The company’s net sales increased 4 percent, from $607 million to $630.1 million, during the quarter, and U.S. sales increased 9 percent to $400.2 million.
Reconstructive sales, excluding dental, increased 5 percent worldwide and 10 percent for U.S. sales. Knee sales increased 6 percent worldwide, with U.S. growth of 9 percent. Hip sales increased 2 percent worldwide, with 4 percent U.S. growth. Extremity sales increased 18 percent worldwide, with 39 percent U.S. growth. Spine sales increased 15 percent worldwide, with 15 percent U.S. growth
Operating income for the first quarter totaled $79.1 million compared to operating income of $57.0 million for the first quarter of fiscal year 2009, according to the release.
Despite the company’s growth in sales, it experienced a net loss of $22.8 million, on a reported basis, compared to a net loss of $59.9 million for the first quarter of fiscal 2009.
Biomet’s interest expense for the first quarter of fiscal year 2010 was $131.5 million compared to $141.9 million for the first quarter of fiscal 2009.
Adjusted EBITDA for the first quarter increased 11 percent to $230.3 million, or 36.5 percent of sales, compared to adjusted EBITDA of $207 million, or 34.1 percent of sales, for the prior year period.
Free cash flow (operating cash flow minus capital expenditures) was $1.6 million for the first quarter of fiscal 2010. Unlevered free cash flow (cash flow before debt service) totaled $59.8 million. The company’s cash flow in the quarter was negatively impacted by $53 million related to a litigation settlement.
The company’s reported net debt balance on Aug. 31 was roughly $6 billion, with cash on hand of $226.4 million.
Read the release on Biomet’s first quarter 2010 earnings.
