Biomet’s FY14 Revenue Bounces Back

Biomet Inc. closed out its fiscal year with a rebound, according to the company’s recent earnings report.

The Warsaw, Ind.-based orthopedic device-manufacturer’s preliminary full-year and fourth-quarter financial results show a rise in sales and earnings. For the 2014 fiscal year, which ended May 31, Biomet reported earnings of nearly $37 million. That’s up from a net loss of more than $623 million in fiscal 2013.

Officials said consolidated net sales rose 5.6 percent to $3.2 billion, a $170 million dollar improvement from 2013’s net sales of more than $3.05 billion. With special items excluded, adjusted net income was $420 million, compared to nearly $341 million in fiscal 2013.

The company posted solid gains in each of its six product segments, with spine, bone healing and microfixation device proceeds topping growth at 9.3 percent. Sports, extremities and trauma device revenue followed, rising 7.9 percent to $647.5 million, and knee sales climbed 5.9 percent to $995.7 million. Cement, biologics and other product revenue expanded 5.2 percent to $225.2 million, while hip sales increased 2.6 percent to $649.2 million and dental proceeds inched up 0.8 percent to $259.1 million.

Earnings during Biomet’s fourth quarter also rebounded.

The company said net income was $66.7 million, a big turnaround from a $221 million net loss during the fourth quarter of the previous fiscal year.

Consolidated net sales for the fourth quarter jumped 7.7 percent to $844.5 million. That’s up from nearly $784 million in net sales in the prior year. Exluding special items, the adjusted net income was $117.6 million.

Product sales finished the year strong: Spine, bone healing and microfixation revenue skyrocketed 27.1 percent in Q4, generating $124.3 million for Biomet, while cement, biologics and other products garnered an additional 9.4 percent in sales, ending the quarter at $59.9 million. Sports, extremities and trauma proceeds swelled 5.9 percent to $168.7 million; knee sales grew 5.1 percent to $252.4 million; hip revenue increased 3.5 percent to $168.9 million, and dental product proceeds rose 2.6 percent to $70.3 million, according to the firm’s latest earnings report.

Biomet’s strong results come as the company is undergoing an acquisition by rival orthopedics maker Zimmer Holdings Inc. The $13.5 billion deal still requires regulatory approval. Zimmer has planned to finalize the merger by early 2015.