Biomet Announces Record Fourth Quarter and Fiscal Year End Results, Cash Dividend and Expansion of Its Share Repurchase Program.Business & Health/Medical Editors Biomet, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : 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 ten cents Ten Cents has several meanings:
Additionally, the Board of Directors authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the purchase of up to an additional $100 million of the outstanding Common Shares of the Company in open market or privately negotiated transactions. The number of shares repurchased, if any, will be dependent upon market conditions. Purchases may be made from time to time between July 3, 2002 and July 2, 2003. The Company has purchased approximately $210 million of the $224 million authorized in its previous share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. programs announced in December 2001 and March 2002. Dane A. Miller, Ph.D., President and Chief Executive Officer said, "The declaration of this dividend is an expression of appreciation for the continued support of our shareholders and is further reinforced by the Company's record financial performance throughout fiscal year 2002 and our optimism for continued strong results as we enter fiscal year 2003. The expansion of our stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program is a reflection of today's poor investment return environment and the Company's continued positive cash flow." Biomet today also reported record sales and earnings results for its fiscal year and fourth quarter ended May 31, 2002. During the fourth quarter, 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 13% to $325,884,000. Excluding non-recurring charges, 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. increased 18% to $103,031,000, while net income increased 12% to $66,501,000 and earnings per share increased 14% to $.25. During the fourth quarter, Biomet recorded a one-time, pre-tax charge of $9 million as a result of equity write-downs in Selective Genetics and other marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has . The write-down of the Selective Genetics equity investment is based on a revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. due to Selective Genetics' recent round of internal financing internal financing The financing of asset purchases with funds generated in the usual course of operations rather than funds that are borrowed or raised from the issuance of stock. . Notwithstanding the equity write-down, Biomet continues to have confidence in gene therapy treatment modalities treatment modality Medtalk The method used to treat a Pt for a particular condition 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. indications. As a result of this charge, reported net income for the fourth quarter amounted to $60,601,000, while reported 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 represented $.23. Additionally, Biomet will adopt FASB Statement FASB Statement A standard set by the Financial Accounting Standards Board regarding a financial accounting and reporting method. Essentially, FASB statements determine the acceptable accounting practices that Certified Public Accountants use in reporting No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. " during fiscal year 2003. We believe that the adoption of FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). 142 will reduce Biomet's intangible amortization expense by approximately $1.5 million per quarter. 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 $2.4 million and $4.2 million, respectively, net sales increased 16% during the fourth quarter of fiscal year 2002, led by strong growth in reconstructive and spinal product lines. 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 14.5% and 18.6%, respectively. The discontinued products represent general surgery products which were distributed in Portugal through Biomet Merck and were included in the "other product" category. Unless otherwise noted, all of the following percentages are quoted on a constant-currency basis and adjusted for discontinued products, as previously discussed. Worldwide sales of Biomet's reconstructive devices increased 20.5% during the fourth quarter of fiscal year 2002 to $200,173,000. Reconstructive devices were led by total hip sales, which increased 24% worldwide and 17% in the United States during the fourth quarter. Biomet's hip performance continues to be driven by the Company's cementless hip systems led by the Bi-Metric(R), TaperLoc(R) and Mallory Head(R) total hip systems, in addition to the M2a(TM) 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. Total knee sales increased 19% worldwide and 15% in the United States during the fourth quarter. Knee sales were led by the Repicci II(TM) Minimally Invasive Unicondylar Knee System and the Ascent(TM) Total Knee System. Dental reconstructive implants increased 21% in the U.S. and 20% worldwide during the fourth quarter of