Biomet Announces Financial Results for Third Quarter of Fiscal Year 2008.WARSAW, Ind. -- Biomet, Inc. announced today financial results for its third fiscal quarter ended February 29, 2008. * 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 14% worldwide to $603.1 million * Worldwide reconstructive device sales increased 18% (14% constant currency, ex-instruments) * Worldwide knee sales increased 25% (21% constant currency, ex-instruments) * Worldwide hip sales increased 15% (12% constant currency, ex-instruments) As previously announced, Biomet Inc. finalized the merger with LVB LVB Ludwig Van Beethoven (classical composer) LVB Luchtverkeersbeveiliging LVB Las Vegas Bay (Lake Mead, NV) LVB Livramento, Brazil (Airport Coode) LVB Large Vehicle Bomb Acquisition Merger Sub, Inc., a wholly-owned subsidiary of LVB Acquisition, Inc. on September 25, 2007. LVB Acquisition, Inc. is indirectly owned by investment partnerships directly or indirectly advised or managed by The Blackstone Group Blackstone Group L.P. (NYSE: BX) is a prominent private equity and investment management firm founded in 1985 by Peter G. Peterson and Stephen A. Schwarzman. The company is based in New York City, in River House on Park Avenue at Fifty-first Street, with offices in Atlanta, L.P., Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. & Co., Kohlberg Kravis Roberts Kohlberg Kravis Roberts & Co (commonly referred to as KKR) is a New York City-based private equity firm that focuses primarily on late-stage leveraged buyouts. It was founded in 1976 by Jerome Kohlberg, Jr., and cousins Henry Kravis and George R. & Co. L.P. and TPG TPG Texas Pacific Group TPG Tapping TPG Transports Publics Genevois (Geneva, Switzerland public transportation) TPG Test Pattern Generator TPG TNT Post Group TPG Trésorier Payeur Général Capital. The Company's unaudited condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge as of and for the period ended February 29, 2008 and other financial data included in this press release have been prepared in a manner that complies, in all material respects, with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting in the U.S. and reflects the preliminary purchase accounting adjustments related to the Merger. The purchase price allocation was based on information currently available to the Company, and expectations, assumptions, and valuation methodologies deemed reasonable by the Company's management. The final valuation and associated purchase price allocation is expected to be completed as soon as possible, but no later than one year from the completion of the acquisition. To the extent that the estimates need to be adjusted, the Company will do so. In addition, the Company's international subsidiaries have historically reported financial results on a one month lag. Due to improved financial reporting capabilities, the reporting lag has been eliminated and all subsidiaries are now aligned with the corporate reporting calendar. The first and second quarters of fiscal year 2008 have been adjusted, from what was originally reported, to reflect the elimination of the lag, resulting in an increase in net sales of $14.2 million and an increase in 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. of $7.0 million for the six months ended November 30, 2008. The elimination of the lag does not materially affect the third quarter results. Net sales increased 13.9% to $603.1 million for the quarter ended February 29, 2008, from $529.5 million for the same quarter in the prior year. Excluding the impact of foreign currency, net sales increased 9.9%. U.S. revenue increased 9.4% to $351.6 million during the third quarter of fiscal 2008, while foreign sales increased 20.8% (12.0% constant currency) to $251.5 million. Excluding both the impact of sales of instruments (which the Company discontinued selling in the third quarter of fiscal 2007) and foreign currency, net sales increased by 10.2% for the third quarter of fiscal 2008 compared to the same quarter in the prior year. During the third quarter of fiscal year 2008, the Company incurred special charges (pre-tax) of $191.8 million, including purchase accounting charges of $177.1 million. The purchase accounting charges primarily relate to additional amortization for the intangible assets recorded in conjunction with the merger, as well as additional depreciation and cost of sales recorded due to inventory and fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → being written up to fair value for the merger. The other special charges primarily relate to the previously announced operational improvement program. Reported operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the third quarter of fiscal year 2008 was $5.0 million, compared to operating income of $124.3 million for the third quarter of fiscal year 2007. Adjusted operating income for the third quarter was $186.8 million compared to $161.3 million for the third quarter last year, an increase of 16%. Reported net loss for the third quarter of fiscal year 2008 was $88.5 million compared to net income of $85.3 million for the third quarter of fiscal year 2007. Adjusted net income for the third quarter was $25.2 million compared to adjusted net income of $127.4 million for the same period last year. Adjusted earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Third Quarter Sales Performance Reconstructive Products Reconstructive device sales increased 18% worldwide to $448.8 million during the third quarter of fiscal year 2008 compared to $380.2 million for the third quarter of fiscal year 2007. Reconstructive device sales in the 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. increased 14% (14% excluding instruments) and international reconstructive device sales increased 23%. Excluding instruments and on a constant currency basis, worldwide reconstructive devices sales increased 14%. Knee sales increased 25% worldwide during the third quarter and increased 22% in the United States as compared to the third quarter of fiscal year 2007. Excluding instruments and on a constant currency basis, knee sales increased 21% worldwide and 23% in the United States. The acceleration in Biomet's knee sales continued during the third quarter as a result of increased market demand for the Oxford([R]) Partial Knee System and the Vanguard([TM]) Complete Knee