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8-K - FORM 8-K - WRIGHT MEDICAL GROUP INC | form8-kq32011pressrelease.htm |
FOR RELEASE 3:00 P.M. CENTRAL | |
November 1, 2011 | |
Contact: Julie Tracy | |
Sr. Vice President, Chief Communications Officer Wright Medical Group, Inc. (901) 290-5817 julie.tracy@wmt.com |
Wright Medical Group, Inc. Reports 2011 Third Quarter Results and Provides Outlook for Remainder of Year
Third Quarter Adjusted EPS Increases 5% to $0.20
ARLINGTON, TN - November 1, 2011 - Wright Medical Group, Inc. (NASDAQ: WMGI), a global orthopaedic medical device company and a leading provider of surgical solutions for the foot and ankle market, today reported financial results for its third quarter ended September 30, 2011 and provided financial guidance for 2011.
Net sales totaled $118.2 million during the third quarter ended September 30, 2011, representing a 3% decrease over net sales of $121.7 million during the third quarter of 2010. Excluding the impact of foreign currency, net sales decreased 6% in the third quarter of 2011, as compared to the same period last year. During the third quarter of 2011, U.S. sales were negatively affected by distributor transitions and challenges associated with implementing enhancements to the Company's compliance processes. As anticipated, these challenges have resulted in a slowdown in medical education and research and development projects. Additionally, net sales results continue to be affected by procedure softness across all product lines.
Net loss for the third quarter of 2011 totaled $16.0 million or $0.42 per diluted share, compared to net income of $4.7 million or $0.12 per diluted share in the third quarter of 2010.
Net loss for the third quarter of 2011 included the after-tax effects of $14.0 million of charges associated with the previously announced cost restructuring plan, an approximately $13.2 million charge for management's estimate of the Company's total liability for claims associated with previous and estimated future fractures of its titanium PROFEMUR® long modular necks in North America, $5.0 million of expenses associated with the Company's deferred prosecution agreement (DPA), $2.2 million of non-cash stock-based compensation expense, and $2.0 million of expenses related to settlement of certain employment matters and the hiring of a new chief executive officer (CEO). Net income for the third quarter of 2010 included the after-tax effects of approximately $3.1 million of non-cash stock-based compensation expense, $942,000 of expenses related to the U.S. governmental inquiry, and $134,000 of restructuring charges.
The Company's third quarter net income, as adjusted, increased 7% to $7.7 million in 2011 from $7.3 million in 2010, while diluted earnings per share, as adjusted, increased 5% to $0.20 in the third quarter of 2011 from $0.19 in the third quarter of 2010. A reconciliation of U.S. GAAP to “as adjusted” results is included in the attached financial tables.
Robert Palmisano, President and CEO, commented, “We are clearly facing some challenges, which are reflected in our third quarter results and our outlook for the remainder of the year. However, Wright Medical is a company with great promise. We have excellent products and technologies across our orthopaedic businesses, and we are the recognized leader in the foot and ankle market. In addition, we have recently taken many positive steps to better position the Company for success, including strengthening our compliance
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program and implementing a plan to reduce operational costs. My top priorities will be to continue building on this progress and focusing on areas where we can win, including growing our foot and ankle business above market rates, running a much more focused and efficient recon business, and improving our balance sheet to increase cash generation. I believe these initiatives will in turn drive growth and shareholder value.”
Palmisano continued, “In resetting our guidance, we took into account the factors that are expected to affect our business for the remainder of the year, including procedure softness globally, as well as challenges associated with implementing enhancements to our compliance processes and distributor transitions. I am confident that we will be able to capitalize on the market opportunities and work towards building a leading global orthopaedic organization.”
Outlook
The Company is updating its 2011 net sales outlook to $505 million to $509 million, representing annualized growth expectations of -3% to -2% as compared to 2010. The Company is also adjusting its 2011 as-adjusted earnings per share outlook to a target range for the full year 2011 of $0.80 to $0.84 per diluted share. The Company's current outlook for adjusted earnings per share represents annualized growth expectations of -11% to -7%.
The Company's earnings target excludes the transaction costs and non-cash deferred financing fees associated with the Convertible Notes tendered, costs associated with the previously announced cost restructuring, expenses associated with settlements of certain employment matters and the hiring of a new CEO, charges associated with the Company's liability for PROFEMUR® long modular neck claims, possible future acquisitions, other material future business developments, non-cash stock-based compensation expense, and costs associated with the Company's DPA (including the associated independent monitor).
