Orthofix Reports Record Quarterly Sales; Net Earnings From Operations Increase 17%

Apr 26, 2001, 01:00 ET from Orthofix International N.V.

    MCKINNEY, Tex., April 26 /PRNewswire/ -- Orthofix International N.V.
 (Nasdaq: OFIX) today announced results for the first quarter ended March 31,
 2001.
     Sales for the three months ended March 31, 2001, were a record
 $38.5 million, representing an increase of 16% over the $33.3 million reported
 in the same period of 2000.
     Net income for the three months ended March 31, 2001, increased 17% to
 $4.9 million, compared with $4.2 million, which excluded non-recurring items,
 that were reported for the three months ended March 31, 2000.   In the same
 period, earnings per share, excluding non-recurring items, rose from $0.30 in
 2000 to $0.35 in 2001.  Diluted weighted average shares outstanding were
 14,217,170 for the quarter ended March 31, 2001, compared with 13,643,665
 outstanding as of March 31, 2000.
     The quarter's increase was lead by strong sales in Stimulation, Vascular
 and Other products.  Excluding the impact of foreign currency, which reduced
 sales by approximately $300,000, Orthopaedic sales increased 6.5%.
 
     Net sales by product group for the quarter ended March 31, 2001, were:
 
     (in thousands)                   2001            2000         Increase
 
     Orthopaedic                      11,210          10,809            4%
     Stimulation                      16,841          13,752           23%
     Vascular                          6,323           5,331           19%
     Other products                    4,096           3,384           21%
     Total                           $38,470         $33,276           16%
 
     Net sales for the quarter ended March 31, 2001 were:
     (in thousands)
 
     North America                    35,774             67%
     International                    12,695             33%
     Total                           $38,469            100%
 
     Charlie Federico, President and CEO, commented, "We are pleased with the
 strong performance of our Stimulation and Vascular businesses, reflecting good
 market growth and increasing acceptance of these products by payers and
 prescribers.  We expect that our first quarter investments in new product
 introduction and development of new distribution channels will lead to
 accelerated growth for Orthopaedic products."
 
     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 risks 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, 1999, and 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).
 
 
     ORTHOFIX INTERNATIONAL N.V.
     CONSOLIDATED INCOME STATEMENTS
     In thousands, except per share and share data
 
                                                     For the three months
                                                        ended March 31
                                                   2001                2000
                                                (Unaudited)         (Unaudited)
 
     Net sales                                     $38,470             $33,276
     Cost of sales                                  10,086               9,248
       Gross profit                                 28,384              24,028
 
     Operating expenses
       Sales and marketing                          14,084              11,471
       General and administrative                    3,843               3,427
       Research and development                      1,812               1,864
       Amortization                                  1,018                 922
       Litigation expenses-KCI                          45               2,000
                                                    20,802              19,684
 
     Operating income                                7,582               4,344
 
     Income from EBI litigation
      settlement                                         0              37,982
       (net of expenses)
     Other income                                      168                 278
       Net income before  income tax                 7,750              42,604
         and minority interests
     Income tax expense                             (2,304)            (10,133)
     Net income before minority interests            5,446              32,471
     Minority interests                               (515)               (403)
       Net income                                   $4,931             $32,068
 
 
       Net income per common share before            $0.35               $0.30
         non-recurring items-diluted
 
       Net income per common share -
        diluted                                      $0.35               $2.35
 
     Weighted average number of common
       shares outstanding - diluted             14,217,170          13,643,665
 
 
 
     ORTHOFIX INTERNATIONAL N.V.
     CONSOLIDATED BALANCE SHEETS
     In thousands
 
                                                   As of              As of
                                                 March 31,         December 31,
                                                    2001               2000
                                                (Unaudited)        (Unaudited)
     Assets
     Current assets:
          Cash and cash equivalents                 $43,643           $50,458
          Restricted cash                               932               932
          Trade accounts receivable                  43,608            42,203
          Inventories                                19,396            19,179
          Deferred income taxes                       3,970             3,970
          Other current assets                        9,035             8,992
                  Total current assets              120,584           125,734
 
     Securities and other investments                 2,570             2,757
     Property, plant and equipment, net              11,179            10,124
     Intangible assets, net                          50,256            51,448
     Long-term deferred income taxes                    431               371
                  Total assets                     $185,020          $190,434
 
