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Symmetry Medical Reports First Quarter 2009 Financial Results
Date:5/7/2009

Reaffirms Full Year 2009 Revenue and Increases Low-end of EPS Guidance

WARSAW, Ind., May 7 /PRNewswire-FirstCall/ --

First Quarter 2009 Highlights:

  • Revenue of $101.4 million, comparable year-over-year and up 6.8% on a constant currency basis
  • Gross margin of 24.2%, up 70 basis points year-over-year and up 80 basis points over the fourth quarter of 2008
  • Operating income of $11.2 million, up 17.2% year-over-year and up 18.2% over the fourth quarter of 2008
  • Net income of $6.8 million or $0.19 per diluted share, compared to $4.0 million or $0.11 per diluted share in the first quarter 2008

Symmetry Medical Inc. (NYSE: SMA), a leading independent provider of products to the global orthopaedic device industry and other medical markets, announced today first quarter 2009 financial results for the period ended April 4, 2009.

     (in millions,            First Quarter              Vs Prior Quarter
     except share data)  2009      2008    Change    1Q'09     4Q'08   Change
                         ----      ----    ------    -----     -----   ------
    Revenue             $101.4    $101.9      0%    $101.4     $99.7      2%
    Operating Income      11.2       9.6     17%      11.2       9.5     18%
    Net Income             6.8       4.0     73%       6.8       4.4 *   56%
    EPS                  $0.19     $0.11     73%     $0.19     $0.12 *   62%

    Revenue by Product:
    Instruments          $46.5     $39.3     18%     $46.5     $44.4      5%
    Implants              29.1      30.3     -4%      29.1      29.6     -2%
    Cases                 18.5      21.5    -14%      18.5      18.5      0%
    Other                  7.3      10.8    -32%       7.3       7.2      1%
                          ----     -----              ----      ----
        Total Revenue   $101.4    $101.9      0%    $101.4     $99.8      2%

    * non-gaap basis, excluding tax benefit of $6.9 million / $0.20 of EPS

Revenue for the first quarter 2009 was $101.4 million, compared to $101.9 million reported in the first quarter 2008. Foreign currency had a $7.4 million unfavorable impact on the first quarter of 2009 compared to the first quarter of 2008. On a constant currency basis, revenue increased 6.8% for the period. First quarter 2009 includes a full quarter results from the Company's New Bedford, Massachusetts manufacturing facility, which was acquired from DePuy Orthopaedics, Inc. in January 2008. Adjusting for the acquisition and the foreign exchange, revenue grew 4.2%.

Gross profit for the first quarter 2009 was $24.6 million, compared to $24.0 million in the first quarter 2008. Gross margin percentage for the first quarter 2009 was 24.2% compared to gross margin percentage of 23.5% in the same period last year and 23.4% in the fourth quarter 2008.

Selling, general and administrative expenses were $13.4 million for the first quarter 2009, a decrease of 7.2% from $14.4 million for the first quarter 2008. The first quarter of 2008 expenses included approximately $2.2 million of professional fees related to the Sheffield, UK investigation. The Company did not incur further investigation expenses in the first quarter of 2009. Lower expenses were partially offset by an increase in non-cash stock based compensation and increased expenses associated with the addition of the New Bedford facility, which was acquired at the end of January 2008.

Operating income for the first quarter 2009 was $11.2 million compared to $9.6 million for the first quarter 2008. Operating margin for the first quarter 2009 was 11.0%, an increase from 9.4% for the first quarter 2008.

Net income for the first quarter 2009 was $6.8 million, or $0.19 per diluted share, compared to net income of $4.0 million, or $0.11 per diluted share, for the first quarter of 2008.

The weighted average number of diluted shares outstanding during the first quarter of 2009 was 35,380,503.

Brian Moore, President and Chief Executive Officer of Symmetry Medical, stated, "Our first quarter results represent an excellent start for 2009. We remain encouraged by our improved operational performance and efficiencies and continue to expect to reach profitability at our Sheffield facility in the second half of 2009."

Mr. Moore continued, "Although the overall global economy remains challenging we are encouraged by the performance and strength of our business model. Despite our positive outlook, we will continue to manage operations conservatively, control costs, generate cash and improve efficiencies. Our focus for the remainder of the year is to build on our global presence in the orthopaedic industry and deliver improved results."

Financial Guidance

The following forward-looking estimates regarding 2009 guidance are based on current market conditions and foreign currency comparisons. Actual results may differ materially, and we refer you to forward-looking statements located at the end of the press release.

For the full year 2009, the Company is reaffirming its previously stated annual revenue guidance to be in the range of $405 million to $420 million. On a constant currency basis, the Company expects revenue to increase 2%-6% for the full year. For the full year 2009, the Company is increasing the low-end of earnings per diluted share guidance from $0.75 to $0.77 and reaffirming the high-end guidance of $0.85.

The Company continues to expect the Sheffield, UK operating unit to report smaller net operating losses during the second quarter 2009 and operating profitability in the second half of 2009.

