[January 08, 2014] |
|
Biomet Announces Second Quarter of Fiscal 2014 Financial Results
WARSAW, Ind. --(Business Wire)--
Biomet, Inc. announced today financial results for its second quarter
ended November 30, 2013.
Second Quarter Financial Results
-
Consolidated net sales increased 4.5% (5.4% constant currency)
worldwide to approximately $826 million
-
Knee sales grew 6.6% (7.7% constant currency) worldwide, with U.S.
growth of 8.4%
-
S.E.T. sales increased 5.3% (6.5% constant currency) worldwide and
grew 6.2% in the U.S.
-
Acquisition of Lanx, Inc. closed on October 31, 2013, as previously
announced
-
Commercial launch of G7™ Acetabular System began during the second
quarter of fiscal year 2014
Consolidated net sales of $825.7 million increased 4.5% in the quarter,
compared to net sales of $790.1 million during the second quarter of
fiscal year 2013. Excluding the effect of foreign currency, consolidated
net sales increased 5.4% during the second quarter. U.S. net sales
increased 4.7% during the second quarter to $493.1 million, while Europe
net sales increased 9.3% (5.8% constant currency) to $211.8 million and
International (primarily Canada, South America, Mexico and the Pacific
Rim) net sales decreased 3.7% (increased 7.1% constant currency) to
$120.8 million. On a consolidated basis we had the same number of
selling days during the second quarter of fiscal year 2014, compared to
the prior year quarter.
Special items (pre-tax) totaled $155.7 million during the second quarter
of fiscal year 2014, compared to $222.1 million during the second
quarter of fiscal year 2013.
Reported operating income was $113.6 million during the second quarter
of fiscal year 2014, compared to operating income of $143.2 million
during the second quarter of fiscal year 2013. Excluding special items,
adjusted operating income totaled $241.3 million during the second
quarter of fiscal year 2014, compared to $240.0 million during the prior
year period.
Reported net income in the quarter was $4.9 million, compared to a net
loss of $66.2 million during the second quarter of the prior year.
Excluding special items, adjusted net income totaled $126.8 million
during the second quarter of fiscal year 2014, compared to $103.7
million for the second quarter of fiscal year 2013.
Excluding special items, adjusted earnings before interest, taxes,
depreciation and amortization ("EBITDA") during the second quarter of
fiscal year 2014 totaled $293.8 million compared to $288.2 million for
the second quarter of fiscal year 2013.
Reported interest expense totaled $105.7 million during the second
quarter of fiscal year 2014, compared to $104.9 million at the end of
the second quarter of fiscal year 2013. Excluding special items,
adjusted interest expense totaled $83.9 million during the second
quarter of fiscal year 2014, compared to $104.9 million for the second
quarter of fiscal year 2013.
Reported cash flow from operations totaled $120.1 million during the
second quarter of fiscal year 2014, compared to reported cash flow from
operations of $43.1 million for the second quarter of fiscal year 2013.
Free cash flow (operating cash flow minus capital expenditures) was
$68.1 million, which reflected $85.3 million of cash interest paid in
the quarter, compared to a use of cash of $10.7 million during the
second quarter of fiscal year 2013, reflecting $155.5 million of cash
interest paid. Unlevered free cash flow (free cash flow plus cash paid
for interest) was $153.4 million during the second quarter of fiscal
year 2014, compared to $144.8 million for the second quarter of fiscal
year 2013.
At November 30, 2013, reported gross debt was $5,896.8 million, and cash
and cash equivalents, as defined in the Company's Amended and Restated
Credit Agreement dated August 2, 2012, totaled $176.2 million, resulting
in net debt of $5,720.6 million, compared to $5,610.8 million at May 31,
2013.
Biomet's senior secured leverage ratio as of November 30, 2013 was 2.80
times the last twelve months ("LTM") adjusted EBITDA, as defined by our
credit agreement, compared to 4.01 times at May 31, 2008, the first
fiscal year-end following the Merger. The total (net debt) leverage
ratio was 5.24 times LTM adjusted EBITDA at November 30, 2013, compared
to 6.97 times at May 31, 2008.
Biomet's President and Chief Executive Officer Jeffrey R. Binder
commented, "We were very pleased with our broad and balanced 6% organic
sales growth in the quarter on a constant currency basis, with strong
performance across multiple product segments and geographic
regions. We're also delivering excellent growth in adjusted net income
(ex-specials and amortization), with an increase of 27% to approximately
$208 million through the first half of our fiscal year."
About Biomet Biomet, Inc. and its subsidiaries design,
manufacture and market products used primarily by musculoskeletal
medical specialists in both surgical and non-surgical therapy. Biomet's
product portfolio includes knee and hip reconstructive products; sports
medicine, extremities and trauma products; spine, bone healing and
microfixation products, including spine hardware, spinal stimulation
devices, osteobiologics, and non-invasive bone growth stimulators; as
well as neurosurgical and craniomaxillofacial reconstructive devices,
and thoracic products; dental reconstructive products; and bone cement
products, biologics, and other products. Headquartered in Warsaw,
Indiana, Biomet and its subsidiaries currently distribute products in
approximately 90 countries.
Financial Schedule Presentation The Company's unaudited
condensed consolidated financial statements as of and for the three and
six months ended November 30, 2013 and 2012 and other financial data
included in this press release have been prepared in a manner that
complies, in all material respects, with generally accepted accounting
principles in the United States (except with respect to certain non-GAAP
financial measures discussed below), and reflects purchase accounting
adjustments related to the Merger referenced below and acquisitions.
