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8-K - FORM 8-K - DJO Finance LLCd157293d8k.htm

Exhibit 99.1

 

LOGO

DJO Investor/Media Contact:

DJO Global, Inc.

Matt Simons

SVP Business Development and Investor Relations

760.734.5548

matt.simons@DJOglobal.com

FOR IMMEDIATE RELEASE

DJO GLOBAL ANNOUNCES FINANCIAL RESULTS FOR FOURTH QUARTER AND FISCAL YEAR END 2015

Strong Growth in Both Revenue and Adjusted EBITDA, post Empi Closure

SAN DIEGO, CA, March 25, 2016 DJO Global, Inc. (“DJO” or the “Company”), a leading global provider of medical technologies designed to get and keep people moving, today announced financial results for its public reporting subsidiary, DJO Finance LLC (“DJOFL”), for the fourth quarter and fiscal year ended December 31, 2015.

Fourth Quarter Highlights

Net sales grew 6.1% to $308 million (9.4% constant currency)

Adjusted EBITDA increased 3.8% to $68.9 million (11.1% constant currency)

Full Year Highlights

Net sales grew 2.4% to $1.1 billion (6.7% constant currency)

Adjusted EBITDA increased 3.7% to $239.9 million (9.3% constant currency)

“During the fourth quarter of 2015, we completed the wind-down of the Empi business and restated the historical financials to reflect Empi as discontinued operations and are pleased to report a strong quarter and full year performance of the rest of our businesses, which comprise DJO Global going forward.” said Mike Mogul, DJO’s President and Chief Executive Officer. “Full year 2015 revenue growth of 6.7% and leveraged EBITDA growth of 9.3% with accelerated performance in the 4th quarter shows the underlying strength of our businesses. We continue to see terrific performance in Orthopedic Implants and in Consumer products along with strong better than market performance in our core Bracing and International businesses.”

 

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Sales Results

DJOFL achieved net sales for the fourth quarter of 2015 of $308.0 million, reflecting constant currency growth of 9.4%, compared with net sales of $290.2 million for the fourth quarter of 2014. For the twelve months ended December 31, 2015, DJOFL achieved net sales of $1,113.6 million, reflecting constant currency growth of 6.7% compared to net sales of $1,087.5 million for the twelve months ended December 31, 2014. Net sales for the twelve months of 2015 were unfavorably impacted by changes in foreign currency exchange rates aggregating $46.9 million compared to the rates in effect in the twelve months of 2014.

Net sales for DJO’s Bracing and Vascular segment were $143.0 million in the fourth quarter of 2015, reflecting growth of 3.9%, compared to the fourth quarter of 2014. For the full year of 2015, net sales for the Bracing and Vascular segment were $526.3 million and increased 4.3% over the full year of 2014, due to new account acquisition and growth in sales of direct consumer products.

Net sales for DJO’s Recovery Sciences segment were $43.7 million in the fourth quarter of 2015, reflecting an increase of 0.5%, compared to the fourth quarter of 2014. For the full year of 2015, net sales for the Recovery Sciences segment were $156.2 million, a decrease of 0.8% from net sales for the full year of 2014, primarily driven by continued slow market conditions affecting the sale of Chattanooga rehabilitation equipment.

Net sales for DJO’s International segment were $79.1 million in the fourth quarter of 2015. Excluding the impact of changes in foreign currency exchange rates from rates in effect in the prior year period, net sales for the fourth quarter of 2015 increased 8.4% from the fourth quarter of 2014. For the full year of 2015, net sales for the International segment were $296.3 million and increased 5.5% on a constant currency basis over sales for the full year of 2014, primarily driven by stronger sales in direct markets, especially in Germany, France and Spain, and increased sales penetration in emerging markets.

Net sales for the Surgical Implant segment were $42.2 million for the fourth quarter of 2015, reflecting growth of 54.6% over net sales in the fourth quarter of 2014. For the full year of 2015, net sales for the

 

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Surgical Implant segment were $134.8 million and increased 34.7% over 2014, driven by strong sales of each of the Company’s shoulder, knee and hip product lines, as well as contribution from the acquired Biomet assets.

