QIAGEN Reports Strong Third Quarter 2009 Results
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* 16% Revenue Growth on Constant Exchange Rates
* 15% Organic Revenue Growth
* 31% Operating Margin, adjusted
* $0.26 Adjusted EPS
Venlo, The Netherlands, November 9, 2009 - QIAGEN N.V. (Nasdaq: QGEN;
Frankfurt, Prime Standard: QIA) today announced the results of
operations for the third quarter and the nine-month period ended
September 30, 2009.
The reported net sales and the adjusted earnings per share for the
third quarter 2009 exceeded the guidance provided by the Company on
August 11, 2009.
Third Quarter 2009 Results
QIAGEN's Third Quarter 2009 (in US$ millions, except per share
information)
Q3 2009 Q3 2008 Growth
Net sales 259.7 230.8 13 %
Net sales at constant exchange rates 268.7 230.8 16 %
Operating income, adjusted 81.8 66.8 22 %
Net income, adjusted 53.5 42.4 26 %
EPS, adjusted (US$) 0.26 0.21 24 %
For information on the adjusted figures, please refer to the
reconciliation table
accompanying this release.
The Company reported that consolidated net sales for its third
quarter 2009 increased 13% to $259.7 million from $230.8 million in
the same quarter of 2008. Excluding the unfavorable impact from
foreign currency exchange rates, net sales for the third quarter 2009
would have increased 16%. The reported operating income for the
quarter increased 40% to $53.4 million from $38.2 million in the same
quarter of 2008, and net income for the quarter increased 81% to
$37.7 million from $20.8 million in the same quarter of 2008. Diluted
earnings per share for the third quarter increased 80% to $0.18 in
2009 from $0.10 in 2008.
On an adjusted basis, third quarter operating income increased 22% to
$81.8 million in 2009 from $66.8 million in 2008, and third quarter
2009 adjusted net income increased 26% to $53.5 million from $42.4
million in 2008. Adjusted diluted earnings per share increased 24% to
$0.26 in the third quarter 2009 from $0.21 in 2008.
Nine-Month Period 2009 Results
For the nine-month period ended September 30, 2009, net sales
increased 10% to $720.7 million compared to $655.8 million in the
same period of 2008. Operating income as reported for the nine months
ended September 30, 2009 increased 30% to $137.3 million from $105.2
million for the same period in 2008. Net income increased 45% to
$93.3 million from $64.4 million in 2008, and diluted earnings per
share increased 45% to $0.45 in 2009 from $0.31 in 2008.
On an adjusted basis, operating income for the nine-month period
ended September 30, 2009 increased 14% to $212.7 million in 2009 from
$186.1 million in 2008, and adjusted net income increased 19% to
$142.0 million from $119.6 million. Adjusted diluted earnings per
share in the nine months ended September 30, 2009 increased 19% to
$0.69 per share from $0.58 per share in the same period of 2008.
QIAGEN's third quarter and nine-month period 2009 results include the
results of operations from the Company's recent acquisitions, the
most significant of which was DxS Ltd., acquired in September 2009,
and Corbett Life Science, acquired in July 2008. Reconciliations of
reported results determined in accordance with generally accepted
accounting principles (GAAP) to adjusted results are included in the
tables accompanying this release.
"We are very pleased with our financial performance in the third
quarter of 2009," said Peer Schatz, QIAGEN's Chief Executive Officer.
"We saw strong growth in revenues, operating margins and adjusted net
income - all of which exceeded our guidance. In addition, our organic
revenue growth came in very strong at 15%."
"Revenue growth was highest in sales to customers in molecular
diagnostics (approximately 50% of total revenues) followed by sales
to customers in pharma (approximately 21% of total revenues), in
applied testing (approximately 6% of total revenues) and in academia
(approximately 23% of total revenues). Growth of our sales to
customers in molecular diagnostics was fueled by strong sales of our
"prevention" products (primarily HPV screening),"personalized health
care" assays (including our KRAS testing solutions) and profiling
solutions (including our influenza and other infectious disease
assays). Sales to customers in the pharmaceutical and biotech
industry conducting clinical development continued to experience
solid growth and sales to customers in pharma discovery are
improving. The academic research markets continued to perform solidly
and we are looking forward to the effect of the stimulus programs
which are expected for 2010."
