Orthofix International N.V.
ORTHOFIX INTERNATIONAL N V (Form: 8-K, Received: 06/19/2012 06:03:06)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 


 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): June 18, 2012

 


 

Orthofix International N.V.

(Exact name of Registrant as specified in its charter)

 

Curaçao

 

0-19961

 

N/A

(State or other jurisdiction of incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No.)

 

7 Abraham de Veerstraat

Curaçao

 

N/A

(Address of principal executive offices)

 

(Zip Code)

 


 

Registrant’s telephone number, including area code: 011-59-99-465-8525

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

 

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 7.01.                                           Regulation FD Disclosure.

 

As previously reported, on May 24, 2012, Orthofix Holdings, Inc. (“ Seller ”), an indirect wholly owned subsidiary of Orthofix International N.V. (the “ Company ”), completed the sale of all issued and outstanding shares of capital stock of Breg, Inc. (“ Breg ”), an indirect wholly owned subsidiary of the Company, to Breg Acquisition Corp. (“ Buyer ”), a newly formed affiliate of Water Street Healthcare Partners II, L.P. (“ Water Street ”).  On May 31, 2012, the Company filed a Current Report on Form 8-K containing unaudited pro forma condensed consolidated financial statements of the Company required by Article 11 of Regulation S-X reflecting the estimated pro forma effect of the disposition on the Company.

 

On June 18, 2012, the Company made available supplemental unaudited consolidated quarterly statement of operations data for the fiscal year ended December 31, 2011 and quarter ending March 31, 2012 on its website at http://ir.orthofix.com/financials.cfm.  This supplemental unaudited financial data, which reflects Breg as a discontinued operation, has been prepared on the same basis as the consolidated statement of operations data for such year that has been previously filed by the Company in its Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and Form 10-Q for quarter ending March 31, 2012, and should be read together therewith.  This information has been posted solely for the purpose of providing additional detail related to the continuing and discontinued operations of the Company.

 

A copy of the Company’s supplemental unaudited consolidated quarterly statement of operations data for the fiscal year ended December 31, 2011 and quarter ending March 31, 2012 is furnished herewith as Exhibit 99.1.  The information in this Item 7.01, including Exhibit 99.1, is being furnished pursuant to Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “E xchange Act ”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Exchange Act or Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01.              Financial Statements and Exhibits .

 

(d)           Exhibits

 

99.1                            Supplemental unaudited consolidated quarterly statement of operations data for Orthofix International N.V. and its subsidiaries for the fiscal year ended December 31, 2011 and quarter ending March 31, 2012

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

Orthofix International N.V.

 

 

 

 

 

By:

/s/ Brian McCollum

 

 

Senior Vice President of Finance and Chief Financial Officer

 

 

Date: June 18, 2012

 

3



 

EXHIBIT INDEX

 

Exhibit No.

 

Description

 

 

 

99.1

 

Supplemental unaudited consolidated quarterly statement of operations data for Orthofix International N.V. and its subsidiaries for the fiscal year ended December 31, 2011 and quarter ending March 31, 2012

 

4


Exhibit 99.1

 

ORTHOFIX INTERNATIONAL N.V.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, U.S. Dollars, in thousands, except per share and share data)

 

 

 

Q1 2012

 

Q1 2011

 

 

 

 

 

Disc Ops

 

Disc Ops

 

 

 

Disc Ops

 

Disc Ops

 

 

 

As Reported

 

Reclass

 

Presentation

 

As Reported

 

Reclass

 

Presentation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

143,141

 

$

(27,100

)

$

116,041

 

$

139,165

 

$

(26,065

)

$

113,100

 

Cost of sales

 

32,882

 

(10,941

)

21,941

 

33,361

 

(11,010

)

22,351

 

Gross profit

 

110,259

 

(16,159

)

94,100

 

105,804

 

(15,055

)

90,749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

58,280

 

(8,759

)

49,521

 

55,598

 

(8,159

)

47,439

 

General and administrative

 

20,943

 

(6,374

)

14,569

 

22,960

 

(4,152

)

18,808

 

Research and development

 

7,745

 

(693

)

7,052

 

6,052

 

(608

)

5,444

 

Amortization of intangible assets

 

1,247

 

(718

)

529

 

1,255

 

(707

)

548

 

Charges related to U.S. Government resolutions

 

 

 

 

46,000

 

 

46,000

 

 

 

88,215

 

(16,544

)

71,671

 

131,865

 

(13,626

)

118,239

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

22,044

 

385

 

22,429

 

(26,061

)

(1,429

)

(27,490

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income and expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(2,225

)

4

 

(2,221

)

(2,416

)

 

(2,416

)

Other (expense) income, net

 

(746

)

118

 

(628

)

(1,073

)

(36

)