Earnings Results

Adjusted EBITDA for the fourth quarter of 2015 was $68.9 million, or 22.4% of net sales, reflecting 3.8% as reported and 11.1% constant currency growth when compared with Adjusted EBITDA of $66.4 million, or 22.9% of net sales, for the fourth quarter of 2014. Adjusted EBITDA for the twelve months of 2015 was $239.9 million, or 21.5% of net sales, compared to Adjusted EBITDA of $231.3 million, or 21.3% of net sales, for the twelve months of 2014, reflecting 3.7% as reported growth and constant currency growth of 9.3%. Including cost savings programs currently underway of $9.1 million, Adjusted EBITDA for the twelve months ended December 31, 2015 was $249.0 million, or22.4 percent of LTM net sales.

The Company defines Adjusted EBITDA as net (loss) income attributable to DJOFL plus interest expense, net, income tax provision (benefit), and depreciation and amortization, further adjusted for certain non-cash items, non-recurring items and other adjustment items as permitted in calculating covenant compliance under the Company’s new senior secured credit facilities (“New Senior Credit Facilities”) and the indentures governing its 8.125% second lien notes, its 10.75% third lien notes and its 9.75% senior subordinated notes. Reconciliation between net loss and Adjusted EBITDA is included in the attached financial tables.

For the fourth quarter of 2015, DJOFL reported a net loss attributable to DJOFL of $49.6 million, compared to a net loss of $7.4 million for the fourth quarter of 2014. As detailed in the attached financial tables, the results for the current and prior year fourth quarter periods were impacted by significant non-cash items, non-recurring items and other adjustments. For the twelve months of 2015, DJOFL reported a net loss attributable to DJOFL of $340.9 million, compared to a net loss attributable to DJOFL of $90.5 million for the twelve months of 2014. As detailed in the attached financial tables, the results for the current and prior year twelve month periods were impacted by significant non-cash items, non-recurring items and other adjustments.

 

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As of December 31, 2015, the Company had cash balances of $48.9 million and available liquidity of $119.5 million under its $150 million revolving credit facility.

2016 Outlook

We have a very exciting slate of new products for 2016 that we will begin to launch late in the first quarter. We expect these new products and other ongoing commercial initiatives to drive continued top line growth and we are targeting total company full year constant currency revenue growth rates of 6%-8% for the full 2016 year and adjusted EBITDA growth rates of 8%-10%, including future cost reductions for the full 2016 year. Based on year end foreign currency rates, we do not expect sales or EBITDA for the full year of 2016 to be materially impacted.

Conference Call Information

DJO has scheduled a conference call to discuss this announcement beginning at 9:30 am, Eastern Time Monday, March 28, 2016. Individuals interested in listening to the conference call may do so by dialing (866) 394-8509 (International callers please use (706) 643-6833), using the reservation code 22322226. A telephone replay will be available for 48 hours following the conclusion of the call by dialing (855) 859-2056 and using the above reservation code. The live conference call and replay will be available via the Internet at www.DJOglobal.com.

 

