Orthofix Announces 15% Increase In Revenue In 2003
BY JOHN MCCORMICK, MARCH 1, 2004
On Thursday, Orthofix (OFIX) announced revenues of $203.7 million for the year ended December 31, 2003, an increase of 15% over the prior year. Interestingly, over a quarter of the incremental revenue can be attributed to the US dollar decline. By excluding $4.9 million of litigation costs for the year, earnings for 2003 would have been $29.6 million, an increase of 14% over the prior year. Revenues for 4Q:03, were $52.7 million, an increase of 15% over the same period in 2002. In that period, foreign currency represented a similar portion of incremental revenues to the year as a whole. Naturally the newly reported revenue and earnings numbers don't reflect the BREG acquisition which closed on the last day of 2003.
Charles W. Federico, President and Chief Executive Officer stuck to his prior 2004 revenue guidance at $292 million and EPS guidance of approximately $2.60 per share. He also noted that while the intricacies of purchase accounting may effect cost of goods sold during the first quarter, the Company is expecting approximately $70 million of revenues and diluted earnings per share of between $0.50 and $0.55 for 1Q:04. That implies a 2004 revenue growth of 43% for the year which is largely attributable to the BREG acquisition, a deal which helped solidify the Company's leadership position in the pre and post-operative therapeutics segment.
