Wright Medical Group, Inc. (NASDAQ: WMGI) today reported financial results for its second quarter ended June 30, 2013. As a result of the previously announced agreement to sell the hip and knee business to MicroPort Medical B.V., a subsidiary of MicroPort Scientific Corporation (MicroPort), this business is now reported as discontinued operations.
Net sales from continuing operations totaled $60.6 million during the second quarter ended June 30, 2013, representing a 17% increase as reported and on a constant currency basis compared to the second quarter of 2012.
Robert Palmisano, president and chief executive officer, commented, “Our second quarter results demonstrate the growth potential of the go forward business with sales from continuing operations increasing 17%. The global foot and ankle business grew an outstanding 30% driven by continued sales productivity gains in our U.S. foot and ankle business, positive progress and focus on international market development and continued strong uptake of recent new foot and ankle product launches.”
Palmisano continued, “We also believe the previously announced agreement to sell our hip & knee business to MicroPort represents a significant growth opportunity for both businesses going forward. We are making good progress on transition activities to separate the businesses and expect the transaction to close by the end of the third quarter or early in the fourth quarter of 2013. Business continuity and a seamless customer experience are top priorities, and we are highly focused on ensuring that no business momentum is lost during the transition period.”Net loss from continuing operations for the second quarter of 2013 totaled ($15.5) million or ($0.34) per diluted share, compared to a net loss of ($1.4) million or ($0.04) per diluted share in the second quarter of 2012. Net loss from continuing operations for the second quarter of 2013 included the after-tax effects of $1.1 million of charges associated with distributor conversions and non-competes, $2.2 million of non-cash interest expense related to the 2017 Convertible Notes, $2.6 million of transition costs associated with the sale of the OrthoRecon business, $1.4 million of transition costs associated with the acquisition of BioMimetic, an unrealized gain of $1.0 million related to mark-to-market adjustments on derivatives, and an unrealized loss of $5.8 million related to a mark-to-market adjustment on the contingent value rights (CVRs) issued in connection with the BioMimetic acquisition. Net loss for the second quarter of 2012 included the after-tax effects of $0.6 million of charges associated with distributor conversions and non-competes, and $0.3 million of charges associated with the previously announced cost-restructuring plan.