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About DJO Global

DJO Global is a leading global provider of medical technologies designed to get and keep people moving. The Company’s products address the continuum of patient care from injury prevention to rehabilitation after surgery, injury or from degenerative disease, enabling people to regain or maintain their natural motion. Its products are used by orthopedic specialists, spine surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers and other healthcare professionals. In addition, many of the Company’s medical devices and related accessories are used by athletes and patients for injury prevention and at-home physical therapy treatment. The Company’s product lines include rigid and soft orthopedic bracing, hot and cold therapy, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators used for pain management and physical therapy products. The Company’s surgical division offers a comprehensive suite of reconstructive joint products for the hip, knee and shoulder. DJO Global’s products are marketed under a portfolio of brands including Aircast®, Chattanooga, CMF™, Compex®, DonJoy®, ProCare®, DJO® Surgical, Dr. Comfort® and ExosTM. For additional information on the Company, please visit www.DJOglobal.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements relate to, among other things, the Company’s expectations for its growth in revenue and Adjusted EBITDA and its opportunities to improve commercial execution and to develop new products and services. The words “believe,” “will,” “should,” “expect,” “target,” “intend,” “estimate” and “anticipate,” variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based on the Company’s current expectations and are subject to a number of risks, uncertainties and assumptions, many of which are beyond the Company’s ability to control or predict. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The important factors that could cause actual operating results to differ significantly from those expressed or implied by such forward-looking statements include, but are not limited to: the successful execution of the Company’s business strategies relative to its Bracing and Vascular, Recovery Sciences, International and Surgical Implant

 

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segments; the continued growth of the markets the Company addresses and any impact on these markets from changes in global economic conditions; the successful execution of the Company’s acquisition strategies; the impact of potential reductions in reimbursement levels and coverage by Medicare and other governmental and commercial payors; the Company’s highly leveraged financial position; the Company’s ability to successfully develop, license or acquire, and timely introduce and market new products or product enhancements; risks relating to the Company’s international operations; resources needed and risks involved in complying with government regulations; and government investigations; the availability and sufficiency of insurance coverage for pending and future product liability claims; and the effects of healthcare reform, Medicare competitive bidding, managed care and buying groups on the prices of the Company’s products. These and other risk factors related to DJO are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015. Many of the factors that will determine the outcome of the subject matter of this press release are beyond the Company’s ability to control or predict.

 

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DJO Finance LLC

Unaudited Condensed Consolidated Statements of Operations

(In thousands)

 

     Three Months ended
December 31,
    Twelve Months ended
December 31,
 
     2015     2014     2015     2014  

Net sales

   $ 307,951      $ 290,182      $ 1,113,627      $ 1,087,529   

Costs and operating expenses:

        

Cost of sales (exclusive of amortization see note 1)

     132,126        120,966        466,019        462,000   

Selling, general and administrative

     125,223        111,970        454,724        439,872   

Research and development

     9,955        9,004        35,105        37,277   

Amortization of intangible assets

     20,076        20,497        79,964        83,944   
     287,380        262,437        1,035,812        1,023,093   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     20,571        27,745        77,815        64,436   

Other (expense) income:

        

Interest expense, net

     (42,733     (43,769     (172,290     (174,325

Loss on modification and extinguishment of debt

     (171     81        (68,473     (938

Other expense, net

     (834     (2,266     (7,303     (5,197
  

 

 

   

 

 

   

 

 

   

 

 

 
     (43,738     (45,954     (248,066     (180,460
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (23,167     (18,209     (170,251     (116,024

Income tax provision (benefit)

     2,276        (178     12,256        (4,720
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss from continuing operations

     (25,443     (18,031     (182,507     (111,304

Net (loss) income from discontinued operations

     (23,909     10,982        (157,580     21,742   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

     (49,352     (7,049     (340,087     (89,562

Net income attributable to noncontrolling interests

     (234     (323     (840     (972
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to DJO Finance LLC

   $ (49,586   $ (7,372   $ (340,927   $ (90,534
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Note 1 — Cost of sales is exclusive of amortization of intangible assets of $7,785 and $30,719 for the three and twelve months ended December 31, 2015 and $8,037 and $32,962 for the three and twelve months ended December 31, 2014, respectively.

