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News Release

Wright Medical Group, Inc. Reports Results for Third Quarter Ended September 30, 2002

ARLINGTON, Tenn., Oct 28, 2002 (BUSINESS WIRE) -- Wright Medical Group, Inc. (Nasdaq:WMGI), a global orthopaedic medical device company specializing in the design, manufacture and marketing of reconstructive joint devices and bio-orthopaedic materials, today reported financial results for its third quarter ending September 30, 2002.

Net sales totaled $46.1 million for a record third quarter ended September 30, 2002, representing an 18% increase over net sales of $39.1 million during the third quarter of 2001. Excluding the impact of foreign currency, net sales increased 16% during the third quarter. The Company's net income for the third quarter of 2002 increased to $2.5 million, or $.07 per diluted share, compared to a net loss of $1.0 million, or $(.04) per share pro forma in the same quarter of 2001.

For the first nine months of 2002, the Company's sales totaled $148.6 million, representing a 17% increase over net sales of $126.8 million for the first nine months of 2001. Foreign currency had an insignificant net impact on this full nine-month sales comparison. For the first nine months of 2002, the Company's net income totaled $14.7 million, or $.43 per diluted share ($.36 per share excluding the Company's first quarter arbitration settlement award) compared to a net loss of $2.1 million, or $(.09) per share pro forma for the same period last year.

F. Barry Bays, President and Chief Executive Officer commented, "We are very pleased with our outstanding third quarter operating results, which achieved the top end of our outlook range for both sales and earnings performance. We again benefited from a very strong sales performance by our bio-orthopaedic materials business, which achieved growth of 53% domestically and 51% globally during the third quarter. Our proliferation of procedure-specific bio-orthopaedic products launched throughout this year continued to gain surgeon acceptance and strengthen our leadership position in the bone graft substitute marketplace. Our extremities product line likewise continued to provide exceptional growth over prior periods while our large-joint reconstructive product lines again delivered solid quarterly results. Gross margin expansion and operating expense leverage produced a 650 basis point improvement in operating margins and contributed to our 58% increase in adjusted EBITDA during the third quarter versus the prior year comparable quarter."

Mr. Bays continued, "Together, the results of the six quarters we have reported thus far as a public company provide us compelling validation that our chosen global business strategies have been appropriate and effective. As we proceed through the fourth quarter of 2002, we anticipate continued contribution to both top- and bottom-line performance from our new products launched this year, our ongoing efforts to deliver operating efficiency and continued investments to strengthen our global distribution organization."

As previously reported, the Company adopted the provisions of SFAS No. 142, "Goodwill and Other Intangible Assets", effective January 1, 2002. Under SFAS No. 142, goodwill is no longer amortized, but is subject to annual impairment tests. If goodwill had not been amortized during the three months ended September 30, 2001, net loss would have been improved by $491,000, to $(553,000) and pro forma net loss per share would have improved by $.02 to $(.02) per share.

Sales Review

Domestic sales totaled $29.2 million during the third quarter and $91.3 million during the first nine months of 2002, representing increases of 16% and 14%, respectively, compared to year-ago periods. Domestic sales of the Company's knee, hip, extremity and bio-orthopaedic product lines increased by 4%, 11%, 20% and 53%, respectively, during the third quarter of 2002 compared to the year-ago quarter.

International sales totaled $16.9 million during the third quarter and $57.2 million during the first nine months of 2002, representing increases of 15% and 21%, respectively, excluding favorable foreign currency impacts of approximately $900,000 in the third quarter and $800,000 for the first nine months of 2002 overall.

Outlook

The Company's anticipated targets for the upcoming fourth quarter for net sales are in the range of $51 million to $53 million, with adjusted EBITDA results ranging from $10 million to $11.5 million. The Company's anticipated net sales targets for the full year 2002 are in the range of $199.5 million to $201.5 million, representing annualized growth of approximately 15% to 17%, with adjusted EBITDA results (exclusive of the Company's first quarter $4.2 million arbitration award) of approximately $41 million to $42.5 million, compared to 2001 adjusted EBITDA of $26.9 million. In addition to the risks and uncertainties described further below, the Company's 2002 sales and adjusted EBITDA expectations are forward looking and actual results may differ materially. These are the Company's anticipated targets, not predictions of actual performance.

Conference Call

As previously announced, the Company will host a conference call for financial analysts at 3:30 p.m. Central Time today. A simultaneous audio webcast of the call will be accessible via the internet at www.wmt.com. The call will also be archived on this site. A recording of the call will be available from 5:30 p.m., Central on October 28, 2002 until 11:59 p.m., Central on November 4, 2002. To hear this recording dial (800) 428-6051 and enter the registration number 264121.

