Biomet Announces Record Second Quarter and First Half Results and the Completion of the Merger of Implant Innovations International Corporation -- ``3i''.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.--(BW HealthWire)--Dec. 16, 1999-- (Nasdaq:BMET BMET Biomedical Engineering Technology BMet Bachelor of Metallurgy BMET Bio-Medical Equipment Repair Technician ) Biomet, Inc. today reported record sales and earnings increases for its second quarter and first six months ended November 30, 1999. -0-
($000's Except Per Share Data)
Second Quarter Ended November 30:
1999 1998 Percent
---- ---- Increase
Net sales $202,480 $183,340 10%
Gross profit 141,789 127,755 11
Operating income 64,291 55,493 16
Net income 41,843 35,894 17
Basic earnings per share .37 .32 16
Diluted earnings per share .37 .32 16
U.S. sales $138,125 $125,169 10%
Foreign sales 64,355 58,171 11
Reconstructive sales $120,565 $109,628 10%
Fixation sales 43,329 38,899 11
Spinal products 12,951 11,062 17
Other product sales 25,635 23,751 8
Six Months Ended November 30:
1999 1998 Percent
---- ---- Increase
Net sales $394,631 $360,004 10%
Gross profit 277,104 250,902 10
Operating income 124,772 109,669 14
Net income 81,147 69,488 17
Basic earnings per share .72 .62 16
Diluted earnings per share .71 .61 16
U.S. sales $270,411 $245,055 10%
Foreign sales 124,220 114,949 8
Reconstructive sales $233,085 $213,376 9%
Fixation sales 85,363 78,341 9
Spinal products sales 25,119 20,819 21
Other product sales 51,064 47,468 8
Excluding the approximately $3 million effect of foreign currency translation adjustments to sales, 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 12% during the second quarter of fiscal year 2000. Increases in sales and earnings for the second quarter of fiscal year 2000, as compared to the same period in fiscal year 1999, were principally attributable to the continued market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" of the Company's 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. and 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. devices. -0-
BIOMET, INC. - - QUARTERLY RESULTS
FOR THE PERIODS ENDED NOVEMBER 30, 1999
(in thousands, except per share data)
Three Months Ended
November 30:
1999 1998 Percent
---- ---- Change
Net Sales $202,480 $183,340 10%
Cost of Sales 60,691 55,585 9
-------- --------
Gross Profit 141,789 127,755 11
S, G, & A 69,194 63,100 10%
R & D 8,304 9,162 (9)
-------- --------
Operating Income 64,291 55,493 16
Income, net 4,864 4,575 6%
-------- --------
Income Before Taxes
and Minority Interest 69,155 60,068 15
Income Taxes 25,467 22,118 15
-------- --------
Income Before
Minority Interest 43,688 37,950 15
Minority Interest 1,845 2,056 (10)
-------- --------
Net Income 41,843 35,894 17
Earnings per Share:
Basic .37 .32 16%
Diluted .37 .32 16
Six Months Ended
November 30:
1999 1998 Percent
---- ---- Change
Net Sales $394,631 $360,004 10%
Cost of Sales 117,527 109,102 8
-------- --------
Gross Profit 277,104 250,902 10
S, G, & A 135,490 123,979 9%
R & D 16,842 17,254 (2)
-------- --------
Operating Income 124,772 109,669 14
Income, net 7,983 7,419 8%
-------- --------
Income Before Taxes
and Minority Interest 132,755 117,088 13
Income Taxes 48,347 43,214 12
-------- --------
Income Before
Minority Interest 84,408 73,874 14
Minority Interest 3,261 4,386 (26)
-------- --------
Net Income 81,147 69,488 17
Earnings per Share:
Basic .72 .62 16%
Diluted .71 .61 16
Biomet is also pleased to announce the completion of the merger of Implant implant /im·plant/ (im-plant´) to insert or to graft (tissue, or inert or radioactive material) into intact tissues or a body cavity. Innovations International Corporation ("3i") into a wholly-owned subsidiary of Biomet. A favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. vote on the merger was obtained from 3i shareholders at a special meeting of 3i's shareholders held on December 15, 1999, and the consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the merger was completed immediately following the meeting. As previously announced, the shareholders of 3i received 5.2 million common shares of Biomet and the transaction is being accounted for as a pooling-of-interests. The following tables incorporate 3i's operations with Biomet's for the three and six-month periods in fiscal year 2000 and fiscal year 1999. All of 3i's revenues are included in the reconstructive device category due to the fact that 3i's products are used in elective elective non-urgent; at an elected time, e.g. of surgery. elective adjective Referring to that which is planned or undertaken by choice and without urgency, as in elective surgery, see there noun Graduate education noun , reconstructive procedures of the jaw. Biomet will take a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charge of approximately $2.7 million for merger related costs during the third quarter of fiscal year 2000. This charge will be a one-time charge in the third quarter and will not affect future quarters for Biomet. -0-
BIOMET, INC. - - SUPPLEMENTARY PRO FORMA QUARTERLY RESULTS
FOR THE PERIODS ENDED NOVEMBER 30, 1999
(in thousands, except per share data)
Three Months Ended
November 30:
1999 1998 Percent
---- ---- Change
Net Sales $ 224,747 $ 201,459 12%
Cost of Sales 68,398 63,766 7
--------- ---------
