Kinetic Concepts, Inc. (KCI), a wound care management company, has reported total revenues of $470 million for the first quarter of 2009, up 11.9%, compared with the total revenues of $420 million in the year-ago quarter. It reported net earnings of $39.7 million, or $0.57 per diluted share, for the first quarter of 2008, compared with the net earnings of $68 million, or $0.94 per diluted share, in the year-ago quarter.
Guidance For 2009
Looking forward, for 2009 the company projects GAAP earnings per share in the range of $3.19 to $3.34 per share, up of between 38% – 44% from the $2.32 reported in 2008.
KCI continues to expect non-GAAP earnings to be in the range of $3.95 to $4.10 per share, up of 4% to 8% from $3.78 reported in 2008. Revenue is expected to be between $1.95 billion and $2 billion, up of 4% to 6% from $1.878 billion in the previous year.
First Quarter Highlights
Worldwide V.A.C. Therapy Revenue Was $329.3 Million, up 4% on a Constant Currency Basis
US V.A.C. Unit Volume up 6%, Revenue up 3%
Regenerative Medicine Revenue Was $66.2 Million, up 22% from LifeCell’s Reported Revenue in the Prior-Year Period
Worldwide Therapeutic Support Systems Revenue Was $74.6 Million, Down 8% on a Constant Currency Basis, Due to a Weak Economy and Hospital Capital Constraints
Expenses associated with the company’s recently-announced restructuring reduced first quarter 2009 net earnings by $6.3 million, or $0.09 per diluted share. Further, after-tax non-cash interest expense of $2.9 million, or $0.04 per diluted share, was recorded in the period resulting from the January 1, 2009 required adoption of FASB Staff Position APB 14-1 related to accounting for convertible debt instruments.
“In the first quarter we saw the impact of a weak global environment on parts of the business,” said Catherine Burzik, president and chief executive officer of KCI. “Despite this challenge, we were encouraged as demand for our innovative and high-value therapies in the areas of Wound Healing and Regenerative Medicine was solid and we increased gross margins through improved productivity and product mix. Given the uncertainty around the timing and extent of economic recovery in 2009, we acted decisively during the first quarter to ensure we have the skills and resources necessary to achieve our goals in terms of innovation, global expansion, customer satisfaction and shareholder returns.”