Jan 10 2012
Biomet, Inc. announced today financial results for its second fiscal quarter ended November 30, 2011. The Company announced preliminary net sales results for the fiscal second quarter in its press release issued December 19, 2011, which is posted on Biomet's website at www.biomet.com in the Investors Section. There have been no changes to the net sales results following the release of the preliminary net sales results.
Second Quarter Financial Results
Net sales during the second quarter of fiscal year 2012 increased 4% to $725.1 million compared to net sales during the second quarter of fiscal year 2011 of $698.3 million. On a constant currency basis, net sales increased 3% during the second quarter.
Special items (pre-tax) totaled $115.9 million during the second quarter, including $85.1 million of non-cash amortization and depreciation expense related to the Merger and $30.8 million of non-Merger related special items, primarily associated with Biomet's operational improvement program.
On a reported basis, operating income was $103.8 million during the second quarter of fiscal year 2012, compared to operating income of $105.8 million during the second quarter of fiscal year 2011. Adjusted operating income totaled $219.7 million during the second quarter of fiscal year 2012.
Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") for the second quarter was $266.3 million, or 36.7% of net sales during the second quarter of fiscal year 2012, compared to adjusted EBITDA of $263.7 million in the second quarter of fiscal 2011.
Interest expense was $120.8 million during the second quarter of fiscal year 2012, compared to $122.9 million during the second quarter of the prior year, principally due to lower average interest rates on the Company's term loan facilities.
On a reported basis, cash flow from operations totaled $10.7 million for the second quarter of fiscal year 2012, reflecting $191.7 million of cash interest paid in the quarter. Free cash flow (operating cash flow of $10.7 million minus capital expenditures of $42.0 million) was a use of cash of $31.3 million.
The Company's reported gross debt was $5.921 billion as of November 30, 2011, and cash and cash equivalents as defined in the Company's credit agreement dated September 25, 2007, totaled $384 million, which resulted in net debt of $5.537 billion. From May 31, 2008, the first fiscal year-end after the Merger, to November 30, 2011, net debt decreased by $636 million as a result of an increase in cash and cash equivalents of $256 million and a $380 million reduction of gross debt. The reduction of gross debt includes a $188 million decrease due to favorable foreign currency translation on the Company's euro-denominated debt.
The Company's senior secured leverage ratio as of November 30, 2011 was 3.33 times the last twelve months ("LTM") adjusted EBITDA, as defined by our credit agreement, compared to 4.16 times at May 31, 2008. The net debt leverage ratio was 5.47 times LTM adjusted EBITDA at November 30, 2011, compared to 6.97 times as of May 31, 2008.