Biomet released preliminary financial results for the fourth quarter and full 2014 fiscal year, the company's first financial report since it announced plans to merge with Zimmer.
Here are 10 highlights from the financial report:
Fourth quarter
1. Consolidated net sales increased 7.7 percent to $844.5 million worldwide over the same period last year. Excluding foreign currency effects, consolidated net sales increased 7.2 percent during the fourth quarter.
2. United States net sales increased 6.9 percent during the fourth quarter to $498.5 million while European net sales were up 10.8 percent to $208.9 million. Overall international sales — primarily focused on Canada, Latin America and Asia Pacific — had a 6.4 percent net sales increase to $137.1 million.
3. Last year the company reported a $221.2 million net loss during the fourth quarter over the previous year; however, this year Biomet reported operating income at $103 million during the fourth quarter of the fiscal year.
4. The company reported a 5.1 percent increase in knee sales and 3.5 percent increase in hip sales overall; United States growth was 2.2 percent and 0.4 percent, respectfully. Sports medicine faired better at 5.8 percent growth in the United States and 5.9 percent growth overall. However, the company's spine business hit a home-run after acquiring spine device company Lanx last year. The company reported a 27.1 percent overall growth and 27.3 percent growth in the United States.
5. The company reported a net income of $66.7 million during the fourth quarter. The company's gross profit was $594.3 million.
Full year
6. Net sales for the United States increased 5.8 percent during the fiscal year to $1.9 billion and European net sales increased 8.7 percent to $772 million. Overall consolidated worldwide net sales increased 5.6 percent to $3.2 billion in 2014 fiscal year.
7. For the full year, Biomet reported operating income at $313.2 million. The company reported a net loss of $623.4 million in the 2013 fiscal year. Adjusted net income totaled $420.1 million for the fiscal year excluding special items.
8. As of May 31, 2014, Biomet reported gross debt of $5.7 billion. Cash and cash equivalents totaled $247.6 million, with a net debt of $5.4 billion. This is slightly lower than the debt reported at the same time last year — $5.6 billion. As a result of the merger with Zimmer, Zimmer expects to pay off all outstanding funded debt of LVB—which owns all of the outstanding shares of common stock of Biomet — and is subsidiaries, and the aggregate cash merger consideration paid by Zimmer at the closing will be reduced by such amount.
9. Biomet's knee sales grew 5.9 percent for the full year to $995.7 million while hips were slower at 2.6 percent growth to $649 million. The sports medicine business grew 9.3 percent to $647 million and the spine, bone healing and microfixation business grew 9.3 percent to $446.7 million.
10. The company reported net income at $36.8 million, compared to a $623.4 million loss at the end of the 2013 fiscal year. The company's fiscal year gross profit was $2.1 billion.
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