Orthofix International N.V., a Texas-based company that produces products used to treat spine and orthopedic conditions, has announced their first quarter financial results for 2013. Net sales were reported as $100.3 million by Orthofix International for the period between January 1 and March 31, 2013, a 14% decrease from the same period last year. The report coincides with an announcement that the firm’s Board of Directors has given the green light to a share repurchase program, which will give Orthofix International the opportunity to buy back $50 million of the firm’s stock starting on May 10, 2013.
Also, as recently reported, Orthofix International has been revamping its leadership as of late with the hirings of Brad Mason as President and CEO and Emily Buxton as their new Chief Financial Officer. According to the Fort Mills Times, the quarterly report from Orthofix International also outlined the following:
Net income from continuing operations was $4.9 million, or $0.25 per diluted share compared to $0.64 per diluted share in the prior year. Adjusted net income from continuing operations was $4.6 million, or $0.23 per diluted share, decreasing 66% from $0.69 per diluted share from the first quarter of the prior year…Net sales were $100.3 million in the first quarter of 2013, down 14% from $116.0 million in the first quarter of the prior year. Foreign currency translation and two less selling days both negatively impacted the first quarter net sales by 0.6% and 3.2%, respectively…Reported net income for the first quarter of 2013 was $4.9 million and net income per diluted share was $0.25. Excluding certain items summarized in the table below, adjusted net income in the first quarter of 2013 was $4.6 million, or $0.23 per diluted share, decreasing 66% from the first quarter of the prior year.
Mr. Mason acknowledged that Orthofix International’s first quarter results were disappointing, however, also indicated his optimism going forward. “The good news is that the primary issues that led to these results are identifiable, within our control, and fixable. We are developing a strategy with specific initiatives that will both improve our internal competencies and drive growth,” the President and CEO explains. “Importantly, Orthofix generated free cash flow of $9 million in the quarter which, in spite of the revenue shortfall, highlights the underlying stability of Orthofix’s business. Given this and our confidence in our prospects for the future, the Board has approved a share repurchase program.” Orthofix International’s products are available to orthopedic surgeons and patients on a global scale, and in a bid to remain innovative and cutting edge, the company also participates in a variety of research and development initiatives with organizations ranging from the Texas Scottish Rite Hospital for Children to the Musculoskeletal Transplant Foundation.