Zimmer Reports Fourth Quarter and 2007 Financial Results Fourth Quarter Highlights
- Net Sales of $1.07 billion represents an increase of 15% reported (10% constant currency)
- Worldwide Reconstructive Sales increased 15% reported (10% constant currency)
- Diluted EPS were $1.12 reported, an increase of 10% over the prior year period, and $1.18 adjusted, an increase of 16% over the prior year period
(WARSAW, IN) January 29, 2008 -- Zimmer Holdings, Inc. (NYSE and SWX: ZMH) today reported financial results for the fourth quarter and year ended December 31, 2007. For the fourth quarter, the Company announced net sales of $1.07 billion, an increase over the prior year period of 15% reported and 10% constant currency. Diluted earnings per share for the quarter were $1.12 reported, an increase of 10%, and were $1.18 adjusted, an increase of 16%. Full year net sales were $3.9 billion, and diluted earnings per share were $3.26 reported and $4.05 adjusted, an increase of 18% adjusted over the prior year.
“We are pleased with our overall results for the fourth quarter, especially the strength of our sales across our geographic segments,” said David Dvorak, Zimmer Holdings President and CEO. “Our business units around the world responded to strong underlying growth in procedures during the quarter.”
During the quarter, the Company announced FDA approval of the Zimmer® NexGen® LPS-Flex Mobile Knee, only the second mobile bearing knee system to be approved for sale in the United States. The Company says that it has begun limited release of the LPS-Flex Mobile Knee and expects general availability in the U.S. in mid-2008. In addition, the Company completed its acquisition of ORTHOsoft Inc., a leader in computer surgical navigation in orthopaedics.
In the fourth quarter, the Company purchased 1.62 million common shares for a total of $116 million under its stock repurchase program, leaving authority to make up to $621.1 million in additional purchases through December 31, 2008. For the full year 2007, the Company purchased 7.2 million shares for a total of $576.3 million.
About the Company
Founded in 1927 and headquartered in Warsaw, Indiana, Zimmer is a worldwide leader in designing, developing, manufacturing and marketing orthopaedic reconstructive, spinal and trauma devices, dental implants, and related orthopaedic surgical products. Zimmer has operations in more than 25 countries around the world and sells products in more than 100 countries. Zimmer’s 2007 sales were approximately $3.9 billion. The Company is supported by the efforts of more than 7,500 employees worldwide.
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For more information about Zimmer, visit www.zimmer.com
Note on Non-GAAP Financial Measures
As used in this press release, the term “adjusted” refers to operating performance measures that exclude expenses incurred in connection with the third quarter 2007 settlement with the U.S. Department of Justice and acquisition, integration and other expenses. The term “ constant currency” refers to any financial measure that excludes the effect of changes in foreign currency exchange rates. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measure are included in this press release.
This press release contains forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 based on current expectations, estimates, forecasts and projections about the orthopaedics industry, management’s beliefs and assumptions made by management. Forward-looking statements may be identified by the use of forward-looking terms such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “assumes,” “guides,” “targets,” “forecasts,” and “seeks” or the negative of such terms or other variations on such terms or comparable terminology. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, our ability to successfully integrate acquired businesses, our compliance with the Deferred Prosecution Agreement through March 2009 and the Corporate Integrity Agreement through 2012, the impact of our enhanced healthcare compliance global initiatives and business practices on our relationships with customers and consultants, our market share and our overall financial performance,the outcome of the Department of Justice Antitrust Division investigation announced in June 2006, the outcome of the informal investigation by the U.S. Securities and Exchange Commission into Foreign Corrupt Practices Act matters announced in October 2007, price and product competition, rapid technological development, demographic changes, dependence on new product development, the mix of our products and services, supply and prices of raw materials and products, customer demand for our products and services, control of costs and expenses, our ability to form and implement alliances, international growth, governmental laws and regulations affecting our U.S. and international businesses, including tax obligations and risks, product liability and intellectual property litigation losses, reimbursement levels from third-party payors, general industry and market conditions and growth rates and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. For a further list and description of such risks and uncertainties, see our periodic reports filed with the U.S. Securities and Exchange Commission. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be set forth in our periodic reports. Readers of this document are cautioned not to place undue reliance on these forward-looking statements, since, while we believe the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these forward-looking statements will prove to be accurate. This cautionary statement is applicable to all forward-looking statements contained in this document.
Contacts
Media
Brad Bishop
574-372-4291
bradley.bishop@zimmer.com
Investors
James T. Crines
574-372-4264
james.crines@zimmer.com
Sean O'Hara
574-372-8032
sean.f.ohara@zimmer.com
