Exactech Inc.

$EXAC - Nasdaq - Healthcare Equipment/Supplies
0 LAST
0 CHANGE $
0 CHANGE %
loader
ON 0
WATCHLISTS

COMMUNIQUÉ DETAILS

posts/post

Press Release $EXAC Exactech Inc.

0 COMMENTs 22 Oct
Up 0 0 Down
Exactech Q3 Net Income up 25% to $3.2 Million; Diluted EPS $0.23 vs. $0.19; Worldwide Sales Up 9% to $55.7 Million; U.S. Sales Increased 11%

YTD Revenue Up 6% to $175.5M, Net Income $10.8M, EPS $0.79

GAINESVILLE, Fla.--(BUSINESS WIRE)-- Exactech, Inc. (Nasdaq: EXAC), a developer and producer of bone and joint restoration products for hip, knee, shoulder, spine and biologic materials, announced today sales of $55.7 million for the third quarter of 2013, a 9% increase over $51.3 million in the third quarter of 2012. Net income was $3.2 million, or $0.23 per diluted share, compared to $2.6 million, or $0.19 per diluted share, in the same quarter a year ago.

Third Quarter Segment Performance

  • Knee implant sales increased 2% to $18.6 million
  • Extremity implant sales increased 24% to $15.1 million
  • Hip implant sales increased 6% to $9.8 million
  • Biologic and Spine sales increased 1% to $6.0 million
  • Other sales increased 8% to $6.1 million

Nine Months Highlights and Segment Performance

For the first nine months of 2013 revenue was $175.5 million, an increase of 6% over $165.1 million for the comparable period last year. Net income for the first nine months of 2013 increased 22% to $10.8 million, or $0.79 per diluted share compared to $8.9 million, or $0.67 per diluted share for the first nine months of 2012. First nine month product revenues were as follows:

  • Knee implant revenue decreased 1% to $60.2 million
  • Extremity implant revenue increased 27% to $47.1 million
  • Hip implant revenue increased 1% to $30.8 million
  • Biologic and spine revenue increased 5% to $18.9 million
  • Other products revenue decreased 1% to $18.6 million

Management Comment

Exactech Chairman and CEO Dr. Bill Petty said, “We had a very successful quarter recording improvement in each of our operating segments. This resulted in a strong boost to net income and improved positive cash flow. Business strengthened pretty much across the board and we also benefited from a number of factors including a more favorable Euro exchange rate. New product lines are largely meeting our expectations and we continue to get welcomed favorable feedback from our surgeons and other customers. We also continue to benefit from strong cost controls supported in part by efficiencies from internal manufacturing operations.”

Exactech President David Petty said, “U.S. sales increased 11% to $39.1 million compared with $35.3 million in the third quarter a year ago and international sales increased 4% to $16.6 million. U.S. sales represented 70% of total sales and international sales were 30% of the total. For the first nine months of 2013, U.S. sales rose 10% to $117.9 million compared with $107.3 million in 2012. International sales for the first nine months of 2013 decreased 0.3% to $57.6 million and decreased to 33% of total sales from 35% of total sales for the first nine months of 2012 due to relative weakness in a few specific markets earlier in the year. On a constant currency basis, international sales increased 6% and worldwide sales grew 9% for the third quarter.”

Chief Financial Officer Jody Phillips said, “We continued to make financial progress during the third quarter of 2013 with the 25% increase in net income. Particularly encouraging was the gross margin improvement to 71% of sales, which was a function of higher than expected U.S. sales mix as well as lower costs due to our internal manufacturing operations. The 11% increase in operating expenses was largely in line with our expectations although we are projecting lower increases in operating expenses for the fourth quarter.”

Looking forward, Exactech narrowed its 2013 sales guidance of $237 - $239 million and increased its full year diluted EPS target to $1.09 – $1.11. For the fourth quarter ending December 31, 2013, the company said it anticipates sales of $61.5 - $63.5 million and diluted EPS of $0.30 - $0.32. 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.

Conference Call

The company has scheduled a conference call at 10:00 a.m. Eastern Time on Wednesday, October 23. The call will cover the company’s third quarter results. CEO Bill Petty will open the conference call and a question-and-answer session will follow.

To participate in the call, dial 1-877-941-2068 any time after 9:50 a.m. Eastern on October 23rd. International and local callers should dial 1-480-629-9712. A live webcast of the call will be available at http://www.hawkassociates.com/profile/exac.cfm or http://public.viavid.com/index.php?id=106302.

This call will be archived for approximately 90 days.

