Synergetics Reports First Quarter of Fiscal Year 2015 Results
(firmenpresse) - O'FALLON, MO -- (Marketwired) -- 12/10/14 -- Synergetics USA, Inc. (NASDAQ: SURG), a medical device company that designs, manufactures, and markets innovative surgical devices for ophthalmic and neurosurgical applications, today announced results for the first quarter of fiscal year 2015.
Total sales were $16.6 million, an increase of 7.2% year-over-year.
OEM sales increased 12.2% and Ophthalmic sales increased 2.7% year-over-year.
Domestic sales increased 6.3% and International sales increased 10.1% year-over-year.
Disposable product sales increased 5.2% and capital equipment sales increased 27.9%.
GAAP EPS was $0.03 compared to $0.04 in the first quarter last year.
Cash flow from operations increased 242% to $5.2 million, compared to $1.5 million last year.
EBITDA decreased 6.8% to $1.7 million, compared to $1.8 million last year.
On December 10, 2014, the Company announced the acquisition of Sterimedix LTD., a private, manufacturing company incorporated in England and Wales for net cash consideration of $13.5 million. Sterimedix manufactures and supplies cannulas, needles and other disposable products for ophthalmic and aesthetic procedures.
"We were very pleased with our first quarter sales performance. We posted growth in both of our primary businesses and in both the U.S. and in International markets," said David M. Hable, the Company's President and Chief Executive Officer. "The commercialization of our VersaVIT 2.0 system continues to progress well and was a significant contributor to our Ophthalmic growth in the period. Our acquisition of Sterimedix represents progress towards our strategy of identifying strong ophthalmic businesses to enhance our long-term revenue growth and profitability, and we look forward to strong contributions to our fiscal 2015 revenue results and increasing profitability of our International operations as a result of this accretive acquisition."
First quarter of fiscal 2015 sales totaled $16.6 million, an increase of 7.2%, compared to sales of $15.5 million in the first quarter of fiscal 2015. First quarter sales performance was driven primarily by a 12.2% increase in OEM sales and a 2.7% increase in Ophthalmic sales.
Total Domestic sales increased 6.3% to $12.6 million in the first quarter of fiscal 2015, driven by higher OEM sales and other revenues, offset by a modest decline in domestic ophthalmic sales compared to last year. International sales of $4.0 million this quarter increased 10.1% year-over-year primarily due to strong sales growth in emerging markets and growth in International direct markets.
Total Ophthalmic sales increased 2.7% to $8.7 million, compared to $8.5 million in the first quarter of fiscal 2014. Domestic Ophthalmic sales decreased 3.0% primarily due to high single-digit declines in our base ophthalmic business offset, partially, by strong sales of VersaVit™ and procedural kits. International Ophthalmic sales increased 10.3% year-over-year primarily due to strong sales of disposables in emerging markets and growth in sales in International direct markets.
Total OEM sales increased 12.2% to $7.7 million, compared to $6.8 million in the first quarter of fiscal 2014. OEM sales include sales to our marketing partners. The increase in OEM sales benefited primarily from strong sales of generators and tips and tubing to Stryker compared to last year.
Capital equipment sales totaled $1.8 million in the first quarter of fiscal 2015 compared to $1.4 million in the first quarter of fiscal 2014, an increase of 27.9% year-over-year, driven by generator sales to our two major OEM customers. Disposable product sales totaled $14.5 million, an increase of 5.2%, compared to sales of $13.8 million in the first quarter of fiscal 2014.
Gross profit for the first quarter of fiscal 2015 totaled $9.3 million, or 55.7% of sales, compared to $8.9 million, or 57.5% of sales, in the first quarter of fiscal 2014. Year-over-year gross margin performance was driven by product mix shift to international sales which had increased to 24.2% of our product mix and sales to our OEM partners in the period.
