Ossur Hf : Q1 Results 2016

Announcement from Össur hf. No. 42/2016

Reykjavík, 27 April 2016

Highlights Q1 2016

  • Sales amounted to USD 114 million compared to USD 114 million in Q1 2015, corresponding to 3% growth measured in local currency.
  • Gross profit amounted to USD 71 million and 63% of sales, compared to USD 71 million and 63% of sales in Q1 2015.
  • EBITDA amounted to USD 19 million or 16% of sales, compared to USD 21 million or 18% of sales in Q1 2015.
  • Net profit amounted to USD 9 million or 8% of sales, compared to USD 9 million or 8% of sales in Q1 2015.
  • Cash generated by operations amounted to USD 16 million or 14% of sales, compared to USD 7 million or 6% of sales in Q1 2015.
  • Dividends of DKK 0.12 per share, corresponding to approximately 16% of the Company's net profit in 2015, were paid at the end of March 2016.
  • Registration of the share capital reduction of 3,292,688 shares with a nominal value of ISK 1 each was completed on 21 March 2016.
  • On 11 April 2016 Össur acquired Touch Bionics for USD 39 million (cash and debt free basis).
  • Össur acquired 1,915,432 of own shares in Q1 2016 for USD 6.4 million. The acquisition of Touch Bionics will not affect Össur's share buyback program.

Financial Guidance for 2016

The financial guidance for the full year of 2016 is unchanged. Sales growth LCY has been added to the guidance following the acquisition of Touch Bionics.

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

Jon Sigurdsson, President & CEO, comments:

"The sales growth in the quarter is in line with expectations. The first quarter of the year is seasonally our weakest quarter. Americas had strong growth in both business segments where our newly launched Pro-Flex® was well received and contributed to the growth. We experienced a temporary slowdown in EMEA but expect to be back on track for the remainder of the year. Our product pipeline is strong and newly launched products have been performing well. In April, we entered the upper limb prosthetics market with the acquisition of Touch Bionics, which is a leader in the field. With this acquisition we can now offer a complete bionic portfolio to our customers."

You can find all announcements from Össur on our website: http://www.ossur.com/corporate/

Conference Call Össur will host a conference call on Thursday 28 April 2016 at 9:00 CET/ 7:00 GMT/ 3:00 EDT. 
To participate in the call please dial: Europe: + 45 3544 5580, +44 (0) 203 364 5374 or +46 (0) 8 505 564 74, 
The United States: + 1 855 753 2230, Iceland: +354 800 7417