Interim Statement of Össur hf.
30 June 2001
The interim figures of Össur hf. for the first six months of the year reveal that results from the operation of the Company are in line with the Company's projections.
Turnover amounted to ISK 3,132 million, increasing by 137% between compatible periods.
Earnings before financial items and taxes (EBIDTA) amounted to ISK 435 million, increasing by 99%.
Profit after taxes was ISK 312 million, increasing by 127%.
Profit per share amounted to ISK 1.9, increasing by 46% from previous year.
The interim statement of Össur hf. for the first six months of the year has been prepared and approved by the Board of Directors of the Company. The consolidated accounts of Össur hf. include the operating results of Össur Holding Inc., USA, Karlsson & Bergström AB, Pi Medical AB and Century XXII Innovation Inc., Össur S.a.r.l and OR Capital Inc., Össur hf., and Össur Stoðtæki. .
Key Figures from the Operation and Finances of the Össur hf. Group
Income statementIncome statement Income statement6 M 20016 M 2001 6 M 20016 M 20006 M 2000 6 M 2000ChangeChange Change
Operating revenuesOperating revenues Operating revenuesISK 3.132ISK 3.132 ISK 3.132ISK 1.322ISK 1.322 ISK 1.322137%137% 137%
Operating expensesOperating expenses Operating expensesISK 2.795ISK 2.795 ISK 2.795ISK 1.148ISK 1.148 ISK 1.148143%143% 143%
Operating profitOperating profit Operating profitISK 338ISK 338 ISK 338ISK 174ISK 174 ISK 17494%94% 94%
EBIDTAEBIDTA EBIDTAISK 435ISK 435 ISK 435ISK 219ISK 219 ISK 21999%99% 99%
Interest income (expenses)Interest income (expenses) Interest income (expenses)ISK - 14ISK - 14 ISK - 14ISK 11ISK 11 ISK 11
Income before taxesIncome before taxes Income before taxesISK 324ISK 324 ISK 324ISK 184ISK 184 ISK 18476%76% 76%
Income taxIncome tax Income taxISK - 15ISK - 15 ISK - 15ISK - 49ISK - 49 ISK - 49
Net income before income in affiliated companiesNet income before income in affiliated companies Net income before income in affiliated companiesISK 309ISK 309 ISK 309ISK 135ISK 135 ISK 135129%129% 129%
Share of income in affiliated companiesShare of income in affiliated companies Share of income in affiliated companiesISK 3ISK 3 ISK 3
Extraordinary expensesExtraordinary expenses Extraordinary expenses ISK ¿3.698ISK ¿3.698 ISK ¿3.698
Net income (loss) for the periodNet income (loss) for the period Net income (loss) for the period ISK 312ISK 312 ISK 312ISK ¿ 3.553ISK ¿ 3.553 ISK ¿ 3.553
Balance SheetBalance Sheet Balance Sheet6 M 20016 M 2001 6 M 20016 M 20006 M 2000 6 M 2000ChangeChange Change
Fixed assetsFixed assets Fixed assetsISK 3.308ISK 3.308 ISK 3.308ISK 2.614ISK 2.614 ISK 2.61427%27% 27%
Current assetsCurrent assets Current assetsISK 2.487ISK 2.487 ISK 2.487ISK 2.201ISK 2.201 ISK 2.20113%13% 13%
Total assetsTotal assets Total assetsISK 5.795ISK 5.795 ISK 5.795ISK 4.815ISK 4.815 ISK 4.81520%20% 20%
Total stockholders¿ equityTotal stockholders¿ equity Total stockholders¿ equityISK 2.902ISK 2.902 ISK 2.902ISK 2.061ISK 2.061 ISK 2.06141%41% 41%
Long term liabilitiesLong term liabilities Long term liabilitiesISK 1.445ISK 1.445 ISK 1.445ISK 1.172ISK 1.172 ISK 1.17223%23% 23%
Current liabilitiesCurrent liabilities Current liabilitiesISK 1.448ISK 1.448 ISK 1.448ISK 1.582ISK 1.582 ISK 1.582-8%-8% -8%
Income statement
?6 M 2001
?6 M 2000
?Change
?
?Operating revenues
?ISK 3.132
?ISK 1.322
?137%
?
?Operating expenses
?ISK 2.795
?ISK 1.148
?143%
?
?Operating profit
?ISK 338
?ISK 174
?94%
?
?
?
?
?
?
?EBIDTA
?ISK 435
?ISK 219
?99%
?
?
?
?
?
?
?Interest income (expenses)
?ISK - 14
?ISK 11
?
?
?
?
?
?
?
?Income before taxes
?ISK 324
?ISK 184
?76%
?
?
?
?
?
?
?Income tax
?ISK - 15
?ISK - 49
?
?
?
?
?
?
?
?Net income before income in affiliated companies
?ISK 309
?ISK 135
?129%
?
?
?
?
?
?
?Share of income in affiliated companies
?ISK 3
?
?
?
?
?
?
?
?
?Extraordinary expenses
?
?ISK ¿3.698
?
?
?
?
?
?
?
?Net income (loss) for the period
?ISK 312
?ISK ¿ 3.553
?
?
?
?
?
?
?
?Balance Sheet
?6 M 2001
?6 M 2000
?Change
?
?Fixed assets
?ISK 3.308
?ISK 2.614
?27%
?
?Current assets
?ISK 2.487
?ISK 2.201
?13%
?
?Total assets
?ISK 5.795
?ISK 4.815
?20%
?
?
?
?
?
?
?Total stockholders¿ equity
?ISK 2.902
?ISK 2.061
?41%
?
