Exhibit 99.1
Regeneration Technologies Announces Fifth
Consecutive Quarter Of Profitability
Company Will Hold Conference Call To Review
Third Quarter Results On Oct. 21, 2003 At 11 A.M. ET
ALACHUA, Fla., Oct. 20 /PRNewswire-FirstCall/ -- Regeneration
Technologies, Inc. (Nasdaq: RTIX) (RTI), a leading processor of orthopedic,
cardiovascular and other allograft implants, today reported results of
operations for the third quarter and first nine months of 2003. The company
has now achieved five consecutive quarters of profitability.
For the three month period ended Sept. 30, 2003, the company reported a 10
percent increase in net revenues to $20.2 million compared to the
$18.3 million in third quarter 2002. Third quarter net income was
$1.6 million compared to net income of $226 thousand for third quarter 2002.
Net income per diluted share for the third quarter 2003 was $0.06. This
compares to net income per diluted share of $0.01 for third quarter 2002.
Spinal allograft net revenues were $13.1 million in the third quarter 2003
compared to $10.6 million for the same period in 2002. Sports medicine net
revenues were $2.2 million in the third quarter 2003 compared to $2.5 million
for the same period in 2002. Cardiovascular net revenues were $1.4 million in
the third quarter 2003 compared to $1.0 million in the third quarter 2002.
General orthopedic allograft net revenues were $3.0 million compared to
$3.9 million for the same period in 2002.
"We are pleased with our continued strong operating performance," said
Brian K. Hutchison, chairman, president and CEO for RTI. "The success of our
tissue procurement and processing improvement initiatives have resulted in
increased availability of allografts for surgeries and has provided RTI the
opportunity to explore alternative distribution channels for our implants."
Net revenues for the nine months ended Sept. 30, 2003 increased by 31
percent to $63.1 million compared to $48.2 million for the first nine months
of 2002. Net income was $4.9 million for the first nine months of 2003
compared to a net loss of $14.4 million for the first nine months of 2002.
Net income per diluted share for the first nine months of 2003 was $0.18
compared to a $0.66 net loss per diluted share for the first nine months of
2002.
For the nine months ended Sept. 30, 2003, spinal allograft net revenues
were $40.2 million compared to $25.0 million for the same period in 2002.
Sports medicine net revenues were $6.6 million in the first nine months of
2003 compared to $7.2 million for the same period in 2002. Cardiovascular net
revenues were $3.9 million in the first nine months of 2003 compared to
$2.0 million in the first nine months of 2002. General orthopedic allograft
net revenues were $10.9 million compared to $12.9 million for the same period
in 2002.
"Due to recent communications from our distributor of spinal implants
concerning a substantial inventory reduction program in the fourth quarter,
RTI is unable to provide full year guidance at this time," Hutchison said. "We
remain committed to providing high quality tissue implants to those in need.
All indications are that demand is still very high, and we will work
diligently to continue to fulfill our commitment to donor families to help as
many people as possible with our allograft implants."
Conference Call
RTI will hold a live conference call and simultaneous audio web cast on
Tuesday, Oct. 21 at 11:00 a.m. ET to discuss the 2003 third quarter results.
The conference call can be accessed by dialing 1-888-791-2132, passcode RTIXQ
THREE. The web cast can be accessed through the investor section of RTI's web
site at www.rtix.com. A telephone replay of the call will be available through
Nov. 21, 2003 and can be accessed by calling 1-800-925-2968; the replay will
also be available at www.rtix.com.
About Regeneration Technologies, Inc.
RTI processes allograft tissue into shaped implants for use in orthopedic,
cardiovascular and other surgeries with a commitment to science, safety and
innovation. By processing allograft tissue into forms that can be used in many
types of surgical procedures, RTI enables patients to benefit from the gift of
donated tissues. Allografts processed by RTI include the patented MD-SeriesTM
threaded bone dowels, Cornerstone-SR(TM) blocks, Opteform(R) and Optefil(TM)
allograft pastes, Osteofil/Regenafil(TM) injectable bone paste, FasLata(TM)
fascia lata tissue, and cortical bone pins and interference screws.
RTI also holds the patent on the BioCleanse(TM) process, the only proven
tissue sterilization process validated to eliminate viruses, bacteria, fungi
and spores from tissue without impacting the structural or biomechanical
integrity of the allograft. The company has distributed over 400,000 implants
sterilized with the BioCleanse process with zero incidence of infection. RTI
is accredited by the American Association of Tissue Banks.
Except for historical information, any statements made in this press
release about the company's anticipated financial results, future operational
results or regulatory approvals are forward-looking statements subject to
risks and uncertainties such as those described in the company's public
filings on file with the Securities and Exchange Commission. Actual results
may differ materially from anticipated results reflected in these forward-
looking statements. Copies of the company's SEC filings may be obtained by
contacting the company or the SEC or by visiting RTI's web site at
www.rtix.com or the SEC's web site at www.sec.gov.