Forward-Looking Statements This press release contains
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934, as amended. Those statements are often indicated by the use of
words such as "will," "intend," "anticipate," "estimate," "expect,"
"plan" and similar expressions. Forward-looking statements involve
certain risks and uncertainties. Actual results may differ materially
from those contemplated by the forward looking statements due to, among
others, the following factors: the success of the Company's principal
product lines; the results of the ongoing investigation by the United
States Department of Justice; the ability to successfully implement new
technologies; the Company's ability to sustain sales and earnings
growth; the Company's success in achieving timely approval or clearance
of its products with domestic and foreign regulatory entities; the
impact to the business as a result of compliance with federal, state and
foreign governmental regulations and with the Deferred Prosecution
Agreement; the impact to the business as a result of the economic
downturn in both foreign and domestic markets; the impact of federal
health care reform; the impact of anticipated changes in the
musculoskeletal industry and the ability of the Company to react to and
capitalize on those changes; the ability of the Company to successfully
implement its desired organizational changes and cost-saving
initiatives; the ability of the Company to successfully integrate the
Trauma Acquisition and Lanx Acquisition; the impact to the business as a
result of the Company's significant international operations, including,
among others, with respect to foreign currency fluctuations and the
success of the Company's transition of certain manufacturing operations
to China; the impact of the Company's managerial changes; the ability of
the Company's customers to receive adequate levels of reimbursement from
third-party payors; the Company's ability to maintain its existing
intellectual property rights and obtain future intellectual property
rights; the impact to the business as a result of cost containment
efforts of group purchasing organizations; the Company's ability to
retain existing independent sales agents for its products; the impact of
product liability litigation losses; and other factors set forth in the
Company's filings with the SEC, including the Company's most recent
annual report on Form 10-K and quarterly reports on Form 10-Q. Although
the Company believes that the assumptions on which the forward-looking
statements contained herein are based are reasonable, any of those
assumptions could prove to be inaccurate given the inherent
uncertainties as to the occurrence or non-occurrence of future events.
There can be no assurance as to the accuracy of forward-looking
statements contained in this press release. The inclusion of a
forward-looking statement herein should not be regarded as a
representation by the Company that the Company's objectives will be
achieved. The Company undertakes no obligation to update publicly or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. Accordingly, the reader is
cautioned not to place undue reliance on forward-looking statements
which speak only as of the date on which they were made.
*Non-GAAP Financial Measures: Management uses non-GAAP
financial measures, such as consolidated net sales and Spine, Bone
Healing and Microfixation net sales excluding the impact of the Bracing
Divestiture, certain Spine Royalties, and the Lanx Acquisition, net
sales excluding foreign currency (constant currency), operating income
as adjusted, Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) as adjusted, net income as adjusted, gross profit
as adjusted, selling, general and administrative expense as adjusted,
research and development expense as adjusted, interest expense as
adjusted, other (income) expense as adjusted, provision (benefit) for
income taxes as adjusted, cash and cash equivalents (as defined by our
credit agreement), net debt, senior secured leverage ratio, total
leverage ratio, free cash flow, and unlevered free cash flow.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP measures are included elsewhere in the press
release.
The term "adjusted" or "as adjusted," a non-GAAP financial measure,
refers to financial performance measures that exclude certain income
statement line items, such as interest, taxes, depreciation or
amortization, other (income) expense, and/or exclude certain expenses as
defined by our credit agreement, such as restructuring charges, non-cash
impairment charges, integration and facilities opening costs or other
business optimization expenses, new systems design and implementation
costs, certain start-up costs and costs related to consolidation of
facilities, loss on extinguishment of debt, certain non-cash charges,
advisory fees paid to the Company's private equity owners, certain
severance charges, acquisition cost, purchase accounting costs, certain
non-income based taxes, stock-based compensation, medical device taxes,
litigation costs, loss on swap liability and other related charges.
These non-GAAP financial measures are not in accordance with, or an
alternative for, GAAP in the United States. Biomet management believes
that these non-GAAP financial measures provide useful information to
investors; however, this additional non-GAAP financial information is
not meant to be considered in isolation or as a substitute for financial
information prepared in accordance with GAAP.
Non-GAAP Reconciliation A reconciliation of reported results
to adjusted results is included in this press release, which is also
posted on Biomet's website: www.biomet.com
Reclassifications Certain prior period amounts have been
reclassified to conform to the current presentation. The current
presentation aligns with how the Company presently reports sales and
markets its products.
The Merger Biomet, Inc. finalized the merger with LVB
Acquisition Merger Sub, Inc., a wholly-owned subsidiary of LVB
Acquisition, Inc., which we refer to in this press release as the
"Merger", on September 25, 2007. LVB Acquisition, Inc. is indirectly
owned by investment partnerships directly or indirectly advised or
managed by The Blackstone Group, Goldman Sachs & Co., Kohlberg Kravis
Roberts & Co. and TPG Global.
Trauma Acquisition On May 24, 2012, DePuy Orthopaedics, Inc.
accepted the Company's binding offer to purchase certain assets
representing substantially all of DePuy's worldwide trauma business
("Trauma Acquisition"), which involves researching, developing,
manufacturing, marketing, distributing and selling products to treat
certain bone fractures or deformities in the human body, including
certain intellectual property assets, and to assume certain liabilities,
for approximately $280.0 million in cash. On June 15, 2012, the Company
announced the initial closing of the transaction. During the first and
second quarters of fiscal year 2013 subsequent closings in various
foreign countries occurred on a staggered basis, with the final closing
occurring on December 7, 2012. The Company acquired the DePuy worldwide
trauma business to strengthen its trauma business and to continue to
build a stronger presence in the global trauma market.
Bracing Divestiture On February 28, 2013, the Company
divested certain assets representing substantially all of the Company's
bracing business ("Bracing Divestiture").
Spine Royalties The Company is currently receiving royalty
income related to a license agreement for certain Spine products ("Spine
Royalties").
Lanx Acquisition On October 5, 2013, the Company and its
wholly-owned subsidiaries EBI Holdings, LLC, a Delaware limited
liability company ("EBI"), and LNX Acquisition, Inc., a Delaware
corporation ("Merger Sub"), entered into an Agreement and Plan of Merger
(the "Merger Agreement") with Lanx, Inc., a Delaware corporation
("Lanx"). On October 31, 2013, Merger Sub merged with and into Lanx and
the separate corporate existence of Merger Sub ceased (the
"Merger"). Upon the consummation of the Merger, Lanx became a
wholly-owned subsidiary of EBI and the Company. As of November 1, 2013
the activities of Lanx were included in the Company's consolidated
results. The aggregate purchase price for the acquisition was
approximately $150.8 million on a debt-free basis.
