ORTHOFIX INTERNATIONAL N V | 2013 | FY | 3


The effects of the restatements on the Company’s consolidated statement of operations and comprehensive income for the year ended December 31, 2012 are as follows:

 

     Year Ended December 31, 2012  
(U.S. Dollars, in thousands, except share and per share data)    Previously
Reported
    Adjustments     Restated  

Product sales

   $ 415,850        (14,811   $ 401,039   

Marketing service fees

     46,470        72        46,542   
  

 

 

   

 

 

   

 

 

 

Net sales

     462,320        (14,739     447,581   

Cost of sales

     86,492        11,761        98,253   
  

 

 

   

 

 

   

 

 

 

Gross profit

     375,828        (26,500     349,328   

Operating expenses

      

Sales and marketing

     200,343        (13,212     187,131   

General and administrative

     53,827        (436     53,391   

Research and development

     28,577        —          28,577   

Amortization of intangible assets

     2,098        200        2,298   

Charges related to U.S. Government resolutions (Note 17)

     1,973        (678     1,295   
  

 

 

   

 

 

   

 

 

 
     286,818        (14,126     272,692   
  

 

 

   

 

 

   

 

 

 

Operating income

     89,010        (12,374     76,636   

Other income and (expense)

      

Interest expense, net

     (4,577     (166     (4,743

Other expense

     (1,705     —          (1,705
  

 

 

   

 

 

   

 

 

 
     (6,282     (166     (6,448
  

 

 

   

 

 

   

 

 

 

Income before income taxes

     82,728        (12,540     70,188   

Income tax expense

     (28,792     3,654        (25,138
  

 

 

   

 

 

   

 

 

 

Net income from continuing operations

     53,936        (8,886     45,050   
  

 

 

   

 

 

   

 

 

 

Discontinued operations (Note 16)

      

Gain on sale of Breg, Inc.,

     1,345        —          1,345   

Loss from discontinued operations

     (4,012     1,018        (2,994

Income tax benefit (expense)

     26        (589     (563
  

 

 

   

 

 

   

 

 

 

Net loss from discontinued operations

     (2,641     429        (2,212
  

 

 

   

 

 

   

 

 

 

Net income

   $ 51,295        (8,457   $ 42,838   
  

 

 

   

 

 

   

 

 

 

Net income (loss) per common share—basic:

      

Net income from continuing operations

   $ 2.84        (0.47   $ 2.37   

Net loss from discontinued operations

     (0.14     0.02        (0.12
  

 

 

   

 

 

   

 

 

 

Net income per common share—basic

   $ 2.70        (0.45   $ 2.25   
  

 

 

   

 

 

   

 

 

 

Net income (loss) per common share—diluted:

      

Net income from continuing operations

   $ 2.78        (0.46   $ 2.32   

Net loss from discontinued operations

     (0.14     0.03        (0.11
  

 

 

   

 

 

   

 

 

 

Net income per common share—diluted:

   $ 2.64        (0.43   $ 2.21   
  

 

 

   

 

 

   

 

 

 

Weighted average number of common shares:

      

Basic

     18,977,263        —          18,977,263   

Diluted

     19,390,413        —          19,390,413   

Other comprehensive income, before tax:

      

Translation adjustment

   $ 480        288      $ 768   

Unrealized gain on derivative instrument

     416        —          416   
  

 

 

   

 

 

   

 

 

 

Other comprehensive income, before tax

     896        288        1,184   

Income tax expense related to components of other comprehensive income

     (153     —          (153
  

 

 

   

 

 

   

 

 

 

Other comprehensive income, net of tax

     743        288        1,031   
  

 

 

   

 

 

   

 

 

 

Comprehensive income

   $ 52,038        (8,169   $ 43,869   
  

 

 

   

 

 

   

 

 

 

 

The effects of the restatements on the Company’s consolidated statement of operations and comprehensive loss for the year ended December 31, 2011 are as follows:

 

     Year Ended December 31, 2011  
(U.S. Dollars, in thousands, except share and per share data)    Previously
Reported
    Adjustments     Restated  

Product sales

   $ 432,975        (27,828   $ 405,147   

Marketing service fees

     37,146        (322     36,824   
  

 

 

   

 

 

   

 

 

 

Net sales

     470,121        (28,150     441,971   

Cost of sales

     92,619        2,908        95,527   
  

 

 

   

 

 

   

 

 

 

Gross profit

     377,502        (31,058     346,444   

Operating expenses

      

Sales and marketing

     200,145        (6,634     193,511   

General and administrative

     64,374        107        64,481   

Research and development

     22,861        —          22,861   

Amortization of intangible assets

     2,350        200        2,550   

Charges related to U.S. Government resolutions (Note 17)

     56,463        678        57,141   
  

 

 

   

 

 

   

 

 

 
     346,193        (5,649     340,544   
  

 

 

   

 

 

   

 

 

 

Operating income

     31,309        (25,409     5,900   

Other income and (expense)

      

Interest expense, net

     (9,456     3,915       (5,541

Other expense

     (2,412     —          (2,412
  

 

 

   

 

 

   

 

 

 
     (11,868     3,915       (7,953
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     19,441        (21,494     (2,053

Income tax expense

     (21,181     7,016        (14,165
  

 

 

   

 

 

   

 

 

 

Net loss from continuing operations

     (1,740     (14,478     (16,218
  

 

 

   

 

 

   

 

 

 

Discontinued operations (Note 16)

      

Gain on sale of Breg, Inc.

     —         —         —    

Income (loss) from discontinued operations

     1,263        (3,968     (2,705

Income tax (expense) benefit

     (596     1,409       813   
  

 

 

   

 

 

   

 

 

 

Net income (loss) from discontinued operations

     667        (2,559     (1,892
  

 

 

   

 

 

   

 

 

 

Net loss

   $ (1,073     (17,037   $ (18,110
  

 

 

   

 

 

   

 

 

 

Net income (loss) per common share—basic:

      

Net loss from continuing operations

   $ (0.10     (0.79   $ (0.89

Net income (loss) from discontinued operations

     0.04        (0.14     (0.10
  

 

 

   

 

 

   

 

 

 

Net loss per common share—basic

   $ (0.06     (0.93   $ (0.99
  

 

 

   

 

 

   

 

 

 

Net income (loss) per common share—diluted:

      

Net loss from continuing operations

   $ (0.10     (0.79   $ (0.89

Net income (loss) from discontinued operations

     0.04        (0.14     (0.10
  

 

 

   

 

 

   

 

 

 

Net loss per common share—diluted:

   $ (0.06     (0.93   $ (0.99
  

 

 

   

 

 

   

 

 

 

Weighted average number of common shares:

      

Basic

     18,219,343        —         18,219,343   

Diluted

     18,219,343        —         18,219,343   

Other comprehensive loss, before tax:

      

Translation adjustment

   $ (3,192     913      $ (2,279

Unrealized loss on derivative instrument

     (693     —         (693
  

 

 

   

 

 

   

 

 

 

Other comprehensive loss, before tax

     (3,885     913        (2,972

Income tax benefit related to components of other comprehensive income

     256        —         256   
  

 

 

   

 

 

   

 

 

 

Other comprehensive loss, net of tax

     (3,629     913        (2,716
  

 

 

   

 

 

   

 

 

 

Comprehensive loss

   $ (4,702     (16,124   $ (20,826
  

 

 

   

 

 

   

 

 

 

 


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