Provides 2010 revenue and EPS guidance WARSAW, Ind., Feb. 25
/PRNewswire-FirstCall/ -- Symmetry Medical Inc. (NYSE:SMA), 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. Fourth Quarter Total Year (in millions, except share data)
2009 2008 Change 2009 2008 Change ---- ---- ------ ---- ---- ------
Revenue $76.4 $99.7 -23% $365.9 $423.4 -14% Operating Income 1.2
9.5 -87% 36.3 42.0 -14% Net Income 0.6 11.3 -95% 21.8 24.0 -9% EPS
$0.02 $0.32 -94% $ 0.61 $0.67 -9% Non-GAAP* --------- Revenue $76.4
$99.7 -23% $365.9 $423.4 -14% Operating Income 3.2 9.5 -66% 39.1
42.0 -7% Net Income 1.9 4.4 -57% 23.6 17.1 -38% EPS $0.05 $0.12
-58% $0.66 $0.48 -38% Revenue by Product: Instruments $32.0 $44.4
-28% $166.7 $177.5 -6% Implants 24.8 29.6 -16% 108.0 122.6 -12%
Cases 14.8 18.5 -20% 68.5 86.4 -21% Other 4.8 7.2 -33% 22.7 36.9
-38% ---- ---- ---- ---- Total Revenue $76.4 $99.7 -23% $365.9
$423.4 -14% * Excludes facility consolidation and severance costs
incurred in 2009 and the favorable impacts of the tax benefit
realized on the loss in a foreign subsidiary in 4Q 2008. Revenue
for the fourth quarter 2009 was $76.4 million, compared to $99.7
million reported in the fourth quarter 2008. Revenues during the
quarter were unfavorably impacted by reduced customer demand across
all segments of the business. 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. Selling,
general and administrative expenses declined in the fourth quarter
2009 to $10.9 million, a 21.7% reduction from $13.9 million in the
fourth quarter 2008. The year-over-year decrease was driven
primarily by aggressive cost controls implemented during 2009.
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%. The fourth quarter 2009 included a
non-cash gain of $0.4 million for the mark to market of the
Company's interest rate derivative, compared to a non-cash charge
for the interest rate derivative of $1.5 million in the fourth
quarter 2008. 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. Net income for the fourth quarter 2009 was
$0.6 million, or $0.02 per diluted share, compared to net income of
$11.3 million, or $0.32 per diluted share, for the fourth quarter
of 2008. The fourth quarter 2008 included a one-time benefit from
various tax items of $6.9 million, or $0.19 per diluted share.
Excluding the one-time facility consolidation and severance
expenses in the fourth quarter of 2009 and the one-time benefit
from various tax items in the fourth quarter of 2008, net income
for the fourth quarter 2009 was $1.9 million, or $0.05 per diluted
share, compared to net income of $4.4 million, or $0.12 per diluted
share, for the fourth quarter of 2008. The weighted average number
of diluted shares outstanding during the fourth quarter of 2009 was
35,625,195. Revenue for the full year 2009 was $365.9 million,
compared to $423.4 million reported in the full year 2008. Gross
margin percentage for the full year 2009 was 23.8%, compared to
23.7% for the full year 2008. Net income for the full year 2009 was
$21.8 million, or $0.61 per diluted share, compared to $24.0
million, or $0.67 per diluted share, reported in the full year
2008. Excluding the one-time facility consolidation and severance
expenses incurred in the fourth quarter of 2009 and the one-time
benefit from various tax items in the fourth quarter of 2008, net
income for the full year 2009 was $23.6 million, or $0.66 per
diluted share, compared to net income of $17.1 million, or $0.48
per diluted share, reported in the full year 2008. 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." Mr. Moore continued, "We are encouraged by the favorable
trends our orthopaedic customers are experiencing and our current
backlog, which increased throughout the fourth quarter. We are now
seeing tangible signs of improvement shaping our outlook for 2010.
As these signs translate into increased customer demand it will
enable us to leverage our fixed costs and combined with additional
cost savings from our facility consolidation initiatives, will
position us to drive increased profitability." 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.
For the full year 2010, the Company expects revenue to be in the
range of $320 million to $340 million. The Company expects full
year 2010 earnings per diluted share to be in the range of $0.43 to
$0.50. 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. Conference Call
Symmetry Medical will host a conference call to discuss the fourth
quarter and full year 2009 financial results at 8:00 a.m. ET on
February 25, 2010. A live Web cast of the conference call will be
available online from the investor relations page of the Company's
corporate website at http://www.symmetrymedical.com/. The dial-in
numbers are (866) 383-7989 for domestic callers and (617) 597-5328
for international. The reservation number for both is 86239074.
After the live webcast, the call will remain available on Symmetry
Medical's web site through May 25, 2010. In addition, a telephonic
replay of the call will be available until March 11, 2010. The
replay numbers are (888) 286-8010 for domestic callers and (617)
801-6888 for international callers. Please use reservation code
47379432. 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.
Forward-Looking Statements Statements in the press release
regarding Symmetry Medical Inc.'s business which are not historical
facts may be "forward-looking statements" that involve risks and
uncertainties, within the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are predictive in nature and are frequently identified
by the use of terms such as "may," "might," "will," "should,"
"expect," "believe," "anticipate," "plan," "estimate," "intend,"
and similar words indicating possible future expectations, events
or actions. Such predictive statements are not guarantees of future
performance, and actual outcomes and results could differ
materially from our current expectations. We refer you to the "Risk
Factors" and "Forward Looking-Statements" sections in the Company's
most recent Annual Report on Form 10-K filed with the Securities
and Exchange Commission as well as the Company's other filings with
the SEC, which are available on the SEC's Web site at
http://www.sec.gov/. Contact: Symmetry Medical Inc. Fred L. Hite
Senior Vice President Chief Financial Officer (574) 371-2218
Investors: The Ruth Group Nick Laudico/R.J. Pellegrino (646)
536-7030/7009 Media: Jason Rando The Ruth Group (646) 536-7025
Symmetry Medical Inc. Consolidated Statements of Operations Three
Months Ended Twelve Months Ended January 2, January 3, January 2,
January 3, 2010 2009 2010 2009 ---------- ---------- ----------
---------- (In Thousands, Except Per Share Data) (unaudited)
(unaudited) Revenue $ 76,403 $ 99,662 $ 365,943 $ 423,406 Cost of
Revenue 62,438 76,351 278,926 323,048 --------- --------- ---------
-------- Gross Profit 13,965 23,347 87,017 100,358 Selling, general
and administrative expenses 10,856 13,866 47,863 58,340 Facility
closure and severance costs 1,958 - 2,822 - --------- ---------
-------- -------- Operating Income 1,151 9,481 36,332 42,018 Other
(income)/ expense: Interest expense 1,597 1,792 6,647 10,092
Derivatives valuation gain (427) (1,419) (1,173) (2,460) Other 49
293 428 2,874 -------- --------- --------- -------- Income before
income taxes (68) 8,815 30,430 31,512 Income tax expense (622)
(2,502) 8,646 7,493 -------- --------- --------- -------- Net
income $ 554 $ 11,317 $ 21,784 $ 24,019 ======== =========
========= ========= Net income per share Basic $ 0.02 $ 0.32 $ 0.61
$ 0.67 ======== ========= ========= ========= Diluted $ 0.02 $ 0.32
$ 0.61 $ 0.67 ======== ========= ========= ========= Weighted
average common shares and equivalent shares outstanding: Basic
35,328 35,196 35,308 35,170 Diluted 35,625 35,369 35,530 35,357
Symmetry Medical Reports Fourth Quarter 2009 Financial Results
Symmetry Medical Inc. Consolidated Balance Sheets January 2,
January 3, 2010 2009 --------- --------- (In Thousands) Assets:
Current Assets: Cash and cash equivalents $ 14,219 $ 10,191
Accounts receivable, net 38,221 52,845 Inventories 62,301 61,111
Refundable income taxes 3,048 6,610 Deferred income taxes 5,816
3,993 Other current assets 3,648 3,154 --------- --------- Total
current assets 127,253 137,904 Property and equipment, net 113,369
115,045 Goodwill 153,813 153,521 Intangible assets, net of
accumulated amortization 42,729 45,039 Other assets 1,181 1,728
--------- --------- Total Assets $ 438,345 $ 453,237 =========
========= Liabilities and Shareholders' Equity: Current
Liabilities: Accounts payable $ 19,494 $ 26,929 Accrued wages and
benefits 7,607 12,784 Other accrued expenses 5,113 5,186 Income tax
payable 257 2,637 Deferred income taxes 78 - Revolving line of
credit 3,320 2,495 Current portion of capital lease obligations 529
1,034 Current portion of long-term debt 20,400 16,900 ---------
--------- Total current liabilities 56,798 67,965 Income tax
payable 6,362 - Deferred incoming taxes 17,646 18,131 Derivative
valuation liability 2,982 3,771 Capital lease obligations, less
current portion 2,887 3,356 Long-term debt, less current portion
69,200 107,600 --------- --------- Total Liabilities 155,875
200,823 --------- --------- Shareholders' Equity: Common Stock,
$.0001 par value; 75,000 shares authorized; shares issued January
2, 2010--35,840; January 3, 2009--35,801 4 4 Additional paid-in
capital 278,176 275,890 Retained earnings (deficit) 277 (21,507)
Accumulated other comprehensive Income (loss) 4,013 (1,973)
--------- --------- Total Shareholders' Equity 282,470 252,414
--------- --------- Total Liabilities and Shareholders' Equity $
438,345 $ 453,237 DATASOURCE: Symmetry Medical Inc. 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, , or R.J. Pellegrino, +1-646-536-7009, , both of
The Ruth Group for Symmetry Medical Inc.; or Media, Jason Rando of
The Ruth Group, +1-646-536-7025, , for Symmetry Medical Inc. Web
Site: http://www.symmetrymedical.com/
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