Zimmer Biomet tackles Q3 after merger; sales up 59%: 10 key notes

Spinal Tech

Zimmer Biomet reported net sales increased for the third quarter of 2015, shortly after the merger completed. 

Here are 10 key notes on the financial report:

 

1. Net sales were up 59.3 percent to $1.76 billion for the quarter.

 

2. Net earnings for the third quarter were $22.2 million, a 45.5 percent increase adjusted over the prior year.

 

3. Operating cash flow in the third quarter was $151.3 million.

 

4. Zimmer Biomet is reinstating its share repurchase program, which was temporarily suspended last year in anticipation of the Biomet transaction. There is a $599.5 million share repurchase authorization available under the program.

 

5. For the full year, Zimmer Biomet expects revenue to increase 1 percent to 1.5 percent, lower than previously expected as foreign currency translation continues to plague the company.

 

6. The full-year earnings per share is expected to increase due to outperformance in the third quarter in capturing synergies across the merger; net synergies are forecasted at $155 million within the first 12 months after closing the deal.

 

7. The knee line net sales dropped 6.7 percent in the third quarter, reaching $632 million. The knee line net sales in the Americas were down 4.5 percent to $50.2 million.

 

8. The hip line net sales dropped 7.9 percent overall, reaching $434 million. The Americas net sales for the hip line was $240 million, a 2.1 percent drop.

 

9. The spine line net sales dropped 2.7 percent to $148 million for the quarter.

 

10. The total Americas net sales were down 3.7 percent to $1.13 billion while the Asia Pacific sales dropped 9 percent to $253 million for the quarter.

 

"In an operating period marked by significant progress in the execution of our sales channel integration, we generated sequential top-line improvement and strong earnings growth," said President and CEO David Dvorak. "As we exit this year and progress through 2016, we are well positioned to continue improving revenue growth and delivering on our synergy commitments."

 

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