Crossy,
I know Shimadzu makes some analytical equipment, mass specs, front end equipment, but I am not a "field level" player in trickle. They haven't been at the lab automation shows that I've gone to. So I know nada; maybe somebody else knows more.
Meanwhile, another mass spec player -- among many other things -- reports (wacky formatting is theirs, sorry):
>>TORONTO, March 7 /PRNewswire-FirstCall/ - MDS Inc. (TSE: MDS, NYSE: MDZ) today reported strong performance for the first quarter ended January 31, 2002. Revenues increased to $418 million. Earnings per share from core businesses in the Life Sciences and Health segments were $0.19 compared to $0.17 for the first quarter of fiscal 2001. The company generated $37 million in cash flow from operations.
``I am pleased with the performance across our businesses this quarter. Our core businesses are performing as anticipated and we expect that this positive trend will continue throughout 2002.'' said John Rogers, MDS President and CEO. ``Our Life Sciences business in particular delivered strong performance in the quarter, growing operating income by 35% over the same period last year.'' he added.
Operating results by reportable segment for the quarter were (amounts in $Cdn millions):
First Quarter 2002 2001
Operating Operating Operating Operating
Revenues Income Margin% Revenues Income Margin%
--------------------------------------------------------------------------------
Life Sciences 240 42 18 225 31 14
--------------------------------------------------------------------------------
Health 177 11 6 168 18 11
--------------------------------------------------------------------------------
Proteomics 1 (13) n/m 1 (10) n/m
--------------------------------------------------------------------------------
418 40 10 394 39 10
--------------------------------------------------------------------------------
Earnings per share after deducting operating losses for MDS Proteomics were $0.13 for 2002.
Life Sciences Segment
For the quarter, revenues in the Life Sciences segment grew to $240 million from $225 million for the same period in 2001, an increase of 7%. Operating income increased in the first quarter from $31 million in 2001 to $42 million for the first quarter of 2002.
Performance in the Life Science segment was buoyed by strong sales of the API 4000 in the analytical instrument business. Revenues in the Pharma Services business grew as well, up 13% over the same period last year. Our medical isotopes business performed well, however the division continued to face supply constraints in the Ion Technologies business. We have taken steps to resolve this supply issue by the end of 2003.
During the quarter a number of initiatives were announced including:
- An exclusive clinical research partnership between Sankyo
Pharmaceutical and MDS Pharma Services.
- A strategic alliance with Iconix Pharmaceuticals to develop Drug
Matrix, a chemogenomics database.
- The Therapy Systems launch of Oncentra, a cancer treatment planning
workstation.
Health Segment
In the Health segment, revenues were $177 million compared to $168 in the prior year. Operating income for this segment was $11 million compared to $18 million in 2001. The 2001 results included a non-recurring corporate cap adjustment in the Ontario lab market.
In the quarter, MDS Laboratory Services introduced a new specialty diagnostic test -- sirolumus, which is useful in monitoring organ rejection with kidney transplant patients. Proteomics Segment
In the Proteomics segment, operating losses were $13 million dollars in a quarter that focused on furthering the building of relationships with potential pharma and biotech partners. During the quarter, MDS Proteomics officially opened their state of the art proteomics facility in Toronto and published their groundbreaking yeast study in Nature Magazine.
Outlook
``The first quarter represents a solid start to 2002. I expect that this positive trend will continue throughout the remainder of 2002 as we begin to see the return on our efforts and investments of 2000 and 2001,'' added MDS President and CEO, John Rogers.
MDS will hold its Annual General Shareholder Meeting at 4:00 PM EST today at the Metro Toronto Convention Centre, Constitution Hall, Rooms 106 and 107, lower level, 255 Front Street, Toronto, Ontario Canada. This meeting will also be broadcast live on the Internet at www.mdsintl.com at 4:00 PM EST.
MDS will be holding a conference call today at 10:00 am. This call will be webcast live at www.mdsintl.com and will also be available in archived format at mdsintl.com after the call.
MDS Inc. (TSE: MDS - news; NYSE: MDZ - news) is an international health and life sciences company. In many of its products and services, it is among the largest and most respected companies in the world. MDS's focus is on advancing health through science. It does this by providing: laboratory testing, imaging agents for nuclear medicine testing, sterilization systems for medical and consumer products, research services to speed discovery and development of new drugs, therapy systems for planning and delivery of cancer treatment, analytical instruments to assist in the development of new drugs, and medical/surgical supplies. MDS employs more than 10,000 highly skilled people at its global operations on five continents. Detailed information about the company is available at the MDS Web site at www.mdsintl.com or by calling
1-888-MDS-7222, 24 hours a day.
