Haemonetics Corporation (NYSE:HAE) Q3 2015 Earnings Conference Call - Final Transcript

Jan 29, 2015 • 10:00 am ET


Haemonetics Corporation (NYSE:HAE) Q3 2015 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen. And welcome to the Haemonetics Corporation Q3 2015 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will have a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded.I would now like to turn the call over to Mr. Gerry Gould, Vice President of Investor Relations. Please go ahead.

Gerry Gould

Good morning. Thank you for joining Haemonetics third quarter fiscal 2015 conference call and webcast. I am joined by Brian Concannon, President and CEO; Chris Lindop, CFO and Executive Vice President of Business Development.

(Forward-Looking Cautionary Statements)

On today's call, Brian will review the highlights of the quarter and the outlook for our performance going forward. Chris will cover third quarter and year-to-date operating performance, our guidance for fiscal 2015 and our outlook for fiscal 2016. Then Brian will close with a review of our strategic initiatives and some summary comments.

Before I turn the call over to Brian, I would like to mention the treatment in our adjusted results of certain items, which by their nature and size affect the comparability of our financial results. Consistent with our past practice, we have excluded certain costs from the adjusted financial results we'll talk about today. In the third and year-to-date periods of fiscal 2014 and 2015, we have excluded pre-tax transformation, integration and restructuring costs associated with our Value Creation and Capture and other productivity initiatives.

Additionally, the earnings information discussed for all periods excludes deal-related amortization expense. Further details of excluded amounts, including comparisons with the applicable periods of fiscal 2014 are provided in our Form 8-K and have been posted to our Investor Relations website. Our press release and website also include a complete P&L and balance sheet, as well as reconciliation of our GAAP and adjusted results.

With that, I will turn the call over to Brian.

Brian Concannon

Thank you, Gerry, and good morning everyone.

Brian Concannon

This morning we reported results for our third quarter of fiscal 2015 in-line with our expectations. With three quarters now complete in this year of transition, you can clearly see that we're building momentum towards return to growth in fiscal 2016. We saw continued progress and identified growth drivers, we made key new product advances and the headwinds represented by the decline of our whole blood business continue to be consistent with expected trends. This was another solid quarter.

Adjusted earnings per share finished at $0.53 in the third quarter and a $1.38 for the first nine months. We're reaffirming revenue earnings per share in free cash flow guidance for fiscal 2015 and we remain confident that fiscal 2016 will bring a return to mid single digit revenue growth. Like most companies with significant portions of their revenue outside the United States, we've seen currency headwinds increased over the last several months.

Currency now represents greater than 500 basis point headwinds to our expected operating income growth rates of fiscal 2016. Therefore, we're