WARSAW — Zimmer Biomet Holdings Inc. reported today, Thursday, July 28, financial results for the quarter ended June 30.
The company reported second quarter net sales of $1.93 billion, an increase of 65.6 percent and an increase of 4.5 percent on an adjusted pro forma, constant currency basis, compared to the second quarter of 2015. Diluted net loss per share for the quarter was $(0.16), compared to a net loss per share of$(1.00) for the prior year period and adjusted diluted earnings per share for the quarter were $2.02, an increase of 27.8 percent adjusted over the prior year period.
“In the second quarter, Zimmer Biomet accelerated revenue growth above the top end of our expectations, highlighted by the results of our SET category and our ongoing strength in the Asia Pacific region,” said David Dvorak, president and CEO of Zimmer Biomet. “Our top line performance, coupled with the ongoing capture of operational synergies, supported investments into strategic growth drivers, while delivering adjusted earnings per share above our guidance range. We will continue to execute on commercial opportunities across our broad portfolio in the second half of the year, as well as expand our clinical offerings with differentiated new technologies, services and solutions.”
Net loss for the second quarter was $(31.3) million, an increase from a net loss of $(173.6) million from the prior year period. On an adjusted basis, net earnings increased 47.0% over the prior year period, to $407.1 million. Operating cash flow for the second quarter was $379.6 million.
In the quarter, the company paid $47.8 million in dividends and declared a second quarter dividend of $0.24 per share. The company also repaid $100 million on its outstanding term loan during the quarter.
The company updated its full-year 2016 constant currency revenue and adjusted earnings per share guidance. The company now estimates full-year revenue to be in a range of $7.680 billion to $7.715 billion, or an increase of approximately 28 percent and 3 percent to 3.5 percent on an adjusted pro forma basis, in each case, as compared to the prior year.
The adjusted pro forma revenue guidance range is inclusive of approximately 100 basis points of contribution related to the LDR Spine transaction. The company also now expects foreign currency translation to decrease revenues in the full-year 2016 by approximately 0.50 percent, compared to its previous estimate of 1 percent. Organic revenue growth, on a constant currency adjusted pro forma basis, is now expected to be in a range of 2.5 percent to 3 percent.
Previously, the company estimated full-year revenue growth to be in a range of 2-3 percent on a similar basis.
Additionally, the company now expects its full-year 2016 diluted earnings per share to be in a range of $1.50 to $1.75 and $7.90 to $8 on an adjusted basis.
Previously, the company estimated diluted earnings per share to be in a range of $7.85 to $8 on an adjusted basis.
The company conducted its second quarter 2016 investor conference call today, July 28.
The webcast will be archived for replay following the conference call. Individuals in the U.S. and Canada who wish to dial into the conference call may do so by dialing (877) 941-1227 and entering conference ID 4721888. A digital recording will be available 24 hours after the completion of the conference call, July 29, to Aug. 28. To access the recording, U.S. and Canada callers can dial (800) 406-7325 and international callers should dial +1 (303) 590-3030, and enter the access code ID 4696670.
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