 

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DJO Finance LLC

Unaudited Condensed Consolidated Balance Sheets

(In thousands)

 

     December 31,  
     2015     2014  
Assets     

Current assets:

    

Cash and cash equivalents

   $ 48,943      $ 31,144   

Accounts receivable, net

     172,360        169,207   

Inventories, net

     174,573        168,930   

Deferred tax assets, net

     —          24,598   

Prepaid expenses and other current assets

     21,179        16,793   

Current assets of discontinued operations

     2,878        25,642   
  

 

 

   

 

 

 

Total current assets

     419,933        436,314   

Property and equipment, net

     117,273        116,476   

Goodwill

     1,018,104        1,023,890   

Intangible assets, net

     749,045        825,905   

Other assets

     5,174        4,205   

Non current assets of discontinued operations

     29        163,071   
  

 

 

   

 

 

 

Total assets

   $ 2,309,558      $ 2,569,861   
  

 

 

   

 

 

 
Liabilities and Deficit     

Current liabilities:

    

Accounts payable

   $ 58,492      $ 59,245   

Accrued interest

     16,998        29,600   

Current portion of debt obligations

     10,550        8,975   

Other current liabilities

     102,173        94,178   

Current liabilities of discontinued operations

     13,371        8,681   
  

 

 

   

 

 

 

Total current liabilities

     201,584        200,679   

Long-term debt obligations

     2,344,562        2,233,309   

Deferred tax liabilities, net

     213,856        243,123   

Other long-term liabilities

     15,092        14,366   
  

 

 

   

 

 

 

Total liabilities

   $ 2,775,094      $ 2,691,477   
  

 

 

   

 

 

 

Commitments and contingencies

    

Deficit:

    

DJO Finance LLC membership deficit:

    

Member capital

     841,510        839,781   

Accumulated deficit

     (1,293,339     (952,412

Accumulated other comprehensive loss

     (16,341     (11,603
  

 

 

   

 

 

 

Total membership deficit

     (468,170     (124,234

Noncontrolling interests

     2,634        2,618   
  

 

 

   

 

 

 

Total deficit

     (465,536     (121,616
  

 

 

   

 

 

 

Total liabilities and deficit

   $ 2,309,558      $ 2,569,861   
  

 

 

   

 

 

 

 

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DJO Finance LLC

Unaudited Segment Information

(In thousands)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2015     2014     2015     2014  

Net sales:

  

 

Bracing and Vascular

   $ 143,008      $ 137,613      $ 526,295      $ 504,590   

Recovery Sciences

     43,672        43,460        156,194        157,485   

Surgical Implant

     42,195        27,297        134,843        100,139   

International

     79,076        81,812        296,295        325,315   
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 307,951      $ 290,182      $ 1,113,627      $ 1,087,529   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss):

      

Bracing and Vascular

   $ 31,496      $ 31,087      $ 115,791      $ 102,933   

Recovery Sciences

     9,717        9,556        29,035        33,863   

Surgical Implant

     9,000        4,396        25,531        12,712   

International

     11,333        16,295        48,578        62,304   

Expenses not allocated to segments and eliminations

     (40,975     (33,589     (141,120     (147,376
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 20,571      $ 27,745      $ 77,815      $ 64,436   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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DJO Finance LLC

Adjusted EBITDA

For the Three and Twelve Months Ended December 31, 2015 and 2014

(unaudited)

Our New Senior Secured Credit Facilities, consisting of a $1,055.0 million term loan facility (including a $20.0 million delayed draw term loan facility) and a $150.0 million revolving credit facility, under which $30.0 million was outstanding as of December 31, 2015, and the Indentures governing our $1,015.0 million of 8.125% second lien notes, $298.5 million of 10.75% third lien notes, and $1.6 million of 9.75% senior subordinated notes (collectively, the “notes”) represent significant components of our capital structure. Under our New Senior Secured Credit Facilities, we are required to maintain a specified senior secured first lien leverage ratio, which is determined based on our Adjusted EBITDA. If we fail to comply with the senior secured first lien leverage ratio under our New Senior Secured Credit Facilities, we would be in default. Upon the occurrence of an event of default under the New Senior Secured Credit Facilities, the lenders could elect to declare all amounts outstanding under the New Senior Secured Credit Facilities to be immediately due and payable and terminate all commitments to extend further credit. If we were unable to repay those amounts, the lenders under the New Senior Secured Credit Facilities could proceed against the collateral granted to them to secure that indebtedness. We have pledged substantially all of our assets as collateral under the New Senior Secured Credit Facilities. Any acceleration under the New Senior Secured Credit Facilities would also result in a default under the Indentures governing the notes, which could lead to the note holders electing to declare the principal, premium, if any, and interest on the then outstanding notes immediately due and payable. In addition, under the Indentures governing the notes, our and our subsidiaries’ ability to engage in activities such as incurring additional indebtedness, making investments, refinancing subordinated indebtedness, paying dividends and entering into certain merger transactions is governed, in part, by our ability to satisfy tests based on Adjusted EBITDA. Our ability to meet the covenants specified in the New Senior Secured Credit Facilities and the Indebtures governing those notes will depend on future events, some of which are beyond our control, and we cannot assure you that we will meet those covenants.

