Wright Medical Group, Inc. (NASDAQ: WMGI), a global orthopaedic medical device company and a leading provider of surgical solutions for the foot and ankle market, today reported financial results for its second quarter ended June 30, 2012 and updated guidance.
Net sales totaled $123.3 million during the second quarter ended June 30, 2012, representing a 7% decrease as reported and a 5% decrease on a constant currency basis compared to the second quarter of 2011. During the second quarter of 2012, U.S. sales were negatively affected by previously announced distributor transitions that occurred in the third quarter of 2011, challenges associated with implementing enhancements to the Company's compliance processes, and the impact of the previously announced agreement with KCI.
Robert Palmisano, President and Chief Executive Officer, commented, “During the second quarter, we made significant progress on implementing the important changes to transform our business and deliver significant shareholder return. Although we are early in the execution phase of our plan, we are very encouraged by the initial results on our key measures with global foot and ankle constant currency growth of 13% and outstanding free cash flow generation for the first half of the year. In addition to significant foot and ankle sales growth, the conversion of a major portion of our foot and ankle distributor territories to direct sales representation is ahead of schedule, and we are pleased with our execution to date. We believe this increase in U.S. direct foot and ankle sales representation, coupled with our large and growing product portfolio and our increased investment in medical education, will enable us to continue improving our foot and ankle growth rate throughout 2012 and to exit the year at well above market growth rates.”
Net income for the second quarter of 2012 totaled $0.7 million or $0.02 per diluted share, compared to net income of $6.1 million or $0.16 per diluted share in the second quarter of 2011.