Biomet Announces Cash Dividend, Three-for-Two Stock Split, and Record Fiscal Year-End Results.Business Editors WARSAW Warsaw (wôr`sô), Pol. Warszawa, city (1993 est. pop. 1,655,700), capital of Poland and of Mazowieckie prov., central Poland, on both banks of the Vistula River. , Ind.--(BUSINESS WIRE)--July 9, 2001 Biomet, Inc. (Nasdaq:BMET BMET Biomedical Engineering Technology BMet Bachelor of Metallurgy BMET Bio-Medical Equipment Repair Technician ) today announced that its Board of Directors declared a cash dividend of thirteen and one-half cents ($.135) per share, payable July 27, 2001 to shareholders of record at the close of business on July 20, 2001. It is important to note that this cash dividend is payable on the pre-split Common Shares. The Company also announced that its Board of Directors has declared a three-for-two stock split on its outstanding Common Shares, to be distributed on or about August 6, 2001, to shareholders of record as of July 30, 2001. The Board's decision to approve the three-for-two stock split reflects its continued confidence in the Company's operational and strategic direction, and is further reinforced by Biomet's excellent financial performance during fiscal year 2001. Dane A. Miller, Ph.D., President and Chief Executive Officer said, "The declaration of this dividend and the three-for-two stock split is an expression of appreciation for the continued support of our shareholders as the Company continues to gain market share in the $12 billion market for musculoskeletal musculoskeletal /mus·cu·lo·skel·e·tal/ (-skel´e-t'l) pertaining to or comprising the skeleton and muscles. mus·cu·lo·skel·e·tal adj. Relating to or involving the muscles and the skeleton. products." Biomet today also reported record sales and earnings results for its fiscal year and fourth quarter ended May 31, 2001. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 15% to $288,006,000, while net income increased 17% and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 18% to $.22 ($.33 on a pre-split basis). During the quarter the Company adopted EITF EITF Emerging Issues Task Force EITF Edinburgh International Television Festival EITF Europe International Taekwon-Do Federation 00-10 "Accounting for Shipping and Handling Fees and Costs." This EITF requires certain shipping and handling fees billed to customers to be recorded as revenue instead of as a reduction of shipping expense. Accordingly, the Company has reclassified amounts billed to customers from cost of sales to net sales for all periods presented in this press release to account for this new accounting guideline guideline Medtalk A series of recommendations by a body of experts in a particular discipline. See Cancer screening guidelines, Cardiac profile guidelines, Gatekeeper guidelines, Harvard guidelines, Transfusion guidelines. , with no effect on net income. Driven by strong, balanced growth in its reconstructive re·con·struc·tive adj. 1. Relating to or characterized by reconstruction. 2. Serving to rebuild, restore, or correct the appearance and function of defective, damaged, or misshaped body structures or parts: , fixation fixation: see psychoanalysis. , spinal spinal /spi·nal/ (spi´n'l) 1. pertaining to a spine or to the vertebral column. 2. pertaining to the spinal cord's functioning independently from the brain. spi·nal adj. and other product lines, net sales increased 18% during the fourth quarter of fiscal year 2001, excluding the impact of foreign currency and discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: products which reduced fourth quarter sales by $5.4 million and $2.6 million, respectively. United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and international sales, excluding the effects of foreign currency and discontinued products, increased 24% and 7%, respectively. Additionally, foreign currency reduced fourth quarter operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. by approximately $1.1 million. The discontinued product line, which did not meaningfully contribute to the Company's operating income, is associated with Biomet's 3i division and its June 1, 2000 termination of a distribution agreement with W. L. Gore and Associates W. L. Gore and Associates is the maker of Gore-Tex fabrics. The company was founded in 1958 by Bill Gore and his wife Genevieve in Newark, Delaware. Gore had been a research scientist working with fluoropolymers at DuPont. . As previously announced, the product line represented resorbable and non-resorbable membranes utilized in dental reconstructive procedures. 