WARSAW, Ind., April 28, 2016 /PRNewswire/ --
- Net Sales of $1.90 billion represent an increase of 67.8% on a reported basis over the prior year period, and an increase of 1.2% on an adjusted pro forma, constant currency basis
- Diluted EPS for the first quarter were $0.52 reported, a decrease of 47.5% from the prior year period, and $2.00 adjusted, an increase of 29.9% over the prior year period
- The Company increases constant currency revenue and adjusted earnings guidance for 2016
Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) today reported financial results for the quarter ended March 31, 2016. The Company reported first quarter net sales of $1.90 billion, an increase of 67.8% on a reported basis and an increase of 1.2% on an adjusted pro forma, constant currency basis, compared to the first quarter of 2015. Diluted earnings per share for the quarter were $0.52 reported and $2.00 adjusted, an increase of 29.9% adjusted over the prior year period.
“Zimmer Biomet’s first quarter revenue was at the high end of our expectations coming into the year, laying the groundwork for sequential sales improvement as 2016 progresses. We also continued to make good progress against our net synergy commitments, which supported our ability to again deliver operating margin leverage and strong adjusted earnings per share results,” said David Dvorak, President and CEO of Zimmer Biomet. “We remain on pace to exit the year at or above market growth rates, driven by our focused commercial channel and the cross-selling opportunities across our market-leading musculoskeletal portfolio.”
Net earnings for the first quarter were $105.9 million on a reported basis and $404.3 million on an adjusted basis, an increase of 51.5% adjusted over the prior year period. Operating cash flow for the first quarter was $265.2 million.
In the quarter, the Company paid $44.6 million in dividends and declared a first quarter dividend of $0.24 per share, reflecting an increase of 9.1 percent over the dividend declared for the first quarter of 2015. Additionally, the Company utilized $415.5 million of cash to repurchase 4.2 million shares. The Company also repaid $400.0 million on its outstanding term loan during the quarter.
Guidance
The Company increased its full-year 2016 constant currency revenue and adjusted earnings per share guidance. The Company now expects constant currency revenue for the full year 2016, as compared to adjusted pro forma 2015 revenue, to increase between 2.0% and 3.0%. Previously, the Company had expected full-year constant currency revenue to increase between 1.5% and 2.5%.
Additionally, the Company now expects foreign currency translation to decrease full-year 2016 revenues by approximately 1.0%, resulting in reported revenue growth between 1.0% and 2.0% when compared to adjusted pro forma 2015 revenue. Previously, the Company estimated foreign currency translation would decrease revenues by 2.0%.
The Company now expects full-year 2016 adjusted diluted earnings per share to be in a range of $7.85 to $8.00. Previously, the Company had estimated a range of $7.80 to $7.95.
Conference Call
The Company will conduct its first quarter 2016 investor conference call today, April 28, 2016, at 8:00 a.m. Eastern Time.
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