Rounding Amounts may not recalculate due to rounding.
|
|
Biomet, Inc.
Product Net Sales
Three Months Ended November 30, 2013 and 2012
(in millions, except percentages, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30, 2013
|
|
Three Months Ended November 30, 2012
|
|
Reported Growth %
|
|
Constant Currency* Growth %
|
|
United States Growth %
|
Knees
|
|
|
|
|
$
|
264.0
|
|
|
$
|
247.6
|
|
|
6.6
|
%
|
|
7.7
|
%
|
|
8.4
|
%
|
Hips
|
|
|
|
|
167.7
|
|
|
164.1
|
|
|
2.3
|
%
|
|
3.9
|
%
|
|
3.3
|
%
|
Sports, Extremities, Trauma (S.E.T.)
|
|
|
|
|
160.3
|
|
|
152.2
|
|
|
5.3
|
%
|
|
6.5
|
%
|
|
6.2
|
%
|
Spine, Bone Healing & Microfixation
|
|
|
|
|
104.9
|
|
|
102.6
|
|
|
2.3
|
%
|
|
2.2
|
%
|
|
(1.7
|
)%
|
Dental
|
|
|
|
|
70.5
|
|
|
67.1
|
|
|
4.9
|
%
|
|
4.7
|
%
|
|
10.2
|
%
|
Cement, Biologics & Other
|
|
|
|
|
58.3
|
|
|
56.5
|
|
|
3.1
|
%
|
|
2.7
|
%
|
|
(2.4
|
)%
|
Net Sales
|
|
|
|
|
$
|
825.7
|
|
|
$
|
790.1
|
|
|
4.5
|
%
|
|
5.4
|
%
|
|
4.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales, excluding Bracing Divestiture, Spine Royalties and Lanx
Acquisition ("Organic Sales")*
|
|
|
|
|
$
|
818.3
|
|
|
$
|
780.1
|
|
|
4.9
|
%
|
|
5.8
|
%
|
|
5.6
|
%
|
Spine, Bone Healing & Microfixation, excluding Bracing
Divestiture, Spine Royalties and Lanx Acquisition*
|
|
|
|
|
$
|
97.6
|
|
|
$
|
92.6
|
|
|
5.4
|
%
|
|
5.3
|
%
|
|
2.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30, 2013 Net Sales Growth As
Reported
|
|
Currency Impact*
|
|
Three Months Ended November 30, 2013 Net Sales Growth in Local
Currencies*
|
Knees
|
|
|
|
|
6.6
|
%
|
|
1.1
|
%
|
|
7.7
|
%
|
Hips
|
|
|
|
|
2.3
|
%
|
|
1.6
|
%
|
|
3.9
|
%
|
Sports, Extremities, Trauma (S.E.T.)
|
|
|
|
|
5.3
|
%
|
|
1.2
|
%
|
|
6.5
|
%
|
Spine, Bone Healing & Microfixation
|
|
|
|
|
2.3
|
%
|
|
(0.1
|
)%
|
|
2.2
|
%
|
Dental
|
|
|
|
|
4.9
|
%
|
|
(0.2
|
)%
|
|
4.7
|
%
|
Cement, Biologics & Other
|
|
|
|
|
3.1
|
%
|
|
(0.4
|
)%
|
|
2.7
|
%
|
Net Sales
|
|
|
|
|
4.5
|
%
|
|
0.9
|
%
|
|
5.4
|
%
|
|
|
|
|
|
|
|
|
|
|
Net Sales, excluding Bracing Divestiture, Spine Royalties and Lanx
Acquisition ("Organic Sales")*
|
|
|
|
|
4.9
|
%
|
|
0.9
|
%
|
|
5.8
|
%
|
Spine, Bone Healing & Microfixation, excluding Bracing Divestiture,
Spine Royalties and Lanx Acquisition*
|
|
|
|
|
5.4
|
%
|
|
(0.1
|
)%
|
|
5.3
|
%
|
|
|
|
*
|
|
See Non-GAAP Financial Measures Disclosure
|
|
|
|
|
|
Biomet, Inc.
Product Net Sales
Six Months Ended November 30, 2013 and 2012
(in millions, except percentages, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended November 30, 2013
|
|
Six Months Ended November 30, 2012
|
|
Reported Growth %
|
|
Constant Currency* Growth %
|
|
United States Growth %
|
Knees
|
|
|
|
|
$
|
489.1
|
|
|
$
|
465.1
|
|
|
5.1
|
%
|
|
6.3
|
%
|
|
6.7
|
%
|
Hips
|
|
|
|
|
317.4
|
|
|
311.0
|
|
|
2.1
|
%
|
|
3.8
|
%
|
|
3.1
|
%
|
Sports, Extremities, Trauma (S.E.T.)
|
|
|
|
|
309.8
|
|
|
279.5
|
|
|
10.8
|
%
|
|
12.1
|
%
|
|
11.8
|
%
|
Spine, Bone Healing & Microfixation
|
|
|
|
|
206.5
|
|
|
211.4
|
|
|
(2.3
|
)%
|
|
(2.4
|
)%
|
|
(5.5
|
)%
|
Dental
|
|
|
|
|
124.4
|
|
|
124.1
|
|
|
0.2
|
%
|
|
0.2
|
%
|
|
6.7
|
%
|
Cement, Biologics & Other
|
|
|
|
|
109.2
|
|
|
106.4
|
|
|
2.8
|
%
|
|
2.3
|
%
|
|
(1.5
|
)%
|
Net Sales
|
|
|
|
|
$
|
1,556.4
|
|
|
$
|
1,497.5
|
|
|
3.9
|
%
|
|
4.9
|
%
|
|
4.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales, excluding Bracing Divestiture, Spine Royalties and Lanx
Acquisition ("Organic Sales")*
|
|
|
|
|
$
|
1,547.9
|
|
|
$
|
1,475.9
|
|
|
4.9
|
%
|
|
5.8
|
%
|
|
6.0
|
%
|
Spine, Bone Healing & Microfixation, excluding Bracing Divestiture,
Spine Royalties and Lanx Acquisition*
|
|
|
|
|
$
|
198.0
|
|
|
$
|
189.9
|
|
|
4.3
|
%
|
|
4.2
|
%
|
|
3.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended November 30, 2013 Net Sales Growth As
Reported
|
|
Currency Impact*
|
|
Six Months Ended November 30, 2013 Net Sales Growth in Local
Currencies*
|
Knees
|
|
|
|
|
5.1
|
%
|
|
1.2
|
%
|
|
6.3
|
%
|
Hips
|
|
|
|
|
2.1
|
%
|
|
1.7
|
%
|
|
3.8
|
%
|
Sports, Extremities, Trauma (S.E.T.)
