Tornier N.V. (NASDAQ: TRNX), a global medical device company focused on providing surgical solutions to orthopaedic extremity specialists, today reported its financial results for the first quarter of 2012 and updated its fiscal 2012 financial outlook.
Sales for the first quarter of 2012 reached $74.5 million compared to first quarter 2011 sales of $69.4 million, representing increases of 7.2% as reported and 8.8% in constant currency. First quarter 2012 sales of Tornier's extremity product categories increased 10.5% as reported and 11.4% in constant currency over the prior year's first quarter and represented 78% of reported global sales.
Douglas W. Kohrs, President and Chief Executive Officer of Tornier, commented, "For the sixth consecutive quarter, we delivered double digit extremities growth in constant currency due to our ongoing commitment to investments in our extremities product portfolio. As we proceed with our programs to strengthen our domestic distribution channel and expand our international markets, we expect our innovative products to continue to drive market share gains around the world."
The Company's first quarter 2012 adjusted EBITDA, as defined in the GAAP to non-GAAP reconciliation provided later in this release, was $10.2 million or 13.7% of sales, compared to $9.1 million or 13.2% of sales in the same quarter of the prior year.
Mr. Kohrs continued, "We are pleased with our expanded gross margins in the first quarter which, when combined with working capital improvements, led to our second consecutive quarter of positive free cash flow. We believe that our recent facility consolidation initiatives, combined with our improving margins, position us well to deliver operating leverage."
Sales and Product Review
Tornier's first quarter 2012 constant currency sales growth of 8.8% was led by its extremity product categories which together posted constant currency growth of 11.4% over the first quarter of 2011. Within the extremity products group, first quarter constant currency growth of the upper extremity joints and trauma category was 12.5%, led by the shoulder arthroplasty portfolio. The Aequalis Ascend™ and the Aequalis® reverse systems continued to gain prominence globally while the Simpliciti™ stemless shoulder system was launched into additional international markets. Tornier's lower extremity joints and trauma category grew 6.6% in constant currency due to growth from the market-leading Salto® ankle arthroplasty system and the innovative Stabilis™ ankle fusion system. The sports medicine and biologics product category posted first quarter constant currency sales growth of 7.6%, led by the Company's Piton® and Insite®FT bone anchor lines introduced in various international markets. Sales of Tornier's large joints and other product category grew 1% in constant currency in the quarter driven by growth in both the hip and knee product lines, offset by decreases in instrument sales.
On a geographic basis, Tornier's international sales increased 7.2% as reported and 10.7% in constant currency as compared to the first quarter of 2011 and represented 47% of global sales. Sales in the United States increased 7.2% and represented 53% of global sales.