Excluding the impact of the proposed transaction with BioMimetic Therapeutics, Inc. that was previously announced on November 19, 2012, the Company anticipates full-year 2013 net sales to be in the range of $485 million to $495 million. This range includes a negative impact from currency of approximately 2 percent as compared to 2012.
The Company anticipates as-adjusted earnings per share, including stock-based compensation, to be in the range of $0.00 to $0.06 per diluted share, based on approximately 40.0 million shares outstanding. While the amount of the non-cash stock-based compensation charges will vary depending upon a number of factors, the Company currently estimates that the after-tax impact of those expenses will be approximately $0.19 per diluted share for the full-year 2013. The Company’s earnings target excludes non-compete and transition costs associated with converting a major portion of independent foot and ankle territories to direct, possible future acquisitions, other material future business developments, the U.S. government inquiry relating to the PROFEMUR ® hip products, non-cash interest expense associated with the 2017 Convertible Notes, and non-cash mark-to-market derivative adjustments.
The Company anticipates 2013 free cash flow to be in the range of $35 million to $40 million.If the proposed transaction with BioMimetic closes as anticipated by the end of the first quarter of 2013, the Company anticipates no change to its full-year 2013 net sales range of $485 million to $495 million. This transaction is anticipated to negatively impact earnings per share in the range of $0.32 to $0.34 per diluted share, resulting in anticipated full-year 2013 loss per share including stock-based compensation for the combined company of $(0.26) to $(0.34) per diluted share, based on approximately 45.8 million shares outstanding, and free cash flow in the range of $0 million to $5 million. The Company’s anticipated ranges for net sales, adjusted earnings per share, non-cash stock-based compensation charges and free cash flow are forward-looking statements, as are any other statements which anticipate or aspire to future performance against key metrics. They are subject to various risks and uncertainties that could cause the Company’s actual results to differ materially from the anticipated targets. The anticipated targets are not predictions of the Company’s actual performance. See the cautionary information about forward-looking statements in the “Safe-Harbor Statement” section of this press release.