UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 9, 2011
Tornier N.V.
(Exact name of registrant as specified in its charter)
The Netherlands |
|
1-35065 |
|
98-0509600 |
(State or Other Jurisdiction of Incorporation) |
|
(Commission File Number) |
|
(I.R.S. Employer Identification |
Fred Roeskestraat 123 1076 EE Amsterdam, The Netherlands |
|
None |
(Address of Principal Executive Offices) |
|
(Zip Code) |
(+ 31) 20 675-4002
(Registrants telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On August 9, 2011, Tornier N.V. issued a press release announcing its consolidated financial results for the second quarter of 2011. A copy of the press release is attached as Exhibit 99.1 to this report and the information set forth therein is incorporated herein by reference and constitutes a part of this report.
The attached press release includes the following non-GAAP measures: EBITDA, which represents net loss before interest expense, income tax expense and benefit, depreciation and amortization, and Adjusted EBITDA, which gives further effect to, among other things, non-operating income and expense related to the mark to market of the previously outstanding warrant liability, foreign currency gains and losses, share-based compensation, loss on extinguishment of debt, special charges and operating expenses from a consolidated variable interest entity.
In order to measure Torniers sales performance on a constant currency basis, it is necessary to remove the impact of changes in foreign currency exchange rates, which affects the comparability and trend of sales. Constant currency results are calculated by translating current year results at prior year average foreign currency exchange rates.
Tornier believes that EBITDA and Adjusted EBITDA provide additional information for measuring performance and are measures frequently used by securities analysts and investors and therefore management uses these metrics to evaluate Torniers business. EBITDA and Adjusted EBITDA do not represent, and should not be used as a substitute for, net income (loss) or cash flows from operations as determined in accordance with generally accepted accounting principles, and neither EBITDA nor Adjusted EBITDA is necessarily an indication of whether cash flow will be sufficient to fund Torniers cash requirements.
Torniers definitions of constant currency, EBITDA and Adjusted EBITDA may differ from that of other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Tornier believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Torniers results of operations as determined in accordance with GAAP and these measures should only be used to evaluate its results of operations in conjunction with the corresponding GAAP measures.
Tornier uses these non-GAAP measures in making operating decisions because it believes the measures provide meaningful supplemental information regarding core operational performance and give a better understanding of how Tornier should invest in research and development activities and how Tornier should allocate resources to both ongoing and prospective business initiatives. Tornier uses these measures to help make budgeting and spending decisions, for example, between product development expenses and research and development, sales and marketing and general and administrative expenses. Additionally, management is evaluated on the basis of these non-GAAP measures when determining achievement of their incentive performance compensation targets. Further, these non-GAAP measures facilitate managements internal comparisons to both Torniers historical operating results and to Torniers competitors operating results.
All of the historical non-GAAP measures are reconciled to the most directly comparable GAAP measure in the press release. Tornier is furnishing the information contained in this report, including Exhibit 99.1, pursuant to Item 2.02 of Form 8-K promulgated by the Securities and Exchange Commission (the SEC). This information shall not be deemed to be filed with the SEC or incorporated by reference into any other filing with the SEC. By filing this report on Form 8-K and furnishing this information, Tornier makes no admission as to the materiality of any information in this report, including Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
|
Description |
99.1 |
|
Press Release issued August 9, 2011 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: August 9, 2011 |
|
TORNIER N.V. |
| |
|
|
|
| |
|
|
|
| |
|
|
By: |
/s/ Kevin M. Klemz |
|
|
|
Name: |
Kevin M. Klemz | |
|
|
Title: |
Vice President, Chief Legal Officer and Secretary | |
Exhibit 99.1
FOR IMMEDIATE RELEASE
TORNIER REPORTS SECOND QUARTER 2011 FINANCIAL RESULTS
Extremity Product Sales Growth Reported at 19%, 14% Constant Currency
Sales and Adjusted EBITDA Guidance Maintained for 2011
AMSTERDAM, The Netherlands, August 9, 2011 Tornier N.V. (NASDAQ: TRNX), a global medical device company focused on providing surgical solutions to orthopaedic extremity specialists, reported sales of $65.2 million for the second quarter of 2011 compared to sales of $54.6 million for the second quarter 2010, an increase of 19.4% as reported and 12.2% in constant currency. Year to date sales were reported at $134.6 million compared to sales of $116.4 million in the first half of 2010, an increase of 15.6% as reported and 12.1% in constant currency. Second quarter 2011 sales of Torniers extremity product categories increased 19.3% as reported, 14.4% in constant currency over the prior years second quarter, and represented 78% of reported global sales.
