UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 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): October 25,
2007
CONMED
CORPORATION
(Exact
name of registrant as specified in its charter)
|
New
York
|
0-16093
|
16-0977505
|
|
(State
or other jurisdiction of
|
(Commission
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
File
Number)
|
Identification
No.)
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525
French Road
Utica,
New York 13502
(Address
of principal executive offices, including zip code)
(315)
797-8375
(Registrant's
telephone number, including area code)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligations 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
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
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|
o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
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Section
2
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Financial
Information
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Item
2.02
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Results
of Operations and Financial
Condition.
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On
October 25, 2007, CONMED Corporation issued a press release announcing financial
results for the third quarter of 2007. A copy of this press release
is attached hereto as Exhibit 99.1.
The
information in this Current Report on Form 8-K that is furnished under “Item
2.02. Results of Operations and Financial Condition” and Exhibit 99.1 attached
hereto shall not be deemed “filed” for purposes of Section 18 of the Securities
Act of 1934, nor shall they be deemed incorporated by reference in any filing
under the Securities Act of 1933, except as shall be expressly set forth by
specific reference in such filing.
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Section
9
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Financial
Statements and Exhibits
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Item
9.01
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Financial
Statements and Exhibits.
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(c)
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Exhibits
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The
following exhibit is included herewith:
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Exhibit
No.
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Description
of Exhibit
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99.1
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Press
Release dated October 25, 2007, issued by CONMED
Corporation.
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Signature
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 thereunto
duly authorized.
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CONMED
CORPORATION
|
||
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(Registrant)
|
||
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By:
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Robert
D. Shallish, Jr.
|
|
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Vice
President-Finance and
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||
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Chief
Financial Officer
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||
Date: October
25, 2007
EXHIBIT
INDEX
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Exhibit
|
|
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Number
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Exhibit
Description
|
|
99.1
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Press
Release, dated October 25, 2007, issued by CONMED
Corporation.
|
 |
NEWS
RELEASE
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CONTACT:
|
|
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CONMED
Corporation
|
|
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Robert
Shallish
|
|
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Chief
Financial Officer
|
|
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315-624-3206
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FD
|
|
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Investors: Brian
Ritchie/Theresa
Kelleher
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212-850-5600
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FOR
RELEASE: 7:00 AM (Eastern) October 25,
2007
CONMED
Corporation Announces Third Quarter 2007 Financial Results
-
GAAP EPS Grows 142% to $0.29 –
-
Full Year 2007 Non-GAAP Earnings Guidance Raised To $1.30
-
$1.34
-
Full Year 2008 Earnings Guidance Expectations
Announced
-
Conference Call to be Held at 10:00 a.m. ET Today
-
Utica,
New York, October 25,
2007 ----- CONMED Corporation (Nasdaq: CNMD) today
announced financial
results for the third quarter of 2007.
Net
income, on a GAAP basis, for the third quarter increased 151% to $8.4 million,
or $0.29 per diluted share, compared to third quarter 2006 GAAP net income
of
$3.3 million, or $0.12 per diluted share. For comparative purposes,
the September 2007 GAAP net income increased 33% over the non-GAAP net income
in
the third quarter of 2006 of $6.3 million or $0.22 per diluted
share. The adjusted, non-GAAP figures for the third quarter 2006
exclude acquisition-transition costs, facility closure charges and product
termination costs (see attached reconciliation for additional
information).
Sales
for
the September 30, 2007 quarter increased 6.1% to $164.4 million compared to
$155.0 million in the third quarter of 2006. The Orthopedic product
lines of Arthroscopy and Powered Surgical Instruments had combined sales growth
of 8.1% over the third quarter of 2006. Endosurgery experienced sales
growth of 21.4% for the quarter. The combined sales growth in these
three product lines was 9.8%, comprising 67% of the quarter’s
revenues.
"Our
recently completed third quarter performance confirms that we continue to
achieve our goals for profit improvement. With a sales increase of
6.1% over the third quarter of 2006, we achieved a 33% increase in net income
over the adjusted net income of the third quarter of 2006. Compared
to the GAAP net income of the September 2006 quarter, the progress is even
more
pronounced. Similar to our experience in the first half of
2007, we continued to see solid sales increases from our Arthroscopy, Powered
Instrument and Endosurgery product lines, which represent two-thirds of our
company’s total revenues,” said Joseph J. Corasanti, President and Chief
Executive Officer.