This document contains forward-looking statements. Some forward looking
statements may be identified by words like ``expects'', ``anticipates'',
``plans'', ``intends'', ``indicates'' or similar expressions. The statements
are not a guarantee of future performance and are inherently subject to
risks and uncertainties. The Company's actual results could differ
materially from those currently anticipated due to a number of factors,
including, but not limited to, successful integration of structural
changes, including restructuring plans, acquisitions, technical or
manufacturing or distribution issues, the competitive environment for the
Company's products, the degree of market penetration of the Company's
products, and other factors set forth in reports and other documents
filed by the Company with Canadian and U.S. securities regulatory
authorities from time to time.
MDS INC.
Consolidated Statements of Income
(millions of CDN dollars)
Three months ended
January 31
--------------------------------------------------------------------------------
2002 2001
--------------------------------------------------------------------------------
Net revenues $ 418 $ 394
Direct costs (278) (258)
Depreciation and amortization (21) (18)
Other operating costs (82) (80)
Equity earnings and investment gains 3 1
---------
Operating income 40 39
Gain on issue of shares by MDS Proteomics - 36
--------- 40 75
Interest expense - Long term (4) (5)
- Other - (1)
Dividend and interest income 2 4
Minority interest - (1)
--------- ---------
Income before income taxes 38 72
Income taxes (20) (15)
--------- ---------
Income before amortization of goodwill 18 57
Amortization of goodwill (net of tax) - (8)
--------- ---------
Net Income 18 49
--------- ---------
--------- ---------
Earnings per share (note 3)
Basic $ 0.13 $ 0.41
--------- ---------
--------- ---------
Fully diluted $ 0.13 $ 0.40
--------- ---------
--------- ---------
Consolidated Statements of Retained Earnings
(millions of CDN dollars)
Three months ended
January 31
-------------------
2002 2001
-------------------------------------------------------------------------
Retained earnings, beginning of period $ 457 $ 405
Net income 18 49
Repurchase of shares and options (1) (2)
--------- ---------
Retained earnings, end of period $ 474 $ 452
--------- ---------
--------- ---------
MDS INC.
Consolidated Statements of Financial Position
As at January 31 with comparatives at October 31
(millions of CDN dollars)
2002 2001
--------- ---------
Assets
Current
Cash and short-term investments $ 208 $ 183
Accounts receivable 288 299
Inventories 163 162
Income taxes recoverable 7 8
Prepaid expenses 26 24
Future tax assets 6 5
--------- ---------
698 681
Capital assets 664 661
Future tax assets 75 72
Long-term investments and other (note 2) 228 192
Goodwill and other intangibles 795 796
--------- ---------
Total assets $ 2,460 $ 2,402
--------- ---------
--------- ---------
Liabilities and Shareholders' Equity
Current liabilities
Bank indebtedness $ 13 $ 12
Accounts payable and accrued liabilities 296 320
Deferred income 89 89
Income taxes payable 30 22
Current portion of long-term debt 12 17
--------- ---------
440 460
Long-term debt 607 536
Deferred income and other 77 81
Future tax liabilities 22 21
Minority interest 58 61
--------- ---------
1,204 1,159
--------- ---------
Shareholders' Equity
Share Capital (note 3) 790 789
Retained earnings 474 457
Cumulative translation adjustment (8) (3)
--------- ---------
1,256 1,243
--------- ---------
Total liabilities and shareholders' equity $ 2,460 $ 2,402
--------- ---------
--------- ---------
MDS INC.
