Vista, CA (October 29, 2001) -- dj Orthopedics, LLC, today announced its financial results for the quarter ended September 29, 2001. The Company's net revenues amounted to $44.1 million, up $4.2 million, or 10.5%, over the same period last year. EBITDA for the quarter ended September 29, 2001 amounted to $8.4 million, up $1.1 million, or 14.7%, over EBITDA (as adjusted) for the same period last year.
For the nine months ended September 29, 2001, net revenues amounted to $127.4 million, up $25.2 million, or 24.6%, over the same period last year. EBITDA for the first nine months of 2001 amounted to $24.8 million, up $3.7 million, or 17.5%, over EBITDA (as adjusted) for the same period last year. There was one less business day in the 2001 year to date period compared with the 2000 year to date period, resulting in approximately $0.7 million less of revenues in the first nine months of 2001.
Growth over the prior year can be attributed to the acquisition of the bracing and soft goods business of DePuy Orthopaedic Technology, Inc. ("OrthoTech"), the introduction of new products, our dj Australia joint venture and the launch of the our surgical division, Alaron Surgical®.
Les Cross, president and CEO, commented, "This is our first quarter comparing actual results of operations for the current year to the prior year where both quarters include operational results from the OrthoTech acquisition. With the OrthoTech acquisition fully integrated, the third quarter demonstrated strong growth over the prior year in the key operational metrics of revenue, net income and EBITDA."
dj Orthopedics is a global orthopedic sports medicine company specializing in the design, manufacture and marketing of surgical and non-surgical products and services that repair, regenerate and rehabilitate soft tissue and bone, help protect against injury, and treat osteoarthritis of the knee. Its broad range of over 600 existing products, many of which are based on proprietary technologies, includes rigid knee braces, soft goods, specialty and other complementary orthopedic products and its recently introduced line of surgical products. These products provide solutions for patients and orthopedic sports medicine professionals throughout the patient's continuum of care.
| The following is condensed consolidated financial data of dj Orthopedics, LLC: | ||||||||||||
| (amounts in thousands) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| September 29, | September 30, | September 29, | September 30, | |||||||||
| 2001 | 2000 | 2001 | 2000 | |||||||||
| (Unaudited) | ||||||||||||
| Net revenues | $ 44,078 | $ 39,873 | $ 127,361 | $ 102,186 | ||||||||
| Cost of goods sold | 19,176 | 17,845 | 53,856 | 43,050 | ||||||||
| Gross profit | 24,902 | 22,028 | 73,505 | 59,136 | ||||||||
| Operating expenses: | ||||||||||||
| Sales and marketing | 12,147 | 11,036 | 35,661 | 26,751 | ||||||||
| General and administrative | 6,206 | 5,495 | 18,270 | 14,529 | ||||||||
| Research and development | 513 | 514 | 1,813 | 1,678 | ||||||||
| Merger and integration costs | - | 400 | - | 400 | ||||||||
| Total operating expenses | 18,866 | 17,445 | 55,744 | 43,358 | ||||||||
| Income from operations | 6,036 | 4,583 | 17,761 | 15,778 | ||||||||
| Interest expense | (4,357) | (4,636) | (13,701) | (12,245) | ||||||||
| Interest income | 49 | 95 | 230 | 348 | ||||||||
| Net income | 1,728 | 42 | 4,290 | 3,881 | ||||||||
| Less: Preferred stock dividends and accretion | ||||||||||||
| of preferred unit fee | (1,632) | (1,428) | (4,738) | (3,908) | ||||||||
| Net income (loss) available to members | $ 96 | $ (1,386) | $ (448) | $ (27) | ||||||||
| EBITDA(1) data: | ||||||||||||
| Income from operations | $ 6,036 | $ 4,583 | $ 17,761 | $ 15,778 | ||||||||
| Merger and integration costs | - | 400 | - | 400 | ||||||||
| Depreciation and amortization | 2,363 | 2,073 | 7,001 | 4,627 | ||||||||
| EBITDA | $ 8,399 | $ 7,056 | $ 24,762 | $ 20,805 | ||||||||
| Step-up to fair value of acquired inventory | - | 268 | - | 268 | ||||||||
| EBITDA (as adjusted) | $ 8,399 | $ 7,324 | $ 24,762 | $ 21,073 | ||||||||
| September 29, | December 31, | |||||||||||
| 2001 | 2000 | |||||||||||
| (Unaudited) | ||||||||||||
| Assets: | ||||||||||||
| Current assets | $ 70,530 | $ 60,384 | ||||||||||
| Property, plant and equipment, net | 14,880 | 12,785 | ||||||||||
| Intangible assets, net | 72,029 | 75,419 | ||||||||||
| Other assets | 7,485 | 7,084 | ||||||||||
| Total | $ 164,924 | $ 155,672 | ||||||||||
| Liabilities and members' deficit: | ||||||||||||
| Current liabilities | $ 25,124 | $ 21,689 | ||||||||||
| Long-term obligations, net of current portion | 194,898 | 197,608 | ||||||||||
| Members' deficit | (55,098) | (63,625) | ||||||||||
| Total | $ 164,924 | $ 155,672 | ||||||||||
| Company Contacts: | Investor Relations Contacts: |
| dj Orthopedics, LLC | Lippert/Heilshorn & Associates, Inc. |
| Les Cross, CEO | Bruce Voss (bvoss@lhai.com) |
| Cy Talbot, CFO | Jody Cain (jcain@lhai.com) |
| (760) 734-3559 | (310) 691-7100 |
| http://www.djortho.com/ | www.lhai.com |
