Exhibit 99.1
Tornier Reports Third Quarter 2013 Results
| | • | | U.S. distribution channel transition accelerates with agreements covering 61% of U.S. revenue |
| | • | | Non-GAAP gross margin improved to 74.2% |
| | • | | Aequalis Ascend Flex™ launch tracking to plan; over 120 trained surgeon users |
AMSTERDAM, The Netherlands (November 5, 2013) — Tornier N.V. (NASDAQ: TRNX), a global medical device company focused on providing surgical solutions to orthopaedic extremity specialists, reported today its financial results for the third quarter ended September 29, 2013.
Revenue for the third quarter of 2013 was $66.7 million compared to third quarter 2012 revenue of $58.0 million, an increase of 15.1% as reported and 13.4% in constant currency. Revenue for the nine months ended September 29, 2013 totaled $227.6 million, compared to revenue of $198.5 million for the same period of 2012, an increase of 14.7% as reported and 14.0% in constant currency.
Third quarter 2013 revenue of Tornier’s extremities product categories totaled $56.9 million compared to $48.7 million for the prior year period, an increase of 16.8% as reported and 16.2% in constant currency. For the nine months ended September 29, 2013, revenue of Tornier’s extremities product categories was $189.8 million compared to $160.1 million for the prior year period, an increase of 18.5% as reported and 18.3% in constant currency.
Giving pro forma effect to Tornier’s fourth quarter 2012 acquisition of OrthoHelix Surgical Designs, Inc. to include OrthoHelix revenue in the prior year period, Tornier’s 2013 third quarter constant currency revenue growth was 1.1%, and extremities product constant currency revenue increased 1.5%. Pro forma constant currency revenue growth for the nine months ended September 29, 2013 was 3.3%, and pro forma extremities product constant currency revenue increased 4.9%.
Dave Mowry, President and Chief Executive Officer of Tornier, commented, “We believe the U.S. sales force transition is integral to positioning Tornier for achieving consistent above market revenue growth and margin expansion. During the third quarter, we made the strategic decision to accelerate this process of moving to a distribution channel with both upper and lower extremities focused sales representatives. At the end of the third quarter, agreements associated with this transition process represented approximately 61% of our U.S. revenue compared to 40% at the end of the second quarter. We expect to complete the transition agreement negotiation process by year end. While we believe the acceleration is in the best interest of the company, it has led to disruption in our current U.S. sales performance.
The transition also resulted in the expansion of our direct sales representation, which accounted for approximately one-third of our U.S. revenue at the end of the third quarter and is expected to increase to nearly 50% of U.S. revenue by year end. Our confidence in our U.S. sales channel strategy is underscored by the double-digit revenue growth during the quarter achieved by the more mature territories where transition agreements were completed early in this process.”
The Company’s third quarter 2013 adjusted EBITDA, as defined in the GAAP to non-GAAP reconciliation provided later in this release, was $4.8 million, or 7.2% of reported revenue, compared to $4.8 million, or 8.3% of revenue, in the same quarter of the prior year. For the nine months ended September 29, 2013, adjusted EBITDA decreased 3.1% to $21.3 million, or 9.3% of reported revenue, compared to $22.0 million, or 11.1% of revenue for the prior year period.
Mr. Mowry added, “We delivered adjusted EBITDA within our guidance range despite the lower than expected revenue. This was driven by an improvement in non-GAAP gross margin and prudent management of operating expenses. We believe we have the infrastructure in place to support our double-digit constant currency revenue growth and enhanced operating leverage expectations.”
Third Quarter 2013 Revenue Highlights
Extremities
| | • | | Revenue from the upper extremities joints and trauma category was $40.3 million, an increase of 1.5% in constant currency over the same quarter in 2012. This growth was primarily led by the Company’s shoulder arthroplasty portfolio, including the Aequalis™ Reversed Shoulder andAequalis™ Ascend™, which includes contribution from the third quarter 2013 launch of the AequalisAscend Flex™. |
| | • | | Revenue from Tornier’s lower extremities joints and trauma category in the third quarter of 2013 reached $13.5 million, an increase of 132.5% in constant currency. Giving pro forma effect to the OrthoHelix acquisition to include OrthoHelix revenue in the third quarter of 2012, third quarter 2013 lower extremities revenue recorded constant currency growth of 7.7%. The Company’s international roll-out of the OrthoHelix product line started with its first sale in the second quarter and first clinical case in the third quarter 2013. |
| | • | | Revenue from the sports medicine and biologics product category was $3.1 million in the third quarter of 2013, a decrease of 11.6% in constant currency over the same quarter in 2012 driven by a decline in the Company’s anchor products, partially offset by growth in the Company’s suture and BioFiber® products. The Company is in the early launch stage of its Insite™ bio anchor and unique Phantom™high strength resorbable suture. |
Large Joints
Revenue of the Company’s large joints and other product lines was $9.8 million, a decrease of 0.9% over the same quarter in 2012 on a constant currency basis. In the third quarter of 2013, this product category decreased to 14.7% of the Company’s reported global revenue, compared to 16.0% during the prior year period.
Geographic Revenue
On a geographic basis as compared to the third quarter of 2012, Tornier’s international revenue increased 10.3% as reported and 6.3% in constant currency, representing 39% of reported global revenue. Revenue in the United States increased by 18.3% and represented 61% of reported global revenue. Giving pro forma effect to the OrthoHelix acquisition to include OrthoHelix revenue in the third quarter of 2012, revenue in the United States decreased by 1.8% during the third quarter of 2013 compared to the prior year quarter.