Consolidated Statements of Cash Flows
(millions of CDN dollars)
Three months ended
January 31
-------------------
2002 2001
-------------------------------------------------------------------------
Operating Activities
Net income $ 18 $ 49
Add (deduct) items not affecting cash:
Items not affecting current cash flow (note 4) 19 (13)
--------- ---------
Cash flow from operations 37 36
Changes in non-cash working capital balances
relating to operations (note 4) (10) (19)
--------- ---------
27 17
--------- ---------
Investing Activities
Acquisitions - (8)
Purchase of capital assets (25) (31)
Other (39) 5
--------- ---------
(64) (34)
--------- ---------
Financing Activities
Long-term debt issued 65 18
Long-term debt repayments - (127)
Increase (decrease) in deferred income and other (4) (4)
Issuance of shares 2 2
Repurchase of shares and options (1) (3)
Issuance of shares of subsidiary for cash - 15
Minority interest distributions (3) (3)
Cash effects of translation of foreign subsidiaries 2 1
--------- ---------
61 (101)
--------- ---------
Increase (decrease) in cash during the period 24 (118)
Cash position, beginning of period 171 297
--------- ---------
Cash position, end of period $ 195 $ 179
--------- ---------
--------- ---------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All tabular amounts in millions of Canadian dollars, except where noted)
January 31, 2002
1. ACCOUNTING POLICIES
These financial statement have been prepared on a basis consistent
with the company's annual financial statements for the year ended
October 31, 2001 (except as noted below), and should be read in
conjunction with the accounting policies and other disclosures in
those annual financial statements. These financial statements do not
include all of the disclosures required by generally accepted
accounting principles applicable to annual financial statements.
Effective November 1, 2001, the Company adopted the requirements of
CICA Handbook section 3062, "Goodwill and Other Intangible Assets".
Under the new standard, goodwill and intangible assets with
indefinite useful lives are no longer amortized but are subject to an
impairment review annually or more frequently if deemed appropriate.
As of the adoption date, the Company has substantially completed its
impairment testing on the balance of goodwill and intangible assets.
The Company has determined that it has no intangible assets of
indefinite life. Based on the testing completed at the time of
preparation of these interim consolidated financial statements, no
impairment losses are expected.
Effective November 1, 2001, the Company adopted CICA Handbook section
3500, "Earnings per Share", which requires the use of the treasury
method to calculate diluted earnings per share. The requirements of
section 3500 were adopted retroactively and fully diluted EPS figures
for prior years were restated. As a result, the Company's diluted EPS
decreased by $0.01 for the three months ended January 31, 2001.
2. LONG-TERM INVESTMENTS
Operating income for the period includes $2 million (2001 - $1) as
the Company's share of earnings of significantly influenced companies
and partnerships.
3. EARNINGS PER SHARE
Basic earnings per share have been calculated using the weighted
average number of Common shares outstanding during the period. The
weighted average number of shares outstanding for the quarter ended
January 31 was 139.8 million basic and 145.5 million fully diluted
(2001 - 139.5 and 143.3).
For fiscal 2001, earnings per share after goodwill amortization were
$0.35 (fully diluted -$0.34).
4. SUPPLEMENTARY CASH FLOW INFORMATION
Non-cash flow items affecting net income comprise:
January 31
---------------------------------------------------------------------
2002 2001
$ $
---------------------------------------------------------------------
Depreciation and amortization 21 18
Amortization of goodwill - 8
Minority interest - 1
Future income taxes (2) (4)
Gain on issuance of shares by a subsidiary - (36)
---------------------------------------------------------------------
19 (13)
---------------------------------------------------------------------
---------------------------------------------------------------------
Changes in non-cash working capital balances relating to operations
include:
January 31
---------------------------------------------------------------------
2002 2001
$ $
---------------------------------------------------------------------
Accounts receivable 11 (16)
Inventories (1) (2)
Accounts payable and deferred income (24) (2)
Income taxes 9 6
Foreign exchange and other (5) (5)
---------------------------------------------------------------------
(10) (19)
---------------------------------------------------------------------
---------------------------------------------------------------------
5. SEGMENTED INFORMATION
January 31, 2002
---------------------------------------
Life Pro-
Sciences Health teomics Total
---------------------------------------
Net revenues 240 177 1 418
Operating income 42 11 (13) 40
Revenues by products
and services
Medical isotopes 78
Analytical equipment 46
Pharmaceutical research
services 116
Clinical laboratory services 122
Distribution and other 55
Proteomics 1
Total assets at Jan 31 1,829 454 177 2,460
January 31, 2001
---------------------------------------
Life Pro-
Sciences Health teomics Total
---------------------------------------
Net revenues 225 168 1 394
Operating income 31 18 (10) 39
Revenues by products
and services
Medical isotopes 84
Analytical equipment 38
Pharmaceutical research
services 103
Clinical laboratory services 115
Distribution and other 53
Proteomics 1
Total assets at Jan 31 1,778 453 171 2,402
6. FIGURES
Certain figures for the previous period have been reclassified to
conform with the current period's financial statement presentation.<<
Cheers, Tuck |
