08.04.14
$1.2 Billion
KEY EXECUTIVES:
Michael P. Mogul, President, CEO & Director; Manager of DJOFL
Cynthia J. Dieter, Interim Principal Financial Officer & Interim Principal Accounting Officer
Steven Ingel, President, Global Bracing and Supports
Gerry McDonnell, Exec. VP, Global Quality and Operations
Stephen J. Murphy, President, International Commercial Business
Donald M. Roberts, Exec. VP, General Counsel and Secretary; Manager of DJOFL
Sharon Wolfington, President, Global Recovery Sciences
Mike S. Zafirovski, Board Chairman
NO. OF EMPLOYEES: 5,470
HEADQUARTERS: Vista, Calif.
There’s no set formula for name synonymity. Achievement surely plays a role but is not the sole determining factor. Consider, for a moment, the tragic tale of Major General James Brudenell, the 7th Earl of Cardigan, who led the Charge of the Light Brigade (British light cavalry) against Russian forces during the Crimean War, but whose name is most affiliated with woolly sweaters. Or John Montagu, the 4th Earl of Sandwich, who held various military and political offices in Britian, including Postmaster General, First Lord of the Admiralty and Secretary of State for the Northern Department, but will always be best known for (reportedly) being the first to put meat between two slices of bread.
Michael P. Mogul is hoping to avoid the same fate by attempting to live up to his surname, a cognomen that constantly has prompted questions and comments: “Can you ski the bumps?” kids would ask Mogul when he hit the slopes as a child. “With a name like mine, you’d better be able to ski moguls or kids will give you a hard time,” he wrote in a 2012 New York Times article.
The questions have subsided significantly in adulthood, but haven’t altogether ended. The occasional volley is still fired Mogul’s way, but the answer has become considerably more complicated. “Now some people ask me if I’m a billionaire mogul,” he said in his Times commentary. “I tell them: ‘Not yet. I’m working on it.’”
Technically, Mogul is correct. As chief executive of DJO Global, he earns $1.01 million ($750,000 base salary and $266,678 in non-equity incentive plan/other 2013 compensation)—a far cry from the net worth of multi-billionaires like Bill Gates, Warren Buffett, Larry Ellison, Michael Bloomberg, Mark Zuckerberg, Jeff Bezos and Larry Page.
But Mogul certainly is well within his rights to measure his overall wealth by his company’s success (he does, after all, own 218,712 total shares). By that standard then, the 49-year-old qualifies as a financial mogul and finally can squelch the snarky questions.
Net sales at DJO Global rose 4 percent last year to $1.2 billion and gross profit climbed 2.5 percent to $703,040, according to the Vista, Calif.-based firm’s 2013 annual report. Losses, however, skyrocketed to $202.5 million in 2013 (year ended Dec. 31) from $118,368 the previous year. The deficit at the company’s operating subsidiary, DJO Finance LLC, was just as large, mushrooming 70.7 percent to $203.4 million. In explaining the massive shortfalls, DJO reported it took non-cash losses of $107 million attributed to impairment of goodwill, and depreciation and amortization losses of $129 million for the year.
Despite the setback, DJO grew revenues and gross profits in three of its four business segments, with the Surgical Implant division scoring a leading 19.3 percent sales gain and 15.2 percent gross profit hike compared with 2012 data. Executives attributed the increase—$14.1 million in additional sales and $8.3 million in newfound profits—to solid demand for shoulder implants and new products, though they did not specify the bestsellers.
Nevertheless, growth likely came from such new product introductions as a vitamin E glenoid component for total shoulder arthroplasty; the Linear dual-tapered hip stem and the Revelation microMAX anatomic hip stem with lateral flare technology; the Movation Total Knee System With e+ technology; and the Trabecular Titanium Acetabular System. The latter product provides an aggressive fixation cup solution for tough primary or revision hip procedures. The Trabecular cups are manufactured using an electron beam melting technology, which allows the porosity to be controlled and integral to the cup (not a coating).
The Movation knee, launched at the American Academy of Orthopaedic Surgeons 2013 Annual Meeting, is a total knee arthroplasty (TKA) system developed at the Hospital for Special Surgery in New York, N.Y. DJO licensed this patent for a classic PS Knee solution, and re-defined it with modern features, including a constant axis femoral component, contoured insert condyles for reduced rotational stress, reduced and rounded trochlear transition, and anatomic femoral and baseplate components.
The Movation system comes with a newly developed instrument set designed for easier and more efficient implantation.