Fourth Quarter 2013 Outlook
| | • | | For the fourth quarter of 2013, the Company projects constant currency revenue to be in the range of $73 to $ 77 million, representing constant currency growth of negative 7.6% to negative 2.6% over fourth quarter 2012 revenue. |
| | • | | Based on recent currency exchange rates, fourth quarter 2013 reported revenue is projected to be in the range of $74.4 to $78.3 million, representing reported growth of negative 5.9% to negative 0.9% over fourth quarter 2012 revenue. |
| | • | | Fourth quarter 2013 extremities product categories revenue is expected to grow negative 7.9% to negative 2.6% in constant currency. The Company projects adjusted EBITDA, as described in the GAAP to non-GAAP reconciliation provided later in this release, for the fourth quarter of 2013 to be in the range of $4.0 to $6.0 million, or 5.4% to 7.7% of reported revenue. |
Fiscal Year 2013 Outlook
| | • | | Based on the year-to-date performance and current business trends, the Company is updating its previous revenue guidance. Fiscal year 2013 constant currency revenue is now expected to be in the range of $299.2 to $303.2 million, representing constant currency growth of 7.8% to 9.3%. |
| | • | | Based on recent currency exchange rates, 2013 reported revenue is projected to be in the range of $301.9 to $305.9 million, representing reported growth of 8.8% to 10.2% over 2012 revenue. |
| | • | | Revenue of the Tornier extremities product categories in 2013 is expected to grow 10.7% to 12.3% in constant currency. Giving pro forma effect to the OrthoHelix acquisition to include OrthoHelix revenue in the full year 2012, extremities product categories revenue is expected to grow 1.4% to 2.7% in constant currency. |
| | • | | The Company projects 2013 adjusted EBITDA in the range of $25.3 to $27.3million, or 8.4% to 8.9% of reported revenue. |
Conference Call
Tornier will host a conference call today at 4:30 p.m. eastern time to discuss its third quarter 2013 financial results and its outlook for the fourth quarter and full year of 2013. The conference call will be available to interested parties through a live audio webcast available through the Company’s website atwww.tornier.com. Those without internet access may join the call from within the U.S. by dialing (877) 673-5355; outside the U.S., dial (760) 666-3805.
A telephone replay will be available for ten days following the call by dialing (855) 859-2056 for domestic participants and (404) 537-3406 for international participants. When prompted, please enter the replay pin number 75043752. For those who are not available to listen to the live webcast, the call will be archived for one year on Tornier’s website.
Forward-Looking Statements
Statements contained in this release that relate to future, not past, events are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations of future events and often can be identified by words such as “expect,” “should,” “project,” “anticipate,” “intend,” “will,” “can,” “may,” “believe,” “could,” “should,” “continue,” “outlook,” “guidance,” “future,” other words of similar meaning or the use of future dates. Examples of forward-looking statements in this release include Tornier’s financial guidance for the fourth quarter and full year 2013, Tornier’s financial goal to achieve above market revenue growth and margin expansion and return to double-digit constant currency revenue growth; Tornier’s strategy to separate its U.S. sales channel to focus on either upper or lower extremities products, transitions in Tornier’s U.S. sales channel to do so, and the scope, timing and impact on revenues of such transitions; Tornier’s expectations that direct sales representatives will account for 50% of U.S. revenue by the end of 2013, Tornier’s infrastructure and its ability to support business growth and operating leverage and the launch
and market acceptance of the Aequalis Ascend Flex™ . Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Uncertainties and risks may cause Tornier’s actual results to be materially different than those expressed in or implied by Tornier’s forward-looking statements. For Tornier, such uncertainties and risks include, among others, Tornier’s future operating results and financial performance; changes in Tornier’s arrangements with its distributors and independent sales agencies, including the alignment for either dedicated upper or lower extremities sales representatives, and transition to direct selling models in certain geographies and territories; risks associated with Tornier’s acquisition of OrthoHelix and subsequent integration activities; fluctuations in foreign currency exchange rates; the effect of global economic conditions; the European sovereign debt crisis and austerity measures; risks associated with Tornier’s international operations and expansion; the timing of regulatory approvals and introduction of new products; physician acceptance, endorsement, and use of new products; the effect of regulatory actions, changes in and adoption of reimbursement rates, product recalls; competitor activities; Tornier’s leverage and access to credit under its credit agreement; and changes in tax and other legislation. More detailed information on these and other factors that could affect Tornier’s actual results are described in Tornier’s filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. Tornier undertakes no obligation to update its forward-looking statements.
About Tornier
Tornier is a global medical device company focused on serving extremities specialists who treat orthopaedic conditions of the shoulder, elbow, wrist, hand, ankle and foot. The Company’s broad offering of over 100 product lines includes joint replacement, trauma, sports medicine, and biologic products to treat the extremities, as well as joint replacement products for the hip and knee in certain international markets. Since its founding approximately 70 years ago, Tornier’s “Specialists Serving Specialists” philosophy has fostered a tradition of innovation, intense focus on surgeon education, and commitment to advancement of orthopaedic technology stemming from its close collaboration with orthopaedic surgeons and thought leaders throughout the world. For more information regarding Tornier, visit www.tornier.com.
Use of Non-GAAP Financial Measures
To supplement Tornier’s consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), Tornier uses certain non-GAAP financial measures in this release. Reconciliations of the non-GAAP financial measures used in this release to the most comparable U.S. GAAP measures for the respective periods can be found in tables later in this release immediately following the detail of revenue by geography. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for Tornier’s financial results prepared in accordance with GAAP.
Tornier N.V.