"The markets we serve demonstrated robust demand and solid economic
trends. We are very pleased with the strategic momentum we were able
to build since the announcement of our second quarter results in
August. Since August we have announced the following acquisitions:
* The pending acquisition of SABiosciences will add to QIAGEN a
portfolio of PCR-based, pathway-focused panels that represent
highly efficient solutions for pathway- and disease-biomarker
discovery and development in pharmaceutical and biomedical
research. The efforts associated with the validation of such
biomarkers can at the same time serve as engines for novel
content for molecular diagnostics.
* The acquisition of DxS Ltd. combines two leadership positions to
create a very powerful leader in a transformational area of
healthcare: personalized healthcare.
Both transactions are key elements of our strategy to lead in
molecular diagnostics-based prevention, profiling and personalized
healthcare. These three pillars of our molecular diagnostics strategy
are expected to significantly shape and contribute to future
improvements in healthcare and have the potential to provide
significant benefits to patients as well as exceptional value for
payers, providers, and the pharmaceutical industry."
"QIAGEN experienced a successful third quarter. Reported revenues and
adjusted earnings per share exceeded our expectations," said Roland
Sackers, QIAGEN's Chief Financial Officer. "Assuming constant
exchange rates for both quarters, and adjusted for the divesture of
certain assets related to our activities in HLA diagnostics
(transplantation diagnostics), revenue growth was 18% and was fueled
by a strong organic growth of 15% and a positive contribution of 3%
from acquisitions.
Our consumable products portfolio contributed 12% growth (16% at
constant exchange rates) and our sales of instrumentation products
recorded a growth rate of 18% (23% at constant exchange rates). Net
sales in the Americas for the third quarter 2009 represented
approximately 51% of our overall business and recorded a growth rate
of 12% (15% at constant exchange rates) and European sales, which
represent approximately 35% of our revenues, showed a growth rate of
16% (24% at constant exchange rates). Net sales in Asia remained
strong, showing a growth rate of 41% (37% at constant exchange
rates)."
Increase of Fiscal Year 2009 Guidance Range
Based on the successful first nine months and a positive outlook for
the rest of the year, QIAGEN is increasing its expectations for
adjusted diluted earnings per share for the fiscal year 2009 from the
previous range of $0.86 to $0.90 (based on a weighted average number
of fully diluted shares outstanding of approximately 214 million
following the equity offering in September 2009) to now between $0.88
and $0.90 based on foreign currency exchange rates as of January 31,
2009.
QIAGEN - Sample and Assay Technologies Highlights
* In September, QIAGEN acquired DxS Ltd., a developer and
manufacturer of companion diagnostic products (CDx) for
Personalized Healthcare (PHC). With this acquisition, QIAGEN has
added to its own activities in CDx and taken a strong leadership
position in the new era of PHC. The Company believes it offers
all the required elements to help drive and shape this rapidly
emerging trend in healthcare. The acquisition of DxS brings to
QIAGEN a portfolio of molecular diagnostic assays and
intellectual property, as well as a deep pipeline of active or
planned companion diagnostic partnerships in oncology with many
of the leading pharmaceutical companies, including Amgen,
Boehringer Ingelheim, Bristol-Myers Squibb, AstraZeneca and
others. These assets complement QIAGEN's strong existing
portfolio of personalized healthcare diagnostic solutions and are
very synergistic with QIAGEN's sample and assay technologies.
* In November, QIAGEN announced that it is in the process of
acquiring SABiosciences. This transaction will add to QIAGEN's
product offering a leading portfolio of PCR-based, disease and
pathway-based panels that play key roles in biomedical research
and the development of future drugs and diagnostics. The
offerings from SABiosciences can significantly increase QIAGEN's
footprint in the rapidly emerging segment of molecular
analysis-based clinical development in pharmaceutical and
biomedical research. In addition, the use of these panels and the
resulting validation of select biomarkers from these panels by
institutions conducting biomedical and pharmaceutical research
has the potential to serve as a unique engine to support the
expansion of the test menu for QIAGEN's diagnostics platforms -
in particular in the area of personalized health care but also in
prevention and profiling. As such, this transaction is highly
synergistic with QIAGEN's activities in the fast growing segments
of solutions for pharmaceutical development and molecular
diagnostics.