Wright Medical Group, Inc. is a global orthopaedic device company specializing in the design, manufacture and marketing of reconstructive joint devices and bio-orthopaedic materials. The Company has been in business for over fifty years and markets its products in over 40 countries worldwide. For more information about Wright Medical, visit our website at www.wmt.com.

Except for historical information contained herein, the disclosures in this press release constitute "forward-looking statements" within the meaning of the Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended and are made under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties, including but not limited to: continued surgeon use and endorsement of our products, increased government regulation of our products generally and our allograft based bio-orthopaedic products specifically, continued acceptance of allograft technology, availability of key components in our allograft products, adequate levels of reimbursement for our products and other risks and uncertainties described in the Company's Annual Report on Form 10-K for the year ended December 31, 2001 and in subsequent Quarterly Reports filed on Form 10-Q. Although the Company believes that the assumptions, on which the forward-looking statements contained herein are based are reasonable, any of those assumptions could prove to be inaccurate given the inherent uncertainties as to the occurrence or non-occurrence of future events. There can be no assurance that the forward-looking statements contained in this press release will prove to be accurate. The inclusion of a forward-looking statement herein should not be regarded as a representation by the Company that the Company's objectives will be achieved. The forward-looking statements included herein are made as of the date of this press release, and Wright Medical assumes no obligation to update the forward-looking statements after the date hereof.

