Kensey Nash Corporation Reports Second Quarter Fiscal Year 2012 Financial Results

EXTON, Pa., Feb. 2, 2012 /PRNewswire/ -- Kensey Nash Corporation (NASDAQ: KNSY), a medical device company primarily focused on regenerative medicine for a wide range of medical procedures, today reported the results for its second fiscal quarter ended December 31, 2011.

Second Quarter Snapshot and Recent Developments

• Adjusted diluted earnings per share* of $0.51 (which excludes Norian inventory step-up amortization; see discussion below), a 34% increase from prior year diluted earnings per share of $0.38. As reported diluted earnings per share for the second quarter of fiscal 2012 were $0.49.
• Revenue of $23.0 million, a 32% increase from the prior year comparable quarter's revenue of $17.4 million.
• Net sales of $18.0 million, a 65% increase from the prior year comparable quarter's net sales of $10.9 million.
• Royalty income of $5.0 million, 23% below the prior year comparable quarter's royalty income of $6.5 million.
• Cash from operations of $6.2 million in the quarter.
• Adjusted EBITDA* of $9.0 million in the quarter.
• During the quarter, achieved a $6.0 million milestone upon Spectranetics Corporations reaching of $20 million cumulative end-user sales from the endovascular product line.
• On January 3, 2012, declared a quarterly cash dividend of $0.25 per share of the Company's common stock.

President and CEO Commentary

"Our performance in the second quarter either met or exceeded our expectations in our core regenerative business. Our core regenerative business primarily consists of orthopaedic and general surgery products. Core regenerative business sales for the quarter were $12.8 million, an increase of 96% over prior year. Sports Medicine, Spine, Trauma and Craniomaxillofacial products sales all showed significant growth over the prior year. Sales to Stryker increased 157% to $3.1 million in the quarter and sales from our Norian products contributed $4.6 million in the quarter. Excluding sales of Norian products, our core regenerative business increased 26% from the prior year. Royalty income from our core regenerative products increased 9% to $1.5 million from the prior year quarter. Royalties from Stryker for Vitoss foam and Bioactive products increased 7% and royalties from Synthes for Extracellular Matrices products increased 27% from the prior year quarter. The growth that we are experiencing in both product sales to our partners and royalties from end user sales in our regenerative medicine business is demonstrating the success of our initiatives in this exciting and growing field of medicine," commented Joe Kaufmann, President and CEO of the Company. "Consistent with our public disclosure on December 16, 2011, our Angio-Seal royalties in the quarter were impacted by St. Jude Medical's reduction in the rate at which it is paying royalties to us on sales of the Angio-Seal device. Also as we previously disclosed, we have agreed to non-binding mediation to attempt to resolve the issues with St. Jude Medical. This mediation is scheduled to take place in mid February 2012, and we will provide an update at an appropriate time on the outcome of the mediation."