RTI Biologics Inc. (RTI), a provider of orthopedic and other biologic implants, announced that it has reported operating results for the third quarter ended Sept. 30.
In a release on November 4, the company noted earnings details:
-Achieved quarterly revenues of $41.8 million, with gross margin of 48 percent.
-Achieved growth in the domestic sports medicine business of 20 percent over third quarter 2009.
-Signed an exclusive, 10-year distribution agreement with Zimmer Dental Inc. for biologic implants for the dental market worldwide.
-Signed an exclusive agreement with Athersys Inc. to provide RTI access to its Multipotent Adult Progenitor Cell (MAPC) technologies.
-Signed a distribution agreement with SeaSpine, a new distributor for spinal implants, and launched a new cervical construct.
-Launched a new spine implant with Medtronic.
-Net loss of $133.1 million, or $2.43 per fully diluted share, included a non-cash goodwill impairment charge.
-Adjusted net income, excluding the impairment charge, was $1.6 million, or $0.03 per fully diluted share.
“Revenues in the third quarter met expectations as our direct businesses, including sports medicine, demonstrated continued strength. In addition, we are pleased to have completed our revised distribution agreement with Zimmer and signed the licensing agreement with Athersys during the quarter,” said Brian K. Hutchison, chairman and CEO of RTI. “We remain confident that we will reach our financial goals for the rest of the year despite challenging conditions in some of our end markets.”
Revenues of $41.8 million for the third quarter of 2010 decreased 2 percent compared to the third quarter of 2009. Domestic revenues of $37.6 million for the third quarter increased 1 percent on the strength of the direct sports medicine business. International revenues of $4.2 million decreased 23 percent primarily due to economic weakness in several international markets. During the third quarter, currency exchange fluctuations resulted in a decrease in revenues of $376,000.
For the third quarter of 2010, the company reported a net loss of $133.1 million and a net loss per fully diluted share of $2.43 based on 54.8 million fully diluted shares outstanding, compared to net income of $2.3 million and net income per fully diluted share of $0.04 for the third quarter 2009, based on 55.0 million fully diluted shares outstanding.
Third quarter results include a decrease in income of $134.7 million, or $2.46 per fully diluted share, due to a non-cash goodwill impairment charge. The impairment charge is a result of an analysis of recorded goodwill in accordance with the financial accounting and reporting requirements of the Financial Accounting Standards Board ASC 350, Goodwill and Other Intangible Assets, considering the decline in the market value of the company’s equity during the third quarter.
The company reaffirmed previously issued 2010 fiscal guidance that full year revenues are estimated to be between $165 million and $168 million. Excluding the impact of the goodwill impairment charge taken in the third quarter, the full year earnings per fully diluted share are expected to be in the range of $0.10 to $0.12, based on 55.0 million fully diluted shares outstanding.