KEY EXECUTIVES:
Michael P. Mogul, President and CEO
Vickie L. Capps, Exec. VP, Chief Financial Officer and Treasurer
Luke T. Faulstick, Exec. VP, Chief Operating Officer
Donald M. Roberts, Exec. VP, General Counsel and Secretary
Stephen J. Murphy, Exec. VP, Sales and Marketing, International Commercial Business
Andrew P. Holman, Exec. VP, Sales and Marketing, U.S. Commercial Business
GLOBAL HEADQUARTERS: Vista, Calif.
NO. OF EMPLOYEES: 4,700
There’s a lot to be said for smooth sailing—particularly after a few challenging years. At the end of fiscal year 2010, DJO Inc. had managed to grow sales and was on the cusp as a new corporate identity. At the beginning of 2011, the company changed its name to DJO Global to better reflect a broader product line and international reach. Today, the company’s product portfolio consists of eight global brands integrated into four reporting segments, including Recovery Sciences, Bracing and Supports, Surgical Implant, and International, which—as the name implies—sells all DJO Global brands outside the United States.
The company’s product lines include rigid and soft orthopedic bracing, hot and cold therapy, bone growth stimulators, vascular therapy systems and compression garments, electrical stimulators used for pain management and physical therapy products. The surgical division offers reconstructive joint products for the hip, knee and shoulder.
“We are pleased to have completed 2010 on a strong note in spite of challenges that impacted our industry during the year,” said Les Cross, president and CEO, who announced his retirement at the beginning of fiscal 2010. Cross is now non-executive chairman of the board of directors. Michael P. Mogul was named president and CEO on June 13 this year.
“In the last few years, we’ve focused on joining together a large group of essentially independent businesses into a single company,” said Cross. “Our last integration step focused on horizontally integrating our marketing and commercial shared services while maintaining our vertically aligned brand-focused sellers. With this integration now complete, DJO Global stakes its claim as a worldwide leader in orthopedic rehabilitation. Together with our healthcare provider customers, we enable people to regain the joy and comfort of natural motion.”
In fiscal 2010 (ended Dec. 31), the company’s earnings totaled $966 million, a modest 2.1 percent increase compared with 2009. Despite top-line gains, DJO reported a net loss of $51.6 million in 2010, compared with a loss of $50.4 million for 2009.
Sales in the company’s Recovery Sciences division were $347.1 million for 2010, reflecting an increase of 1.5 percent compared with net sales of $342 million for 2009. Increases in sales of new products in the firm’s Empi (pain management) business unit and improved sales of Chattanooga rehabilitation products, partially were offset by the impact of discontinuing certain Chattanooga products, which had contributed revenue of $3.8 million in 2009.
Net sales for the Bracing and Supports division were $311.6 million, a 4.3 percent increase. DJO officials attributed the increase to growth across most product lines, in addition to higher revenue generated under a new soft goods contract with the Novation group purchasing organization.
Net sales in the company’s International segment were $244.5 million for 2010, an increase of $3 million. Strong sales of bracing and support products across all major international markets, and continued improvement in Chattanooga sales were tempered by the discontinuation of certain Chattanooga products sold in international markets, which contributed revenue of $3.5 million in 2009.
Net sales for the Surgical Implant unit were $62.7 million, compared with $63.9 million for 2009, representing a decrease of 1.8 percent. According to the company, the decrease was the result of the loss of “a few key customers” of hip and knee products, in addition to the impact of the 2009 sale of a non-core spine product line that had contributed revenue of $1.9 million in the prior fiscal year.
The drop in sales was limited, however, by increased sales of shoulder products and strong sales of a new hip revision product offered under DJO’s partnership with Lima Corporate. DJO and Lima, an Italy-based orthopedic implants company, began their collaboration in 2009. DJO Surgical launched the first of Lima's products in the United States, a revision hip system, late in the third quarter of 2010. Lima is distributing DJO Surgical’s 3D knee and Foundation total knee system in select European markets. The firms planned to expand their partnership this year.