Fourth Quarter 2017 Net Sales of
Approximately $218 Million
Wright Medical Group N.V. (NASDAQ:WMGI) today announced
preliminary, unaudited fourth quarter and full-year 2017 net sales
results. Unless otherwise noted, all net sales growth rates
in this release are stated on a constant currency basis, which
includes the benefit of the extra four business selling days in the
fourth quarter of fiscal year 2017.
The company expects net sales for the fourth quarter of 2017 to
be approximately $217.6 million, representing growth of 12.7% as
reported and 11.2% on a constant currency basis, including the
benefit from the extra four business selling days, which the
company estimates to be approximately 4.5%. For the full-year
2017, the company expects net sales to be approximately $745.0
million, representing growth of approximately 8% as reported and on
a constant currency basis, including the extra four business
selling days. These preliminary, unaudited financial results
for the quarter and year ended December 31, 2017 are based on
current expectations and are subject to quarter-end closing
adjustments; actual results may differ.
Robert Palmisano, president and chief executive officer,
commented, “Our preliminary fourth quarter results represent an
outstanding performance in our U.S. upper extremities
business. This performance was driven by the launch of our
PERFORM Reversed glenoid and continued contribution from our
SIMPLICITI shoulder system. We anticipate that our ongoing
PERFORM Reversed launch and accelerating adoption of the recently
acquired BLUEPRINT enabling technology will continue to drive
strong shoulder sales growth in 2018.”
Palmisano further commented, “As anticipated, we did not see any
benefit in the fourth quarter in our U.S. lower extremities
business from the sales force expansion. Additionally, we had
some supply constraints primarily related to a third-party coating
vendor in the fourth quarter, which we believe have been
addressed. However, this affected our total ankle business
during the fourth quarter. As previously discussed, we will
continue to focus on improving our execution and building our
physician relationships to restore growth in our core U.S. lower
extremities business and expect to see improvement in 2018 as our
larger sales footprint, new products, new reps and expanding
relationships begin to take effect.”
Wright plans to report its full financial results and provide
more detail for its fourth quarter and full-year 2017 financial
results, as well as issue its 2018 financial guidance, after the
market closes on Tuesday, February 27, 2018, to be followed by its
quarterly conference call at 3:30 p.m. Central Time that day.
Wright Medical to Present Today at J.P. Morgan
Healthcare Conference
Wright’s management will present today, January 8, 2018, at the
J.P. Morgan Healthcare Conference at 7:30 a.m. Pacific Time.
A live audio webcast of the conference presentation and the Q&A
session, along with the accompanying presentation materials, will
be available on Wright’s corporate website at www.wright.com, under
the “Investors” link. The presentation materials, as well as
the reconciliations of its non-GAAP financial measures, will be
posted prior to the presentation as soon as practicable after the
issuance of this press release. The audio webcast and
accompanying presentation materials will be archived on this site
under the “Investor Presentations” link following the
conference.
Internet Posting of Information
Wright routinely posts information that may be important to
investors in the “Investor Relations” section of its website at
www.wright.com. The company encourages investors and
potential investors to consult the Wright website regularly for
important information about Wright.
About Wright Medical Group N.V.
Wright Medical Group N.V. is a global medical device company
focused on extremities and biologics products. The company is
committed to delivering innovative, value-added solutions improving
the quality of life for patients worldwide. Wright is a
recognized leader of surgical solutions for the upper extremities
(shoulder, elbow, wrist and hand), lower extremities (foot and
ankle) and biologics markets, three of the fastest growing segments
in orthopaedics. For more information about Wright, visit
www.wright.com.
™ and ® denote trademarks and registered trademarks of Wright
Medical Group N.V. or its affiliates, registered as indicated
in the United States, and in other countries. All other
trademarks and trade names referred to in this release are the
property of their respective owners.
