DJO Global (DJO), San Diego, California, has announced the financial results for its public reporting subsidiary, DJO Finance LLC (DJOFL), for the first quarter (1Q) ended March 30, 2013. DJOFL achieved net sales for 1Q 2013 of $279.1 million, roughly flat with net sales of $278.9 million for the same quarter last year. Net sales for 1Q 2013 were impacted by fewer shipping days compared to 2012. For 1Q 2013, DJOFL reported a net loss attributable to DJOFL of $32.4 million, compared to a net loss of $29.4 million for 1Q 2012.
Net sales for DJO’s bracing and vascular segment were $108.1 million in 1Q 2013, reflecting growth in average sales per day of 3.7 percent, compared to 1Q 2012. Net sales for DJO’s recovery sciences segment were $75.5 million in 1Q 2013, reflecting a contraction in average sales per day of 8.4 percent. Net sales for 1Q 2013 within the international segment were $73.9 million, reflecting an increase in average sales per day of 6.3 percent from the prior year period, which the company attributes to increased penetration in certain markets and the impact of sales of new products. Net sales for the surgical implant segment were $21.5 million for 1Q 2013, reflecting an increase in average sales per day of 22.1 percent over net sales in 1Q 2012, driven by strong sales of each of the company’s shoulder, knee, and hip product lines.
DJO defines adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) as net (loss) income attributable to DJOFL plus interest expense, net, income tax provision (benefit), and depreciation and amortization, further adjusted for certain noncash items, nonrecurring items, and other adjustment items as permitted in calculating covenant compliance under DJO’s amended senior secured credit facility and the indentures governing its 8.75 percent second priority senior secured notes, its 9.875 percent and 7.75 percent senior notes, and its 9.75 percent senior subordinated notes.
Adjusted EBITDA for 1Q 2013 was $59.8 million, or 21.4 percent of net sales, reflecting an 8 percent decrease compared with adjusted EBITDA of $65 million, or 23.3 percent of net sales, for 1Q 2012. For the 12 months ended March 30, 2013(LTM), Adjusted EBITDA was $266.9 million, or 23.6 percent of LTM net sales of $1,129.6 million, including pre-acquisition Adjusted EBITDA and expected future cost savings aggregating $1.1 million related to the company’s recent acquisition of Exos, Arden Hills, Minnesota.
As of March 30, 2013, DJO reported a cash balance of $36.2 million and available liquidity of $82 million under its revolving line of credit.
