Biomet Announces Fourth Quarter And Fiscal Year-End Results
July 28, 2016 at 4:25 p.m.
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Reported operating income for the fourth quarter of fiscal year 2007 was $54,473,000 compared to $150,605,000 for the fourth quarter of fiscal year 2006. Adjusted operating income, excluding special charges and stock compensation expense, was $142,101,000 for the fourth quarter of fiscal year 2007 compared to $166,500,000 for the fourth quarter of fiscal year 2006. Reported net income for the fourth quarter of fiscal year 2007 was $41,490,000, or $0.17 per share compared to $100,367,000 or $0.41 per share for the fourth quarter of fiscal year 2006. Adjusted net income for the quarter, excluding special charges and stock compensation expense, was $95,805,000, or $0.39 per share. Adjusted net income for the fourth quarter of fiscal year 2006 was $113,002,000, or $0.46 per share.
Reported results for the fourth quarter of fiscal year 2007 included special charges (pre-tax) of $86.4 million and stock compensation expense of $1.2 million, or $0.22 per share. The special charges (pre-tax) consisted of $29.9 million related to the renewal and re-negotiation of distribution agreements with existing distributors; $46.3 million related primarily to inventory write-downs and accounts receivable reserves related to its Biomet Trauma/Biomet Spine operations; $8.2 million in expenses related to the proposed Merger Agreement, and retirement/employment costs associated with changes in executive management; and $2 million in legal and accounting fees related to the previously announced stock option investigation.
Reconstructive device sales increased 8 percent worldwide to $402,890,000 during the fourth quarter of fiscal year 2007. Reconstructive device sales in the United States increased 1 percent and international reconstructive device sales increased 17 percent. Knee sales increased 6 percent worldwide during the fourth quarter and decreased 1 percent in the United States. Excluding instruments, fourth quarter knee sales increased 13 percent worldwide and 10 percent in the United States. During the fourth quarter, Biomet experienced continued strong demand for its recent product introductions for total and partial knee systems.
Hip sales increased 7 percent worldwide and 1 percent in the United States during the fourth quarter of fiscal year 2007. Excluding instruments, hip sales for the fourth quarter increased 9 percent worldwide and 4 percent in the United States. The Company's broad platform of bearing options continued to receive excellent surgeon acceptance, including metal-on-metal, ceramic-on-ceramic, and second generation highly crosslinked polyethylene components. Biomet's porous coated titanium hip stems also contributed to hip sales growth during the fourth quarter.
Extremity sales increased 13 percent worldwide during the fourth quarter of fiscal year 2007 and decreased 1 percent in the United States. Excluding instruments, fourth quarter extremity sales increased 17 percent worldwide and 5 percent in the United States. Dental reconstructive device sales increased 10 percent worldwide and 3 percent in the United States. Sales of bone cements and accessories increased 13 percent worldwide and 13 percent in the United States.
Fixation sales decreased 22 percent worldwide to $50,368,000 during the fourth quarter of fiscal year 2007 and decreased 30 percent in the United States. Craniomaxillofacial sales were flat in the United States and decreased 1 percent worldwide. Internal fixation sales decreased 3 percent worldwide and 7 percent in the United States, while external fixation sales decreased 14 percent worldwide and 22 percent in the United States. Electrical stimulation device sales decreased 48 percent worldwide and 49 percent in the United States.
Spinal product sales decreased 10 percent worldwide to $51,826,000 during the fourth quarter of fiscal year 2007 and decreased 17 percent in the United States. Sales of spinal implants and orthobiologics for the spine increased 7 percent worldwide and 1 percent in the United States, while spinal stimulation sales decreased 34 percent worldwide and 36 percent in the United States.
Sales of the Company's "other products" decreased 2 percent worldwide to $44,323,000 during the fourth quarter of fiscal year 2007 and decreased 9 percent in the United States. Arthroscopy sales increased 9 percent worldwide and increased 2 percent in the United States, while sales of softgoods and bracing products decreased 10 percent worldwide and 11 percent in the United States.
Full Year Results
For the twelve months ended May 31, 2007, net sales increased 4 percent to $2.107 billion. Excluding the impact of foreign currency, which increased fiscal year 2007 revenues by $37.9 million, net sales increased 2 percent worldwide. On a constant currency basis, international sales increased 9 percent during fiscal year 2007 while domestic sales decreased 1 percent.
Reported operating income for fiscal year 2007 was $489,602,000 compared to $608,386,000 for fiscal year 2006. Adjusted operating income, excluding special charges and stock compensation expense, was $622,095,000, or 29.5 percent of sales for fiscal year 2007 compared to $627,227,000, or 31.0 percent of sales for fiscal year 2006. Reported net income for fiscal year 2007 was $335,892,000, or $1.37 per share compared to $405,908,000 or $1.63 per share for fiscal year 2006. Adjusted net income for the year, excluding special charges and stock compensation expense, was $419,904,000, or $1.71 per share. Adjusted net income for fiscal year 2006 was $420,644,000, or $1.69 per share.
Reported results for fiscal year 2007 included special charges (pre-tax) of $119.3 million and stock compensation related expenses of $13.2 million, or $0.34 per share. The special charges (pre-tax) consisted of $39.2 million related to the renewal and re-negotiation of distribution agreements with existing distributors; $57.3 million related primarily to inventory write-downs and accounts receivable reserves related to its Biomet Trauma/Biomet Spine operations; $17.5 million in expenses related to the proposed Merger Agreement and retirement/employment costs associated with changes in executive management; and $5.3 million in legal and accounting fees related to the previously announced stock option investigation.
Reconstructive device sales increased 9 percent worldwide during fiscal year 2007 to $1.5 billion. Reconstructive device sales in the United States increased 5 percent and international reconstructive device sales increased 14 percent. Fiscal year 2007 knee sales increased 8 percent worldwide and 5 percent in the United States. Excluding instruments, knee sales increased 12 percent worldwide and 11 percent in the United States. Hip sales increased 7 percent worldwide and 2 percent in the United States during fiscal year 2007. Excluding instruments, hip sales increased 8 percent worldwide and 3 percent in the United States.
Extremity sales increased 14 percent worldwide and 7 percent in the United States during fiscal year 2007. Excluding instruments, extremity sales increased 15 percent worldwide and 9 percent in the United States. During fiscal year 2007, dental reconstructive device sales increased 15 percent worldwide and 8 percent in the United States. Sales of bone cements and accessories were flat worldwide during fiscal year 2007 and increased 13 percent in the United States.
Fixation sales decreased 11 percent worldwide to $224,694,000 and decreased 17 percent in the United States during fiscal year 2007. Craniomaxillofacial sales increased 2 percent worldwide during fiscal year 2007 and decreased 1 percent in the United States. Internal fixation sales increased 2 percent worldwide and decreased 5 percent in the United States during fiscal year 2007, while external fixation sales decreased 13 percent worldwide and 17 percent in the United States. Electrical stimulation device sales decreased 25 percent worldwide and in the United States during fiscal year 2007.
Spinal product sales decreased 7 percent worldwide to $205,862,000 during fiscal year 2007 and decreased 12 percent in the United States. Sales of spinal implants and orthobiologics for the spine decreased 3 percent worldwide and in the United States, while spinal stimulation sales decreased 21 percent worldwide and in the United States during fiscal year 2007.
Sales of the Company's "other products" were flat worldwide during fiscal year 2007 at $172,998,000 and decreased 4 percent in the United States. Fiscal year 2007 arthroscopy sales increased 10 percent worldwide and 3 percent in the United States. Sales of softgoods and bracing products decreased 5 percent worldwide and in the United States during fiscal year 2007.
Biomet's President and Chief Executive Officer Jeffrey R. Binder stated, "Biomet is focused on improving its trauma and spine operations. We have strengthened our senior management team with recent promotions and new additions which, along with a robust new product pipeline, we expect will lead to improved operational performance for the Company. Upon completion of the pending merger, we will become a private company with the strong backing of equity sponsors who recognize our growth potential and support our dedication to providing high quality, innovative products. As a result, we expect to be in an even stronger position to deliver on our commitment to surgeons and their patients. I am honored to lead Biomet and I believe the Company possesses very attractive franchises in the musculoskeletal marketplace which will continue to strengthen as we implement our plans."[[In-content Ad]]
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Reported operating income for the fourth quarter of fiscal year 2007 was $54,473,000 compared to $150,605,000 for the fourth quarter of fiscal year 2006. Adjusted operating income, excluding special charges and stock compensation expense, was $142,101,000 for the fourth quarter of fiscal year 2007 compared to $166,500,000 for the fourth quarter of fiscal year 2006. Reported net income for the fourth quarter of fiscal year 2007 was $41,490,000, or $0.17 per share compared to $100,367,000 or $0.41 per share for the fourth quarter of fiscal year 2006. Adjusted net income for the quarter, excluding special charges and stock compensation expense, was $95,805,000, or $0.39 per share. Adjusted net income for the fourth quarter of fiscal year 2006 was $113,002,000, or $0.46 per share.
Reported results for the fourth quarter of fiscal year 2007 included special charges (pre-tax) of $86.4 million and stock compensation expense of $1.2 million, or $0.22 per share. The special charges (pre-tax) consisted of $29.9 million related to the renewal and re-negotiation of distribution agreements with existing distributors; $46.3 million related primarily to inventory write-downs and accounts receivable reserves related to its Biomet Trauma/Biomet Spine operations; $8.2 million in expenses related to the proposed Merger Agreement, and retirement/employment costs associated with changes in executive management; and $2 million in legal and accounting fees related to the previously announced stock option investigation.
Reconstructive device sales increased 8 percent worldwide to $402,890,000 during the fourth quarter of fiscal year 2007. Reconstructive device sales in the United States increased 1 percent and international reconstructive device sales increased 17 percent. Knee sales increased 6 percent worldwide during the fourth quarter and decreased 1 percent in the United States. Excluding instruments, fourth quarter knee sales increased 13 percent worldwide and 10 percent in the United States. During the fourth quarter, Biomet experienced continued strong demand for its recent product introductions for total and partial knee systems.
Hip sales increased 7 percent worldwide and 1 percent in the United States during the fourth quarter of fiscal year 2007. Excluding instruments, hip sales for the fourth quarter increased 9 percent worldwide and 4 percent in the United States. The Company's broad platform of bearing options continued to receive excellent surgeon acceptance, including metal-on-metal, ceramic-on-ceramic, and second generation highly crosslinked polyethylene components. Biomet's porous coated titanium hip stems also contributed to hip sales growth during the fourth quarter.
Extremity sales increased 13 percent worldwide during the fourth quarter of fiscal year 2007 and decreased 1 percent in the United States. Excluding instruments, fourth quarter extremity sales increased 17 percent worldwide and 5 percent in the United States. Dental reconstructive device sales increased 10 percent worldwide and 3 percent in the United States. Sales of bone cements and accessories increased 13 percent worldwide and 13 percent in the United States.
Fixation sales decreased 22 percent worldwide to $50,368,000 during the fourth quarter of fiscal year 2007 and decreased 30 percent in the United States. Craniomaxillofacial sales were flat in the United States and decreased 1 percent worldwide. Internal fixation sales decreased 3 percent worldwide and 7 percent in the United States, while external fixation sales decreased 14 percent worldwide and 22 percent in the United States. Electrical stimulation device sales decreased 48 percent worldwide and 49 percent in the United States.
Spinal product sales decreased 10 percent worldwide to $51,826,000 during the fourth quarter of fiscal year 2007 and decreased 17 percent in the United States. Sales of spinal implants and orthobiologics for the spine increased 7 percent worldwide and 1 percent in the United States, while spinal stimulation sales decreased 34 percent worldwide and 36 percent in the United States.
Sales of the Company's "other products" decreased 2 percent worldwide to $44,323,000 during the fourth quarter of fiscal year 2007 and decreased 9 percent in the United States. Arthroscopy sales increased 9 percent worldwide and increased 2 percent in the United States, while sales of softgoods and bracing products decreased 10 percent worldwide and 11 percent in the United States.
Full Year Results
For the twelve months ended May 31, 2007, net sales increased 4 percent to $2.107 billion. Excluding the impact of foreign currency, which increased fiscal year 2007 revenues by $37.9 million, net sales increased 2 percent worldwide. On a constant currency basis, international sales increased 9 percent during fiscal year 2007 while domestic sales decreased 1 percent.
Reported operating income for fiscal year 2007 was $489,602,000 compared to $608,386,000 for fiscal year 2006. Adjusted operating income, excluding special charges and stock compensation expense, was $622,095,000, or 29.5 percent of sales for fiscal year 2007 compared to $627,227,000, or 31.0 percent of sales for fiscal year 2006. Reported net income for fiscal year 2007 was $335,892,000, or $1.37 per share compared to $405,908,000 or $1.63 per share for fiscal year 2006. Adjusted net income for the year, excluding special charges and stock compensation expense, was $419,904,000, or $1.71 per share. Adjusted net income for fiscal year 2006 was $420,644,000, or $1.69 per share.
Reported results for fiscal year 2007 included special charges (pre-tax) of $119.3 million and stock compensation related expenses of $13.2 million, or $0.34 per share. The special charges (pre-tax) consisted of $39.2 million related to the renewal and re-negotiation of distribution agreements with existing distributors; $57.3 million related primarily to inventory write-downs and accounts receivable reserves related to its Biomet Trauma/Biomet Spine operations; $17.5 million in expenses related to the proposed Merger Agreement and retirement/employment costs associated with changes in executive management; and $5.3 million in legal and accounting fees related to the previously announced stock option investigation.
Reconstructive device sales increased 9 percent worldwide during fiscal year 2007 to $1.5 billion. Reconstructive device sales in the United States increased 5 percent and international reconstructive device sales increased 14 percent. Fiscal year 2007 knee sales increased 8 percent worldwide and 5 percent in the United States. Excluding instruments, knee sales increased 12 percent worldwide and 11 percent in the United States. Hip sales increased 7 percent worldwide and 2 percent in the United States during fiscal year 2007. Excluding instruments, hip sales increased 8 percent worldwide and 3 percent in the United States.
Extremity sales increased 14 percent worldwide and 7 percent in the United States during fiscal year 2007. Excluding instruments, extremity sales increased 15 percent worldwide and 9 percent in the United States. During fiscal year 2007, dental reconstructive device sales increased 15 percent worldwide and 8 percent in the United States. Sales of bone cements and accessories were flat worldwide during fiscal year 2007 and increased 13 percent in the United States.
Fixation sales decreased 11 percent worldwide to $224,694,000 and decreased 17 percent in the United States during fiscal year 2007. Craniomaxillofacial sales increased 2 percent worldwide during fiscal year 2007 and decreased 1 percent in the United States. Internal fixation sales increased 2 percent worldwide and decreased 5 percent in the United States during fiscal year 2007, while external fixation sales decreased 13 percent worldwide and 17 percent in the United States. Electrical stimulation device sales decreased 25 percent worldwide and in the United States during fiscal year 2007.
Spinal product sales decreased 7 percent worldwide to $205,862,000 during fiscal year 2007 and decreased 12 percent in the United States. Sales of spinal implants and orthobiologics for the spine decreased 3 percent worldwide and in the United States, while spinal stimulation sales decreased 21 percent worldwide and in the United States during fiscal year 2007.
Sales of the Company's "other products" were flat worldwide during fiscal year 2007 at $172,998,000 and decreased 4 percent in the United States. Fiscal year 2007 arthroscopy sales increased 10 percent worldwide and 3 percent in the United States. Sales of softgoods and bracing products decreased 5 percent worldwide and in the United States during fiscal year 2007.
Biomet's President and Chief Executive Officer Jeffrey R. Binder stated, "Biomet is focused on improving its trauma and spine operations. We have strengthened our senior management team with recent promotions and new additions which, along with a robust new product pipeline, we expect will lead to improved operational performance for the Company. Upon completion of the pending merger, we will become a private company with the strong backing of equity sponsors who recognize our growth potential and support our dedication to providing high quality, innovative products. As a result, we expect to be in an even stronger position to deliver on our commitment to surgeons and their patients. I am honored to lead Biomet and I believe the Company possesses very attractive franchises in the musculoskeletal marketplace which will continue to strengthen as we implement our plans."[[In-content Ad]]
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