Symmetry Medical Reports Record First Quarter 2005 Earnings Per Share of $0.22
Wednesday May 4, 5:32 pm ET
Strong Demand Drives Further Expansion Plans
First Quarter Highlights:
- Revenue increased to $63.8 million, up 39.1% over first quarter 2004
- Gross margin increased to 30.4%, up 2.9 percentage points over first quarter 2004
- Net income increased to $7.7 million, or $0.22 per diluted share
WARSAW, Ind., May 4 /PRNewswire-FirstCall/ -- Symmetry Medical Inc. (NYSE: SMA - News), an independent provider of products to the global orthopedic device industry, announced today first quarter 2005 financial results for the period ended April 2, 2005.
The Company reported first quarter 2005 revenue of $63.8 million, a 39.1% increase over revenues of $45.8 million for the first quarter of 2004.
Gross profit for the first quarter of 2005 was $19.4 million, a 54.1% increase over gross profit of $12.6 million for the first quarter of 2004. Gross margin for the first quarter was 30.4%, compared to a gross margin of 27.5% for the first quarter 2004.
Operating income for the first quarter of 2005 was $12.4 million, a 75.5% increase over operating income of $7.1 million for the first quarter of 2004. Operating margin for the first quarter was 19.5%, compared with an operating margin of 15.5% for the first quarter 2004.
For the first quarter ended April 2, 2005, the Company reported net income applicable to common shareholders of $7.7 million, or $0.22 per diluted share, compared to net income applicable to common shareholders of ($0.1) million, or ($0.01) per diluted share, for the quarter ended April 3, 2004. The weighted average number of fully diluted shares outstanding during the first quarter of 2005 was 34,115,708.
In January 2005, the Company completed the expansion of two existing facilities and the development of two new facilities. The addition of nearly 60,000 square feet reflects the demand for Symmetry Medical's Total Solutions(TM) business model. The total cost of the expansions and development was $8.5 million.
Due to strong demand, Symmetry Medical is planning for additional facility expansions, including:
* Construction of a new Design & Development Center in Warsaw, Indiana to
support customers with co-development projects and Total Solutions(TM);
* Leasing of two new facilities, one in Lille, France for cases and the
other in Cheltenham, England for instruments; and
* Purchase of additional adjacent land for the Company's Sheffield, UK
facility to allow for the expansion of knee, hip and shoulder implant
production.
Brian Moore, President and Chief Executive Officer, stated, "We are pleased to report robust growth in first quarter revenue and operating income. Our results reflect continued demand for our Total Solutions business model by the global orthopedic industry. Our global sales teams continue to execute our cross-selling and up-selling strategies. We continue to benefit from the strong fundamentals of the global orthopedic industry."
Financial Guidance
The following statements are based on current market conditions and foreign currency comparisons. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of new business or license agreements the company may enter in future periods. The factors discussed above are not intended to be an exhaustive list of the factors that may affect our future performance.
For the total year 2005, the Company expects full year revenues to be in the range of $247 million to $253 million and earnings per diluted share to be in the range of $0.90 to $0.93. For the second quarter of 2005, the Company expects revenues to be in the range of $63 million to $66 million and earnings per diluted share to be in the range of $0.23 to $0.24. |