While the amount of the non-cash stock-based compensation charges will vary depending upon a number of factors, the Company currently estimates that the after-tax impact of those expenses will be approximately $0.17 per diluted share for the full year 2011. Therefore, the Company anticipates full year 2011 as-adjusted earnings per share including stock-based compensation to be in the range of $0.63 to $0.67 per diluted share, which represents annualized growth of -10% to -4%.
With regard to restructuring charges, the Company continues to anticipate incurring pre-tax restructuring charges related to the cost restructuring plan announced in September 2011 to range from $25 million to $30 million, of which $14.0 million of these charges have been incurred to date. The Company expects to record the majority of these charges by the end of 2011, with some additional charges to be recorded during the first half of 2012.
The Company's anticipated ranges for net sales, adjusted earnings per share, non-cash stock-based compensation charges, and restructuring charges are forward-looking statements. They are subject to various risks and uncertainties that could cause the Company's actual results to differ materially from the anticipated targets. The anticipated targets are not predictions of the Company's actual performance. See the cautionary information about forward-looking statements in the “Safe-Harbor Statement” section of this press release.
Conference Call
As previously announced, the Company will host a conference call starting at 3:30 p.m. (Central Time) today. The live dial-in number for the call is 866-788-0540 (domestic) or 857-350-1678 (international). The participant passcode for the call is “Wright.” To access a simultaneous webcast of the conference call via the
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internet, go to the “Corporate - Investor Information” section of the Company's website located at www.wmt.com. A replay of the conference call by telephone will be available starting at 6:30 p.m. (Central Time) today and continuing until November 8, 2011. To hear this replay, dial 888-286-8010 (domestic) or 617-801-6888 (international) and enter the passcode 19646025. A replay of the conference call will also be available via the internet starting today and continuing for at least 12 months. To access a replay of the conference call via the internet, go to the “Corporate - Investor Information - Audio Archives” section of the Company's website located at www.wmt.com.
The conference call may include a discussion of non-GAAP financial measures. Reference is made to the most directly comparable GAAP financial measures, the reconciliation of the differences between the two financial measures, and the other information included in this press release, the Form 8-K filed with the SEC today, or otherwise available in the “Corporate - Investor Information - Supplemental Financial Information” section of the Company's website located at www.wmt.com.
The conference call may include forward-looking statements. See the cautionary information about forward-looking statements in the “Safe-Harbor Statement” section of this press release.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures, such as net sales, excluding the impact of foreign currency; operating income, as adjusted; net income, as adjusted; net income, as adjusted, per diluted share; effective tax rate, as adjusted; and free cash flow. The Company's management believes that the presentation of these measures provides useful information to investors. These measures may assist investors in evaluating the Company's operations, period over period. The measures exclude such items as costs related to the U.S. governmental inquiries and the DPA, restructuring charges, transaction costs, charges associated with the Company's liability for PROFEMUR® long modular neck claims, costs related to settlement of certain employment matters and the hiring of a new CEO, and non-cash stock-based expense, all of which may be highly variable, difficult to predict and of a size that could have substantial impact on the Company's reported results of operations for a period. Management uses these measures internally for evaluation of the performance of the business, including the allocation of resources and the evaluation of results relative to employee performance compensation targets. Investors should consider these non-GAAP measures only as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” as defined under U.S. federal securities laws, including statements regarding potential actions by the USAO, independent monitor, OIG and other agencies or their potential impact. These statements reflect management's current knowledge, assumptions, beliefs, estimates, and expectations and express management's current views of future performance, results, and trends and may be identified by their use of terms such as anticipate, believe, could, estimate, expect, intend, may, plan, predict, project, will, and other similar terms. Forward-looking statements are subject to a number of risks and uncertainties that could cause our actual results to materially differ from those described in the forward-looking statements. The reader should not place undue reliance on forward-looking statements. Such statements are made as of the date of this press release, and we undertake no obligation to update such statements after this date. Risks and uncertainties that could cause our actual results to materially differ from those described in forward-looking statements include those discussed in our filings with the Securities and Exchange Commission (including those described in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2010, and our
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subsequently filed quarterly reports, under the heading “Risk Factors” and elsewhere); future actions of the FDA or any other regulatory body or government authority that could delay, limit or suspend product development, manufacturing or sale or result in seizures, injunctions, monetary sanctions or criminal or civil liabilities; the impact of any such future actions of the FDA or any other regulatory body or government authority on our settlement of the federal investigation into our consulting arrangements with orthopaedic surgeons relating to our hip and knee products in the United States; and the impact of such settlement of the federal investigation into our consulting arrangements with orthopaedic surgeons relating to our hip and knee products in the United States, including our compliance with the Deferred Prosecution Agreement through September 2012 and the Corporate Integrity Agreement through September 2015. Our failure to comply with the Deferred Prosecution Agreement or the Corporate Integrity Agreement could expose us to significant liability including, but not limited to, exclusion from federal healthcare program participation, including Medicaid and Medicare, which would have a material adverse effect on our financial condition, results of operations and cash flows, potential prosecution, including under the previously-filed criminal complaint, civil and criminal fines or penalties, and additional litigation cost and expense. In addition, a breach of the DPA or the CIA could result in an event of default under the Senior Credit Facility, which in turn could result in an event of default under the Indenture.