3i recently signed a distribution agreement for a resorbable membrane called Ossix to be utilized in conjunction with dental reconstructive procedures. Dane A. Miller, Ph.D., Biomet's President and Chief Executive Officer noted, "Biomet's sales and profit performance continues to be led by balanced growth throughout the Company's multiple strategic business units. I am also pleased to report that progress is being made with respect to Biomet's efforts in establishing direct sales operations in Japan. In addition to hiring an experienced General Manager, the Company has hired several sales representatives and has received approvals to distribute certain of its products in this attractive market. However, as a result of Biomet's initiatives in Japan, fourth quarter revenues were negatively influenced by approximately $2.3 million as a result of a reduction in product purchases from Biomet's former dealer organization in Japan. We continue to believe that the Company's long-term prospects in Japan will improve as a result of these changes. Additionally, Biomet continues to invest resources in expanding its multiple, worldwide salesforces. During the fourth quarter, EBI See electron beam imaging. added 27 sales representatives to its direct salesforce in the United States bringing its total U.S. sales organization to 422 team members. 3i added 17 sales representatives, while Biomet Orthopedics orthopedics (ôrthəpē`dĭks), medical specialty concerned with deformities, injuries, and diseases of the bones, joints, ligaments, tendons, and muscles. added 9 competitive sales representatives and Biomet-Merck expanded its European salesforce by 13 team members." Unless otherwise noted, all of the following percentages are quoted on a constant-currency basis and adjusted for discontinued products, as previously discussed. However, the following percentages do not include any adjustment for the reduction in revenues associated with Biomet's Japanese sales. Worldwide sales of Biomet's reconstructive devices increased 10% during the fourth quarter of fiscal year 2001 to $167,760,000. Reconstructive devices were led by total knee sales, which increased 19% in the United States and approximately 12% worldwide during the fourth quarter. Biomet's market-leading knee performance in the United States continues to be driven by the Repicci II(TM) Unicondylar Knee System and the Ascent(TM) Total Knee System. Total hip sales increased approximately 16% in the United States and 6% worldwide during the fourth quarter. Biomet continues to experience strong sales of the M2a(TM) Taper taper verb To gradually ↓ a dose, usually of a therapeutic agent–eg, corticosteroids, with potentially significant adverse effects, which cannot be abruptly halted, often due to rebound effects Metal-on-Metal Articulation articulation In phonetics, the shaping of the vocal tract (larynx, pharynx, and oral and nasal cavities) by positioning mobile organs (such as the tongue) relative to other parts that may be rigid (such as the hard palate) and thus modifying the airstream to produce speech System, which received FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. clearance in May of last year, in addition to its broad line of cementless total hip systems. Dental reconstructive implants, excluding discontinued products, increased 11% during the fourth quarter of fiscal year 2001. Domestic sales increased approximately 12%, while international sales of dental reconstructive implants increased approximately 10% led by the Osseotite(R) Dental Reconstructive Implant implant /im·plant/ (im-plant´) to insert or to graft (tissue, or inert or radioactive material) into intact tissues or a body cavity. System. Bone cements and accessories increased 51% during the fourth quarter of fiscal year 2001. The domestic introduction of Palacos(R) bone cement and the Optivac(R) Preparation System propelled the growth of bone cement and accessory accessory, in criminal law, a person who, though not present at the commission of a crime, becomes a participator in the crime either before or after the fact of commission. sales during the recent quarter. Fixation sales increased 13% to $54,848,000 during the fourth quarter of fiscal year 2001. Fixation sales were paced by sales of electrical stimulation systems which include both the EBI Model 2100 Bone Healing Bone healing or fracture healing is a proliferative physiological process, in which the body facilitates repair of Bone fractures. Physiology and process of healing System(R) and Biolectron's OrthoPak(R) System. Electrical stimulation sales increased 20% during the recently completed quarter. As previously announced, the Company acquired Biolectron on September 25, 2000, and the fourth quarter results include Biolectron's operations. Biolectron's sales are principally included in the fixation and spinal product categories. Craniomaxillofacial sales, through Biomet's Lorenz Surgical subsidiary, increased approximately 20% worldwide and 11% in the United States principally led by the recent introduction of Mimix(TM) bone substitute material. Internal fixation internal fixation n. The stabilization of fractured bony parts by direct