San Diego, Calif-based DJO Global, Inc, recently announced financial results for its public reporting subsidiary, DJO Finance LLC (DJOFL). The company reportedly achieved net sales for the first quarter of 2015 of $280.1 million, which it says reflects negative growth of 0.9%, compared with net sales of $282.7 million for the first quarter of 2014.
Net sales for the first quarter of 2015 reportedly were unfavorably impacted by $12.0 million related to changes in foreign currency exchange rates compared to the rates in effect in the first quarter of 2014. Excluding the impact of changes in foreign currency exchange rates from rates in effect in the prior year period (“constant currency”), net sales for the first quarter of 2015 increased 5.0% on a sales per day basis compared to net sales for the first quarter of 2014. The first quarter of 2015 included 62 shipping days in the United States and 61 shipping days in most international markets, while the comparable 2014 period included 63 days.
Adjusted EBITDA for the first quarter of 2015 was $59.0 million, or 21.1% of net sales, reflecting -1.1% growth when compared with Adjusted EBITDA of $59.7 million, or 21.1% of net sales, for the first quarter of 2014. On a constant currency basis, Adjusted EBITDA grew 4.0% in the first quarter of 2015.
The Company defines Adjusted EBITDA as net (loss) income attributable to DJOFL plus interest expense, net, income tax provision (benefit), and depreciation and amortization, further adjusted for certain non-cash items, non-recurring items and other adjustment items as permitted in calculating covenant compliance under the Company’s amended senior secured credit facilities (“Amended Senior Credit Facilities”) and the indentures governing its 8.75% second priority senior secured notes, its 9.875% and 7.75% senior notes and its 9.75% senior subordinated notes. Reconciliation between net loss and Adjusted EBITDA is included in the attached financial tables.
For the first quarter of 2015, DJOFL reported a net loss attributable to DJOFL of $35.5 million, compared to a net loss of $36.5 million for the first quarter of 2014. As detailed in the attached financial tables, the results for the current and prior year first quarter periods were impacted by significant non-cash items, non-recurring items and other adjustments.
“We are pleased to report strong top and bottom line performance, in line with expectations,” said Mike Mogul, DJO’s President and Chief Executive Officer. “We also launched our Exprt Revision Knee, the world’s first orthopedic implant designed primarily for experienced surgeons providing a streamlined surgical experience at a much lower cost. Just as exciting was our launch of the world’s first titanium knee brace, the A22, providing patients and athletes with a much lighter and lower profile experience in an ACL brace.
“I want to especially congratulate our Bracing and Vascular, Surgical Implant and International teams, for delivering strong organic sales per day growth of 5.7%, 14.4% and 6.4%, respectively, in Q1 2015.
[Source: Business Wire]