Additional risks and uncertainties that could cause our actual results to materially differ from those described in forward-looking statements include the possibility of litigation brought by shareholders, including private securities litigation and shareholder derivative suits, which if initiated, could divert management's attention, harm our business and/or reputation and result in significant liabilities; demand for and market acceptance of our new and existing products; future actions of governmental authorities and other third parties; tax measures; business development and growth opportunities; product quality or patient safety issues; products liability claims; enforcement of our intellectual property rights; the geographic and product mix impact on our sales; retention of sales representatives and independent distributors; inventory reductions or fluctuations in buying patterns by wholesalers or distributors; ability to realize the anticipated benefits of restructuring initiatives; impact of the commercial and credit environment on us and our customers and suppliers; and in the implementation of our new compliance enhancements, including the duration and severity of delays related to medical education, research and development and clinical studies, and the impact of any such delays on our relationships with customers.
Wright Medical Group, Inc. is a global orthopaedic medical device company and a leading provider of surgical solutions for the foot and ankle market. The Company specializes in the design, manufacture and marketing of devices and biologic products for extremity, hip and knee repair and reconstruction. The Company has been in business for more than 60 years and markets its products in over 60 countries worldwide. For more information about Wright Medical, visit the Company's website at www.wmt.com.
--Tables Follow--
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Wright Medical Group, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data--unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2011 | September 30, 2010 | September 30, 2011 | September 30, 2010 | ||||||||||||
Net sales | $ | 118,184 | $ | 121,708 | $ | 386,075 | $ | 380,686 | |||||||
Cost of sales | 36,185 | 37,989 | 116,457 | 118,064 | |||||||||||
Cost of sales - restructuring | 1,900 | — | 1,900 | — | |||||||||||
Gross profit | 80,099 | 83,719 | 267,718 | 262,622 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 83,581 | 64,877 | 229,227 | 209,089 | |||||||||||
Research and development | 6,769 | 8,779 | 23,783 | 28,398 | |||||||||||
Amortization of intangible assets | 721 | 708 | 2,088 | 1,991 | |||||||||||
Restructuring charges | 12,132 | 134 | 12,132 | 1,139 | |||||||||||
Total operating expenses | 103,203 | 74,498 | 267,230 | 240,617 | |||||||||||
Operating (loss) income | (23,104 | ) | 9,221 | 488 | 22,005 | ||||||||||
Interest expense, net | 1,464 | 1,532 | 4,774 | 4,550 | |||||||||||
Other expense, net | 59 | 313 | 4,775 | 270 | |||||||||||
(Loss) income before income taxes | (24,627 | ) | 7,376 | (9,061 | ) | 17,185 | |||||||||
(Benefit) provision for income taxes | (8,582 | ) | 2,726 | (2,755 | ) | 8,213 | |||||||||
Net (loss) income | $ | (16,045 | ) | $ | 4,650 | $ | (6,306 | ) | $ | 8,972 | |||||
Net (loss) income per share, basic | $ | (0.42 | ) | $ | 0.12 | $ | (0.16 | ) | $ | 0.24 | |||||
Net (loss) income per share, diluted | $ | (0.42 | ) | $ | 0.12 | $ | (0.16 | ) | $ | 0.24 | |||||
Weighted-average number of shares outstanding-basic | 38,406 | 37,935 | 38,228 | 37,748 | |||||||||||
Weighted-average number of shares outstanding-diluted | 38,406 | 38,011 | 38,228 | 37,923 |
Wright Medical Group, Inc.
