Kensey Nash Reports Fourth Quarter and Fiscal Year 2008 Results
Fourth Quarter Results
Revenues: Sales and Royalties. Total revenues increased 29% to a recordlevel of $22.0 million in the Company's fourth fiscal quarter ended June 30,2008, from $17.0 million in the comparable prior year period.
Net sales increased 42% to $15.0 million from $10.5 million in the fourthquarter of fiscal 2007. Net sales of biomaterials products increased 37% to$13.3 million from $9.7 million in the comparable prior year period due tostrong sales in both orthopaedic and cardiovascular product lines. Orthopaedicsales increased 39% to $8.4 million from $6.0 million in the prior yearperiod, primarily due to increased sales of products in the Company's sportsmedicine and spine product portfolios. Cardiovascular sales of $4.2 million,consisting primarily of sales of vascular closure product components to St.Jude Medical, increased 29%, from $3.2 million in the prior year period.
Sales of endovascular products during the quarter increased 103% to $1.6million from $806,000 in the prior year period. Endovascular sales includeddirect sales to customers for the months of April and May, as well as sales ofproduct to Spectranetics Corporation (Nasdaq: SPNC) in June, after theCompany's completion of the sale of its endovascular business (see below).
Royalty income increased 8% to $7.0 million compared to $6.5 million inthe comparable prior year period. Royalty income included $5.7 million inAngio-Seal(TM) royalties and $1.2 million in royalties from Orthovita, Inc.(Nasdaq: VITA). Angio-Seal royalties were up 5% from the comparable quarter ofthe prior fiscal year due to higher than expected end-user sales whileOrthovita royalties were up 21% primarily due to the full launch of the newVITOSS(R) Bioactive Foam product during the quarter and continued strongend-user sales by Orthovita in the marketplace.
"We are extremely pleased with our fourth quarter and fiscal 2008 resultsas we exceeded our previous expectations. Our orthopaedic biomaterials saleswere excellent in the quarter and throughout the fiscal year. Angio-Sealroyalties were better than expected in the quarter and the Orthovita royaltiescontinued strong, increasing 21% in the quarter and 19% in the fiscal year.Additionally, we closed the sale of our endovascular business to Spectraneticsduring the quarter and are looking forward to a successful partnership withthem," commented Joe Kaufmann, President and CEO of the Company.
Earnings Per Share. Fourth quarter adjusted diluted earnings per share* of$0.35 represent an increase of 218% when compared with the $0.11 adjusteddiluted earnings per share for the same period in fiscal year 2007. Adjusteddiluted earnings per share* exclude the $8.1 million in net charges ($5.4million in after-tax charges, or $0.44 per share tax-effected), related to thesale of the Company's endovascular business. Adjusted diluted earnings pershare* for the fourth quarter of fiscal year 2007 excluded $4.7 million incharges ($3.1 million in after-tax charges, or $0.25 per share tax effected),for the discontinuance of the Company's embolic protection platform. Includingthese items, the fiscal year 2008 fourth quarter loss per share was ($0.09)compared to a loss of ($0.15) per share for the same period in fiscal year2007. Tax-effected equity compensation expense, which is included in adjustedearnings per share, was $0.04 and $0.03 per share for the periods ended June30, 2008 and 2007, respectively.
* Diluted earnings per share excluding after-tax special charges arenon-GAAP financial measures and should not be considered replacements for GAAPresults. For a reconciliation of these non-GAAP financial measures to the mostdirectly comparable GAAP financial measures, see the accompanyin
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