St. Jude Medical Reports Record First Quarter 2001 Sales and Earnings

Apr 18, 2001, 01:00 ET from St. Jude Medical, Inc.

    ST. PAUL, Minn., April 18 /PRNewswire/ --
     St. Jude Medical, Inc. (NYSE:   STJ) today released results for its first
 quarter ending March 31, 2001. The Company reported record net sales of
 $326 million, an increase of 10.5 % compared to the $295 million reported in
 the first quarter of 2000.  The stronger U.S. dollar reduced first quarter
 2001 sales by $5.7 million compared to the first quarter of 2000.
     (PHOTO:  http://www.newscom.com/cgi-bin/prnh/20000101/JUDELOGO )
     Earnings for the first quarter 2001 were $47.1 million, also a record for
 the Company, or $.53 per diluted share, and a $9.1 million or 24% increase
 over the $38.0 million or $.45 per diluted share in the first quarter of 2000,
 exclusive of special charges.  The Company's reported net earnings for the
 first quarter of 2000 were $15.8 million or $.19 per diluted share.
     Commenting on first quarter results, Terry L. Shepherd, CEO, said, "St.
 Jude Medical is off to a very good start for 2001.  First quarter results were
 good across the board, led by strong pacemaker, ICD and Angio-Seal sales.
 Total sales on a constant currency basis, were up over 12% from the comparable
 quarter of 2000. Our progress in improving gross margins continued while
 investments in R&D increased as well.  Another quarter of strong cash flow
 allowed us to reduce debt by over $40 million, further strengthening our
 financial position.
     "First quarter pacing sales increased over 6% to $165 million and met our
 expectations of growing at or slightly ahead of market rates.  Excluding
 currency impacts, pacing sales increased 8%.  We continue to experience strong
 clinician acceptance of our highly regarded Beat-by-Beat AutoCapture(TM)
 Pacing System, a technology only available from St. Jude Medical, and a
 central feature in all of our pacing product families.  The recent launch of
 the world's smallest dual-chamber pacemaker, the Integrity(TM) Micro DR, has
 been well received.  At 30% smaller than the smallest competitive device, it
 is ideal for pediatric and smaller patients," Shepherd continued.
     "Tachycardia sales of $46 million increased 44% over the first quarter of
 2000 and 24% over the previous quarter, as we completed the first full quarter
 rollout in the U.S. of the Photon(R) DR ICD with dual-chamber pacing.  We are
 very encouraged by customer acceptance of the Photon(R) and are on track with
 follow-on product developments to be introduced yet this year.
     "In addition, EP catheter sales increased 23% over the first quarter of
 2000 as the Livewire(TM) product line continued to expand.  No other cardiac
 rhythm management supplier has comparable EP catheter resources," Shepherd
 stated.
     "In our Cardiology and Vascular Access business area, sales were up 35%
 for the quarter.  Sales of Angio-Seal(TM) products for vascular closure were
 particularly strong in the quarter, up approximately 60% over the first
 quarter of 2000, benefiting from continued clinician acceptance of the
 Millennium Platform products.  Since acquiring Angio-Seal in 1999, we have
 released three new generations of products; each offering new features
 designed to increase reliability and ease of use.
     "Heart valve sales were $66 million, down from last year's first quarter,
 but an increase of 12% from the fourth quarter of 2000.  In the first quarter,
 we launched several new products to strengthen our mechanical valve line.
 International clinician enthusiasm for the Symmetry(TM) Bypass System Aortic
 Connector product continues to be very encouraging as we await FDA clearance
 of this new technology," Shepherd stated.
     "Other first quarter highlights included the release of the Supreme Spiral
 SC(TM) catheters for the diagnosis of paroxysmal atrial fibrillation and CE
 Marking for the Alliance(TM) Catheter Delivery System, a key component of our
 Genesis(TM) system designed to address heart failure and atrial fibrillation.
 Also, Daniel J. Starks was named President and Chief Operating Officer of St.
 Jude Medical, Inc. in January in a series of executive moves designed to
 strengthen our senior management team.
     "It's been a very active quarter and our outlook for the remainder of the
 year 2001 remains positive.  All of our businesses are well positioned to
 support the Company's financial expectations for the second quarter and 2001.
 We look forward to a complete review of our technology and product portfolios
 at our upcoming analyst meeting on May 1, which will be web-cast for
 interested investors," Shepherd concluded.
     Any statements made regarding the Company's anticipated revenues, expenses
 and earnings are forward-looking statements that are subject to risks and
 uncertainties, such as those described in the Financial Section of the
 Company's Annual Report to Shareholders for the fiscal year ended December 31,
 2000 (see pages 4-6).  Actual results may differ materially from anticipated
 results.
     St. Jude Medical's conference call will be live and archived on the
 following website:  http://www.videonewswire.com/STJUDE/041801 /.
     St. Jude Medical, Inc. ( http://www.sjm.com ) is dedicated to the design,
 manufacture and distribution of innovative medical devices of the highest
 quality, offering physicians, patients and payers unmatched clinical
 performance and demonstrated economic value.
 