Consolidated Sales Analysis
(dollars in thousands--unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2011 | September 30, 2010 | % change | September 30, 2011 | September 30, 2010 | % change | ||||||||||||||||
Geographic | |||||||||||||||||||||
Domestic | $ | 69,382 | $ | 74,594 | (7.0 | %) | $ | 222,678 | $ | 228,803 | (2.7 | %) | |||||||||
International | 48,802 | 47,114 | 3.6 | % | 163,397 | 151,883 | 7.6 | % | |||||||||||||
Total net sales | $ | 118,184 | $ | 121,708 | (2.9 | %) | $ | 386,075 | $ | 380,686 | 1.4 | % | |||||||||
Product Line | |||||||||||||||||||||
Hip products | $ | 39,045 | $ | 39,956 | (2.3 | %) | $ | 130,486 | 130,418 | 0.1 | % | ||||||||||
Knee products | 27,204 | 29,549 | (7.9 | %) | 93,429 | 93,742 | (0.3 | %) | |||||||||||||
Extremity products | 32,373 | 30,125 | 7.5 | % | 99,399 | 89,738 | 10.8 | % | |||||||||||||
Biologics products | 16,610 | 19,666 | (15.5 | %) | 53,846 | 59,296 | (9.2 | %) | |||||||||||||
Other | 2,952 | 2,412 | 22.4 | % | 8,915 | 7,492 | 19.0 | % | |||||||||||||
Total net sales | $ | 118,184 | $ | 121,708 | (2.9 | %) | $ | 386,075 | $ | 380,686 | 1.4 | % |
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Wright Medical Group, Inc.
Supplemental Sales Information
(unaudited)
Third Quarter 2011 Sales Growth | |||||
Domestic As Reported | Int'l Constant Currency | Int'l As Reported | Total Constant Currency | Total As Reported | |
Hips | (14%) | (2%) | 6% | (7%) | (2%) |
Knees | (7%) | (13%) | (9%) | (10%) | (8%) |
Extremities | 5% | 9% | 18% | 6% | 7% |
Biologics | (20%) | 4% | 8% | (16%) | (16%) |
Total | (7%) | (3%) | 4% | (6%) | (3%) |
Sales as a % of Total Sales | |||||||
Three Months Ended September 30, 2011 | Nine Months Ended September 30, 2011 | ||||||
Domestic | International | Total | Domestic | International | Total | ||
Hips | 12% | 21% | 33% | 12% | 22% | 34% | |
Knees | 13% | 10% | 23% | 13% | 11% | 24% | |
Extremities | 22% | 6% | 27% | 20% | 5% | 26% | |
Biologics | 11% | 3% | 14% | 11% | 3% | 14% | |
Total | 59% | 41% | 100% | 58% | 42% | 100% |
Wright Medical Group, Inc.
Reconciliation of Net Sales to Net Sales Excluding the Impact of Foreign Currency
(dollars in thousands--unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2011 | September 30, 2011 | ||||||||||||||
International Net Sales | Total Net Sales | International Net Sales | Total Net Sales | ||||||||||||
Net sales, as reported | $ | 48,802 | $ | 118,184 | $ | 163,397 | $ | 386,075 | |||||||
Currency impact as compared to prior period | (3,189 | ) | (3,189 | ) | (9,755 | ) | (9,755 | ) | |||||||
Net sales, excluding the impact of foreign currency | $ | 45,613 | $ | 114,995 | $ | 153,642 | $ | 376,320 |
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Wright Medical Group, Inc.