“As
I
have previously mentioned, our strategy remains consistent — increase our
revenue base by providing our customers with innovative, high quality,
cost-effective medical devices while at the same time expanding the Company’s
operating margin by more efficiently leveraging our organizational structure,”
continued Mr. Corasanti.
|
CONMED
News Release Continued
|
Page 2 of
10
|
October
25, 2007
|
For
the
nine months ended September 30, 2007, on a non-GAAP basis, without unusual
items, which include a litigation gain in 2007 and acquisition-related costs
in
2006, adjusted net income was $27.0 million, or $0.94 per diluted share, an
increase of 40% over the $18.8 million, or $0.67 per diluted share reported
in
the 2006 period. GAAP net income grew 167% to $29.6 million, or $1.04
per diluted share, compared to $11.1 million, or $0.39 per diluted share, in
the
nine months of 2006. Please see the attached reconciliation between
GAAP and non-GAAP amounts.
Sales
outside the United States were $65.8 million in the third quarter of 2007,
growing 10.6% overall and 5.2% on a constant currency basis compared to the
third quarter of 2006. International sales in the September 2007
quarter were 40.0% of the Company’s total sales compared to 38.4% of sales in
the third quarter last year. Foreign currency exchange rates were
favorable to the Company in the third quarter 2007 compared to exchange rates
in
effect during the third quarter of 2006. As a result, sales were
higher by $3.2 million than would have been the case had currency rates remained
constant.
CONMED’s
cash flow was strong in the first nine months of 2007 enabling a reduction
in
long term debt of $24.9 million and reduced usage of the receivables
securitization program of $4.0 million. Cash from operations for
year-to-date 2007 was $35.5 million resulting in operating cash flow per share
of $1.24 (a non-GAAP measurement which management believes is useful to
understanding the business).
Following
is a summary of the Company’s sales by product line for the three months ended
September 30, 2007 (in millions):
|
Three
Months Ended September 30,
|
||||||||||||||||
|
Constant
|
||||||||||||||||
|
Currency
|
||||||||||||||||
|
2006
|
2007
|
Growth
|
Growth
|
|||||||||||||
|
(in
millions)
|
||||||||||||||||
|
Arthroscopy
|
$ |
54.8
|
$ |
58.8
|
7.3% | 4.7% | ||||||||||
|
Powered
Surgical Instruments
|
33.2
|
36.3
|
9.3% | 5.8% | ||||||||||||
|
Electrosurgery
|
23.4
|
23.0
|
-1.7% | -2.5% | ||||||||||||
|
Endoscopic
Technologies
|
12.7
|
12.5
|
-1.6% | -2.7% | ||||||||||||
|
Endosurgery
|
12.6
|
15.3
|
21.4% | 19.7% | ||||||||||||
|
Patient
Care
|
18.3
|
18.5
|
1.1% | 0.7% | ||||||||||||
| $ |
155.0
|
$ |
164.4
|
6.1% | 4.0% | |||||||||||
The
Company’s sports medicine Arthroscopy line grew 7.3% over third quarter 2006 on
the continued strength of video imaging sales, including strong market demand
for our High Definition (HD) surgical imaging systems, introduced in
February. The third quarter Arthroscopy growth percentage was
tempered by fewer installations of integrated operating room systems than in
the
third quarter of 2006. The Company expects, however, that the
projected schedule of installations in the fourth quarter of 2007 will cause
an
increase in revenue for these projects when compared to the revenue generated
by
the installations in the fourth quarter of 2006. Powered Surgical
Instruments sales increased 9.3% on continued sales momentum from our MPower®
and MicroPower® platform products introduced in 2006. Endosurgery
increased 21.4% with strong growth domestically and
internationally.