 
     Liabilities and shareholders' equity
     Current liabilities:
          Bank borrowings                            $1,997            $5,452
          Current portion of long-term
           debt                                       3,716             4,512
          Trade accounts payable                      8,262             7,900
          Other current liabilities                  21,955            25,670
                  Total current liabilities          35,930            43,534
 
     Long-term debt                                     141               854
     Deferred income taxes                            1,122             1,173
     Deferred income                                  2,500             2,500
     Other long-term liabilities                        716                91
     Deferred compensation                              768               768
     Minority interests                               8,788             8,526
                  Total liabilities                  49,965            57,446
 
 
     Shareholders' equity
          Common shares                               1,368             1,366
          Additional paid-in capital                 66,842            66,711
          Less: Treasury shares, at cost             (7,896)           (5,841)
                                                     60,314            62,236
          Retained earnings                          81,248            76,317
          Accumulated other comprehensive
           income                                    (6,507)           (5,565)
                  Total shareholders'
                   equity                           135,055           132,988
 
                  Total liabilities and
                   shareholders' equity            $185,020          $190,434
 
 
     ORTHOFIX INTERNATIONAL N.V.
     CONSOLIDATED STATEMENTS OF CASH FLOWS
 
     In thousands
 
                                          For the three months ended March 31,
                                                      2001            2000
                                                   (Unaudited)    (Unaudited)
 
 
     Net cash provided by operating activities         $1,734        $50,787
 
 
     Cash flows from investing activities:
      Capital expenditure                             (2,187)          (822)
       Net cash used in investing activities          (2,187)          (822)
 
 
     Cash flows from financing activities:
      Net repayment of loans                            (884)        (1,506)
      Repayment of bank borrowings                    (3,297)          (775)
      Proceeds from issuance of common stock              133          1,254
      Acquisition of treasury shares                  (2,055)              0
       Net cash used in financing activities          (6,103)        (1,027)
 
 
     Effect of exchange rate changes on cash            (259)           (74)
 
 
     Net (decrease) increase in cash
      and cash equivalents                            (6,815)         48,864
     Cash and cash equivalents at the
      beginning of the period                          50,458          9,724
     Cash and cash equivalents at the
      end of the period                               $43,643        $58,588
 
 
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SOURCE Orthofix International N.V.
    MCKINNEY, Tex., April 26 /PRNewswire/ -- Orthofix International N.V.
 (Nasdaq: OFIX) today announced results for the first quarter ended March 31,
 2001.
     Sales for the three months ended March 31, 2001, were a record
 $38.5 million, representing an increase of 16% over the $33.3 million reported
 in the same period of 2000.
     Net income for the three months ended March 31, 2001, increased 17% to
 $4.9 million, compared with $4.2 million, which excluded non-recurring items,
 that were reported for the three months ended March 31, 2000.   In the same
 period, earnings per share, excluding non-recurring items, rose from $0.30 in
 2000 to $0.35 in 2001.  Diluted weighted average shares outstanding were
 14,217,170 for the quarter ended March 31, 2001, compared with 13,643,665
 outstanding as of March 31, 2000.
     The quarter's increase was lead by strong sales in Stimulation, Vascular
 and Other products.  Excluding the impact of foreign currency, which reduced
 sales by approximately $300,000, Orthopaedic sales increased 6.5%.
 
     Net sales by product group for the quarter ended March 31, 2001, were:
 
     (in thousands)                   2001            2000         Increase
 
     Orthopaedic                      11,210          10,809            4%
     Stimulation                      16,841          13,752           23%
     Vascular                          6,323           5,331           19%
     Other products                    4,096           3,384           21%
     Total                           $38,470         $33,276           16%
 
     Net sales for the quarter ended March 31, 2001 were:
     (in thousands)
 
     North America                    35,774             67%
     International                    12,695             33%
     Total                           $38,469            100%
 
     Charlie Federico, President and CEO, commented, "We are pleased with the
 strong performance of our Stimulation and Vascular businesses, reflecting good
 market growth and increasing acceptance of these products by payers and
 prescribers.  We expect that our first quarter investments in new product
 introduction and development of new distribution channels will lead to
 accelerated growth for Orthopaedic products."
 
     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 risks 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, 1999, and 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).
 