Consolidated Statements of Operations
(in thousands, except per share data)
| | | | | | | | | | | | | | | | |
| | | Three months ended | | | Nine months ended | |
| | | (unaudited) | | | (unaudited) | |
| | | September 29,
2013 | | | September 30,
2012 | | | September 29,
2013 | | | September 30,
2012 | |
Revenue | | $ | 66,747 | | | $ | 58,015 | | | $ | 227,567 | | | $ | 198,487 | |
Cost of goods sold | | | 17,204 | | | | 15,420 | | | | 59,461 | | | | 54,529 | |
Cost of goods sold—acquisition related | | | 1,768 | | | | 310 | | | | 5,444 | | | | 415 | |
| | | | | | | | | | | | | | | | |
Gross profit | | | 47,775 | | | | 42,285 | | | | 162,662 | | | | 143,543 | |
| | | 71.6 | % | | | 72.9 | % | | | 71.5 | % | | | 72.3 | % |
Operating expenses | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | 46,797 | | | | 38,524 | | | | 150,400 | | | | 124,157 | |
Research and development | | | 4,665 | | | | 5,260 | | | | 16,390 | | | | 16,329 | |
Amortization of intangible assets | | | 3,976 | | | | 2,730 | | | | 11,597 | | | | 8,013 | |
Special charges | | | (3,918 | ) | | | 6,503 | | | | 1,009 | | | | 9,413 | |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 51,520 | | | | 53,017 | | | | 179,396 | | | | 157,912 | |
Operating (loss) income | | | (3,745 | ) | | | (10,732 | ) | | | (16,734 | ) | | | (14,369 | ) |
Other income (expense) | | | | | | | | | | | | | | | | |
Interest income | | | 85 | | | | 70 | | | | 181 | | | | 304 | |
Interest expense | | | (1,499 | ) | | | (481 | ) | | | (5,754 | ) | | | (1,430 | ) |
Foreign currency transaction (loss) gain | | | (285 | ) | | | (326 | ) | | | (1,071 | ) | | | (195 | ) |
Loss on extinguishment of debt | | | — | | | | — | | | | (1,127 | ) | | | — | |
Other non-operating income | | | 95 | | | | 56 | | | | 183 | | | | 54 | |
| | | | | | | | | | | | | | | | |
(Loss) income before income taxes | | | (5,349 | ) | | | (11,413 | ) | | | (24,322 | ) | | | (15,636 | ) |
Income tax expense | | | (943 | ) | | | (268 | ) | | | (1,405 | ) | | | (1,305 | ) |
| | | | | | | | | | | | | | | | |
Consolidated net loss | | $ | (6,292 | ) | | $ | (11,681 | ) | | $ | (25,727 | ) | | $ | (16,941 | ) |
| | | | | | | | | | | | | | | | |
Net loss per share | | | | | | | | | | | | | | | | |
Basic and diluted | | $ | (0.13 | ) | | $ | (0.29 | ) | | $ | (0.57 | ) | | $ | (0.43 | ) |
Weighted average ordinary shares outstanding | | | | | | | | | | | | | | | | |
Basic and diluted | | | 48,068 | | | | 39,708 | | | | 44,942 | | | | 39,537 | |
Tornier N.V.
Condensed Consolidated Balance Sheets
(in thousands)
| | | | | | | | |
| | | September 29,
2013 | | | December 30,
2012 | |
| | | (unaudited) | | | | |
Assets | | | | | | | | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 62,552 | | | $ | 31,108 | |
Accounts receivable, net | | | 48,633 | | | | 54,192 | |
Inventories | | | 84,584 | | | | 86,697 | |
Deferred income taxes and other current assets | | | 24,456 | | | | 25,321 | |
| | | | | | | | |
Total current assets | | | 220,225 | | | | 197,318 | |
Instruments, net | | | 58,657 | | | | 51,394 | |
Property, plant and equipment, net | | | 41,797 | | | | 37,151 | |
Goodwill and intangibles, net | | | 367,405 | | | | 366,398 | |
Deferred income taxes and other assets | | | 2,647 | | | | 1,966 | |
| | | | | | | | |
Total assets | | $ | 690,731 | | | $ | 654,227 | |
| | | | | | | | |
Liabilities and shareholders’ equity | | | | | | | | |
Current liabilities | | | | | | | | |
Short-term borrowing and current portion of long-term debt | | $ | 1,229 | | | $ | 4,595 | |
Accounts payable | | | 13,862 | | | | 11,526 | |
Accrued liabilities, deferred income taxes and other current liabilities | | | 54,896 | | | | 44,505 | |
| | | | | | | | |
Total current liabilities | | | 69,987 | | | | 60,626 | |
Other long-term debt | | | 66,070 | | | | 115,457 | |
Deferred income taxes and other long-term liabilities | | | 31,337 | | | | 42,065 | |
| | | | | | | | |
Total liabilities | | | 167,394 | | | | 218,148 | |
Shareholders’ equity | | | 523,337 | | | | 436,079 | |
| | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 690,731 | | | $ | 654,227 | |
| | | | | | | | |
Tornier N.V.
