IRVINE, Calif., Feb. 7, 2001 (PRIMEZONE) -- Interpore Cross International (Nasdaq:BONZ) today reported final financial results for its fourth quarter and year ended December 31, 2000. The reported revenue amounts were unchanged from the preliminary sales results released on January 30, 2001.
For the year ended December 31, 2000, net sales grew 14% to a record $44.3 million, compared to net sales of $38.9 million in 1999. Total domestic sales reflected an increase of 18% to $35.5 million, compared to $30.1 million in 1999, and total international sales were essentially unchanged at $8.8 million. Sales of spinal implant products increased by 14% to a record $23.7 million, compared to $20.8 million in 1999. Sales of orthobiologic products increased by 14% to a record $20.6 million, compared to $18.1 million in 1999. Within the orthobiologic products category, AGF(tm) products sales increased by $3.5 million or 128% to $6.4 million, and sales of synthetic bone products decreased by $1 million or 7% to $14.2 million.
Income before taxes of $6.6 million for the year ended December 31, 2000 reflected an increase of 27% compared with $5.2 million in 1999. Net income for 2000 was $4.1 million (after a $2.5 million income tax provision), or $.27 per diluted share, compared with net income in 1999 of $4.8 million (after a $407,000 income tax provision), or $.35 per diluted share. If the company had provided for income taxes in 1999 at the same 37.3% effective tax rate used in 2000, diluted earnings per share would have been $.24 in 1999.
Net sales for the fourth quarter of 2000 grew 2% to $10.9 million, compared to net sales of $10.7 million for the fourth quarter of 1999. Total domestic sales increased by 9% to $8.8 million, compared to $8.1 million in 1999, and total international sales decreased by 17% to $2.1 million, compared to $2.6 million in 1999. Spinal implant products sales of approximately $5.6 million were essentially unchanged from the same quarter of 1999. Sales of orthobiologic products increased by 5% to a record $5.3 million in the fourth quarter of 2000, compared to $5.1 million in the fourth quarter last year. Within the orthobiologic products category, AGF products sales increased by $629,000 or 54% to $1.8 million, and sales of synthetic bone products decreased by $393,000 or 10% to $3.5 million.
Net income for the fourth quarter of 2000 was $824,000, or $.06 per diluted share, compared with net income for the 1999 fourth quarter of $1.2 million, or $.09 per diluted share. If the company had provided for income taxes in the fourth quarter of 1999 at the same 38.6% effective tax rate used in the fourth quarter of 2000, diluted earnings per share would have been $.07 in fourth quarter of 1999.
David C. Mercer, chairman and chief executive officer of Interpore Cross, commented on the operating results for the quarter: "Domestic sales of spinal implant products were strong, growing by 15% over the same quarter of last year. Offsetting this increase, however, was a decline in international sales of spinal implant products, which we believe was caused primarily by the strong dollar, a surgeons' strike in Korea and several distributor transition issues. Sales of orthobiologic products increased by 5% despite a decline in sales of bone graft products. This growth was driven by record sales of AGF products of $1.8 million, reflecting an annual run rate of over $7 million in just a year and a half since AGF was launched nationally."
Mercer then commented on the company's operating results for the year, "In many respects, 2000 was a notable year for Interpore Cross. We set sales records for total sales, sales of orthobiologic products and sales of spinal implant products. Revenues in our fastest growing product areas, AGF products and domestic spinal implant products, increased by 128% and 21%, respectively. Our revenue growth helped to generate record pre-tax profits of $6.6 million in 2000, up 27% from 1999. Also, we continue to generate positive cash flow from operations, and by year end our cash and short-term investments had grown to $14.6 million, an increase of nearly $5 million since the beginning of the year."
As previously announced, the company is conducting a conference call with analysts to review the financial results today at 5:00 pm (EST). Audio access to the conference call will be available through a live webcast via a link provided in the Corporate & Financial/Events section of Interpore Cross' website at www.interpore.com. The webcast of Interpore Cross' conference call will also be available for replay through March 6, 2001 by accessing the same link.
Interpore Cross International is a medical device company that designs, manufactures and markets spinal implant devices and orthobiologic products on a worldwide basis. The spinal products are used to treat degenerative conditions, deformities and trauma of the spine. The orthobiologic products are used for bone and soft tissue repair in orthopedic and other applications.
Certain statements in this release are forward-looking and may involve risks and uncertainties, including, but not limited to: the ability of the company to achieve estimated sales levels; product demand and market acceptance risks; risks that future sales growth may decline; risk that agents or distributors will be unsuccessful in sales of products; risk that joint venture partners will devote insufficient time or resources to the sale of our products; risks related to the development of future products; risk that the company will not receive regulatory approval of products; the risk of intellectual property litigation; and the impact of competitive products. Additional information on factors that could affect the company's financial results and growth prospects is disclosed in the company's reports filed from time to time with the Securities and Exchange Commission.
INTERPORE CROSS INTERNATIONAL
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended Twelve Months Ended
December 31, December 31,
1999 2000 1999 2000
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unaudited
Net sales $10,679 $10,933 $38,856 $44,319
Cost of goods sold 3,239 3,344 11,645 13,460
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Gross profit 7,440 7,589 27,211 30,859
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Operating expenses:
Research and development 1,109 1,477 4,192 5,302
Selling and marketing 3,737 4,309 13,978 15,834
General and administrative 1,115 803 4,351 3,852
Non-recurring charges -- -- -- 268
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Total operating expenses 5,961 6,589 22,521 25,256
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Income from operations 1,479 1,000 4,690 5,603
Interest and other
income, net 167 343 515 991
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Income before taxes 1,646 1,343 5,205 6,594
Income tax provision 407 519 407 2,461
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Net income $ 1,239 $ 824 $ 4,798 $ 4,133
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Net income per share:
Basic $ .09 $ .06 $ .35 $ .29
Diluted $ .09 $ .06 $ .35 $ .27
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Shares used in computing
net income per share:
Basic 13,576 14,414 13,537 14,043
Diluted 14,057 14,638 13,876 15,140
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
Dec. 31, Dec. 31,
1999 2000
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Assets
------
Cash and short-term
investments $ 9,774 $14,610
Other current assets 24,831 25,302
Property, plant and
equipment, net 1,349 1,509
Other assets 4,839 3,812
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Total assets $40,793 $45,233
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Liabilities &
Stockholders' Equity
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Current liabilities $ 4,391 $ 3,375
Long-term liabilities 3,165 --
Stockholders' equity 33,237 41,858
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Total liabilities &
stockholders' equity $40,793 $45,233
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