WARSAW, Ind., Feb. 25 /PRNewswire-FirstCall/ -- Symmetry Medical Inc. , a leading independent provider of products to the global orthopaedic device industry and other medical markets, announced fourth quarter and full year 2009 financial results for the period ended January 2, 2010.
Gross profit for the fourth quarter 2009 was $14.0 million, compared to $23.3 million in the fourth quarter 2008. Gross margin percentage for the fourth quarter 2009 was 18.3% compared to gross margin percentage of 23.4% in the same period last year. The year-over-year decrease in gross profit and gross margin was driven by lower customer demand, which had an unfavorable impact on the Company's fixed cost recovery.
Operating income for the fourth quarter 2009 was $1.2 million, compared to $9.5 million for the fourth quarter 2008. Operating margin for the fourth quarter 2009 was 1.5%, compared to operating margin of 9.5% for the fourth quarter 2008. The fourth quarter 2009 included $2.0 million in one-time expenses related to the Company's facility consolidation and severance payments, all of which were announced in or prior to December 2009. Excluding these expenses, operating income for the fourth quarter 2009 was $3.2 million and operating margin was 4.1%.
Income tax benefit for the fourth quarter 2009 was $0.6 million, compared to a tax benefit of $2.5 million for the fourth quarter of 2008.
The weighted average number of diluted shares outstanding during the fourth quarter of 2009 was 35,625,195.
Brian Moore, President and Chief Executive Officer of Symmetry Medical, stated, "Our fourth quarter and full year 2009 results are broadly in line with our expectations. The decrease in our bottom-line performance resulted from our decision to maintain certain fixed operating costs while experiencing lower volume. We are confident that our strategy of maintaining capacity during market softness in 2009 and into the current environment will be a competitive advantage in enabling us to meet customer demand as volume improves. We are also pleased to report that our SSI direct sales operations exceeded their goals, resulting in record revenue during the fourth quarter of 2009."
Financial Guidance
The following forward-looking estimates regarding 2010 guidance reflect current market conditions and foreign currency rates. Actual results may differ materially, and the Company refers you to forward-looking statements located at the end of the press release.
AAOS
Symmetry Medical will be participating in the American Academy of Orthopedic Surgeons (AAOS) 2010 Annual Meeting in New Orleans, LA, March 9-13, 2010. Symmetry Medical products and technologies will be located at Booth 2561.
About Symmetry Medical Inc.
Symmetry Medical Inc. is a leading independent provider of implants and related instruments and cases to the orthopaedic device industry. The Company also designs, develops and produces these products for companies in other segments of the medical device market, including arthroscopy, dental, laparoscopy, osteobiologic and endoscopy sectors and provides limited specialized products and services to non-healthcare markets, such as the aerospace market.
CONTACT: Fred L. Hite, Senior Vice President and Chief Financial Officer
of Symmetry Medical Inc., +1-574-371-2218; Investors, Nick Laudico,
+1-646-536-7030, nlaudico@theruthgroup.com, or R.J. Pellegrino,
+1-646-536-7009, rpellegrino@theruthgroup.com, both of The Ruth Group for
Symmetry Medical Inc.; or Media, Jason Rando of The Ruth Group,
+1-646-536-7025, jrando@theruthgroup.com, for Symmetry Medical Inc.
Web site: http://www.symmetrymedical.com/