Non-GAAP Financial Measures
To supplement the company’s consolidated financial statements
prepared in accordance with U.S. generally accepted accounting
principles, the company uses certain non-GAAP financial measures in
this release. Reconciliations of the historical non-GAAP financial
measures used in this release to the most comparable GAAP measures
for the respective periods can be found in tables later in this
release. Wright’s non-GAAP financial measures include net sales,
excluding the impact of foreign currency. The company's management
believes that the presentation of these measures provides useful
information to investors. Management uses the non-GAAP
measures in this release internally for evaluation of the
performance of the business, including the allocation of resources
and the evaluation of results relative to employee performance
compensation targets. Investors should consider non-GAAP
financial measures only as a supplement to, not as a substitute for
or as superior to, measures of financial performance prepared in
accordance with GAAP.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This release includes forward-looking statements under the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements generally can be identified by the use
of words such as “anticipate,” “expect,” “could,” “may,” “will,”
“believe,” “estimate,” “continue,” “guidance,” “future,” other
words of similar meaning and the use of future dates.
Forward-looking statements in this release include, but are not
limited to, the preliminary and unaudited net sales results for
fourth quarter and full year of 2017 and statements about the
company’s anticipated strong shoulder sales growth in 2018 and
anticipated improvement in 2018 as its larger sales footprint, new
products, new reps and expanding relationships begin to take
effect. Forward-looking statements by their nature address matters
that are, to different degrees, uncertain. Each forward-looking
statement contained in this release is subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by such statement. Applicable risks
and uncertainties include, among others, risks that Wright’s final
net sales results will deviate from the preliminary, unaudited net
sales results in this release; the failure of the company’s recent
U.S. sales force addition; continued supply constraints; focus on
core product portfolio and incentives to drive U.S. lower
extremities and biologics sales or delay in realization thereof;
the failure to integrate the legacy Wright and Tornier businesses
and realize net sales synergies and cost savings from the merger
with Tornier or delay in realization thereof; operating costs and
business disruption as a result of the merger, including adverse
effects on employee retention and sales force productivity and on
business relationships with third parties; integration costs;
actual or contingent liabilities; adverse effects of diverting
resources and attention to providing transition services to the
purchaser of the large joints business; the adequacy of the
company’s capital resources and need for additional financing; the
timing of regulatory approvals and introduction of new products;
physician acceptance, endorsement, and use of new products; failure
to achieve the anticipated benefits from approval of AUGMENT® Bone
Graft; the effect of regulatory actions, changes in and adoption of
reimbursement rates; product liability claims and product recalls;
pending and threatened litigation; risks associated with the
metal-on-metal master settlement agreement and the settlement
agreement with the three settling insurers; risks associated with
the subsequent metal-on-metal settlement agreements and ability to
obtain the additional new insurance proceeds contingent thereon;
risks associated with international operations and expansion;
fluctuations in foreign currency exchange rates; other business
effects, including the effects of industry, economic or political
conditions outside of the company’s control; reliance on
independent distributors and sales agencies; competitor activities;
changes in tax and other legislation; and the risks identified
under the heading “Risk Factors” in Wright’s Annual Report on Form
10-K for the year ended December 25, 2016 filed by Wright with the
SEC on February 23, 2017 and subsequent SEC filings by Wright,
including its Quarterly Report on Form 10-Q for the quarter ended
September 24, 2017 filed by Wright with the SEC on November 2,
2017. Investors should not place considerable reliance on the
forward-looking statements contained in this release. Investors are
encouraged to read Wright’s filings with the SEC, available at
www.sec.gov, for a discussion of these and other risks and
uncertainties. The forward-looking statements in this release speak
only as of the date of this release, and Wright undertakes no
obligation to update or revise any of these statements. Wright’s
business is subject to substantial risks and uncertainties,
including those referenced above. Investors, potential investors,
and others should give careful consideration to these risks and
uncertainties.