REGENERATION TECHNOLOGIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and
Comprehensive Income (Loss)
(Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
Net revenues $20,154 $18,339 $63,067 $48,158
Costs of processing
and distribution 10,856 9,785 34,422 31,307
Gross profit 9,298 8,554 28,645 16,851
Operating Expenses 6,780 7,062 20,025 32,651
Operating income (loss) 2,518 1,492 8,620 (15,800)
Net interest income
(expense) 20 (1,188) (727) (2,257)
Income (loss) before
income tax (expense)
benefit 2,538 304 7,893 (18,057)
Income tax (expense)
benefit (919) (78) (2,994) 3,620
Net income (loss) 1,619 226 4,899 (14,437)
Other comprehensive
income (loss),
net of tax:
Unrealized derivative
income -- 50 -- 293
Comprehensive income
(loss) $1,619 $276 $4,899 $(14,144)
Net income (loss)
per common share -
basic $0.06 $0.01 $0.19 $ (0.66)
Net income (loss) per
common share -
diluted $0.06 $0.01 $0.18 $ (0.66)
Weighted average shares
outstanding -
basic 26,442,783 21,986,273 26,318,618 21,826,092
Weighted average shares
outstanding -
diluted 27,304,880 22,707,372 26,972,226 21,826,092
REGENERATION TECHNOLOGIES, INC. AND SUBSIDIARIES
Net Revenues
(Unaudited)
(In thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
Fees from tissue
distribution:
Spinal $13,128 $10,621 $40,238 $25,000
Sports Medicine 2,221 2,503 6,633 7,158
Cardiovascular 1,372 1,023 3,890 1,992
General orthopedic 3,012 3,878 10,934 12,855
Subtotal fees from
tissue
distribution 19,733 18,025 61,695 47,005
Other revenues 421 314 1,372 1,153
Total $20,154 $18,339 $63,067 $48,158
REGENERATION TECHNOLOGIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
September 30, December 31,
Assets 2003 2002
Current Assets:
Cash and cash equivalents $9,725 $9,811
Restricted deposits 18,377 18,510
Accounts receivable - net 11,786 14,082
Inventories 35,883 28,626
Other current assets 3,397 5,783
Total current assets 79,168 76,812
Property, plant and equipment - net 47,944 50,575
Other assets 13,353 13,803
$140,465 $141,190
Liabilities and
Stockholders' Equity
Current Liabilities:
Accounts payable $20,637 $26,526
Other current liabilities 23,759 24,534
Total current liabilities 44,396 51,060
Other liabilities 5,873 7,508
Total liabilities 50,269 58,568
Total stockholders' equity 90,196 82,622
$140,465 $141,190
REGENERATION TECHNOLOGIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Three Months Nine Months
Ended Ended
September 30, September 30,
2003 2002 2003 2002
Cash flows from operating
activities:
Net income (loss) $1,619 $226 $4,899 $(14,437)
Adjustments to reconcile net
income (loss) to net cash
(used in) provided by operating
activities:
Depreciation and amortization
expense 1,117 913 3,530 2,438
Change in working capital (4,091) (4,194) (9,833) 11,598
Other 351 1,120 2,517 4,584
Net cash (used in)
provided by operating
activities (1,004) (1,935) 1,113 4,183
Cash flows from investing
activities:
Purchase of property, plant and
equipment (76) (2,062) (1,352) (12,335)
Additional cash paid for purchases
of assets -- -- (250) --
Net cash used in
investing activities (76) (2,062) (1,602) (12,335)
Cash flows from financing
activities:
Payments on capital lease and note
obligations (427) (579) (1,443) (1,330)
Other 1,943 179 1,846 315
Net cash provided by
(used in) financing
activities 1,516 (400) 403 (1,015)
Net increase (decrease) in cash and
cash equivalents 436 (4,397) (86) (9,167)
Cash and cash equivalents, beginning
of period 9,289 8,734 9,811 13,504
Cash and cash equivalents, end of
period $9,725 $4,337 $9,725 $4,337
SOURCE Regeneration Technologies, Inc.
-0- 10/20/2003
/CONTACT: Thomas F. Rose, Chief Financial Officer, or Wendy Crites
Wacker, APR, Corporate Communications, both of Regeneration Technologies,
Inc., +1-386-418-8888/
/Web site: http://www.rtix.com /
(RTIX)
CO: Regeneration Technologies, Inc.
ST: Florida
IN: BIO MTC
SU: ERN CCA
KH-KW
- -- FLM022 --
8142 10/20/2003 17:25 EDT