Össur Hf: Q1 Results 2017

Announcement from Össur hf. No. 33/2017

Reykjavík, 27 April 2017

ÖSSUR Q1 RESULTS 2017

Highlights Q1 2017

• Sales amounted to USD 131 million compared to USD 114 million in Q1 2016, corresponding to 17% growth and 7% organic, both measured in local currency.
• Gross profit amounted to USD 82 million and 62% of sales, compared to USD 71 million and 63% of sales in Q1 2016.
• EBITDA amounted to USD 20 million or 16% of sales, compared to USD 19 million or 16% of sales in Q1 2016, corresponding to a 26% growth measured in local currency. Underlying operational margin improvements were neutralized by negative impact from changes in foreign exchange rates and temporary negative impact from acquisitions.
• Net profit grew by 13% in USD terms and amounted to USD 10 million or 8% of sales, compared to USD 9 million or 8% of sales in Q1 2016.
• Cash generated by operations amounted to USD 10 million or 7% of sales, compared to USD 16 million or 14% of sales in Q1 2016.
• Dividends of DKK 0.12 per share, corresponding to approximately 15% of the Company's net profit in 2016, were paid at the end of March 2017.
• Registration of the share capital reduction of 5,837,832 shares with a nominal value of ISK 1 each was completed on 11 April 2017. The shares were removed from trading on Nasdaq Copenhagen on 19 April 2017 and the total share capital is afterwards ISK 437,162,725.
• Össur acquired 6,689,988 of own shares in Q1 2017 for approximately USD 25 million.

Financial Guidance for 2017

The financial guidance for the full year of 2017 is unchanged:

• Sales growth LCY in the range of 7-8%
• Organic sales growth LCY in the range of 4-5%
• EBITDA margin before special items in the range of 19-20% of sales
• Capital expenditures around 4% of net sales
• Effective tax rate around 26%

Jon Sigurdsson, President & CEO, comments:

"We are pleased to deliver a quarter with solid organic sales growth and stable profitability, bearing in mind that the first quarter of the year is seasonally our weakest. EMEA and APAC had strong growth in both business segments during the quarter and we saw good performance in our prosthetics business in the Americas. Our high-end innovative products are driving growth on a global level. Integration of our recently acquired companies, Touch Bionics and Medi Prosthetics, is going as planned and we are excited to realize their potential."