Biomet has released its financial results for the most recent quarter, showing a net sales increase of 9% (11% on a constant currency basis) to $790.1 million compared with a year ago. Income and earnings showed similarly healthy increases, although some one-off costs translated into a significantly bigger net loss than in the equivalent period.
U.S. net sales increased 10% to $470.8 million during the second quarter, while Europe net sales decreased 1% (increased 5% constant currency) to $193.9 million and International (primarily Canada, South America, Mexico and the Pacific Rim) net sales increased 21% (22% constant currency) to $125.4 million.
Reported operating income during the second quarter of fiscal year 2013 was $143.2 million, compared to operating income of $103.8 million during the second quarter of fiscal year 2012. Excluding special items, adjusted operating income totaled $240.0 million during the second quarter of fiscal year 2013, compared to $219.7 million for the second quarter of fiscal year 2012.
Excluding special items, adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) was $288.2 million, or 36.5% of net sales, during the second quarter of fiscal year 2013, compared to $266.3 million, or 36.7% of net sales, for the second quarter of fiscal year 2012.
The consolidated statement of operations shows up what is listed as an “other expense”, not incurred in the equivalent period a year ago, of $124.0 million for the quarter, which the company says is primarily due to $117.2 million of loss on retirement of debt which was incurred as part of the refinancing activities completed during the quarter.
In summary therefore, at November 30, 2012, reported gross debt was $6,039.6 million, and cash and cash equivalents of $167.5 million, resulting in net debt of $5,872.1 million, compared to $5,335.4 million at May 31, 2012. This reflects the impact of the Trauma Acquisition, debt refinancing activities and foreign currency translation on Euro-denominated debt.
Biomet’s President and Chief Executive Officer Jeffrey R. Binder remarked, “We had a strong second quarter of fiscal year 2013. We reported top line growth of 9%, which translated to 11% growth on a constant currency basis, and we delivered strong bottom line growth. Adjusted EBITDA improved 8% over the prior year quarter to $288 million or 36.5% of net sales, despite the short-term costs incurred in connection with our trauma acquisition. In addition, we’ve substantially completed the integration of our trauma acquisition, and our Sports, Extremities and Trauma (S.E.T.) revenues are now approaching 20% of our net sales at an annualized run rate of $600 million.”