* In September, QIAGEN and Merck & Co., Inc. announced the creation
of a joint program to increase access to HPV vaccination and HPV
DNA testing in some of the poorest areas of the world. This
initiative is the first collaboration of a vaccine manufacturer
and a molecular diagnostics company to address the burden of
cervical cancer with a comprehensive approach. Representing a
combined value of approximately $600 million based on current
U.S. prices, the commitments of QIAGEN and Merck were highlighted
among a select group of corporate initiatives announced at the
annual meeting of the Clinton Global Initiative in September.
QIAGEN intends to add to its existing one million test donation
program by providing the digene HC2 HPV DNA Test (as known as the
digene HPV Test) and a new HPV DNA test that is currently in
development for use specifically in the developing world to
screen an additional 500,000 women. In addition, Merck intends to
provide up to five million free doses of its cervical cancer
vaccine, GARDASIL® [Human Papillomavirus Quadrivalent (Types 6,
11, 16 and18) Vaccine Recombinant].
* In September, QIAGEN opened its new Asia headquarters in
Zhangjiang High-Tech Park, Pudong, Shanghai, China. QIAGEN
established Shanghai as the location for its Asia headquarters in
2006. Resources and employees that were previously spread across
different locations have been brought together at the new site in
Zhangjiang High-Tech Park - which has emerged as the
biotechnology hub of China. Zhangjiang High-Tech Park is home to
15 multinational pharmaceutical R&D centers, 32 Contract Research
Organization (CRO) companies, 29 major pharma manufacturing
plants and over 200 biotech-pharma companies. QIAGEN's new
facility provides better access to the Company's new technologies
and applications and reduces delivery time to thousands of
scientists working in the Park.
* In the first nine months of 2009, QIAGEN launched more than 48
new products in the area of Sample & Assay Technologies including
a range of applications used to analyze genetic differences
between individuals or cells, the Type-it® HRM PCR Kit and
Rotor-Gene® ScreenClust HRM Software. HRM (high resolution
melting) technology enabling fast, accurate genotyping results.
In addition QIAGEN launched a new PCR-based Influenza A/H1N1 test
that enables both the highly sensitive and specific detection of
the novel Influenza A/H1N1, the virus that causes "swine flu", as
well as of all other known Influenza A and B virus strains and
several QIAsafe DNA Blood Products, the first dry blood storage
solutions available on a matrix, based on Biomatrica's innovative
SampleMatrix® technology.
* In September, QIAGEN placed 31.6 million shares (including the
full exercise of an over-allotment option) at a price of $20.25
per share. QIAGEN used and expects to use the net proceeds of
approximately $624 million to fund the acquisition of DxS Ltd. as
well as potential future acquisitions, to strengthen its balance
sheet and for general corporate purposes.
* In October, QIAGEN started the relocation of its activities in
Brisbane and Sydney to other locations of the Company, primarily
to QIAGEN Instruments AG in Switzerland. The restructurings
follow the acquisition of Corbett in 2008 and consolidate
QIAGEN's instrument manufacturing activities. The closure and
relocation is intended to be completed in the second quarter of
2010 and is expected to result in an increase in QIAGEN's future
profitability. QIAGEN expects to incur total restructuring
charges of approximately $4 to $5 million before taxes for the
remainder of fiscal 2009 and fiscal 2010.
Conference Call and Webcast Details
Detailed information on QIAGEN's business and financial performance
will be presented during its conference call on November 10, 2009 at
9:30am ET. The corresponding presentation slides will be available
for download on the Company's website at
www.qiagen.com/goto/ConferenceCall. A webcast of the conference call
will also be available at www.qiagen.com/goto/ConferenceCall.
Use of Adjusted Results
QIAGEN has regularly reported adjusted results to give additional
insight into its financial performance as well as considered results
on a constant currencies basis. Adjusted results should be considered
in addition to the reported results prepared in accordance with
generally accepted accounting principles, but should not be
considered as a substitute. The Company believes certain items should
be excluded from adjusted results when they are outside of its
ongoing core operations, vary significantly from period to period, or
affect the comparability of results with the Company's competitors
and its own prior periods. Reconciliations of reported results to
adjusted results are included in the tables accompanying this
release.
