WARSAW, Ind., June 10, 2013 (GLOBE NEWSWIRE) -- Symmetry Medical Inc. (NYSE:SMA), a leading global source of innovative medical device solutions, including surgical instruments, orthopedic implants, and sterilization cases and trays, announced today that based on actual results for May, projected results for June, and the revised forecast for the second half of 2013; the Company is adjusting financial guidance for the full year 2013.
The Company now expects full year 2013 revenue to be in the range of $400 million to $415 million, compared to the previously announced revenue range of $420 million to $440 million and compared to $411 million reported and $408 million adjusted in 2012. Revenue in the OEM Solutions segment is expected to be in the range of $313 million to $323 million; up 3% to 6% compared to 2012 reported revenue of approximately $303 million and up 2% to 5% compared to 2012 adjusted revenue of approximately $308 million. Revenue in the Symmetry Surgical segment is expected to be in the range of $87 to $92 million, down (14%) to (19%) compared to 2012 reported revenue of approximately $107 million and down (7%) to (12%) compared to 2012 adjusted revenue of approximately $99 million. Adjusted 2012 revenue includes approximately $5 million of sales to one customer that changed its business relationship with Symmetry Medical to become an OEM Solutions customer beginning in 2013 and excludes approximately $3 million related to a one-time stocking order in the Symmetry Surgical segment by that same customer that occurred in the fourth quarter of 2012.
The Company now expects full year 2013 GAAP earnings per diluted share to be in the range of $0.11 to $0.21 and full year 2013 as adjusted* earnings per diluted share to be in the range of $0.40 to $0.50. This includes a negative $0.02 impact of the Medical Device Excise Tax in G&A expense. The as adjusted* earnings per diluted share guidance excludes the impact of amortization of intangible assets and debt issuance costs, stock compensation expense, acquisition-related costs, severance costs and other one-time expenses. These items are expected to negatively impact full-year 2013 GAAP earnings per diluted share by approximately $0.29.
|Estimated diluted earnings per share – GAAP||$0.00 - $0.02||$0.11 - $0.21|
|Estimated stock compensation expense||($0.02)||($0.08)|
|Estimated all other adjustments||$0.00||($0.05)|
|Estimated diluted earnings per share – as adjusted*||$0.06 - $0.08||$0.40 - $0.50|
The Company also provided financial guidance for the second quarter 2013. The Company expects second quarter 2013 revenue to be in the range of $98 million to $100 million and as adjusted* earnings per diluted share to be in the range of $0.06 to $0.08.
Thomas J. Sullivan, President and Chief Executive Officer of Symmetry Medical, stated, "Since reporting our first quarter results at the beginning of May, we now have greater visibility into second quarter performance and the corresponding forecast for the year. While we continue to make progress with the integration issues we reported in our Symmetry Surgical segment in the first quarter in both the U.S. and International markets, further efforts will be required to meet these challenges and we expect continued pressure in this business for the remainder of 2013. The integration challenges, combined with negative growth rates in surgical procedures in key markets, have led us to revise our forecast for that business. In the OEM Solutions segment, instrument and case orders have been weaker than we anticipated as a result of lower than expected volume in large product launches, continued European market weakness, and slower than expected realization of OEM supplier rationalization efforts. Accordingly, we are lowering our guidance for the year, including a slight reduction in our expectations for the OEM Solutions segment and an updated forecast for the Symmetry Surgical segment."
The preceding forward-looking estimates regarding 2013 guidance reflect current market conditions and foreign currency rates. Actual results may differ materially, and the Company refers you to forward-looking statements located at the end of the press release.
About Symmetry Medical Inc.
Symmetry Medical Inc. is a leading global source of innovative medical device solutions, including surgical instruments, orthopedic implants, and sterilization cases and trays. The Company's thousands of Teammates provide design, development and worldwide production capabilities for these products to customers in the orthopedic industry, other medical device markets, and specialized non-healthcare markets. Symmetry's trusted reputation and brands, broad Intellectual Property portfolio and commitment to innovation enable it to collaborate with hundreds of global medical device manufacturers as well as thousands of hospitals to provide solutions for today's needs and tomorrow's growth.
Adjusted Non-GAAP Measures
The adjusted measures shown in this release, including adjusted 2012 revenue and forecasted as adjusted* EPS are non-GAAP financial measures.
The as adjusted* EPS, shown in this release excludes the impact of amortization of intangible assets and debt issuance costs, stock compensation expense, acquisition related costs, and facility closure and severance costs.
Reconciliations of these non-GAAP measures to the most directly comparable GAAP measure are included above and attached hereto. These measures are not in accordance with, or an alternative for, GAAP and may be different from non-GAAP measures used by other companies. Management believes these non-GAAP measures improve management's and investors' ability to better compare the Company's ongoing financial performance between periods and with other companies.
Statements in the press release regarding Symmetry Medical Inc.'s business which are not historical facts may be "forward-looking statements" that involve risks and uncertainties, within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are predictive in nature and are frequently identified by the use of terms such as "may," "might," "will," "should," "expect," "believe," "anticipate," "plan," "estimate," "intend," and similar words indicating possible future expectations, events or actions. Such predictive statements are not guarantees of future performance, and actual outcomes and results could differ materially from our current expectations. We refer you to the "Risk Factors" and "Forward Looking-Statements" sections in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission as well as the Company's other filings with the SEC, which are available on the SEC's Web site at www.sec.gov.
|Reconciliation of Adjusted Financial Measures|
|Revenue $Mil||Revised Guidance||Tot Yr '12||Growth vs Reported|
|Low End||High End||Reported||Low End||High End|
|Total Symmetry Medical||$400||$415||$411||-3%||1%|
|Revised Guidance||Tot Yr '12||Growth vs Restated|
|Low End||High End||Restated||Low End||High End|
|Total Symmetry Medical||$400||$415||$408||-2%||2%|
CONTACT: Symmetry Medical Inc. Fred L. Hite Senior Vice President Chief Financial Officer (574) 371-2218 Investors: The Ruth Group Zack Kubow (646) 536-7020 firstname.lastname@example.orgSource:Symmetry Medical Inc.