Douglas W. Kohrs, President and Chief Executive Officer of Tornier, commented, We are pleased to report double digit constant currency growth in the second quarter despite a challenging health care utilization environment. Upper extremities lead our global growth as the new Aequalis Ascend shoulder arthroplasty system continues to exceed our expectations while our flagship Aequalis family of shoulder arthroplasty systems continues to grow. We also recognized double digit constant currency sales growth of our lower extremity and sports medicine/biologics product categories and we continue to expect these product lines to benefit in the second half from global expansion and several new product introductions.
The Companys second quarter 2011 adjusted EBITDA, as defined in the GAAP to non-GAAP reconciliation provided later in this release, was $6.2 million or 9.6% of sales, compared to $6.0 million in the same quarter last year. For the first six months of 2011, adjusted EBITDA reached $15.4 million or 11.4% of sales, compared to $10.8 million or 9.2% of sales in the same period last year.
Mr. Kohrs continued, Our second quarter operating results met our expectations and we remain on track to demonstrate continued improvement in adjusted EBITDA for the full year, while maintaining our commitment to innovation, evidence-based medicine, and clinical education.
Sales and Product Review
Torniers second quarter 2011 constant currency sales growth of 12.2% continued to be led by its extremity product line categories which together posted constant currency growth of 14.4% over second quarter 2010. Within the extremity products group, second quarter constant currency growth of the upper extremity category was 15.1% led by the new Aequalis Ascend arthroplasty system. The recent international launch of the new Simpliciti stemless shoulder system is expected to contribute to upper extremity sales growth in the second half of 2011. Torniers lower extremity and sports medicine and biologics product categories posted constant currency sales growth rates of 11.2% and 11.8%, respectively, in the
second quarter over the same quarter last year. The lower extremity product category is beginning to benefit from the expanded instrument set availability for key new products such as the Stabilis ankle fusion system and the Wave® calcaneal fracture system. Torniers sports medicine and biologics product category has seen the early benefit of the launch of the BioFiber® surgical mesh and expanded availability in our international markets. Torniers large joint product category again posted above market constant currency growth in the second quarter at 4.5% over the same quarter last year, primarily as the result of favorable reception to the Companys total hip arthroplasty systems.
On a geographic basis as compared to second quarter 2010, Torniers second quarter 2011 sales in the United States increased by 12.1% and represented 53% of global sales. International sales increased 28.7% in the quarter as reported and 12.3% in constant currency, representing 47% of global sales.
Outlook
The Company is confirming and narrowing its previous guidance and now projects 2011 sales in the range of $260 to $265 million, representing growth of 14% to 17% as reported, and 12% to 14% in constant currency over 2010 sales. The Company projects 2011 adjusted EBITDA, as described in the GAAP to non-GAAP reconciliation provided later in this release, of $29 to $32 million or 11% to 12% of total sales.
For the third quarter of 2011, the Company projects sales in the range of $57.0 to $59.0 million, representing growth of 15% to 19%, based on recent currency exchange rates, and 12% to 16% in constant currency over third quarter 2010. The Company projects adjusted EBITDA for the third quarter of 2011 of $4.5 to $5.5 million, representing 8% to 9% of sales.
Earnings Call Information
Tornier will host a conference call today at 5:30 p.m. eastern time to discuss its second quarter 2011 financial results. The conference call will be available to interested parties through a live audio webcast available through the Companys website at www.tornier.com where it will be available for replay beginning two hours after completion of the call and archived and accessible for approximately 12 months. Those without internet access may join the call from within the U.S. by dialing 877-673-5355; outside the U.S., dial +1-760-666-3805.
