Össur, Reykjavik, Iceland, reported that its first quarter (1Q) 2014 net profit increased by 96 percent and amounted to US $11 million or 9 percent of sales, compared to US $6 million and 6 percent of sales in 1Q 2013. Sales amounted to US $121 million compared to US $97 million in 1Q 2013, corresponding to a 24 percent growth and 6 percent organic growth, both measured in Icelandic currency. Bracing and supports sales growth was 28 percent and 2 percent organic, both measured in Icelandic currency.
Prosthetics sales growth was 19 percent and 12 percent organic, both measured in Icelandic currency. Gross profit was US $76 million and 63 percent of sales, compared to US $60 million and 62 percent of sales in 1Q 2013. Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to US $20 million and 17 percent of sales, compared to US $14 million and 14 percent of sales in 1Q 2013. Cash generated by operations amounted to US $12 million and 10 percent of sales, compared to US $9 million and 9 percent of sales in 1Q 2013. On April 2, Össur amended and extended its long term financing by three years or until 2019.
- Össur provided the following financial guidance for 2014 management estimates:
- Local currency (LCY) growth in the range of 14-16 percent.
- Organic, local currency sales growth in the range of 2-4 percent.
- EBITDA margin in the range of 17-19 percent of sales.
- Capital expenditures in the range of 2.5-3.5 percent of sales.
- Effective tax rate around 26 percent.
On Wednesday April 30, Össur will host a conference call where Jón Sigurðsson, president and CEO, and Sveinn Sölvason, CFO, will present and discuss the results of the quarter. The conference call, scheduled to begin at 6 a.m. ET, will be conducted in English. Those wishing to participate should call 855.753.2230, or access the webcast at www.ossur.com/investors
