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Kensey Nash Corporation (KNSY) Reports Third Quarter Fiscal Year 2012 Financial Results

5/3/2012 11:16:19 AM

EXTON, Pa., May 3, 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 third fiscal quarter ended March 31, 2012.

As reported in a separate press release issued today, the Company has entered into a definitive agreement with Royal DSM ("DSM") (NYSE Euronext: DSM KON), pursuant to which the Company would be acquired through a cash tender offer, followed by a merger with a subsidiary of DSM, for a price of $38.50 per share in cash, subject to the terms and conditions of the agreement.

Third Quarter Snapshot and Recent Developments

  • Revenue of $22.2 million, exceeding previous guidance of $21.7 -$22.1 million, a 19% increase from the prior year comparable quarter's revenue of $18.6 million.
  • Net sales of $16.1 million, in line with previous guidance of $16.1 -$16.3 million, a 33% increase from the prior year comparable quarter's net sales of $12.1 million.
  • Royalty income of $6.1 million, exceeding previous guidance of $5.7 -$5.9 million, 6% below the prior year comparable quarter's royalty income of $6.5 million.
  • Diluted earnings per share of $0.34 in line with previous guidance of $0.33 - $0.35, an increase from prior year diluted loss per share of $0.94 and a 21% decrease from prior year adjusted diluted earnings per share* of $0.43.
  • Cash from operations of $12.0 million in the quarter.
  • EBITDA* of $6.6 million in the quarter.
  • On March 13, 2012, the Company declared its second quarterly cash dividend of $0.25 per share of the Company's common stock.
  • As previously disclosed in the Company's March 16, 2012 press release, the Company entered into a settlement agreement with St. Jude Medical which resolves all disputes relating to the Angio-Seal vascular closure devices licenses and agreed to extend collagen supply agreement through 2017.

President and CEO Commentary

"I am pleased to report strong third quarter results for our company. We achieved record biomaterial sales of $15.5 million, driven primarily by sports medicine, spine, trauma and CMF products. Our sales of sports medicine products increased 33% and our sales of spine products increased 29% year over year. The increase in sports medicine sales was due to organic growth and the spine increase resulted from a combination of organic growth from Stryker and our acquisition of the Norian business in May 2011. Our sales of trauma and CMF products of $2.7 million in our third quarter of fiscal 2012 increased from $100,000, also due to our acquisition of the Norian business. Excluding the Norian products and cardiology products, our organic sales growth in the quarter was 10% year over year. In addition, royalty income from our regenerative medicine products, excluding Angio-Seal, was $2.0 million, an increase of 25% from the prior year quarter, reflecting the end-user sales growth of Stryker's orthobiosurgery products and Synthes' ECM general surgery products," commented Joe Kaufmann, President and CEO.

Supplemental Sales Data. Details of the Company's net sales for the three and nine months ended March 31, 2012 and 2011 are summarized below.

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