Zimmer Reports Fourth Quarter and 2006 Financial Results Fourth Quarter Highlights
- Net Sales of $934 million represent an increase of 10% reported (8% constant currency)
- Worldwide and Americas Reconstructive Sales increased 11% reported (8% constant currency) and 10% reported (10% constant currency), respectively
- Worldwide and Americas pricing remained stable at 0.4% and 1.6%, respectively
- 9,584 Zimmer® Gender Solutions™ Knees implanted during the quarter
- Almost $50 million of Trabecular Metal™ Technology sales, an increase of 47% constant currency during the quarter
- Dental sales increased 27% reported (24% constant currency)
- Continued margin expansion—78% gross, 36% operating and 26% net reported and adjusted; and 78% gross, a record 38% operating and a record 28% net adjusted excluding the effect of SFAS 123R, Share-Based Payment
- Diluted EPS were $1.02 reported and adjusted, and $1.08 adjusted excluding the effect of Share-Based Payment, an increase of 26% over prior period
- Operating cash flow of $247 million
Full Year Highlights
- Net Sales increased 6% reported (7% constant currency) to $3.5 billion
- Worldwide Reconstructive Sales increased 7% reported (7% constant currency)
- Diluted EPS were $3.40 reported, $3.44 adjusted and $3.65 adjusted excluding the effect of Share-Based Payment, an increase of 18% over prior year
- Operating cash flow of over $1 billion, a 19% increase over prior year
- Repurchased 12.1 million common shares at an average price of $66.07
- The Company is increasing its full year 2007 guidance for sales by approximately $20 million, which is $40 million over current First Call consensus, and is increasing its full year 2007 guidance for adjusted diluted earnings per share by $0.05
(WARSAW, IN) January 29, 2007 -- Zimmer Holdings, Inc. (NYSE and SWX: ZMH) today reported financial results for the fourth quarter and year ended December 31, 2006. For the fourth quarter, the Company announced net sales of $934 million, an increase of 10% reported and 8% constant currency, exceeding First Call estimates of $925 million. Diluted earnings per share for the quarter were $1.02 reported and adjusted, exceeding First Call earnings estimates of $0.99 adjusted. Reported and adjusted diluted earnings per share for the fourth quarter of 2006 include a $0.06 per diluted share impact related to the adoption of SFAS 123R, Share-Based Payment. Effective January 1, 2006, the Company adopted this new accounting standard using the modified-prospective method. In accordance with this adoption method, the Company has not adjusted its historical financial statements to reflect the impact of Share-Based Payment. Excluding the effect of Share-Based Payment, adjusted diluted earnings per share for the quarter were $1.08, an increase of 26% over prior year. Full year net sales were $3.5 billion and diluted earnings per share were $3.40 reported and $3.44 adjusted. Excluding the effect of Share-Based Payment, full year diluted earnings per share were $3.65 adjusted, an increase of 18% over prior year.