Total operating expenses increased 7.7% year-over-year to $8.1 million, or 48.7% of sales, in the first quarter of fiscal 2015 from $7.5 million, or 48.5% of sales, in the comparable 2014 period. Research and development expenses increased 0.2% to $1.2 million, or 7.2% of sales, compared to 7.7% last year. Sales and marketing expenses increased 3.4% to $3.7 million, or 22.2% of sales, compared to 23.0% of sales last year. General and administrative expenses increased 14.9% to $3.0 million, or 18.2% of sales, compared to 17.0% of sales last year. The increase in total operating expenses compared to the prior year was driven by an increase in selling and marketing expenses largely due to investments in VersaVit™ commercialization, an increase in general and administrative expenses largely due to acquisition related expenses and expenses related to the Company's exit of its King of Prussia facility.
Reported operating income for the first quarter of fiscal 2015 declined 16.8% to $1.2 million, compared to $1.4 million last year. Reported net income declined 17.9% year-over-year to $0.8 million, or $0.03 per diluted share, from $0.9 million, or $0.04 per diluted share, for the same period of fiscal 2014.
As of October 31, 2014, the Company had approximately $20.4 million in cash on its balance sheet and no interest-bearing debt compared to $15.4 million in cash and no interest-bearing debt at the end of fiscal 2014. Cash flow from operations for the first quarter increased 242.5% to $5.2 million as compared to $1.5 million in the prior year period.
Synergetics USA, Inc. will host a conference call on Wednesday, December 10, 2014 at 4:00 p.m. Central Time (5:00 p.m. Eastern) to review the Company's results for the fiscal first quarter ended October 31, 2014. The toll free dial-in number to participate live on this call is (800) 588-4973, confirmation code 38592945. For callers outside the U.S., the number is (847) 230-5643. The conference call will also be available live via webcast at . A replay will be available on the Company's website for approximately 30 days.
Through continuous improvement and development of our people, our is to design, manufacture and market innovative surgical devices, capital equipment, accessories and disposables of the highest quality in order to assist and enable surgeons who perform surgery around the world to provide a better quality of life for their patients.
Synergetics USA, Inc. (the "Company") is a leading supplier of precision surgical devices. The Company's primary focus is on the disciplines of ophthalmology and neurosurgery. Our distribution channels include a combination of direct and independent sales distributor organizations, both domestically and internationally, and important strategic alliances with market leaders. The Company's product lines focus on precision engineered, disposable and reusable devices, surgical equipment, procedural kits and the delivery of various energy modalities for the performance of surgery including: (i) laser energy, (ii) ultrasonic energy, (iii) radio frequency energy for electrosurgery and lesion generation and (iv) visible light energy for illumination, and where applicable, simultaneous infusion (irrigation) of fluids into the operative field. The Company's website address is .
The Company measures its performance primarily through its growth in revenue and operating profit. In addition to results reported in accordance with GAAP, the Company provides adjusted operating income and margin, EBITDA and adjusted diluted earnings per share. These adjusted amounts consist of GAAP amounts excluding the adjustment for exit costs occurring during the period. Adjusted earnings per diluted share were calculated by dividing adjusted net income for diluted earnings per share by diluted weighted average shares outstanding. The Company believes that the presentation of adjusted operating income and margin, EBITDA and adjusted diluted earnings per share provides important supplemental information to management and investors seeking to understand the financial and business trends relating to our financial condition and results of operations.
These non-GAAP measures are considered by the Company's Board of Directors and management as a basis for measuring and evaluating the Company's overall operating performance and ability to service debt. They are presented to enhance an understanding of the Company's operating results and are not intended to represent cash flow or results of operations.
These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP. These measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures.
Some statements in this release may be "forward-looking statements" for the purposes of the Private Securities Litigation Reform Act of 1995. In some cases forward-looking statements can be identified by words such as "believe," "expect," "anticipate," "plan," "potential," "continue" or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties are discussed in the Company's Annual Report on Form 10-K for the year ended July 31, 2014 as updated from time to time in our filings with the Securities and Exchange Commission. The Company is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this document by wire services or Internet services.
SYNERGETICS USA, INC.
3845 Corporate Centre Drive
O'Fallon, Missouri 63368
(636) 939-5100
Pamela G. Boone
Chief Financial Officer
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Datum: 10.12.2014 - 21:05 Uhr
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