|
|
|
|
|
10.8
|
%
|
|
1.3
|
%
|
|
12.1
|
%
|
Spine, Bone Healing & Microfixation
|
|
|
|
|
(2.3
|
)%
|
|
(0.1
|
)%
|
|
(2.4
|
)%
|
Dental
|
|
|
|
|
0.2
|
%
|
|
-
|
%
|
|
0.2
|
%
|
Cement, Biologics & Other
|
|
|
|
|
2.8
|
%
|
|
(0.5
|
)%
|
|
2.3
|
%
|
Net Sales
|
|
|
|
|
3.9
|
%
|
|
1.0
|
%
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
Net Sales, excluding Bracing Divestiture, Spine Royalties and Lanx
Acquisition ("Organic Sales")*
|
|
|
|
|
4.9
|
%
|
|
0.9
|
%
|
|
5.8
|
%
|
Spine, Bone Healing & Microfixation, excluding Bracing Divestiture,
Spine Royalties and Lanx Acquisition*
|
|
|
|
|
4.3
|
%
|
|
(0.1
|
)%
|
|
4.2
|
%
|
|
|
|
*
|
|
See Non-GAAP Financial Measures Disclosure
|
|
|
|
|
|
Biomet, Inc.
Geographic Net Sales
Three Months Ended November 30, 2013 and 2012
(in millions, except percentages, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30, 2013
|
|
Three Months Ended November 30, 2012
|
|
Reported Growth %
|
|
Constant Currency* Growth %
|
Geographic Sales:
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
|
$
|
493.1
|
|
|
$
|
470.8
|
|
|
4.7
|
%
|
|
4.7
|
%
|
Europe
|
|
|
|
|
211.8
|
|
|
193.9
|
|
|
9.3
|
%
|
|
5.8
|
%
|
International
|
|
|
|
|
120.8
|
|
|
125.4
|
|
|
(3.7
|
)%
|
|
7.1
|
%
|
Net Sales
|
|
|
|
|
$
|
825.7
|
|
|
$
|
790.1
|
|
|
4.5
|
%
|
|
5.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30, 2013 Net Sales Growth As
Reported
|
|
Currency Impact*
|
|
Three Months Ended November 30, 2013 Net Sales Growth Local
Currencies*
|
United States
|
|
|
|
|
|
|
|
|
4.7
|
%
|
|
-
|
%
|
|
4.7
|
%
|
Europe
|
|
|
|
|
|
|
|
|
9.3
|
%
|
|
(3.5
|
)%
|
|
5.8
|
%
|
International
|
|
|
|
|
|
|
|
|
(3.7
|
)%
|
|
10.8
|
%
|
|
7.1
|
%
|
Total
|
|
|
|
|
|
|
|
|
4.5
|
%
|
|
0.9
|
%
|
|
5.4
|
%
|
|
|
|
*
|
|
See Non-GAAP Financial Measures Disclosure
|
|
|
|
|
|
Biomet, Inc.
Geographic Net Sales
Six Months Ended November 30, 2013 and 2012
(in millions, except percentages, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended November 30, 2013
|
|
Six Months Ended November 30, 2012
|
|
Reported Growth %
|
|
Constant Currency* Growth %
|
Geographic Sales:
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
|
$
|
963.0
|
|
|
$
|
923.0
|
|
|
4.3
|
%
|
|
4.3
|
%
|
Europe
|
|
|
|
|
363.3
|
|
|
336.8
|
|
|
7.9
|
%
|
|
4.2
|
%
|
International
|
|
|
|
|
230.1
|
|
|
237.7
|
|
|
(3.2
|
)%
|
|
7.9
|
%
|
Net Sales
|
|
|
|
|
$
|
1,556.4
|
|
|
$
|
1,497.5
|
|
|
3.9
|
%
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended November 30, 2013 Net Sales Growth As
Reported
|
|
Currency Impact*
|
|
Six Months Ended November 30, 2013 Net Sales Growth Local
Currencies*
|
United States
|
|
|
|
|
|
|
|
|
4.3
|
%
|
|
-
|
%
|
|
4.3
|
%
|
Europe
|
|
|
|
|
|
|
|
|
7.9
|
%
|
|
(3.7
|
)%
|
|
4.2
|
%
|
International
|
|
|
|
|
|
|
|
|
(3.2
|
)%
|
|
11.1
|
%
|
|
7.9
|
%
|
Total
|
|
|
|
|
|
|
|
|
3.9
|
%
|
|
1.0
|
%
|
|
4.9
|
%
|
|
|
|
*
|
|
See Non-GAAP Financial Measures Disclosure
|
|
|
|
|
|
Biomet, Inc.
