Exhibit 99.1
Regeneration Technologies Announces 2003 Year End, Fourth Quarter Results
Company Posts Record Annual Revenue and Net Income;
Will Hold Conference Call at 5:30 p.m. EST
ALACHUA, Fla., Feb. 5 /PRNewswire-FirstCall/ -- Regeneration Technologies,
Inc. (Nasdaq: RTIX) (RTI), the Florida-based processor of orthopedic,
cardiovascular and other allograft implants, announced today that the
company's net revenues were $75.5 million for the full year 2003 and
$12.4 million for the fourth quarter of 2003. This compares to net revenues of
$69.1 for the full year 2002 and $20.9 for the fourth quarter 2002.
For the full year 2003, the company reported net income of $6.4 million,
compared to a net loss of $13.5 million for the year 2002. Net income per
diluted share for 2003 was $0.24 compared to net loss per diluted share of
$0.60 for the year 2002. For the fourth quarter ended December 31, 2003, the
company reported net income of $1.5 million, compared to net income of
$934,000 for fourth quarter 2002. Net income per diluted share for the fourth
quarter was $0.05. This compares to net income per diluted share of $0.04 for
fourth quarter 2002. Net income in the fourth quarter 2003 included the
reversal of deferred tax valuation allowances of $2.7 million or $0.10 per
diluted share.
"We are pleased to report the highest annual net revenues and net income
in the history of the company," said Brian K. Hutchison, RTI's chairman,
president and CEO. "We have made progress resolving distribution issues,
setting the stage for continued efficiency, effectiveness and steady growth in
2004."
Outlook
For the first quarter 2004, management expects net revenues to be between
$21 and $23 million, and net income per share is expected to be between $0.04
and $0.06. For the full year 2004, the company's goal is to increase revenues
by 20 percent or more in each of RTI's product categories.
Conference Call
RTI will hold a live conference call and simultaneous audio web cast
today, Feb. 5, 2004 at 5:30 p.m. EST to discuss the fourth quarter and year
end 2003 results. The conference call can be accessed by dialing
888-791-5525, passcode RTIXQ FOUR. 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 March 7, 2004 and can be accessed by calling
888-393-9638; 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.
RTI also holds the patents on BioCleanse(TM), 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 more than 400,000 implants
sterilized with the BioCleanse process with zero incidence of infection. RTI
is accredited by the American Association of Tissue Banks and was named a 2004
Technology Pioneer by the World Economic Forum.
Except for historical information, any statements made in this press
release about the company's anticipated financial results, future operational
results, regulatory approvals or changes to the company's agreements with its
distributors 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)
(In thousands, except per share data)
Three months ended Twelve months ended
December 31, December 31,
2003 2002 2003 2002
Net revenues $12,443 $20,902 $75,510 $69,060
Costs of processing
and distribution 8,344 13,571 42,766 44,879
Gross profit 4,099 7,331 32,744 24,181
Expenses:
Marketing, general
and administrative 5,269 4,924 23,515 29,236
Research and
development 773 631 2,441 2,460
Restructuring and
other charges 58 (62) 169 6,450
Total
expenses 6,100 5,493 26,125 38,146
Operating (loss)
income (2,001) 1,838 6,619 (13,965)
Other (expense)
income:
Interest expense (62) (360) (981) (2,758)
Interest income 43 44 235 186
Total other
(expense)
income -
net (19) (316) (746) (2,572)
Income (loss) before
income tax benefit
(expense) (2,020) 1,522 5,873 (16,537)
Income tax benefit
(expense) 3,477 (588) 483 3,032
Net income (loss) 1,457 934 6,356 (13,505)
Other comprehensive
income (loss), net of
tax:
Unrealized
derivative income
(loss) -- 150 -- 443
Comprehensive income
(loss) $1,457 $1,084 $6,356 $(13,062)
Net income (loss) per
common share - basic $0.05 $0.04 $0.24 $(0.60)
Net income (loss) per
common share -
diluted $0.05 $0.04 $0.24 $(0.60)
Weighted average
shares outstanding -
basic 26,510,440 23,746,117 26,365,348 22,434,436
Weighted average
shares outstanding -
diluted 27,042,522 24,557,808 26,999,175 22,434,436
REGENERATION TECHNOLOGIES, INC. AND SUBSIDIARIES
Net Revenues
(In thousands)
Three months ended Twelve months ended
December 31, December 31,
2003 2002 2003 2002
Fees from tissue distribution
Spinal $5,068 $12,971 $45,306 $37,971
Sports Medicine 2,221 2,870 8,855 10,028
Cardiovascular 1,252 1,435 5,141 3,426
General orthopedic 3,295 3,263 14,229 16,119
Other non-tissue revenues 607 363 1,979 1,516
Total $12,443 $20,902 $75,510 $69,060
REGENERATION TECHNOLOGIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
December 31, December 31,
Assets 2003 2002
Current Assets:
Cash and cash equivalents $10,051 $9,811
Restricted deposits 14,757 18,510
Accounts receivable - net 5,942 14,082
Inventories 41,655 28,626
Other current assets 6,177 5,783
Total current assets 78,582 76,812
Property, plant and equipment - net 43,689 50,575
Other assets 14,145 13,803
$136,416 $141,190
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $18,919 $26,526
Other current liabilities 19,967 24,534
Total current liabilities 38,886 51,060
Other liabilities 5,133 7,508
Total liabilities 44,019 58,568
Total stockholders' equity 92,397 82,622
$136,416 $141,190
REGENERATION TECHNOLOGIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
Three Months Twelve Months
Ended December 31, Ended December 31,
2003 2002 2003 2002
Cash flows from operating
activities:
Net income (loss) $1,457 $932 $6,356 $(13,505)
Adjustments to reconcile net
income (loss) to net cash
(used in) provided by
operating activities:
Depreciation and
amortization expense 1,252 789 4,782 3,226
Change in working capital (1,802) (194) (11,635) 11,405
Other (3,919) 755 (1,401) 5,340
Net cash (used in)
provided by operating
activities (3,012) 2,282 (1,898) 6,466
Cash flows from investing
activities:
Purchases of property, plant
and equipment (74) (3,322) (1,427) (15,658)
Additional cash paid for
purchases of assets -- -- (250) --
Proceeds from sale of property,
plant and equipment 3,032 -- 3,032 --
Net cash provided by
(used in) investing
activities 2,958 (3,322) 1,355 (15,658)
Cash flows from financing
activities:
Proceeds from stock offering -- 27,550 -- 27,550
Payments on capital lease and
note obligations (445) (15,894) (1,888) (17,224)
Payment on term loan (3,032) -- (3,032) --
Decrease in restricted deposits 3,620 -- 3,753 --
Other 237 (5,142) 1,950 (4,827)
Net cash provided by
financing activities 380 6,514 783 5,499
Net increase (decrease) in cash
and cash equivalents 326 5,474 240 (3,693)
Cash and cash equivalents,
beginning of period 9,725 4,337 9,811 13,504
Cash and cash equivalents, end of
period $10,051 $9,811 $10,051 $9,811
SOURCE Regeneration Technologies, Inc.
-0- 02/05/2004
/CONTACT: Thomas 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 ERP CCA