 
                 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                    (In thousands, except per share amounts)
                                  (Unaudited)
 
                            Three Months Ended        Three Months Ended
                              March 31, 2001            March 31, 2000
                                               Before
                                               Special     Special    Reported
                                               Charges     Charges
     Net sales                    $326,065    $295,499                $295,499
     Cost of sales                 107,077     101,978                 101,978
     Gross profit                  218,988     193,521                 193,521
 
     SG&A expense                   113,621    103,299                 103,299
     R&D expense                     39,505     32,394                  32,394
     Special charges                                        26,101      26,101
     Operating profit                65,862     57,828     (26,101)     31,727
     Other expense                   (3,097)    (7,106)                 (7,106)
     Earnings (loss) before taxes    62,765     50,722     (26,101)     24,621
     Income tax expense              15,691     12,681      (3,888)      8,793
 
     Net earnings (loss)            $47,074    $38,041    ($22,213)    $15,828
 
     Net earnings (loss) per share
       Basic                          $0.55       $.45      ($0.27)       $.19
       Diluted                        $0.53       $.45      ($0.27)       $.19
 
     Basic shares outstanding        85,537     83,779      83,779      83,779
     Diluted shares outstanding      88,401     83,991      83,779      83,991
 
 
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                              (Data in Thousands)
 
                                       Mar. 31, 2001      Dec. 31, 2000
     Cash and marketable securities       $92,602            $107,862
     Accounts receivable, net             310,716             303,307
     Inventories                          227,298             222,238
     Property, plant & equipment, net     316,311             317,179
     Other assets                         570,517             582,130
     Total assets                      $1,517,444          $1,532,716
 
     Current liabilities                 $277,881            $297,367
     Long-term debt                       251,150             294,500
     Total equity                         988,413             940,849
     Total liabilities & equity        $1,517,444          $1,532,716
 
 

