Earnings Call Excerpt
Exactech, Inc. (EXAC)
Q4 2008 Earnings Call Transcript
February 19, 2009 10:00 am ET
Executives
Bill Petty – Chairman & CEO
Jody Phillips – CFO
David Petty – President
Analysts
Raj Denhoy – Thomas Weisel Partners
Bill Plovanic – Canaccord Adams
Jason Bernard [ph] – Robert W. Baird
Presentation
Operator
Ladies and gentlemen, thank you for standing by, and welcome to the Exactech, Inc., fourth quarter 2008 earnings conference call. (Operator instructions) I would now like to turn the conference over to, Dr. Bill Petty, CEO. Please go ahead, sir.
Bill Petty
Thank you, Nicole, and good morning to everyone. Thank you for joining us. We are very pleased to have you. Before we get into the meat of the conference, I do want to go through the normal disclosure statement. This release contains various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. They represent the company's expectations or beliefs concerning future events of the company's financial performance.
These forward-looking statements are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements. These factors include the effect of competitive pricing, the company's dependence on the ability of third-party manufacturers to produce components on a basis which is cost-effective to the company, market acceptance of the company's products, the effects of government regulation. Results actually achieved may differ materially from the expected results included in these statements.
First, I would like to go through some of the information for the full year, and then we will drill down a little further into the fourth quarter. Revenue for the full year 2008 was up 30% to $161.7 million, that’s from $124.2 million in 2007. Diluted earnings per share for the year were $0.87 based on a net income of $11.1 million. This compares with net income of $8.5 million or $0.72 diluted earnings per share in 2007. Net income for 2008 includes legal expenses of $2.6 million related to the ongoing Department of Justice inquiry.
To break it down a little into the product lines. Knee implant revenue for the full year increased 15% to $72.6 million. Hip implant revenue increased 1% to $22.8 million, with apples to apples comparison that means not including the Link sales in 2007, the growth in the hip product line was 23% for 2008 over 2007. Biologic & spine revenues increased 63% to $26.5 million, and this does include revenue of $7.2 million from our spine acquisition. Shoulder revenue increased 77% to $16.8 million. Other revenue of $23 million is an increase of 85% over $12.5 million in 2007 and much of that increase is due to our acquisition of our French distributor.
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