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<TYPE>EX-99.1
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<DESCRIPTION>EXHIBIT 99.1
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Exhibit 99.1
ZOLL Medical Corporation Announces Record Annual Results
Record Revenues and Profits for the Year
CHELMSFORD, Mass.--(BUSINESS WIRE)--Nov. 15, 2007--ZOLL Medical
Corporation (Nasdaq GS: ZOLL), a manufacturer of resuscitation devices
and software solutions, today announced that fiscal 2007 revenues
increased 21% to $309,451,000, compared to fiscal 2006 revenues of
$255,633,000. Net income for the year increased 50% to $16,662,000,
compared to $11,140,000 in the prior year. Diluted earnings per share
increased 42% to $0.81, compared to $0.57 in the prior year. Share and
per share data reflect a 2-for-1 stock split which became effective on
February 20, 2007. Backlog was approximately $24.3 million at the end
of the fiscal year, which includes approximately $7.5 million related
to the recent order from the State of California.
Annual sales to the North American market increased by 19% to
$237.4 million, compared to $199.1 million for the prior year. Sales
to the North American hospital market increased 9% to $85.3 million,
compared to $78.1 million last year. Excluding military sales, North
American hospital sales increased 26% from $58.3 million to $73.4
million. Military sales were $11.9 million, compared to $19.8 million
in the prior year period. Sales to the North American pre-hospital
market increased 29% to $131.2 million, compared to $101.7 million in
the prior year. North American pre-hospital results include the
results of ZOLL Lifecor, whose assets were acquired in April 2006.
International revenues increased by 27% to $72.1 million, compared to
$56.5 million last year. AutoPulse(R) sales in all markets increased
47% to $14.7 million for the year, compared to $10.0 million in the
prior year.
Fourth-quarter revenues for fiscal year 2007 increased 25% to
$92.8 million, compared to $74.2 million in the fourth quarter of last
year. Net income increased 26% to $6.8 million, compared to $5.4
million in the prior-year period, and diluted earnings per share
increased 22% to $0.33 per share, compared to $0.27 in the fourth
quarter of last year.
Fourth quarter sales to the North American market increased 25% to
$74.1 million, compared to $59.2 million in the fourth quarter of
2006. Sales to the North American hospital market increased 45% to
$30.8 million, compared to $21.2 million in the fourth quarter of last
year. Sales to the military were $6.7 million, compared to $4.8
million in the prior year. Sales to the North American pre-hospital
market increased 15% to $38.0 million, compared to the same period
last year. International sales increased by 25% to $18.7 million,
compared to $15.0 million in the fourth quarter last year. Total
AutoPulse shipments to all markets increased by 48% to $5.0 million,
compared to $3.4 million in the fourth quarter of the prior year.
Richard A. Packer, President and Chief Executive Officer of ZOLL,
commented, "We completed a very strong Fiscal Year 2007 with an
outstanding fourth quarter. Sales growth exceeded 25% in every part of
our business, except for the military. Success was achieved throughout
the world, with International sales continuing to exceed expectations.
All products: professional defibs, AEDs, AutoPulse and data management
software grew strongly throughout the year. At the bottom line we also
made significant progress, achieving record profits. We continue to
leverage previous investments, and our profitability continues to
expand."
Commenting further on the full year, Mr. Packer stated, "Our
success in the International market was driven by increased
professional defibrillator sales. The growth was primarily a function
of the continued success of our M Series(R) product, with the R
Series(TM) and E Series(R) just starting to get traction in this
market. We gained momentum in the latter part of the year in the North
American Hospital market, which we attribute to the compelling new
features of the R Series product and the hospitals' growing focus on
CPR. More than one-third of professional hospital defibrillator orders
in the second half of fiscal 2007 were for the R Series. We are more
than satisfied with this ramp-up of the R Series. Gains in the
pre-hospital market were largely driven by increased volume of our
AEDs, data management products and a full year of the LifeVest
product."
With respect to specific products, Mr. Packer noted, "AutoPulse
sales increased 48% for the quarter and similarly for the year. Both
the International and North American hospital markets' acceptance of
this product accelerated this year with sales more than doubling in
each market. We believe the outlook for the AutoPulse remains strong.
Likewise, AED sales throughout the company continued to accelerate,
with a 51% growth rate this past quarter. Clearly, we were aided by
our largest competitor's inability to ship product in the U.S. for a
significant part of the year. However, the growth of our business goes
well beyond this effect, and is just a small part of why we have
achieved both higher-than-expected results and a very strong backlog."
"In another exciting development during the fourth quarter," Mr.
Packer added, "we purchased the assets of a catheter-based hypothermia
company which was ceasing operation. As a result of the continued
strength in our business, we felt we could seize this opportunity to
build on our vision of a broader resuscitation related product
portfolio. We believe the company had the best technology in the
emerging therapeutic hypothermia market, and an extensive intellectual
property portfolio. Therapeutic hypothermia for post-resuscitation
care has been on our roadmap for a number of years, and we view this
modest $5.8 million investment as an incremental step in strengthening
our resuscitation strategy."