Bracing and Vascular followed a similar path to prosperity, leveraging the debuts of its Exos Rapid Splint System, Exos FORM Spine Bracing System and AirSelect Elite walking boot to expand sales 7.2 percent to $476.4 million and increase gross profit 6.3 percent to $243.9 million.
The Rapid Splint system treats acute fractures and injuries that require stabilization but requires fewer preparatory steps, saving time. The splints have integrated foam padding, smooth edges, and are applied warm and dry, according to DJO.
“These new Exos products have the potential to inspire a paradigm shift in the way we brace, support, and stabilize patients,” said Fariborz Boor Boor, vice president/general manager of Exos. “We are just scratching the surface of what is possible with Exos thermoformable technology.”
The Exos Form spine bracing system incorporates Exos thermoformable technology in a modular, prefabricated, semi-universal patent pending design that features Boa Technology’s closure system.The Exos Form spine bracing line includes five products in a series of lower lumbar spinal orthoses that include different thoracolumbosacral, lumbosacral, lumbar, and sacroiliac orthoses.
DJO claims its AirSelect pneumatic boots speed the healing of stable lower leg, foot and ankle fractures as well as severe ankle sprains; reduce edema and enhance patient comfort. Designed with a selector dial and integrated inflation system that allows patients to select each aircell independently for a customized fit, AirSelect Elite incorporates SoftStrike technology that puts a matrix of shock-absorbing material in direct contact with the heel for structured cushioning and provides a rocker sole to maintain a natural gait. Airflow and mass are controlled with engineered vents in AirSelect Elite’s shell design.
DJO’s International segment scored a double win, posting a 6.6 percent increase in 2013 net sales ($299 million) and 6.7 percent jump in gross profit ($165.6 million). Bigwigs linked the gains to new products, improved sales execution and better “sales penetration” in certain world regions.
Those areas might very well be Australia/Asia-Pacific and Canada, where revenues spiked 30.7 percent and 10 percent, respectively. Admirable gains also were made in Germany, where proceeds rose 4.4 percent to $88.2 million; the United States, where sales climbed 3.2 percent to $876.3 million; and Europe, the Middle East and Africa, where profits increased 3.1 percent to $139.2 million.
Recovery Sciences was the sole dark horse last year: Sales slipped 5.6 percent to $312.7 million and gross profit tumbled 6.1 percent to $234.4 million due mainly to changes in reimbursement for certain Empi business unit products and a weak market for the capital equipment sold by the company’s Chattanooga business division.
KEY EXECUTIVES:
Michael P. Mogul, President, CEO & Director; Manager of DJOFL
Cynthia J. Dieter, Interim Principal Financial Officer & Interim Principal Accounting Officer
Steven Ingel, President, Global Bracing and Supports
Gerry McDonnell, Exec. VP, Global Quality and Operations
Stephen J. Murphy, President, International Commercial Business
Donald M. Roberts, Exec. VP, General Counsel and Secretary; Manager of DJOFL
Sharon Wolfington, President, Global Recovery Sciences
Mike S. Zafirovski, Board Chairman
NO. OF EMPLOYEES: 5,470
HEADQUARTERS: Vista, Calif.
There’s no set formula for name synonymity. Achievement surely plays a role but is not the sole determining factor. Consider, for a moment, the tragic tale of Major General James Brudenell, the 7th Earl of Cardigan, who led the Charge of the Light Brigade (British light cavalry) against Russian forces during the Crimean War, but whose name is most affiliated with woolly sweaters. Or John Montagu, the 4th Earl of Sandwich, who held various military and political offices in Britian, including Postmaster General, First Lord of the Admiralty and Secretary of State for the Northern Department, but will always be best known for (reportedly) being the first to put meat between two slices of bread.
Michael P. Mogul is hoping to avoid the same fate by attempting to live up to his surname, a cognomen that constantly has prompted questions and comments: “Can you ski the bumps?” kids would ask Mogul when he hit the slopes as a child. “With a name like mine, you’d better be able to ski moguls or kids will give you a hard time,” he wrote in a 2012 New York Times article.
The questions have subsided significantly in adulthood, but haven’t altogether ended. The occasional volley is still fired Mogul’s way, but the answer has become considerably more complicated. “Now some people ask me if I’m a billionaire mogul,” he said in his Times commentary. “I tell them: ‘Not yet. I’m working on it.’”
Technically, Mogul is correct. As chief executive of DJO Global, he earns $1.01 million ($750,000 base salary and $266,678 in non-equity incentive plan/other 2013 compensation)—a far cry from the net worth of multi-billionaires like Bill Gates, Warren Buffett, Larry Ellison, Michael Bloomberg, Mark Zuckerberg, Jeff Bezos and Larry Page.