SOURCE St. Jude Medical, Inc.
    ST. PAUL, Minn., April 18 /PRNewswire/ --
     St. Jude Medical, Inc. (NYSE:   STJ) today released results for its first
 quarter ending March 31, 2001. The Company reported record net sales of
 $326 million, an increase of 10.5 % compared to the $295 million reported in
 the first quarter of 2000.  The stronger U.S. dollar reduced first quarter
 2001 sales by $5.7 million compared to the first quarter of 2000.
     (PHOTO:  http://www.newscom.com/cgi-bin/prnh/20000101/JUDELOGO )
     Earnings for the first quarter 2001 were $47.1 million, also a record for
 the Company, or $.53 per diluted share, and a $9.1 million or 24% increase
 over the $38.0 million or $.45 per diluted share in the first quarter of 2000,
 exclusive of special charges.  The Company's reported net earnings for the
 first quarter of 2000 were $15.8 million or $.19 per diluted share.
     Commenting on first quarter results, Terry L. Shepherd, CEO, said, "St.
 Jude Medical is off to a very good start for 2001.  First quarter results were
 good across the board, led by strong pacemaker, ICD and Angio-Seal sales.
 Total sales on a constant currency basis, were up over 12% from the comparable
 quarter of 2000. Our progress in improving gross margins continued while
 investments in R&D increased as well.  Another quarter of strong cash flow
 allowed us to reduce debt by over $40 million, further strengthening our
 financial position.
     "First quarter pacing sales increased over 6% to $165 million and met our
 expectations of growing at or slightly ahead of market rates.  Excluding
 currency impacts, pacing sales increased 8%.  We continue to experience strong
 clinician acceptance of our highly regarded Beat-by-Beat AutoCapture(TM)
 Pacing System, a technology only available from St. Jude Medical, and a
 central feature in all of our pacing product families.  The recent launch of
 the world's smallest dual-chamber pacemaker, the Integrity(TM) Micro DR, has
 been well received.  At 30% smaller than the smallest competitive device, it
 is ideal for pediatric and smaller patients," Shepherd continued.
     "Tachycardia sales of $46 million increased 44% over the first quarter of
 2000 and 24% over the previous quarter, as we completed the first full quarter
 rollout in the U.S. of the Photon(R) DR ICD with dual-chamber pacing.  We are
 very encouraged by customer acceptance of the Photon(R) and are on track with
 follow-on product developments to be introduced yet this year.
     "In addition, EP catheter sales increased 23% over the first quarter of
 2000 as the Livewire(TM) product line continued to expand.  No other cardiac
 rhythm management supplier has comparable EP catheter resources," Shepherd
 stated.
     "In our Cardiology and Vascular Access business area, sales were up 35%
 for the quarter.  Sales of Angio-Seal(TM) products for vascular closure were
 particularly strong in the quarter, up approximately 60% over the first
 quarter of 2000, benefiting from continued clinician acceptance of the
 Millennium Platform products.  Since acquiring Angio-Seal in 1999, we have
 released three new generations of products; each offering new features
 designed to increase reliability and ease of use.
     "Heart valve sales were $66 million, down from last year's first quarter,
 but an increase of 12% from the fourth quarter of 2000.  In the first quarter,
 we launched several new products to strengthen our mechanical valve line.
 International clinician enthusiasm for the Symmetry(TM) Bypass System Aortic
 Connector product continues to be very encouraging as we await FDA clearance
 of this new technology," Shepherd stated.
     "Other first quarter highlights included the release of the Supreme Spiral
 SC(TM) catheters for the diagnosis of paroxysmal atrial fibrillation and CE
 Marking for the Alliance(TM) Catheter Delivery System, a key component of our
 Genesis(TM) system designed to address heart failure and atrial fibrillation.
 Also, Daniel J. Starks was named President and Chief Operating Officer of St.
 Jude Medical, Inc. in January in a series of executive moves designed to
 strengthen our senior management team.
     "It's been a very active quarter and our outlook for the remainder of the
 year 2001 remains positive.  All of our businesses are well positioned to
 support the Company's financial expectations for the second quarter and 2001.
 We look forward to a complete review of our technology and product portfolios
 at our upcoming analyst meeting on May 1, which will be web-cast for
 interested investors," Shepherd concluded.
     Any statements made regarding the Company's anticipated revenues, expenses
 and earnings are forward-looking statements that are subject to risks and
 uncertainties, such as those described in the Financial Section of the
 Company's Annual Report to Shareholders for the fiscal year ended December 31,
 2000 (see pages 4-6).  Actual results may differ materially from anticipated
 results.
     St. Jude Medical's conference call will be live and archived on the
 following website:  http://www.videonewswire.com/STJUDE/041801 /.
     St. Jude Medical, Inc. ( http://www.sjm.com ) is dedicated to the design,
 manufacture and distribution of innovative medical devices of the highest
 quality, offering physicians, patients and payers unmatched clinical
 performance and demonstrated economic value.
 
 
                 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                    (In thousands, except per share amounts)
                                  (Unaudited)
 
                            Three Months Ended        Three Months Ended
                              March 31, 2001            March 31, 2000
                                               Before
                                               Special     Special    Reported
                                               Charges     Charges
     Net sales                    $326,065    $295,499                $295,499
     Cost of sales                 107,077     101,978                 101,978
     Gross profit                  218,988     193,521                 193,521
 
     SG&A expense                   113,621    103,299                 103,299
     R&D expense                     39,505     32,394                  32,394
     Special charges                                        26,101      26,101
     Operating profit                65,862     57,828     (26,101)     31,727
     Other expense                   (3,097)    (7,106)                 (7,106)
     Earnings (loss) before taxes    62,765     50,722     (26,101)     24,621
     Income tax expense              15,691     12,681      (3,888)      8,793
 
     Net earnings (loss)            $47,074    $38,041    ($22,213)    $15,828
 
     Net earnings (loss) per share
       Basic                          $0.55       $.45      ($0.27)       $.19
       Diluted                        $0.53       $.45      ($0.27)       $.19
 
     Basic shares outstanding        85,537     83,779      83,779      83,779
     Diluted shares outstanding      88,401     83,991      83,779      83,991
 
 
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                              (Data in Thousands)
 
                                       Mar. 31, 2001      Dec. 31, 2000
     Cash and marketable securities       $92,602            $107,862
     Accounts receivable, net             310,716             303,307
     Inventories                          227,298             222,238
     Property, plant & equipment, net     316,311             317,179
     Other assets                         570,517             582,130
     Total assets                      $1,517,444          $1,532,716
 
     Current liabilities                 $277,881            $297,367
     Long-term debt                       251,150             294,500
     Total equity                         988,413             940,849
     Total liabilities & equity        $1,517,444          $1,532,716
 
 SOURCE  St. Jude Medical, Inc.