Exactech Q1 Revenue Increases 34% to $39.8 Million.Net Income up 49% to $2.8 Million and EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $0.23GAINESVILLE, Fla. -- Exactech, Inc. (Nasdaq:EXAC), a developer and producer of bone and joint restoration products for hip, knee, shoulder, spine and biologic materials, announced today revenue of $39.8 million for the first quarter of 2008, an increase of 34% compared to $29.6 million for the first quarter of 2007. Net income for the quarter was $2.8 million, or $0.23 per 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. share, a gain of 49% from the $1.9 million, or $0.16 per diluted share, in the same quarter a year ago. First quarter 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 included a gain of $0.03 due to a forward currency call option and a loss of $0.01 per share due to Exactech's minority investment in Altiva prior to the acquisition. First Quarter Highlights and Segment Performance * First quarter revenue increased 34% to $39.8 million * Revenue exclusive of acquisition for Q1 up 28% to $37.8 million * Net income increased 49% to $2.8 million * Diluted earnings per share increased 45% to $0.23 * Knee implant implant /im·plant/ (im-plant´) to insert or to graft (tissue, or inert or radioactive material) into intact tissues or a body cavity. revenue increased 18% to $18.5 million * Hip implant revenue increased 16% to $6.4 million * Biologic services revenue up 34% to $4.7 million * Shoulder implant revenue increased 132% to $3.7 million * Initial revenue of $2.0 million in spine product sales from Altiva Corporation Exactech Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Bill Petty Petty girl airbrushed beauty, scantily clad in Esquire’s pages. [Am. Lit.: Misc.] See : Sex Symbols said, "Strong growth in all major product lines demonstrates that our customer centric focus is increasing Exactech's market share. Sales from knee implants increased 18% to $18.5 million from $15.7 million during the first quarter of 2007, due to the continued strength of our flagship Optetrak([R]) knee system both domestically and internationally. Our hip implant sales for the first quarter were $6.4 million, a 16% increase from revenue of $5.5 million in the first quarter of 2007, as our Novation The substitution of a new contract for an old one. The new agreement extinguishes the rights and obligations that were in effect under the old agreement. A novation ordinarily arises when a new individual assumes an obligation to pay that was incurred by the original party ([R]) hip products continue to gain 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" . Biologic services revenue was up 34% to $4.7 million from $3.5 million in the same quarter last year. Shoulder implants increased to $3.7 million, a 132% increase from last year's revenue of $1.6 million, as a result of the continued momentum of our Equinoxe([R]) reverse shoulder products. Other products increased 100% to $6.6 million, which included $2.0 million in 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. revenue from our recent acquisition of Altiva Corporation." Exactech President David Petty said, "The start-up of new distributors in Europe spurred a 67% increase in our international sales to $11.5 million from $6.9 million during 2007. International sales for the quarter represented 29% of total sales, compared with 23% in the same quarter last year. Our U.S. sales, including spine revenue, increased to $28.3 million during the first quarter from $22.7 million during the first quarter of 2007." Chief Financial Officer Jody Phillips said, "Our net income for the quarter was up 49% to $2.8 million from $1.9 million in the same quarter last year. This was partially attributable to a $300,000 after tax gain from a forward currency call option we entered into in anticipation of our French distributor acquisition. Our net income was also impacted by a loss on minority interest of $98,000, as a result of stock compensation expenses incurred by Altiva prior to our acquisition of the company. As a percent of sales, net income for the quarter was 7.0% compared to 6.4% in the prior year. Gross margins decreased to 62.9% in 2008 from 63.3% in 2007, primarily as a result of strong international sales growth. "Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the quarter were $20.6 million, an increase of 35% from $15.3 million in the comparable period but constant as a percent of sales at 51.6%. These operating expenses included expenses from Altiva. Total sales and marketing expenses were up 35%, but remained relatively unchanged as a percentage of sales. General and administrative expenses, including increased legal fees, increased 33% in the first quarter to $3.9 million from $3.0 million during the first quarter of 2007. Research and development expenses increased 50% to $2.6 million from $1.7 million in the first quarter of 2007, reflecting our continuing focus on development of products." Looking forward, Exactech continues to anticipate 30% to 36% revenue growth for the full year 2008, targeting a range of $162 million to $169 million and diluted earnings per share for the year 2008 in the range of $0.92 to $0.98. For the second quarter ending June 30, 2008, the company targets 27% to 36% revenue growth to the range of $40 million to $43 million and diluted earnings per share in the range of $0.22 to $0.24. The foregoing statements regarding targets for the quarter and full year are forward-looking and actual results may differ materially. These are the company's targets, not predictions of actual performance. The financial statements are below. The company has scheduled a conference call at 10:00 a.m. Eastern Time on Wednesday, April 30. The call will cover the company's first quarter results. CEO Bill Petty will open the conference call and a question-and-answer session will follow. To participate in the call, dial 800-762-8779 any time after 9:50 a.m. Eastern on April 30. International and local callers should dial 480-629-9041. While in conference, if callers should experience any difficulty or require operator assistance, they can press the asterisk (1) See Asterisk PBX. (2) In programming, the asterisk or "star" symbol (*) means multiplication. For example, 10 * 7 means 10 multiplied by 7. The * is also a key on computer keypads for entering expressions using multiplication. followed by the (0) button. This will call an operator to the line. A live webcast of the call will be available at http://viavid.net/dce.aspx?sid=00004E37. A podcast (iPOD broadCAST) An audio broadcast that has been converted to an MP3 file or other audio file format for playback in a digital music player or computer. The "pod" in podcast was coined from "iPod," the predominant portable, digital music player, and although podcasts are will be available approximately 15 minutes after the event ends and can be accessed at http://viavid.net/mp3/00004E37.mp3. Both will be archived for approximately 90 days. About Exactech Based in Gainesville, Fla., Exactech develops and markets orthopaedic implant devices, related 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. and biologic materials and services to hospitals and physicians. The company manufactures many of its orthopaedic devices at its Gainesville facility. Exactech's orthopaedic products are used in the restoration of bones and joints that have deteriorated as a result of injury or diseases such as arthritis arthritis, painful inflammation of a joint or joints of the body, usually producing heat and redness. There are many kinds of arthritis. In its various forms, arthritis disables more people than any other chronic disorder. . Exactech markets its products 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. and Australia, in addition to more than 30 markets in Europe, Asia and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . Additional information about Exactech, Inc. can be found at http://www.exac.com. Copies of Exactech's press releases, SEC filings, current price quotes and other valuable information for investors may be found at http://www.exac.com and http://www.hawkassociates.com. An investment profile on Exactech may be found at http://www.hawkassociates.com/profile/exac.cfm. Investors may contact Chief Financial Officer Jody Phillips at 352-377-1140 or Julie Marshall or Frank Hawkins Frank Hawkins Jr. (born July 3, 1959 in Las Vegas, Nevada) is a former American football running back who played seven seasons in the National Football League with the Oakland/Los Angeles Raiders. , Hawk hawk, name generally applied to the smaller members of the Accipitridae, a heterogeneous family of diurnal birds of prey, such as the eagle, the kite, the Old World vulture, and the secretary bird. Associates Inc., at 305-451-1888, e-mail: exactech@hawkassociates.com. To receive future releases in e-mail alerts, sign up at http://www.hawkassociates.com/about/alert. This release contains various 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, which represent the company's expectations or beliefs concerning future events of the company's financial performance. These forward-looking statements are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements. These factors include the effect of competitive pricing, the company's dependence on the ability of third party manufacturers to produce components on a basis which is cost-effective to the company, market acceptance of the company's products and the effects of government regulation. Results actually achieved may differ materially from expected results included in these statements. [TABLE OMITTED] [TABLE OMITTED] |
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