 
     ORTHOFIX INTERNATIONAL N.V.
     CONSOLIDATED INCOME STATEMENTS
     In thousands, except per share and share data
 
                                                     For the three months
                                                        ended March 31
                                                   2001                2000
                                                (Unaudited)         (Unaudited)
 
     Net sales                                     $38,470             $33,276
     Cost of sales                                  10,086               9,248
       Gross profit                                 28,384              24,028
 
     Operating expenses
       Sales and marketing                          14,084              11,471
       General and administrative                    3,843               3,427
       Research and development                      1,812               1,864
       Amortization                                  1,018                 922
       Litigation expenses-KCI                          45               2,000
                                                    20,802              19,684
 
     Operating income                                7,582               4,344
 
     Income from EBI litigation
      settlement                                         0              37,982
       (net of expenses)
     Other income                                      168                 278
       Net income before  income tax                 7,750              42,604
         and minority interests
     Income tax expense                             (2,304)            (10,133)
     Net income before minority interests            5,446              32,471
     Minority interests                               (515)               (403)
       Net income                                   $4,931             $32,068
 
 
       Net income per common share before            $0.35               $0.30
         non-recurring items-diluted
 
       Net income per common share -
        diluted                                      $0.35               $2.35
 
     Weighted average number of common
       shares outstanding - diluted             14,217,170          13,643,665
 
 
 
     ORTHOFIX INTERNATIONAL N.V.
     CONSOLIDATED BALANCE SHEETS
     In thousands
 
                                                   As of              As of
                                                 March 31,         December 31,
                                                    2001               2000
                                                (Unaudited)        (Unaudited)
     Assets
     Current assets:
          Cash and cash equivalents                 $43,643           $50,458
          Restricted cash                               932               932
          Trade accounts receivable                  43,608            42,203
          Inventories                                19,396            19,179
          Deferred income taxes                       3,970             3,970
          Other current assets                        9,035             8,992
                  Total current assets              120,584           125,734
 
     Securities and other investments                 2,570             2,757
     Property, plant and equipment, net              11,179            10,124
     Intangible assets, net                          50,256            51,448
     Long-term deferred income taxes                    431               371
                  Total assets                     $185,020          $190,434
 
 
     Liabilities and shareholders' equity
     Current liabilities:
          Bank borrowings                            $1,997            $5,452
          Current portion of long-term
           debt                                       3,716             4,512
          Trade accounts payable                      8,262             7,900
          Other current liabilities                  21,955            25,670
                  Total current liabilities          35,930            43,534
 
     Long-term debt                                     141               854
     Deferred income taxes                            1,122             1,173
     Deferred income                                  2,500             2,500
     Other long-term liabilities                        716                91
     Deferred compensation                              768               768
     Minority interests                               8,788             8,526
                  Total liabilities                  49,965            57,446
 
 
     Shareholders' equity
          Common shares                               1,368             1,366
          Additional paid-in capital                 66,842            66,711
          Less: Treasury shares, at cost             (7,896)           (5,841)
                                                     60,314            62,236
          Retained earnings                          81,248            76,317
          Accumulated other comprehensive
           income                                    (6,507)           (5,565)
                  Total shareholders'
                   equity                           135,055           132,988
 
                  Total liabilities and
                   shareholders' equity            $185,020          $190,434
 
 
     ORTHOFIX INTERNATIONAL N.V.
     CONSOLIDATED STATEMENTS OF CASH FLOWS
 
     In thousands
 
                                          For the three months ended March 31,
                                                      2001            2000
                                                   (Unaudited)    (Unaudited)
 
 
     Net cash provided by operating activities         $1,734        $50,787
 
 
     Cash flows from investing activities:
      Capital expenditure                             (2,187)          (822)
       Net cash used in investing activities          (2,187)          (822)
 
 
     Cash flows from financing activities:
      Net repayment of loans                            (884)        (1,506)
      Repayment of bank borrowings                    (3,297)          (775)
      Proceeds from issuance of common stock              133          1,254
      Acquisition of treasury shares                  (2,055)              0
       Net cash used in financing activities          (6,103)        (1,027)
 
 
     Effect of exchange rate changes on cash            (259)           (74)
 
 
     Net (decrease) increase in cash
      and cash equivalents                            (6,815)         48,864
     Cash and cash equivalents at the
      beginning of the period                          50,458          9,724
     Cash and cash equivalents at the
      end of the period                               $43,643        $58,588
 
 
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 SOURCE  Orthofix International N.V.