Stock Analysis on Net

Abiomed Inc. (NASDAQ:ABMD)

This company has been moved to the archive! The financial data has not been updated since November 3, 2022.

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Abiomed Inc., consolidated cash flow statement

US$ in thousands

Microsoft Excel
12 months ended: Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Net income 136,505 225,525 203,009 259,016 112,170 52,116
Depreciation and amortization 28,089 24,097 20,430 14,121 11,005 6,202
Acquired in-process research & development 115,986
Bad debt expense (recoveries) 46 (126) 487 720 38 159
Stock-based compensation expense 52,729 47,006 39,781 54,494 40,353 32,866
Write-down of inventory and other 17,993 8,518 4,249 4,252 3,946 3,085
Accretion on marketable securities 3,655 1,977 (2,731) (2,744)
Change in fair value of investments (22,873) (50,983) 5,184 (30,161)
Excess tax benefit from stock-based awards (12,038)
Deferred tax provision 2,413 29,380 32,953 (7,745) 42,624 25,803
Change in fair value of contingent consideration (862) 2,406 (575) (915) 1,337 1,590
Gain on previously held interest in preCARDIA (20,980)
Other non-cash operating activities 2,885 4,164 4,108
Accounts receivable, net 5,335 (12,059) 5,551 (22,023) (15,289) (11,550)
Inventories, net (29,323) 2,535 (13,237) (37,181) (15,686) (12,284)
Prepaid expenses and other assets (8,406) (1,032) (5,333) (2,527) (4,466) (2,366)
Accounts payable 641 2,629 2,581 7,976 4,412 7,565
Accrued expenses and other liabilities (760) (14,632) 15,676 13,406 7,722 22,223
Deferred revenue 2,317 5,173 2,787 1,508 4,380 1,745
Changes in assets and liabilities (30,196) (17,386) 8,025 (38,841) (18,927) 5,333
Adjustments to reconcile net income to net cash provided by operating activities 148,885 49,053 111,911 (6,819) 80,376 63,000
Net cash provided by operating activities 285,390 274,578 314,920 252,197 192,546 115,116
Purchases of marketable securities (787,150) (556,199) (611,280) (361,602) (325,408) (278,501)
Proceeds from the sale and maturity of marketable securities 543,513 396,643 550,788 331,886 206,909 205,482
Acquisition of preCARDIA, net of cash acquired (82,821)
Acquisition of Breethe, net of cash acquired (52,183)
Purchases of other investments and intangible assets (18,769) (26,104) (20,957) (42,735) (6,400) (2,899)
Proceeds from sale of Shockwave Medical securities 67,882
Purchases of property and equipment (35,763) (53,383) (44,006) (44,004) (55,863) (50,415)
Net cash used for investing activities (380,990) (223,344) (125,455) (116,455) (180,762) (126,333)
Proceeds from the exercise of stock options 9,424 9,075 3,748 12,949 9,303 10,660
Excess tax benefit from stock-based awards 12,038
Taxes paid related to net share settlement upon vesting of stock awards (16,526) (11,311) (41,687) (71,776) (20,317) (20,105)
Payment of Breethe contingent consideration at acquisition date fair value (2,334)
Repurchase of common stock (11,310) (84,879)
Proceeds from the issuance of stock under employee stock purchase plan 7,234 5,479 5,103 3,052 2,394 1,720
Principal payments on capital lease obligation (517) (446)
Net cash provided by (used for) financing activities (2,202) (8,067) (117,715) (55,775) (9,137) 3,867
Effect of exchange rate changes on cash and cash equivalents (2,090) (2,798) (430) (1,921) 1,288 (1,841)
Net increase (decrease) in cash and cash equivalents (99,892) 40,369 71,320 78,046 3,935 (9,191)
Cash and cash equivalents at beginning of period 232,710 192,341 121,021 42,975 39,040 48,231
Cash and cash equivalents at end of period 132,818 232,710 192,341 121,021 42,975 39,040

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

Net Income
Net income showed an overall upward trend from 2017 to 2021, increasing from approximately $52.1 million to $225.5 million. However, in 2022, net income declined sharply to $136.5 million, representing a notable decrease compared to the previous year.
Depreciation and Amortization
This expense increased steadily each year from $6.2 million in 2017 to $28.1 million in 2022, indicating ongoing investments in fixed assets and possibly intangible assets.
Acquired In-Process Research & Development
An item appearing only in 2022 at $116.0 million suggests a significant acquisition or investment in research and development during that year.
Stock-Based Compensation Expense
This expense exhibited a generally increasing trend from $32.9 million in 2017 to $52.7 million in 2022, reflecting growing employee compensation through stock options or awards.
Write-down of Inventory and Other
Write-downs increased substantially over the period, from $3.1 million in 2017 to $18.0 million in 2022, suggesting increasing inventory obsolescence or valuation adjustments.
Accretion on Marketable Securities
This non-cash income fluctuated, showing negative figures in 2019 and 2020 but positive gains in 2021 and 2022 ($1.98 million and $3.7 million respectively), indicating variability in investment yields or valuation changes.
Change in Fair Value of Investments
The item showed volatility with a large negative change in 2019 (-$30.2 million), positive change in 2020 ($5.2 million), followed by significant negative changes in 2021 (-$51.0 million) and 2022 (-$22.9 million), highlighting fluctuating investment performance or impairments.
Deferred Tax Provision
The deferred tax provision was positive and relatively high in the early years, peaking in 2020 at $32.9 million, but substantially declined to $2.4 million in 2022, indicating changes in tax liabilities or asset valuations.
Changes in Working Capital (Assets and Liabilities)
Changes were largely negative in most years except 2020 which showed a positive $8.0 million change, with notable decreases in accounts receivable and inventories particularly in 2019 and 2022. This suggests fluctuating operational asset management.
Net Cash Provided by Operating Activities
Operating cash flow increased steadily from $115.1 million in 2017 to a peak of $314.9 million in 2020 before declining slightly in 2021 and increasing again to $285.4 million in 2022, demonstrating strong cash-generating ability throughout the period.
Investing Activities
Significant cash outflows for investing activities increased notably in 2022 (-$381.0 million), substantially higher than in previous years. Large purchases of marketable securities and acquisitions (e.g., preCARDIA, Breethe) were key contributors. Proceeds from sales and maturity of marketable securities also increased, but not sufficiently to offset purchases.
Financing Activities
Financing cash flow was generally negative or slightly positive, with notable outflows in 2020 (-$117.7 million). Activities included payments related to stock awards, repurchases of common stock, and proceeds from stock option exercises and employee stock purchases, indicating active capital structure management.
Cash and Cash Equivalents
Cash increased considerably between 2017 and 2021, peaking at $232.7 million before dropping to $132.8 million in 2022. The decline in 2022 corresponds with significant investing outflows and reduced net income, reflecting the financial strategies and operational results of that year.