Sales
in
the Electrosurgery, Endoscopic Technologies and Patient Care product lines
experienced flat or slightly declining sales. However, this is a
significant sequential improvement from the second quarter of 2007 when these
three product groups experienced a combined decline of 9.0% compared to the
second quarter of 2006. Management believes that new product introductions
over
the course of the next year will create positive sales momentum in each of
these
business lines.
|
CONMED
News Release Continued
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Page
3 of 10
|
October
25, 2007
|
Following
is a summary of the first nine months of 2007 sales by product line in millions
of dollars:
|
Nine
Months Ended September 30,
|
||||||||||||||||
|
Constant
|
||||||||||||||||
|
Currency
|
||||||||||||||||
|
2006
|
2007
|
Growth
|
Growth
|
|||||||||||||
|
(in
millions)
|
||||||||||||||||
|
Arthroscopy
|
$ |
168.3
|
$ |
185.9
|
10.5% | 8.0% | ||||||||||
|
Powered
Surgical Instruments
|
100.7
|
109.9
|
9.1% | 6.0% | ||||||||||||
|
Electrosurgery
|
71.0
|
69.1
|
-2.7% | -3.3% | ||||||||||||
|
Endoscopic
Technologies
|
42.1
|
39.1
|
-7.1% | -8.4% | ||||||||||||
|
Endosurgery
|
37.8
|
44.4
|
17.5% | 16.1% | ||||||||||||
|
Patient
Care
|
57.1
|
56.3
|
-1.4% | -1.9% | ||||||||||||
| $ |
477.0
|
$ |
504.7
|
5.8% | 3.9% | |||||||||||
Outlook
Mr.
Corasanti noted, “Historically, the fourth quarter of each year has generally
been our strongest quarter. We expect this trend to
continue. As a result, we anticipate sales to be in the range of $177
- $181 million, with fourth quarter diluted earnings per share to
approximate $0.36 - $0.40 and full year 2007 non-GAAP diluted
earnings per share to approximate $1.30 - $1.34. This is an increase
from our previously provided 2007 full year guidance range of $1.27 -
$1.32.”
“Our
outlook for 2008 continues to be positive. We believe we have built
sales momentum during 2007 that will continue into next
year. Further, we believe that maintaining our focus on containing
costs will allow more of each sales dollar to drop to the bottom
line. For the full year of 2008, we anticipate that sales
in constant currency will increase 5-6% over 2007 amounts and that diluted
earnings per share will approximate $1.47 - $1.52,” concluded Mr.
Corasanti.
Conference
Call
The
Company will webcast its third quarter 2007 conference call live over the
Internet on Thursday, October 25, 2007 at 10:00 a.m. Eastern Time.
This broadcast can be accessed from CONMED's web site at www.conmed.com. Replays
of the call will be made available through November 1, 2007.
CONMED
Profile
CONMED
is
a medical technology company with an emphasis on surgical devices and equipment
for minimally invasive procedures and monitoring. The Company’s
products serve the clinical areas of arthroscopy, powered surgical instruments,
electrosurgery, cardiac monitoring disposables, endosurgery and endoscopic
technologies. They are used by surgeons and physicians in a variety
of specialties including orthopedics, general surgery, gynecology, neurosurgery,
and gastroenterology. Headquartered in Utica, New York, the Company’s
3,200 employees distribute its products worldwide from several manufacturing
locations.
|
CONMED
News Release Continued
|
Page
4 of 10
|
October
25, 2007
|
Forward
Looking Information
This
press release contains forward-looking statements based on certain assumptions
and contingencies that involve risks and uncertainties. The
forward-looking statements are made pursuant to the safe harbor provisions
of
the Private Securities Litigation Reform Act of 1995 and relate to the Company’s
performance on a going-forward basis. The forward-looking statements
in this press release involve risks and uncertainties which could cause actual
results, performance or trends, to differ materially from those expressed in
the
forward-looking statements herein or in previous disclosures. The
Company believes that all forward-looking statements made by it have a
reasonable basis, but there can be no assurance that management’s expectations,
beliefs or projections as expressed in the forward-looking statements will
actually occur or prove to be correct. In addition to general
industry and economic conditions, factors that could cause actual results to
differ materially from those discussed in the forward-looking statements in
this
press release include, but are not limited to: (i) the failure of any one or
more of the assumptions stated above, to prove to be correct; (ii) the risks
relating to forward-looking statements discussed in the Company’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2006; (iii) cyclical
purchasing patterns from customers, end-users and dealers; (iv)
timely release of new products, and acceptance of such new products by the
market; (v) the introduction of new products by competitors and other
competitive responses; (vi) the possibility that any new acquisition or other
transaction may require the Company to reconsider its financial assumptions
and
goals/targets; and/or (vii) the Company’s ability to devise and execute
strategies to respond to market conditions.