Forward-Looking Statements
Statements contained in this release that relate to future, not past, events are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations of future events and often can be identified by words such as expect, should, project, anticipate, intend, will, may, believe, could, would, continue, outlook, guidance, other words of similar meaning or the use of future dates. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Uncertainties and risks may cause Torniers actual results to be materially different than those expressed in or implied by Torniers forward-looking statements. For Tornier, such uncertainties and risks include, among others, Torniers future operating results and financial performance, fluctuations in foreign currency exchange rates, the effect of global economic conditions, the timing of regulatory approvals and introduction of new products,
physician acceptance, endorsement, and use of new products; the effect of regulatory actions, changes in and adoption of reimbursement rates, potential product recalls, competitor activities and the costs and effects of litigation and changes in tax and other legislation. More detailed information on these and other factors that could affect Torniers actual results are described in Torniers filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. Tornier undertakes no obligation to update its forward-looking statements.
About Tornier
Tornier is a global medical device company focused on serving extremities specialists who treat orthopaedic conditions of the shoulder, elbow, wrist, hand, ankle and foot. The Companys broad offering of over 80 product lines includes joint replacement, trauma, sports medicine, and biologic products to treat the extremities, as well as joint replacement products for the hip and knee in certain international markets. Since its founding approximately 70 years ago, Torniers Specialists Serving Specialists philosophy has fostered a tradition of innovation, intense focus on surgeon education, and commitment to advancement of orthopaedic technology stemming from its close collaboration with orthopaedic surgeons and thought leaders throughout the world. For more information regarding Tornier, visit www.tornier.com.
Use of Non-GAAP Financial Measures
To supplement Torniers consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), Tornier uses certain non-GAAP financial measures in this release. Reconciliations of the non-GAAP financial measures used in this release to the most comparable U.S. GAAP measures for the respective periods can be found in tables later in this release immediately following the detail of revenue by geography. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for Torniers financial results prepared in accordance with GAAP.
Contact: |
|
|
Carmen Diersen |
|
Chief Financial Officer |
|
952-426-7646 |
|
cdiersen@tornier.com |
|
|
|
Doug Kohrs |
|
President and Chief Executive Officer |
|
952-426-7606 |
|
dkohrs@tornier.com |
Tornier N.V.
Consolidated Statements of Operations
(in thousands, except per share data)
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||
|
|
(unaudited) |
|
(unaudited) |
| ||||||||
|
|
July 3, 2011 |
|
July 4, 2010 |
|
July 3, 2011 |
|
July 4, 2010 |
| ||||
Revenue |
|
$ |
65,158 |
|
$ |
54,563 |
|
$ |
134,593 |
|
$ |
116,406 |
|
Cost of goods sold |
|
18,017 |
|
14,725 |
|
38,058 |
|
32,001 |
| ||||
Gross profit |
|
47,141 |
|
39,838 |
|
96,535 |
|
84,405 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating expenses |
|
|
|
|
|
|
|
|
| ||||
Sales and marketing |
|
34,872 |
|
