Össur, Reykjavik, Iceland, reported that its third quarter (3Q) 2014 net profit increased by 26 percent and amounted to US $16 million, or 13 percent of sales, compared to US $13 million and 12 percent of sales in 3Q 2013. Sales amounted to US $127 million compared to US $105 million in 3Q 2013, corresponding to 21 percent growth and 6 percent organic growth, both measured in Icelandic currency. Bracing and supports sales growth was 19 percent, while organic sales growth was 0 percent, both measured in Icelandic currency.
Prosthetics sales growth compared to 3Q 2013 was 23 percent and 15 percent organic, both measured in Icelandic currency. Gross profit amounted to US $81 million and 64 percent of sales, compared to US $65 million and 62 percent of sales in 3Q 2013. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 30 percent and amounted to US $29 million or 23 percent of sales, compared to US $22 million or 21 percent of sales in 3Q 2013. Cash generated by operations amounted to US $33 million or 26 percent of sales, compared to US $24 million or 23 percent of sales in 3Q 2013.
Össur provided the following revised guidance for 2014:
- Local currency (LCY) sales growth in the range of 18-19 percent (previously 16-18 percent).
- Organic LCY sales growth in the range of 4-5 percent (previously 3-4 percent).
- EBITDA margin in the range of 20-21 percent of sales (previously 19-20 percent).
- Capital expenditures in the range of 2.5-3.5 percent of sales (unchanged).
- Effective tax rate around 26 percent (unchanged).
On Friday, October 24, Össur will host a conference call in which 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. The conference call can also be heard at www.ossur.com/investors