(1,109

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense, net

 

(2,971

)

122

 

(2,849

)

(3,489

)

(36

)

(3,525

)

Income before income taxes

 

19,073

 

507

 

19,580

 

(29,550

)

(1,465

)

(31,015

)

Income tax expense

 

(7,057

)

(193

)

(7,250

)

(6,251

)

557

 

(5,694

)

Net income (loss) from continuing operations, net of tax

 

12,016

 

314

 

12,330

 

(35,801

)

(908

)

(36,709

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations

 

 

(507

)

(507

)

 

1,465

 

1,465

 

Income tax expense (1)

 

 

193

 

193

 

 

(557

)

(557

)

Net income (loss) from discontinued operations, net of tax

 

 

(314

)

(314

)

 

908

 

908

 

Net income (loss)

 

$

12,016

 

$

 

$

12,016

 

$

(35,801

)

$

 

$

(35,801

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share - basic

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations, net of tax

 

$

0.64

 

 

 

$

0.66

 

$

(2.00

)

 

 

$

(2.05

)

Net income (loss) from discontinued operations, net of tax

 

 

 

 

(0.02

)

 

 

 

0.05

 

Net income (loss) per common share - basic

 

$

0.64

 

 

 

$

0.64

 

$

(2.00

)

 

 

$

(2.00

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share - diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations, net of tax

 

$

0.63

 

 

 

$

0.65

 

$

(2.00

)

 

 

$

(2.05

)

Net income (loss) from discontinued operations, net of tax

 

 

 

 

(0.02

)

 

 

 

0.05

 

Net income (loss) per common share - diluted

 

$

0.63

 

 

 

$

0.63

 

$

(2.00

)

 

 

$

(2.00

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic

 

18,675,694

 

 

 

18,675,694

 

17,937,280

 

 

 

17,937,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - diluted

 

19,116,195

 

 

 

19,116,195

 

17,937,280

 

 

 

17,937,280

 

 

Note: Some calculations may be impacted by rounding.

 


(1)           Income tax expense on discontinued operations is reflected at a rate of 38%

 



 

ORTHOFIX INTERNATIONAL N.V.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, U.S. Dollars, in thousands, except per share and share data)

 

 

 

Q2 2011

 

Q3 2011

 

 

 

 

 

Disc Ops

 

Disc Ops

 

 

 

Disc Ops

 

Disc Ops

 

 

 

As Reported

 

Reclass

 

Presentation

 

As Reported

 

Reclass

 

Presentation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

143,551

 

$

(26,872

)

$

116,679

 

$

144,747

 

$

(27,435

)

$

117,312

 

Cost of sales

 

34,693

 

(11,585

)

23,108

 

36,029

 

(12,219

)

23,810

 

Gross profit

 

108,858

 

(15,287

)

93,571

 

108,718

 

(15,216

)

93,502

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

58,199

 

(8,169

)

50,030

 

57,615

 

(8,222

)

49,393

 

General and administrative

 

23,949

 

(6,593

)

17,356

 

20,214

 

(6,226

)

13,988

 

Research and development

 

6,766

 

(534

)

6,232

 

6,555

 

(572

)

5,983

 

Amortization of intangible assets

 

1,373

 

(819

)

554

 

1,319

 

(782

)

537

 

Charges related to U.S. Government resolutions

 

 

 

 

 

 

 

 

 

90,287

 

(16,115

)

74,172

 

85,703

 

(15,802

)

69,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

18,571

 

828

 

19,399

 

23,015

 

586

 

23,601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income and expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(2,198

)

 

(2,198

)

(2,267

)

 

(2,267

)

Other (expense) income, net

 

(312

)

(30

)

(342

)

(368

)

(31

)

(399

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense, net

 

(2,510

)

(30

)

(2,540

)

(2,635

)

(31

)

(2,666

)

Income before income taxes

 

16,061

 

798

 

16,859

 

20,380

 

555

 

20,935

 

Income tax expense

 

(6,103

)

(303

)

(6,406

)

(8,002

)

(211

)

(8,213

)

Net income (loss) from continuing operations, net of tax

 

9,958

 

495

 

10,453

 

12,378

 

344

 

12,722

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations

 

 

(798

)

(798

)

 

(555

)

(555

)

Income tax expense (1)

 

 

303

 

303

 

 

211

 

211

 

Net income (loss) from discontinued operations, net of tax

 

 

(495

)

(495

)

 

(344

)

(344

)

Net income (loss)

 

$

9,958

 

$

 

$

9,958

 

$

12,378

 

$

 

$

12,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share - basic

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations, net of tax

 

$

0.55

 

 

 

$

0.58

 

$

0.67

 

 

 

$

0.69

 

Net income (loss) from discontinued operations, net of tax

 

 

 

