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INSERTING and REPLACING Tornier Reports First Quarter 2011 Financial Results

^{Published on 2011-05-09 18:00:40 - Market Wire}
 

AMSTERDAM--([ BUSINESS WIRE ])--Insert "Consolidated Statements of Operations" table before "Condensed Consolidated Balance Sheets" table previously omitted by Business Wire.

The corrected release reads:

TORNIER REPORTS FIRST QUARTER 2011 FINANCIAL RESULTS

Sales Growth of 12% Drives Adjusted EBITDA Increase of 94%

Company Raises Guidance for 2011 Sales and Adjusted EBITDA

Tornier N.V. (NASDAQ: TRNX), a global medical device company focused on providing surgical solutions to orthopaedic extremity specialists, reported sales of $69.4 million for the first quarter of 2011 compared to sales of $61.8 million in first quarter 2010, an increase of 12%. First quarter 2011 sales of Torniera™s extremity product categories increased 14% to $52.6 million, representing 76% of company sales. Torniera™s U.S. and international businesses each contributed to first quarter sales growth, as did each of the Companya™s major product categories. As compared to the first quarter of 2010, Torniera™s 12% sales growth in the first quarter of 2011 was achieved with four fewer selling days and with negligible effect from changes in currency exchange rates.

Douglas W. Kohrs, President and Chief Executive Officer of Tornier, commented, aWe are pleased to have started the 2011 year with a sales gain that exceeded our expectations. Our strong first quarter sales gain was led by our upper extremity product category. The enthusiastic market penetration driven by our new ASCENDa" shoulder arthroplasty system complemented a strong quarter across our shoulder portfolio. We also are encouraged by the prospects for several new products in our lower extremity and sports medicine/biologics categories that bode well for our full year 2011.a

The Companya™s first quarter 2011 adjusted EBITDA, as defined in the GAAP to non-GAAP reconciliation provided later in this release, was $9.1 million or 13.2% of sales, an increase of 94% compared to $4.7 million, or 7.6% of sales, in the first quarter of 2010.

Mr. Kohrs continued, aWe are encouraged by the gain in adjusted EBITDA in the first quarter of 2011. Although we plan to increase R&D spending during the balance of the year to support our commitment to innovation, we remain focused on obtaining leverage from our cost structure. The investments we will continue to make in 2011 will support our commitment to product innovation while simultaneously focusing on leveraging our business model.a

Sales and Product Review

First quarter 2011 sales of Torniera™s extremity products increased by 14% to $52.6 million. The upper extremity product category was Torniera™s fastest growing category in the quarter with growth of 15% benefitting from strong demand for its new ASCENDa" shoulder arthroplasty system and the continued growth of its flagship Aequalis® line of shoulder arthroplasty systems. Although Torniera™s lower extremity and sports medicine and biologics product categories recorded sales growth below the overall corporate rate in the first quarter of 2011, the growth in these categories is expected to increase during the balance of 2011. The lower extremity product category will benefit from the expanded instrument set availability for key products such as the Stabilisa" ankle fusion system. Torniera™s sports medicine and biologics product category is expected to benefit from new product contribution including the recently launched BioFiber® surgical mesh. Torniera™s large joint product category continued to record above market growth in the first quarter of 2011 aided by the continued favorable reception to the Companya™s total hip arthroplasty systems.

On a geographic basis, Torniera™s first quarter 2011 sales in the United States increased by 10% and represented 53% of global sales. International sales increased 16% in the quarter as reported and 15% in constant currency, representing 47% of global sales.

Outlook

The Company projects 2011 sales in the range of $259 to $266 million, representing growth of 14% to 17% as reported, and 12% to 15% in constant currency. The Company projects 2011 adjusted EBITDA, as described in the GAAP to non-GAAP reconciliation provided later in this release, of $29 to $32 million or 11% to 12% of total sales. This would represent an increase in adjusted EBITDA of 56% to 72% over the adjusted EBITDA reported for 2010.

For the second quarter of 2011, the Company projects sales in the range of $65 to $66 million, representing growth of 19% to 21%, based on recent currency exchange rates, and 13% to 15% in constant currency. The Company projects adjusted EBITDA for the second quarter of 2011 of $5.5 to $6.5 million, representing 8.5% to 10% of sales.

Earnings Call Information

Tornier will host a conference call today at 5:00 p.m. eastern time to discuss its first quarter 2011 financial results. The conference call will be available to interested parties through a live audio webcast available through the Companya™s website at [ www.tornier.com ] where it will be available for replay beginning two hours after completion of the call and archived and accessible for approximately 12 months. Those without internet access may join the call from within the U.S. by dialing 877-673-5355; outside the U.S., dial +1-760-666-3805

Forward-Looking Statements

Statements contained in this release that relate to future, not past, events are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations of future events and often can be identified by words such as aexpect,a ashould,a aproject,a aanticipate,a aintend,a awill,a amay,a abelieve,a acould,a awould,a acontinue,a aoutlook,a aguidance,a other words of similar meaning or the use of future dates. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Uncertainties and risks may cause Torniera™s actual results to be materially different than those expressed in or implied by Torniera™s forward-looking statements. For Tornier, such uncertainties and risks include, among others, Torniera™s future operating results and financial performance, fluctuations in foreign currency exchange rates, the effect of global economic conditions, the timing of regulatory approvals and introduction of new products, physician acceptance, endorsement, and use of new products; the effect of regulatory actions, changes in and adoption of reimbursement rates, potential product recalls, competitor activities and the costs and effects of litigation and changes in tax and other legislation. More detailed information on these and other factors that could affect Torniera™s actual results are described in Torniera™s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K. Tornier undertakes no obligation to update its forward-looking statements.

About Tornier

Tornier is a global medical device company focused on serving extremities specialists who treat orthopaedic conditions of the shoulder, elbow, wrist, hand, ankle and foot. The Companya™s broad offering of over 80 product lines includes joint replacement, trauma, sports medicine, and biologic products to treat the extremities, as well as joint replacement products for the hip and knee in certain international markets. Since its founding approximately 70 years ago, Torniera™s aSpecialists Serving Specialistsa philosophy has fostered a tradition of innovation, intense focus on surgeon education, and commitment to advancement of orthopaedic technology stemming from its close collaboration with orthopaedic surgeons and thought leaders throughout the world. For more information regarding Tornier, visit [ www.tornier.com ].

Use of Non-GAAP Financial Measures

To supplement Torniera™s consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), Tornier uses certain non-GAAP financial measures in this release. Reconciliations of the non-GAAP financial measures used in this release to the most comparable U.S. GAAP measures for the respective periods can be found in tables later in this release immediately following the detail of revenue by geography. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for Torniera™s financial results prepared in accordance with GAAP.