fixation to one another with surgical wires, screws, pins, or plates. sales increased 8% worldwide and 5% in the United States during the fourth quarter of fiscal year 2001, while external fixation external fixation n. The fixation of a fractured bone by a splint or plastic dressing. external fixation Orthopedics Open reduction, stabilization and use of external fixators to manage fracture bone fragments sales increased approximately 1% worldwide and 2% in the United States. Spinal sales increased 86% to $28,873,000 during the fourth quarter. Spinal sales in the United States increased 104%, with spinal implant sales increasing 57% and spinal stimulation sales increasing 129%. Spinal implant sales continue to benefit from EBI's recent introduction of the VueLock(TM) Cervical cervical /cer·vi·cal/ (ser´vi-k'l) 1. pertaining to the neck. 2. pertaining to the neck or cervix of any organ or structure. cer·vi·cal adj. Fixation System and the Omega 21(TM) Spinal Fixation System. Spinal stimulation sales include EBI's SpF(R) Spinal Fusion spinal fusion n. A surgical procedure in which vertebrae are joined. Also called spondylosyndesis. Spinal fusion Stimulation System and Biolectron's SpinalPak(R) Spinal Stimulation System. Sales of Biomet's "other products" increased 28% during the fourth quarter of fiscal year 2001 to $36,525,000. Other product sales in the United States increased 12%, while international sales of other products grew 71%. Arthroscopy Arthroscopy Definition Arthroscopy is the examination of a joint, specifically, the inside structures. The procedure is performed by inserting a specifically designed illuminated device into the joint through a small incision. sales increased 34% worldwide and 31% in the United States in the recently completed quarter as a result of Arthrotek's procedure-specific products, the LactoSorb(R) line of resorbable arthroscopic products and the introduction of the CurvTek(R) Bone Tunneling tunneling, quantum-mechanical effect by which a particle can penetrate a barrier into a region of space that would be forbidden by ordinary classical mechanics. System. Softgoods and bracing bracing, n a resistance to the horizontal components of masticatory force. products rose 20% worldwide and in the United States during the recently completed quarter. Domestic sales of softgoods and bracing products are benefiting from EBI's Support-On-Site (S.O.S(TM)) stock and bill program. Biomet, Inc. and its subsidiaries design, manufacture and market products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy, including reconstructive and fixation devices, electrical bone growth stimulators, orthopedic orthopedic /or·tho·pe·dic/ (-pe´dik) pertaining to the correction of deformities of the musculoskeletal system; pertaining to orthopedics. support devices, operating room operating room n. Abbr. OR A room equipped for performing surgical operations. supplies, general surgical instruments A surgical instrument is a specially designed tool or device for performing specific actions of carrying out desired effects during a surgery or operation, such as modifying biological tissue, or to provide access or viewing it. , arthroscopy products, spinal implants, bone cements, bone substitutes, craniomaxillofacial implants and dental reconstructive implants and associated instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. . Headquartered in Warsaw, Indiana Warsaw is a city in, and the county seat of, Kosciusko County, Indiana, United StatesGR6. The population was 12,415, as of the 2000 census. Cradled between Winona Lake, Pike Lake and Center Lake, Warsaw is nicknamed "Lake City , Biomet and its subsidiaries currently distribute products in more than 100 countries. For further information contact Greg W. Sasso, Vice President, Corporate Development and Communications at (219) 372-1528 or Barb Goslee, Manager, Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. at (219) 372-1514. This press release contains certain statements that are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes that the assumptions, on which the forward-looking statements contained herein are based, are reasonable, any of those assumptions could prove to be inaccurate given the inherent uncertainties as to the occurrence or non-occurrence of future events. There can be no assurance that the forward-looking statements contained in this press release will prove to be accurate. The inclusion of a forward-looking statement herein should not be regarded as a representation by the Company that the Company's objectives will be achieved. All of Biomet's financial information may be obtained on our website at www.biomet.com or you may contact us by e-mail at investor.relations@biometmail.com. Palacos(R)is a registered trademark of Heraeus Kulzer GmbH. All other trademarks are owned by Biomet, Inc., or one of its subsidiaries.