About Exactech

Based in Gainesville, Fla., Exactech develops and markets orthopaedic implant devices, related surgical instruments 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. Exactech markets its products in the United States, in addition to more than 30 markets in Europe, Latin America, Asia and the Pacific. 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. To receive future releases in e-mail alerts, sign up at http://www.hawkassociates.com/about/alert.

This release contains various forward-looking statements 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.

 

EXACTECH, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(in thousands)
 
    (unaudited)   (audited)
September 30, December 31,
  2013   2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 6,779 $ 5,838
Trade receivables, net of allowances of $1,231 and $1,012 56,300 48,073
Prepaid expenses and other assets, net 2,834 2,877
Income taxes receivable 1,489 502
Inventories, current 71,779 70,699
Deferred tax assets   2,621   2,229
Total current assets 141,802 130,218
 
PROPERTY AND EQUIPMENT:
Land 2,213 2,211
Machinery and equipment 34,751 33,158
Surgical instruments 95,091 85,115
Furniture and fixtures 3,840 3,858
Facilities 18,058 18,033
Projects in process   858   643
Total property and equipment 154,811 143,018
Accumulated depreciation   (72,745 )   (61,586 )
Net property and equipment 82,066 81,432
 
OTHER ASSETS:
Deferred financing and deposits, net 915 866
Non-current inventory 11,074 5,410
Product licenses and designs, net 9,841 10,534
Patents and trademarks, net 2,033 2,217
Customer relationships, net 777 1,108
Goodwill   13,435   13,356
Total other assets   38,075   33,491
TOTAL ASSETS $ 261,943 $ 245,141
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $ 14,539 $ 14,773
Income taxes payable 472 2,188
Accrued expenses 11,605 11,726
Other current liabilities 250 250
Current portion of long-term debt   3,000   2,625
Total current liabilities 29,866 31,562
 
LONG-TERM LIABILITIES:
Deferred tax liabilities 3,019 3,186
Line of credit 18,386 12,197
Long-term debt, net of current portion 24,000 26,250
Other long-term liabilities   817   1,049
Total long-term liabilities   46,222   42,682
Total liabilities 76,088 74,244
 
COMMITMENTS AND CONTINGENCIES
 
SHAREHOLDERS’ EQUITY:
Common stock 135 133
Additional paid-in capital 67,848 63,918
Accumulated other comprehensive loss, net of tax (4,548 ) (4,797 )
Retained earnings   122,420   111,643
Total shareholders’ equity   185,855   170,897
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 261,943 $ 245,141
 
 
EXACTECH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(Unaudited)
       
Three Month Periods Nine Month Periods
Ended September 30, Ended September 30,
2013   2012 2013   2012
NET SALES $ 55,650 $ 51,270 $ 175,510 $ 165,083
 
COST OF GOODS SOLD   16,126   15,392   53,791   50,688
Gross profit 39,524 35,878 121,719 114,395
 
OPERATING EXPENSES:
Sales and marketing 20,274 18,713 63,281 60,501
General and administrative 5,384 4,564 15,801 14,947
Research and development 5,068 4,366 13,523 12,630
Depreciation and amortization   3,963   3,722   11,992   11,327
Total operating expenses 34,689 31,365 104,597 99,405
       
INCOME FROM OPERATIONS 4,835 4,513 17,122 14,990
 
OTHER INCOME (EXPENSE):
Interest income 2 - 5 8
Other income (loss) 18 22 69 57
Interest expense (281 ) (322 ) (852 ) (1,156 )
Foreign currency exchange gain (loss)   271   60   (312 )   194
Total other income (expenses) 10 (240 ) (1,090 ) (897 )
       
INCOME BEFORE INCOME TAXES 4,845 4,273 16,032 14,093
 
PROVISION FOR INCOME TAXES 1,653 1,720 5,255 5,232
       
NET INCOME $ 3,192 $ 2,553 $ 10,777 $ 8,861
 
 
BASIC EARNINGS PER SHARE $ 0.24 $ 0.19 $ 0.80 $ 0.67
 
DILUTED EARNINGS PER SHARE $ 0.23 $ 0.19 $ 0.79 $ 0.67
 
 
SHARES - BASIC 13,494 13,278 13,433 13,204
 
SHARES - DILUTED 13,712 13,358 13,632 13,295
 

Exactech, Inc.
Investor contacts:
Jody Phillips, 352-377-1140
Chief Financial Officer
or
Hawk Associates
Julie Marshall or Frank Hawkins, 305-451-1888
exactech@hawkassociates.com

Source: Exactech, Inc.

SHARE THIS: Twitter StockTwits LinkedIn Google Plus SHORT URL: http://bdvt.co/cfu7

SIGN IN TO BOARDVOTE

FORGOT PASSWORD?