Gross Profit 156,349 137,693 14
S, G, & A 78,193 69,937 12
R & D 9,148 9,963 (8)
--------- ---------
Operating Income 69,008 57,793 19
Income, Net 4,410 4,310 2
--------- ---------
Income Before Taxes
and Minority Interest 73,418 62,103 18
Income Taxes 27,087 22,897 18
--------- ---------
Income Before
Minority Interest 46,331 39,206 18
Minority Interest 1,845 2,056 (10)
--------- ---------
Net Income 44,486 37,150 20
Earnings per Share:
Basic .38 .32 19
Diluted .38 .31 23
U.S. sales $ 149,926 $ 134,894 11%
Foreign sales 74,821 66,565 12
Reconstructive sales $ 142,831 $ 127,747 12
Fixation sales 43,329 38,899 11
Spinal product sales 12,951 11,062 17
Other product sales 25,635 23,751 8
Six Months Ended
November 30:
1999 1998 Percent
---- ---- Change
Net Sales $ 437,456 $ 394,368 11%
Cost of Sales 132,864 124,790 6
--------- ---------
Gross Profit 304,592 269,578 13
S, G, & A 153,014 137,295 11%
R & D 18,575 18,821 (1)
--------- ---------
Operating Income 133,003 113,462 17
Income, Net 7,028 6,956 1%
--------- ---------
Income Before Taxes
and Minority Interest 140,031 120,418 16
Income Taxes 51,112 44,491 15
--------- ---------
Income Before
Minority Interest 88,919 75,927 17
Minority Interest 3,261 4,386 (26)
--------- ---------
Net Income 85,658 71,541 20
Earnings per Share:
Basic .73 .62 18%
Diluted .72 .60 20
U.S. sales $ 293,116 $ 263,538 11%
Foreign sales 144,340 130,830 10
Reconstructive sales $ 275,909 $ 247,740 11%
Fixation sales 85,363 78,341 9
Spinal product sales 25,119 20,819 21
Other product sales 51,064 47,468 8
Lastly, Biomet announced today that its Board of Directors has adopted a Shareholder Rights Plan (the "Plan") to replace a 1989 rights plan that expired December 2, 1999. The purpose of the Plan is to deter certain coercive co·er·cive adj. Characterized by or inclined to coercion. co·er  cive·ly adv. takeover tactics and enable the Board of
Directors to represent effectively the interest of shareholders in the
event of a takeover attempt Noun 1. takeover attempt - an attempt to take control of a corporationbear hug - a takeover bid so attractive that the directors of the target company must approve it or risk shareholder protest . The Plan does not deter negotiated mergers or business combinations that the Board of Directors determines to be in the best interests of the Company and its shareholders. The adoption of the Plan is not in response to any specific acquisition proposal and the Company is not aware of plans or proposals for the acquisition of control of Biomet. Under the Plan, rights will attach to the outstanding common shares at the rate of one right for each share held by shareholders of record at the close of business on December 28,1999. The rights will become exercisable only if a person or group of affiliated persons Affiliated Person An individual who is in a position to influence the actions of a corporation. This includes people such as directors, executives, and owners. Notes: Depending on the context, an affiliated person might be referred to simply as an "affiliate. (an "Acquiring Person") acquires 15% or more of Biomet's common shares or announces a tender offer or exchange offer that would result in the acquisition of 30% or more of the outstanding common shares. At that time, the rights may be redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. at the election of the Board of Directors of the Company. If not redeemed, then prior to the acquisition by such person of 50% or more of the outstanding common shares of Biomet, the Company may exchange the rights (other than rights owned by Acquiring Person, which would have become void) for common shares (or other securities) of the Company on a one-for-one basis. If not exchanged, the rights may be exercised and the holders may acquire preferred share units or common shares of the Company having a value of two times the exercise price of $175. Each preferred share unit carries the same voting rights Voting rights The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. voting rights The type of voting and the amount of control held by the owners of a class of stock. as one common share. If the Acquiring Person engages in a merger or other business combination with the Company, the rights would entitle en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: the holders to acquire shares of the Acquiring Person having a market value equal to twice the exercise price of the rights. The Plan will expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. in December 2009. The distribution of the rights is not a taxable event Taxable event An event or transaction that has a tax consequence, such as the sale of stock holding that is subject to capital gains taxes. for shareholders of 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, 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 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, spinal implants, bone cements, bone substitutes, craniomaxillofacial implants and dental implants dental implant n. An artificial tooth that is anchored in the gums or jawbone to replace a missing tooth. dental implant 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. Web site: www.biomet.com or e-mail investor.relations@biometmail.com |
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