Consolidated Statements of Cash Flow
(in thousands)
| | | | | | | | | | | | | | | | |
| | | Three months ended | | | Nine months ended | |
| | | (unaudited) | | | (unaudited) | |
| | | September 29,
2013 | | | September 30,
2012 | | | September 29,
2013 | | | September 30,
2012 | |
Cash flows from operating activities | | | | | | | | | | | | | | | | |
Consolidated net loss | | $ | (6,292 | ) | | $ | (11,681 | ) | | $ | (25,727 | ) | | $ | (16,941 | ) |
Adjustments to reconcile consolidated net loss to net cash provided by (used in) operating activities | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | 9,022 | | | | 7,051 | | | | 26,803 | | | | 21,398 | |
Impairment of fixed assets | | | — | | | | 79 | | | | — | | | | 1,028 | |
Lease termination costs | | | — | | | | 731 | | | | — | | | | 731 | |
Non-cash foreign currency (gain) loss | | | 293 | | | | (594 | ) | | | 1,079 | | | | (217 | ) |
Deferred income taxes | | | 141 | | | | 305 | | | | 1,929 | | | | (147 | ) |
Share-based compensation | | | 1,684 | | | | 1,712 | | | | 4,753 | | | | 5,108 | |
Non-cash interest expense and discount amortization | | | 190 | | | | — | | | | 756 | | | | — | |
Inventory obsolescence | | | 2,203 | | | | 857 | | | | 6,382 | | | | 2,913 | |
Loss on extinguishment of debt | | | — | | | | — | | | | 1,127 | | | | — | |
Gain from reversal of contingent consideration liability | | | (4,947 | ) | | | — | | | | (4,947 | ) | | | — | |
Inventory step up from acquisition | | | 1,768 | | | | — | | | | 5,444 | | | | — | |
Other non-cash items affecting earnings | | | (687 | ) | | | 893 | | | | 619 | | | | 2,144 | |
Changes in operating assets and liabilities | | | | | | | | | | | | | | | | |
Accounts receivable | | | 4,055 | | | | 4,817 | | | | 5,400 | | | | 4,533 | |
Inventories | | | (3,782 | ) | | | (1,598 | ) | | | (5,842 | ) | | | (3,474 | ) |
Accounts payable and accruals | | | (5,235 | ) | | | (3,847 | ) | | | 311 | | | | (3,429 | ) |
Other current assets and liabilities | | | 4,464 | | | | (142 | ) | | | 2,403 | | | | (1,317 | ) |
Other non-current assets and liabilities | | | (2,297 | ) | | | (763 | ) | | | (2,169 | ) | | | (1,194 | ) |
| | | | | | | | | | | | | | | | |
Net cash provided by (used in) operating activities | | | 580 | | | | (2,180 | ) | | | 18,321 | | | | 11,136 | |
Cash flows from investing activities | | | | | | | | | | | | | | | | |
Acquisition-related cash payments | | | (1,635 | ) | | | 433 | | | | (7,758 | ) | | | (3,656 | ) |
Additions of instruments | | | (4,115 | ) | | | (1,474 | ) | | | (16,565 | ) | | | (9,245 | ) |
Purchases of property, plant and equipment | | | (2,740 | ) | | | (4,182 | ) | | | (7,518 | ) | | | (7,886 | ) |
| | | | | | | | | | | | | | | | |
Net cash (used in) investing activities | | | (8,490 | ) | | | (5,223 | ) | | | (31,841 | ) | | | (20,787 | ) |
Cash flows from financing activities | | | | | | | | | | | | | | | | |
Change in short-term debt | | | — | | | | 6,298 | | | | (1,000 | ) | | | 9,350 | |
Repayments of long-term debt | | | (359 | ) | | | (4,282 | ) | | | (53,688 | ) | | | (8,233 | ) |
Proceeds from issuance of long-term debt | | | — | | | | 136 | | | | — | | | | 5,172 | |
Deferred financing costs | | | (58 | ) | | | — | | | | (111 | ) | | | — | |
Issuance of ordinary shares | | | 10,597 | | | | 937 | | | | 98,853 | | | | 7,108 | |
| | | | | | | | | | | | | | | | |
Net cash provided by financing activities | | | 10,180 | | | | 3,089 | | | | 44,054 | | | | 13,397 | |
Effect of currency exchange rates on cash and cash equivalents | | | 1,567 | | | | 1,389 | | | | 910 | | | | 47 | |
| | | | | | | | | | | | | | | | |
Increase in cash and cash equivalents | | | 3,837 | | | | (2,925 | ) | | | 31,444 | | | | 3,793 | |
Cash and cash equivalents at beginning of period | | | 58,715 | | | | 61,424 | | | | 31,108 | | | | 54,706 | |
| | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | | $ | 62,552 | | | $ | 58,499 | | | $ | 62,552 | | | $ | 58,499 | |
| | | | | | | | | | | | | | | | |
Tornier N.V.
Selected Revenue Information
(in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three months ended | | | Nine months ended | |
| | | (unaudited) | | | | | | (unaudited) | | | | |
| | | September 29,
2013 | | | September 30,
2012 | | | Percent
change | | | September 29,
2013 | | | September 30,
2012 | | | Percent
change | |
Revenue by product category | | | | | | | | | | | | | | | | | | | | | | | | |
Upper extremity joints and trauma | | $ | 40,293 | | | $ | 39,429 | | | | 2.2 | % | | $ | 136,258 | | | $ | 129,434 | | | | 5.3 | % |
Lower extremity joints and trauma | | | 13,530 | | | | 5,815 | | | | 132.7 | % | | | 42,514 | | | | 19,333 | | | | 119.9 | % |
Sports medicine and biologics | | | 3,117 | | | | 3,487 | | | | -10.6 | % | | | 11,051 | | | | 11,363 | | | | -2.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total extremities | | | 56,940 | | | | 48,731 | | | | 16.8 | % | | | 189,823 | | | | 160,130 | | | | 18.5 | % |
Large joints and other | | | 9,807 | | | | 9,284 | | | | 5.6 | % | | | 37,744 | | | | 38,357 | | | | -1.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 66,747 | | | $ | 58,015 | | | | 15.1 | % | | $ | 227,567 | | | $ | 198,487 | | | | 14.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Revenue by geography | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 40,678 | | | $ | 34,377 | | | | 18.3 | % | | $ | 134,244 | | | $ | 110,647 | | | | 21.3 | % |
International | | | 26,069 | | | | 23,638 | | | | 10.3 | % | | | 93,323 | | | | 87,840 | | | | 6.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 66,747 | | | $ | 58,015 | | | | 15.1 | % | | $ | 227,567 | | | $ | 198,487 | | | | 14.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Tornier N.V.
