 3, 2021		April 3, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	173,462	$	192,305
Accounts receivable, less allowance of $2,236 at July 3, 2021 and $2,226 at April 3, 2021	132,908		127,555
Inventories, net	326,500		322,614
Prepaid expenses and other current assets	51,498		51,072
Total current assets	684,368		693,546
Property, plant and equipment, net	214,782		217,559
Intangible assets, less accumulated amortization of $335,060 at July 3, 2021 and $320,640 at April 3, 2021	353,688		365,483
Goodwill	466,314		466,444
Deferred tax asset	6,197		6,009
Other long-term assets	68,838		70,882
Total assets	$	1,794,187	$	1,819,923
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:

SEC Form 10-Q filed by Haemonetics Corporation