Biomet Announces Record Third Quarter Results and Expansion of Its Share Repurchase Program.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 IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. . -- (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 ) Biomet Biomet, Inc. NASDAQ: BMET is a medical device manufacturer located in Warsaw, Indiana. The company specializes in reconstructive products for hips, knees and shoulders, fixation devices, orthopedic support devices, dental implants and operating room supplies. , Inc. today reported record sales and earnings results for its third quarter ended February February: see month. 28, 2005. 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 18% to $482,023,000, while 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 9% to $144,270,000 and increased 14%, as adjusted, to $151,672,000. Net income increased 12% to $96,784,000 and increased 17%, as adjusted, to $101,615,000, while 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 12% to $0.38 and increased 18%, as adjusted, to $0.40. The Company's reported results reflect the acquisition of Merck Merck may refer to:
A scheduled increase in the exercise or conversion price at which a warrant, an option, or a convertible security may be used to acquire shares of common stock. and write off of in-process research and development. A reconciliation to comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measures is included in this press release. 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 Company's outstanding Common Shares in open market or privately negotiated transactions. This is in addition to the July 2004 authorizations to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. $100 million, in which approximately $41.8 million is still available, and 2.5 million shares to be automatically purchased in equal increments on a daily basis through July 2005. Purchases of the additional $100 million of Common Shares, if any, will be dependant on Adj. 1. dependant on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, contingent upon, dependant upon, dependent on, dependent upon, depending on, contingent market conditions and may be made from time to time between March 21, 2005 and March 20, 2006. In aggregate, the Company has purchased approximately $764 million representing 24.3 million of its Common Shares 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 since December 2001. Dane A. Miller, Ph.D., Biomet's President and Chief Executive Officer stated, "We are pleased with Biomet's third quarter operating results which continue to be led by strong growth in 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: , 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. hardware and orthobiologic product lines. Continued market acceptance of recently introduced products and minimally invasive invasive /in·va·sive/ (-siv) 1. having the quality of invasiveness. 2. involving puncture of the skin or insertion of an instrument or foreign material into the body; said of diagnostic techniques. knee and hip instruments propelled the growth of the Company's reconstructive product lines during the third quarter. In the important domestic market for reconstructive devices, Biomet's reconstructive product sales increased 22% during the third quarter. Worldwide reconstructive sales, excluding dental, increased 19% constant currency during the recently completed quarter. Additionally, sales of the Company's spinal hardware and orthobiologic spinal products increased 117% worldwide during the third quarter as Biomet continues to broaden its line of spinal products and technologies through the recent acquisition of Interpore International, Inc." Excluding the impact of foreign currency, which increased third quarter sales by $11.2 million, net sales increased 15% during the third quarter of fiscal year 2005. 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, increased 15% and 14%, respectively, during the third quarter. Additionally, excluding the impact of the acquisition of Interpore International, Inc., United States and international sales each increased 12%. Reconstructive device sales increased 21% worldwide to $326,220,000 during the third quarter of fiscal year 2005. On a constant currency basis, worldwide reconstructive device sales increased 17%. Knee sales increased 31% worldwide during the third quarter and 36% in the United States. Knee sales increased 27% worldwide, constant currency. Biomet's industry-leading knee sales growth continues to be driven by new product introductions, in addition to the Company's broad line of total knee systems and minimally invasive, unicondylar knee systems. Additionally, Biomet's Microplasty minimally invasive and quad-sparing total knee instruments continue to receive excellent market acceptance. During the third quarter, hip sales increased 11% worldwide and 5% in the United States. Excluding the impact of foreign currency, hip sales increased 8% worldwide. Biomet's M2a-38(TM) Metal-on-Metal System and the Company's broad line of porous-coated stems continue to lead hip sales growth. Extremity extremity /ex·trem·i·ty/ (eks-trem´i-te) 1. the distal or terminal portion of elongated or pointed structures. 2. limb. ex·trem·i·ty n. 1. sales increased 10% worldwide during the third quarter of fiscal year 2005 and 4% in the United States. On a constant currency basis, extremity sales increased 7% worldwide. Sales of dental reconstructive implants increased 10% worldwide and 11% in the United States during the third quarter. Worldwide 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. sales increased 6%, constant currency. Sales of bone cements and accessories increased 36% worldwide during the third quarter and 78% in the United States. Excluding the effect of foreign currency, sales of bone cements and accessories increased 30% worldwide. Fixation fixation: see psychoanalysis. sales were down 1% to $62,090,000 during the third quarter of fiscal year 2005 and decreased 2% worldwide, constant currency. Lorenz Surgical's craniomaxillofacial fixation sales increased 14% worldwide and 6% in the United States during the third quarter. Worldwide craniomaxillofacial fixation sales increased 12%, constant currency. Sales of electrical stimulation products decreased 8% worldwide and in the United States during the third quarter. 