Fourth Quarter Highlights
- Net sales of $104.6 million; an increase of 7.6% over prior year on a constant currency basis
- Adjusted EBITDA of $19.3 million, or 18.4% of net sales
- Stock repurchases of approximately 294,000 shares for $11.6 million
Fiscal Year 2015 Highlights
- Net sales of $396.5 million; an increase of 2.4% over prior year on a constant currency basis
- Adjusted EBITDA of $60.7 million, or 15.3% of net sales
LEWISVILLE, Texas--(BUSINESS WIRE)--Orthofix International N.V. (NASDAQ:OFIX) today reported its financial results for the fourth quarter and fiscal year ended December 31, 2015. For the fourth quarter of 2015, net sales were $104.6 million, diluted earnings per share from continuing operations was $0.11 and adjusted diluted earnings per share from continuing operations was $0.28. For the fiscal year of 2015, net sales were $396.5 million, diluted loss per share from continuing operations was ($0.12) and adjusted diluted earnings per share from continuing operations was $0.79.
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“Our fourth quarter performance further demonstrates our momentum and validates our strategy and the strength of our businesses. While we are very pleased with the results in the quarter, we also believe there is significant opportunity to continue to improve our performance going forward. In 2016 we will maintain our focus on executing initiatives that drive both top line growth and margin improvement,” said Brad Mason, President and Chief Executive Officer.
Fourth Quarter Financial Results
The following table provides net sales, net sales growth and constant currency net sales growth by strategic business unit (“SBU”) for the three months ended December 31, 2015 and 2014:
|Three Months Ended December 31,|
(Unaudited, U.S. Dollars, in thousands)
|Total net sales||$||104,622||$||100,284||4.3||%||7.6||%|
Sales force expansion and an increase in the number of worldwide spine procedures drove the increase in the Company’s BioStim and Biologics SBUs. The decline in net sales in the Extremity Fixation SBU was largely due to international challenges, including the strong U.S. dollar worldwide and restructuring the Company’s Brazil subsidiary earlier in the year. The increase in net sales in the Spine Fixation SBU was primarily due to reorganizing this SBU, which began in the fourth quarter of 2014 and included a significant expansion of the U.S. sales force in 2015.
Gross profit increased $4.4 million to $83.2 million, compared to $78.8 million in the prior year period. Gross margin increased to 79.5%, compared to 78.6% in the prior year period. The year-over-year increase in gross margin was driven primarily by an increase in the sales mix of BioStim and Biologics products, which have a higher gross margin than the fixation business products.
Total net margin (gross profit less sales and marketing expenses) was $38.5 million, an increase of 5.6% over $36.5 million in the prior year period. This improvement was driven by the increase in gross profit.
Operating expenses increased by $0.9 million to $75.8 million, compared to $74.9 million in the prior year period. This was driven by increases in sales and marketing expenses and research and development costs, offset by a decline in restatement and related costs.
Operating income was $7.4 million compared to $4.0 million in the prior year period.
Adjusted EBITDA, which excludes share-based compensation, foreign exchange impact, strategic investments, restatements and related costs, infrastructure investments and legal settlements, increased to $19.3 million or 18.4% of net sales for the fourth quarter, compared to $16.3 million or 16.3% of net sales in the prior year period.
Net income from continuing operations was $2.1 million, or $0.11 per diluted share, compared to net loss of ($5.1) million, or ($0.27) per diluted share in the prior year period.
Adjusted net income from continuing operations was $5.3 million, or $0.28 per diluted share, compared to adjusted net loss of ($0.9) million, or ($0.05) per diluted share in the prior year period.
As of December 31, 2015, cash and cash equivalents were $63.7 million compared to $71.2 million (including then restricted cash), as of December 31, 2014. As of December 31, 2015 the Company had no outstanding indebtedness and borrowing capacity of $125 million.
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