EATONTOWN, N.J., Feb. 20 /PRNewswire-FirstCall/ -- Osteotech, Inc.
(Nasdaq: OSTE), a leader in the emerging field of biologic solutions for
regenerative medicine, announced today that total revenue for the year
ending December 31, 2007 increased 5% to $104.3 million compared to $99.2
million for the year ended December 31, 2006. Revenue from "core" product
lines, DBM and Hybrid/Synthetic products, was $67.6 million for full year
2007, an increase of 15% over core product revenue of $58.8 million in the
prior year. Gross margin improved to 51.5% for the year ended December 31,
2007 compared to 48.2% in the same period in 2006.
Diluted earnings per share for the year ended December 31, 2007 was
$.15 on net income of $2.6 million as compared to diluted earnings per
share of $.11 for full year 2006 on net income of $1.9 million.
Sam Owusu-Akyaw, Osteotech's President and Chief Executive Officer,
stated, "It was a tremendous achievement and an important milestone in
Osteotech's history to exceed $100 million in revenue. The world-wide
Osteotech family contributed to this success and each member of the
Osteotech team is proud of this accomplishment."
Mr. Owusu-Akyaw continued, "Our key financial metrics continue to
demonstrate disciplined execution of our business plan. Our core products
continue to grow while gross margin and profitability continue to improve.
Our cash flow is strong and will allow us to support future growth. Our new
product pipeline is solid, which we expect will increase our product
offerings and is expected to be the major contributor to our growth."
Mr. Owusu-Akyaw concluded, "Just as Osteotech's pioneering tissue
processing technology advanced the industry in the 1990's, Osteotech is
developing new and innovative technologies to further its growth in the
emerging biologics and regenerative medicine industry."
Total revenue for the three months ended December 31, 2007 increased 6%
to $26.9 million from $25.4 million for the fourth quarter of 2006. Core
product revenue increased 17% to $17.7 million for the three months ended
December 31, 2007 as compared to revenue of $15.1 million from core
products in the fourth quarter of 2006. Gross margin improved to 53.5% in
the fourth quarter of 2007 as compared to 47.6% in the fourth quarter of
2006.
Diluted earnings per share for the three months ended December 31, 2007
was $.04 on net income of $.8 million as compared to net income of $.1
million for the three months ended December 31, 2006.
Osteotech will host a conference call on Wednesday, February 20, 2008
at 9:00 a.m. Eastern Time during which management will discuss full year
and fourth quarter financial results. You are invited to listen to the
conference call by dialing 1-706-643-1624. The conference call will also be
simultaneously webcast at http://www.osteotech.com. Automated playback will
be available two hours after completion of the live call, through midnight,
Wednesday, March 5, 2008, by dialing 1-706-645-9291 and indicating access
code 34462919.
Osteotech, Inc., headquartered in Eatontown, New Jersey, is a global
leader in providing OsteoBiologic solutions for regenerative medicine to
support surgeons and their patients in the repair of the musculoskeletal
system through the development of innovative therapy-driven products that
alleviate pain, promote biologic healing and restore function. For further
information regarding Osteotech, this press release or the conference call,
please go to Osteotech's website at http://www.osteotech.com.
Certain statements made throughout this press release that are not
historical facts contain forward-looking statements (as such are defined in
the Private Securities Litigation Reform Act of 1995) regarding the
Company's future plans, objectives and expected performance. Any such
forward-looking statements are based on assumptions that the Company
believes are reasonable, but are subject to a wide range of risks and
uncertainties and, therefore, there can be no assurance that actual results
may not differ materially from those expressed or implied by such
forward-looking statements. Factors that could cause actual results to
differ materially include, but are not limited to, the Company's ability to
develop and introduce new products, differences in anticipated and actual
product and service introduction dates, the ultimate success of those
products in the marketplace, the continued acceptance and growth of current
products and services, the impact of competitive products and services, the
availability of sufficient quantities of suitable donated tissue and the
success of cost control and margin improvement efforts. Certain of these
factors are detailed from time to time in the Company's periodic reports
filed with the Securities and Exchange Commission. All information in this
press release is as of February 20, 2008 and the Company does not intend to
update this information.
OSTEOTECH, INC. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share data)
Three Months Year Ended
Ended December 31, December 31,
2006
2007 (restated) 2007 2006
Revenue $ 26,939 $ 25,431 $104,277 $ 99,241
Cost of revenue 12,532 13,322 50,555 51,439
Gross profit 14,407 12,109 53,722 47,802
Marketing, selling and
general and administrative 11,696 10,771 44,801 40,627
Research and development 1,965 1,321 5,658 4,828
13,661 12,092 50,459 45,455
Operating income 746 17 3,263 2,347
Interest expense, net (129) (176) (588) (914)
Other 185 57 (1) 416
Income (loss) before income
taxes 802 (102) 2,674 1,849
Income tax provision (benefit) (4) (163) 57 (58)
Net Income $ 806 $ 61 $ 2,617 $ 1,907
Earnings per share:
Basic $ .05 $ - $ .15 $ .11
Diluted $ .04 $ - $ .15 $ .11
Shares used in computing
earnings per share:
Basic 17,666,940 17,347,880 17,538,254 17,298,352
Diluted 18,093,058 17,542,228 17,926,384 17,399,719
CONSOLIDATED SEGMENT REVENUE DETAIL
(dollars in thousands)
Three Months Year Ended
Ended December 31, December 31,
2007 2006 2007 2006
DBM $ 17,107 $ 14,792 $ 65,794 $ 57,493
Hybrid/Synthetic 591 332 1,760 1,270
Core Revenue 17,698 15,124 67,554 58,763
Traditional Tissue 4,491 4,674 17,623 16,955
Spinal Allografts 2,438 3,027 10,739 13,795
Client Services 2,085 2,456 7,621 9,128
Other Product Lines 227 150 740 600
Non Core Revenue 9,241 10,307 36,723 40,478
Revenue $ 26,939 $ 25,431 $104,277 $ 99,241
OSTEOTECH, INC. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEET
(dollars in thousands)
December 31,
2007 2006
Assets
Cash and cash equivalents $22,777 $17,946
Accounts receivable, net 19,353 18,507
Deferred processing costs 30,850 29,067
Inventories 1,171 1,005
Other current assets 3,957 2,795
Total current assets 78,108 69,320
Property, plant and equipment, net 34,508 36,340
Other assets 7,735 7,373
$120,351 $113,033
Liabilities and Stockholders' Equity
Accounts payable and accrued liabilities $19,364 $15,861
Current maturities of capital lease obligation 807 727
Total current liabilities 20,171 16,588
Capital lease obligation 14,070 14,876
Other liabilities 7,082 7,716
Total liabilities 41,323 39,180
Stockholders' equity 79,028 73,853
$120,351 $113,033
SOURCE Osteotech, Inc.
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Related links:
http://www.osteotech.com
http://www.prnewswire.com/comp/668050.html /
CONTACT:
Mark H. Burroughs, of Osteotech, Inc.,
+1-732-542-2800
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