29,721 |
|
69,571 |
|
64,191 |
| ||||
General and administrative |
|
6,362 |
|
4,668 |
|
12,387 |
|
11,194 |
| ||||
Research and development |
|
5,189 |
|
4,003 |
|
10,299 |
|
8,816 |
| ||||
Amortization of intangible assets |
|
2,897 |
|
2,881 |
|
5,707 |
|
5,878 |
| ||||
Special charges |
|
132 |
|
28 |
|
132 |
|
252 |
| ||||
Total operating expenses |
|
49,452 |
|
41,301 |
|
98,096 |
|
90,331 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating (loss) |
|
(2,311 |
) |
(1,463 |
) |
(1,561 |
) |
(5,926 |
) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Other income (expense) |
|
|
|
|
|
|
|
|
| ||||
Interest expense |
|
(489 |
) |
(4,935 |
) |
(2,967 |
) |
(10,765 |
) | ||||
Foreign currency transaction gain (loss) |
|
226 |
|
(3,445 |
) |
147 |
|
(5,739 |
) | ||||
Loss on extinguishment of debt |
|
|
|
|
|
(29,475 |
) |
|
| ||||
Other non-operating income (expense) |
|
35 |
|
(153 |
) |
16 |
|
61 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Loss before income taxes |
|
(2,539 |
) |
(9,996 |
) |
(33,840 |
) |
(22,369 |
) | ||||
Income tax (expense) benefit |
|
(330 |
) |
1,393 |
|
7,002 |
|
3,715 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Consolidated net loss |
|
(2,869 |
) |
(8,603 |
) |
(26,838 |
) |
(18,654 |
) | ||||
Net loss attributable to non-controlling interest |
|
|
|
|
|
|
|
(695 |
) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Net loss attributable to Tornier N.V. |
|
(2,869 |
) |
(8,603 |
) |
(26,838 |
) |
(17,959 |
) | ||||
Accretion of non-controlling interest |
|
|
|
|
|
|
|
(679 |
) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Net loss attributable to ordinary shareholders |
|
$ |
(2,869 |
) |
$ |
(8,603 |
) |
$ |
(26,838 |
) |
$ |
(18,638 |
) |
|
|
|
|
|
|
|
|
|
| ||||
Net loss per share |
|
|
|
|
|
|
|
|
| ||||
Basic and diluted |
|
$ |
(0.07 |
) |
$ |
(0.31 |
) |
$ |
(0.72 |
) |
$ |
(0.72 |
) |
|
|
|
|
|
|
|
|
|
| ||||
Weighted average ordinary shares outstanding |
|
|
|
|
|
|
|
|
| ||||
Basic and diluted |
|
39,040 |
|
27,411 |
|
37,248 |
|
26,039 |
|
Tornier N.V.
Condensed Consolidated Balance Sheets
(in thousands)
|
|
July 3, 2011 |
|
January 2, 2011 |
| ||
|
|
(unaudited) |
|
|
| ||
Assets |
|
|
|
|
| ||
Current assets |
|
|
|
|
| ||
Cash and cash equivalents |
|
$ |
59,733 |
|
$ |
24,838 |
|
Accounts receivable, net |
|
47,666 |
|
42,758 |
| ||
Inventories |
|
86,191 |
|
77,525 |
| ||
Deferred income taxes and other current assets |
|
19,870 |
|
28,093 |
| ||
Total current assets |
|
213,460 |
|
173,214 |
| ||
|
|
|
|
|
| ||
Instruments, net |
|
47,480 |
|
42,378 |
| ||
Property, plant and equipment, net |
|
34,825 |
|
33,680 |
| ||
Goodwill and intangibles, net |
|
248,456 |
|
240,854 |
| ||
Deferred income taxes and other assets |
|
1,144 |
|
1,052 |
| ||
Total assets |
|
$ |
545,365 |
|
$ |
491,178 |
|
|
|
|
|
|
| ||
Liabilities and shareholders equity |
|
|
|
|
| ||
Current liabilities |
|
|
|
|
| ||
Short-term borrowing and current portion of long-term debt |
|
$ |
13,572 |
|
$ |
28,392 |
|
Accounts payable |
|
16,765 |
|
12,890 |
| ||
Accrued liabilities and deferred income taxes |
|
34,641 |
|
34,967 |
| ||
Total current liabilities |
|
64,978 |
|
76,249 |
| ||
|
|
|
|
|
| ||
Notes payable |
|
|
|
84,261 |
| ||
Other long-term debt |
|
27,272 |
|
25,467 |
| ||
Deferred income taxes and other long-term liabilities |
|
28,280 |
|
34,962 |
| ||
Total liabilities |
|
120,530 |
|
220,939 |
| ||
|
|
|
|
|
| ||
Shareholders equity |
|
424,835 |
|
270,239 |
| ||
|
|
|
|
|
| ||
Total liabilities and shareholders equity |
|
$ |
545,365 |
|
$ |
491,178 |
|
Tornier N.V.
