Kensey Nash Provides Preliminary Second Quarter Results and Updated Guidance
EXTON, Pa., Jan. 15 Kensey Nash Corporation (Nasdaq: KNSY) today provided basic after-effects for its additional division concluded December 31, 2009. In addition, the Company adapted its advice for the abounding budgetary year catastrophe June 30, 2010.
Second Quarter Fiscal 2010
The Company expects to address additional division budgetary 2010 absolute revenues of about $19.1 million, including net sales of $12.5 million and royalties of $6.6 million, as compared to additional division budgetary 2009 absolute revenues of $20.8 million, including net sales of $14.0 million and royalties of $6.8 million.
The Company ahead provided absolute revenues advice of $19.3 to $20.1 million, including net sales of $12.5 to $13.0 million and royalties of $6.8 to $7.1 million. The arrears in royalties is due to lower than accepted Angio-Seal™ royalties on sales of vascular cease accessories awash by St. Jude Medical. Although Angio-Seal™ royalties added abundantly on a consecutive basis, they beneath from the above-mentioned year. This abatement from the above-mentioned year was primarily due to beneath shipment canicule in December 2009 as compared to December 2008. Orthopaedic royalties were in band with the Company’s expectations.
Despite the arrears in royalties, the Company expects to be aural the ahead provided advice ambit of $0.42 to $0.45 for adapted adulterated balance per share* (which excludes the accuse declared below). The Company expects to address additional division budgetary 2010 adulterated balance per allotment to be in the ambit of $0.31 to $0.34 compared to additional division budgetary 2009 adulterated balance per allotment of $0.44. Previously provided advice for the additional division budgetary 2010 adulterated balance per allotment was $0.37 to $0.40. As ahead disclosed, in the additional division of budgetary 2010, the Company implemented a amount abridgement plan primarily associated with bargain endovascular activities and to lower the Company’s all-embracing account levels. Originally, this plan was estimated to aftereffect in accuse of about $0.9 million, but the absolute accuse added to $1.9 million, as appear in the Company’s Quarterly Report on Form10-Q for the aboriginal division of budgetary 2010, because the amount abridgement plan was expanded. This broadcast plan included a aggregate of headcount reduction, and bargain plan schedules during the additional division of budgetary 2010. Accordingly, the $1.9 million allegation has been allocated amid an estimated pre-tax severance allegation of about $1.0 million and an estimated pre-tax unabsorbed aerial amount allegation of about $0.9 million. Adjusted adulterated balance per share* exclude this $1.9 million in charges.
Fiscal 2010 Guidance Update
The Company has adapted its advice for budgetary 2010, abbreviation its acquirement expectations, while advancement its adapted adulterated balance per share* guidance. The Company currently expects absolute revenues for budgetary 2010 will be in the ambit of $79.0 to $81.0 million, and that net sales and royalties will be in the ranges of $52.0 to $53.5 million and $27.0 to $27.5 million, respectively. Previously provided advice for budgetary 2010 absolute revenues was a ambit of $82.5 to $86.0 million, including net sales and royalties estimated to be in the ranges of $55.5 to $57.0 million and $27.0 to $29.0 million, respectively. The Company’s above-mentioned acquirement advice was based on the apprehension that the Company would see abundant advance in acquirement achievement as the healthcare ambiance improved, consistent in a college advance amount in orthopaedic procedures in the additional bisected of budgetary 2010. Although the Company is experiencing an advance in its orders, the amount of advance has to date been lower than ahead expected. Therefore the Company is adjusting its acquirement expectations to reflect the advancing arduous bread-and-butter climate.
The Company’s budgetary 2010 adapted adulterated balance per share* advice is accepted to be in the ambit of $1.81 to $1.85, which has not afflicted from its ahead issued advice range, abundantly because of its amount abridgement plan implemented in the additional division of budgetary 2010. Excluded from the budgetary 2010 adapted adulterated balance per share* amount, is $1.9 million of pre-tax severance and unabsorbed aerial accuse discussed above. The Company expects adulterated balance per allotment for budgetary 2010 will be in the ambit of $1.70 to $1.74 compared to ahead provided advice of $1.76 to $1.80.
* Adjusted adulterated balance per allotment which excludes after-tax severance and unabsorbed aerial amount charges is a non-GAAP banking admeasurement and should not be advised a backup for GAAP after-effects or guidance. For a adaptation of this non-GAAP banking admeasurement to the a lot of anon commensurable GAAP banking measure, see the accompanying table to this release.
January 28, 2010 Earnings Release, Conference Call and Webcast. As ahead announced, the Company will absolution its balance after-effects for its additional division concluded December 31, 2009 at 7:30 A.M. Eastern Time on Thursday, January 28, 2010. Joe Kaufmann, President and CEO, will be hosting a teleconference discussing the balance after-effects on Thursday, January 28, 2010 at 9:00 A.M. Eastern Time. To participate in the teleconference call, bite 1-612-234-9960. The teleconference alarm will aswell be accessible for epitomize starting Thursday, January 28, 2010 at 11:00 A.M. Eastern Time through Thursday, February 4, 2010 at 11:59 P.M. Eastern Time by dialing 1-800-475-6701 with an acceptance cipher of 140560.
Individuals absorbed in alert to the teleconference may aswell do so over the Internet at www.kenseynash.com. To accept to the abide teleconference call, amuse go to the www.kenseynash.com website and accept the Investor Relations page. Please acquiesce 15 account above-mentioned to the alpha of the alarm to annals and download and/or install any all-important software. A epitomize of the teleconference will be archived on the www.kenseynash.com website and may be accessed afterward the teleconference.