--Tables Follow--
|
|
|
|
Wright Medical Group
N.V.Consolidated Sales Analysis(dollars
in thousands--unaudited) |
|
|
|
|
|
Three months ended |
|
Fiscal year ended |
|
December 31,2017 |
|
December 25,2016 |
|
%change |
|
December 31,2017 |
|
December 25,2016 |
|
%change |
U.S. |
|
|
|
|
|
|
|
|
|
|
|
Lower
extremities |
66,816 |
|
|
64,064 |
|
|
4.3 |
% |
|
228,044 |
|
|
222,936 |
|
|
2.3 |
% |
Upper
extremities |
71,685 |
|
|
55,462 |
|
|
29.3 |
% |
|
239,965 |
|
|
201,579 |
|
|
19.0 |
% |
Biologics |
21,814 |
|
|
21,436 |
|
|
1.8 |
% |
|
78,361 |
|
|
74,603 |
|
|
5.0 |
% |
Sports
med & other |
2,242 |
|
|
2,103 |
|
|
6.6 |
% |
|
8,141 |
|
|
8,429 |
|
|
(3.4 |
)% |
Total
U.S. |
$ |
162,557 |
|
|
$ |
143,065 |
|
|
13.6 |
% |
|
$ |
554,511 |
|
|
$ |
507,547 |
|
|
9.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
Lower
extremities |
16,101 |
|
|
16,717 |
|
|
(3.7 |
)% |
|
58,473 |
|
|
62,701 |
|
|
(6.7 |
)% |
Upper
extremities |
28,093 |
|
|
24,261 |
|
|
15.8 |
% |
|
94,699 |
|
|
86,502 |
|
|
9.5 |
% |
Biologics |
6,784 |
|
|
5,079 |
|
|
33.6 |
% |
|
22,276 |
|
|
18,883 |
|
|
18.0 |
% |
Sports
med & other |
4,067 |
|
|
3,901 |
|
|
4.3 |
% |
|
15,030 |
|
|
14,729 |
|
|
2.0 |
% |
Total
International |
$ |
55,045 |
|
|
$ |
49,958 |
|
|
10.2 |
% |
|
$ |
190,478 |
|
|
$ |
182,815 |
|
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Global |
|
|
|
|
|
|
|
|
|
|
|
Lower
extremities |
82,917 |
|
|
80,781 |
|
|
2.6 |
% |
|
286,517 |
|
|
285,637 |
|
|
0.3 |
% |
Upper
extremities |
99,778 |
|
|
79,723 |
|
|
25.2 |
% |
|
334,664 |
|
|
288,081 |
|
|
16.2 |
% |
Biologics |
28,598 |
|
|
26,515 |
|
|
7.9 |
% |
|
100,637 |
|
|
93,486 |
|
|
7.6 |
% |
Sports
med & other |
6,309 |
|
|
6,004 |
|
|
5.1 |
% |
|
23,171 |
|
|
23,158 |
|
|
0.1 |
% |
Total
sales |
$ |
217,602 |
|
|
$ |
193,023 |
|
|
12.7 |
% |
|
$ |
744,989 |
|
|
$ |
690,362 |
|
|
7.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wright Medical Group
N.V.Supplemental Net Sales
Information(unaudited) |
|
|
|
Three months ended December 31, 2017 net sales
growth/(decline) |
|
U.S. as reported |
Int'l constant currency |
Int'l as reported |
Global constant currency |
Global as reported |
Product line |
|
|
|
|
|
Lower
extremities |
4 |
% |
(9 |
%) |
(4 |
%) |
2 |
% |
3 |
% |
Upper
extremities |
29 |
% |
9 |
% |
16 |
% |
23 |
% |
25 |
% |
Biologics |
2 |
% |
30 |
% |
34 |
% |
7 |
% |
8 |
% |
Sports
med & other |
7 |
% |
(3 |
%) |
4 |
% |
0 |
% |
5 |
% |
Total net sales |
14 |
% |
4 |
% |
10 |
% |
11 |
% |
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal year ended December 31, 2017 net sales
growth/(decline) |
|
U.S. as reported |
Int'l constant currency |
Int'l as reported |
Global constant currency |
Global as reported |
Product line |
|
|
|
|
|
Lower
extremities |
2 |
% |
(7 |
%) |
(7 |
%) |
0 |
% |
0 |
% |
Upper
extremities |
19 |
% |
8 |
% |
9 |
% |
16 |
% |
16 |
% |
Biologics |
5 |
% |
17 |
% |
18 |
% |
8 |
% |
8 |
% |
Sports
med & other |
(3 |
%) |
2 |
% |
2 |
% |
0 |
% |
0 |
% |
Total net
sales |
9 |
% |
4 |
% |
4 |
% |
8 |
% |
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
Investors & Media:
Julie D.
Tracy
Sr. Vice President, Chief Communications
OfficerWright Medical Group N.V.(901)
290-5817julie.tracy@wright.com
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