|
CONMED
News Release Continued
|
Page
5 of 10
|
October
25, 2007
|
CONMED
CORPORATION
CONSOLIDATED
STATEMENTS OF INCOME
(in
thousands except per share amounts)
(unaudited)
|
Three
months ended
|
Nine
months ended
|
|||||||||||||||
|
September
30,
|
September
30,
|
|||||||||||||||
|
2006
|
2007
|
2006
|
2007
|
|||||||||||||
|
Net
sales
|
$ |
154,981
|
$ |
164,448
|
$ |
476,920
|
$ |
504,720
|
||||||||
|
Cost
of sales
|
77,697
|
82,090
|
239,373
|
251,277
|
||||||||||||
|
Cost
of sales, acquisition transition –
|
||||||||||||||||
|
Note
A
|
2,553
|
-
|
7,142
|
-
|
||||||||||||
|
Gross
profit
|
74,731
|
82,358
|
230,405
|
253,443
|
||||||||||||
|
Selling
and administrative
|
56,219
|
57,506
|
172,716
|
175,518
|
||||||||||||
|
Research
and development
|
7,262
|
7,936
|
22,585
|
22,983
|
||||||||||||
|
Other
expense (income) – Note B
|
2,066
|
-
|
4,220
|
(4,102 | ) | |||||||||||
|
65,547
|
65,442
|
199,521
|
194,399
|
|||||||||||||
|
Income
from operations
|
9,184
|
16,916
|
30,884
|
59,044
|
||||||||||||
|
Loss
on early extinguishment of debt
|
-
|
-
|
678
|
-
|
||||||||||||
|
Interest
expense
|
4,962
|
3,861
|
14,503
|
12,706
|
||||||||||||
|
Income
before income taxes
|
4,222
|
13,055
|
15,703
|
46,338
|
||||||||||||
|
Provision
for income taxes
|
890
|
4,700
|
4,617
|
16,716
|
||||||||||||
|
Net
income
|
$ |
3,332
|
$ |
8,355
|
$ |
11,086
|
$ |
29,622
|
||||||||
|
Per
share data:
|
||||||||||||||||
|
Net
Income
|
||||||||||||||||
|
Basic
|
$ |
.12
|
$ |
.29
|
$ |
.40
|
$ |
1.06
|
||||||||
|
Diluted
|
.12
|
.29
|
.39
|
1.04
|
||||||||||||
|
Weighted
average common shares
|
||||||||||||||||
|
Basic
|
27,888
|
28,572
|
27,999
|
27,990
|
||||||||||||
|
Diluted
|
28,134
|
29,101
|
28,241
|
28,580
|
||||||||||||
Note
A– Included in cost of sales in the three and nine months ended September
30, 2006 are approximately $2.6 million and $7.1 million, respectively, in
acquisition-transition related costs.
|
CONMED
News Release Continued
|
Page
6 of 10
|
October
25, 2007
|
Note
B–Included in other expense in the three months ended September 30, 2006
are
the following: $0.4 million in plant closure costs, $1.0 million in
costs related to the termination of a product offering and $0.6 million in
acquisition-related costs. Included in other expense in the nine
months ended September 30, 2006 are the following: $0.4 million in plant closure
costs, $0.6 million in costs related to the write-off of inventory in settlement
of a patent dispute, $1.1 million in costs related to the termination of a
product offering and $2.1 million in acquisition-related costs.
Included
in other expense (income) in the nine months ended September 30, 2007 are $1.8
million in facility closure related costs, $0.2 million in costs related to
the
termination of a product offering and a $6.1 million gain on a legal
settlement.
