EXTON, Pa., Aug. 18, 2011 /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 fourth quarter and fiscal year ended June 30, 2011.
Fourth Quarter Snapshot and Recent Developments
- Diluted earnings per share of $0.34, which includes net Norian acquisition items, see discussion below, compared to the Company’s previous guidance of $0.31 - $0.33 and prior year diluted earnings per share of $0.60, which included net insurance proceeds of $0.06 per share.
- Revenue of $18.7 million, within the Company’s previous guidance of $18.7 - $19.2 million and 14% below the prior year comparable quarter’s revenue of $21.9 million.
- Net sales of $12.1 million, below the Company’s previous guidance of $12.2 - $12.5 million and 20% below the prior year comparable quarter’s net sales of $15.1 million.
- Royalty income of $6.6 million, in line with the Company’s previous guidance of $6.5 - $6.7 million and 2% below the prior year comparable quarter’s royalty income of $6.8 million.
- Cash from operations of $5.0 million in the quarter.
- EBITDA* of $6.2 million.
- Acquired the assets comprising the product lines of Synthes Inc.'s (SIX: SYST.VX) Norian subsidiary (see the Company’s May 24, 2011 press release).
- Entered into a new $35 million unsecured revolving credit facility with Wells Fargo Bank, National Association.
President and CEO Commentary
“Overall our fourth quarter results were generally in line with expectations. The second half of our fiscal year showed dramatic improvement in revenue from the first half in the spine and sports medicine areas of our business. This second half revenue improvement, as well as our current strong order flow from our customers, provides us with increased confidence for growth in fiscal year 2012. Although fiscal 2011 was a difficult year marked by significant challenges in the global economy, persistent unemployment and a challenging healthcare environment, it also was a year of strengthening our leadership position in the regenerative medicine markets. We continue to expand our core biomaterials business, compensating for the reduction in our Angio-Seal collagen activity. We were presented with opportunities to focus our efforts to grow our regenerative medicine business both organically and through technology investments and acquisitions. We invested approximately 24% of our fiscal 2011 revenue in internal R&D programs and invested over $50 million in acquisitions and other technology investments to prime our product pipeline. The accretive Norian acquisition has provided immediate revenue diversification and established an avenue for future revenue growth, and will provide an opportunity for greater facility utilization in the future. In fiscal 2011, our partner Synthes successfully launched our new extracellular matrix (ECM) product, the XCM Biologic. Additionally, late in the fourth quarter of fiscal 2011, Stryker Corporation (NYSE: SYK) acquired our spine products partner, Orthovita, Inc. (NASDAQ: VITA), which we believe will lead to increased revenues driven by Stryker’s significantly larger worldwide sales force. In light of these positive factors, we are looking forward to fiscal 2012 and beyond as we execute upon our business plan,” commented Joe Kaufmann, President and CEO of the Company.
