WARSAW — Zimmer Biomet Holdings Inc. reported financial results for the fourth quarter and full year ended Dec. 31, 2015.
The company reported fourth-quarter net sales of $1.93 billion, an increase of 58.1 percent over the prior year period on a reported basis and an increase of 0.5 percent on an adjusted pro forma, constant currency billing day basis.
Diluted earnings per share for the quarter were $0.14 reported and $2.09 adjusted, an increase of 17.4 percent adjusted over the prior year period. Full-year net sales were $6.0 billion, an increase of 28.3 percent reported over the prior year. Diluted earnings per share for the year were $0.26 reported and $6.90 adjusted, an increase of 7.8 percent adjusted over the prior year.
“At the close of a transformational year for Zimmer Biomet, we achieved top line growth supported by sequential improvement from our joint reconstructive and SET businesses in the U.S. In addition, we finished the year with strong earnings results, as we continued to execute on our global integration plans,” said David Dvorak, president and CEO of Zimmer Biomet. “Importantly, the substantial completion of our commercial integration in 2015, combined with the breadth of our musculoskeletal portfolio, positions our sales teams to accelerate our growth as we progress through 2016.”
Net earnings for the fourth quarter were $29.7 million on a reported basis and $428.3 million on an adjusted basis, an increase of 39.2 percent adjusted over the prior year period. Operating cash flow for the fourth quarter was $433.2 million.
During the fourth quarter, the company paid $44.8 million in dividends and declared a fourth-quarter dividend of $0.22 per share, consistent with the dividend declared for the prior year period.
Further, the company utilized $150 million of cash to acquire 1.4 million shares during the fourth quarter. As of Dec. 31, 2015, $450 million remained available under the current share repurchase authorization.
The company expects constant currency revenue for the full year 2016, as compared to adjusted pro forma 2015 revenue, to increase between 1.5 percent and 2.5 percent The company expects foreign currency translation to decrease revenues by 2.0 percent, resulting in reported revenue between negative 0.5 percent and positive 0.5 percent when compared to adjusted pro forma 2015 revenue.
The company expects full-year 2016 adjusted diluted earnings per share to be in a range of $7.80 to $7.95.
The company conducted its fourth-quarter and full-year 2015 investor conference call today, January 28. The live audio webcast can be accessed via Zimmer Biomet’s Investor Relations website. It will be archived for replay following the conference call.
A digital recording will be available 24 hours after the completion of the conference call, from Friday, Jan. 29, 2016, to Sunday, Feb. 28. To access the recording, dial (800) 406-7325.
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