But Mogul certainly is well within his rights to measure his overall wealth by his company’s success (he does, after all, own 218,712 total shares). By that standard then, the 49-year-old qualifies as a financial mogul and finally can squelch the snarky questions.
Net sales at DJO Global rose 4 percent last year to $1.2 billion and gross profit climbed 2.5 percent to $703,040, according to the Vista, Calif.-based firm’s 2013 annual report. Losses, however, skyrocketed to $202.5 million in 2013 (year ended Dec. 31) from $118,368 the previous year. The deficit at the company’s operating subsidiary, DJO Finance LLC, was just as large, mushrooming 70.7 percent to $203.4 million. In explaining the massive shortfalls, DJO reported it took non-cash losses of $107 million attributed to impairment of goodwill, and depreciation and amortization losses of $129 million for the year.
Despite the setback, DJO grew revenues and gross profits in three of its four business segments, with the Surgical Implant division scoring a leading 19.3 percent sales gain and 15.2 percent gross profit hike compared with 2012 data. Executives attributed the increase—$14.1 million in additional sales and $8.3 million in newfound profits—to solid demand for shoulder implants and new products, though they did not specify the bestsellers.
Nevertheless, growth likely came from such new product introductions as a vitamin E glenoid component for total shoulder arthroplasty; the Linear dual-tapered hip stem and the Revelation microMAX anatomic hip stem with lateral flare technology; the Movation Total Knee System With e+ technology; and the Trabecular Titanium Acetabular System. The latter product provides an aggressive fixation cup solution for tough primary or revision hip procedures. The Trabecular cups are manufactured using an electron beam melting technology, which allows the porosity to be controlled and integral to the cup (not a coating).
The Movation knee, launched at the American Academy of Orthopaedic Surgeons 2013 Annual Meeting, is a total knee arthroplasty (TKA) system developed at the Hospital for Special Surgery in New York, N.Y. DJO licensed this patent for a classic PS Knee solution, and re-defined it with modern features, including a constant axis femoral component, contoured insert condyles for reduced rotational stress, reduced and rounded trochlear transition, and anatomic femoral and baseplate components.
The Movation system comes with a newly developed instrument set designed for easier and more efficient implantation.
Bracing and Vascular followed a similar path to prosperity, leveraging the debuts of its Exos Rapid Splint System, Exos FORM Spine Bracing System and AirSelect Elite walking boot to expand sales 7.2 percent to $476.4 million and increase gross profit 6.3 percent to $243.9 million.
The Rapid Splint system treats acute fractures and injuries that require stabilization but requires fewer preparatory steps, saving time. The splints have integrated foam padding, smooth edges, and are applied warm and dry, according to DJO.
“These new Exos products have the potential to inspire a paradigm shift in the way we brace, support, and stabilize patients,” said Fariborz Boor Boor, vice president/general manager of Exos. “We are just scratching the surface of what is possible with Exos thermoformable technology.”
The Exos Form spine bracing system incorporates Exos thermoformable technology in a modular, prefabricated, semi-universal patent pending design that features Boa Technology’s closure system.The Exos Form spine bracing line includes five products in a series of lower lumbar spinal orthoses that include different thoracolumbosacral, lumbosacral, lumbar, and sacroiliac orthoses.
DJO claims its AirSelect pneumatic boots speed the healing of stable lower leg, foot and ankle fractures as well as severe ankle sprains; reduce edema and enhance patient comfort. Designed with a selector dial and integrated inflation system that allows patients to select each aircell independently for a customized fit, AirSelect Elite incorporates SoftStrike technology that puts a matrix of shock-absorbing material in direct contact with the heel for structured cushioning and provides a rocker sole to maintain a natural gait. Airflow and mass are controlled with engineered vents in AirSelect Elite’s shell design.
DJO’s International segment scored a double win, posting a 6.6 percent increase in 2013 net sales ($299 million) and 6.7 percent jump in gross profit ($165.6 million). Bigwigs linked the gains to new products, improved sales execution and better “sales penetration” in certain world regions.
Those areas might very well be Australia/Asia-Pacific and Canada, where revenues spiked 30.7 percent and 10 percent, respectively. Admirable gains also were made in Germany, where proceeds rose 4.4 percent to $88.2 million; the United States, where sales climbed 3.2 percent to $876.3 million; and Europe, the Middle East and Africa, where profits increased 3.1 percent to $139.2 million.