?Long term liabilities
?ISK 1.445
?ISK 1.172
?23%
?
?Current liabilities
?ISK 1.448
?ISK 1.582
?-8%
?
?
The profit of the Company after taxes was ISK 312 million, compared to ISK 135 million in 2000.
The operating income of the Company was ISK 3,132 million, increasing by 137% between years. Operating expenses amounted to ISK 2,795 million, with cost of goods sold at ISK 601 million, admin cost of ISK 691 million, and R&D costs at ISK 256 million. All R&D costs have been charged to the accounts.
Operating profit before financial items amounted to ISK 338 million, up from ISK 174 million, which corresponds to an increase of 94% between years. Earnings before depreciation (EBIDTA) amounted to ISK 435 million, compared to ISK 209 million in the preceding year, increasing by 108% in a compatible period.
Interest income was negative by ISK 14 million, and profit before taxes amounted to ISK 324 million, compared to ISK 184 million in the preceding year. The profit for the year was ISK 312 million, which corresponds to an increase of 127% between years.
Fixed assets increased by ISK 694 million during the period.
Current assets increased by ISK 286 million over the period. Inventory increased by ISK 114 million, mostly as a result of the increased scope of activities of the company and expansion of the Company's line of products. Receivables increased by ISK 249 million.
Equity amounted to ISK 2,902 million at the end of the period, rising by ISK 841 million, largely as a result of currency effects of foreign holdings.
Liabilities increased by ISK 139 million, with long-term liabilities rising by ISK 273 million, while current liabilities fell by ISK 134 million. There are no new borrowings, which means that the increases are mostly a result of exchange rate effects on long-term liabilities.
Total assets amounted to ISK 5,795 million, which represents an increase of ISK 980 since the turn of the year.
Cash flows from operating activities at the end of the period amounted to ISK 407 million, compared to ISK 238 million for the first 6 months of 2000. Cash flows from investment activities are negative by ISK 287 million as a result of amortisation of loans.
Key Indicators
6 mon. 20016 mon. 2001 6 mon. 2001
Current ratioCurrent ratio Current ratio1.71.7 1.7
Equity ratioEquity ratio Equity ratio50.10%50.10% 50.10%
Net cash from operation at 2001price levelsNet cash from operation at 2001price levels Net cash from operation at 2001price levels407.0407.0 407.0
As a ratio of total liabilitiesAs a ratio of total liabilities As a ratio of total liabilities21.50%21.50% 21.50%
As a ratio of amortisation of investmentsAs a ratio of amortisation of investments As a ratio of amortisation of investments0.40.4 0.4
Return on equity after taxesReturn on equity after taxes Return on equity after taxes25.10%25.10% 25.10%
Market value at year-endMarket value at year-end Market value at year-end15,46815,468 15,468
P/E ratioP/E ratio P/E ratio24.824.8 24.8
Number of outstanding shares (ISK m)Number of outstanding shares (ISK m) Number of outstanding shares (ISK m)328.4328.4 328.4
Earnings from regular operations per shareEarnings from regular operations per share Earnings from regular operations per shareISK 1.9ISK 1.9 ISK 1.9
?6 mon. 2001
?
?
?Current ratio
?1.7
?
?
?Equity ratio
?50.10%
?
?
?Net cash from operation at 2001price levels
?407.0
?
?
? As a ratio of total liabilities
?21.50%
?
?
? As a ratio of amortisation of investments
?0.4
?
?
?
?
?
?
?Return on equity after taxes
?25.10%
?
?
?Market value at year-end
?15,468
?
?
?P/E ratio
?24.8
?
?
?Number of outstanding shares (ISK m)
?328.4
?
?
?Earnings from regular operations per share
?ISK 1.9
?
?
?
The equity ratio rose from 44.8% to 50.1%, and return on equity was 25.1%.
The P/E ratio of the Company is 24.8, based on a market value of ISK 15.468 million at the end of June 2001, and the profit for the period was ISK 312 million. Profit per issued share rose from ISK 1.3 at year-end 2000 to ISK 1.9, calculated on an annual basis, or by 46%.
Operation over the Period
The interim figures of Össur hf. for the first six months of the year reveal that results from the operation of the Company are in line with the Company's projections. A new liner for above-knee amputees was introduced during the period and a new knee was introduced in June. Both have been successful new product launches. ¿The success of new product launches during this period has made up for a longer set-up process of our new sales system in Europe, than anticipated,¿ says Jon Sigurdsson, CEO and President of Össur.
Prospects for the Second Half of the Year
An increase is estimated in sales and profits for 3rd and 4th quarter 2001 that is consistent with seasonal changes in the prosthetic market. It is also estimated that the company¿s sales system will have become fully functional in the later part of the year. It is not considered necessary to alter the company¿s previous plans that estimated total revenue of ISK 6.100 million and a profit of ISK 700 million. The Össur management team has previously emphasized an existing uncertainty in plans for 2001, due to the extreme changes the company has undertaken in its distribution system in the US and in Europe.
Open Teleconference with Management
On Thursday 26 July at 11:00 a.m., investors and other parties interested in the operation of the Company are invited to participate in an open teleconference. At the conference, Mr. Jón Sigurðsson, CEO, and Mr. Árni Alvar Arason, CFO, will discuss the conclusions of the interim statement.
To participate in the teleconference, dial 595 2030. The meeting can also be monitored on the Össur hf. website at www.ossur.is.
For further information, please call Mr. Jón Sigurðsson, CEO of Össur hf., today, Thursday 26 July, at 861-2108.
