Orthofix Posts Profit in Second Quarter

Lewisville, Texas-based Orthofix International N.V. had a sold second quarter (ended June 30), including net sales of $101 million, diluted earnings per share from continuing operations of 21 cents and adjusted diluted earnings per share of 36 cents.

“I am pleased with our second quarter results and the improving outlook for our business reflected in our higher guidance. While I believe this quarter demonstrates that we have put the right strategies in place and are making good progress, we need to continue to execute against our plan to drive similar or better results going forward,” said president and CEO, Brad Mason.

Net sales were flat compared to the same prior year period; however, net sales increased by approximately 5 percent on a constant currency basis. Net sales increased for the company’s BioStim and Biologics products. Net sales in Extremity Fixation decreased 6.3 precent (an increase of 11.8 percent on a constant currency basis) compared to the same prior year period. The increase in constant currency terms was primarily due to cash collections from customers. Net sales in Spine Fixation decreased 4.6 percent year-over-year; however, second quarter sales grew 19 percent sequentially over the first quarter, “highlighting the success of the team and strategies that were put in place late last year,” according to the company.

Gross profit increased $3.4 million to $79 million, compared to $75.6 million in the same prior year period, primarily due to the effects of foreign exchange rates and lower charges for inventory shrinkage in 2015 when compared to the same period of 2014.

Net income from continuing operations for the quarter was $4.1 million, or 21 cents per diluted share, compared to net income of $3.3 million, or 18 cents per diluted share, in Q2 2014.

Adjusted net income from continuing operations for the quarter was $6.8 million, or 36 cents per diluted share, compared to adjusted net income from continuing operations of $4.6 million, or 25 cents per diluted share, in 2014.