Financial Outlook
Looking forward to full year 2009, the company is reaffirming its previously stated annual revenue outlook to be in the range of $405 million to $420 million. On a constant currency basis, the company projects revenue to increase 2%-6% for the full year. For the full year 2009, the company is increasing the low-end of earnings per diluted share outlook from $0.75 to $0.77 and reaffirming the high-end guidance of $0.85.
The company continues to expect the Sheffield, UK operating unit to report smaller net operating losses during the Q2 2009 and operating profitability in the second half of 2009.
Foreign currency had a $7.4 million negative impact on the first quarter of 2009 compared with the first quarter of 2008. On a constant currency basis, revenue increased 6.8% for the period. First quarter 2009 includes a full quarter results from the company’s New Bedford, Massachusetts manufacturing facility, which was acquired from DePuy Orthopaedics, Inc. in January 2008. Adjusting for the acquisition and the foreign exchange, revenue grew 4.2%.
Gross profit for the first quarter 2009 was $24.6 million, compared with $24.0 million in the first quarter 2008. Gross margin percentage for the first quarter 2009 was 24.2% compared to gross margin percentage of 23.5% in the same period last year and 23.4% in the fourth quarter 2008.
Selling, general and administrative expenses were $13.4 million for the first quarter 2009, a decline of 7.2% from $14.4 million for the first quarter 2008. The first quarter of 2008 expenses included about $2.2 million of professional fees related to the Sheffield, UK investigation. The company did not incur further investigation expenses in the first quarter of 2009. Lower expenses were partially offset by an increase in non-cash stock based compensation and increased expenses associated with the addition of the New Bedford facility, which was acquired at the end of January 2008.
Operating income for the first quarter 2009 was $11.2 million compared with $9.6 million for the first quarter 2008. Operating margin for the first quarter 2009 was 11.0%, an increase from 9.4% for the first quarter 2008.
The weighted average number of diluted shares outstanding during the first quarter of 2009 was 35,380,503.
Brian Moore, president and chief executive officer of Symmetry, stated, Our first quarter results represent an excellent start for 2009. We remain encouraged by our improved operational performance and efficiencies and continue to expect to reach profitability at our Sheffield facility in the second half of 2009.
Moore continued, Although the overall global economy remains challenging we are encouraged by the performance and strength of our business model. Despite our positive outlook, we will continue to manage operations conservatively, control costs, generate cash and improve efficiencies. Our focus for the remainder of the year is to build on our global presence in the orthopaedic industry and deliver improved results.
