ALACHUA, Fla., Dec. 21 /PRNewswire-FirstCall/ -- Tutogen Medical, Inc. , a leading manufacturer of sterile biological implant products made from human (allograft) and animal (xenograft) tissue, today announced financial results for the fiscal year and fourth quarter ended September 30, 2006.
Highlights for the fiscal year and the quarter include: * Total fiscal year 2006 revenues increased 19% to $37.9 million compared to $31.9 million in 2005; * Sales of dental products increased 28% in fiscal year 2006; * U.S. revenues increased 17% for the fiscal year; * International revenues increased 24% in fiscal 2006; * Reduced loss for fiscal year 2006 to $.6 million compared to a loss of $7.0 million in fiscal year 2005; * Fourth quarter revenues increased 36% compared to the fourth quarter of fiscal 2005; and * Net income for the fourth quarter of fiscal year 2006 was $599,000, or $0.04 per share, compared to a net loss of $2,696,000, or $0.17 per share, in the fourth quarter of fiscal year 2005.
For the fiscal year the Company reported revenues of $37.9 million compared to $31.9 million in fiscal 2005; an increase of 19%. The Company reported a net loss of $589,000, or $0.04 per fully diluted share, compared to a net loss of $7.0 million, or $0.44 per fully diluted share, in the previous year. Gross margins for the year increased to 57% from 37% in fiscal 2005. The higher margins were due to improved efficiencies in U.S. manufacturing operations.
For the fourth fiscal quarter, Tutogen reported a 36% increase in revenues to $10.8 million compared to $8.0 million in fiscal year 2005. The Company reported net income of $599,000, or $0.04 per fully diluted share, compared to a net loss of $2,696,000, or $0.17 per fully diluted share in the comparable quarter last year. Improved profitability was a result of higher revenues and improved gross margins.
Guy L. Mayer, Chief Executive Officer of Tutogen Medical, said, "We are pleased with our quarterly progress in fiscal year 2006. Our dental business continued to grow at strong double digit rates. We introduced 2 new products for the dental market in fiscal 2006 and our distributor -- Zimmer Dental -- continued to do a stellar job in developing this business. Our international business grew 24% compared to last year primarily on improved performance in Europe. We devoted a great deal of time and resources in the previous year to address a number of regulatory and operational issues in the European market and we are beginning to see the beneficial impact that we envisioned."
During the fiscal year, the Company completed the expansion and the building of new manufacturing facilities in both the U.S. and in Europe. These facilities permit Tutogen to process virtually all of the tissues sold in the domestic market at its Alachua, Florida facility and for its Neunkirchen, Germany facility to support the International business. Management believes that these facilities greatly improve the Company's operating efficiencies on both continents. These investments have streamlined the Company's manufacturing processes and greatly improved its operating margins. Additionally, management believes that the completion of these facilities will greatly diminish its exposure to foreign currency translation costs.
Also during the year, Tutogen entered into a strategic tissue sourcing agreement with Regeneration Technologies, Inc. Under the terms of the agreement, Tutogen will have first right of refusal to all dermis, fascia and pericardium recovered by RTI Donor Services agencies. RTI, in turn, will have first right of refusal to all soft tissue used in sports medicine surgeries recovered by Tutogen's recovery partners.
"Looking forward into fiscal 2007," Mr. Mayer continued, "we believe that our recent entry into the hernia repair and breast reconstruction markets, with Davol -- a subsidiary of C.R. Bard and Mentor corporation -- as our distributors, will begin to gain measurable traction in the quarters to come. The expanded tissue sourcing capabilities of the agreement with Regeneration Technologies will drive Tutogen's competitive position in the hernia repair and breast reconstruction markets in 2007 and in subsequent years. We also look forward to extending our highly successful dental business into the international markets with Zimmer Dental. We believe these new business opportunities will have great potential in the years to come."
"We are excited about the opportunities ahead for Tutogen Medical. We concluded fiscal year 2006 with expanded revenues, a significantly reduced net loss and a profitable fourth quarter. We believe that this sets the stage for improved performance in the coming year and beyond. We look forward to fiscal 2007 with a great deal of excitement," Mr. Mayer concluded.
