Mar 6 2007, 7:30 AM EST
News source: Business Wire
Orthofix International N.V., (NASDAQ:OFIX):
-- As previously announced, fourth quarter revenue totaled $116.1 million, up 45% year-over-year; full-year revenues of $365.4 million up 17% from 2005
-- Excluding $28.1 million from the Blackstone Medical acquisition, 4th quarter revenues rose 10% year-over-year
-- Revenue in each of the Company's business segments rose compared with the fourth quarter of 2005
-- Fourth quarter GAAP EPS totaled $0.44; adjusted EPS was $0.51, up 9% over 2005
Orthofix International N.V., (NASDAQ:OFIX) (the Company) today released its financial results for the fourth quarter and full-year ended December 31, 2006. As previously announced on February 13th, fourth quarter revenue was a record $116.1 million, an increase of 45% year-over-year. This included $28.1 million from Blackstone Medical, Inc. (Blackstone), which was acquired in September 2006. Excluding Blackstone's revenue, Orthofix's fourth quarter revenue rose 10% over the prior year. Full-year 2006 revenue totaled $365.4 million, including Blackstone's fourth quarter contribution, representing an increase of 17% over the full-year 2005. The impact of foreign currency on sales for the fourth quarter of 2006 was a positive $1.6 million.
Reported fourth quarter earnings totaled $7.4 million, or $0.44 per diluted share. Excluding the gain from a foreign currency exchange, as well as the impact of certain expenses related to the Blackstone acquisition, business restructuring initiatives and stock compensation expense resulting from the Company's adoption of FAS 123R in 2006, adjusted net income in the fourth quarter was $8.5 million, or $0.51 per share. This represents a nine percent increase when compared with adjusted EPS of $0.47 in the fourth quarter of 2005. Adjusted net income, excluding additional specified non-cash items was $0.67 per share in the fourth quarter, which was up 29% compared with $0.52 in the prior year.
For the full-year 2006 the Company reported a net loss of $7.0 million or ($0.43) per share, including the impact of purchase accounting (primarily the $40 million non-cash write-off of in-process R&D) associated with the Blackstone acquisition. Excluding the impact of purchase accounting associated with the Blackstone acquisition as well as certain other items, adjusted net income for the full year was $36.7 million or $2.24 per diluted share. Adjusted net income in 2005, which excludes the benefit from net litigation proceeds as well as the termination of a licensing agreement, was $2.12 per share. Adjusted net income, excluding additional specified non-cash items was $2.56 per share for the full year 2006 compared with $2.32 in 2005.
Non-GAAP Financial Measures
The tables below present reconciliations between net income calculated in accordance with generally accepted accounting principles (GAAP) and two non-GAAP financial measures, referred to as "adjusted net income" and "adjusted net income, excluding additional specified non-cash items," that exclude from net income the items specified in the table. Management believes it is important to provide investors with the same non-GAAP metrics which it uses to supplement information regarding the performance and underlying trends of Orthofix's business operations, facilitate comparisons to its historical operating results and internally evaluate the effectiveness of the Company's operating strategies. For a more detailed explanation of the items in the tables below that are excluded from GAAP net income, as well as why management believes the non-GAAP measures are useful to them, please see the Regulation G Supplemental Information schedule attached to
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