fiscal year 2002. The strong growth of dental reconstructive implants continues to be 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 and the OSSIX(TM) Resorbable Membrane. Bone cement and accessories increased 20% worldwide and 29% in the United States during the fourth quarter of fiscal year 2002 principally as a result of continued strong market acceptance of the Optivac(R) Preparation System and the Company's broad platform of bone cements. Fixation fixation: see psychoanalysis. sales increased 1% to $55,114,000 during the fourth quarter of fiscal year 2002. In the United States, fixation sales increased 6% and were led by sales of electrical stimulation products which increased 10% worldwide during the fourth quarter of fiscal year 2002. 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 11% worldwide and 10% in the United States during the fourth quarter; 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 6% worldwide and 16% in the United States during the fourth quarter, while craniomaxillofacial sales decreased 36% worldwide and 22% in the United States. Spinal sales increased 23% to $35,510,000 during the fourth quarter. Spinal sales in the United States increased 18% during the fourth quarter principally as a result of continued strong performance with EBI's non-invasive SpinalPak Spinal Stimulation System and the VueLock(TM) Anterior anterior /an·te·ri·or/ (an-ter´e-or) situated at or directed toward the front; opposite of posterior. an·te·ri·or adj. 1. Placed before or in front. 2. Cervical Plate System. Worldwide sales of spinal implants increased 27%, while worldwide sales of spinal stimulation devices increased 22%. Sales of Biomet's "other products" increased 9% during the fourth quarter of fiscal year 2002 to $35,087,000. Other product sales in the United States increased 13% during the fourth quarter. 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 17% worldwide and 14% in the United States during the recently completed quarter as a result of Arthrotek's procedure-specific products, and the LactoSorb(R) line of resorbable arthroscopic products. Softgoods and bracing bracing, n a resistance to the horizontal components of masticatory force. products rose 11% worldwide and 13% in the United States. 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. 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 (574) 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 (574) 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. All 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, 2002 May 31, 2001
------------------------------------ ------------
Before
Non-Recurring Non-Recurring
Charges Charges As Reported As Reported
Net Sales $325,884 $325,884 $288,006
Cost of Sales 91,063 91,063 81,827
---------- ---------- ----------
Gross Profit 234,821 234,821 206,179
S, G, & A 116,885 116,885 107,704
R & D 14,905 14,905 11,487
---------- ---------- ----------
Operating
Income 103,031 103,031 86,988
Other Income
(Loss), Net 2,614 (9,000) (6,386) 5,882
---------- ---------- ---------- ----------
Income Before
Taxes And
Minority
Interest 105,645 (9,000) 96,645 92,870
Income Taxes 35,965 3,100 32,865 31,282
---------- ---------- ---------- ----------
Income Before
Minority
Interest 69,680 (5,900) 63,780 61,588
Minority
Interest 3,179 3,179 2,472
---------- ---------- ---------- ----------
Net Income 66,501 (5,900) 60,601 59,116
Earnings per Share
Basic .25 .23 .22
Diluted .25 .23 .22
Basic Shares 265,272 265,272 268,756
Diluted Shares 267,745 267,745 271,933
U.S. sales $230,673 $201,515
Foreign sales 95,211 86,491
Reconstructive
sales $200,173 $167,760
Fixation sales 55,114 54,848
Spinal products 35,510 28,873
Other product sales 35,087 36,525
BIOMET, INC. - - ANNUAL RESULTS
FOR THE YEARS ENDED MAY 31
(in thousands, except per share data)
May 31, 2002
---------------------------------------------
Before
Non-Recurring Non-Recurring
Charges Charges As Reported
Net Sales $1,191,902 $1,191,902
Cost of Sales 332,727 332,727
---------- ----------
Gross Profit 859,175 859,175
S, G, & A 437,731 437,731
R & D 50,750 50,750
---------- ----------
Operating Income 370,694 370,694
Other Income (Loss), Net 14,421 (9,000) 5,421
---------- ---------- ----------
Income Before Taxes
And Minority Interest 385,115 (9,000) 376,115
Income Taxes 130,765 3,100 127,665
---------- ---------- ----------
Income Before
Minority Interest 254,350 (5,900) 248,450
Minority Interest 8,710 8,710
---------- ---------- ----------
Net Income 245,640 (5,900) 239,740
Earnings per Share
Basic .92 .89
Diluted .91 .88
Basic Shares 268,474 268,474
Diluted Shares 271,245 271,245
U.S. sales $ 856,375
Foreign sales 335,527
Reconstructive sales 721,004
Fixation sales 215,544
Spinal products 125,119
Other product sales 130,235
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 (Loss), 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
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
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion