Exactech Inc. 05.03.16
Gainesville, Fla.-based Exactech Inc., a developer and producer of bone and joint restoration products for hip, knee, shoulder, spine and biologic materials, brought in revenue of $65.3 million for the first quarter of 2016, a 6 percent increase from $61.4 million in the first quarter of 2015. On a constant currency basis, revenue was up 7 percent. Net income was $4.4 million, or $0.31 per diluted share, compared to $4.1 million, or $0.29 per diluted share, in the same quarter a year ago.
“Gross margins decreased to 69 percent from 70 percent for the first quarter a year ago due to continued pricing pressures,” added Chief Financial Officer Jody Phillips. “Total operating expenses for the quarter increased 5 percent to $38.6 million; however, as a percentage of sales decreased to 59 percent, compared to 60 percent for the first quarter of 2015. Sales and marketing expenses increased 7 percent to $23.3 million, which included the integration of our recently acquired distributor in Australia. General and administrative expenses increased 1 percent in the first quarter to $5.9 million and research and development expenses increased 12 percent to $5.1 million during the first quarter reflecting ongoing significant investment in our new product pipeline.”
Exactech increased its 2016 revenue guidance to $250-$257 million and its diluted earnings per share (EPS) target to $1.14—$1.19. For the second quarter ending June 30, 2016, company officials said it anticipates revenues of $63-$65 and diluted EPS of $0.29-$0.31. The foregoing statements regarding targets for the quarter and full year are forward-looking and actual results may differ materially. These are the company’s targets, not predictions of actual performance.
- Extremity implant revenue increased 15 percent to $24.2 million, a 15 percent constant currency increase.
- Knee implant revenue increased 5 percent to $19.4 million, a 6 percent constant currency increase.
- Hip implant revenue increased 4 percent to $11.3 million, a 5 percent constant currency increase.
- Biologic and Spine revenue increased 5 percent to $5.4 million, a 7 percent constant currency increase.
- Other revenue decreased 13 percent to $5.0 million, a 12 percent constant currency decrease.
“Gross margins decreased to 69 percent from 70 percent for the first quarter a year ago due to continued pricing pressures,” added Chief Financial Officer Jody Phillips. “Total operating expenses for the quarter increased 5 percent to $38.6 million; however, as a percentage of sales decreased to 59 percent, compared to 60 percent for the first quarter of 2015. Sales and marketing expenses increased 7 percent to $23.3 million, which included the integration of our recently acquired distributor in Australia. General and administrative expenses increased 1 percent in the first quarter to $5.9 million and research and development expenses increased 12 percent to $5.1 million during the first quarter reflecting ongoing significant investment in our new product pipeline.”
Exactech increased its 2016 revenue guidance to $250-$257 million and its diluted earnings per share (EPS) target to $1.14—$1.19. For the second quarter ending June 30, 2016, company officials said it anticipates revenues of $63-$65 and diluted EPS of $0.29-$0.31. The foregoing statements regarding targets for the quarter and full year are forward-looking and actual results may differ materially. These are the company’s targets, not predictions of actual performance.