Consolidated Statements of Cash Flow
(in thousands)
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||
|
|
(unaudited) |
|
(unaudited) |
| ||||||||
|
|
July 3, 2011 |
|
July 4, 2010 |
|
July 3, 2011 |
|
July 4, 2010 |
| ||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
| ||||
Consolidated net loss |
|
$ |
(2,869 |
) |
$ |
(8,603 |
) |
$ |
(26,838 |
) |
$ |
(18,654 |
) |
|
|
|
|
|
|
|
|
|
| ||||
Adjustments to reconcile consolidated net loss to net cash provided by (used in) operating activities |
|
|
|
|
|
|
|
|
| ||||
Depreciation and amortization |
|
6,798 |
|
6,202 |
|
13,891 |
|
13,011 |
| ||||
Non-cash foreign currency (gain) loss |
|
(30 |
) |
2,429 |
|
603 |
|
4,106 |
| ||||
Deferred and prepaid income taxes |
|
1,904 |
|
(1,579 |
) |
(6,165 |
) |
(3,722 |
) | ||||
Share-based compensation |
|
1,615 |
|
1,276 |
|
2,910 |
|
2,835 |
| ||||
Non-cash interest expense and discount amortization |
|
|
|
4,622 |
|
2,040 |
|
9,819 |
| ||||
Inventory obsolescence |
|
870 |
|
1,256 |
|
2,466 |
|
2,738 |
| ||||
Change in fair value of warrant liability |
|
|
|
(271 |
) |
|
|
(418 |
) | ||||
Loss on extinguishment of debt |
|
|
|
|
|
29,475 |
|
|
| ||||
Other non-cash items affecting earnings |
|
231 |
|
960 |
|
336 |
|
1,245 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
| ||||
Accounts receivable |
|
2,235 |
|
60 |
|
(3,657 |
) |
(1,378 |
) | ||||
Inventories |
|
(4,645 |
) |
(5,711 |
) |
(6,680 |
) |
(10,443 |
) | ||||
Accounts payable and accruals |
|
337 |
|
(474 |
) |
2,011 |
|
5,186 |
| ||||
Other current assets and liabilities |
|
(199 |
) |
(698 |
) |
3,295 |
|
(1,894 |
) | ||||
Other non-current assets and liabilities |
|
(734 |
) |
(716 |
) |
(1,222 |
) |
78 |
| ||||
Net cash provided by (used in) operating activities |
|
5,513 |
|
(1,247 |
) |
12,465 |
|
2,509 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
| ||||
Acquisition-related cash payments |
|
(1,154 |
) |
(591 |
) |
(1,635 |
) |
(1,652 |
) | ||||
Additions of instruments |
|
(5,582 |
) |
(4,685 |
) |
(8,456 |
) |
(7,854 |
) | ||||
Purchases of property, plant and equipment |
|
(762 |
) |
(1,072 |
) |
(1,476 |
) |
(5,651 |
) | ||||
Net cash provided by (used in) investing activities |
|
(7,498 |
) |
(6,348 |
) |
(11,567 |
) |
(15,157 |
) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
| ||||
Change in short-term debt |
|
(3,832 |
) |
10,265 |
|
(16,764 |
) |
13,801 |
| ||||
Repayments of long-term debt |
|
(1,945 |
) |
(4,688 |
) |
(4,015 |
) |
(7,297 |
) | ||||
Proceeds from issuance of long-term debt |
|
3,509 |
|
(1,199 |
) |
3,509 |
|
2,165 |
| ||||
Deferred financing costs |
|
(215 |
) |
(525 |
) |
(2,629 |
) |
(525 |
) | ||||
Repayment of notes payable |
|
|
|
|
|
(116,108 |
) |
|
| ||||
Issuance of ordinary shares |
|
51 |
|
397 |
|
168,308 |
|
938 |
| ||||
Net cash provided by (used in) financing activities |
|
(2,432 |
) |
4,250 |
|
32,301 |
|
9,082 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Effect of currency exchange rates on cash and cash equivalents |
|
36 |
|
(1,757 |
) |
1,696 |
|
(1,194 |
) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Increase (decrease) in cash and cash equivalents |
|
(4,381 |
) |
(5,102 |
) |
34,895 |
|
(4,760 |
) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash and cash equivalents at beginning of period |
|
64,114 |
|
38,311 |
|
24,838 |
|
37,969 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash and cash equivalents at end of period |
|
$ |
59,733 |
|
$ |
33,209 |
|
$ |
59,733 |
|
$ |
33,209 |
|
Tornier N.V.
