Exactech Q3 Revenue Up 13% to $24.3M;Net Income $1.8M or $0.16 EPS
Gainesville, FL, October 30, 2006 -- Exactech, Inc. (Nasdaq: EXAC) announced today that revenue for the third quarter of 2006 increased 13% to $24.3 million from $21.5 million in the third quarter of 2005. Diluted earnings per share for the quarter was $0.16 based on net income of $1.8 million, compared to diluted earnings per share of $0.15 on net income of $1.7 million for the third quarter of 2005.
Gainesville, FL, October 30, 2006 -- Exactech, Inc. (Nasdaq: EXAC) announced today that revenue for the third quarter of 2006 increased 13% to $24.3 million from $21.5 million in the third quarter of 2005. Diluted earnings per share for the quarter was $0.16 based on net income of $1.8 million, compared to diluted earnings per share of $0.15 on net income of $1.7 million for the third quarter of 2005.
For the first nine months of 2006, revenue was $76.3 million, an increase of 12% over revenue of $68.0 million in the first nine months of 2005. Net income for the first nine months increased 15% to $5.5 million, or $0.47 per diluted share, compared to $4.8 million, or $0.42 per diluted share, in the first three quarters of 2005.
Exactech Chairman and CEO Bill Petty said, “We saw a healthy increase in our third quarter sales across the board as our product portfolio has grown. Knee implants increased 9% to $12.0 million from $11.0 million in third quarter of 2005. The year-to-date knee implant sales also increased compared to the same period last year, from $37.8 million to $40.3 million, a 7% increase. Sales of hip implants increased by 22% to $4.5 million in the third quarter, compared to $3.7 million in the third quarter of 2005. This was largely due to gaining momentum with our Novation™ hip system. Hip sales year-to-date were $12.9 million, up 10% from $11.8 million in the comparable period in 2005. Revenue from Biologics of $3.4 million for the quarter represented an increase of 15% from $2.9 million in the same quarter of last year. For the quarter, sales of other products, which include the Equinoxe shoulder system and cement products, increased 12% to $4.4 million from $3.9 million in the third quarter of last year.”
Petty said, “U.S. sales were up 13% to $19.9 million from $17.5 million in the same quarter last year. International sales increased 11% to $4.4 million in the third quarter from $4.0 million in the third quarter of 2005. For the quarter, international sales represented 18% of total sales, compared to 19% in the third quarter of 2005.”
Chief Financial Officer Jody Phillips said, “Gross margin percentage during the quarter decreased to 68% from 70% in the third quarter of 2005, primarily as a result of unfavorable overhead variances. Total operating expenses for the quarter were $13.0 million, an increase of 7% from $12.1 million. As a percent of sales, operating expenses were down from 56% in the third quarter of 2005 to 53% for the third quarter of 2006. General and Administrative expenses remained constant at $2.4 million for the third quarters of 2006 and 2005. Research and Development expenses in the third quarter also remained relatively constant at $1.4 million for both 2006 and 2005. Sales and Marketing expenses increased 10% to $7.1 million for the quarter from $6.4 million for the third quarter of 2005.”
Looking forward, the company said its target for diluted earnings per share in the fourth quarter ending December 31, 2006 is in the range of $0.17 to $0.18 based on anticipated revenues of $24.0 million to $26.6 million. The company’s target range for 2006 revenue is $101 million to $103 million with diluted EPS of $0.64 to $0.65. The company said its initial forecast for 2007 is for revenue in the range of $112 million to $118 million and diluted EPS of $0.70 to $0.76. 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.
The company has scheduled a conference call on Monday, Oct. 30 at 5 p.m. Eastern Time. To participate, call (877) 502-9272 any time after 4:50 p.m. Eastern Time on Oct. 30. International and local callers should dial (913) 981-5581.
A live webcast of the call will be available at http://viavid.net/dce.aspx?sid=0000368F. The webcast will be available for one month. Viewers will need Windows Media Player or Real Player to listen to the broadcast. To download Media Player, go to http://www.microsoft.com/windows/windowsmedia/download.
The financial statements are below.
About Exactech
Based in Gainesville, Fla., Exactech develops and markets orthopaedic implant devices, related surgical instruments and biologic materials and services to hospitals and physicians. The company manufactures many of its orthopaedic devices at its Gainesville facility. Exactech’s orthopaedic products are used in the restoration of bones and joints that have deteriorated as a result of injury or diseases such as arthritis. Exactech markets its products in the United States and in more than 25 countries in Europe, Asia, Australia and Latin America. For more information, visit http://www.exac.com.
An investment profile on Exactech may be found at http://www.hawkassociates.com/exacprofile.aspx.
An online virtual investor relations kit containing Exactech press releases, SEC filings, current price quotes, stock charts and other useful information for investors can be found on the Hawk Associates website, http://www.hawkassociates.com. Investors may contact Chief Financial Officer Jody Phillips at (352) 377-1140 or Julie Marshall or Frank Hawkins, Hawk Associates Inc., at (305) 451-1888, e-mail: info@hawkassociates.com.
This release contains various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 which represent the company’s expectations or beliefs concerning future events of the company’s financial performance. These forward-looking statements are furtherqualified by important factors that could cause actual results to differ materially from those in the forward-looking statements. These factors include the effect of competitive pricing, the company’s dependence on the ability of thirdparty manufacturers to produce components on a basis which is cost-effective to the company, market acceptance of the company’s products and the effects of government regulation. Results actually achieved may differ materially from expected results included in these statements.
