Ossur Hf

Q4 and FY Results 2016

 

Announcement from Össur hf. No. 08/2017 Reykjavík, 7 February 2017

Highlights Q4 2016

• Sales amounted to USD 138 million compared to USD 125 million in Q4 2015, corresponding to local currency growth of 13% and 4% organic growth.
• Gross profit amounted to USD 87 million or 63% of sales, compared to USD 78 million or 63% of sales in Q4 2015.
• EBITDA amounted to USD 26 million or 19% of sales, compared to USD 25 million or 20% of sales in Q4 2015.
• Net profit amounted to USD 14 million or 10% of sales, compared to USD 13 million or 10% of sales in Q4 2015.
• Cash flow from operations amounted to USD 28 million or 20% of sales, compared to USD 31 million or 25% of sales in Q4 2015.
• The safe harbor share buyback program that was launched in December 2015 ended in November 2016. A new share buyback program was initiated in December 2016 where the Company may purchase up to 5,000,000 shares.
• In December, Össur and Nordic Investment Bank (NIB) signed an agreement for EUR 50 million financing.

Highlights Full Year 2016

• Sales amounted to USD 521 million compared to USD 483 million in 2015, corresponding to local currency growth of 9% and 4% organic growth.
• Bracing and supports sales growth was 2% and 2% organic, both measured in local currency.
• Prosthetics sales growth was 19% and 7% organic, both measure in local currency.
• Gross profit amounted to USD 328 million or 63% of sales, compared to USD 303 million or 63% of sales in 2015.
• EBITDA before special items amounted to USD 98 million or 19% of sales, compared to USD 99 million or 20% of sales in 2015.
• Net profit amounted to USD 51 million or 10% of sales compared to USD 51 million or 11% of sales in 2015.
• Changes in foreign exchange rates had a negative impact on the reported sales and profits when comparing to prior year results.
• Cash flow from operations amounted to USD 88 million or 17% of sales compared to USD 84 million or 17% of sales in 2015. Capital expenditure to net sales was 4.7%.
• The Board of Directors will propose to the Annual General Meeting that the Company pays a cash dividend of DKK 0.12 per share for 2016, equivalent to 15% of net profit in 2016.
• In 2016, Össur purchased 7,853,968 of own shares for approximately DKK 193 million (USD 30 million).
• The Board of Directors will also propose to the Annual General Meeting to reduce the share capital by cancelling 5,837,832 of the Company's own shares.

 

Financial Guidance for 2017

The financial guidance for the full year of 2017 is as follows:

• Sales growth LCY in the range of 7-8%
• Organic sales growth LCY in the range of 4-5%
• EBITDA before special items margin in the range of 19-20%
• Capital expenditures around 4% of net sales
• Effective tax rate around 26%

 

Jon Sigurdsson, President & CEO, comments:

"We are happy to close another year with strong operational results. Sales growth was good in both EMEA and Americas, and in both product segments. We acquired two great companies during the year, Medi Prosthetics and Touch Bionics. Medi Prosthetics brings a full line of products allowing us to offer a complete lower extremity portfolio to our customers and the addition of Touch Bionics allows us to add cutting edge upper extremity prosthetics to our range of products. On the bracing and supports side we had an exciting year of new product launches including our latest OA brace, the Unloader^® Hip."

Conference Call Össur will host a conference call on Wednesday 8 February 2017 at 9:00 CET/ 8:00 GMT/ 3:00 EDT.  To participate in the call please dial: Europe: [phone], [phone] or [phone],  The United States: + 1 855 753 2230 Iceland: [phone]

2016 Q4 Investor Presentation
Q4&FY 2016 Company Announcement and Consolidated Financial Statements

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Source: Ossur Hf via Globenewswire