Reconciliation of Reported Consolidated Statements of Operations
to Consolidated Statements of Operations, as adjusted*
Three and Six Months Ended November 30, 2013 and 2012
(in millions, except percentages, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30, 2013
|
|
|
Three Months Ended November 30, 2012
|
|
|
|
|
|
Reported
|
|
Special Items*
|
|
As Adjusted*
|
|
|
Reported
|
|
Special Items*
|
|
As Adjusted*
|
Net sales
|
|
|
|
|
$
|
825.7
|
|
|
$
|
-
|
|
|
$
|
825.7
|
|
|
|
$
|
790.1
|
|
|
$
|
-
|
|
|
$
|
790.1
|
|
Cost of sales
|
|
|
|
|
285.0
|
|
|
(36.4
|
)
|
|
248.6
|
|
|
|
236.0
|
|
|
(5.1
|
)
|
|
230.9
|
|
Gross profit
|
|
|
|
|
540.7
|
|
|
36.4
|
|
|
577.1
|
|
|
|
554.1
|
|
|
5.1
|
|
|
559.2
|
|
Gross profit percentage
|
|
|
|
|
65.5
|
%
|
|
|
|
69.9
|
%
|
|
|
70.1
|
%
|
|
|
|
70.8
|
%
|
Selling, general and administrative expense
|
|
|
|
|
310.5
|
|
|
(18.7
|
)
|
|
291.8
|
|
|
|
296.8
|
|
|
(16.1
|
)
|
|
280.7
|
|
Research and development expense
|
|
|
|
|
41.4
|
|
|
(0.6
|
)
|
|
40.8
|
|
|
|
36.4
|
|
|
(1.4
|
)
|
|
35.0
|
|
Amortization
|
|
|
|
|
75.2
|
|
|
(72.0
|
)
|
|
3.2
|
|
|
|
77.7
|
|
|
(74.2
|
)
|
|
3.5
|
|
Operating income
|
|
|
|
|
113.6
|
|
|
127.7
|
|
|
241.3
|
|
|
|
143.2
|
|
|
96.8
|
|
|
240.0
|
|
Percentage of Net Sales
|
|
|
|
|
13.8
|
%
|
|
|
|
29.2
|
%
|
|
|
18.1
|
%
|
|
|
|
30.4
|
%
|
Interest expense
|
|
|
|
|
105.7
|
|
|
(21.8
|
)
|
|
83.9
|
|
|
|
104.9
|
|
|
-
|
|
|
104.9
|
|
Other (income) expense
|
|
|
|
|
3.7
|
|
|
(6.2
|
)
|
|
(2.5
|
)
|
|
|
124.0
|
|
|
(125.3
|
)
|
|
(1.3
|
)
|
Income (loss) before income taxes
|
|
|
|
|
4.2
|
|
|
155.7
|
|
|
159.9
|
|
|
|
(85.7
|
)
|
|
222.1
|
|
|
136.4
|
|
Provision (benefit) for income taxes
|
|
|
|
|
(0.7
|
)
|
|
33.8
|
|
|
33.1
|
|
|
|
(19.5
|
)
|
|
52.2
|
|
|
32.7
|
|
Tax rate
|
|
|
|
|
|
|
|
|
20.7
|
%
|
|
|
|
|
|
|
24.0
|
%
|
Net income (loss)
|
|
|
|
|
$
|
4.9
|
|
|
$
|
121.9
|
|
|
$
|
126.8
|
|
|
|
$
|
(66.2
|
)
|
|
$
|
169.9
|
|
|
$
|
103.7
|
|
Percentage of Net Sales
|
|
|
|
|
0.6
|
%
|
|
|
|
15.4
|
%
|
|
|
(8.4
|
)%
|
|
|
|
13.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended November 30, 2013
|
|
|
Six Months Ended November 30, 2012
|
|
|
|
|
|
Reported
|
|
Special Items*
|
|
As Adjusted*
|
|
|
Reported
|
|
Special Items*
|
|
As Adjusted*
|
Net sales
|
|
|
|
|
$
|
1,556.4
|
|
|
$
|
-
|
|
|
$
|
1,556.4
|
|
|
|
$
|
1,497.5
|
|
|
$
|
-
|
|
|
$
|
1,497.5
|
|
Cost of sales
|
|
|
|
|
522.2
|
|
|
(51.5
|
)
|
|
470.7
|
|
|
|
464.1
|
|
|
(23.0
|
)
|
|
441.1
|
|
Gross profit
|
|
|
|
|
1,034.2
|
|
|
51.5
|
|
|
1,085.7
|
|
|
|
1,033.4
|
|
|
23.0
|
|
|
1,056.4
|
|
Gross profit percentage
|
|
|
|
|
66.4
|
%
|
|
|
|
69.8
|
%
|
|
|
69.0
|
%
|
|
|
|
70.5
|
%
|
Selling, general and administrative expense
|
|
|
|
|
594.6
|
|
|
(30.3
|
)
|
|
564.3
|
|
|
|
592.9
|
|
|
(43.3
|
)
|
|
549.6
|
|
Research and development expense
|
|
|
|
|
78.9
|
|
|
(1.3
|
)
|
|
77.6
|
|
|
|
72.2
|
|
|
(4.3
|
)
|
|
67.9
|
|
Amortization
|
|
|
|
|
150.7
|
|
|
(144.3
|
)
|
|
6.4
|
|
|
|
156.1
|
|
|
(148.9
|
)
|
|
7.2
|
|
Operating income
|
|
|
|
|
210.0
|
|
|
227.4
|
|
|
437.4
|
|
|
|
212.2
|
|
|
219.5
|
|
|
431.7
|
|
Percentage of Net Sales
|
|
|
|
|
13.5
|
%
|
|
|
|
28.1
|
%
|
|
|
14.2
|
%
|
|
|
|
28.8
|
%
|
Interest expense
|
|
|
|
|
193.3
|
|
|
(21.8
|
)
|
|
171.5
|
|
|
|
222.0
|
|
|
-
|
|
|
222.0
|
|
Other (income) expense
|
|
|
|
|
5.9
|
|
|
(6.2
|
)
|
|
(0.3
|
)
|
|
|
161.5
|
|
|
(167.7
|
)
|
|
(6.2
|
)
|
Income (loss) before income taxes
|
|
|
|
|
10.8
|
|
|
255.4
|
|
|
266.2
|
|
|
|
(171.3
|
)
|
|
387.2
|
|
|
215.9
|
|
Provision (benefit) for income taxes
|
|
|
|
|
(25.2
|
)
|
|
83.8
|
|
|
58.6
|
|
|
|
(73.6
|
)
|
|
125.4
|
|
|
51.8
|
|
Tax rate
|
|
|
|
|
|
|
|
|
22.0
|
%
|
|
|
|
|
|
|
24.0
|
%
|
Net income (loss)
|
|
|
|
|
$
|
36.0
|
|
|
$
|
171.6
|
|
|
$
|
207.6
|
|
|
|
$
|
(97.7
|
)
|
|
$
|
261.8
|
|
|
$
|
164.1
|
|
Percentage of Net Sales
|
|
|
|
|
2.3
|
%
|
|
|
|
13.3
|
%
|
|
|
(6.5
|
)%
|
|
|
|
11.0
|
%
|
|
|
|
*
|
|
See Non-GAAP Financial Measures Disclosure
|
|
|
|
|
|
Biomet, Inc.
