Schedule 1—Condensed Financial Information of Registrant Orthofix International N.V.

Condensed Balance Sheets (unaudited)


(U.S. Dollars, in thousands)	December 31, 2012		December 31, 2011
	(Restated)		(Restated)
Assets
Current assets:
Cash and cash equivalents	$	7,392	$	19,433
Prepaid expenses and other current assets		534		487


Total current assets		7,926		19,920
Other long term assets		15		61
Investments in and amounts due from subsidiaries and affiliates		369,204		284,105


Total assets	$	377,145	$	304,086


Liabilities and shareholder’s equity
Current liabilities	$	1,202	$	3,900
Long-term liabilities		8,111		8,111
Shareholder’s equity:
Common stock		1,934		1,846
Additional paid in capital		246,306		214,505
Accumulated earnings		114,847		72,009
Accumulated other comprehensive income		4,745		3,715


		367,832		292,075


Total liabilities and shareholder’s equity	$	377,145	$	304,086

See accompanying notes to condensed financial statements.

Orthofix International N.V.

Schedule 1—Condensed Financial Information of Registrant Orthofix International N.V.

Condensed Statements of Operations (unaudited)


(U.S. Dollars, in thousands)	Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2010
	(Restated)			(Restated)			(Restated)
(Expenses) income:
General and administrative	$	(7,700	)	$	(11,134	)	$	(13,146	)
Equity in earnings of investments in subsidiaries and affiliates		50,317			(6,296	)		59,517
Other, net		24			7			(199	)


Income (loss) before income taxes		42,641			(17,423	)		46,172
Income tax benefit (expense)		197			(687	)		(1,876	)


Net income (loss)	$	42,838		$	(18,110	)	$	44,296

See accompanying notes to condensed financial statements.

Orthofix International N.V.

Schedule 1—Condensed Financial Information of Registrant Orthofix International N.V.

Condensed Statement of Cash Flows


(U.S. Dollars, in thousands)	Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2010
	(Restated)			(Restated)			(Restated)
Net income (loss)	$	42,838		$	(18,110	)	$	44,296

Equity in earnings of investments in subsidiaries and affiliates		(50,317	)		6,296			(59,517	)
Cash used in other operating activities		(6,811	)		3,429			7,111


Net cash used in operating activities		(14,290	)		(8,385	)		(8,110	)

Cash flows from investing activities:
Distributions and amounts received from subsidiaries		12,564			5,875			21,597
Capital expenditures		—			—			(5	)


Net cash provided by investing activities		12,564			5,875			21,592

Cash flows from financing activities:
Net proceeds from issuance of common stock		25,586			20,113			7,854
Contributions to subsidiaries and affiliates		(36,921	)		(2,789	)		(21,274	)

Tax benefit on exercise of stock options		1,020			1,737			2,417


Net cash provided by (used in) financing activities		(10,315	)		19,061			(11,003	)


Net increase (decrease) in cash and cash equivalents		(12,041	)		16,551			2,479
Cash and cash equivalents at the beginning of the year		19,433			2,882			403


Cash and cash equivalents at the end of the year	$	7,392		$	19,433		$	2,882

See accompanying notes to condensed financial statements.

Orthofix International N.V.

Schedule 1—Condensed Financial Information of Registrant Orthofix International N.V.

Notes to Condensed Financial Statements (unaudited)

1.	Background and basis of presentation

These condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule 1 of Regulation S-X, as the restricted net assets of Orthofix Holdings, Inc. and its subsidiaries exceed 25% of the consolidated net assets of Orthofix International N.V. and its subsidiaries (the “Company”). This information should be read in conjunction with the Company’s consolidated financial statements included elsewhere in this filing.

2.	Restricted net assets of subsidiaries

Certain of the Company’s subsidiaries have restrictions on their ability to pay dividends or make intercompany loans and advances pursuant to their financing arrangements. The amount of restricted net assets the Company’s subsidiaries held at December 31, 2012 and 2011 was approximately $213.4 million and $162.7 million, respectively. Such restrictions are on net assets of Orthofix Holdings, Inc. and its subsidiaries.

3.	Commitments, contingencies and long-term obligations

For a discussion of the Company’s commitments, contingencies and long term obligations under its senior secured credit facility, see Note 9, Note 12 and Note 17 of the Company’s consolidated financial statements.

4.	Dividends from subsidiaries

Cash dividends received by Orthofix International N.V. from its consolidated subsidiaries accounted for by the equity method were $5.9 million and $21.6 million for the years ended December 31, 2011 and 2010, respectively. Orthofix International N.V. did not receive cash dividends in 2012.