EX-99.1 2 d340841dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

FOR RELEASE ON    For more information, contact:
THURSDAY, APRIL 26, 2012    Robert Jordheim
8:00 A.M. ET    Chief Financial Officer
   rjordheim@rtix.com
   Wendy Crites Wacker, APR
   Corporate Communications
   wwacker@rtix.com
   Phone (386) 418-8888

RTI BIOLOGICS ANNOUNCES 2012 FIRST QUARTER RESULTS

– Company Will Hold Conference Call at 8:30 a.m. ET –

ALACHUA, Fla. (April 26, 2012) – RTI Biologics Inc. (RTI) (Nasdaq: RTIX), a leading provider of orthopedic and other biologic implants, reported operating results for the first quarter of 2012 as follows:

Quarterly Highlights:

 

   

Achieved quarterly revenues of $43.7 million, an increase of 8 percent compared to the first quarter of 2011 and exceeding the company’s guidance of between $41 and $42 million.

 

   

Achieved quarterly earnings per fully diluted share of $0.04, an increase of $0.02 compared to the first quarter of 2011 and exceeding the company’s guidance of $0.03 per fully diluted share.

 

   

Achieved quarterly revenues of $13.4 million in the direct sports medicine business, a 15 percent increase compared to the first quarter of 2011.

 

   

Achieved quarterly revenues of $7.0 million in the bone graft substitutes and general orthopedic (BGS/GO) business, a 15 percent increase compared to the first quarter of 2011.

 

   

Achieved international revenues of $5.9 million, a 9 percent increase compared to the first quarter of 2011.

 

   

Achieved quarterly revenues of $14.1 million in the U.S. direct distribution organization, a 16 percent increase over the first quarter of 2011. The U.S. direct distribution organization includes sports medicine and some BGS/GO implants.


“We are pleased with our first quarter results, which exceeded our expectations and were driven primarily by growth in our direct sports medicine and BGS/GO businesses, as well as in our dental business,” said Brian K. Hutchison, president and CEO of RTI.

Worldwide revenues of $43.7 million for the first quarter of 2012 were up 8 percent compared to the first quarter of 2011. Domestic revenues of $37.9 million for the first quarter of 2012 were up 7 percent compared to the first quarter of 2011, primarily based on the strength of the sports medicine, BGS/GO and dental businesses. International revenues of $5.9 million increased 9 percent compared to the first quarter of 2011 due to the strength of the surgical specialties business and the export of sports medicine and BGS/GO implants. On a constant currency basis, international revenues increased 12 percent compared to the first quarter of 2011.

For the first quarter of 2012, the company reported net income of $2.0 million and net income per fully diluted share of $0.04, based on 55.9 million fully diluted shares outstanding, compared to net income of $1.2 million and net income per fully diluted share of $0.02 based on 55.0 million fully diluted shares outstanding.

Fiscal 2012 and Second Quarter Outlook

As a result of better than expected results in the first quarter, the company is raising its full year revenue guidance for 2012. The company now expects full year revenues for 2012 to be between $176 million and $178 million, as compared to prior guidance of between $174 million and $176 million. Full year net income is expected to be between $0.16 and $0.17 per fully diluted share, based on 56.1 million shares outstanding, as compared to our prior guidance of between $0.15 and $0.17 per fully diluted share.

For the second quarter of 2012, the company expects revenues to be between $43 million and $44 million, and net income per fully diluted share to be approximately $0.04.

“We had a strong start to the year with solid results for the first quarter of 2012,” Hutchison said. “Based on the strength of the first quarter, we elected to raise our full year revenue guidance and have tightened our earnings guidance. As stated in our January 2012 release, we are investing in new product development initiatives and direct distribution during this year, which we anticipate will positively impact our future revenue growth.”


Conference Call

RTI will host a conference call and simultaneous audio webcast to discuss the first quarter 2012 results at 8:30 a.m. ET today. The conference call can be accessed by dialing (877) 383-7419. The webcast can be accessed through the investor section of RTI’s website at www.rtix.com. A replay of the conference call will be available on the RTI website for one month following the call.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and bovine tissue for transplantation through extensive testing and screening and using proprietary processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. Two such processes – the BioCleanse® Tissue Sterilization Process and the Tutoplast® Tissue Sterilization Process – have a combined record of more than two million implants distributed with zero incidence of allograft-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

Forward Looking Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management. Words such as “anticipates,” “expects,” “intends,” “plans,”


“believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, except for historical information, any statements made in this communication about anticipated financial results, growth rates, new product introductions, future operational improvements and results or regulatory approvals or changes to agreements with distributors also are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the company’s SEC filings may be obtained by contacting the company or the SEC or by visiting RTI’s website at www.rtix.com or the SEC’s website at www.sec.gov.