 

(0.03

)

 

 

 

(0.02

)

Net income (loss) per common share - basic

 

$

0.55

 

 

 

$

0.55

 

$

0.67

 

 

 

$

0.67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share - diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations, net of tax

 

$

0.54

 

 

 

$

0.56

 

$

0.66

 

 

 

$

0.67

 

Net income (loss) from discontinued operations, net of tax

 

 

 

 

$

(0.02

)

 

 

 

$

(0.01

)

Net income (loss) per common share - diluted

 

$

0.54

 

 

 

$

0.54

 

$

0.66

 

 

 

$

0.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic

 

18,110,607

 

 

 

18,110,607

 

18,384,451

 

 

 

18,384,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - diluted

 

18,541,220

 

 

 

18,541,220

 

18,850,625

 

 

 

18,850,625

 

 

Note: Some calculations may be impacted by rounding.

 


(1)           Income tax expense on discontinued operations is reflected at a rate of 38%

 



 

ORTHOFIX INTERNATIONAL N.V.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, U.S. Dollars, in thousands, except per share and share data)

 

 

 

Q4 2011

 

FY 2011

 

 

 

 

 

Disc Ops

 

Disc Ops

 

 

 

Disc Ops

 

Disc Ops

 

 

 

As Reported

 

Reclass

 

Presentation

 

As Reported

 

Reclass

 

Presentation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

151,526

 

$

(28,434

)

$

123,092

 

$

578,988

 

$

(108,803

)

$

470,185

 

Cost of sales

 

35,104

 

(11,894

)

23,210

 

139,186

 

(46,539

)

92,647

 

Gross profit

 

116,422

 

(16,540

)

99,882

 

439,802

 

(62,264

)

377,538

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

62,197

 

(8,778

)

53,419

 

233,609

 

(33,464

)

200,145

 

General and administrative

 

19,345

 

(5,124

)

14,221

 

86,468

 

(22,116

)

64,352

 

Research and development

 

5,774

 

(566

)

5,208

 

25,148

 

(2,286

)

22,862

 

Amortization of intangible assets

 

1,648

 

(939

)

709

 

5,595

 

(3,245

)

2,350

 

Charges related to U.S. Government resolutions

 

10,463

 

 

10,463

 

56,463

 

 

56,463

 

 

 

99,427

 

(15,407

)

84,020

 

407,283

 

(61,111

)

346,172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

16,995

 

(1,133

)

15,862

 

32,519

 

(1,153

)

31,366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income and expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(2,583

)

6

 

(2,577

)

(9,463

)

6

 

$

(9,457

)

Other (expense) income, net

 

(599

)

38

 

(561

)

(2,353

)

(60

)

(2,413

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense, net

 

(3,182

)

44

 

(3,138

)

(11,816

)

(54

)

(11,870

)

Income before income taxes

 

13,813

 

(1,089

)

12,724

 

20,703

 

(1,207

)

19,496

 

Income tax expense

 

(1,421

)

414

 

(1,007

)

(21,776

)

459

 

$

(21,317

)

Net income (loss) from continuing operations, net of tax

 

12,392

 

(675

)

11,717

 

(1,073

)

(748

)

(1,821

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations

 

 

1,089

 

1,089

 

 

1,207

 

1,207

 

Income tax expense (1)

 

 

(414

)

(414

)

 

(459

)

(459

)

Net income (loss) from discontinued operations, net of tax

 

 

675

 

675

 

 

748

 

748

 

Net income (loss)

 

$

12,392

 

$

 

$

12,392

 

$

(1,073

)

$

 

$

(1,073

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share - basic

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations, net of tax

 

$

0.67

 

 

 

$

0.64

 

$

(0.06

)

 

 

$

(0.10

)

Net income (loss) from discontinued operations, net of tax

 

 

 

 

$

0.03

 

 

 

 

0.04

 

Net income (loss) per common share - basic

 

$

0.67

 

 

 

$

0.67

 

$

(0.06

)

 

 

$

(0.06

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share - diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations, net of tax

 

$

0.66

 

 

 

$

0.62

 

$

(0.06

)

 

 

$

(0.10

)

Net income (loss) from discontinued operations, net of tax

 

 

 

 

$

0.04

 

 

 

 

0.04

 

Net income (loss) per common share - diluted

 

$

0.66

 

 

 

$

0.66

 

$

(0.06

)

 

 

$

(0.06

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic

 

18,436,756

 

 

 

18,436,756

 

18,219,343

 

 

 

18,219,343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - diluted

 

18,739,623

 

 

 

18,739,623

 

18,219,343

 

 

 

18,219,343

 

 

Note: Some calculations may be impacted by rounding.

 


(1)           Income tax expense on discontinued operations is reflected at a rate of 38%