Adjusted EBITDA is defined as net income (loss) attributable to DJOFL plus interest expense, net, income tax provision (benefit), and depreciation and amortization, further adjusted for certain non-cash items, non-recurring items and other adjustment items as permitted in calculating covenant compliance and other ratios under our New Senior Secured Credit Facilities and the Indentures governing the notes. We believe that the presentation of Adjusted EBITDA is appropriate to provide additional information to investors about the calculation of, and compliance with, certain financial covenants and other ratios in our New Senior Secured Credit Facilities and the Indentures governing the notes. Adjusted EBITDA is a material component of these calculations.

Adjusted EBITDA should not be considered as an alternative to net income (loss) or other performance measures presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), or as an alternative to cash flow from operations as a measure of our liquidity. Adjusted EBITDA does not represent net income (loss) or cash flow from operations as those terms are defined by GAAP and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. In particular, the definition of Adjusted EBITDA under our New Senior Secured Credit Facilities and the Indentures governing the notes allows us to add back certain non-cash, extraordinary, unusual or non-recurring charges that are deducted in calculating net income (loss). However, these are expenses that may recur, vary greatly and are difficult to predict. While Adjusted EBITDA and similar measures are frequently used as measures of operations and the ability to meet debt service requirements, Adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to the potential inconsistencies in the method of calculation.

 

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The following table provides reconciliation between net loss and Adjusted EBITDA:

 

     Three Months Ended
December 31,
     Twelve Months Ended
December 31,
 

(in thousands)

   2015      2014      2015      2014  

Net loss attributable to DJO Finance LLC

   $ (49,586    $ (7,372    $ (340,927    $ (90,534

Net loss (income) from discontinued operations

     23,909         (10,982      157,580         (21,742

Interest expense, net

     42,733         43,769         172,290         174,325   

Income tax provision (benefit)

     2,276         (178      12,256         (4,720

Depreciation and amortization

     32,068         29,742         117,455         119,157   

Non-cash charges (a)

     1,073         (519      3,403         (142

Non-recurring and integration charges (b)

     13,320         7,585         33,976         40,540   

Other adjustment items (c)

     3,072         4,323         83,908         14,386   
  

 

 

    

 

 

    

 

 

    

 

 

 
     68,865         66,368         239,941         231,270   

Permitted pro forma adjustments (d)

           

Future cost savings

     —           —           9,050         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

   $ 68,865       $ 66,368       $ 248,991       $ 231,270   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) Non-cash charges are comprised of the following:

 

     Three Months Ended December 31,      Twelve Months Ended December 31,  

(in thousands)

   2015      2014      2015      2014  

Stock compensation expense

   $ 355       $ 595       $ 1,805       $ 1,869   

Purchase accounting adjustments (1)

     152         (1,482      821         (1,250

Loss (gain) on disposal of assets, net

     566         368         777         (761
  

 

 

    

 

 

    

 

 

    

 

 

 

Total non-cash items

   $ 1,073       $ (519    $ 3,403       $ (142
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Purchase accounting adjustments for the twelve months ended December 31, 2015 consisted of $0.8 million of amortization of fair market value inventory adjustments. Purchase accounting adjustments for the twelve months ended December 31, 2014 consist of $0.2 million of amortization of fair market value inventory adjustments, net of $1.5 million in adjustments to the contingent consideration for Speetec. Purchase accounting adjustments for 2013 consist of $0.9 million of amortization of fair market value inventory adjustments, net of $2.5 million in adjustments to the contingent consideration for Exos.

