Haemonetics pays off $93 million of debt, touts strong balance sheet

By Devika Patel

Knoxville, Tenn., June 19 – Haemonetics Corp. paid down $93 million of debt in fiscal 2017 and is entering a period with a “very strong balance sheet,” with “strong free cash flow” and the ability to increase its borrowing capacity.

“During the year, we paid down $93 million of debt,” executive vice president and chief financial officer William P. Burke said at the company’s analyst meeting on Monday.

“With strong free cash flow throughout the planning periods, sufficient to fund our investment and the potential to increase our borrowing capacity should we deem it necessary to do so, we enter a period with a very strong balance sheet.

“We have financial flexibility which provides the opportunities for exploring different capital allocation strategies,” he said.

Haemonetics achieved $113 million of free cash flow in fiscal 2017.

The company ended the year with $140 million of cash on the balance sheet, a year over year increase of $24 million.

Net debt is $175 million, which is equal to 1x EBITDA.

Haemonetics is a Braintree, Mass.-based health care company that provides blood management services.

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