Selected Revenue Information
(in thousands)
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||||||
|
|
(unaudited) |
|
(unaudited) |
| ||||||||||||
|
|
July 3, 2011 |
|
July 4, 2010 |
|
Percent |
|
July 3, 2011 |
|
July 4, 2010 |
|
Percent |
| ||||
Revenue by product category |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Upper extremity joints and trauma |
|
$ |
40,795 |
|
$ |
33,940 |
|
20.2% |
|
$ |
82,950 |
|
$ |
70,587 |
|
17.5% |
|
Lower extremity joints and trauma |
|
6,447 |
|
5,592 |
|
15.3% |
|
13,079 |
|
11,848 |
|
10.4% |
| ||||
Sports medicine and biologics |
|
3,583 |
|
3,076 |
|
16.5% |
|
7,440 |
|
6,517 |
|
14.2% |
| ||||
Total extremities |
|
50,825 |
|
42,608 |
|
19.3% |
|
103,469 |
|
88,952 |
|
16.3% |
| ||||
Large joints and other |
|
14,333 |
|
11,955 |
|
19.9% |
|
31,124 |
|
27,454 |
|
13.4% |
| ||||
Total |
|
$ |
65,158 |
|
$ |
54,563 |
|
19.4% |
|
$ |
134,593 |
|
$ |
116,406 |
|
15.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Revenue by geography |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
United States |
|
$ |
34,395 |
|
$ |
30,669 |
|
12.1% |
|
$ |
71,416 |
|
$ |
64,464 |
|
10.8% |
|
International |
|
30,763 |
|
23,894 |
|
28.7% |
|
63,177 |
|
51,942 |
|
21.6% |
| ||||
Total |
|
$ |
65,158 |
|
$ |
54,563 |
|
19.4% |
|
$ |
134,593 |
|
$ |
116,406 |
|
15.6% |
|
Tornier N.V.
Reconciliation of Revenue to Non-GAAP Revenue on a Constant Currency Basis
(in thousands)
|
|
Three Months Ended |
|
|
| ||||||||||
|
|
(unaudited) |
|
|
| ||||||||||
|
|
July 3, 2011 |
|
July 4, 2010 |
|
|
| ||||||||
|
|
|
|
Foreign |
|
|
|
|
|
Percent |
| ||||
|
|
|
|
exchange |
|
|
|
|
|
change on |
| ||||
|
|
|
|
impact as |
|
Revenue on a |
|
|
|
a constant |
| ||||
|
|
Revenue as |
|
compared to |
|
constant |
|
Revenue as |
|
currency |
| ||||
|
|
reported |
|
prior period |
|
currency basis |
|
reported |
|
basis |
| ||||
Revenue by product category |
|
|
|
|
|
|
|
|
|
|
| ||||
Upper extremity joints and trauma |
|
$ |
40,795 |
|
$ |
(1,715 |
) |
$ |
39,080 |
|
$ |
33,940 |
|
15.1% |
|
Lower extremity joints and trauma |
|
6,447 |
|
(231 |
) |
6,216 |
|
5,592 |
|
11.2% |
| ||||
Sports medicine and biologics |
|
3,583 |
|
(145 |
) |
3,438 |
|
3,076 |
|
11.8% |
| ||||
Total extremities |
|
50,825 |
|
(2,091 |
) |
48,734 |
|
42,608 |
|
14.4% |
| ||||
Large joints and other |
|
14,333 |
|
(1,836 |
) |
12,497 |
|
11,955 |
|
4.5% |
| ||||
Total |
|
$ |
65,158 |
|
$ |
(3,927 |
) |
$ |
61,231 |
|
$ |
54,563 |
|
12.2% |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Revenue by geography |
|
|
|
|
|
|
|
|
|
|
| ||||
United States |
|
$ |
34,395 |
|
$ |
|
|
$ |
34,395 |
|
$ |
30,669 |
|
12.1% |
|
International |
|
30,763 |
|
(3,927 |
) |
26,836 |
|
23,894 |
|
12.3% |
| ||||
Total |
|
$ |
65,158 |
|
$ |
(3,927 |
) |
$ |
61,231 |
|
$ |
54,563 |
|
12.2% |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