Reconciliation of Revenue to Non-GAAP Revenue on a Constant Currency Basis
(in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | Three months ended | �� | | | |
| | | (unaudited) | | | | |
| | | September 29, 2013 | | | September
30, 2012 | | | | |
| | | Revenue as
reported | | | Foreign
exchange
impact as
compared to
prior period | | | Revenue on a
constant
currency
basis | | | Revenue as
reported | | | Percent
change on
a constant
currency
basis | |
Revenue by product category | | | | | | | | | | | | | | | | | | | | |
Upper extremity joints and trauma | | $ | 40,293 | | | $ | (287 | ) | | $ | 40,006 | | | $ | 39,429 | | | | 1.5 | % |
Lower extremity joints and trauma | | | 13,530 | | | | (10 | ) | | | 13,520 | | | | 5,815 | | | | 132.5 | % |
Sports medicine and biologics | | | 3,117 | | | | (36 | ) | | | 3,081 | | | | 3,487 | | | | -11.6 | % |
| | | | | | | | | | | | | | | | | | | | |
Total extremities | | | 56,940 | | | | (333 | ) | | | 56,607 | | | | 48,731 | | | | 16.2 | % |
Large joints and other | | | 9,807 | | | | (607 | ) | | | 9,200 | | | | 9,284 | | | | -0.9 | % |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 66,747 | | | $ | (940 | ) | | $ | 65,807 | | | $ | 58,015 | | | | 13.4 | % |
| | | | | | | | | | | | | | | | | | | | |
Revenue by geography | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 40,678 | | | $ | — | | | $ | 40,678 | | | $ | 34,377 | | | | 18.3 | % |
International | | | 26,069 | | | | (940 | ) | | | 25,129 | | | | 23,638 | | | | 6.3 | % |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 66,747 | | | $ | (940 | ) | | $ | 65,807 | | | $ | 58,015 | | | | 13.4 | % |
| | | | | | | | | | | | | | | | | | | | |
| | |
| | | Nine months ended | | | | |
| | | (unaudited) | | | | |
| | | September 29, 2013 | | | September
30, 2012 | | | | |
| | | Revenue as
reported | | | Foreign
exchange
impact as
compared to
prior period | | | Revenue on a
constant
currency
basis | | | Revenue as
reported | | | Percent
change on
a constant
currency
basis | |
Revenue by product category | | | | | | | | | | | | | | | | | | | | |
Upper extremity joints and trauma | | $ | 136,258 | | | $ | (290 | ) | | $ | 135,968 | | | $ | 129,434 | | | | 5.0 | % |
Lower extremity joints and trauma | | | 42,514 | | | | (18 | ) | | | 42,496 | | | | 19,333 | | | | 119.8 | % |
Sports medicine and biologics | | | 11,051 | | | | (39 | ) | | | 11,012 | | | | 11,363 | | | | -3.1 | % |
| | | | | | | | | | | | | | | | | | | | |
Total extremities | | | 189,823 | | | | (347 | ) | | | 189,476 | | | | 160,130 | | | | 18.3 | % |
Large joints and other | | | 37,744 | | | | (894 | ) | | | 36,850 | | | | 38,357 | | | | -3.9 | % |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 227,567 | | | $ | (1,241 | ) | | $ | 226,326 | | | $ | 198,487 | | | | 14.0 | % |
| | | | | | | | | | | | | | | | | | | | |
Revenue by geography | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 134,244 | | | $ | — | | | $ | 134,244 | | | $ | 110,647 | | | | 21.3 | % |
International | | | 93,323 | | | | (1,241 | ) | | | 92,082 | | | | 87,840 | | | | 4.8 | % |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 227,567 | | | $ | (1,241 | ) | | $ | 226,326 | | | $ | 198,487 | | | | 14.0 | % |
| | | | | | | | | | | | | | | | | | | | |
Tornier N.V.
Reconciliation of Revenue to Non-GAAP Pro Forma Revenue
(in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three months ended | |
| | | (unaudited) | |
| | | September 29, 2013 | | | September 30, 2012 | |
| | | Revenue
as
reported | | | Foreign
exchange
impact as
compared to
prior period | | | Revenue on a
constant
currency basis | | | * Proforma
adjustment
for
acquisitions | | | Proforma
Revenue on a
constant
currency basis | | | Revenue
as
reported | | | * Proforma
adjustment for
acquisitions | | | Proforma
Revenue
on a
constant
currency
basis | | | Percent
change on
a constant
currency
basis | |
Revenue by product category | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Upper extremity joints and trauma | | $ | 40,293 | | | $ | (287 | ) | | $ | 40,006 | | | $ | — | | | $ | 40,006 | | | $ | 39,429 | | | $ | 304 | | | $ | 39,733 | | | | 0.7 | % |
Lower extremity joints and trauma | | | 13,530 | | | | (10 | ) | | | 13,520 | | | | — | | | | 13,520 | | | | 5,815 | | | | 6,742 | | | | 12,557 | | | | 7.7 | % |
Sports medicine and biologics | | | 3,117 | | | | (36 | ) | | | 3,081 | | | | — | | | | 3,081 | | | | 3,487 | | | | — | | | | 3,487 | | | | -11.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total extremities | | | 56,940 | | | | (333 | ) | | | 56,607 | | | | — | | | | 56,607 | | | | 48,731 | | | | 7,046 | | | | 55,777 | | | | 1.5 | % |
Large joints and other | | | 9,807 | | | | (607 | ) | | | 9,200 | | | | — | | | | 9,200 | | | | 9,284 | | | | — | | | | 9,284 | | | | -0.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 66,747 | | | $ | (940 | ) | | $ | 65,807 | | | $ | — | | | $ | 65,807 | | | $ | 58,015 | | | $ | 7,046 | | | $ | 65,061 | | | | 1.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue by geography | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 40,678 | | | $ | — | | | $ | 40,678 | | | $ | — | | | $ | 40,678 | | | $ | 34,377 | | | $ | 7,046 | | | $ | 41,423 | | | | -1.8 | % |
