Third quarter highlights
" Sales USD 62.8 million, up 41% from Q3 2005.
" Organic sales growth 5%.
" Pro forma sales growth 4%.
" EBITDA USD 12.1 million, up by 17% from Q3 2005.
" EBITDA ratio 19.3%, declining from 23.2% for Q3 2005.
" Net profit USD 5.4 million, up from USD 4.0 million for Q3 2005. Net profit excluding amortization of intangible assets relating to recent acquisitions USD 7.3 million, up from 4.8 million for Q3 2005 or by 52%.
" Cash earnings per share diluted 2.72 US cents (net profit plus depreciation and amortization per share diluted), increasing from 2.18 US cents for Q3 2005 or by 25%.
" Earnings per share diluted 1.40 US cents, increasing from 1.26 US cents for Q3 2005 or by 11%.
Note: 2005 comparison numbers have been adjusted by excluding one-time unusual revenues, inventory step-up and restructuring cost related to acquisitions in the third quarter of 2005. Prior to this adjustment, profitability growth rates are significantly higher and comparison more favorable.
Jon Sigurdsson, President & CEO, comments:
"We are confident about achieving our targets for the year but our third quarter results are in the lower range of management expectations. In North America, we continue to see excellent growth in prosthetics while pro forma growth in bracing and support products is more in line with the overall market and below our long term goals. Integration and restructuring activities following our recent acquisitions are on track. During the quarter we closed down our facilities in Bothell, Washington and put significant effort into the restructuring of our bracing and support distribution network in North America. This had a temporary negative impact on sales in the region. We have been challenged in Europe and will see a more gradual improvement in that area. Our UK headquarters were moved from Blackburn to Manchester in the beginning of September and at the same time all UK distribution was moved to Eindhoven. We are steadily moving beyond the most challenging period. Ossur's long term prospects remain positive and we are confident that our strategy will allow us to reach our ambitious goals for future growth and profitability."