Reconciliation of As Reported Results to Non-GAAP Financial Measures
(in thousands, except per share data--unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2011 | September 30, 2010 | September 30, 2011 | September 30, 2010 | ||||||||||||
Operating Income | |||||||||||||||
Operating income, as reported | $ | (23,104 | ) | $ | 9,221 | $ | 488 | $ | 22,005 | ||||||
Reconciling items impacting Gross Profit: | |||||||||||||||
Non-cash, stock-based compensation | 356 | 314 | 1,063 | 980 | |||||||||||
Cost of sales - restructuring | 1,900 | — | 1,900 | — | |||||||||||
Employment matters (1) | 99 | — | 99 | — | |||||||||||
Total | 2,355 | 314 | 3,062 | 980 | |||||||||||
Reconciling items impacting Selling, General and Administrative expenses: | |||||||||||||||
Non-cash, stock-based compensation | 1,715 | 2,261 | 5,083 | 7,700 | |||||||||||
U.S. governmental inquiries/DPA related | 4,974 | 942 | 9,541 | 9,619 | |||||||||||
Employment matters (1) | 1,783 | — | 1,783 | — | |||||||||||
Product liability provision | 13,199 | — | 13,199 | — | |||||||||||
Total | 21,671 | 3,203 | 29,606 | 17,319 | |||||||||||
Reconciling items impacting Research and Development expenses: | |||||||||||||||
Non-cash, stock-based compensation | 150 | 492 | 542 | 1,500 | |||||||||||
Employment matters (1) | 135 | — | 135 | — | |||||||||||
Total | 285 | 492 | 677 | 1,500 | |||||||||||
Other Reconciling Items: | |||||||||||||||
Restructuring charges | 12,132 | 134 | 12,132 | 1,139 | |||||||||||
Operating income, as adjusted | $ | 13,339 | $ | 13,364 | $ | 45,965 | $ | 42,943 | |||||||
Operating income, as adjusted, as a percentage of net sales | 11.3 | % | 11.0 | % | 11.9 | % | 11.3 | % |
_______________________________
(1) Costs associated with settlement of certain employment matters and the hiring of a new CEO.
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Wright Medical Group, Inc.
Reconciliation of As Reported Results to Non-GAAP Financial Measures
(in thousands, except per share data--unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2011 | September 30, 2010 | September 30, 2011 | September 30, 2010 | ||||||||||||
Net Income | |||||||||||||||
Income before taxes, as reported | $ | (24,627 | ) | $ | 7,376 | $ | (9,061 | ) | $ | 17,185 | |||||
Pre-tax impact of reconciling items: | |||||||||||||||
Non-cash, stock-based compensation | 2,221 | 3,067 | 6,688 | 10,180 | |||||||||||
U.S. governmental inquiries/DPA related | 4,974 | 942 | 9,541 | 9,619 | |||||||||||
Deferred financing fees and transaction costs associated with Convertible Notes Tender Offer | — | — | 4,099 | — | |||||||||||
Restructuring charges | 14,032 | 134 | 14,032 | 1,139 | |||||||||||
Employment matters (1) | 2,017 | — | 2,017 | — | |||||||||||
Product liability provision | 13,199 | — | 13,199 | — | |||||||||||
Income before taxes, as adjusted | 11,816 | 11,519 | 40,515 | 38,123 | |||||||||||
Provision for income taxes, as reported | (8,582 | ) | 2,726 | (2,755 | ) | 8,213 | |||||||||
Non-cash, stock-based compensation | 744 | 1,116 | 2,093 | 3,266 | |||||||||||
U.S. governmental inquiries/DPA related | 1,873 | 369 | 3,371 | 2,185 | |||||||||||
Deferred financing fees and transaction costs associated with Convertible Notes Tender Offer | — | — | 1,599 | — | |||||||||||
Restructuring charges | 4,574 | 52 | 4,574 | 443 | |||||||||||
Employment matters (1) | 720 | — | 720 | — | |||||||||||
Product liability provision | 4,740 | — | 4,740 | — | |||||||||||
Provision for income taxes, as adjusted | $ | 4,069 | $ | 4,263 | $ | 14,342 | $ | 14,107 | |||||||
Effective tax rate, as adjusted | 34.4 | % | 37.0 | % | 35.4 | % | 37.0 | % | |||||||
Net income, as adjusted | $ | 7,747 | $ | 7,256 | $ | 26,173 | $ | 24,016 |
_______________________________
(1) Costs associated with settlement of certain employment matters and the hiring of a new CEO.
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Wright Medical Group, Inc.
