Zimmer Holdings, Inc. Reports First Quarter 2012 Financial Results
1/31/2013 6:33:38 AM
WARSAW, Ind., April 26, 2012 /PRNewswire/ --
•Net Sales of $1,141 million represent an increase of 2.2% reported over the prior year period (2.7% constant currency)
•Diluted EPS for the first quarter were $1.17 reported, an increase of 8.3% over the prior year period, and $1.30 adjusted, an increase of 9.2% over the prior year period
Zimmer Holdings, Inc. (NYSE and SIX: ZMH) today reported financial results for the quarter ended March 31, 2012. The Company reported first quarter net sales of $1,141 million, an increase of 2.2% reported and 2.7% constant currency over the first quarter of 2011. Diluted earnings per share for the quarter were $1.17 reported and $1.30 adjusted, an increase of 9.2% adjusted over the prior year period.
"Zimmer delivered year-over-year sales growth in all geographic segments and in most product categories in the quarter," said David Dvorak, Zimmer President and CEO. "Looking forward, our new product introductions and progress in our transformation programs will enable the Company to generate increased value to stockholders."
Net earnings for the first quarter were $209.6 million on a reported basis and $231.3 million on an adjusted basis, an increase of 0.2% adjusted over the prior year period. Operating cash flow for the first quarter was $207.4 million.
During the quarter, the Company utilized $141.6 million of cash to acquire 2.3 million shares. At the end of the first quarter, $1.36 billion of share repurchase authorization remained available under the current program, which expires on December 31, 2014.
The Company reaffirmed its constant currency revenue and adjusted EPS guidance for full year 2012. In addition, the Company updated its full-year reported revenue and EPS guidance for 2012. Full-year revenues for 2012 are expected to increase between 2% and 4% on a constant currency basis from 2011. The Company now estimates that foreign currency translation will decrease revenues by approximately 1.5% to 2.0% for the full year 2012, resulting in reported revenue growth between 0% and 2.5%. Previously, the Company had estimated foreign currency translation would decrease revenues by approximately 1%. Full-year 2012 diluted earnings per share are projected to be in a range of $4.70 to $4.90 on a reported basis and $5.20 to $5.40 on an adjusted basis. Prior guidance for full-year 2012 reported diluted earnings per share was $4.75 to $4.95.
The Company will conduct its first quarter 2012 investor conference call today, April 26, 2012, at 8:00 a.m. Eastern Time. The live audio webcast can be accessed via Zimmer's Investor Relations website at http://investor.zimmer.com. It will be archived for replay following the conference.
Individuals who wish to dial into the conference call may do so at (888) 878-3901. International callers should dial (706) 634-9520. A digital recording will be available two hours after the completion of the conference call from April 26, 2012, to May 10, 2012. To access the recording, US/Canada callers should dial (855) 859-2056 or (800) 585-8367, or for International callers, dial (404) 537-3406, and enter the conference ID 60536068.
About the Company
Founded in 1927 and headquartered in Warsaw, Indiana, Zimmer designs, develops, manufactures and markets orthopaedic reconstructive, spinal and trauma devices, dental implants, and related surgical products. Zimmer has operations in more than 25 countries around the world and sells products in more than 100 countries. Zimmer's 2011 sales were approximately $4.5 billion. The Company is supported by the efforts of more than 8,500 employees worldwide.
We routinely post important information for investors on our website, www.zimmer.com, in the "Investor Relations" section. We intend to use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.