Encore(R) Medical Corporation Posts Record Sales; U.S. Sales Significantly Improve

Apr 30, 2001, 01:00 ET from Encore Medical Corporation

    AUSTIN, Texas, April 30 /PRNewswire/ --
 Encore Medical Corporation (Nasdaq: ENMC) reported today that it achieved
 record quarterly sales during the 1st quarter of 2001.  Encore's first quarter
 sales were $8,719,000, a $218,000 increase over the sales made during the
 first quarter of 2000.  Key to these increased sales levels were domestic
 sales which showed a 22% growth over the same period last year.  Encore has
 been focusing significant efforts in the last six months in building and
 strengthening its domestic sales force.  However, as strong as U.S. sales
 were, the overall increase from the prior year first quarter was adversely
 affected by a 27% decrease in international sales as compared to the same
 period in 2000.  During the first quarter of 2000, there had been several
 large initial orders from international customers that were not required to be
 repeated this year.
     While sales increased over the prior year in the first quarter of 2001,
 net income did not increase.  This is because Encore continued to expend
 significant resources to promote its products and build its sales force to
 achieve even greater opportunities for increased sales growth in 2001.  Net
 income for first quarter of 2001 was $228,000 as compared to $457,000 for the
 same period in 2000.  Almost all of this decrease can be attributed to
 increased marketing and selling expenses.  Earnings per share decreased from
 $.05 in the first quarter of 2000 to $.02 for the first quarter of 2001.
     Kenneth W. Davidson, CEO of Encore stated, "We believe that Encore is on
 the right track as our focus has been on building U.S. sales and our efforts
 are beginning to pay off.  The agents who have been with us for over a year
 are seeing significant increases in their business and we are continuing to
 attract new agents to build our sales force."
     Encore Medical Corporation (www.encoremed.com) designs, manufactures and
 markets orthopedic total joint, trauma and spinal implants products around the
 world.
 
     Except for the historical information contained herein, the matters
 discussed are forward-looking statements made pursuant to the safe harbor
 provisions of the Private Securities Litigation Reform Act of 1995.  These
 statements involve risks and uncertainties, such as quarterly fluctuations in
 operating results, the timely availability of new products, the impacts of
 competitive products and pricing, and other risks and uncertainties set forth
 in the Company's filings with the Securities and Exchange Commission.  These
 risks and uncertainties could cause actual results to differ materially from
 any forward-looking statements made herein.
 
                             Encore Medical Corporation
                                Financial Highlights
                            For the Quarter  Ended 3/30/01
                       (in thousands, except per share data)
 
 
 
 Quarter Ended
                                    03/30/01                  03/31/00
                                  $             %            $             %
 
     Sales                  $ 8,719        100.0%       $8,501        100.0%
 
     Cost of goods sold       3,210         36.8%        2,975         35.0%
 
     Gross margin             5,509         63.2%        5,526         65.0%
 
     Operating expenses
      Research and development  399          4.6%          459          5.4%
      Selling, general
       and administrative     4,466         51.2%        4,150         48.8%
 
     Operating income           644          7.4%          917         10.8%
 
     Interest expense          (364)        (4.2%)        (288)        (3.4%)
     Other income                65          0.7%           53          0.6%
 
     Income before taxes        345          4.0%          682          8.0%
 
     Provision for income taxes 117          1.3%          225          2.6%
 
     Net income                $228          2.6%        $ 457          5.4%
 
     Basic earnings per
      share                  $ 0.03                     $ 0.05
 
     Diluted earnings per
      share                  $ 0.02                     $ 0.05
 
     Basic weighted
      average number of
      shares outstanding      8,893                      9,023
 
     Diluted weighted
      average number of
      shares outstanding      9,362                     10,165
 
 
     Contact:  Harry L. Zimmerman - Executive Vice President - General Counsel,
     of Encore Medical Corporation, 512-832-9500.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X72557552
 
