Orthofix International Announces 2nd Quarter 2012 Results

LEWISVILLE, Texas–(BUSINESS WIRE)–Orthofix International N.V. (NASDAQ:OFIX) (the Company) today announced its results for the second quarter ended June 30, 2012. Net sales of $119.5 million represent an increase of 2% over the second quarter of last year. Net sales grew 5% on a constant currency basis. Net income from continuing operations was $14.0 million, or $0.73 per diluted share compared to net income from continuing operations of $10.5 million, or $0.57 per diluted share, in the prior year. Adjusted net income was up 11% to $14.9 million, or $0.78 per diluted share compared to $13.4 million, or $0.72 per diluted share, in the prior year.
“The second quarter results demonstrate the strength of our Regenerative Solutions and highlights our strategy to leverage our differentiated product offerings across both our Spine and Orthopedic business units,” commented President and Chief Executive Officer Robert Vaters. “In addition, the close of the Sports Medicine divestiture provides us with the financial capacity and flexibility to make the necessary investments to drive long-term growth.”
Sales Performance
Net sales were $119.5 million in the second quarter of 2012, up 2% on a reported basis, and 5% on a constant currency basis, from $116.7 million in the second quarter of the prior year. Foreign currency negatively impacted second quarter net sales by approximately $3.3 million, or 3% of net sales.
Second quarter net sales for the Company’s Spine global business unit were up 7% to $81.8 million, which was driven by a 9% increase in Regenerative Stimulation products used in spine applications. Revenue from Repair Implants and Regenerative Biologics increased 4% over prior year, which was primarily a result of increased adoption of Trinity® Evolution™ in spine applications, which led to a 48% increase in sales of Regenerative Biologics in the second quarter of 2012.
For the Company’s Orthopedic global business unit, second quarter net sales were $37.7 million, decreasing 6% on a reported basis, while increasing 2% on a constant currency basis, compared to the prior year. Foreign currency negatively impacted reported net sales by $3.3 million, or 9% of net orthopedic sales. Constant currency sales growth was driven by sales of Regenerative Biologics in Orthopedic applications, along with recently launched internal fixation systems for the foot and ankle.