RTI BIOLOGICS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

 

     Three Months Ended
March 31,
 
     2012     2011  

Revenues:

    

Fees from tissue distribution

   $ 42,121      $ 39,519   

Other revenues

     1,622        1,127   
  

 

 

   

 

 

 

Total revenues

     43,743        40,646   

Costs of processing and distribution

     23,637        22,309   
  

 

 

   

 

 

 

Gross profit

     20,106        18,337   
  

 

 

   

 

 

 

Expenses:

    

Marketing, general and administrative

     14,374        13,909   

Research and development

     2,827        2,418   

Asset abandonments

     16        57   
  

 

 

   

 

 

 

Total operating expenses

     17,217        16,384   
  

 

 

   

 

 

 

Operating income

     2,889        1,953   
  

 

 

   

 

 

 

Total other income (expense) - net

     55        (84
  

 

 

   

 

 

 

Income before income tax provision

     2,944        1,869   

Income tax provision

     (942     (621
  

 

 

   

 

 

 

Net income

   $ 2,002      $ 1,248   
  

 

 

   

 

 

 

Net income per common share - basic

   $ 0.04      $ 0.02   
  

 

 

   

 

 

 

Net income per common share - diluted

   $ 0.04      $ 0.02   
  

 

 

   

 

 

 

Weighted average shares outstanding - basic

     55,712,485        54,889,759   
  

 

 

   

 

 

 

Weighted average shares outstanding - diluted

     55,923,946        54,984,707   
  

 

 

   

 

 

 


RTI BIOLOGICS, INC. AND SUBSIDIARIES

Condensed Consolidated Revenues

(In thousands)

(Unaudited)

 

     Three Months Ended
March 31,
 
     2012      2011  

Revenues from tissue distribution:

     

Sports medicine

   $ 13,425       $ 11,689   

Spine

     8,560         9,710   

Surgical specialties

     7,797         7,911   

Bone graft substitutes and general orthopedic

     7,015         6,107   

Dental

     5,324         4,102   

Other revenues

     1,622         1,127   
  

 

 

    

 

 

 

Total revenues

   $ 43,743       $ 40,646   
  

 

 

    

 

 

 

Domestic revenues

     37,873         35,245   

International revenues

     5,870         5,401   
  

 

 

    

 

 

 

Total revenues

   $ 43,743       $ 40,646   
  

 

 

    

 

 

 


RTI BIOLOGICS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

     March 31,
2012
    December 31,
2011
 
Assets     

Cash and cash equivalents

   $ 47,588      $ 46,178   

Accounts receivable - net

     19,576        20,674   

Inventories - net

     75,657        76,598   

Prepaid and other current assets

     16,205        16,231   
  

 

 

   

 

 

 

Total current assets

     159,026        159,681   

Property, plant and equipment - net

     46,337        44,532   

Other assets - net

     26,365        25,814   
  

 

 

   

 

 

 

Total assets

   $ 231,728      $ 230,027   
  

 

 

   

 

 

 
Liabilities and Stockholders’ Equity     

Accounts payable

   $ 11,142      $ 11,141   

Accrued expenses and other current liabilities

     20,983        24,028   

Current portion of long-term obligations

     357        448   
  

 

 

   

 

 

 

Total current liabilities

     32,482        35,617   

Deferred revenue

     22,425        20,589   

Long-term liabilities

     1,176        1,402   
  

 

 

   

 

 

 

Total liabilities

     56,083        57,608   

Stockholders’ equity:

    

Common stock and additional paid-in capital

     412,373        411,741   

Accumulated other comprehensive loss

     (1,592     (2,184

Accumulated deficit

     (235,136     (237,138
  

 

 

   

 

 

 

Total stockholders’ equity

     175,645        172,419   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 231,728      $ 230,027   
  

 

 

   

 

 

 


RTI BIOLOGICS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

     Three Months Ended
March 31,
 
     2012     2011  

Cash flows from operating activities:

    

Net income

   $ 2,002      $ 1,248   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization expense

     1,909        1,925   

Stock-based compensation

     525        499   

Amortization of deferred revenue

     (1,164     (1,006

Other items to reconcile to net cash provided by operating activities

     1,093        3,814   
  

 

 

   

 

 

 

Net cash provided by operating activities

     4,365        6,480   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchases of property, plant and equipment

     (2,803     (494

Patent and acquired intangible asset costs

     (65     (1,021
  

 

 

   

 

 

 

Net cash used in investing activities

     (2,868     (1,515
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Proceeds from exercise of common stock options

     100        185   

Payments on long-term obligations

     (199     (276

Other

     (20     —     
  

 

 

   

 

 

 

Net cash used in financing activities

     (119     (91
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     32        60   
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     1,410        4,934   

Cash and cash equivalents, beginning of period

     46,178        28,212   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 47,588      $ 33,146