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Investor Contact: Frank N. Hawkins, Jr. or Julie Marshall · Hawk Associates Inc. · (305) 451-1888 · www.hawkassociates.com
Exactech Q1 Net Income Up 17% to $3.8 Million. Diluted EPS $0.29 vs. $0.25. Worldwide Sales Up 1% to $59.3 Million. U.S. Sales Increased 6%.
ALERT: A webcast replay of the Exactech Q1 2013 earnings conference call is available at http://public.viavid.com/index.php?id=104163. This call will be archived for approximately 90 days.
Please click the red PDF button to see a printable Investment Profile for Exactech
Exactech is a pure play orthopaedic competitor
gaining market share in the rapidly expanding global
biomedical device industry. The company's products are
used in the restoration of bones and joints that have deteriorated
as a result of injury or disease such as arthritis.
Exactech develops, manufactures, markets, distributes and sells its orthopaedic implant devices, including knee, shoulder and hip implant systems, surgical instrumentation, spine products and biologic services to hospitals and physicians in the U.S. and over 30 markets in Europe, the Americas, Asia and the Pacific. International sales represented about 35% of total 2012 company sales.
Founded and led by an orthopaedic surgeon, the company
has built its success on its customer-centric culture.
Design assistance and feedback from its surgeon customers have helped Exactech develop a pipeline of innovative products that improve patient outcomes.
Q1 2013 Segment Performance
• Knee implant revenue decreased 4% to $20.5 M
• Extremity implant revenue rose 21% to $15.7 M
• Hip implant revenue decreased 5% to $10.4 M
• Biologic/Spine revenue decreased 2% to $6.1M
• Other revenue decreased 7% to $6.6 M
FDA CLEARED PRODUCTS AND SERVICES
An estimated one million knee replacement procedures
are performed worldwide each year. To help meet this
demand, Exactech continues to develop next generation
knee systems that respond to the needs of the hospital and
surgical community. In 2011 Exactech introduced its new
Logic knee system, which has received strong initial
acceptance from its surgeon customers. Logic and the earlier generation Optetrak® differentiated knee implant products provided 36.3% of the company's revenue in 2012.
Representing almost 23.2% of the company’s 2012 revenues, the Equinoxe® shoulder implant system is Exactech’s fastest growing product line posting 30% growth in 2012.
Hip products, which accounted for 18.2% of company revenues in 2012, use materials such as ceramic bearing surfaces and enhanced polyethylene for industry leading wear performance.
Exactech’s biologic and spine products
together represented 10.9% of 2012 revenue.
The company began distribution of biologic
tissue materials in 1998, and entered the
spine market with an acquisition of a spine
products company in early 2008. Exactech
offers a variety of allograft tissue material for
grafting and repairing bone defects, and a
spine platform that provides a portfolio of
spine products with the potential to expand
domestically and internationally.
Exactech Launches Gibralt® OCT Spinal System for Complex Cervical Thoracic Spine Procedures
Exactech Q1 Net Income up 17% to $3.8 Million; Diluted EPS $.29 vs $.25; Worldwide Sales Up 1% to $59.3 Million; U.S. Sales Increased 6%
Exactech Schedules First Quarter 2013 Earnings Release and Conference Call
Exactech to Showcase Innovations in Joint Replacement During AAOS Annual Conference in Chicago
Exactech 2012 Revenue Up 9% to $224.3M, Net Income Up 44% to $12.7M, EPS $0.96
- Market acceptance of new products
- Significant resources of larger competitors
- New government taxes
- Partial dependency on third-party manufacturers
The company said the first quarter sales were slightly below its expectations due to weakness in European sales and the impact of an unfavorable currency swing, partially reflecting a weaker Japanese yen. U.S. sales in the quarter were stronger with the help of continuing healthy sales of the company’s shoulder products. The currency movement as well as continued focus on managing costs enabled the company to decrease its operating expenses and deliver a 17% increase in net income.
U.S. sales were up 6% to $39.0 million compared with $36.8 million a year earlier. International sales decreased 7% to $20.3 million On a constant currency basis, international sales decreased 5% and worldwide sales rose 2% in the quarter.
The company noted that gross margins were flat at 69% for the first quarter due to higher growth in the U.S. market and continued cost reductions attributable to increased internal manufacturing.
Total operating expenses for the first quarter decreased 2% to $34.6 million and as a percentage of sales decreased to 58% from 60% in the first quarter of 2012.
General and administrative expenses decreased 10% in the quarter to $5.1 million from $5.6 million. R&D expenses decreased 6% to $3.9 million.
Exactech’s guidance for 2013 is revenue of $236 million - $242 million and a diluted EPS target of $1.03 - $1.09. For the second quarter of
2013, the company anticipates revenue of $57 - $59 million and diluted EPS of $0.24 - $0.26. 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
Chairman and Chief Executive Officer-
President and Director-
EVP of Research and Development-
VP of Administration; Corporate Secretary-
Senior Vice President, General Manager – Biologics Division-