DJO Global (DJO), San Diego, California, announced financial results for its public reporting subsidiary, DJO Finance (DJOFL), for the second quarter (2Q) ended June 28, 2014.
DJOFL achieved net sales for 2Q 2014 of $313.9 million, reflecting 6.5 percent growth, compared with net sales of $294.7 million for 2Q 2013. Net sales for 2Q 2014 were favorably impacted by $2.5 million related to changes in foreign currency exchange rates compared to the rates in effect in 2Q 2013. Excluding the impact of changes in foreign currency exchange rates from rates in effect in the prior year period, net sales for 2Q 2014 increased 5.8 percent compared to net sales for the same quarter of 2013.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2Q 2014 was $70.2 million, or 22.4 percent of net sales, reflecting 5.3 percent growth when compared with adjusted EBITDA of $66.7 million, or 22.6 percent of net sales, for 2Q 2013.
For 2Q 2014, DJOFL reported a net loss attributable to DJOFL of $25.4 million, compared to a net loss of $20.8 million for 2Q 2013. The results for the current and prior year 2Q periods were impacted by significant noncash items, nonrecurring items, and other adjustments.
Net sales for DJO’s bracing and vascular segment were $128.3 million in 2Q 2014, reflecting growth of 7.6 percent, compared to the same quarter of 2013, driven by strong contribution from the sales of new products and improving sales execution. Net sales for DJO’s recovery sciences segment were $75.9 million in 2Q 2014, reflecting a contraction of 1.9 percent, compared to 2Q 2013, primarily due to the effects of Medicare’s 2012 noncoverage decision related to transcutaneous electrical nerve stimulation for chronic low back pain on the EMPI business unit. Second quarter net sales within the international segment were $84.6 million, reflecting a 7.5 percent increase from 2Q 2013, excluding the impact of $2.5 million of favorable changes in foreign currency exchange rates from rates in effect in 2Q 2013. Net sales for the surgical implant segment were $25.1 million for 2Q 2014, reflecting growth of 17.3 percent over net sales in 2Q2013, driven by strong sales of each of DJO’s shoulder, knee, and hip product lines.
As of June 28, 2014, DJO had cash balances of $36.6 million and available liquidity of $77.5 million under its $100 million revolving line of credit.
