Theragenics Reports Revenue And Earnings For Third Quarter 2012

Theragenics Corporation ® (NYSE: TGX), a medical device company serving the surgical products and prostate cancer treatment markets, today announced consolidated financial results for the third quarter ended September 30, 2012.

Consolidated Results and Highlights
  • Consolidated revenue of $19.9 million in the third quarter, down 5% from 2011
  • Earnings per share
    • $0.02 in the third quarter compared to $0.03 in 2011
    • Modified Dutch auction share repurchase in July 2012 had no effect on reported EPS for third quarter 2012
  • Adjusted EBITDA of $3.2 million in the third quarter compared to $4.0 million in 2011
  • Cash flow from operations of $4.3 million in the third quarter compared to $3.6 million in 2011
  • Renewed credit facility with Wells Fargo in October 2012
    • Increased maximum available borrowings to $40 million and reduced interest rate to LIBOR plus 1.75% with maturity date of October 2015
  • Repurchased 4,761,904 common shares for $10.0 million in July 2012 pursuant to our modified Dutch auction tender offer. Total cost including transaction costs was approximately $10.4 million.
  • Cash, cash equivalents and marketable securities were $31.8 million and credit facility borrowings were $22.0 million at September 30, 2012, resulting in a net positive position of $9.8 million

Segment Results
  • Revenue
    • Surgical products revenue of $14.2 million in the third quarter, down 7% from 2011
    • Brachytherapy revenue of $5.8 million in the third quarter, down 4% from 2011
      • Incremental revenue in the Brachytherapy segment from acquired Core customers was $1.0 million in the third quarter of 2012
  • Operating income
    • Surgical products operating income of $243,000 in the third quarter, compared to $780,000 in 2011
    • Brachytherapy operating income of $906,000 in the third quarter, compared to $1.2 million in 2011

Comments

“Headwinds continue in all four of our business units,” stated M. Christine Jacobs, Chairman and CEO. “The medical device sector in which we reside is facing a triple threat of healthcare reform fallout, an impending medical device tax and macroeconomic uncertainty. Theragenics intends to weather this triple threat by continuing our plans for long term organic growth, improving profitability and conservative cash flow management.”

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