Conference Call
Tutogen Medical will conduct a conference call on Thursday, December 21, 2006, beginning at 10 a.m. ET to review the results of the quarter. Interested parties can access the call by dialing (888) 408-9532 or (706) 679-5064 or by accessing the web cast at http://www.tutogen.com/investor.asp. A replay of the call will be available at (800) 642-1687 or (706) 645-9291, conference ID number: 4348290 for 3 days following the call, and the web cast can be accessed at http://www.tutogen.com/investor.asp for 30 days.
About Tutogen Medical, Inc.
Tutogen Medical, Inc. manufactures sterile biological implant products made from human (allograft) and animal (xenograft) tissue. Tutogen utilizes its Tutoplast Process(R) of tissue preservation and viral inactivation to manufacture and deliver sterile bio-implants used in spinal/trauma, urology, dental, ophthalmology, and general surgery procedures. The Company's Tutoplast(R) products are sold and distributed worldwide by Zimmer Spine and Zimmer Dental, subsidiaries of Zimmer Holdings, Inc., Davol Inc. subsidiary of C.R. Bard Inc., the Mentor Corporation (Mentor), Coloplast Corp., IOP, Inc. and through independent distributors internationally. For more information, visit the Company's Web site at http://www.tutogen.com.
Forward-Looking Statement Disclaimer: This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically are identified by use of terms such as "may," "will," "should," "plan," "expect," "anticipate," "estimate," and similar words, although some forward-looking statements are expressed differently. These statements include, but are not limited to, statements made by the Company's Chief Executive Officer concerning the Company's recent financial performance and trends of quarterly revenue increases, progress toward profitability, the potential for growth in sales and continued market acceptance of the Company's hernia repair and cervical spacer products, potential growth in the Company's dental and international markets, and management's excitement about the Company's future opportunities. Forward-looking statements are based on management's current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth or implied by forward-looking statements. These and other risks are identified in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2005, as amended. All information in this press release is as of the date hereof, and the Company undertakes no duty to update this information unless required by law.
Contacts: L. Robert Johnston, Jr. Lytham Partners, LLC Chief Financial Officer Joe Diaz Tutogen Medical, Inc. Joe Dorame 386-462-0402 Robert Blum bjohnston@tutogen.com 602-889-9700 TUTOGEN MEDICAL, INC. and SUBSIDIARIES CONDENSED CONSOLIDATED FINANCIAL SUMMARY (in thousands except per share data) (unaudited) Three Months Ended Year Ended September 30, September 30, 2006 2005 2006 2005 REVENUE $10,798 $7,952 $37,947 $31,860 GROSS PROFIT 7,028 2,624 21,611 11,731 OPERATING EXPENSES 5,688 5,221 21,898 18,958 OPERATING INCOME (LOSS) 1,340 (2,597) (287) (7,227) FOREIGN EXCHANGE (LOSS) GAIN (51) (93) (311) (173) OTHER INCOME (EXPENSE) 88 41 108 77 INTEREST (EXPENSE) INCOME (240) (79) (293) (130) INCOME TAX EXPENSE (BENEFIT) 538 (32) (194) (436) NET INCOME (LOSS) $599 $(2,696) $(589) $(7,017) BASIC EARNING (LOSS) PER SHARE $0.04 $(0.17) $(0.04) $(0.44) DILUTED EARNINGS (LOSS) PER SHARE $0.04 $(0.17) $(0.04) $(0.44) CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) March 31, Sept. 30, 2006 2005 CURRENT ASSETS $21,031 $18,362 FIXED ASSETS, NET 9,505 6,612 DEPOSITS 386 -- DEFERRED INCOME TAXES 1,509 1,232 TOTAL ASSETS $32,431 $26,206 CURRENT LIABILITIES $11,774 $9,928 LONG TERM DEBT 3,358 630 DEFERRED DISTRIBUTION FEES 2,919 1,925 SHAREHOLDERS' EQUITY 14,380 13,723 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $32,431 $26,206
Tutogen Medical, Inc.CONTACT: L. Robert Johnston, Jr., Chief Financial Officer of TutogenMedical, Inc., +1-386-462-0402, bjohnston@tutogen.com; or Joe Diaz, JoeDorame or Robert Blum, all of Lytham Partners, LLC, +1-602-889-9700, forTutogen Medical, Inc.
Web site: http://www.tutogen.com/
