Symmetry Medical Inc. (NYSE: SMA), a leading independent provider of products to the global orthopaedic device industry and other medical markets, announced fourth quarter and full year 2009 financial results for the period ended January 2, 2010.
Revenue for the fourth quarter 2009 was $76.4 million, compared to $99.7 million reported in the fourth quarter 2008. Revenues during the quarter were unfavorably impacted by reduced customer demand across all segments of the business.
Gross profit for the fourth quarter 2009 was $14.0 million, compared to $23.3 million in the fourth quarter 2008. Gross margin percentage for the fourth quarter 2009 was 18.3% compared to gross margin percentage of 23.4% in the same period last year. The year-over-year decrease in gross profit and gross margin was driven by lower customer demand, which had an unfavorable impact on the Company's fixed cost recovery.
Selling, general and administrative expenses declined in the fourth quarter 2009 to $10.9 million, a 21.7% reduction from $13.9 million in the fourth quarter 2008. The year-over-year decrease was driven primarily by aggressive cost controls implemented during 2009.
Operating income for the fourth quarter 2009 was $1.2 million, compared to $9.5 million for the fourth quarter 2008. Operating margin for the fourth quarter 2009 was 1.5%, compared to operating margin of 9.5% for the fourth quarter 2008. The fourth quarter 2009 included $2.0 million in one-time expenses related to the Company's facility consolidation and severance payments, all of which were announced in or prior to December 2009. Excluding these expenses, operating income for the fourth quarter 2009 was $3.2 million and operating margin was 4.1%.
The fourth quarter 2009 included a non-cash gain of $0.4 million for the mark to market of the Company's interest rate derivative, compared to a non-cash charge for the interest rate derivative of $1.5 million in the fourth quarter 2008.
Income tax benefit for the fourth quarter 2009 was $0.6 million, compared to a tax benefit of $2.5 million for the fourth quarter of 2008.