Ossur hf : Össur - Q3 Results 2014

Highlights Q3 2014

• Net profit increased by 26% and amounted to USD 16 million or 13% of sales, compared to USD 13 million or 12% of sales in Q3 2013.
• Sales amounted to USD 127 million compared to USD 105 million in Q3 2013, corresponding to 21% growth and 6% organic growth, both measured in local currency.
• Bracing and supports sales growth was 19% compared to Q3 2013, while organic sales growth was 0%, both measured in local currency.
• Prosthetics sales growth compared to Q3 2013 was 23% and 15% organic, both measured in local currency.
• Gross profit amounted to USD 81 million and 64% of sales, compared to USD 65 million and 62% of sales in Q3 2013.
• EBITDA increased by 30% and amounted to USD 29 million or 23% of sales, compared to USD 22 million or 21% of sales in Q3 2013.
• Cash generated by operations amounted to USD 33 million or 26% of sales, compared to USD 24 million or 23% of sales in Q3 2013.

Revised Guidance for 2014
 
Due to strong growth in sales and good profitability in the quarter, the company has decided to revise the guidance for 2014. The new guidance for the full year of 2014 is as follows:

• Total sales growth LCY in the range of 18-19% (previously 16-18%)
• Organic sales growth LCY in the range of 4-5% (previously 3-4%)
• EBITDA margin in the range of 20-21% of sales (previously 19-20%)
• Capital expenditures in the range of 2.5-3.5% of sales (unchanged)
• Effective tax rate around 26% (unchanged)

Jón Sigurðsson, President & CEO, comments:

"We are pleased to deliver another quarter with strong profitability and our best cash flow to date. We are seeing continued excellent prosthetics sales across all our major markets and product lines. Our results in bracing and supports are in line with expectations. Our emphasis on increased profitability from product rationalization efforts and focus on selling high end innovative products is yielding promising results."

Conference Call

Össur will host a conference call on Friday 24 October 2014 at 12:00 CET/ 10:00 GMT/ 6:00 EDT.
To participate in the call please dial: Europe: +44 (0) 203 364 5374 or +46 (0) 8 505 564 74,
The United States: +1 855 753 2230, Iceland: +354 800 7219