Six Months Ended |
|
|
| ||||||||||
|
|
(unaudited) |
|
|
| ||||||||||
|
|
July 3, 2011 |
|
July 4, 2010 |
|
|
| ||||||||
|
|
|
|
Foreign |
|
|
|
|
|
Percent |
| ||||
|
|
|
|
exchange |
|
|
|
|
|
change on |
| ||||
|
|
|
|
impact as |
|
Revenue on a |
|
|
|
a constant |
| ||||
|
|
Revenue as |
|
compared to |
|
constant |
|
Revenue as |
|
currency |
| ||||
|
|
reported |
|
prior period |
|
currency basis |
|
reported |
|
basis |
| ||||
Revenue by product category |
|
|
|
|
|
|
|
|
|
|
| ||||
Upper extremity joints and trauma |
|
$ |
82,950 |
|
$ |
(1,890 |
) |
$ |
81,060 |
|
$ |
70,587 |
|
14.8% |
|
Lower extremity joints and trauma |
|
13,079 |
|
(264 |
) |
12,815 |
|
11,848 |
|
8.2% |
| ||||
Sports medicine and biologics |
|
7,440 |
|
(159 |
) |
7,281 |
|
6,517 |
|
11.7% |
| ||||
Total extremities |
|
103,469 |
|
(2,313 |
) |
101,156 |
|
88,952 |
|
13.7% |
| ||||
Large joints and other |
|
31,124 |
|
(1,742 |
) |
29,382 |
|
27,454 |
|
7.0% |
| ||||
Total |
|
$ |
134,593 |
|
$ |
(4,055 |
) |
$ |
130,538 |
|
$ |
116,406 |
|
12.1% |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Revenue by geography |
|
|
|
|
|
|
|
|
|
|
| ||||
United States |
|
$ |
71,416 |
|
$ |
|
|
$ |
71,416 |
|
$ |
64,464 |
|
10.8% |
|
International |
|
63,177 |
|
(4,055 |
) |
59,122 |
|
51,942 |
|
13.8% |
| ||||
Total |
|
$ |
134,593 |
|
$ |
(4,055 |
) |
$ |
130,538 |
|
$ |
116,406 |
|
12.1% |
|
Tornier N.V.
Reconciliation of Net Loss to
Non-GAAP Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA)
(in thousands)
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||
|
|
(unaudited) |
|
(unaudited) |
| ||||||||
|
|
July 3, 2011 |
|
July 4, 2010 |
|
July 3, 2011 |
|
July 4, 2010 |
| ||||
Net loss, as reported |
|
$ |
(2,869 |
) |
$ |
(8,603 |
) |
$ |
(26,838 |
) |
$ |
(18,654 |
) |
|
|
|
|
|
|
|
|
|
| ||||
Interest expense |
|
489 |
|
4,935 |
|
2,967 |
|
10,765 |
| ||||
Income tax expense (benefit) |
|
330 |
|
(1,393 |
) |
(7,002 |
) |
(3,715 |
) | ||||
Depreciation |
|
3,901 |
|
3,321 |
|
8,184 |
|
7,133 |
| ||||
Amortization |
|
2,897 |
|
2,881 |
|
5,707 |
|
5,878 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Subtotal Non-GAAP EBITDA (Loss) |
|
4,748 |
|
1,141 |
|
(16,982 |
) |
1,407 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Other non-operating (income) expense |
|
(35 |
) |
153 |
|
(16 |
) |
(61 |
) | ||||
Foreign currency transaction (gain) loss |
|
(226 |
) |
3,445 |
|
(147 |
) |
5,739 |
| ||||
Share-based compensation |
|
1,615 |
|
1,276 |
|
2,910 |
|
2,835 |
| ||||
Loss on extinguishment of debt |
|
|
|
|
|
29,475 |
|
|
| ||||
Special charges |
|
132 |
|
28 |
|
132 |
|
252 |
| ||||
Operating expenses from consolidated VIE |
|
|
|
|
|
|
|
594 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Non-GAAP Adjusted EBITDA |
|
$ |
6,234 |
|
$ |
6,043 |
|
$ |
15,372 |
|
$ |
10,766 |
|