Wright Medical Group N.V. Announces Unaudited Consolidated Earnings Results for the First Quarter Ended March 27, 2016; Revises Earnings Guidance for the Full Year 2016; Provides Earnings Guidance for the Second Quarter, Third Quarter and Fourth Quarter of Fiscal 2016
The company anticipates net sales for full-year 2016 of approximately $705 million to $715 million, an increase from the previous guidance range of $695 million to $705 million. The midpoint of this net sales guidance range assumes extremities and biologics pro forma constant currency growth of 14%, excluding the impact of revenue dis-synergies of approximately $25 million to $30 million. The company anticipates 2016 adjusted EBITDA from continuing operations of $30.0 million to $35.0 million, an increase from the previous guidance range of $20 million to $30 million. This range reflects approximately $10 million to $15 million of potential cost synergies expected to be realized in 2016 from the merger with Tornier. The company anticipates adjusted cash loss per share from continuing operations, including share-based compensation for full-year 2016 of $0.64 to $0.59 per diluted share. The company does expect to use cash in 2016 to fund normal business operations, discontinued operations and integration-related costs.
The company provided earnings guidance for the second quarter, third quarter and fourth quarter of fiscal 2016. The company expects significantly lower but positive EBITDA in the second quarter as it expects to have lower sales due to seasonality and additional dis-synergies as compared to the first quarter as well as some of the spending the company expected to occur in first quarter shifting to later quarters.
The company continues to expect third quarter to be the lowest quarter for net sales and adjusted EBITDA, primarily due to seasonality.
The company announced that fourth quarter is the seasonally strongest quarter for both net sales and adjusted EBITDA. However, given the significant the quarter EBITDA over performance, fourth quarter may not be significantly larger than first quarter on the EBITDA line.