Biomet Announces Record Third Quarter and Nine Month 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 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. .--(BW HealthWire)--March 14, 2001 (Nasdaq:BMET BMET Biomedical Engineering Technology BMet Bachelor of Metallurgy BMET Bio-Medical Equipment Repair Technician ) Biomet announced record third quarter results with 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 increasing 14.3% to $266,276,000. Net income, excluding non-recurring charges, increased 23% to $55,405,000 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 , excluding non-recurring charges, increased 24% to $.31 per share. As previously announced, Biomet is recording a one-time pre-tax charge of $26.1 million in the third quarter of fiscal year 2001 associated with the U.S. Court of Appeals for the Federal Circuit's reversal concerning the Tronzo 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. . This charge to earnings does not affect the on-going sales of any of Biomet's product lines. As a result of this charge, reported net income for the third quarter of fiscal year 2001 amounts to $38,205,000, while reported diluted earnings per share is $.21. Notwithstanding this charge, Biomet has appealed the court's decision. Led by strong, balanced sales 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 19% during the third 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 third quarter sales by $8 million and $2.3 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 23% and 11%, respectively. Additionally, foreign currency reduced third 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 $1.5 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 resorbable (rēsor´b  b and
non-resorbable membranes utilized in dental reconstructive procedures.
3i has initiated internal development programs with respect to
resorbable and non-resorbable membranes, and has recently signed a
distribution agreement for a resorbable membrane called Ossix.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. Additionally, we are in the process of implementing a direct sales operation in Japan in order to strengthen the Company's position in this attractive international market. As a result, Biomet's international revenues during the third quarter 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 believe that the Company's long-term prospects in Japan will improve as a result of these changes." 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 reflect the reduction in revenues associated with Biomet's Japanese sales. Worldwide sales of Biomet's reconstructive devices increased 15% during the third quarter of fiscal year 2001 to $158,655,000. Reconstructive devices were led by total hip sales which increased approximately 18% in the United States and approximately 10% worldwide during the third quarter. Biomet is experiencing strong sales of the M2a 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. Additionally, the Company's revision total hip systems experienced robust sales growth during the third quarter. Total knee sales increased 15% in the United States and approximately 13% worldwide during the third quarter. Biomet's market-leading knee performance continues to be driven by the Repicci II Unicondylar Knee System, which is a 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. approach to knee replacement surgery, and the Ascent Total Knee System which has been introduced to the entire salesforce in the United States. Dental reconstructive implants, excluding discontinued products, increased 26% during the third quarter of fiscal year 2001. International sales of dental reconstructive implants increased 35%, while domestic sales increased approximately 17% led by the Osseotite 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 37% during the third quarter of fiscal year 2001. The domestic introduction of Palacos bone cement cement, binding material used in construction and engineering, often called hydraulic cement, typically made by heating a mixture of limestone and clay until it almost fuses and then grinding it to a fine powder. and the Optivac Preparation System continues to benefit 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 in the United States. Fixation sales increased 15% to $52,549,000 during the third quarter of fiscal year 2001. Fixation sales were led by sales of electrical stimulation systems which include both the EBI See electron beam imaging. Model 2001 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 and Biolectron's OrthoPak System. Electrical stimulation sales increased 22% during the recently completed quarter. As previously announced, the Company acquired Biolectron on September 25, 2000, and the third 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 13% worldwide and 8% in the United States led by the recent introduction of the Mimix 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 10% worldwide and 7% in the United States during the third 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 5% worldwide and 6% in the United States. Spinal sales increased 99% to $26,429,000 during the third quarter. Spinal sales in the United States increased 107%, with spinal implant sales increasing 58% and spinal stimulation sales increasing 131%. Spinal implant sales continue to benefit from EBI's expanded salesforce and new products such as the Omega 21 Spinal Fixation System and the VueLok 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. Spinal stimulation sales include EBI's SpF Spinal Fusion spinal fusion n. A surgical procedure in which vertebrae are joined. Also called spondylosyndesis. Spinal fusion Stimulation System and Biolectron's SpinalPak Spinal Stimulation System, allowing EBI's salesforce to position spinal fusion stimulation technology for use in either in-patient in·pa·tient or in-pa·tient n. A patient who is admitted to a hospital or clinic for treatment that requires at least one overnight stay. or outpatient outpatient /out·pa·tient/ (-pa-shent) a patient who comes to the hospital, clinic, or dispensary for diagnosis and/or treatment but does not occupy a bed. out·pa·tient n. settings. Sales of Biomet's "other products" increased 12% during the third quarter of fiscal year 2001 to $28,643,000. Other product sales in the United States increased 10%, while international sales of other products grew 16%. 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 28% worldwide and 40% in the United States in the recently completed quarter as a result of Arthrotek's procedure-specific products, the LactoSorb line of resorbable arthroscopic products, the introduction of the CurvTek 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, and the expansion of Arthrotek's dedicated salesforce. Softgoods products rose 16% worldwide and 16% in the United States during the recently completed quarter principally as a result of EBI's Support-On-Site (SOS SOS, code letters of the international distress signal. The signal is expressed in International Morse code as … — — — … (three dots, three dashes, three dots). ) stock and bill program. 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 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. 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.