International | | | 26,069 | | | | (940 | ) | | | 25,129 | | | | — | | | | 25,129 | | | | 23,638 | | | | — | | | | 23,638 | | | | 6.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 66,747 | | | $ | (940 | ) | | $ | 65,807 | | | $ | — | | | $ | 65,807 | | | $ | 58,015 | | | $ | 7,046 | | | $ | 65,061 | | | | 1.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Nine months ended | |
| | | (unaudited) | |
| | | September 29, 2013 | | | September 30, 2012 | |
| | | Revenue
as
reported | | | Foreign
exchange
impact as
compared to
prior period | | | Revenue on a
constant
currency basis | | | * Proforma
adjustment
for
acquisitions | | | Proforma
Revenue on a
constant
currency basis | | | Revenue
as
reported | | | * Proforma
adjustment for
acquisitions | | | Proforma
Revenue
on a
constant
currency
basis | | | Percent
change on
a constant
currency
basis | |
Revenue by product category | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Upper extremity joints and trauma | | $ | 136,258 | | | $ | (290 | ) | | $ | 135,968 | | | $ | — | | | $ | 135,968 | | | $ | 129,434 | | | $ | 795 | | | $ | 130,229 | | | | 4.4 | % |
Lower extremity joints and trauma | | | 42,514 | | | | (18 | ) | | | 42,496 | | | | — | | | | 42,496 | | | | 19,333 | | | | 19,735 | | | | 39,068 | | | | 8.8 | % |
Sports medicine and biologics | | | 11,051 | | | | (39 | ) | | | 11,012 | | | | — | | | | 11,012 | | | | 11,363 | | | | — | | | | 11,363 | | | | -3.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total extremities | | | 189,823 | | | | (347 | ) | | | 189,476 | | | | — | | | | 189,476 | | | | 160,130 | | | | 20,530 | | | | 180,660 | | | | 4.9 | % |
Large joints and other | | | 37,744 | | | | (894 | ) | | | 36,850 | | | | — | | | | 36,850 | | | | 38,357 | | | | — | | | | 38,357 | | | | -3.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 227,567 | | | $ | (1,241 | ) | | $ | 226,326 | | | $ | — | | | $ | 226,326 | | | $ | 198,487 | | | $ | 20,530 | | | $ | 219,017 | | | | 3.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue by geography | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 134,244 | | | $ | — | | | $ | 134,244 | | | $ | — | | | $ | 134,244 | | | $ | 110,647 | | | $ | 20,530 | | | $ | 131,177 | | | | 2.3 | % |
International | | | 93,323 | | | | (1,241 | ) | | | 92,082 | | | | — | | | | 92,082 | | | | 87,840 | | | | — | | | | 87,840 | | | | 4.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 227,567 | | | $ | (1,241 | ) | | $ | 226,326 | | | $ | — | | | $ | 226,326 | | | $ | 198,487 | | | $ | 20,530 | | | $ | 219,017 | | | | 3.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes:
| * - | Represents Pro forma Revenue adjustment for OrthoHelix acquisition related to the respective period. |
Tornier N.V.
Reconciliation of Net Loss to
Non-GAAP Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA)
(in thousands)
| | | | | | | | | | | | | | | | |
| | | Three months ended | | | Nine months ended | |
| | | (unaudited) | | | (unaudited) | |
| | | September 29,
2013 | | | September 30,
2012 | | | September 29,
2013 | | | September 30,
2012 | |
Revenue, as reported | | $ | 66,747 | | | $ | 58,015 | | | $ | 227,567 | | | $ | 198,487 | |
Net loss, as reported | | $ | (6,292 | ) | | $ | (11,681 | ) | | $ | (25,727 | ) | | $ | (16,941 | ) |
Interest income | | | (85 | ) | | | (70 | ) | | | (181 | ) | | | (304 | ) |
Interest expense | | | 1,499 | | | | 481 | | | | 5,754 | | | | 1,430 | |
Income tax expense (benefit) | | | 943 | | | | 268 | | | | 1,405 | | | | 1,305 | |
Depreciation | | | 5,046 | | | | 4,321 | | | | 15,206 | | | | 13,385 | |
Amortization | | | 3,976 | | | | 2,730 | | | | 11,597 | | | | 8,013 | |
| | | | | | | | | | | | | | | | |
Subtotal Non-GAAP EBITDA | | | 5,087 | | | | (3,951 | ) | | | 8,054 | | | | 6,888 | |
Other non-operating (income) expense | | | (95 | ) | | | (56 | ) | | | (183 | ) | | | (54 | ) |
Foreign currency transaction loss (gain) | | | 285 | | | | 326 | | | | 1,071 | | | | 195 | |
Loss on extinguishment of debt | | | — | | | | — | | | | 1,127 | | | | — | |
Share-based compensation | | | 1,684 | | | | 1,712 | | | | 4,753 | | | | 5,108 | |
Inventory step-up from acquisition | | | 1,768 | | | | 310 | | | | 5,444 | | | | 415 | |
Special Charges: | | | | | | | | | | | | | | | | |
Acquisition, integration and distribution transition costs | | | 1,029 | | | | 1,722 | | | | 4,742 | | | | 1,790 | |
Facilities consolidation initiative | | | — | | | | 2,786 | | | | — | | | | 5,254 | |
Reversal of OrthoHelix contingent consideration liability | | | (4,947 | ) | | | | | | | (4,947 | ) | | | | |
Italy bad debt expense | | | — | | | | 1,995 | | | | — | | | | 1,995 | |
Legal settlements | | | — | | | | — | | | | 1,214 | | | | — | |
Management Exit Costs | | | — | | | | — | | | | — | | | | 374 | |
| | | | | | | | | | | | | | | | |
Non-GAAP adjusted EBITDA | | $ | 4,811 | | | $ | 4,844 | | | $ | 21,275 | | | $ | 21,965 | |
| | | | | | | | | | | | | | | | |
Non-GAAP adjusted EBITDA margin | | | 7.2 | % | | | 8.3 | % | | | 9.3 | % | | | 11.1 | % |
| | | | | | | | | | | | | | | | |
Tornier N.V.
