Originally Published MX January/February
2002
COVER STORY
On the Money
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American Medical
Systems (AMS; Minneapolis) is a market leader in medical devices for the treatment
of incontinence, erectile dysfunction, and prostate disease, and the company’s
balance sheet reflects as much. For the nine months ended September 29, 2001,
AMS’s net sales rose 15% to $84.6 million. Net income totaled $4.9 million,
versus a loss of $904,000 in the same period in 2000. Results reflect higher
sales of incontinence, erectile dysfunction, and prostate disease products;
improved gross margins; and a decrease in information technology, legal, and
interest expenses.
AMS reported net sales of $28.6 million for the third quarter of 2001, a $5.1
million, or 22%, increase over sales of $23.5 million in the same quarter of
2000. Net income in the third quarter of 2001 was $2 million, or $0.06 per share
on a fully diluted basis, a $2.3 million increase from the $0.3 million loss
in the same quarter of 2000. Third-quarter earnings before interest, taxes,
and amortization (EBITA) increased by 52% compared with the same quarter of
2000, while the company’s EBITA margin expanded to 23% of sales, compared
with 18% in the same quarter of 2000. The company booked a $1 million charge
to account for certain transition and reorganization decisions made in the third
quarter. Without this charge, the company’s EBITA margin would have been
26% of sales.
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Revenue
split among the major AMS products. Sales from the company’s product
pipeline totaled $100.3 million in 2000.
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Such a performance
is extraordinary, given the economic conditions resulting from the dot-com crash
and the tragic events of September 11.
Says Douglas W. Kohrs, president and CEO of AMS, "We are pleased with our record-setting third-quarter performance, which is our fourth consecutive quarter of sales and earnings growth—every quarter since our IPO. This 22% growth, in what is traditionally our weakest quarter, is an important milestone for the company and confirms the success of the new product-development programs we initiated two years ago."
Copyright ©2002 MX