BIOMET, INC. - - QUARTERLY RESULTS
FOR THE PERIODS ENDED FEBRUARY 28 & 29
(in thousands, except per share data)
Three Months Ended
------------------
February 28, 2001
-----------------------------------------
Before
Non-Recurring Non-Recurring
Charges Charges As Reported
Net Sales $266,276 $266,276
Cost of Sales 74,155 74,155
---------- ----------
Gross Profit 192,121 192,121
S, G, & A 96,975 26,100 123,075
R & D 11,374 11,374
---------- --------- ----------
Operating Income 83,772 26,100 57,672
Other Income, Net 3,926 3,926
---------- ----------
Income Before Taxes
And Minority Interest 87,698 26,100 61,598
Income Taxes 30,012 8,900 21,112
---------- --------- ----------
Income Before
Minority Interest 57,686 17,200 40,486
Minority Interest 2,281 2,281
---------- --------- ----------
Net Income 55,405 17,200 38,205
Earnings per Share:
Basic .31 .21
Diluted .31 .21
Basic Shares 178,830 178,830
Diluted Shares 181,020 181,020
U.S. sales $186,799
Foreign sales 79,477
Reconstructive sales $158,655
Fixation sales 52,549
Spinal products 26,429
Other product sales 28,643
Three Months Ended
------------------
February 29, 2000
-----------------
Before
Non-Recurring Non-Recurring
Charges Charges As Reported
-----------------------------------------
Net Sales $232,910 $232,910
Cost of Sales 70,393 70,393
---------- ----------
Gross Profit 162,517 162,517
S, G, & A 83,792 2,700 86,492
R & D 10,959 10,959
---------- --------- ----------
Operating Income 67,766 2,700 65,066
Other Income, Net 4,895 4,895
---------- ----------
Income Before Taxes
And Minority Interest 72,661 2,700 69,961
Income Taxes 26,317 1,000 25,317
---------- --------- ----------
Income Before
Minority Interest 46,344 1,700 44,644
Minority Interest 1,452 1,452
---------- --------- ----------
Net Income 44,892 1,700 43,192
Earnings per Share:
Basic .25 .24
Diluted .25 .24
Basic Shares 176,951 176,951
Diluted Shares 179,248 179,248
U.S. sales $152,804
Foreign sales 80,106
Reconstructive sales $146,828
Fixation sales 46,200
Spinal products 13,452
Other product sales 26,430
FOR THE PERIODS ENDED FEBRUARY 28 & 29
(in thousands, except per share data)
Nine Months Ended
-----------------
February 28, 2001
-----------------------------------------
Before
Non-Recurring Non-Recurring
Charges Charges As Reported
Net Sales $739,992 $739,992
Cost of Sales 211,571 211,571
---------- ----------
Gross Profit 528,421 528,421
S, G, & A 267,089 26,100 293,189
R & D 31,533 31,533
---------- --------- ----------
Operating Income 229,799 26,100 203,699
Other Income, Net 14,107 14,107
---------- ----------
Income Before Taxes
And Minority Interest 243,906 26,100 217,806
Income Taxes 83,524 8,900 74,624
---------- --------- ----------
Income Before
Minority Interest 160,382 17,200 143,182
Minority Interest 4,752 4,752
---------- --------- ----------
Net Income 155,630 17,200 138,430
Earnings per Share:
Basic .87 .78
Diluted .86 .77
Basic Shares 178,422 178,422
Diluted Shares 180,374 180,374
U.S. sales $518,191
Foreign sales 221,801
Reconstructive sales $446,548
Fixation sales 147,304
Spinal products 62,230
Other product sales 83,910
Nine Months Ended
-----------------
February 29, 2000
-----------------------------------------
Before
Non-Recurring Non-Recurring
Charges Charges As Reported
Net Sales $670,366 $670,366
Cost of Sales 203,256 203,256
---------- ----------
Gross Profit 467,110 467,110
S, G, & A 236,807 11,700 248,507
R & D 29,534 29,534
---------- --------- ----------
Operating Income 200,769 11,700 189,069
Other Income, Net 11,923 11,923
---------- ----------
Income Before Taxes
And Minority Interest 212,692 11,700 200,992
Income Taxes 77,429 4,300 73,129
---------- --------- ----------
Income Before
Minority Interest 135,263 7,400 127,863
Minority Interest 4,713 4,713
---------- --------- ----------
Net Income 130,550 7,400 123,150
Earnings per Share:
Basic .74 .70
Diluted .73 .69
Basic Shares 175,736 175,736
Diluted Shares 178,540 178,540
U.S. sales $445,920
Foreign sales 224,446
Reconstructive sales $422,738
Fixation sales 131,563
Spinal products 38,571
Other product sales 77,494
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