WARSAW, Ind., May 4 /PRNewswire-FirstCall/ -- Symmetry Medical Inc. , an independent provider of products to the global orthopedic device industry, announced today first quarter 2005 financial results for the period ended April 2, 2005.
The Company reported first quarter 2005 revenue of $63.8 million, a 39.1% increase over revenues of $45.8 million for the first quarter of 2004.
Gross profit for the first quarter of 2005 was $19.4 million, a 54.1% increase over gross profit of $12.6 million for the first quarter of 2004. Gross margin for the first quarter was 30.4%, compared to a gross margin of 27.5% for the first quarter 2004.
Operating income for the first quarter of 2005 was $12.4 million, a 75.5% increase over operating income of $7.1 million for the first quarter of 2004. Operating margin for the first quarter was 19.5%, compared with an operating margin of 15.5% for the first quarter 2004.
For the first quarter ended April 2, 2005, the Company reported net income applicable to common shareholders of $7.7 million, or $0.22 per diluted share, compared to net income applicable to common shareholders of ($0.1) million, or ($0.01) per diluted share, for the quarter ended April 3, 2004. The weighted average number of fully diluted shares outstanding during the first quarter of 2005 was 34,115,708.
In January 2005, the Company completed the expansion of two existing facilities and the development of two new facilities. The addition of nearly 60,000 square feet reflects the demand for Symmetry Medical’s Total Solutions(TM) business model. The total cost of the expansions and development was $8.5 million.
Due to strong demand, Symmetry Medical is planning for additional facility expansions, including:
* Construction of a new Design & Development Center in Warsaw, Indiana to support customers with co-development projects and Total Solutions(TM); * Leasing of two new facilities, one in Lille, France for cases and the other in Cheltenham, England for instruments; and * Purchase of additional adjacent land for the Company’s Sheffield, UK facility to allow for the expansion of knee, hip and shoulder implant production.
Brian Moore, President and Chief Executive Officer, stated, “We are pleased to report robust growth in first quarter revenue and operating income. Our results reflect continued demand for our Total Solutions business model by the global orthopedic industry. Our global sales teams continue to execute our cross-selling and up-selling strategies. We continue to benefit from the strong fundamentals of the global orthopedic industry.”
Financial Guidance
The following statements are based on current market conditions and foreign currency comparisons. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of new business or license agreements the company may enter in future periods. The factors discussed above are not intended to be an exhaustive list of the factors that may affect our future performance.
For the total year 2005, the Company expects full year revenues to be in the range of $247 million to $253 million and earnings per diluted share to be in the range of $0.90 to $0.93. For the second quarter of 2005, the Company expects revenues to be in the range of $63 million to $66 million and earnings per diluted share to be in the range of $0.23 to $0.24.
Conference Call
Symmetry Medical will host a conference call at 9:30 a.m. EDT on May 5, 2005 to discuss its first quarter results. A live Web cast of the conference call will be available online from the investor relations page of the Company’s corporate Web site at http://www.symmetrymedical.com/. The dial-in numbers are (800) 299-0433 for domestic callers and (617) 801-9712 for international callers. The reservation number for both is 27704911. After the live Web cast, the call will remain available on Symmetry’s Web site through June 5, 2005. In addition, a telephonic replay of the call will be available until May 19, 2005. The replay dial-in numbers are (888) 286-8010 for domestic callers and (617) 801-6888 for international callers. Please use reservation code 65716521.
About Symmetry Medical Inc.
Symmetry Medical Inc. is an independent provider of implants and related instruments and cases to the orthopedic device industry. The company also designs, develops and produces these products for companies in other segments of the medical device market, including dental, osteobiologic and endoscopy sectors and provides limited specialized products and services to non-healthcare markets, such as the aerospace market.
Statements in this press release regarding Symmetry Medical Inc.'s business which are not historical facts may be “forward-looking statements” that involve risks and uncertainties. Forward-looking statements frequently are identified by the use of terms such as “may,” “will,” “should,” “expect,” “believe,” “estimate,” “intend” and similar words indicating possible future events or actions. Actual results could differ materially from those projected, implied or anticipated by our forward-looking statements. Certain factors that could cause actual results to differ include: the loss of one or more customers; the development of new products or product innovations by our competitors; potential product liability; changes in management; changes in conditions affecting the economy, orthopedic device manufacturers or the medical device industry generally; and changes in government regulation of medical devices and third-party reimbursement practices. For a discussion of these and other risks and uncertainties, that could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s annual report on Form 10-K for the year ended January 1, 2005, its prospectus filed with the SEC on December 10, 2004 and the Company’s other filings with the Securities and Exchange Commission which are available on the SEC’s website at http://www.sec.gov/. All forward-looking statements are qualified in their entirety by this cautionary statement, and Symmetry Medical Inc. undertakes no obligation to revise or update this news release to reflect events or circumstances after the date hereof.