About QIAGEN
QIAGEN N.V., a Netherlands holding company, is the leading global
provider of sample and assay technologies. Sample technologies are
used to isolate and process DNA, RNA and proteins from biological
samples such as blood or tissue. Assay technologies are used to make
these isolated biomolecules visible. QIAGEN has developed and markets
more than 500 sample and assay products as well as automated
solutions for such consumables. The Company provides its products to
molecular diagnostics laboratories, academic researchers,
pharmaceutical and biotechnology companies, and applied testing
customers for purposes such as forensics, animal or food testing and
pharmaceutical process control. QIAGEN's assay technologies include
one of the broadest panels of molecular diagnostic tests available
worldwide. This panel includes the first FDA-approved test for human
papillomavirus (HPV), the primary cause of cervical cancer. QIAGEN
employs more than 3,300 people in over 30 locations worldwide.
Further information about QIAGEN can be found at
http://www.qiagen.com/.
Certain of the statements contained in this news release may be
considered forward-looking statements within the meaning of Section
27A of the U.S. Securities Act of 1933, as amended, and Section 21E
of the U.S. Securities Exchange Act of 1934, as amended. To the
extent that any of the statements contained herein relating to
QIAGEN's products, markets, strategy or operating results are
forward-looking, such statements are based on current expectations
that involve a number of uncertainties and risks. Such uncertainties
and risks include, but are not limited to, risks associated with
management of growth and international operations (including the
effects of currency fluctuations and risks of dependency on
logistics), variability of operating results, the commercial
development of the applied testing markets, clinical research markets
and proteomics markets, women's health/HPV testing markets, nucleic
acid-based molecular diagnostics market, and genetic vaccination and
gene therapy markets, changing relationships with customers,
suppliers and strategic partners, competition, rapid or unexpected
changes in technologies, fluctuations in demand for QIAGEN's products
(including fluctuations due to general economic conditions, the level
and timing of customers' funding, budgets, and other factors), our
ability to obtain regulatory approval of our infectious disease
panels, difficulties in successfully adapting QIAGEN's products to
integrated solutions and producing such products, the ability of
QIAGEN to identify and develop new products and to differentiate its
products from competitors' products, market acceptance of QIAGEN's
new products and the integration of acquired technologies and
businesses. In addition certain statements contained in this news
release are based on company assumptions, including, but not limited,
to revenue allocations based on business segments. For further
information, refer to the discussions in reports that QIAGEN has
filed with, or furnished to, the U.S. Securities and Exchange
Commission (SEC).
# # #
QIAGEN N.V.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three months
(in thousands, except per share data) ended September 30,
2009 2008
Net sales $ 259,659 $ 230,800
Cost of sales 86,647 77,861
Gross profit 173,012 152,939
Operating expenses:
Research and development 26,747 24,073
Sales and marketing 60,719 55,972
General and administrative, integration and
other 27,805 29,868
Purchased in-process research and
development - 830
Acquisition related intangible amortization 4,387 4,018
Total operating expenses 119,658 114,761
Income from operations 53,354 38,178
Other income (expense):
Interest income 678 2,095
Interest expense (7,405) (9,194)
Other income, net 2,692 (3,233)
Total other expense (4,035) (10,332)
Income before provision for income taxes and
noncontrolling interest 49,319 27,846
Provision for income taxes 11,629 6,679
Net income 37,690 21,167
Less: Noncontrolling interest - 376
Net income attributable to QIAGEN N.V. $ 37,690 $ 20,791
Weighted average number of diluted common
shares 208,316 204,600
Diluted net income attributable to QIAGEN $ $
N.V. per common share 0.18 0.10
Diluted net income attributable to QIAGEN
N.V. per common
share, adjusted $ 0.26 $ 0.21
QIAGEN N.V.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Nine months