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 decreased 6% during the third quarter and decreased 12% in the United States. Excluding the impact of foreign currency, external fixation sales decreased 7% worldwide. 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 5% worldwide during the third quarter and decreased 14% in the United States. On a constant currency basis, worldwide internal fixation sales increased 2% during the third quarter. Spinal product sales increased 34% to $52,615,000 and increased 26% in the United States during the third quarter of fiscal year 2005. Spinal sales increased 33% worldwide, constant currency. Domestic sales of spinal implants and orthobiological products for the spine increased 117%, while domestic spinal stimulation sales decreased 11% during the third quarter. Sales of Biomet's "other products" increased 8% to $41,098,000 and increased 6% in the United States during the third quarter of fiscal year 2005. On a constant currency basis, "other product" sales increased 6% worldwide. 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 10% worldwide and in the United States during the third quarter. On a constant currency basis, arthroscopy sales increased 9% during the third quarter of fiscal year 2005. Softgoods and bracing bracing, n a resistance to the horizontal components of masticatory force. sales decreased 3% worldwide, in the United States and on a constant currency basis during the third quarter. Dr. Miller concluded, "Biomet continues to experience strong growth in its reconstructive, spinal hardware and orthobiological product segments. Consequently, we remain comfortable with the range of the analysts' sales and earnings estimates of $503 million to $530 million and $0.42 to $0.44 per share for the fourth quarter of fiscal year 2005." 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. The Company's product portfolio encompasses reconstructive products, including orthopedic orthopedic /or·tho·pe·dic/ (-pe´dik) pertaining to the correction of deformities of the musculoskeletal system; pertaining to orthopedics. joint replacement devices, bone cements and accessories, 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 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 100 countries. For further information contact Greg W. Sasso, Vice President, Corporate Development and Communications at (574) 372-1528 or Barbara 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 a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . 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. Some of the factors that could cause actual results to differ from those contained in forward-looking statements made in this press release include the success of the Company's principal product lines, the Company's ability to develop and market new products and technologies in a timely manner, government regulation, currency exchange rate fluctuations, reimbursements from third party payors, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , and other risk factors as set forth from time to time in the Company's filings with the SEC. 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 publicly update forward-looking statements, whether as a result of new information, future events or otherwise. 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 THREE AND NINE MONTHS ENDED FEBRUARY 28
(in thousands, except per share data)
Three Months Ended Nine Months Ended
------------------ ---------------------
2005 2004 2005 2004
-------- -------- --------- -----------
Net Sales $482,023 $410,185 $1,376,857 $1,168,065
Cost of Sales 130,666 115,992 373,349 330,400
Cost of Sales, current period
impact of inventory step-up 7,402 -- 21,806 --
-------- -------- ---------- -----------
Gross Profit 343,955 294,193 981,702 837,665
S, G, & A 179,224 145,712 505,989 414,773
R & D 20,461 15,892 58,543 46,450
In-process research and
development -- -- 26,020 --
-------- -------- ---------- -----------
Operating Income 144,270 132,589 391,150 376,442
Other Income (Expense), Net 2,641 3,570 2,157 10,260
-------- -------- ---------- -----------
Income Before Taxes
And Minority Interest 146,911 136,159 393,307 386,702
Income Taxes 52,698 47,430 152,465 134,659
Income Taxes related to
inventory step-up (2,571) -- (7,574) --
-------- -------- ---------- -----------
Income Before
Minority Interest 96,784 88,729 248,416 252,043
Minority Interest -- 2,129 -- 6,273
-------- -------- ---------- -----------
Net Income 96,784 86,600 248,416 245,770
Earnings per Share
Basic .38 .34 .98 .96
Diluted .38 .34 .97 .95
Basic Shares Outstanding 252,182 255,110 253,000 255,916
Diluted Shares Outstanding 253,994 257,244 255,029 257,892
U.S. sales $313,204 $271,520 $918,514 $788,317
Foreign sales 168,819 138,665 458,343 379,748
Reconstructive sales $326,220 $270,203 $910,087 $755,726
Fixation sales 62,090 62,460 185,131 184,889
Spinal product sales 52,615 39,322 158,756 116,267
Other product sales 41,098 38,200 122,883 111,183
Consolidated Balance Sheets February 28, 2005 May 31, 2004
Assets
Cash and Investments $172,763 $235,612
Accounts and notes receivable, net 489,467 465,949
Inventories 456,612 389,391
Other current assets 118,210 91,256
Fixed Assets, net 314,718 268,826
Goodwill 440,896 266,860
Other Assets 105,063 69,803
----------------- ------------
Total Assets $2,097,729 $1,787,697
================= ============
Liabilities and Stockholders' Equity
Current Liabilities $526,970 $313,402
Other Liabilities 32,346 26,085
Stockholders' Equity 1,538,413 1,448,210
----------------- ------------
Total Liabilities and Stockholders'
Equity $2,097,729 $1,787,697
================= ============
The above balance sheet includes the preliminary purchase price
allocation in connection with the Interpore acquisition. The Company
believes that changes, if any, when the purchase price allocation is
finalized, will not be material.