Reconciliation of As Reported Results to Non-GAAP Financial Measures
(continued)
Three Months Ended | Three Months Ended | ||||||||||||||
September 30, 2011 | September 30, 2010 | ||||||||||||||
As Reported | As Adjusted | As Reported | As Adjusted | ||||||||||||
Basic net income | $ | (16,045 | ) | $ | 7,747 | $ | 4,650 | $ | 7,256 | ||||||
Interest expense on convertible notes | N/A | 137 | N/A | 935 | |||||||||||
Diluted net income | $ | (16,045 | ) | $ | 7,884 | $ | 4,650 | $ | 8,191 | ||||||
Basic shares | 38,406 | 38,406 | 37,935 | 37,935 | |||||||||||
Dilutive effect of stock options and restricted shares | — | 130 | 76 | 76 | |||||||||||
Dilutive effect of convertible notes | N/A | 891 | N/A | 6,126 | |||||||||||
Diluted shares | 38,406 | 39,427 | 38,011 | 44,137 | |||||||||||
Net income per share, diluted | $ | (0.42 | ) | $ | 0.20 | $ | 0.12 | $ | 0.19 |
Nine Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2011 | September 30, 2010 | ||||||||||||||
As Reported | As Adjusted | As Reported | As Adjusted | ||||||||||||
Basic net income | $ | (6,306 | ) | $ | 26,173 | $ | 8,972 | $ | 24,016 | ||||||
Interest expense on convertible notes | N/A | 1,066 | N/A | 2,805 | |||||||||||
Diluted net income | $ | (6,306 | ) | $ | 27,239 | $ | 8,972 | $ | 26,821 | ||||||
Basic shares | 38,228 | 38,228 | 37,748 | 37,748 | |||||||||||
Dilutive effect of stock options and restricted shares | — | 149 | 175 | 175 | |||||||||||
Dilutive effect of convertible notes | N/A | 2,249 | N/A | 6,126 | |||||||||||
Diluted shares | 38,228 | 40,626 | 37,923 | 44,049 | |||||||||||
Net income per share, diluted | $ | (0.16 | ) | $ | 0.67 | $ | 0.24 | $ | 0.61 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2011 | September 30, 2010 | September 30, 2011 | September 30, 2010 | ||||||||||||
Net Income per Diluted Share | |||||||||||||||
Net (loss) income, as reported, per diluted share | $ | (0.42 | ) | $ | 0.12 | $ | (0.16 | ) | $ | 0.24 | |||||
Interest expense on convertible notes | 0.00 | 0.02 | 0.03 | 0.06 | |||||||||||
Effect of convertible notes on diluted shares | 0.01 | (0.02 | ) | 0.01 | (0.03 | ) | |||||||||
Non-cash, stock-based compensation | 0.04 | 0.05 | 0.11 | 0.16 | |||||||||||
Restructuring charges | 0.24 | 0.00 | 0.23 | 0.02 | |||||||||||
Deferred financing fees and transaction costs associated with Convertible Notes Tender Offer | — | — | 0.06 | — | |||||||||||
U.S. governmental inquiries/DPA related | 0.08 | 0.01 | 0.15 | 0.17 | |||||||||||
Employment matters (1) | 0.03 | — | 0.03 | — | |||||||||||
Product liability | 0.22 | — | 0.21 | — | |||||||||||
Net income, as adjusted, per diluted share | $ | 0.20 | $ | 0.19 | $ | 0.67 | $ | 0.61 |
_______________________________
(1) Costs associated with settlement of certain employment matters and the hiring of a new CEO.
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Wright Medical Group, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands--unaudited)
September 30, 2011 | December 31, 2010 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 156,141 | $ | 153,261 | |||
Marketable securities | 15,740 | 19,152 | |||||
Accounts receivable, net | 97,328 | 105,336 | |||||
Inventories | 171,690 | 166,339 | |||||
Prepaid expenses and other current assets | 62,069 | 53,502 | |||||
Total current assets | 502,968 | 497,590 | |||||
Property, plant and equipment, net | 163,361 | 158,247 | |||||
Goodwill and intangible assets, net | 70,256 | 70,673 | |||||
Marketable securities | 6,989 | 17,193 | |||||
Other assets | 9,994 | 11,536 | |||||
Total assets | $ | 753,568 | $ | 755,239 | |||
Liabilities and stockholders' equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 17,001 | $ | 15,862 | |||
Accrued expenses and other current liabilities | 65,027 | 54,409 | |||||
Current portion of long-term obligations | 8,550 | 1,033 | |||||
Total current liabilities | 90,578 | 71,304 | |||||
Long-term obligations | 168,975 | 201,766 | |||||
Other liabilities | 25,326 | 11,197 | |||||
Total liabilities | 284,879 | 284,267 | |||||
Stockholders' equity | 468,689 | 470,972 | |||||
Total liabilities and stockholders' equity | $ | 753,568 | $ | 755,239 |
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