RTI Biologics Announces 2012 Second Quarter Results
Robert Jordheim, 386-418-8888Chief Financial OfficerorWendy Crites Wacker, APR, 386-418-8888Corporate Communications
(RTI) (Nasdaq:RTIX), a leading provider of orthopedic and other biologic implants, reported operating results for the second quarter of 2012 as follows:
“We are pleased with our second quarter results, which exceeded our expectations and were driven primarily by continued growth in our surgical specialties, direct sports medicine and BGS/GO businesses,” said Brian K. Hutchison, president and chief executive officer of RTI.
Worldwide revenues of $45.2 million for the second quarter of 2012 increased 4 percent compared to the second quarter of 2011. Domestic revenues of $39.2 million for the second quarter of 2012 grew by 3 percent compared to the second quarter of 2011, primarily based on the strength of the surgical specialties, direct sports medicine and dental businesses and were offset by unfavorable comparisons in the spine business. International revenues of $6.0 million increased 9 percent compared to the second quarter of 2011 primarily due to higher export revenue in the sports medicine and BGS/GO businesses. On a constant currency basis, international revenues increased 19 percent as compared to the second quarter of 2011.
In 2005, the company was named as a party, along with a number of other recovery and processor defendants, in lawsuits relating to the tissue recovery practices of Biomedical Tissue Services Ltd. (BTS), an unaffiliated recovery agency. During the second quarter of 2012, the company accrued a pre-tax charge of $2.35 million, or $0.03 per fully diluted share, to settle certain cases related to these proceedings.
For the second quarter of 2012, the company reported net income of $1.3 million and net income per fully diluted share of $0.02, based on 56.0 million fully diluted shares outstanding, compared to net income of $2.0 million or $0.04 per fully diluted share for the second quarter of 2011, based on 55.3 million fully diluted shares outstanding. Excluding the litigation settlement charge of $0.03 per fully diluted share, net income per fully diluted share in the second quarter of 2012 was $0.05.
As a result of first half results that exceeded expectations and better visibility into second half trends, the company is raising its full year revenues guidance for 2012. The company now expects full year revenues for 2012 to be between $177 million to $179 million, as compared to prior guidance of $176 million to $178 million. As a result of the litigation settlement charge of $0.03 per fully diluted share taken in the second quarter, full year net income per fully diluted share is now expected to be in the range of $0.14 to $0.15, based on 56.1 million shares outstanding, as compared to prior guidance of $0.16 to $0.17 per fully diluted share.
For the third quarter of 2012, the company expects revenues to be between $44 million and $45 million and net income per fully diluted share to be approximately $0.04.
RTI will host a conference call and simultaneous audio webcast to discuss the second quarter results at 8:00 a.m. ET today. The conference call can be accessed by dialing (877) 383-7419. The webcast can be accessed through the investor section of RTI’s website at . A replay of the conference call will be available on the RTI website following the call.
is a leading provider of sterile for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and bovine tissue for transplantation through extensive and using proprietary processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.
RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. Two such processes – the and the – have a combined record of more than two million implants distributed with zero incidence of allograft-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.
RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management's beliefs and certain assumptions made by our management. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, except for historical information, any statements made in this communication about anticipated financial results, growth rates, new product introductions, future operational improvements and results or regulatory approvals or changes to agreements with distributors also are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the company's SEC filings may be obtained by contacting the company or the SEC or by visiting RTI's website at or the SEC's website at .
To supplement RTI Biologic’s condensed consolidated financial statements presented on a GAAP basis, the company discloses certain non-GAAP financial measures that exclude certain amounts, including non-GAAP net income and non-GAAP net income per fully diluted share. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Reconciliations of each of these non-GAAP financial measures to the corresponding GAAP measures are included in the reconciliation above.
The following is an explanation of the adjustment that management excluded as part of the non-GAAP measures for the three and six month periods ended June 30, 2012 as well as the reasons for excluding the individual item:
Litigation settlement – This adjustment represents a charge and relates to a litigation settlement of certain BTS related lawsuits. Management removes the impact of the litigation settlement charge from the Company’s operating results to assist in assessing its operating performance in the current period and to supplement a comparison to the Company’s past operating performance.
Non-GAAP net income and non-GAAP net income per fully diluted share should not be considered in isolation, or as a replacement for GAAP measures.
The Company believes that presenting non-GAAP net income and non-GAAP net income per fully diluted share in addition to the related GAAP measures provide investors greater transparency to the information used by management in its financial decision-making which excludes the litigation settlement charge. The Company further believes that providing this information better enables RTI Biologic’s investors to understand the Company’s overall core performance and to evaluate the methodology used by management to assess and measure such performance.