Symmetry Medical Reports Third Quarter 2009 Financial Results

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Revenue for the third quarter 2009 was $87.2 million, compared to $112.1 million reported in the third quarter 2008. Revenues during the quarter were unfavorably impacted by reduced customer demand across all segments of the business as well as a foreign currency translation effect of $2.7 million.

Gross profit for the third quarter 2009 was $21.2 million, compared to $25.7 million in the third quarter 2008. The year-over-year decrease was driven by lower customer demand as well as a one-time expense of $1.0 million for facility consolidation and staff reductions in the third quarter 2009.

Gross margin percentage for the third quarter 2009 was 24.4% compared to gross margin percentage of 22.9% in the same period last year. Gross margin improved despite the significantly lower volume. Aggressive cost cutting actions as well as significant improvements at the Sheffield, UK operating site drove the increase.

Selling, general and administrative expenses declined in the third quarter 2009 to $10.8 million, a 28.7% reduction from $15.2 million in the third quarter 2008. The year-over-year decrease in the third quarter 2009 was driven primarily by aggressive cost controls as well as a $1.6 million reduction in performance based compensation and restricted stock expense. Additionally, the third quarter 2008 included $0.9 million from Sheffield, UK investigation costs which did not repeat in 2009.

Operating income for the third quarter 2009 was $10.4 million compared to $10.5 million for the third quarter 2008. Operating margin of 12.0% for the third quarter 2009 was up from 9.4% for the third quarter 2008.

The third quarter 2009 included a non-cash gain of $0.2 million for the mark to market of the Company’s interest rate derivative, compared to a non-cash gain of $1.0 million in the third quarter 2008. Other expense of $0.7 million in the third quarter 2009 compares to $3.1 million in the third quarter 2008. The primary driver of this expense is realized and unrealized foreign exchange.

Income tax expense for the third quarter 2009 was $2.9 million, compared to $3.2 million for the third quarter of 2008.

Net income for the third quarter 2009 was $5.4 million, or $0.15 per diluted share, up from net income of $2.5 million, or $0.07 per diluted share, for the third quarter of 2008.

The weighted average number of diluted shares outstanding during the third quarter of 2009 was 35,620,317.

One Comment

  1. Big trouble for Symmetry! Is this because of mismanagement? How are other Cont. Mfg's doing in this economy?

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