 

SOURCE Encore Medical Corporation
    AUSTIN, Texas, April 30 /PRNewswire/ --
 Encore Medical Corporation (Nasdaq: ENMC) reported today that it achieved
 record quarterly sales during the 1st quarter of 2001.  Encore's first quarter
 sales were $8,719,000, a $218,000 increase over the sales made during the
 first quarter of 2000.  Key to these increased sales levels were domestic
 sales which showed a 22% growth over the same period last year.  Encore has
 been focusing significant efforts in the last six months in building and
 strengthening its domestic sales force.  However, as strong as U.S. sales
 were, the overall increase from the prior year first quarter was adversely
 affected by a 27% decrease in international sales as compared to the same
 period in 2000.  During the first quarter of 2000, there had been several
 large initial orders from international customers that were not required to be
 repeated this year.
     While sales increased over the prior year in the first quarter of 2001,
 net income did not increase.  This is because Encore continued to expend
 significant resources to promote its products and build its sales force to
 achieve even greater opportunities for increased sales growth in 2001.  Net
 income for first quarter of 2001 was $228,000 as compared to $457,000 for the
 same period in 2000.  Almost all of this decrease can be attributed to
 increased marketing and selling expenses.  Earnings per share decreased from
 $.05 in the first quarter of 2000 to $.02 for the first quarter of 2001.
     Kenneth W. Davidson, CEO of Encore stated, "We believe that Encore is on
 the right track as our focus has been on building U.S. sales and our efforts
 are beginning to pay off.  The agents who have been with us for over a year
 are seeing significant increases in their business and we are continuing to
 attract new agents to build our sales force."
     Encore Medical Corporation (www.encoremed.com) designs, manufactures and
 markets orthopedic total joint, trauma and spinal implants products around the
 world.
 
     Except for the historical information contained herein, the matters
 discussed are forward-looking statements made pursuant to the safe harbor
 provisions of the Private Securities Litigation Reform Act of 1995.  These
 statements involve risks and uncertainties, such as quarterly fluctuations in
 operating results, the timely availability of new products, the impacts of
 competitive products and pricing, and other risks and uncertainties set forth
 in the Company's filings with the Securities and Exchange Commission.  These
 risks and uncertainties could cause actual results to differ materially from
 any forward-looking statements made herein.
 
                             Encore Medical Corporation
                                Financial Highlights
                            For the Quarter  Ended 3/30/01
                       (in thousands, except per share data)
 
 
 
 Quarter Ended
                                    03/30/01                  03/31/00
                                  $             %            $             %
 
     Sales                  $ 8,719        100.0%       $8,501        100.0%
 
     Cost of goods sold       3,210         36.8%        2,975         35.0%
 
     Gross margin             5,509         63.2%        5,526         65.0%
 
     Operating expenses
      Research and development  399          4.6%          459          5.4%
      Selling, general
       and administrative     4,466         51.2%        4,150         48.8%
 
     Operating income           644          7.4%          917         10.8%
 
     Interest expense          (364)        (4.2%)        (288)        (3.4%)
     Other income                65          0.7%           53          0.6%
 
     Income before taxes        345          4.0%          682          8.0%
 
     Provision for income taxes 117          1.3%          225          2.6%
 
     Net income                $228          2.6%        $ 457          5.4%
 
     Basic earnings per
      share                  $ 0.03                     $ 0.05
 
     Diluted earnings per
      share                  $ 0.02                     $ 0.05
 
     Basic weighted
      average number of
      shares outstanding      8,893                      9,023
 
     Diluted weighted
      average number of
      shares outstanding      9,362                     10,165
 
 
     Contact:  Harry L. Zimmerman - Executive Vice President - General Counsel,
     of Encore Medical Corporation, 512-832-9500.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X72557552
 
 SOURCE  Encore Medical Corporation

RELATED LINKS

http://www.encoremed.com