Management uses non-GAAP financial measures, such as net sales, excluding the impact of foreign currency, operating income, as adjusted, net income, as adjusted, and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earning per share Noun 1. earning per share - the portion of a company's profit allocated to each outstanding share of common stock net income, net profit, profit, profits, earnings, lucre, net - the excess of revenues over outlays in a given period of time (including depreciation , as adjusted. The term "as adjusted", a non-GAAP financial measure, refers to financial performance measures that exclude the following charges: (a) the current period impact of inventory step-up related to the acquisition of the interest of Merck KGaA This article needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. in the Biomet Merck joint venture and Interpore International, Inc.; (b) In-process research and development written off as of the closing date related to the acquisition of Interpore International, Inc.; and (c) Tax effect of item (a) above. Inventory stepped-up to its current fair market value in an acquisition and subsequently sold, results in a higher cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold during the periods in which the stepped-up inventory is sold, thus overstating cost of goods sold and understating gross margins versus historical and future periods in which the inventory sold represents the actual cost of products manufactured. In-process research and development written off as of the closing date of an acquisition is a one time event that is not indicative of future results. The Company's management believes that the presentation of these measures provides useful information to investors. These measures may assist investors in evaluating the Company's operations, period over period. Management uses these measures internally for evaluation of the performance of the business, including the allocation of resources allocation of resources Apportionment of productive assets among different uses. The issue of resource allocation arises as societies seek to balance limited resources (capital, labour, land) against the various and often unlimited wants of their members. and the evaluation of results relative to team member performance compensation targets. Investors should consider these non-GAAP measures only as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP.
BIOMET, INC.
Reconciliation of non-GAAP financial information
to GAAP financial information
FOR THE THREE AND NINE MONTHS ENDED FEBRUARY 28
(in thousands, except per share data)
Three Months Nine Months
-------------------- -------------------
Percent of Percent of
Amount Sales Amount Sales
--------- ---------- -------- ----------
Operating income, as reported $144,270 29.9% $391,150 28.4%
Inventory step-up 7,402 1.5 21,806 1.6
In-process research and
development -- -- 26,020 1.9
--------- --------- --------- ----------
Operating income, as adjusted $151,672 31.4% $438,976 31.9%
Net income, as reported $96,784 20.1% $248,416 18.0%
Inventory step-up 7,402 1.5 21,806 1.6
In-process research and
development -- -- 26,020 1.9
Tax effect of inventory
step-up (2,571) (0.5) (7,574) (0.5)
--------- --------- --------- ----------
Net income, as adjusted $101,615 21.1% $288,668 21.0%
Three Months Nine Months
--------------- ---------------
Basic Diluted Basic Diluted
------- ------- ------- -------
Diluted earnings per share, as reported $0.38 $0.38 $0.98 $0.97
Inventory step-up 0.03 0.03 0.09 0.09
In-process research and development -- -- 0.10 0.10
Tax effect of inventory step-up (0.01) (0.01) (0.03) (0.03)
------- ------- ------- -------
Diluted earnings per share, as adjusted $0.40 $0.40 $1.14 $1.13
Sales Sales Sales Sales
Growth Growth in Growth Growth in
As FX Local As FX Local
Reported Impact Currencies Reported Impact Currencies
Three Months Nine Months
--------------------------- ---------------------------
U.S. sales 15% 0% 15% 17% 0% 17%
Foreign sales 22 8 14 21 8 13
Total sales 18 3 15 18 2 16
Reconstructive
sales 21% 4% 17% 20% 3% 17%
Fixation sales (1) 1 (2) 0 1 (1)
Spinal product
sales 34 1 33 37 1 36
Other product
sales 8 2 6 11 2 9
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion