antiquity
02-28-2002, 06:12 PM
Orthofix Increased 2001 Sales by 23% to a Record $162 Million; Net Income From Operations Up 24%
HUNTERSVILLE, N.C., Feb. 28 /PRNewswire-FirstCall/ -- Orthofix International N.V. (Nasdaq: OFIX) today announced results for the fourth quarter and year ended December 31, 2001.
Sales for the year ended December 31, 2001, were $162.4 million, an increase of 23% over the $131.8 million reported during the same period in 2000.
Net income for the year ended December 31, 2001, was $21.0 million, or $1.42 per share, compared with $16.9 million, or $1.21 per share, for the prior year excluding non-recurring items, an increase of 24%. Reported net income for the prior year, including non-recurring items, was $44.8 million, or $3.20 per share. Diluted weighted average shares outstanding were 14,737,567 and 13,986,098 during 2001 and 2000, respectively.
For the fourth quarter ended December 31, 2001, sales were $43.0 million, compared with sales of $33.6 million in the same period 2000, an increase of 28%. Net income was $6.0 million, compared with $4.7 million for the same period in 2000, an increase of 27%. During the quarter, the Company recorded a tax benefit which contributed to reducing the effective tax rate to 24% for the quarter.
Charlie Federico, President and CEO, commented, "2001 was a very good year. The progress we made in penetrating markets with our products has established good momentum going into 2002. Along with continued sales performance in North America, our International group had a good year, and the overall 23% increase makes us one of the industry's leaders in the rate of sales growth. Our 2002 performance will be led by continued growth in core stimulation and external fixation products. In addition, the new products of Orthotrac, Storm, and Xcaliber have shown early acceptance in many of the countries where we have distribution. We were able to increase net income from operations 24%, even though 2001 costs were impacted by legal expenses, distribution expansion and subsidiary start-up costs and costs associated with the formation of a new business, OrthoRx. We look for increased leverage in 2002 as a result of additional productivity from our investments.
"On the balance sheet, we reduced the DSO from 116 days to 99 days, year over year, while not increasing inventory on 23% sales growth, thus enabling inventory turns to increase from 1.8 to 2.3 turns," added Federico. "We generated $26.4 million in cash from operations and invested $7.2 million in capital expenditures, $13.3 million in expansion of subsidiaries and purchase of minority interests, $16.5 million to purchase 582,000 of our shares, and $5.1 million for reduction of debt."
Net sales for the years ended December 31, 2001 and 2000
(In thousands)
2001 2000 Increase
North America 109.4 87.4 25%
International 53.0 44.4 19%
Total $162.4 $131.8 23%
Net sales by product group for the years ended December 31, 2001 and 2000
(In thousands)
2001 2000 Increase
Orthopedic
Devices 49.3 42.0 17%
Stimulation 71.7 57.1 26%
Vascular (DVT) 21.0 16.9 24%
Total Orthopedic 142.0 116.0 22%
Non-Orthopedic 20.4 15.8 29%
Total $162.4 $131.8 23%
Orthofix International N.V. is an international corporation that develops, produces and markets innovative products in the medical device sector. Its products include the Orthofix (R) external fixation range for fractures and limb reconstruction, Spinal-Stim (R) Lite for the enhanced healing of spinal fusions, Physio-Stim (R) Lite for the healing of un-united fractures, the OSCAR (R) ultrasonic bone cement removal system for hip revision procedures, the A-V Impulse System (R) for enhancing venous circulation, and the Orthofix (R) Tibial and Femoral Nails with their patented targeting system.
For more information please visit our corporate website at http://www.orthofix.com
Certain of the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including, without limitation, the acceptance of new products in the market and the impact of competitive products and other risks and uncertainties. These are detailed from time to time in the Company's periodic reports (including the Annual Report on Form 20-F for the year ended December 31, 2000 filed with the United States Securities and Exchange Commission (the "SEC") and the Company's quarterly press release which is available to shareholders and furnished to the SEC on Form 6-K).
- Financial tables follow -
ORTHOFIX INTERNATIONAL N.V.
CONSOLIDATED INCOME STATEMENTS
In thousands,except per share and share data
For the three months For the twelve months
ended December 31 ended December 31
2001 2000 2001 2000
(Unaudited) (Unaudited) (Unaudited) (Audited)
Net sales $42,999 33,556 $162,360 $131,782
Cost of sales 10,878 8,864 42,952 35,789
Gross profit 32,121 24,692 119,408 95,993
Operating expenses
Sales and marketing 15,764 12,616 59,397 46,966
General and
administrative 4,813 3,101 18,384 15,388
Research and
development 1,740 1,652 6,985 6,887
Amortization 1,109 1,119 4,143 4,027
23,426 18,488 88,909 73,268
Operating income 8,695 6,204 30,499 22,725
Income from
litigation 0 0 0 37,982
settlement (net of
expenses)
Other income (172) 845 168 1,868
Net income before
income tax 8,523 7,049 30,667 62,575
and minority
interests
Income tax expense (2,058) (1,996) (7,867) (16,234)
Net income before
minority interests 6,465 5,053 22,800 46,341
Minority interests (481) (343) (1,836) (1,525)
Net income $5,984 $4,710 $20,964 $44,816
Net income per
common share before
non-recurring items
- diluted $0.40 $0.34 $1.42 $1.21
Net income per
common share -
diluted $0.40 $0.34 $1.42 $3.20
Weighted average
number of common
shares outstanding -
diluted 14,886,070 13,957,736 14,737,567 13,986,098
ORTHOFIX INTERNATIONAL N.V.
CONSOLIDATED BALANCE SHEETS
In thousands
As of As of
December 31, December 31,
2001 2000
(Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents $34,273 $50,458
Restricted cash 0 932
Trade accounts receivable 46,111 42,203
Inventory 19,249 19,179
Deferred income taxes 4,049 3,970
Other current assets 6,180 8,992
Total current assets 109,862 125,734
Securities and other investments 2,846 2,757
Property, plant and equipment, net 12,580 10,124
Intangible assets, net 60,824 51,448
Long-term deferred income taxes 470 371
Total assets $186,582 $190,434
Liabilities and shareholders' equity
Current liabilities:
Bank borrowings $3,980 $5,452
Current portion of long-term debt 740 4,512
Trade accounts payable 7,872 7,900
Other current liabilities 23,128 25,670
Total current liabilities 35,720 43,534
Long-term debt 423 854
Deferred income taxes 1,236 1,173
Deferred income 2,500 2,500
Other long-term liabilities 594 91
Deferred compensation 680 768
Total liabilities 41,153 48,920
Minority interests 7,327 8,526
Shareholders' equity
Common shares 1,384 1,366
Additional paid-in capital 68,466 66,711
Less: Treasury shares, at cost (22,297) (5,841)
47,553 62,236
Retained earnings 97,281 76,317
Accumulated other comprehensive
income (6,732) (5,565)
Total shareholders' equity 138,102 132,988
Total liabilities, minority
interests and shareholders'
equity $186,582 $190,434
For further information:
Charles W. Federico Peter W Clarke
Group President & CEO CFO
Orthofix International NV Orthofix International NV
704.948.2600 011.44.1491.413131
HUNTERSVILLE, N.C., Feb. 28 /PRNewswire-FirstCall/ -- Orthofix International N.V. (Nasdaq: OFIX) today announced results for the fourth quarter and year ended December 31, 2001.
Sales for the year ended December 31, 2001, were $162.4 million, an increase of 23% over the $131.8 million reported during the same period in 2000.
Net income for the year ended December 31, 2001, was $21.0 million, or $1.42 per share, compared with $16.9 million, or $1.21 per share, for the prior year excluding non-recurring items, an increase of 24%. Reported net income for the prior year, including non-recurring items, was $44.8 million, or $3.20 per share. Diluted weighted average shares outstanding were 14,737,567 and 13,986,098 during 2001 and 2000, respectively.
For the fourth quarter ended December 31, 2001, sales were $43.0 million, compared with sales of $33.6 million in the same period 2000, an increase of 28%. Net income was $6.0 million, compared with $4.7 million for the same period in 2000, an increase of 27%. During the quarter, the Company recorded a tax benefit which contributed to reducing the effective tax rate to 24% for the quarter.
Charlie Federico, President and CEO, commented, "2001 was a very good year. The progress we made in penetrating markets with our products has established good momentum going into 2002. Along with continued sales performance in North America, our International group had a good year, and the overall 23% increase makes us one of the industry's leaders in the rate of sales growth. Our 2002 performance will be led by continued growth in core stimulation and external fixation products. In addition, the new products of Orthotrac, Storm, and Xcaliber have shown early acceptance in many of the countries where we have distribution. We were able to increase net income from operations 24%, even though 2001 costs were impacted by legal expenses, distribution expansion and subsidiary start-up costs and costs associated with the formation of a new business, OrthoRx. We look for increased leverage in 2002 as a result of additional productivity from our investments.
"On the balance sheet, we reduced the DSO from 116 days to 99 days, year over year, while not increasing inventory on 23% sales growth, thus enabling inventory turns to increase from 1.8 to 2.3 turns," added Federico. "We generated $26.4 million in cash from operations and invested $7.2 million in capital expenditures, $13.3 million in expansion of subsidiaries and purchase of minority interests, $16.5 million to purchase 582,000 of our shares, and $5.1 million for reduction of debt."
Net sales for the years ended December 31, 2001 and 2000
(In thousands)
2001 2000 Increase
North America 109.4 87.4 25%
International 53.0 44.4 19%
Total $162.4 $131.8 23%
Net sales by product group for the years ended December 31, 2001 and 2000
(In thousands)
2001 2000 Increase
Orthopedic
Devices 49.3 42.0 17%
Stimulation 71.7 57.1 26%
Vascular (DVT) 21.0 16.9 24%
Total Orthopedic 142.0 116.0 22%
Non-Orthopedic 20.4 15.8 29%
Total $162.4 $131.8 23%
Orthofix International N.V. is an international corporation that develops, produces and markets innovative products in the medical device sector. Its products include the Orthofix (R) external fixation range for fractures and limb reconstruction, Spinal-Stim (R) Lite for the enhanced healing of spinal fusions, Physio-Stim (R) Lite for the healing of un-united fractures, the OSCAR (R) ultrasonic bone cement removal system for hip revision procedures, the A-V Impulse System (R) for enhancing venous circulation, and the Orthofix (R) Tibial and Femoral Nails with their patented targeting system.
For more information please visit our corporate website at http://www.orthofix.com
Certain of the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including, without limitation, the acceptance of new products in the market and the impact of competitive products and other risks and uncertainties. These are detailed from time to time in the Company's periodic reports (including the Annual Report on Form 20-F for the year ended December 31, 2000 filed with the United States Securities and Exchange Commission (the "SEC") and the Company's quarterly press release which is available to shareholders and furnished to the SEC on Form 6-K).
- Financial tables follow -
ORTHOFIX INTERNATIONAL N.V.
CONSOLIDATED INCOME STATEMENTS
In thousands,except per share and share data
For the three months For the twelve months
ended December 31 ended December 31
2001 2000 2001 2000
(Unaudited) (Unaudited) (Unaudited) (Audited)
Net sales $42,999 33,556 $162,360 $131,782
Cost of sales 10,878 8,864 42,952 35,789
Gross profit 32,121 24,692 119,408 95,993
Operating expenses
Sales and marketing 15,764 12,616 59,397 46,966
General and
administrative 4,813 3,101 18,384 15,388
Research and
development 1,740 1,652 6,985 6,887
Amortization 1,109 1,119 4,143 4,027
23,426 18,488 88,909 73,268
Operating income 8,695 6,204 30,499 22,725
Income from
litigation 0 0 0 37,982
settlement (net of
expenses)
Other income (172) 845 168 1,868
Net income before
income tax 8,523 7,049 30,667 62,575
and minority
interests
Income tax expense (2,058) (1,996) (7,867) (16,234)
Net income before
minority interests 6,465 5,053 22,800 46,341
Minority interests (481) (343) (1,836) (1,525)
Net income $5,984 $4,710 $20,964 $44,816
Net income per
common share before
non-recurring items
- diluted $0.40 $0.34 $1.42 $1.21
Net income per
common share -
diluted $0.40 $0.34 $1.42 $3.20
Weighted average
number of common
shares outstanding -
diluted 14,886,070 13,957,736 14,737,567 13,986,098
ORTHOFIX INTERNATIONAL N.V.
CONSOLIDATED BALANCE SHEETS
In thousands
As of As of
December 31, December 31,
2001 2000
(Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents $34,273 $50,458
Restricted cash 0 932
Trade accounts receivable 46,111 42,203
Inventory 19,249 19,179
Deferred income taxes 4,049 3,970
Other current assets 6,180 8,992
Total current assets 109,862 125,734
Securities and other investments 2,846 2,757
Property, plant and equipment, net 12,580 10,124
Intangible assets, net 60,824 51,448
Long-term deferred income taxes 470 371
Total assets $186,582 $190,434
Liabilities and shareholders' equity
Current liabilities:
Bank borrowings $3,980 $5,452
Current portion of long-term debt 740 4,512
Trade accounts payable 7,872 7,900
Other current liabilities 23,128 25,670
Total current liabilities 35,720 43,534
Long-term debt 423 854
Deferred income taxes 1,236 1,173
Deferred income 2,500 2,500
Other long-term liabilities 594 91
Deferred compensation 680 768
Total liabilities 41,153 48,920
Minority interests 7,327 8,526
Shareholders' equity
Common shares 1,384 1,366
Additional paid-in capital 68,466 66,711
Less: Treasury shares, at cost (22,297) (5,841)
47,553 62,236
Retained earnings 97,281 76,317
Accumulated other comprehensive
income (6,732) (5,565)
Total shareholders' equity 138,102 132,988
Total liabilities, minority
interests and shareholders'
equity $186,582 $190,434
For further information:
Charles W. Federico Peter W Clarke
Group President & CEO CFO
Orthofix International NV Orthofix International NV
704.948.2600 011.44.1491.413131