Corporation Consolidated Statements of Operations (a) (unaudited) Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share data) 2001 2000 2001 2000 (b) Net sales $192.4 $204.6 $384.3 $401.7 Cost of goods sold 95.2 114.4 191.4 220.6 Gross profit 97.2 90.2 192.9 181.1 Selling, general and administrative expenses 52.7 59.4 106.5 111.8 Research and development expenses 13.5 14.3 26.6 27.4 Goodwill amortization 5.7 8.6 11.4 17.2 Disposition of assets and other non-recurring charges 83.0 300.5 83.0 300.5 Non-recurring spin-off expenses 0.0 17.0 0.0 18.4 Other operating income (4.4) (5.6) (8.3) (9.1) Operating loss (53.3) (304.0) (26.3) (285.1) Interest expense, net 10.9 6.4 16.4 13.7 Other expense, net 7.5 0.4 9.0 1.1 Loss before provision for income taxes (71.7) (310.8) (51.7) (299.9) Provision (benefit) for income taxes (16.0) (1.5) 10.2 1.3 Net loss ($55.7) ($309.3) ($41.5) ($301.2) used to calculate basic loss per share 58.8 58.2 58.8 58.2 Basic loss per share ($0.95) ($5.31) ($0.71) ($5.18) used to calculate diluted loss per share 58.8 58.2 58.8 58.2 Diluted loss per share ($0.95) ($5.31) ($0.71) ($5.18) used to calculate diluted earnings per share 61.0 59.3 60.7 58.9 Diluted earnings per share excluding non-recurring items $0.28 $0.20 $0.51 $0.36 Financial Ratios: Gross profit 50.5% 44.1% 50.2% 45.1% Selling, general and administrative expenses 27.4% 29.0% 27.7% 27.8% Research and development expenses 7.0% 7.0% 6.9% 6.8% Operating income (27.7%) (148.6%) (6.8%) (71.0%) Income before provision for income taxes (37.3%) (151.9%) (13.5%) (74.7%) Net income (29.0%) (151.2%) (10.8%) (75.0%) Effective tax rate 22.3% 0.5% 19.7% (0.4%) (a) Net income and earnings per share for the quarter ended March 31, 2001 exclude the cumulative effect of a change in accounting principle relating to the adoption of Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities, which resulted in an after-tax reduction in net income of $1.5 million, or $0.02 per diluted share. (b) Financial results prior to April 1, 2000 are pro forma.
Statements of Operations Reconciliation For the Three Months Ended June 30, 2001 2Q 2001 Non- 2Q 2001 As Recurring Recurring (in millions, except per share data) Reported Items Operations Net sales $192.4 $192.4 Cost of goods sold 95.2 95.2 Gross profit 97.2 97.2 Selling, general and administrative expenses 52.7 52.7 Research and development expenses 13.5 13.5 Goodwill amortization 5.7 5.7 Disposition of assets and other non-recurring charges 83.0 83.0 0.0 Other operating income (4.4) (4.4) Operating income (loss) (53.3) (83.0) 29.7 Interest expense, net 10.9 6.2 4.7 Other expense, net 7.5 6.5 1.0 Income (loss) before provision for income taxes (71.7) (95.7) 24.0 Provision (benefit) for income taxes (16.0) (23.0) 7.0 Net income (loss) ($55.7) ($72.7) $17.0 calculate basic earnings per share 58.8 58.8 Earnings (loss) per basic share ($0.95) $0.29 calculate diluted earnings per share 58.8 61.0 Earnings (loss) per diluted share ($0.95) $0.28 Operating Statistics Gross profit 50.5% 50.5% Selling, general and administrative expenses 27.4% 27.4% Research and development expenses 7.0% 7.0% Operating income (27.7%) 15.4% Income before provision for income taxes (37.3%) 12.5% Net income (29.0%) 8.8% Effective tax rate 22.3% 29.0%
Statements of Operations Reconciliation For the Six Months Ended June 30, 2001 (a) YTD 2001 Non- YTD 2001 As Recurring Recurring (in millions, except per share data) Reported Items Operations Net sales $384.3 $384.3 Cost of goods sold 191.4 191.4 Gross profit 192.9 192.9 Selling, general and administrative expenses 106.5 106.5 Research and development expenses 26.6 26.6 Goodwill amortization 11.4 11.4 Disposition of assets and other non-recurring charges 83.0 83.0 0.0 Other operating income (8.3) (8.3) Operating income (loss) (26.3) (83.0) 56.7 Interest expense, net 16.4 6.2 10.2 Other expense, net 9.0 6.5 2.5 Income (loss) before provision for income taxes (51.7) (95.7) 44.0 Provision (benefit) for income taxes 10.2 23.0 (12.8) Net income (loss) ($41.5) ($72.7) $31.2 calculate basic earnings per share 58.8 58.8 Earnings (loss) per basic share ($0.71) $0.53 calculate diluted earnings per share 58.8 60.7 Earnings (loss) per diluted share ($0.71) $0.51 Operating Statistics Gross profit 50.2% 50.2% Selling, general and administrative expenses 27.7% 27.7% Research and development expenses 6.9% 6.9% Operating income (6.8%) 14.8% Income before provision for income taxes (13.5%) 11.4% Net income (10.8%) 8.1% Effective tax rate 19.7% 29.0% (a) Net income and earnings per share for the quarter ended March 31, 2001 exclude the cumulative effect of a change in accounting principle relating to the adoption of Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities, which resulted in an after-tax reduction in net income of $1.5 million, or $0.02 per diluted share.
Corporation Net Sales by Region For the Period Ended June 30, 2001 (in millions) Q2 2001 YTD 2001 At Actual FX At Actual FX United States $123.2 $246.5 Europe 37.2 74.6 Japan 15.7 30.9 Rest of World 16.4 32.2 International 69.2 137.8 Total $192.4 $384.3
Net Sales by Product Line For the Period Ended June 30, 2001 (in millions) Year Over Year Over Year Over Year Change Q2 2001 Year Change Year Change At Constant FX At Actual FX At Actual FX At Constant FX Excluding Divestitures Cardiac Surgery $ 85.1 4.8% 8.2% 9.5% Critical Care 53.9 1.6% 6.6% 6.6% Vascular 12.7 (6.6%) (2.8%) (2.8%) Perfusion Products and Services 40.1 (26.9%) (24.1%) (5.5%) Other 0.6 NM NM NM Total $ 192.4 (6.0%) (2.4%) 3.6% YTD Change YTD 2001 YTD Change YTD Change At Constant FX At Actual FX At Actual FX At Constant FX Excluding Divestitures Cardiac Surgery $ 170.0 7.7% 10.6% 12.3% Critical Care 106.1 1.4% 5.7% 5.6% Vascular 25.8 (5.7%) (2.2%) (2.2%) Perfusion Products and Services 81.4 (25.8%) (23.7%) (5.1%) Other 1.1 NM NM NM Total $ 384.3 (4.3%) (1.4%) 4.9%