Reconciliation of Net Loss and Net Loss per Share
to Non-GAAP Adjusted Net Loss and Non-GAAP Adjusted Net Loss per Share
(in thousands)
| | | | | | | | | | | | | | | | |
| | | Three months ended | | | Nine months ended | |
| | | (unaudited) | | | (unaudited) | |
| | | September 29,
2013 | | | September 30,
2012 | | | September 29,
2013 | | | September 30,
2012 | |
Net loss, as reported | | $ | (6,292 | ) | | $ | (11,681 | ) | | $ | (25,727 | ) | | $ | (16,941 | ) |
Inventory step-up from acquisition, net of tax | | | 1,518 | | | | 250 | | | | 5,171 | | | | 335 | |
Reversal of valuation allowance from acquisition | | | — | | | | — | | | | (540 | ) | | | — | |
Loss on extinguishment of debt | | | — | | | | — | | | | 1,127 | | | | — | |
Special charges, net of tax: | | | | | | | | | | | | | | | | |
Acquisition, integration and distribution transition costs | | | 978 | | | | 1,722 | | | | 4,685 | | | | 1,790 | |
Facilities consolidation initiative | | | — | | | | 2,727 | | | | — | | | | 4,978 | |
Reversal of OrthoHelix contingent consideration liability | | | (4,947 | ) | | | — | | | | (4,947 | ) | | | — | |
Italy bad debt expense | | | — | | | | 1,995 | | | | — | | | | 1,995 | |
Legal settlements | | | — | | | | — | | | | 1,214 | | | | — | |
Management Exit Costs | | | — | | | | — | | | | — | | | | 374 | |
| | | | | | | | | | | | | | | | |
Non-GAAP adjusted net loss | | | (8,743 | ) | | | (4,987 | ) | | | (19,017 | ) | | | (7,469 | ) |
| | | | | | | | | | | | | | | | |
Net loss per share, as reported | | | | | | | | | | | | | | | | |
Basic and diluted | | $ | (0.13 | ) | | $ | (0.29 | ) | | $ | (0.57 | ) | | $ | (0.43 | ) |
Inventory step-up from acquisition, net of tax | | | 0.03 | | | | 0.01 | | | | 0.12 | | | | 0.01 | |
Reversal of valuation allowance from acquisition | | | — | | | | — | | | | (0.01 | ) | | | — | |
Loss on extinguishment of debt | | | — | | | | — | | | | 0.02 | | | | — | |
Special charges, net of tax: | | | | | | | | | | | | | | | | |
Acquisition, integration and distribution transition costs | | | 0.02 | | | | 0.04 | | | | 0.10 | | | | 0.04 | |
Facilities consolidation initiative | | | — | | | | 0.06 | | | | — | | | | 0.13 | |
Reversal of OrthoHelix contingent consideration liability | | | (0.10 | ) | | | — | | | | (0.11 | ) | | | — | |
Italy bad debt expense | | | | | | | 0.05 | | | | | | | | 0.05 | |
Legal settlements | | | — | | | | — | | | | 0.03 | | | | — | |
Management Exit Costs | | | — | | | | — | | | | — | | | | 0.01 | |
| | | | | | | | | | | | | | | | |
Non-GAAP adjusted net loss per share | | | | | | | | | | | | | | | | |
Basic and diluted | | $ | (0.18 | ) | | $ | (0.13 | ) | | $ | (0.42 | ) | | $ | (0.19 | ) |
| | | | | | | | | | | | | | | | |
Weighted average ordinary shares outstanding | | | | | | | | | | | | | | | | |
Basic and diluted | | | 48,068 | | | | 39,708 | | | | 44,942 | | | | 39,537 | |
Tornier N.V.
Reconciliation of Net Cash Provided by Operating Activities
to Non-GAAP Adjusted Free Cash Flow
(in thousands)
| | | | | | | | | | | | | | | | |
| | | Three months ended | | | Nine months ended | |
| | | (unaudited) | | | (unaudited) | |
| | | September 29,
2013 | | | September 30,
2012 | | | September 29,
2013 | | | September 30,
2012 | |
Net cash provided by operating activities, as reported | | $ | 580 | | | $ | (2,180 | ) | | $ | 18,321 | | | $ | 11,136 | |
Adjusted for: | | | | | | | | | | | | | | | | |
Cash paid related to Facilities Consolidation | | | — | | | | 1,632 | | | | — | | | | 2,595 | |
Additions of instruments, as reported | | | (4,115 | ) | | | (1,474 | ) | | | (16,565 | ) | | | (9,245 | ) |
Purchases of property, plant and equipment, as reported | | | (2,740 | ) | | | (4,182 | ) | | | (7,518 | ) | | | (7,886 | ) |
Purchases of property, plant and equipment, related to Facilities Consolidation | | | — | | | | 2,069 | | | | — | | | | 2,361 | |
| | | | | | | | | | | | | | | | |
Non-GAAP adjusted free cash flow | | $ | (6,275 | ) | | $ | (4,135 | ) | | $ | (5,762 | ) | | $ | (1,039 | ) |
| | | | | | | | | | | | | | | | |
Tornier N.V.
Reconciliation of Gross Margin and Gross Margin %
to Non-GAAP Adjusted Gross Margin and Gross Margin %
(in thousands)
| | | | | | | | | | | | | | | | |
| | | Three months ended | | | Nine months ended | |
| | | (unaudited) | | | (unaudited) | |
| | | September 29,
2013 | | | September 30,
2012 | | | September 29,
2013 | | | September 30,
2012 | |
Revenue, as reported | | $ | 66,747 | | | $ | 58,015 | | | $ | 227,567 | | | $ | 198,487 | |
Gross margin, as reported | | $ | 47,775 | | | $ | 42,285 | | | $ | 162,662 | | | $ | 143,543 | |
Gross margin %, as reported | | | 71.6 | % | | | 72.9 | % | | | 71.5 | % | | | 72.3 | % |
Adjusted for: | | | | | | | | | | | | | | | | |
Inventory step-up due to acquisition | | | 1,768 | | | | 310 | | | | 5,444 | | | | 415 | |
| | | | | | | | | | | | | | | | |
Non-GAAP adjusted gross margin | | | 49,543 | | | | 42,595 | | | | 168,106 | | | | 143,958 | |
| | | | | | | | | | | | | | | | |
Non-GAAP adjusted gross margin % | | | 74.2 | % | | | 73.4 | % | | | 73.9 | % | | | 72.5 | % |
Tornier N.V.
