Zimmer Holdings, Inc. Reports First Quarter Financial Results
- Net Sales of $1.06 billion represents an increase of 11% reported (6% constant currency)
- Worldwide Reconstructive Sales increased 12% reported (6% constant currency)
- Diluted EPS were $1.02 reported, an increase of 4% over the prior year period, and $1.04 adjusted, an increase of 6% over the prior year period
- Updates 2008 full year sales guidance and reaffirms earnings
- Announces $1.25 billion stock repurchase program
(WARSAW, IN) April 24, 2008—Zimmer Holdings, Inc. (NYSE and SWX: ZMH) today reported financial results for the quarter ended March 31, 2008. The Company reported first quarter net sales of $1.06 billion, an increase of 11% reported and 6% constant currency over the first quarter of 2007. Diluted earnings per share for the quarter were $1.02 reported, an increase of 4%, and $1.04 adjusted, an increase of 6% over the prior year period.
“We are pleased with our earnings performance and cash flow generation in the first quarter,” said David Dvorak, Zimmer President and CEO. “Sales results reflect continued growth in our reconstructive business and we expect to achieve higher levels of penetration with new products as the year progresses. For instance, we are well positioned to move forward with our new knee offerings that are coming on line, including the Zimmer® NexGen® LPS-Flex Mobile Knee, the Gender Solutions™ Natural-Knee® Flex and the Gender Solutions™ Patello-femoral Joint System. In addition, our Kinectiv™ Technology for hip replacement, as well as our Fitmore ™ Hip stem, which received FDA clearance for marketing in early March, are creative and innovative additions to our portfolio.”
The Company said it has made substantial progress on its strategic infrastructure and operating initiatives. “We are well on our way with construction and recruiting efforts at our recently announced Shannon, Ireland facility, and we are making additional investments across our global manufacturing network,” Mr. Dvorak said. “Further, the April 17, 2008, announcement of our enhanced compliance model was an important milestone for our Company. These are all critical steps in preparing our Company to better serve the healthcare markets of the future.”
The Company also announced that its Board of Directors has approved an additional $1.25 billion stock repurchase program, which expires on December 31, 2009. This is in addition to the remaining capacity of $477 million as of March 31, 2008, under the repurchase program authorized in December 2006. Purchases may be made in the open market or in privately negotiated transactions from time to time in compliance with Securities and Exchange Commission regulations, depending on market conditions and other factors. The Company had approximately 231.5 million shares of common stock outstanding as of March 31, 2008.
“As we continue to evaluate our potential uses of cash and other resources, the Board has confirmed that repurchasing shares is consistent with our confidence in the Company’s long-term growth prospects and provides an effective avenue to return value to our stockholders,” said Mr. Dvorak.
Contacts
Media
Brad Bishop
574-372-4291
bradley.bishop@zimmer.com
Investors
James T. Crines
574-372-4264
james.crines@zimmer.com
Paul Blair
574-371-8042
paul.blair@zimmer.com
