SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
Date of Report - May 23, 1996
MEDTRONIC, INC.
(Exact name of registrant as specified in its charter)
Minnesota 1-7707 41-0793183
(State or other Jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
7000 Central Avenue N.E.
Minneapolis, Minnesota 55432-3576
(Address of principal executive offices and zip code)
(612) 574-4000
(Registrant's telephone number, including area code)
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ITEM 5. Other Events
On May 23, 1996, the registrant issued a press release announcing its
financial results for the fiscal year ended April 30, 1996. The full text of the
press release is set forth in Exhibit 99 attached hereto and is incorporated in
this report as if fully set forth herein.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MEDTRONIC, INC.
(Registrant)
Date: May 28, 1996 By: /s/ Robert L. Ryan
Robert L. Ryan, Senior
Vice President and Chief
Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
99 Press release dated May 23, 1996
Exhibit 99
[Medtronic Logo] NEWS RELEASE
Medtronic, Inc. Contact:
7000 Central Avenue, N.E.
Minneapolis, Minnesota 55432-3576
Telephone: (612) 574-4000 Dale Beumer
Investor Relations
612/574-3038
Dick Reid
Public Relations
612/574-3052
FOR IMMEDIATE RELEASE
MEDTRONIC POSTS 49 PERCENT INCREASE IN NET EARNINGS
ON 24.5 PERCENT GROWTH IN REVENUES FOR FISCAL 1996
MINNEAPOLIS, MN, May 23, 1996 -- Medtronic, Inc. (NYSE: MDT), today
reported net earnings of $437.8 million for the year ended April 30, 1996, on
revenues of $2,169.1 million. This reflects a 49 percent increase in net
earnings from last year's $294.0 million and a 24.5 percent increase in revenues
from last year's $1.7 billion.
On a constant currency basis, fiscal 1996 revenues increased 23.2 percent.
Earnings per share were $1.88, a 47 percent increase over the $1.28 recorded for
fiscal 1995.
Fiscal 1996 marked Medtronic's eleventh consecutive year of increases in
both revenues and earnings, which have been uninterrupted by one-time writeoffs.
Since 1985, Medtronic's revenues and net earnings per share have increased at
compound annual growth rates of 17.4 percent and 26.2 percent, respectively.
Net earnings in the fourth quarter were $125.4 million, or $.54 share, an
increase of 43 percent over earnings in the comparable period a year ago. It was
the eighth consecutive quarter in which Medtronic earnings grew by more than 20
percent. Quarterly revenues reached a record $596.1 million, an increase of 15.4
percent. Sales were up 18 percent after adjusting for the negative effects of
foreign currency translation which reduced revenues by $13.8 million.
"Medtronic had an outstanding year," said William W. George, president and
chief executive officer. Noting that the company had gone from $1 billion in
revenue five years ago to surpass the $2 billion milestone in fiscal 1996,
George credited "advanced, market-leading products and rapid acceptance by
physicians seeking the best and most cost-effective therapeutic solutions for
their patients."
Pacemaker product lines, led by Thera(R) i-series(TM) devices and
CapSure(R) Z and CapSureFix(R) pacing leads, turned in their eighth consecutive
quarter of double-digit percentage unit growth driven by broadening medical
indications for pacemaker use and increasing market share.
Three Medtronic business areas -- tachyarrhythmia, vascular, and
neurological -- reported growth rates of nearly 40 percent in the quarter. On a
constant currency basis, revenues from implantable defibrillators and related
devices were up 39 percent as sales of the Jewel(R) Active Can(TM) models
continued strong. Interventional vascular sales rose 38 percent, primarily on
momentum of the Medtronic Wiktor(R) coronary stent in Europe and Japan. In the
Neurological sector, revenues increased 37 percent. Medtronic PS Medical and
Medtronic Micro Interventional Systems, both acquired in November, 1995, made
revenue contributions along with the Itrel(R) 3 spinal cord stimulation system
and the SynchroMed(R) implantable drug infusion system which continued to show
solid sales gains. Sales in the Cardiac Surgery sector were highlighted by
strong performance in the tissue heart valve and cannulae product lines but
cardiopulmonary product sales and overall sector revenues were flat.
Medtronic said that its acquisitions of Synectics Medical AB and AneuRx,
Inc., had been completed and that it expects to complete the acquisition of
InStent Inc. in early July. One-time costs related to acquisition activities
were recognized in the quarter.
"These innovative organizations add new growth platforms that will play an
important role in fueling Medtronic's progress over the next decade," George
said.
Medtronic, Inc. headquartered in Minneapolis, is the world's leading
medical technology company, specializing in implantable and invasive therapies.
Its Internet address is http://www.medtronic.com.
- tabulation follows -
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MEDTRONIC, INC.
CONSOLIDATED STATEMENT OF EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
Three months ended Fiscal year ended
-------------------------------------------------- --------------------------------------------
April 30, April 30, April 30, April 30,
1996 1995 1996 1995
------------------- ------------------- ---------------- -----------------
(in thousands, except per share data)
<S> <C> <C> <C> <C>
Net sales $ 596,103 $ 516,722 $ 2,169,114 $ 1,742,392
Costs and expenses:
Cost of products sold 149,873 156,735 589,710 540,080
Research and development
expense 68,814 55,460 236,684 191,351
Selling, general, and
administrative expense 192,631 176,148 695,550 574,624
Interest expense 2,239 2,242 7,960 9,007
Interest income (8,910) (5,925) (29,193) (14,775)
------------------- ------------------- ------------------- -------------------
Total costs and expenses 404,647 384,660 1,500,711 1,300,287
------------------- ------------------- ------------------- -------------------
Earnings before income taxes 191,456 132,062 668,403 442,105
Provision for income taxes 66,052 44,241 230,599 148,105
------------------- ------------------- ------------------- -------------------
Net earnings $ 125,404 $ 87,821 $ 437,804 $ 294,000
=================== =================== =================== ===================
Weighted average shares
outstanding 234,174 230,882 233,157 230,480
Net earnings per share $ 0.54 $ 0.38 $ 1.88 $ 1.28
=================== =================== =================== ===================
</TABLE>
The first two quarters of FY96 have been restated to reflect the November
1995 acquisition of Micro Interventional Systems, Inc. which was accounted for
as a pooling of interests. Prior years activity has not been restated as the
impact of the business combination in prior years is not considered material and
restatement is therefore not required.