Reconciliation of Operating Expenses and Operating Expenses as a % of Revenue to
Non-GAAP Adjusted Operating Expenses and Non-GAAP Adjusted Operating Expenses as a % of Revenue
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine months ended | |
| | | (unaudited) | | | (unaudited) | |
| | | September 29,
2013 | | | September 30,
2012 | | | September 29,
2013 | | | September 30,
2012 | |
Revenue, as reported | | $ | 66,747 | | | $ | 58,015 | | | $ | 227,567 | | | $ | 198,487 | |
Operating Expenses, as reported | | | 51,520 | | | | 53,017 | | | | 179,396 | | | | 157,912 | |
Operating expenses as a percentage of revenue, as reported | | | 77.2 | % | | | 91.4 | % | | | 78.8 | % | | | 79.6 | % |
Adjusted for: | | | | | | | | | | | | | | | | |
Amortization of intangible assets | | | (3,976 | ) | | | (2,730 | ) | | | (11,597 | ) | | | (8,013 | ) |
Special charges | | | 3,918 | | | | (6,503 | ) | | | (1,009 | ) | | | (9,413 | ) |
| | | | | | | | | | | | | | | | |
Total adjustments | | | (58 | ) | | | (9,233 | ) | | | (12,606 | ) | | | (17,426 | ) |
Non-GAAP adjusted operating expenses | | $ | 51,462 | | | $ | 43,784 | | | $ | 166,790 | | | $ | 140,486 | |
| | | | | | | | | | | | | | | | |
Non-GAAP adjusted operating expenses as a percentage of revenue | | | 77.1 | % | | | 75.5 | % | | | 73.3 | % | | | 70.8 | % |
| | | | | | | | | | | | | | | | |
Tornier N.V.
Reconciliation of Projected 2013 Operating Loss
to Projected Non-GAAP Adjusted EBITDA
(in millions)
| | | | | | | | | | | | | | | | |
| | | Three months ended | | | Twelve months ended | |
| | | (unaudited) | | | (unaudited) | |
| | | December 29, 2013 | | | December 29, 2013 | |
| | | Low | | | High | | | Low | | | High | |
Revenue | | $ | 74.4 | | | $ | 78.3 | | | $ | 301.9 | | | $ | 305.9 | |
Operating Loss | | $ | (10.7 | ) | | $ | (6.5 | ) | | $ | (27.4 | ) | | $ | (23.2 | ) |
Adjusted for: | | | | | | | | | | | | | | | | |
Inventory step-up due to acquisition | | | 0.6 | | | | 0.4 | | | | 6.0 | | | | 5.8 | |
Depreciation and amortization expense | | | 10.1 | | | | 9.5 | | | | 36.9 | | | | 36.3 | |
Share-based compensation | | | 2.2 | | | | 1.8 | | | | 7.0 | | | | 6.6 | |
Special charges | | | 1.8 | | | | 0.8 | | | | 2.8 | | | | 1.8 | |
| | | | | | | | | | | | | | | | |
Total adjustments | | $ | 14.7 | | | $ | 12.5 | | | $ | 52.7 | | | $ | 50.5 | |
Non-GAAP adjusted EBITDA | | $ | 4.0 | | | $ | 6.0 | | | $ | 25.3 | | | $ | 27.3 | |
| | | | | | | | | | | | | | | | |
Non-GAAP adjusted EBITDA margin | | | 5.4 | % | | | 7.7 | % | | | 8.4 | % | | | 8.9 | % |
| | | | | | | | | | | | | | | | |
Tornier believes the non-GAAP financial measures presented above provide additional meaningful information for measuring Tornier’s financial performance and are measures frequently used by Tornier’s management, as well as securities analysts and investors. Tornier uses the non-GAAP financial measures as supplemental measures of its performance and believes such measures facilitate operating performance comparisons from period to period and company to company by factoring out potential differences caused by charges not related to Tornier’s regular, ongoing business, including non-cash charges, certain large and unpredictable charges, acquisitions, dispositions, litigation settlements and tax positions. Tornier’s management uses the non-GAAP financial measures to assess the performance of Tornier’s core operations, analyze underlying trends in Tornier’s businesses, establish operational goals and forecasts, and evaluate Tornier’s performance period over period and in relation to the operating results of its competitors. Tornier’s management uses the non-GAAP financial measures to help allocate its resources to both ongoing and prospective business initiatives and to help make budgeting and spending decisions, for example, between product development expenses, research and development expenses, and selling, general and administrative expenses. Tornier’s management is evaluated on the basis of several of these non-GAAP financial measures when determining achievement of performance incentive compensation goals.
Tornier believes that non-GAAP financial measures have limitations as analytical tools since they do not reflect all of the amounts associated with Tornier’s operating results as determined in accordance with GAAP and should only be used to evaluate Tornier’s operating results in conjunction with the corresponding GAAP measures. Accordingly, revenue on a constant currency basis should not be used as a substitute for revenue, EBITDA, adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per share should not be used as a substitute for net income or net income per share; adjusted EBITDA margin should not be used as a substitute for net margin or operating margin; free cash flow
should not be used as a substitute for cash flows from operations; and adjusted gross margin and gross margin percentage should not be used as a substitute for gross margin or gross margin as a percentage of revenue, in each case as determined in accordance with GAAP. Neither EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted net income (loss) per share, free cash flow, adjusted gross margin and gross margin as a percentage of revenue, should be an indication of whether cash flow will be sufficient to fund Tornier’s cash requirements. Additionally, the calculation of non-GAAP financial measures is not based on any comprehensive or standard set of accounting rules or principles. Accordingly, Tornier’s definitions of revenue on a constant currency basis, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted net income (loss) per share, free cash flow, adjusted gross margin and gross margin as a percentage of revenue, may differ from the definitions of other companies using the same or similar names limiting, to some extent, the usefulness of such measures for comparison purposes.
For further information regarding why Tornier believes that these non-GAAP financial measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to Tornier’s current report on Form 8-K filed today with the Securities and Exchange Commission which attaches this release as an exhibit. This current report on Form 8-K is available on the SEC’s website at www.sec.gov or on Tornier’s website at www.tornier.com.
CONTACT:
Tornier N.V.
Shawn McCormick
Chief Financial Officer
(952) 426-7646
shawn.mccormick@tornier.com
