Ossur Hf : Q2 Results 2016

Announcement from Össur hf. No. 71/2016

Reykjavík, 21 July 2016

ÖSSUR Q2 RESULTS 2016

Highlights Q2 2016

• Sales amounted to USD 139 million compared to USD 127 million in Q2 2015, corresponding to local currency growth of 10% and 5% organic growth.
• Gross profit amounted to USD 89 million or 64% of sales, compared to USD 80 million or 63% of sales in Q2 2015.
• EBITDA amounted to USD 25 million or 18% of sales.  Adjusted for one-time expenses, EBITDA amounted to USD 30 million or 22% of sales compared to USD 28 million or 22% of sales in Q2 2015.
• Net profit amounted to USD 15 million or 10% of sales, compared to USD 16 million or 12% of sales in Q2 2015. Net profit is impacted by one-time costs of USD 4.6 million. Net profit adjusted for one-time expenses grew 10% and amounted to 13% of sales.
• Cash generated by operations amounted to USD 16 million or 12% of sales, compared to USD 23 million or 18% of sales in Q2 2015.
• The financial statements for Q2 2016 include the financials of the recently acquired Touch Bionics.
• Össur acquired 5,325,004 of own shares in Q2 2016 for approximately USD 20.8 million. 

Financial Guidance for 2016

The financial guidance for the full year of 2016 is unchanged except for capital expenditures.

• Sales growth LCY in the range of 7-9%
• Organic sales growth LCY in the range of 3-5%
• Adjusted EBITDA margin in the range of 20-21% of sales
• Capital expenditures 5% of sales (previously 3-4%)
• Effective tax rate around 26%

Jon Sigurdsson, President & CEO, comments:

"We are pleased to deliver a quarter with strong operational results and good profitability on top of an excellent comparable quarter last year. Americas had an overall strong quarter with excellent prosthetics sales growth. As we expected, EMEA had a good quarter after experiencing a soft Q1. Bracing and supports sales were once again driven by growth of high end innovative products and prosthetics sales by bionic products as well as newly launched products. In April we acquired Touch Bionics, a leader in the upper limb bionic prosthetic market. For the first time we can now offer a complete bionic portfolio to our customers."

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