System. The Vanguard([TM]) Complete Knee System is the only total knee replacement that allows for sizing of the femur femur (fē`mər): see leg. and tibia tibia: see leg. independently, providing complete component interchangeability for a precise fit. The Oxford([R]) System is the only free-floating mobile-bearing partial knee approved by the U.S. Food and Drug Administration. Outside the United States, the success of the Oxford([R]) Partial Knee with its excellent 20-year clinical results has contributed to the Oxford([R]) System becoming the most clinically proven and widely used partial knee system in the world. Hip sales increased 15% worldwide and 7% in the United States during the third quarter of fiscal year 2008, compared to the same period last year. Excluding instruments and on a constant currency basis, third quarter hip sales increased 12% worldwide and 8% in the United States. Key growth drivers in hips during the quarter were the M2a-Magnum([TM]) Acetabular acetabular /ac·e·tab·u·lar/ (as?e-tab´u-lar) pertaining to the acetabulum. acetabular pertaining to the acetabulum. acetabular dysplasia see hip dysplasia. System and the Taperloc([R]) Hip Stem, as well as the ReCap([R])Total Resurfacing System that is marketed outside the United States. Fixation Products Fixation sales increased 4% worldwide to $56.8 million during the third quarter compared to $54.6 million for the third quarter of fiscal year 2007. Fixation sales were flat in the United States during the quarter. Spinal Products Spinal product sales decreased 2% worldwide to $50.1 million during the third quarter as compared to $51.2 million for the third quarter of fiscal year 2007. Spinal product sales increased 1% in the United States during the third quarter. Other Products Sales of the Company's "other products" increased 9% worldwide to $47.4 million during the third quarter of fiscal year 2008 compared to $43.5 million during the same period of fiscal year 2007. Sales of "other products" increased 3% in the United States during the third quarter. Biomet's President and Chief Executive Officer Jeffrey R. Binder commented, "Our reconstructive device category performed extremely well during the third quarter, continuing the positive sales growth trend for both knees and hips with exceptionally strong knee sales. I am pleased to report that our trauma and spine business exhibited additional signs of stabilization during the quarter, further positioning these product categories for sustainable growth. In addition, we are very encouraged by the EBITDA growth and margin expansion we attained in the quarter." All trademarks herein are the property of Biomet, Inc. or its subsidiaries unless otherwise indicated. About Biomet Biomet, Inc. and its subsidiaries design, manufacture and market products used primarily by 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. medical specialists in both surgical and non-surgical therapy. Biomet's product portfolio encompasses reconstructive products, including orthopedic joint replacement devices, bone cements and accessories, autologous autologous /au·tol·o·gous/ (aw-tol´ah-gus) related to self; belonging to the same organism. au·tol·o·gous adj. 1. therapies and dental reconstructive implants; fixation products, including electrical bone growth stimulators, internal and external orthopedic fixation devices, craniomaxillofacial implants and bone substitute materials; spinal products, including spinal stimulation devices, spinal hardware and orthobiologics; and other products, such as 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. products and softgoods and bracing products. 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 70 countries. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements are often indicated by the use of words such as "will," "intend," "anticipate," "estimate," "expect," "plan" and similar expressions. Forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from those contemplated by the forward looking statements due to, among others, the following factors: the results of ongoing investigations by the United States Department of Justice “Justice Department” redirects here. For other uses, see Department of Justice. The United States Department of Justice (DOJ) is a Cabinet department in the United States government designed to enforce the law and defend the interests of the United States ; the ability to successfully implement new technologies; the Company's ability to sustain sales and earnings growth; the Company's success in achieving timely approval or clearance of its products with domestic and foreign regulatory entities; the stability of certain foreign economic markets; the impact of anticipated changes in the musculoskeletal industry and the ability of the Company to react to and capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. those changes; the ability of the Company to successfully implement its desired organizational changes; the impact of the Company's managerial changes; and other factors set forth in the Company's filings with the SEC, including the Company's most recent annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. (as amended) and quarterly reports on Form 10-Q Form 10-Q See 10-Q. . 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 as to the accuracy of forward-looking statements contained in this press release. 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. The Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements which speak only as of the date on which they were made. Use of non-GAAP Financial Information To supplement Biomet's consolidated financial statements presented on a reported basis, the Company discloses certain non-GAAP measures that exclude certain charges, including non-GAAP operating income and non-GAAP net income. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Biomet management believes that these non-GAAP measures provide useful information to investors; however, this additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for financial information prepared in accordance with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . A reconciliation of the non-GAAP financial measures to the corresponding GAAP measure is included in the tables below. [TABLE OMITTED] [TABLE OMITTED] |
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