(in thousands, except per share data) ended September 30,
2009 2008
Net sales $ 720,748 $ 655,794
Cost of sales 241,787 213,555
Gross profit 478,961 442,239
Operating expenses:
Research and development 77,340 69,281
Sales and marketing 175,857 167,746
General and administrative, integration and
other 76,210 88,672
Purchased in-process research and
development - 830
Acquisition related intangible amortization 12,289 10,484
Total operating expenses 341,696 337,013
Income from operations 137,265 105,226
Other income (expense):
Interest income 2,541 7,391
Interest expense (22,136) (28,832)
Other income, net 5,249 (672)
Total other expense (14,346) (22,113)
Income before provision for income taxes and
noncontrolling interest 122,919 83,113
Provision for income taxes 29,616 18,272
Net income 93,303 64,841
Less: Noncontrolling interest - 491
Net income attributable to QIAGEN N.V. $ 93,303 $ 64,350
Weighted average number of diluted common
shares 205,096 204,999
Diluted net income attributable to QIAGEN
N.V. per common share $ 0.45 $ 0.31
Diluted net income attributable to QIAGEN
N.V. per common
share, adjusted $ 0.69 $ 0.58
QIAGEN N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value) September 30,
2009 December 31,
Assets (unaudited) 2008
Current Assets:
Cash and cash equivalents $ 861,273 $ 333,313
Accounts receivable, net 181,692 158,440
Income taxes receivable 27,843 14,441
Inventories, net 133,618 108,563
Prepaid expenses and other 135,192 61,424
Deferred income taxes 32,543 27,374
Total current assets 1,372,161 703,555
Long-Term Assets:
Property, plant and equipment, net 310,215 289,672
Goodwill 1,273,754 1,152,105
Intangible assets, net 693,777 640,309
Deferred income taxes 78,016 73,766
Other assets 26,728 25,916
Total long-term assets 2,382,490 2,181,768
Total assets $ 3,754,651 $ 2,885,323
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $ 42,078 $ 48,836
Accrued and other liabilities 236,980 163,513
Income taxes payable 33,414 14,288
Current portion of long-term debt 50,000 25,000
Current portion of capital lease
obligations 3,342 2,984
Deferred income taxes 10,256 7,754
Total current liabilities 376,070 262,375
Long-Term Liabilities:
Long-term debt, net of current portion 870,000 920,000
Capital lease obligations, net of current
portion 28,797 29,718
Deferred income taxes 237,530 212,589
Other 13,945 6,797
Total long-term liabilities 1,150,272 1,169,104
Shareholders' Equity:
Common shares, EUR .01 par value:
Authorized--410,000 shares
Issued and outstanding--231,130 shares
in 2009 and 197,839 shares in 2008 2,697 2,212
Additional paid-in-capital 1,606,218 958,665
Retained earnings 571,115 477,812
Accumulated other comprehensive income 48,279 15,155
Total QIAGEN N.V. shareholders' equity 2,228,309 1,453,844
Total liabilities and shareholders' equity $ 3,754,651 $ 2,885,323
Three months ended September 30, 2009
(in thousands, except EPS data)
Net Gross Operating Pre-tax Net Diluted
Sales Profit Income Income Income Tax Income EPS*
Reported
results $ 259,659 $ 173,012 $ 53,354 $ 49,319 $ (11,629) $ 37,690 $ 0.18
Adjustments:
Business
integration,
acquisition
related
and
restructuring
costs - 177 2,790 2,790 (918) 1,872 0.01
Purchased
intangibles
amortization - 13,111 17,499 17,499 (6,082) 11,417 0.06
Share-based
compensation - 245 2,348 2,348 (678) 1,670 0.01
Acquisition
of DxS Ltd. - 2,515 5,784 5,784 (1,661) 4,123 0.02
Transfer of
Olerup SSP
business and
other
acquisition
related
income - - - (2,429) (835) (3,264) (0.02)
Total
adjustments - 16,048 28,421 25,992 (10,174) 15,818 0.08
Adjusted
results $ 259,659 $ 189,060 $ 81,775 $ 75,311 $ (21,803) $ 53,508 $ 0.26
Using 208,316
diluted
shares
Three months ended September 30, 2008
(in thousands, except EPS data)
Gross Operating Pre-tax Net Diluted
Net Sales Profit Income Income Income Tax Income EPS*
Reported
results $ 230,800 $ 152,939 $ 38,178 $ 27,846 $ (6,679) $ 20,791 $ 0.10
Adjustments:
Business
integration,
acquisition
related
and
restructuring
costs - 396 9,122 9,122 (3,138) 5,984 0.03
Purchased
in-process
R&D - - 830 830 - 830 -
Purchased
intangibles
amortization - 12,776 16,794 16,794 (5,876) 10,918 0.06
Share-based
compensation - 223 1,896 1,896 (580) 1,316 0.01
Acquisition
related
impairment - - - 4,000 (1,480) 2,520 0.01
Total
adjustments - 13,395 28,642 32,642 (11,074) 21,568 0.11
Adjusted
results $ 230,800 $ 166,334 $ 66,820 $ 60,488 $ (17,753) $ 42,359 $ 0.21
* Using 204,600 diluted shares
QIAGEN N.V.