Investors/Media: Contact: The Ruth Group Symmetry Medical Inc. Stephanie Carrington/Jason Rando Andrew Miclot 646-536-7017/7025 Senior Vice President scarrington@theruthgroup.com Marketing, Sales & Business Development jrando@theruthgroup.com Investor Relations Officer 574-269-7390 ext. 1002 Selected Financial Information Symmetry Medical Inc. Condensed Consolidated Statements of Operations (In Thousands, Except Share and Per Share Data) Three Months Ended April 2, April 3, 2005 2004 (unaudited) (unaudited) Revenue $63,760 $45,838 Cost of revenue 44,373 33,255 Gross profit 19,387 12,583 Selling, general, and administrative expenses 6,948 5,495 Operating income 12,439 7,088 Other (income) expense: Interest expense 939 3,539 Interest rate swap valuation (296) 371 Other 202 (185) Income before income taxes 11,594 3,363 Income tax expense 3,930 1,153 Net Income 7,664 2,210 Preferred stock dividends - (2,316) Net Income (loss) applicable to common shareholders $7,664 $(106) Net Income (loss) applicable to common shareholders per share: Basic $0.23 $(0.01) Diluted $0.22 $(0.01) Weighted average common shares and equivalent shares outstanding: Basic 33,174,979 15,761,970 Diluted 34,115,708 15,761,970 Symmetry Medical Inc. Condensed Consolidated Balance Sheets (In Thousands, Except Share Data) April 2, 2005 January 1, 2005 (unaudited) Assets: Current Assets: Cash and cash equivalents $2,704 $4,849 Accounts receivables, net 46,406 39,640 Inventories 35,333 34,083 Refundable income taxes 101 2,578 Deferred income taxes 2,106 2,036 Other current assets 5,190 5,635 Total current assets 91,840 88,821 Property and equipment, net 77,230 71,854 Interest rate swap valuation asset 782 486 Goodwill 126,689 127,369 Intangible assets, net of accumulation amortization 17,099 17,327 Other assets 963 1,011 Total Assets $314,603 $306,868 Liabilities and shareholders’ equity: Current Liabilities: Accounts payable $17,952 $17,908 Accrued wages and benefits 8,501 9,384 Other accrued expenses 3,690 3,012 Income tax payable 2,369 2,008 Revolving line of credit 4,904 1,204 Current portion of capital lease obligations 3,499 3,572 Current portion of long-term debt 1,315 879 Total current liabilities 42,230 37,967 Deferred income taxes 9,603 9,547 Capital lease obligations, less current portion 10,285 11,709 Long-term debt, less current portion 30,188 31,500 Total Liabilities 92,306 90,723 Commitments and contingencies - - Shareholders’ Equity: Common stock, $.0001 par value-- Class A--72,410,000 shares authorized; shares issued (April 2, 2005--33,181,058; January 1, 2005--33,174,056) 3 3 Additional paid-in capital 255,572 255,509 Retained earnings (deficit) (41,513) (49,178) Accumulated other comprehensive income 8,235 9,811 Total shareholders equity 222,297 216,145 Total liabilities and shareholders equity $314,603 $306,868 Symmetry Medical Inc. Condensed Consolidated Statements of Cash Flows (In Thousands) Three Months Ended April 2, April 3, 2005 2004 (unaudited) (unaudited) Operating activities Net income $7,664 $2,210 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation 3,003 2,530 Amortization 153 152 (Gain) Loss from sale of assets 1 18 Deferred income tax provision - (32) Interest rate swap valuation change (296) 371 Change in operating assets and liabilities: Accounts receivable (7,306) (4,929) Other assets 414 (691) Inventories (1,543) (2,855) Accounts payable 336 2,665 Accrued expenses and other 2,957 703 Net cash provided by operating activities 5,383 142 Investing activities Purchases of property and equipment (8,933) (4,347) Net cash used in investing activities (8,933) (4,347) Financing activities Proceeds from Bank Revolver 5,643 9,479 Payments on Bank Revolver (1,864) (4,995) Payments on long-term debt and capital lease obligations (2,305) (1,645) Net cash provided by financing activities 1,474 2,839 Effect of exchange rate changes on cash (69) 25 Net increase (decrease) in cash and cash equivalents (2,145) (1,341) Cash and cash equivalents at beginning of year 4,849 2,348 Cash and cash equivalents at end of year $2,704 $1,007 Supplemental disclosures Cash paid for interest $610 $3,197 Cash paid for income taxes $563 $41 Assets acquired under capital leases $- $1,085
Symmetry Medical Inc.
CONTACT: Andrew Miclot, Senior Vice President, Marketing, Sales &Business Development, Investor Relations Officer, of Symmetry Medical Inc.,+1-574-269-7390 ext. 1002; or Investors/Media: Stephanie Carrington,+1-646-536-7017, scarrington@theruthgroup.com, or Jason Rando,+1-646-536-7025, jrando@theruthgroup.com, both of The Ruth Group for SymmetryMedical Inc.
Web site: http://www.symmetrymedical.com/