|
CONMED
News Release Continued
|
Page
7 of 10
|
October
25, 2007
|
CONMED
CORPORATION
CONSOLIDATED
CONDENSED BALANCE SHEETS
(in
thousands)
(unaudited)
ASSETS
|
December
31,
|
September
30,
|
|||||||
|
2006
|
2007
|
|||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ |
3,831
|
$ |
5,411
|
||||
|
Accounts
receivable, net
|
75,120
|
81,765
|
||||||
|
Inventories
|
151,687
|
166,712
|
||||||
|
Deferred
income taxes
|
15,212
|
15,432
|
||||||
|
Other
current assets
|
4,033
|
6,203
|
||||||
|
Total
current assets
|
249,883
|
275,523
|
||||||
|
Property,
plant and equipment, net
|
116,480
|
121,653
|
||||||
|
Goodwill,
net
|
290,512
|
294,659
|
||||||
|
Other
intangible assets, net
|
191,135
|
189,470
|
||||||
|
Other
assets
|
13,561
|
10,767
|
||||||
|
Total
assets
|
$ |
861,571
|
$ |
892,072
|
||||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
|
Current
liabilities:
|
||||||||
|
Current
portion of long-term debt
|
$ |
3,148
|
$ |
3,247
|
||||
|
Other
current liabilities
|
72,057
|
68,230
|
||||||
|
Total
current liabilities
|
75,205
|
71,477
|
||||||
|
Long-term
debt
|
264,676
|
239,647
|
||||||
|
Deferred
income taxes
|
51,004
|
66,399
|
||||||
|
Other
long-term liabilities
|
30,332
|
25,817
|
||||||
|
Total
liabilities
|
421,217
|
403,340
|
||||||
|
Shareholders'
equity:
|
||||||||
|
Capital
accounts
|
201,541
|
219,552
|
||||||
|
Retained
earnings
|
247,425
|
273,049
|
||||||
|
Accumulated
other comprehensive loss
|
(8,612 | ) | (3,869 | ) | ||||
|
Total
equity
|
440,354
|
488,732
|
||||||
|
Total
liabilities and shareholders' equity
|
$ |
861,571
|
$ |
892,072
|
||||
|
CONMED
News Release Continued
|
Page
8 of 10
|
October
25, 2007
|
CONMED
CORPORATION
CONSOLIDATED
CONDENSED STATEMENT OF CASH FLOWS
(in
thousands)
(unaudited)
|
Nine
months ended
|
||||||||
|
September
30,
|
||||||||
|
2006
|
2007
|
|||||||
|
Cash
flows from operating activities:
|
||||||||
|
Net
income
|
$ |
11,086
|
$ |
29,622
|
||||
|
Adjustments
to reconcile net income
|
||||||||
|
to
net cash provided by operating activities:
|
||||||||
|
Depreciation
and amortization
|
22,295
|
23,513
|
||||||
|
Stock-based
payment expense
|
2,599
|
2,932
|
||||||
|
Deferred
income taxes
|
4,670
|
14,869
|
||||||
|
Increase
(decrease) in cash flows from changes in assets and
liabilities:
|
||||||||
|
Sale
of accounts receivable
|
(3,000 | ) | (4,000 | ) | ||||
|
Accounts
receivable
|
3,320
|
(2,424 | ) | |||||
|
Inventories
|
(9,975 | ) | (21,826 | ) | ||||
|
Accounts
payable
|
4,065
|
(5,284 | ) | |||||
|
Income
tax receivable
|
(1,979 | ) | (1,904 | ) | ||||
|
Accrued
compensation and benefits
|
2,148
|
740
|
||||||
|
Other,
net
|
5,568
|
(775 | ) | |||||
|
Net
cash provided by operating activities
|
40,797
|
35,463
|
||||||
|
Cash
flow from investing activities:
|
||||||||
|
Purchases
of property, plant, and equipment, net
|
(16,738 | ) | (15,964 | ) | ||||
|
Payments
related to business acquisitions
|
(2,463 | ) | (5,837 | ) | ||||
|
Proceeds
from sale of equity investment
|
1,205
|
-
|
||||||
|
Net
cash used in investing activities
|
(17,996 | ) | (21,801 | ) | ||||
|
Cash
flow from financing activities:
|
||||||||
|
Payments
on debt
|
(142,045 | ) | (24,930 | ) | ||||
|
Proceeds
of debt
|
135,000
|
-
|
||||||
|
Payments
related to issuance of debt
|
(1,260 | ) |
-
|
|||||
|
Net
proceeds from common stock issued under employee plans
|
2,103
|
11,119
|
||||||
|
Repurchase
of common stock
|
(7,848 | ) |
-
|