RECONCILIATION OF REPORTED TO ADJUSTED FIGURES
(unaudited)
Nine months ended September 30, 2009
(in thousands, except EPS data)
Gross Operating Pre-tax Net Diluted
Net Sales Profit Income Income Income Tax Income EPS*
Reported
results $ 720,748 $ 478,961 $ 137,265 $ 122,919 $ (29,616) $ 93,303 $ 0.45
Adjustments:
Business
integration,
acquisition
related
and
restructuring
costs - 688 10,705 10,705 (3,396) 7,309 0.04
Purchased
intangibles
amortization - 39,290 51,579 51,579 (17,973) 33,606 0.17
Share-based
compensation - 699 7,352 7,352 (2,229) 5,123 0.02
Acquisition
of DxS Ltd. - 2,515 5,784 5,784 (1,661) 4,123 0.02
Transfer of
Olerup SSP
business and
other
-
acquisition
related
income - - (2,429) (835) (3,264) (0.02)
Acquisition
related
write-off of
prepaid
expenses and
other asset
impairment - - - 2,703 (870) 1,833 0.01
Total
adjustments - 43,192 75,420 75,694 (26,964) 48,730 0.24
Adjusted
results $ 720,748 $ 522,153 $ 212,685 $ 198,613 $ (56,580) $ 142,033 $ 0.69
* Using 205,096 diluted shares
Nine months ended September 30, 2008
(in thousands, except EPS data)
Net Gross Operating Pre-tax Net Diluted
Sales Profit Income Income Income Tax Income EPS*
Reported
results $ 655,794 $ 442,239 $ 105,226 $ 83,113 $ (18,272) $ 64,350 $ 0.31
Adjustments:
Business
integration,
acquisition
related
and
restructuring
costs - 396 27,723 27,723 (9,760) 17,963 0.09
Purchased
in-process
R&D - - 830 830 - 830 -
Purchased
intangibles
amortization - 35,551 46,035 46,035 (16,306) 29,729 0.15
Share-based
compensation - 763 6,251 6,251 (2,001) 4,250 0.02
Acquisition
related
impairment - - - 4,000 (1,480) 2,520 0.01
Total
adjustments - 36,710 80,839 84,839 (29,547) 55,292 0.27
Adjusted
results $ 655,794 $ 478,949 $ 186,065 $ 167,952 $ (47,819) $ 119,642 $ 0.58
* Using
204,999
diluted
shares
Contacts:
Roland Sackers Dr. Solveigh Mähler
Chief Financial Officer Director Investor Relations
QIAGEN N.V. QIAGEN N.V.
e-mail: +49 2103 29 11710
roland.sackers@qiagen.com e-mail:
solveigh.maehler@qiagen.com
Albert F. Fleury
Associate Director Investor
Relations North America
QIAGEN N.V.
+1 301 944 7028
e-mail:
albert.fleury@qiagen.com
--- End of Message ---
Qiagen N.V.
Spoorstraat 50 KJ Venlo Netherlands
WKN: 901626; ISIN:
NL0000240000; Index: HDAX, MIDCAP, Prime All Share, TECH All Share,
TecDAX;
Listed: Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in
Börse Berlin,
Freiverkehr in Börse Düsseldorf, Freiverkehr in Hanseatische
Wertpapierbörse zu Hamburg,
Freiverkehr in Niedersächsische Börse zu Hannover, Freiverkehr in
Bayerische Börse München,
Freiverkehr in Börse Stuttgart;