About Kensey Nash Corporation. Kensey Nash Corporation is a baton in developing, accomplishment and processing resorbable biomaterial products, accumulation its proprietary collagen and constructed polymer technologies. This ability is acclimated to advance and commercialize its articles through cardinal partners. The Company has an all-encompassing ambit of products, which are awash in assorted medical markets, including, the cardiology, orthopaedic, sports medicine, spine, endovascular and accepted anaplasty markets. The Company is accepted as a avant-garde in the acreage of arterial break closure, as the artist and developer of the Angio-Seal Vascular Closure Device, which is accountant to St. Jude Medical, Inc.
Cautionary Note for Forward-Looking Statements. This columnist absolution contains advanced statements that reflect the Company’s accepted expectations about its affairs and opportunities, including basic additional division budgetary 2010 banking after-effects and banking forecasts for the abounding year budgetary 2010, as discussed beneath “Fiscal 2010 Guidance Update.” The Company has approved to analyze these advanced analytic statements by application words such as “expect,” “anticipate,” “estimate,” “plan,” “will,” “would,” “forecast,” “believe,” “guidance,” “projection” or agnate expressions, but these words are not the absolute agency for anecdotic such statements. The Company cautions that a amount of risks, uncertainties and added important factors could could cause the Company’s absolute after-effects to alter materially from those in the advanced statements including, after limitation, accepted bread-and-butter conditions, adopted bill fluctuations, risks associated with the Company’s connected analysis and development efforts with account to the endovascular articles (including the accident that those efforts will not be acknowledged and that some of the associated anniversary payments will not be received), Spectranetics’ success in affairs the endovascular products, the Company’s success in distributing its articles into the marketplace, the Company’s assurance on three above barter (St. Jude Medical, Arthrex and Orthovita) and their success in affairs Kensey Nash accompanying articles in the marketplace, the appulse of artefact recalls and added accomplishment issues, the Company’s success in its analysis and development efforts in its cartilage adjustment and extracellular cast technologies programs, Synthes’ success in affairs the Company’s extracellular cast products, the achievement of added analytic trials in both the U.S. and Europe to abutment authoritative approval of approaching ancestors of its articles and antagonism from added technologies. For a abundant altercation of factors that could affect the Company’s approaching operating results, amuse see the Company’s SEC filings, including the acknowledgment beneath “Risk Factors” in those filings. Except as especially appropriate by the federal balance laws, the Company undertakes no obligation to amend or alter any advanced statements, whether as a aftereffect of new information, afflicted affairs or approaching contest or for any added reason.
Non-GAAP Financial Measures and Reconciliations
As acclimated herein, “GAAP” refers to about acclimatized accounting attempt in the United States. We use assorted after measures in appointment calls, broker affairs and added forums which are or may be advised “Non-GAAP banking measures” beneath Regulation G. We accept provided below for your advertence added banking acknowledgment for these measures, including the a lot of anon commensurable GAAP admeasurement and an associated reconciliation.
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Preliminary Second Quarter and Updated Full-Year Fiscal 2010 Earnings Guidance Reconciliation |
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Three Months Ending |
Twelve Months Ending |
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December 31, 2009 |
June 30, 2010 |
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Range |
Range |
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Low |
High |
Low |
High |
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Diluted Earnings Per Share – GAAP |
$ 0.31 |
$ 0.34 |
$ 1.70 |
$ 1.74 |
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|
Cost Reduction Plan Charges (a) |
0.11 |
0.11 |
0.11 |
0.11 |
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Adjusted Diluted Earnings Per Share |
$ 0.42 |
$ 0.45 |
$ 1.81 |
$ 1.85 |
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(a) Diluted balance per allotment advice for the additional division and full-year of budgetary 2010 includes accuse incurred in affiliation with a amount abridgement plan primarily associated with bargain endovascular activities and to lower all-embracing account levels. This plan includes an estimated severance allegation of about $1.0 million ($660,000 in after-tax charges), or $0.06 per allotment tax-effected, incurred as a aftereffect of headcount reduction, and about $0.9 million in unabsorbed aerial amount accuse ($610,000 in after-tax charges), or $0.05 per allotment tax-effected, incurred as a aftereffect of bargain plan schedules during the additional division of budgetary 2010.
Note: To supplement our circumscribed banking statements presented in accordance with GAAP, Kensey Nash Corporation uses non-GAAP measures, such as Adjusted Diluted Earnings Per Share. Adjusted Diluted Earnings Per Share is adapted from our GAAP after-effects to exclude assertive costs declared above. This non-GAAP acclimation is provided to enhance the user’s all-embracing compassionate of our actual and accepted banking achievement and our affairs for the future. We accept the non-GAAP after-effects accommodate advantageous advice to both administration and investors by excluding assertive costs that we accept are not apocalyptic of our amount operating results.
This non-GAAP admeasurement will accommodate investors and administration with an addition adjustment for assessing Kensey Nash’s operating after-effects in a address connected with approaching presentation. Further, these non-GAAP after-effects are one of several primary indicators administration uses for planning and forecasting in approaching periods. The presentation of this added advice should not be advised in abreast or as a acting for after-effects able in accordance with accounting attempt about acclimatized in the United States.
SOURCE Kensey Nash Corporation
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