Other Financial Information
Reconciliation of Operating Income, as reported, to EBITDA, as
adjusted*
(in millions, except percentages, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30, 2013
|
|
Three Months Ended November 30, 2012
|
|
Six Months Ended November 30, 2013
|
|
Six Months Ended November 30, 2012
|
Operating income (loss), as reported
|
|
|
|
|
$
|
113.6
|
|
|
$
|
143.2
|
|
|
$
|
210.0
|
|
|
$
|
212.2
|
|
Special items from operations*
|
|
|
|
|
127.7
|
|
|
96.8
|
|
|
227.4
|
|
|
219.5
|
|
Depreciation and amortization from operations
|
|
|
|
|
52.5
|
|
|
48.2
|
|
|
$
|
102.7
|
|
|
94.3
|
|
EBITDA, as adjusted*
|
|
|
|
|
$
|
293.8
|
|
|
$
|
288.2
|
|
|
$
|
540.1
|
|
|
$
|
526.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
|
|
$
|
825.7
|
|
|
$
|
790.1
|
|
|
$
|
1,556.4
|
|
|
$
|
1,497.5
|
|
EBITDA, as adjusted, as percentage of Net Sales*
|
|
|
|
|
35.6
|
%
|
|
36.5
|
%
|
|
34.7
|
%
|
|
35.1
|
%
|
|
|
|
*
|
|
See Non-GAAP Financial Measures Disclosure
|
|
|
|
|
|
Biomet, Inc.
Other Financial Information
Special Items detail*
(in millions, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30, 2013
|
|
Three Months Ended November 30, 2012
|
|
Six Months Ended November 30, 2013
|
|
Six Months Ended November 30, 2012
|
Purchase accounting amortization and depreciation
|
|
|
|
|
$
|
73.6
|
|
|
$
|
74.1
|
|
|
$
|
144.4
|
|
|
$
|
148.7
|
Stock-based compensation expense
|
|
|
|
|
4.5
|
|
|
7.4
|
|
|
9.2
|
|
|
26.5
|
Litigation settlements and reserves and other legal fees
|
|
|
|
|
23.5
|
|
|
4.8
|
|
|
29.5
|
|
|
9.4
|
Acquisition costs
|
|
|
|
|
4.1
|
|
|
2.3
|
|
|
4.1
|
|
|
9.2
|
Operational restructuring and consulting expenses related to
operational initiatives (severance, building impairments, abnormal
manufacturing variances and other related costs) and other
|
|
|
|
|
12.6
|
|
|
5.4
|
|
|
23.4
|
|
|
12.2
|
Product rationalization charges
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
8.1
|
Medical device tax
|
|
|
|
|
6.4
|
|
|
-
|
|
|
11.4
|
|
|
-
|
Sponsor fee
|
|
|
|
|
3.0
|
|
|
2.8
|
|
|
5.4
|
|
|
5.4
|
Loss on swap liability
|
|
|
|
|
21.8
|
|
|
-
|
|
|
21.8
|
|
|
-
|
Loss on extinguishment of debt
|
|
|
|
|
6.6
|
|
|
125.3
|
|
|
6.6
|
|
|
167.7
|
Other
|
|
|
|
|
(0.4
|
)
|
|
-
|
|
|
(0.4
|
)
|
|
-
|
Special items, pre-tax*
|
|
|
|
|
$
|
155.7
|
|
|
$
|
222.1
|
|
|
$
|
255.4
|
|
|
$
|
387.2
|
Tax effect
|
|
|
|
|
33.8
|
|
|
52.2
|
|
|
83.8
|
|
|
125.4
|
Special items, after tax*
|
|
|
|
|
$
|
121.9
|
|
|
$
|
169.9
|
|
|
$
|
171.6
|
|
|
$
|
261.8
|
|
|
|
*
|
|
See Non-GAAP Financial Measures Disclosure
|
|
|
|
|
|
Biomet, Inc.
Condensed Consolidated Balance Sheets
(in millions, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Preliminary)
November 30, 2013
|
|
May 31, 2013
|
Assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
176.2
|
|
|
$
|
355.6
|
Accounts receivable, net
|
|
|
|
|
592.6
|
|
|
531.8
|
Inventories
|
|
|
|
|
701.3
|
|
|
624.0
|
Current deferred income taxes
|
|
|
|
|
121.7
|
|
|
119.9
|
Prepaid expenses and other
|
|
|
|
|
128.8
|
|
|
141.3
|
Property, plant and equipment, net
|
|
|
|
|
692.7
|
|
|
665.2
|
Intangible assets, net
|
|
|
|
|
3,547.7
|
|
|
3,630.2
|
Goodwill
|
|
|
|
|
3,652.8
|
|
|
3,600.9
|
Other assets
|
|
|
|
|
123.6
|
|
|
125.8
|
Total Assets
|
|
|
|
|
$
|
9,737.4
|
|
|
$
|
9,794.7
|
Liabilities and Shareholder's Equity
|
|
|
|
|
|
|
|
Current liabilities, excluding debt
|
|
|
|
|
$
|
527.1
|
|
|
$
|
523.8
|
Current portion of long-term debt
|
|
|
|
|
34.2
|
|
|
40.3
|
Long-term debt, net of current portion
|
|
|
|
|
5,862.6
|
|
|
5,926.1
|
Deferred income taxes, long-term
|
|
|
|
|
1,053.2
|
|
|
1,129.8
|
Other long-term liabilities
|
|
|
|
|
191.5
|
|
|
206.1
|
Shareholder's equity
|
|
|
|
|
2,068.8
|
|
|
1,968.6
|
Total Liabilities and Shareholder's Equity
|
|
|
|
|
$
|
9,737.4
|
|
|
$
|
9,794.7
|
Net Debt (a)*
|
|
|
|
|
$
|
5,720.6
|
|
|
$
|
5,610.8
|
|
|
|
|
|
|
|
(a)
|
|
Net debt is the sum of total debt less cash and cash equivalents,
as defined by the credit agreement.
|
|
|
|
|
|
*
|
|
|
|
See Non-GAAP Financial Measures Disclosure
|
|
|
|
|
|
|
|
Biomet, Inc.