Mr. Packer concluded, "Our annual and fourth-quarter results
exceeded our expectations. We ended the year with a record backlog of
approximately $24 million. We believe the strength of our product
offerings will drive continued revenue growth in fiscal 2008. We
expect to continue to grow our bottom line at a healthy rate while at
the same time making incremental investments in new product areas that
will boost longer term growth rates."
ZOLL will host a conference call on Thursday, November 15, 2007 at
10:30 a.m. EST to discuss its fourth quarter financial results. This
conference call will be accessible on the Company's home page at
www.zoll.com. Recorded replays of this conference call will be
available on the web page beginning later that day.
About ZOLL Medical Corporation
ZOLL Medical Corporation is committed to developing technologies
that help advance the practice of resuscitation. With products for
pacing, defibrillation, circulation, ventilation, and fluid
resuscitation, ZOLL provides a comprehensive set of technologies that
help clinicians, EMS professionals, and lay rescuers resuscitate
sudden cardiac arrest or trauma victims. ZOLL also designs and markets
software that automates the documentation and management of both
clinical and non-clinical information.
ZOLL markets and sells its products in more than 140 countries.
The company has direct operations, distributor networks, and business
partners throughout the U.S., Canada, Latin America, Europe, the
Middle East, Asia, and Australia. For more information, visit
www.zoll.com or call +1 978-421-9655.
Certain statements contained in this press release, including
statements regarding the anticipated development of the Company's
business, our belief regarding revenues related to AutoPulse sales,
and other statements contained herein regarding matters that are not
historical facts, are "forward-looking" statements (as defined in the
Private Securities Litigation Reform Act of 1995). Because such
statements are subject to risks and uncertainties, actual results may
differ materially from those expressed or implied by such
forward-looking statements. Factors that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements include, but are not limited to, those
factors discussed in the section entitled "Risk Factors" in the
Company's Quarterly Report on Form 10-Q filed with the SEC on August
10, 2007. You should not place undue reliance on the forward-looking
statements in this press release, and the Company disavows any
obligation to update or supplement those statements in the event of
any changes in the facts, circumstances, or expectations that underlie
those statements.
Copyright (C) 2007 ZOLL Medical Corporation. All rights reserved.
269 Mill Road, Chelmsford, MA 01824-4105. AutoPulse, M Series, E
Series, Lifecor and ZOLL are registered trademarks of ZOLL Medical
Corporation. R Series is a trademark of ZOLL Medical Corporation.
ZOLL MEDICAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, October 1,
2007 2006
-----------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 37,631 $ 42,831
Short-term investments 19,767 20,548
Accounts receivable, net 78,086 59,078
Inventory, net 57,929 37,119
Prepaid expenses and other current
assets 11,809 9,010
-------------- -------------
Total current assets 205,222 168,586
Property and equipment, net 32,504 26,655
Other assets, net 81,712 56,245
-------------- -------------
$ 319,438 $ 251,486
============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 21,860 $ 13,745
Accrued expenses and other liabilities 61,792 42,095
-------------- -------------
Total current liabilities 83,652 55,840
Total stockholders' equity 235,786 195,646
-------------- -------------
$ 319,438 $ 251,486
============== =============
ZOLL MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
September 30, October 1, September 30, October 1,
2007 2006 2007 2006
-------------------------------------------------
Net sales $ 92,785 $ 74,178 $ 309,451 $ 255,633
Cost of goods sold 41,623 32,653 140,664 116,399
------------- ---------- ------------- ----------
Gross profit 51,162 41,525 168,787 139,234
Expenses:
Selling and
marketing 26,243 21,194 91,855 78,366
General and
administrative 6,829 6,165 26,203 22,417
Research and
development 8,202 6,599 28,686 23,394
------------- ---------- ------------- ----------
Total expenses 41,274 33,958 146,744 124,177
Income from
operations 9,888 7,567 22,043 15,057
Other income 778 735 3,591 2,082
------------- ---------- ------------- ----------
Income before taxes 10,666 8,302 25,634 17,139
Tax expense 3,841 2,906 8,972 5,999
------------- ---------- ------------- ----------
Net income $ 6,825 $ 5,396 $ 16,662 $ 11,140
============= ========== ============= ==========
Earnings per share:
Basic $ 0.33 $ 0.28 $ 0.82 $ 0.58
============= ========== ============= ==========
Diluted $ 0.33 $ 0.27 $ 0.81 $ 0.57
============= ========== ============= ==========
Weighted average
common shares:
Basic 20,463 19,362 20,208 19,286
Diluted 20,860 19,658 20,678 19,442
Certain prior period amounts have been reclassified to conform to the
current period presentation with no impact on either net income or
earnings per share.
CONTACT: ZOLL Medical Corporation
A. Ernest Whiton, +1 978-421-9655
Chief Financial Officer
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