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Company to Restate Financial Statements for Fiscal Years 2011 and
2012 and First Quarter 2013
LEWISVILLE, Texas--(BUSINESS WIRE)--
Orthofix International N.V. (NASDAQ:OFIX) (the "Company") today provided
an update regarding the previously disclosed independent review being
conducted by the Audit Committee (the "Audit Committee") of the
Company's Board of Directors (the "Board"), with the assistance of
outside professionals, of matters relating to revenue recognition for
prior periods.
Although the Audit Committee review remains at a preliminary stage, on
August 5, 2013, the Audit Committee concluded, after consultation with
management and the Company's independent registered public accounting
firm, that certain revenues recognized during 2011 and 2012, upon
further evaluation, should not have been recognized or should not have
been recognized during the periods in which they were recognized. As a
result of the foregoing, on August 5, 2013, the Audit Committee
concluded, after consultation with management and the outside auditors,
that the Company's previously issued consolidated financial statements
as of and for the fiscal years ended December 31, 2011 and December 31,
2012 (as well as the interim quarterly periods within such years), as
well as for the interim quarterly period ended March 31, 2013, should no
longer be relied upon. On August 6, 2013, the Board ratified the
foregoing conclusion by the Audit Committee.
Management continues to assess the Company's disclosure controls and
procedures and internal control over financial reporting for current and
prior periods. Management does not expect to reach a final conclusion on
the effectiveness of the Company's internal control over financial
reporting and disclosure controls and procedures until completion of the
restatement process, but expects to report in future or amended filings
the existence of one or more material weaknesses in the Company's
internal control over financial reporting relating to the restatement.
The Audit Committee is continuing its review. At this time, the Company
cannot predict the aggregate amount of revenue that will ultimately be
restated, whether additional periods beyond those referenced above will
be affected, the final outcome or timing of the Audit Committee's
continuing review of these matters, or the timing of the Company's
filing of restated financial statements for the affected annual and
quarterly periods.
"We are focused on achieving our key priorities and providing customers
with the highest level of products and service they have come to expect
from Orthofix," said Brad Mason, Orthofix President and Chief Executive
Officer. "Our commitment to developing and delivering innovative
orthopedic solutions remains unwavering and, thanks to the hard work and
dedication of our employees, we remain confident with respect to the
Company's future prospects."
About Orthofix:
Orthofix International N.V. is a diversified, global medical device
company focused on developing and delivering innovative orthopedic
solutions that drive value for patients, surgeons, and providers.
Orthofix's products are widely distributed around the world to surgeons
and patients via Orthofix's sales representatives and its subsidiaries,
and via collaborations with other leading orthopedic product companies.
In addition, Orthofix is collaborating on R&D activities with leading
research and clinical organizations such as the Musculoskeletal
Transplant Foundation and Texas Scottish Rite Hospital for Children. For
more information about Orthofix, please visit www.orthofix.com.
Forward-Looking Statements:
This communication contains certain forward-looking statements under the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements, which may include, but are not limited to, statements
concerning the projections, financial condition, results of operations
and businesses of Orthofix and its subsidiaries and are based on
management's current expectations and estimates and involve risks and
uncertainties that could cause actual results or outcomes to differ
materially from those contemplated by the forward-looking statements.
The forward-looking statements in this release do not constitute
guarantees or promises of future performance. Factors that could cause
or contribute to such differences may include, but are not limited to,
risks relating to the uncertain results and timing of our audit
committee's review of matters relating to revenue recognition for prior
periods, our expected inability to timely file our quarterly report on
Form 10-Q for the fiscal quarter ended June 30, 2013 (including our
expected filing of a Form 12b-25 (Notification of Late Filing) with the
SEC with respect to such fiscal quarter), and our expected need to file
restated financial statements for certain periods, as well how these
matters may impact our expenses, liquidity, legal liability, borrowing
ability, product sales, relationships with customers, suppliers,
strategic partners and third party reimbursement providers, ongoing
compliance obligations under our corporate integrity agreement with the
Office of Inspector General of the Department of Health and Human
Services, deferred prosecution agreement with the U.S. Department of
Justice and consent decree with the SEC, ability to remain in compliance
with covenants and other obligations under our senior secured credit
agreement, the cost and nature of our insurance coverage, continued
listing of our securities on the Nasdaq Stock Market, and other factors
described in our annual report on Form 10-K for the fiscal year ended
December 31, 2012 and other subsequent periodic reports filed by the
Company with the SEC. Existing and prospective investors are cautioned
not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Company undertakes no obligation
to update or revise the information contained in this press release.
Orthofix International N.V.
Mark Quick, 214-937-2924
Director
of Investor Relations and Business Development
markquick@orthofix.com
Source: Orthofix International N.V.
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