DJO Posts Loss Despite Sales Growth for 2014

San Diego, Calif.-based DJO Global Inc., which makes devices for musculoskeletal health, vascular health and pain management, has released it financial results for the fourth quarter of fiscal year 2014 ending Dec. 31.

Net sales were $327.1 million, reflecting sales per day, constant currency growth of 4.3 percent, compared with net sales of $313.6 million for the fourth quarter of 2013.

Net sales for DJO’s bracing and vascular segment were $137.6 million in the fourth quarter of 2014, reflecting growth of 5.9 percent on a sales per day basis, compared to the fourth quarter of 2013, driven by strong contribution from the sales of new products and improving sales execution. For the full year of 2014, net sales for the bracing and vascular segment were $504.6 million and increased 6 percent over the full year of 2013.

Net sales for DJO’s recovery sciences segment were $80.3 million in the fourth quarter of 2014, reflecting a contraction of 5.3 percent on a sales per day basis, compared to the fourth quarter of 2013, primarily due to the slower than anticipated sales in the Empi (an electrotherapy device) and regeneration business units. For the full year of 2014, net sales for the recovery sciences segment were $299.1 million and contracted 4.5 percent from net sales for the full year of 2013.

Fourth quarter net sales within the international segment were $81.8 million. Excluding the impact of changes in foreign currency exchange rates from rates in effect in the prior year period, net sales for the third quarter of 2014 increased 9.9 percent on a sales per day basis from the fourth quarter of 2013. For the full year of 2014, net sales for the international segment were $325.3 million and increased 9.8 percent on a constant currency basis over sales for the full year of 2013.

Net sales for the surgical implant segment were $27.3 million for the fourth quarter of 2014, reflecting growth of 11 percent on a sales per day basis over net sales in the fourth quarter of 2013, driven by strong sales of each of the company’s shoulder, knee and hip product lines. For the full year of 2014, net sales for the surgical implant segment were $100.1 million and increased 15 percent over 2013.

DJO achieved net sales of $1.23 billion for FY2014, reflecting growth of 4.6 percent compared to net sales of $1.18 billion for the previous year. Net sales for the twelve months of 2014 were unfavorably impacted by changes in foreign currency exchange. In constant currency, net sales for the twelve months of 2014 increased by 4.8 percent compared to the twelve months of 2013.

For FY14, DJO reported a net loss of $90.5 million, compared to of $203.5 million for FY2013.