 

(b) Non-recurring and integration charges are comprised of the following:

 

     Three Months Ended
December 31,
     Twelve Months Ended
December 31,
 

(in thousands)

   2015      2014      2015      2014  

Integration charges:

           

Global business unit reorganization and integration

   $ 1,618       $ 1,272       $ 8,596       $ 9,753   

Acquisition related expenses and integration (1)

     4,653         9         8,635         331   

CFO transition

     —           —           —           227   

Litigation and regulatory costs and settlements, net (2) (3)

     4,974         1,257         8,864         5,752   

Other non-recurring items (4) (5)

     1,079         3,836         4,247         18,610   

ERP implementation and other automation projects

     996         1,211         3,634         5,867   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total non-recurring and integration charges

   $ 13,320       $ 7,585       $ 33,976       $ 40,540   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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(1) Consists of direct acquisition costs and integration expenses related to acquired businesses and costs related to potential acquisitions
(2) For the twelve months ended December 31, 2015, litigation and regulatory costs consisted of $3.5 million in litigation costs related to ongoing product liability issues and $5.4 million related to other litigation and regulatory costs and settlements.
(3) For the twelve months ended December 31, 2014, litigation and regulatory costs consisted of $0.9 million in litigation costs related to ongoing product liability issues related to our discontinued pain pump products and $4.9 million related to other litigation and regulatory costs and settlements.
(4) For the twelve months ended December 31, 2015, other non-recurring items consisted of $4.2 million in specifically identified non-recurring operational and regulatory projects.
(5) For the twelve months ended December 31, 2014, other non-recurring items consisted of $13.7 million in specifically identified non-recurring operational and regulatory projects, $2.2 million in expenses related to our Tunisia factory fire and $2.7 million in professional fees and other non-recurring charges.

 

(c) Other adjustment items before permitted pro forma adjustments are comprised of the following:

 

     Three Months Ended
December 31,
     Twelve Months Ended
December 31,
 

(in thousands)

   2015      2014      2015      2014  

Blackstone monitoring fee

   $ 1,750       $ 1,750       $ 7,000       $ 7,000   

Noncontrolling interests

     234         323         840         972   

Loss on modification and extinguishment of debt (1) (2)

     171         (81      68,473         938   

Other (3)

     917         2,331         7,595         5,476   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total other adjustment items before permitted pro forma adjustments

   $ 3,072       $ 4,323       $ 83,908       $ 14,386   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Loss on modification and extinguishment of debt for the twelve months ending December 31, 2015 consisted of $47.8 million in premiums related to the redemption of our 8.75% Notes, 9.875% Notes and 7.75% Notes, $11.9 million related to the non-cash write off of unamortized debt issuance costs and original issue discount associated with the portion of our debt that was extinguished and $8.8 million of arrangement and amendment fees and other fees and expenses incurred in connection with the refinancing.
(2) Loss on modification and extinguishment of debt for the twelve months ending December 31, 2014 consists of $0.3 million of arrangement and amendment fees and other fees and expenses incurred in connection with the amendment of our senior secured credit facilities and $0.6 million related to the non-cash write off of unamortized debt issuance costs and original issue discount associated with the portion of our original term loans which were extinguished.
(3) Other adjustments consist primarily of net realized and unrealized foreign currency transaction gains and losses.

 

(d) Permitted pro forma adjustments include future cost savings for the year ended December 31, 2015 related to the exit of our Empi business.

 

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