Tuesday February 11 6:41 PM EDT
Spine-Tech, Inc., Announces Fourth-Quarter and 1996 Year-End
Sales, Earnings
MINNEAPOLIS, Feb. 11 /PRNewswire/ -- Spine-Tech Inc , today reported financial results for the fourth quarter and
year ended December 31, 1996.
For the fourth quarter, Spine-TechWs net sales reached $5.7 million, up 159 percent from the $2.2 million for the
same period in 1995 and up 280 percent from the $1.5 million reported in the third quarter ended September 30, 1996.
The company recorded net pre-tax income of $460,000, or $.04 per share, for the quarter ended December 31, 1996.
In the fourth quarter, the company recorded a one-time income tax benefit of $1.7 million due to the elimination of the
valuation allowance, that had been established as a reserve, against the company's net deferred tax asset. This action
was required under generally accepted accounting principles and resulted in the company recording net income for the
quarter of $2.10 million, or $.19 per share versus net income of $296,000, or $.03 per share in the fourth quarter of
1995.
For the year ended December 31, 1996, net sales totaled $10.2 million, 36 percent higher than net sales of $7.5
million recorded during 1995, and the Company recorded a pre-tax loss of $1.9 million, or $.20 per share. Taking
into account the income tax benefit of $1.7 million recorded in the fourth quarter, the company's net loss for the year
was $245,000, or $.02 per share. This compares to net income of $268,000, or $.03 per share, for the year ended
December 31, 1995.
The revenue growth for the 1996 fourth quarter and fiscal year ended December 31, 1996, resulted from increased
sales of the BAK Interbody Fusion System in the United States. As previously announced, the company received
approval on September 20, 1996, from the U. S. Food and Drug Administration to market the BAK Interbody Fusion
System in the United States. David Stassen, Spine-Tech president and chief executive officer, stated "We are
encouraged by the results of our first quarter of commercial sales in the United States. We continue to be very pleased
with the high level of surgeon interest in training on the BAK Interbody Fusion System, and the number of surgeons
who have begun incorporating the BAK into their standard practices."
Since receiving approval to market the BAK Interbody Fusion System, the company has trained approximately 750
surgeons on use of the BAK. The company continues to believe that surgeon training and support are key components
to successful introduction of the BAK. Training is conducted at the company's Education Center in Minneapolis and at
regional sites across the nation. In the United States, the company markets its products through a network of direct
sales representatives and independent agents.
The company incurred and continues to incur significant expenses associated with surgeon training and support. The
company is committed to providing the highest level of training and support so surgeons have positive experiences as
they begin utilizing the BAK Interbody Fusion System.
Spine-Tech designs, develops, manufactures and markets spinal implants and instruments for the surgical treatment of
degenerative disc disease and other spinal conditions.
SPINE-TECH, INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
(unaudited) (unaudited) (unaudited) (audited)
Net sales $5,682 $2,173 $10,153 $7,517
Cost of goods sold 1,247 569 2,849 2,304
Gross profit $4,434 $1,604 $7,304 $5,213
Operating expenses:
Selling, general and
administrative 3,577 1,252 8,679 4,050
Research and
development 549 487 1,777 1,781
Total operating expenses 4,126 1,739 10,456 5,832
Operating income (loss) 308 (135) (3,152) (619)
Interest income 152 441 1,223 897
Net income (loss)
before tax $460 $306 ($1,929) $278
Provision for inc. tax (1,684) $10 (1,684) 10
Net income (loss) $2,144 $296 ($245) $268
Per common share $.19 $.03 ($.02) $.03
SPINE-TECH, INC.
BALANCE SHEET SUMMARY
(Amounts in thousands)
December 31, 1996
Assets
(unaudited)
Current assets
Cash and cash equivalents $1,724
Short-term investments 9,674
Receivables 3,372
Inventory 6,983
Deferred tax asset 2,155
Prepaid assets 146
Total current assets $24,055
Non-current assets:
Land/building/equipment $6,469
Investments 3,535
Total non-current assets 10,004
Total assets $34,059
Liabilities and Shareholders' Equity
Current liabilities:
Total short term payables $567
Other current liabilities 845
Total current liabilities 1,412
Total liabilities 1,412
Total shareholders' equity 32,647
$34,059
SOURCE Spine-Tech, Inc. |
