EXTON, Pa., May 5, 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 third quarter ended March 31, 2011.
Third Quarter Snapshot and Recent Developments
- Adjusted diluted EPS* of $0.43, in line with the Company's previous guidance of $0.42-$0.44 and 7% below the prior year comparable quarter's diluted EPS of $0.46. As reported loss per share of $0.94, which includes a non-cash acquired in-process research and development (IPR&D) pre-tax charge of $18.2 million (or $1.39 per share) related to the January 2011 acquisition of assets from Nerites.
- Revenue of $18.6 million, in line with the Company's previous guidance of $18.5-$19.0 million and 7% below the prior year comparable quarter's revenue of $19.9 million.
- Net sales of $12.1 million, in line with the Company's previous guidance of $11.7-$12.1 million and 8% below the prior year comparable quarter's net sales of $13.2 million.
- Royalty income of $6.5 million, below the Company's previous guidance of $6.8-$6.9 million and 3% below the prior year comparable quarter's royalty income of $6.7 million.
- Adjusted operating margin* of 33%. As reported operating margin of (65%).
- Cash from operations of $6.1 million in the quarter.
- Adjusted EBITDA* of $7.6 million.
- Acquired the net assets of Nerites Corporation, a developer of medical adhesives and anti-fouling coatings (See the Company's January 31, 2011 press release).
President and CEO Commentary
"Our third quarter results were in line with our expectations as both our spine and sports medicine product sales improved significantly from the depressed levels in the first half of the fiscal year. The improvement in these two areas more than offset the decline in our cardiology collagen sales to St. Jude Medical. Although we expect to see continued sequential improvement in our biomaterial products, excluding cardiology in our fourth quarter, it will be less than we previously anticipated primarily due to the continuing challenges in the sports medicine market. Going forward, in fiscal 2012, we expect more meaningful contributions from our new ECM products and further organic improvement in our core regenerative medicine business. In addition, our research and development programs which have been enhanced with the recent Nerites acquisition and our investment in Orteq will provide us with medium and long range opportunities in the general surgery, orthopaedics and sports medicine markets," commented Joe Kaufmann, President and CEO of the Company.
Supplemental Sales Data. Details of the Company's net sales for the three and nine months ended March 31, 2011 and 2010 are summarized below.
Three Months Ended March 31, | Year over Year % Change | Nine Months Ended March 31, | Year over Year % Change | ||||
($ millions) | 2011 | 2010 | 2011 | 2010 | |||
Biomaterials Products | |||||||
Orthopaedic Products | |||||||
Sports Medicine Products | $3.6 | $4.7 | (23%) | $8.9 | $11.3 | (22%) | |
Spine Products | 3.2 | 2.5 | 26% | 7.7 | 8.1 | (5%) | |
Other Orthopaedic Products | 0.1 | 0.2 | (39%) | 0.4 | 0.4 | (6%) | |
Total Orthopaedic Products | $6.9 | $7.4 | (7%) | $17.0 | $19.9 | (15%) | |
Cardiovascular Products | 3.3 | 4.9 | (34%) | 11.7 | 14.2 | (18%) | |
General Surgery Products | 1.1 | 0.6 | 86% | 3.1 | 2.9 | 9% | |
Other Biomaterial Products | 0.6 | 0.1 | n/a | 1.2 | 0.3 | n/a | |
Biomaterials Products | $11.9 | $13.0 | (9%) | $33.0 | $37.2 | (12%) | |
Biomaterials Products - excluding Cardiovascular | $8.6 | $8.1 | 7% | $21.3 | $23.0 | (7%) | |
Endovascular Products | $0.2 | $0.2 | 5% | $0.9 | |||
