Exhibit 99
Wright Medical Group, Inc. Announces
Preliminary Third Quarter 2005 Results
ARLINGTON, Tenn.--(BUSINESS WIRE)--Oct. 4, 2005--
Company Lowers Outlook for Full Year 2005 Due to Slower Recoveries
in Domestic Biologics and Southern Europe; Solid Sales Performances
Posted for U.S. Reconstructive Large Joints and Extremities
Wright Medical Group, Inc. (NASDAQ:WMGI), a global orthopaedic
medical device company specializing in the design, manufacture and
marketing of reconstructive joint devices and biologics, today
announced preliminary financial results for its third quarter ended
September 30, 2005.
Preliminary net sales for the quarter ended September 30, 2005
totaled approximately $73.4 million, representing annual sales growth
of 6%. Net income for the quarter is expected to range from $.10 to
$.11 per diluted share.
Domestic sales totaled approximately $47.4 million during the
third quarter of 2005, representing an increase of 7% over the prior
year period. During the third quarter, the Company's domestic
reconstructive joint and extremities product lines continued to
perform strongly, with annual sales growth of domestic hips, knees and
extremities totaling 15%, 13% and 14%, respectively. International
sales totaled approximately $26.1 million during the third quarter, an
increase of 5% compared to the third quarter of 2004.
Laurence Y. Fairey, President and Chief Executive Officer
commented, "Our preliminary sales results of $73.4 million for the
third quarter of 2005 are approximately $4 million below the low end
of our previously-communicated outlook range. As anticipated, during
the third quarter we experienced another solid performance by our
domestic reconstructive large joint and extremities businesses, and a
strong performance from nearly all major geographic areas within our
international business. However, we did not meet our expectations for
a third quarter recovery in our domestic biologics growth rate, as
third quarter sales for the domestic biologics product line decreased
by 10% compared to the prior year's quarter. Additionally, our
international businesses in Italy and southern France did not recover
from the effects of our ongoing sales management transition in those
regions to the degree we were expecting."
Mr. Fairey continued, "Though we believe that recovery in these
two areas is forthcoming, it is obvious that predicting the timeframe
for this improvement is challenging. Based upon our business trends as
we currently see them, we are revising corporate sales growth
expectations for the remainder of the year such that our full year
2005 target is now a range of 6% to 7%. At the same time, we remain
optimistic about the growth prospects of our business for 2006 and
beyond, and, over time, a rebound to growth rates consistent with our
low- to mid-teens corporate objectives, driven by the strength being
demonstrated by our domestic large joint and extremities product lines
and recovery from the issues affecting us at this time."
Full Year 2005 Outlook
The Company has revised its previously-communicated full year 2005
sales outlook to a target range of $315 million to $318 million,
representing a sales growth objective of approximately 6% to 7%, and
has revised its previously-communicated full year earnings per share
outlook to a target range of $0.66 to $0.70 per diluted share. These
newly-revised targets incorporate the preliminary third quarter
results provided today and a fourth quarter outlook reflecting reduced
expectations for the Company's domestic biologics product line and its
Italian and French markets, modest acceleration of the Company's
domestic extremities product line growth rate and ongoing solid
performances by the Company's domestic reconstructive large joint
business in line with recent industry rates of growth.
Conference Call
The Company will host a conference call to provide additional
detail regarding this announcement starting at 3:30 p.m. (Central
Time) today, Tuesday, October 4, 2005. Because of the preliminary
nature of the results announced today, there will be no question and
answer session associated with this conference call, although such a
session will occur as part of the Company's regularly-held call to
discuss final release of third quarter results which is scheduled to
occur on October 25, 2005. The live dial-in number for today's call is
800-810-0924 (domestic) or 913-981-4900 (international). To access a
simultaneous webcast of the conference call via the internet, go to
the "Corporate - Investor Information" section of the Company's
website located at www.wmt.com. A replay of the conference call by
telephone will be available starting at 4:30 p.m. Central today,
October 4, 2005, and continuing until 11:59 p.m. Central on October
10, 2005. To hear this replay, dial 888-203-1112 (domestic) or
719-457-0820 (international) and enter the registration number
8458847. A replay of the conference call will also be available via
the internet starting today and continuing for at least 12 months. To
access a replay of the conference call via the internet, go to the
"Corporate - Investor Information - Audio Archives" section of the
Company's website located at www.wmt.com.
The conference call may include a discussion of non-GAAP financial
measures. Reference is made to the most directly comparable GAAP
financial measures, the reconciliation of the differences between the
two financial measures, and the other information included in this
press release or otherwise available in the "Corporate - Investor
Information - Supplemental Financial Information" section of the
Company's website located at www.wmt.com.
The conference call may include forward-looking statements. See
the cautionary information about forward-looking statements in the
"Safe-Harbor Statement" section of this press release.
Safe-Harbor Statement
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements made in this press release, other than statements of
historical fact, are forward-looking statements. Forward-looking
statements reflect management's current knowledge, assumptions,
beliefs, estimates, and expectations and express management's current
views of future performance, results, and trends. The Company wishes
to caution readers that actual results might differ materially from
those described in the forward-looking statements. Forward-looking
statements are subject to a number of risks and uncertainties,
including the factors discussed in the Company's filings with the
Securities and Exchange Commission (including the Company's annual
report on Form 10-K for the year ended December 31, 2004 under the
heading, "Factors Affecting Future Operating Results," and in its
quarterly reports), which could cause the Company's actual results to
materially differ from those described in the forward-looking
statements. Although the Company believes that the forward-looking
statements are accurate, there can be no assurance that any
forward-looking statement will prove to be accurate. A forward-looking
statement should not be regarded as a representation by the Company
that the results described therein will be achieved. The Company
wishes to caution readers not to place undue reliance on any
forward-looking statement. The forward-looking statements are made as
of the date of this press release. The Company assumes no obligation
to update any forward-looking statement after this date.
Wright Medical Group, Inc. is a global orthopaedic medical device
company specializing in the design, manufacture and marketing of
reconstructive joint devices and biologics. The Company has been in
business for more than 50 years and markets its products in over 60
countries worldwide. For more information about Wright Medical, visit
the Company's website at www.wmt.com.
CONTACT: Wright Medical Group, Inc., Arlington
John K. Bakewell, 901-867-4527