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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