Encore Medical Reports 4Q:05 and 2005 Year-end Financials
BY JOHN CHOPACK, FEBRUARY 27, 2006
Encore reported revenues of $75 million for the 4Q:05 which was a 10% increase over the 4Q:04 and slightly below analysts' expectations of $76 million. The 4Q:05 represented the first quarter in which comparative results for the Empi acquisition were included in both the 4Q:05 and the 4Q:04. Revenues for 2005 totaled $297.3 million. Earnings per diluted share totaled $0.06 for the 4Q:05 which was in-line with analyst expectations.
The Orthopedic Rehabilitation Division revenue totaled $239.2 million and the Surgical Implant Division revenue totaled $54.5 million which represented 81% and 18% of net revenues, respectively. Orthopedic Rehabilitation Division revenue totaled $60.9 million which was a 7% increase over the 4Q:04 and represented 81% of net revenues. Surgical Implant Division revenue totaled $14.1 million in the 4Q:05, an increase of 23% over the 4Q:04.
Growth in the Surgical Implant Division was led by the acquisition of Osteoimplant Technologies in February, 2005. Other growth drivers included the Reverse Shoulder Implant, M.I.K.A. Minimally Invasive Knee Arthroplasty Instruments and MIS Hip Instruments.
Orthopedic Rehabilitation Division's gross margin totaled 57% and the Surgical Implant Division's gross margin totaled 79% during 2005. This led to an overall company gross margin of 61% for 2005.
Encore also announced that it had closed its acquisition of Compex Technologies, Inc. which was completed on February 24, 2006.