                     Wright Medical Group, Inc.
            Consolidated Condensed Statements of Operations
           (in thousands, except per share data--unaudited)
                             Three Months Ended    Nine Months Ended
                            -------------------- ---------------------
                            Sept. 30,  Sept. 30,  Sept. 30,  Sept. 30,
                              2002       2001       2002       2001
                            --------- ---------- ---------- ----------
Net sales                    $46,086    $39,062   $148,563   $126,764
Cost of sales                 11,976     11,314     40,968     37,967
                            --------- ---------- ---------- ----------
  Gross profit                34,110     27,748    107,595     88,797
Operating Expenses:
  Selling, general and
   administrative             26,338     23,233     79,625     69,784
  Research and development     2,763      2,242      7,889      6,842
  Amortization of intangible
   assets                      1,076      1,372      2,850      4,024
  Stock-based expense            419        486      1,316      1,587
  Arbitration settlement award     -          -     (4,200)         -
                            --------- ---------- ---------- ----------
  Total operating expenses    30,596     27,333     87,480     82,237
                            --------- ---------- ---------- ----------
  Income from operations       3,514        415     20,115      6,560
Interest (income) /
 expense, net                    (79)     1,342        693      7,365
Other (income) /
 expense, net                    145       (311)      (988)       178
                            --------- ---------- ---------- ----------
  Income (loss) before
   income taxes                3,448       (616)    20,410       (983)
Provision for income taxes       926        428      5,725      1,089
                            --------- ---------- ---------- ----------
  Income (loss) before
   extraordinary item          2,522     (1,044)    14,685     (2,072)
Extraordinary loss on early
 retirement of debt, net of
 taxes                             -     (1,611)         -     (1,611)
                            --------- ---------- ---------- ----------
        Net income (loss)     $2,522    $(2,655)   $14,685    $(3,683)
                            ========= ========== ========== ==========
Net income (loss) per share:
  Net income (loss)           $2,522    $(2,655)   $14,685    $(3,683)
  Accrued preferred
   stock dividends                 -       (214)         -     (2,546)
                            --------- ---------- ---------- ----------
  Net income (loss)
   applicable to
   common stockholders       $ 2,522   $ (2,869)  $ 14,685   $ (6,229)
                            ========= ========== ========== ==========
  Net income (loss) per
   common share-basic           $.08     $(0.12)      $.46     $(0.77)
                            ========= ========== ========== ==========
  Net income (loss) per
   common share-diluted         $.07     $(0.12)      $.43     $(0.77)
                            ========= ========== ========== ==========
  Weighted-average number of
   common shares outstanding-
   diluted                    34,745     23,715     34,025      8,037
                            ========= ========== ========== ==========
Pro forma net income (loss) per share: (1)
  Pro forma net income (loss)
   applicable to common
   stockholders              $ 2,522   $ (1,044)  $ 14,685   $ (2,072)
                            ========= ========== ========== ==========
  Net income (loss) per common
   share-basic                  $.08     $(0.04)      $.46     $(0.09)
                            ========= ========== ========== ==========
  Net income (loss) per common
   share-diluted                $.07     $(0.04)      $.43     $(0.09)
                            ========= ========== ========== ==========
  Weighted-average number of
   common shares outstanding--
   pro forma diluted          34,745     27,116     34,025     21,873
                            ========= ========== ========== ==========
(1) Pro forma presentation gives effect to the conversion of all
    preferred stock and preferred stock dividends into common stock as
    if such event occurred on January 1, 2001, and excludes the effect
    of extraordinary charges for the early retirement of debt during
    the three months ended Sept. 30,  30, 2001.
                      Wright Medical Group, Inc.
                     Components of Adjusted EBITDA
                  (dollars in thousands - unaudited)
                              Three Months Ended   Nine Months Ended
                              ------------------- --------------------
                              Sept. 30, Sept. 30,  Sept. 30, Sept. 30,
                                2002      2001       2002      2001
                              --------- --------- ---------- ---------
Earnings before interest,
 taxes, and extraordinary item $ 3,369     $ 726   $ 21,103   $ 6,382
Depreciation                     3,565     2,748     10,083     7,228
Amortization of intangible
 assets                          1,076     1,372      2,850     4,024
Stock-based expense                419       486      1,316     1,587
Arbitration settlement award         -         -     (4,200)        -
                              --------- --------- ---------- ---------
  Adjusted EBITDA               $8,429    $5,332    $31,152   $19,221
                              ========= ========= ========== =========
  Adjusted EBITDA as a
   percentage of net sales        18.3%     13.7%      21.0%     15.2%
                              ========= ========= ========== =========
                      Wright Medical Group, Inc.
                 Consolidated Condensed Sales Analysis
                  (dollars in thousands - unaudited)
                   Three Months Ended          Nine Months Ended
               --------------------------- ----------------------------
               Sept. 30, Sept. 30,    %     Sept. 30, Sept. 30,    %
                 2002       2001    change    2002      2001     change
               --------- -------- -------- --------- --------- --------
Geographic
----------
Domestic        $29,227  $25,157     16.2%  $91,341   $80,000     14.2%
International    16,859   13,905     21.2%   57,222    46,764     22.4%
                -------- -------- -------- --------- --------- --------
Total net sales $46,086  $39,062     18.0% $148,563  $126,764     17.2%
                ======== ======== ======== ========= ========= ========
Product Line
------------
Knee products   $16,651  $15,621      6.6%  $54,161   $50,164      8.0%
Hip products     12,514   10,394     20.4%   41,497    35,692     16.3%
Extremity
 products         6,027    4,989     20.8%   18,911    15,349     23.2%
Bio-orthopaedic
 materials        9,280    6,135     51.3%   27,848    19,280     44.4%
Other             1,614    1,923   (16.1)%    6,146     6,279    (2.1)%
                -------- -------- -------- --------- --------- --------
Total net sales $46,086  $39,062     18.0% $148,563  $126,764     17.2%
                ======== ======== ======== ========= ========= ========
                      Wright Medical Group, Inc.
                 Consolidated Condensed Balance Sheets
                       (in thousands--unaudited)
                                                   Sept. 30,  Dec. 31,
                                                     2002       2001
                                                   --------- ---------
Assets:
Current Assets:
  Cash and cash equivalents                         $48,837    $2,770
  Accounts receivable, net                           36,646    32,805
  Inventories                                        53,925    41,878
  Prepaid expenses and other current assets          17,555    15,545
                                                   --------- ---------
       Total current assets                         156,963    92,998
                                                   --------- ---------
Property, plant and equipment, net                   56,014    50,965
Intangible assets, net                               45,164    47,581
Other assets                                          1,854     2,175
                                                   --------- ---------
                                                   $259,995  $193,719
                                                   ========= =========
Liabilities and Stockholders' Equity
Current liabilities:
  Accounts payable                                   $9,508    $8,530
  Accrued expenses and other current liabilities     29,229    33,092
  Current portion of long-term obligations            5,316     3,830
                                                   --------- ---------
     Total current liabilities                       44,053    45,452
                                                   --------- ---------
Long-term obligations                                17,531    19,804
Other liabilities                                     9,034    11,163
                                                   --------- ---------
     Total liabilities                               70,618    76,419
                                                   --------- ---------
Stockholders' equity                                189,377   117,300
                                                   --------- ---------
                                                   $259,995  $193,719
                                                   ========= =========

CONTACT: Wright Medical Group, Inc., Arlington John K. Bakewell, 901/867-4527 www.wmt.com