Recovery Sciences was the sole dark horse last year: Sales slipped 5.6 percent to $312.7 million and gross profit tumbled 6.1 percent to $234.4 million due mainly to changes in reimbursement for certain Empi business unit products and a weak market for the capital equipment sold by the company’s Chattanooga business division.
Sporting the DJO Brand Talk about brand association. For the last six years or so, DJO Global has amassed quite an impressive collection of celebrity athlete endorsements—the fruition, no doubt, of a well-crafted plan to capitalize on the idolized view Americans have of their sports idols. The orthopedic device manufacturer puposely has aligned itself with athletes who fully embrace the qualities of its various brands: The proponents are more than mere achievers—they are non-traditional thinkers with tremendous drive, determination and a laser-like focus on winning. DJO’s celebrity lineup reads like a Who’s Who list of international sports. At the top is seven-time Grand Prix motocross world champion Antonio “Tony” Cairoli, whose record is surpassed only by retired racer Stefan Evers, with 10 championships and 101 victories. Cairoli is devoted to both the Defiance knee brace (marketed under the DonJoy brand name) and the Compex neuromuscular electrical stimulation device (NMES). The latter product allows athletes to customize their training, exercise more muscle fibers in less time and recover more quickly from workouts—benefits verified by Canadian freestyle skier Kristi Richards (a gold, silver, and bronze mogul medalist) and the Jelly Belly U.S. professional men’s cycling team. Richards credits the Compex device with helping expedite her recovery from small injuries, while the Jelly Belly racers (sponsored by the popular candy company) claim it minimizes the effects of strenuous training or races. The Defiance brace, DonJoy’s flagship product, is designed specifically for high-collision sports. It is the strongest of DJO’s functional braces (yet lightweight), incorporating technology to both support various knee instabilities and protect the vulnerable anterior cruciate ligament (ACL). Since its 1992 introduction, the Defiance brace has become a dominant force on U.S. gridirons: More than 80 percent (22) of the Associated Press Top 25 college football teams use the brace, DJO notes. Cairoli has depended on Defiance for the last five years. “I had just suffered a torn ACL in my left knee,” the 28-year-old recalled in an article on DJO’s website. “DonJoy’s Defiances gave me the confidence to ride at full speed after my accident. Combining the protection from my DonJoys with the extra strength in the medial head of my quadriceps from using my Compex, I have managed to keep injury-free ever since. I don’t ride without my DonJoy braces...” French mountain biker Cedric Garcia felt the same way after crashing into another rider while practicing for the World Cup Downhill semi-final in 2009. Unable to stop his bike in time, the 36-year-old lost control of his front wheel and “totally destroyed” his knee. The Armor brace (featuring a steel-reinforced hinge plate for additional strength) helped restore Garcia’s confidence in the initial weeks after his injury. “I received the knee brace before I went to the World Cup and after each practice I felt more and more confident, even though my knee was totally destroyed,” the now-retired biker said. “I really think the Armor is the product that all athletes need when they are injured. Without it I really believe I could never line up at the start of a World Cup race!” Patsy Quick would never even think about competing without Armor. Britian’s most famous off-road motorcyclist and Enduro champion (both in the United Kingdom and Europe) uses the brace to protect her rebuilt ACL from further damage by excessive or unnecessary movements. While its design took some getting used to (part of the frame fits behind the calf), Quick contends the Armor provides superior knee support. “...the Armor design is different as it has a four-point leverage system, which in simple layman terms, doesn’t allow the lower part of your leg to overstretch from the knee. This is pretty crucial in my case...I need to ensure that my injured ACL won’t be further damaged. I personally wouldn’t feel comfortable even going to trials without wearing knee braces—I feel kinda ‘unclothed.’ Overall, my experience with the Armor has been excellent. The braces do what I want them to do and I’ve not had any problems (so far) with my old injuries...” DonJoy’s testimonials are not limited to the biking and motocross worlds, though. Former National Hockey League player Mattias Erik Timander and the United Kingdom’s Ultimate Frisbee Team are DJO disciples as well. Donning Aircast AirSelect Walking Boots and DonJoy knee braces, the frisbee team took fourth place in two World Championship divisions and fifth place in three others, securing a place in the 2009 World Games in Taipei, China. Timander, a former player for the Boston Bruins, Columbus Blue Jackets, NY Islanders and Philadelphia Flyers, was a fan of the Defiance III brace before his 2013 retirement. The 6-foot, 2-inch, 227-pound Swedish champion injured his right knee medial collateral ligament in 2006. “DonJoy braces give my knees the extra stability I need and the confidence to keep putting a 100 percent effort into my game,” he said. Spoken like a true champion. —ODT Staff |