Other Financial Information
Reconciliation of Senior Secured Leverage Ratio and Total Leverage
Ratio*
(in millions, except ratios, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November 30, 2013
|
|
|
|
|
|
May 31, 2008
|
|
|
|
Senior Secured Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD Term Loan
|
|
|
|
|
$
|
3,078.3
|
|
|
|
|
|
|
$
|
2,328.3
|
|
|
|
|
EUR Term Loan
|
|
|
|
|
-
|
|
|
|
|
|
|
1,355.2
|
|
|
|
|
Asset Based Revolver
|
|
|
|
|
155.0
|
|
|
|
|
|
|
-
|
|
|
|
|
Cash Flow Revolvers
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
Consolidated Senior Secured Debt
|
|
|
|
|
3,233.3
|
|
|
|
A
|
|
|
3,683.5
|
|
|
|
E
|
Senior Notes
|
|
|
|
|
2,660.2
|
|
|
|
|
|
|
2,570.7
|
|
|
|
|
China Facility
|
|
|
|
|
3.3
|
|
|
|
|
|
|
-
|
|
|
|
|
European Facilities
|
|
|
|
|
-
|
|
|
|
|
|
|
46.6
|
|
|
|
|
Consolidated Total Debt
|
|
|
|
|
5,896.8
|
|
|
|
|
|
|
6,300.8
|
|
|
|
|
Cash and Cash Equivalents*, **
|
|
|
|
|
(176.2
|
)
|
|
|
B
|
|
|
(127.6
|
)
|
|
|
F
|
Net Debt*
|
|
|
|
|
$
|
5,720.6
|
|
|
|
C
|
|
|
$
|
6,173.2
|
|
|
|
G
|
LTM Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter 3 Fiscal 2013 Adjusted EBITDA
|
|
|
|
|
275.4
|
|
|
|
|
|
|
|
|
|
|
Quarter 4 Fiscal 2013 Adjusted EBITDA
|
|
|
|
|
275.9
|
|
|
|
|
|
|
|
|
|
|
Quarter 1 Fiscal 2014 Adjusted EBITDA
|
|
|
|
|
246.3
|
|
|
|
|
|
|
|
|
|
|
Quarter 2 Fiscal 2014 Adjusted EBITDA
|
|
|
|
|
293.8
|
|
|
|
|
|
|
|
|
|
|
"Run Rate" Cost Savings**
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Quarter 2 2014 LTM Adjusted EBITDA*
|
|
|
|
|
$
|
1,091.4
|
|
|
|
D
|
|
|
|
|
|
|
Fiscal 2008 LTM Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
829.1
|
|
|
|
|
"Run Rate" Cost Savings**
|
|
|
|
|
|
|
|
|
|
|
57.0
|
|
|
|
|
Fiscal 2008 LTM Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
|
|
$
|
886.1
|
|
|
|
H
|
Senior Secured Leverage Ratio*
|
|
|
|
|
2.80
|
|
|
|
A+B / D
|
|
|
4.01
|
|
|
|
E+F / H
|
Total Leverage Ratio*
|
|
|
|
|
5.24
|
|
|
|
C / D
|
|
|
6.97
|
|
|
|
G / H
|
|
|
|
*
|
|
See Non-GAAP Financial Measures Disclosure
|
|
|
|
**
|
|
As defined by the Amended and Restated Credit Agreement dated August
2, 2012
|
|
|
|
|
|
Biomet, Inc.
Consolidated Statement of Cash Flows and GAAP Operating Cash Flow
Reconciled to Free Cash Flow*
& Unlevered Free Cash Flow*
(in millions, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Preliminary) Three Months Ended November 30, 2013
|
|
Three Months Ended November 30, 2012
|
|
(Preliminary) Six Months Ended November 30, 2013
|
|
Six Months Ended November 30, 2012
|
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
$
|
4.9
|
|
|
$
|
(66.2
|
)
|
|
$
|
36.0
|
|
|
$
|
(97.7
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
-
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
122.1
|
|
|
121.5
|
|
|
242.5
|
|
|
242.1
|
|
Amortization and write off of deferred financing costs
|
|
|
|
|
10.8
|
|
|
13.0
|
|
|
14.4
|
|
|
20.0
|
|
Stock-based compensation expense
|
|
|
|
|
4.4
|
|
|
7.4
|
|
|
8.6
|
|
|
26.5
|
|
Loss on extinguishment of debt
|
|
|
|
|
-
|
|
|
117.2
|
|
|
-
|
|
|
155.2
|
|
Provision for doubtful accounts receivable
|
|
|
|
|
1.0
|
|
|
(0.4
|
)
|
|
1.1
|
|
|
0.9
|
|
Deferred income taxes
|
|
|
|
|
(42.1
|
)
|
|
(36.6
|
)
|
|
(103.1
|
)
|
|
(105.5
|
)
|
Other
|
|
|
|
|
(3.4
|
)
|
|
(2.4
|
)
|
|
(7.3
|
)
|
|
(3.7
|
)
|
Changes in operating assets and liabilities, net of acquired assets:
|
|
|
|
|
-
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(47.3
|
)
|
|
(62.8
|
)
|
|
(39.3
|
)
|
|
(57.0
|
)
|
Inventories
|
|
|
|
|
(20.5
|
)
|
|
(13.4
|
)
|
|
(28.0
|
)
|
|
(34.6
|
)
|
Prepaid expenses
|
|
|
|
|
7.7
|
|
|
0.6
|
|
|
10.0
|
|
|
(3.6
|
