Biomet Swings to Profit
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowWarsaw-based Biomet is reporting Fiscal 2014 net income of $36.8 million, compared to a net loss of $623.4 million the prior year. The company is currently seeking regulatory approval for a proposed $13 billion merger with Zimmer Holdings Inc. (NYSE: ZMH).
July 10, 2014
News Release
Warsaw, Ind. — Biomet, Inc. (“the Company”) announced today preliminary financial results for its fourth quarter and fiscal year ended May 31, 2014. The final results for the three and twelve months ended May 31, 2014 will be made available to the public with the filing of Biomet’s Form 10-K for fiscal year 2014 and will include the finalization of income tax related amounts.
Fourth Quarter Preliminary Financial Results
Consolidated net sales increased 7.7% to $844.5 million worldwide during the fourth quarter of fiscal year 2014, compared to net sales of $783.9 million during the fourth quarter of fiscal year 2013. Excluding the effect of foreign currency, consolidated net sales increased 7.2% during the fourth quarter. U.S. net sales increased 6.9% during the fourth quarter to $498.5 million, while Europe net sales increased 10.8% (5.0% constant currency) to $208.9 million and International (primarily Canada, Latin America and the Asia Pacific region) net sales increased 6.4% (11.5% constant currency) to $137.1 million.
Consolidated net sales reflect the benefit of approximately 2% to 2.5% from additional revenue from the 2013 Spine Acquisition. On a consolidated basis, the Company had approximately one less selling day in the quarter compared to the prior year quarter.
Preliminary special items, after tax, totaled $50.9 million during the fourth quarter of fiscal year 2014, compared to $319.9 million during the fourth quarter of fiscal year 2013.
Preliminary reported operating income was $103.0 million during the fourth quarter of fiscal year 2014, compared to an operating loss of $139.3 million during the fourth quarter of fiscal year 2013. Excluding special items, adjusted operating income totaled $224.2 million during the fourth quarter of fiscal year 2014, compared to $214.9 million during the prior year period.
Preliminary reported net income in the quarter was $66.7 million, compared to a net loss of $221.2 million during the fourth quarter of the prior year. Excluding special items, adjusted net income totaled $117.6 million during the fourth quarter of fiscal year 2014, compared to $98.7 million for the fourth quarter of fiscal year 2013.
Excluding special items, adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) during the fourth quarter of fiscal year 2014 totaled $287.2 million, compared to $266.3 million for the fourth quarter of fiscal year 2013.
Preliminary reported cash flow from operations totaled $203.4 million during the fourth quarter of fiscal year 2014, compared to reported cash flow from operations of $194.7 million for the fourth quarter of fiscal year 2013. Free cash flow (operating cash flow minus capital expenditures) was $133.5 million, which included $60.4 million of cash interest paid in the quarter, compared to a free cash flow of $140.4 million during the fourth quarter of fiscal year 2013, including $73.1 million of cash interest paid.
Full Year Preliminary Financial Results
Consolidated net sales increased 5.6% to $3,223.4 million worldwide during fiscal year 2014, compared to net sales of $3,052.9 million during fiscal year 2013. Excluding the effect of foreign currency, consolidated net sales increased 6.1% during the fiscal year. U.S. net sales increased 5.8% during the fiscal year to $1,970.4 million, while Europe net sales increased 8.7% (4.8% constant currency) to $772.0 million and International (primarily Canada, Latin America and the Asia Pacific region) net sales increased 0.1% (9.3% constant currency) to $481.0 million.
Preliminary special items, after tax, totaled $383.3 million during fiscal year 2014, compared to $964.1 million during fiscal year 2013.
Preliminary reported operating income was $313.2 million during fiscal year 2014, compared to an operating loss of $164.5 million during fiscal year 2013. Excluding special items, adjusted operating income totaled $863.8 million during fiscal year 2014, compared to $837.6 million during the prior year period.
Preliminary reported net income was $36.8 million, compared to a net loss of $623.4 million during the prior year. Excluding special items, adjusted net income totaled $420.1 million during fiscal year 2014, compared to $340.7 million for fiscal year 2013.
Excluding special items, adjusted EBITDA during fiscal year 2014 totaled $1,078.6 million compared to $1,036.3 million for fiscal year 2013.
Preliminary reported cash flow from operations totaled $529.0 million during fiscal year 2014, compared to reported cash flow from operations of $468.5 million for fiscal year 2013. Free cash flow (operating cash flow minus capital expenditures) was $300.3 million, which included $347.4 million of cash interest paid during the year, compared to a free cash flow of $264.5 million during fiscal year 2013, including $388.6 million of cash interest paid.
At May 31, 2014, reported gross debt was $5,720.4 million, and cash and cash equivalents totaled $247.6 million, resulting in net debt of $5,472.8 million, compared to $5,610.8 million at May 31, 2013.
About Biomet
Biomet, Inc. and its subsidiaries design, manufacture and market surgical and non-surgical products used primarily by orthopedic surgeons and other musculoskeletal medical specialists. Biomet's product portfolio includes hip and knee reconstructive products; sports medicine, extremities and trauma products; spine, bone healing and microfixation products; dental reconstructive products; and cement, biologics and other products. Headquartered in Warsaw, Indiana, Biomet and its subsidiaries currently distribute products in approximately 90 countries.
Source: Biomet Inc.