BIOMET, INC. - - QUARTERLY RESULTS
FOR THE QUARTERS ENDED MAY 31
(in thousands, except per share data)
May 31, May 31,
2001 2000
-------- --------
Net Sales $288,006 $251,014
Cost of Sales 81,827 75,924
-------- --------
Gross Profit 206,179 175,090
S, G, & A 107,704 89,810
R & D 11,487 10,674
-------- --------
Operating Income 86,988 74,606
Other Income, Net 5,882 5,094
-------- --------
Income Before Taxes
And Minority Interest 92,870 79,700
Income Taxes 31,282 26,609
-------- --------
Income Before
Minority Interest 61,588 53,091
Minority Interest 2,472 2,470
-------- --------
Net Income 59,116 50,621
Earnings per Share
(post-split):
Basic .22 .19
Diluted .22 .19
U.S. sales $201,515 $164,171
Foreign sales 86,491 86,843
Reconstructive sales $167,760 $157,501
Fixation sales 54,848 48,773
Spinal products 28,873 15,548
Other product sales 36,525 29,192
BIOMET, INC. - - ANNUAL RESULTS
FOR THE YEARS ENDED MAY 31
(in thousands, except per share data)
May 31, 2001
---------------------------------------
Before
Non-Recurring Non-Recurring
Charges Charges As Reported
Net Sales $1,030,663 $1,030,663
Cost of Sales 296,063 296,063
---------- ----------
Gross Profit 734,600 734,600
S, G, & A 374,793 26,100 400,893
R & D 43,020 43,020
---------- --------- ----------
Operating Income 316,787 26,100 290,687
Other Income, Net 19,989 19,989
---------- ----------
Income Before Taxes
And Minority Interest 336,776 26,100 310,676
Income Taxes 114,806 8,900 105,906
---------- --------- ----------
Income Before
Minority Interest 221,970 17,200 204,770
Minority Interest 7,224 7,224
---------- --------- ----------
Net Income 214,746 17,200 197,546
Earnings per Share
(post-split):
Basic .80 .74
Diluted .79 .73
Basic Shares 267,915 267,915
Diluted Shares 270,746 270,746
U.S. sales $722,372
Foreign sales 308,291
Reconstructive sales $614,308
Fixation sales 202,152
Spinal products 91,103
Other product sales 123,100
May 31, 2000
---------------------------------------
Before
Non-Recurring Non-Recurring
Charges Charges As Reported
Net Sales $923,551 $923,551
Cost of Sales 281,351 281,351
---------- ----------
Gross Profit 642,200 642,200
S, G, & A 326,617 11,700 338,317
R & D 40,208 40,208
---------- --------- ----------
Operating Income 275,375 11,700 263,675
Other Income, Net 17,017 17,017
---------- --------- ----------
Income Before Taxes
And Minority Interest 292,392 11,700 280,692
Income Taxes 104,038 4,300 99,738
---------- --------- ----------
Income Before
Minority Interest 188,354 7,400 180,954
Minority Interest 7,183 7,183
---------- --------- ----------
Net Income 181,171 7,400 173,771
Earnings per Share
(post-split):
Basic .69 .66
Diluted .68 .65
Basic Shares 264,294 264,294
Diluted Shares 267,242 267,242
U.S. sales $612,262
Foreign sales 311,289
Reconstructive sales $580,239
Fixation sales 180,336
Spinal products 54,119
Other product sales 108,857
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