|||||
|
Other,
net
|
(502 | ) | (1,770 | ) | ||||
|
Net
cash used in financing activities
|
(14,552 | ) | (15,581 | ) | ||||
|
Effect
of exchange rate change
|
||||||||
|
on
cash and cash equivalents
|
1,789
|
3,499
|
||||||
|
Net
increase in cash and cash equivalents
|
10,038
|
1,580
|
||||||
|
Cash
and cash equivalents at beginning of period
|
3,454
|
3,831
|
||||||
|
Cash
and cash equivalents at end of period
|
$ |
13,492
|
$ |
5,411
|
||||
|
CONMED
News Release Continued
|
Page
9 of 10
|
October
25, 2007
|
CONMED
CORPORATION
RECONCILIATION
OF REPORTED NET INCOME TO NET INCOME
BEFORE
UNUSUAL ITEMS
(In
thousands except per share amounts)
(unaudited)
|
Three
months ended
|
||||||||
|
September
30,
|
||||||||
|
2006
|
2007
|
|||||||
|
Reported
net income
|
$ |
3,332
|
$ |
8,335
|
||||
|
Acquisition-transition
related costs included
|
||||||||
|
in
cost of sales
|
2,553
|
-
|
||||||
|
Plant
closure costs
|
429
|
-
|
||||||
|
Termination
of product offering
|
1,009
|
-
|
||||||
|
Other
acquisition-related costs
|
628
|
-
|
||||||
|
Total
other expense
|
2,066
|
-
|
||||||
|
Unusual
expense before income taxes
|
4,619
|
-
|
||||||
|
Provision
(benefit) for income taxes on unusual expense
|
(1,663 | ) |
-
|
|||||
|
Net
income before unusual items
|
$ |
6,288
|
$ |
8,335
|
||||
|
Per
share data:
|
||||||||
|
Reported
net income
|
||||||||
|
Basic
|
$ |
0.12
|
$ |
0.29
|
||||
|
Diluted
|
0.12
|
0.29
|
||||||
|
Net
income before unusual items
|
||||||||
|
Basic
|
$ |
0.23
|
$ |
0.29
|
||||
|
Diluted
|
0.22
|
0.29
|
||||||
Management
has provided the above reconciliation of net income before unusual items as
an
additional measure that investors can use to compare operating performance
between reporting periods. Management believes this reconciliation
provides a useful presentation of operating performance.
|
CONMED
News Release Continued
|
Page
10 of 10
|
October
25, 2007
|
CONMED
CORPORATION
RECONCILIATION
OF REPORTED NET INCOME TO NET INCOME
BEFORE
UNUSUAL ITEMS
(In
thousands except per share amounts)
(unaudited)
|
Nine
months ended
|
||||||||
|
September
30,
|
||||||||
|
2006
|
2007
|
|||||||
|
Reported
net income
|
$ |
11,086
|
$ |
29,622
|
||||
|
Acquisition-transition
related costs included
|
||||||||
|
in
cost of sales
|
7,142
|
-
|
||||||
|
Termination
of product offering
|
1,092
|
148
|
||||||
|
Write-off
of inventory in settlement of a patent dispute
|
595
|
-
|
||||||
|
Other
acquisition-related costs
|
2,104
|
-
|
||||||
|
Facility
closure related costs
|
429
|
1,822
|
||||||
|
Gain
on legal settlement
|
-
|
(6,072 | ) | |||||
|
Total
other expense
|
4,220
|
(4,102 | ) | |||||
|
Loss
on early extinguishment of debt
|
678
|
-
|
||||||
|
Unusual
expense before income taxes
|
12,040
|
(4,102 | ) | |||||
|
Provision
(benefit) for income taxes on unusual expense
|
(4,335 | ) |
1,477
|
|||||
|
Net
income before unusual items
|
$ |
18,791
|
$ |
26,997
|
||||
|
Per
share data:
|
||||||||
|
Reported
net income
|
||||||||
|
Basic
|
$ |
0.40
|
$ |
1.06
|
||||
|
Diluted
|
0.39
|
1.04
|
||||||
|
Net
income before unusual items
|
||||||||
|
Basic
|
$ |
0.67
|
$ |
0.96
|
||||
|
Diluted
|
0.67
|
0.94
|
||||||
Management
has provided the above reconciliation of net income before unusual items as
an
additional measure that investors can use to compare operating performance
between reporting periods. Management believes this reconciliation
provides a useful presentation of operating
performance.