Zimmer Earnings Exceed Wall Street's Expectations
02/09/04
How Zimmer Holdings stock has performed for us: +143.9% in
27.3 months (+48% per year). How their options have performed
for us: +733% in 6.5 months.
Today Zimmer released their fourth quarter
and 2003 financial results. Excluding the costs of acquiring
Centerpulse and InCentive Capital, Zimmer's earnings came
in at 51 cents per share. Wall Street had expected 47 cents
per share. Further details are in the following excerpt from
the company's press release:
Fourth Quarter Highlights
-- Net Sales increased 90% reported,
and 19% combined* (13% constant currency*) to $702 million
-- Worldwide Reconstructive Sales (including
Dental) increased 97% reported, and 20% combined* (14% constant
currency*)
-- Diluted EPS were $0.15 reported, and
$0.51 adjusted*, an increase of 38% over prior year
-- Over $250 million of acquisition-related
borrowings paid down in the quarter
-- Increasing 2004 Diluted EPS guidance
to a range from $1.61 to $1.64 reported and $2.07 to $2.10
adjusted*
Full-Year Highlights
-- Net Sales increased 39% reported, and
20% combined* (15% constant currency*) to $1.9 billion
-- Worldwide Reconstructive Sales (including
Dental) increased 43%
reported, and 22% combined* (17% constant currency*)
-- Diluted EPS (before the cumulative effect
of change in accounting principle for instruments) were $1.38
reported, were $1.80 adjusted*, an increase of 37% over prior
year
-- Operating cash flow of nearly $500 million
-- $3.4 billion Centerpulse AG and InCentive
Capital AG acquisitions completed
-- Zimmer Institute opened and nearly
500 surgeons trained on MIS(TM) 2-Incision(TM) Hip Procedure
*Note on Non-GAAP Financial Measures
As used in this press release, the
term "combined" sales includes Centerpulse for the
fourth quarter of 2002 in order to provide more meaningful
year-to-year comparisons. The terms "Ex FX" and
"constant currency" as used herein refer to sales
growth measurements computed by eliminating the effect of
changes in foreign currency exchange rates between periods.
The term "adjusted" refers to operating performance
measures that exclude acquisition and integration expenses,
in-process research and development write-offs, inventory
step-up and the cumulative effect of the change in accounting
principle for instruments for the fourth quarter and full-year
2003. Reconciliations of non-GAAP measures to the most directly
comparable GAAP measure are included in this press release,
a Form 8-K filed February 9, 2004, and through the company's
website at www.zimmer.com.
The full press release can be found at www.zimmer.com.
SOURCE Zimmer Holdings, Inc.
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