Össur, Reykjavik, Iceland, has reported its fourth quarter (4Q) and full year (FY) 2015 financial results.
Sales in 4Q 2015 were US $125 million, compared to US $129 million in 4Q 2014, corresponding to 5 percent growth measured in local currency (LCY). Earnings before interest, taxes, depreciation, and amortization (EBITDA) were US $25 million or 20 percent of sales, compared to US $26 million or 20 percent of sales in 4Q 2014. Net profit was US $13 million or 10 percent of sales, compared to US $15 million or 12 percent of sales in 4Q 2014. Cash generated by operations was US $31 million or 25 percent of sales, compared to US $29 million or 23 percent of sales in 4Q 2014.
In November 2015, Össur purchased 2,465,000 of its own shares (about 0.6 percent of the company’s total share capital) on NASDAQ Copenhagen at price of DKK 22.2 per share. The total purchase price was DKK 55
million (US $8 million). A share buyback program on NASDAQ Copenhagen, carried out in compliance with the provisions of the European Commission’s Safe Harbor regulation, was launched in December 2015. The Company may purchase up to five million shares, corresponding to 1.1 percent of the then current share capital, under the program.
For FY 2015, sales grew 5 percent measured in local currency (LCY) and amounted to US $483 million. Bracing and supports sales grew 5 percent and 5 percent organic, both measured in LCY. Prosthetics sales grew 6 percent and 4 percent organic, both measured in LCY. Gross profit was US $303 million or 63 percent of sales, compared to US $323 million or 63 percent of sales in 2014. EBITDA were US $97 million or 20 percent of sales. Adjusted EBITDA were US $99 million or 20 percent of sales, compared to US $104 million or 20 percent of sales in 2014.
Net profit was US $51 million or 11 percent of sales, compared to US $59 million or 12 percent of sales in 2014. The company said strengthening of the U.S. dollar had a significant negative impact on reported sales and profits when comparing to prior year results. Cash generated by operations was US $84 million or 17 percent of sales, compared to US $98 million or 19 percent of sales in 2014.
Össur said that at its annual general meeting, the company’s board of directors will propose that Össur pay a cash dividend in 2016 of DKK 0.12 per share for 2015, equivalent to 16 percent of net earnings in 2015. The board will also propose to reduce the share capital by cancelling 1,892,688 of the company’s shares.
Össur provided the following financial guidance for 2016:
- Organic sales growth LCY in the 3-5 percent range
- EBITDA margin of 20-21 percent of sales
- Capital expenditures of 3-4 percent of sales
- Effective tax rate around 26 percent