)
|
Accounts payable
|
|
|
|
|
(1.4
|
)
|
|
(5.7
|
)
|
|
(21.0
|
)
|
|
(13.8
|
)
|
Income taxes
|
|
|
|
|
(6.3
|
)
|
|
(2.9
|
)
|
|
10.7
|
|
|
(7.1
|
)
|
Accrued interest
|
|
|
|
|
17.5
|
|
|
(53.2
|
)
|
|
1.3
|
|
|
(1.3
|
)
|
Accrued expenses and other
|
|
|
|
|
72.7
|
|
|
27.0
|
|
|
45.0
|
|
|
8.2
|
|
Net cash provided by operating activities
|
|
|
|
|
120.1
|
|
|
43.1
|
|
|
170.9
|
|
|
128.6
|
|
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sales/maturities of investments
|
|
|
|
|
9.5
|
|
|
-
|
|
|
19.0
|
|
|
-
|
|
Purchases of investments
|
|
|
|
|
(10.1
|
)
|
|
(6.4
|
)
|
|
(19.6
|
)
|
|
(6.4
|
)
|
Proceeds from sale of assets
|
|
|
|
|
(0.1
|
)
|
|
-
|
|
|
0.1
|
|
|
-
|
|
Capital expenditures
|
|
|
|
|
(52.0
|
)
|
|
(53.8
|
)
|
|
(98.5
|
)
|
|
(106.9
|
)
|
Acquisitions, net of cash acquired - Trauma Acquisition
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(280.0
|
)
|
Acquisitions, net of cash acquired - Lanx Acquisition
|
|
|
|
|
(148.8
|
)
|
|
-
|
|
|
(148.8
|
)
|
|
-
|
|
Other acquisitions, net of cash acquired
|
|
|
|
|
(0.4
|
)
|
|
(10.1
|
)
|
|
(0.8
|
)
|
|
(16.0
|
)
|
Net cash used in investing activities
|
|
|
|
|
(201.9
|
)
|
|
(70.3
|
)
|
|
(248.6
|
)
|
|
(409.3
|
)
|
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
|
|
|
|
|
Payments under European facilities
|
|
|
|
|
-
|
|
|
(0.3
|
)
|
|
(2.3
|
)
|
|
(0.7
|
)
|
Payments under senior secured credit facilities
|
|
|
|
|
(6.6
|
)
|
|
(8.2
|
)
|
|
(14.9
|
)
|
|
(16.7
|
)
|
Proceeds under revolvers
|
|
|
|
|
157.0
|
|
|
80.0
|
|
|
159.3
|
|
|
80.0
|
|
Payments under revolvers
|
|
|
|
|
(2.0
|
)
|
|
(10.0
|
)
|
|
(7.0
|
)
|
|
(10.0
|
)
|
Proceeds from senior notes due 2020 and term loans
|
|
|
|
|
870.5
|
|
|
1,666.2
|
|
|
870.5
|
|
|
2,666.2
|
|
Tender/retirement of senior notes due 2017 and term loans
|
|
|
|
|
(1,091.6
|
)
|
|
(2,120.5
|
)
|
|
(1,091.6
|
)
|
|
(2,702.2
|
)
|
Payment of fees related to refinancing activities
|
|
|
|
|
(15.3
|
)
|
|
(37.7
|
)
|
|
(15.5
|
)
|
|
(67.8
|
)
|
Equity:
|
|
|
|
|
-
|
|
|
|
|
|
|
|
Repurchase of LVB Acquisition, Inc. shares
|
|
|
|
|
-
|
|
|
(0.1
|
)
|
|
-
|
|
|
(0.1
|
)
|
Option exercise
|
|
|
|
|
-
|
|
|
-
|
|
|
0.3
|
|
|
-
|
|
Net cash used in financing activities
|
|
|
|
|
(88.0
|
)
|
|
(430.6
|
)
|
|
(101.2
|
)
|
|
(51.3
|
)
|
Effect of exchange rate changes on cash
|
|
|
|
|
0.6
|
|
|
6.1
|
|
|
(0.5
|
)
|
|
7.1
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
|
|
(169.2
|
)
|
|
(451.7
|
)
|
|
(179.4
|
)
|
|
(324.9
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
345.4
|
|
|
619.2
|
|
|
355.6
|
|
|
492.4
|
|
Cash and cash equivalents, end of period
|
|
|
|
|
$
|
176.2
|
|
|
$
|
167.5
|
|
|
$
|
176.2
|
|
|
$
|
167.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow*(1)
|
|
|
|
|
$
|
68.1
|
|
|
$
|
(10.7
|
)
|
|
$
|
72.4
|
|
|
$
|
21.7
|
|
Add back: cash paid for interest
|
|
|
|
|
85.3
|
|
|
155.5
|
|
|
186.6
|
|
|
218.0
|
|
Unlevered Free Cash Flow* (2)
|
|
|
|
|
$
|
153.4
|
|
|
$
|
144.8
|
|
|
$
|
259.0
|
|
|
$
|
239.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the period for:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
$
|
85.3
|
|
|
$
|
155.5
|
|
|
$
|
186.6
|
|
|
$
|
218.0
|
|
Income taxes
|
|
|
|
|
$
|
33.0
|
|
|
$
|
13.8
|
|
|
$
|
65.2
|
|
|
$
|
35.8
|
|
|
|
|
|
|
|
|
(1)
|
|
Defined as cash flow from operations less capital expenditures
|
|
|
(2)
|
|
Defined as Free Cash Flow plus cash paid for interest. Commonly
used by companies that are highly leveraged to show how assets
perform before interest payments.
|
|
|
|
|
|
*
|
|
|
|
See Non-GAAP Financial Measures Disclosure
|
|
|
|
|
|
[ Back To TMCnet.com's Homepage ]
|