The company cut its losses by 78.3 percent from the $304.5 million it reported in the comparable period last year. Net revenue rose 6.6 percent to $822.5 million in the three months ended Feb. 28.
Excluding special items, adjusted net income totaled $107.3 million during the third quarter of fiscal year 2014, compared to $94.9 million for the third quarter of fiscal year 2013.
Excluding special items, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) during the third quarter of fiscal year 2014 totaled $271.5 million compared with $264.2 million for the third quarter of fiscal year 2013 (ended Feb. 28).
Reported cash flow from operations totaled $154.7 million during Q3, compared with reported cash flow from operations of $145.2 million for the same period in 2013. Free cash flow (operating cash flow minus capital expenditures) was $94.4 million, which included $100.4 million of cash interest paid in the quarter, compared to a free cash flow of $102.4 million during the third quarter of fiscal year 2013, including $97.5 million of cash interest paid. Unlevered free cash flow (free cash flow plus cash paid for interest) was $194.8 million, down slightly from the $199.9 million Biomet posted in Q3 2013. .
As of Feb. 28, reported gross debt was $5,831.7 million, and cash and cash equivalents, as defined in the company’s Amended and Restated Credit Agreement dated Aug. 2, 2012, totaled $212.4 million, resulting in net debt of $5,619.3 million, compared with $5,610.8 million on May 31, 2013.
In the quarter, Biomet said knee sales increased 8.4 percent year-over-year to $254.2 million, while hip sales rose 2.8 percent to $162.9 million. Sports medicine, extremities and trauma products generated $169 million in revenue, up 4.7 percent from the year-ago period, while sales from the spine, bone healing and micofixation segment gained 16.4 percent to $115.9 million. Biomet also reported litigation costs of $93 million during the quarter, while it had recorded asset-impairment charges of $334.1 million in the corresponding year-earlier period.Commenting on the results, CEO Jeffrey Binder said the company "delivered balanced, constant-currency sales growth across major geographies and major product categories."
In March, the company announced that it registered for an initial public offering of its common stock to raise up to $100 million, in a bid to partially pay off debt related to its 2007 buyout by Blackstone Group, KKR, TPG and Goldman Sachs. Biomet also said recently that it plans to invest $40.5 million to expand operations in Indiana, creating 150 new positions by 2018.