Conference Call

Symmetry Medical will host a conference call at 8:00 a.m. ET on May 7, 2009. A live webcast of the conference call will be available online from the investor relations page of the Company's corporate web site at www.symmetrymedical.com. The dial-in numbers are (800) 706-7745 for domestic callers and (617) 614-3472 for international. The reservation number for both is 96482121. After the live webcast, the call will remain available on Symmetry Medical's web site through July 7, 2009. In addition, a telephonic replay of the call will be available until May 14, 2009. The replay numbers are (888) 286-8010 for domestic callers and (617) 801-6888 for international callers. Please use reservation code 90966491.

About Symmetry Medical Inc.

Symmetry Medical Inc. is a leading independent provider of implants and related instruments and cases to the orthopaedic device industry. The Company also designs, develops and produces these products for companies in other segments of the medical device market, including arthroscopy, dental, laparoscopy, osteobiologic and endoscopy sectors and provides limited specialized products and services to non-healthcare markets, such as the aerospace market.

Forward-Looking Statements

Statements in the press release regarding Symmetry Medical Inc.'s business, which are not historical facts, may be "forward-looking statements" that involve risks and uncertainties, within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are predictive in nature and are frequently identified by the use of terms such as "may," "might," "will," "should," "expect," "believe," "anticipate," "plan," "estimate," "intend," and similar words indicating possible future expectations, events or actions. Such predictive statements are not guarantees of future performance, and actual outcomes and results could differ materially from our current expectations. We refer you to the "Risk Factors" and "Forward Looking-Statements" sections in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission as well as the Company's other filings with the SEC, which are available on the SEC's Web site at www.sec.gov.

    Contact:

    Investors/Media:
    The Ruth Group
    Nick Laudico/Jason Rando
    646-536-7030/7025
    nlaudico@theruthgroup.com
    jrando@theruthgroup.com

    Symmetry Medical Inc.
    Fred Hite
    Senior Vice President
    Chief Financial Officer
    (574) 371-2218

    Symmetry Medical Inc.
    Consolidated Statements of Operations
                                               Three Months Ended
                                               ------------------
                                               April 4,   March 29,
                                                 2009       2008
                                               -------    --------
                                     (In Thousands, Except Per Share Data)
                                                   (unaudited)

    Revenue                                  $101,422   $101,862
    Cost of Revenue                            76,864     77,916
                                               ------     ------

    Gross Profit                               24,558     23,946
    Selling, general and administrative
     expenses                                  13,353     14,382


    Operating Income                           11,205      9,564

    Other (income)/expense:
    Interest expense                            1,820      2,700
    Derivatives valuation (gain)/loss            (394)     1,165
    Other                                        (296)      (162)
                                                 ----       ----

    Income before income taxes                 10,075      5,861
    Income tax expense                          3,228      1,894
                                                -----      -----

    Net income                                 $6,847     $3,967
                                               ======     ======

    Net income per share:
    Basic                                       $0.19      $0.11
                                                =====      =====

    Diluted                                     $0.19      $0.11
                                                =====      =====


    Weighted average common shares and
     equivalent shares outstanding:
    Basic                                      35,286     35,153
    Diluted                                    35,381     35,335



    Symmetry Medical Inc.
    Consolidated Balance Sheets
                                                        April 4,    January 3,
                                                          2009         2009
                                                          ----         ----
                                                           (In Thousands)
                                                      (unaudited)
    Assets:
    Current Assets:
    Cash and cash equivalents                           $18,957      $10,191
    Accounts receivable, net                             52,510       52,845
    Inventories                                          68,942       61,111
    Refundable income taxes                               1,272        6,610
    Deferred income taxes                                 4,509        3,993
    Other current assets                                  4,253        3,154
                                                          -----        -----

    Total current assets                                150,443      137,904
    Property and equipment, net                         115,737      115,045
    Goodwill                                            153,003      153,521
    Intangible assets, net of accumulated
     amortization                                        44,414       45,039
    Other assets                                          1,558        1,728
                                                          -----        -----

    Total Assets                                       $465,155     $453,237
                                                       ========     ========

    Liabilities and Shareholders' Equity:
    Current Liabilities:
    Accounts payable                                    $30,254      $26,929
    Accrued wages and benefits                            8,757       12,784
    Other accrued expenses                                4,606        5,186
    Income tax payable                                    3,969        2,637
    Deferred income taxes                                   105            -
    Revolving line of credit                              3,265        2,495
    Current portion of capital lease obligations            813        1,034
    Current portion of long-term debt                    17,775       16,900
                                                         ------       ------

    Total current liabilities                            69,544       67,965
    Deferred income taxes                                18,966       18,131
    Derivative valuation liability                        3,377        3,771
    Capital lease obligations, less current portion       3,228        3,356
    Long-term debt, less current portion                110,500      107,600
                                                        -------      -------

    Total Liabilities                                   205,615      200,823
                                                        -------      -------

    Shareholders' Equity:
    Common Stock, $.0001 par value; 72,410 shares
     authorized; shares issued April 4, 2009--
     35,799; January 3, 2009--35,801                          4            4
    Additional paid-in capital                          276,629      275,890
    Accumulated deficit                                 (14,660)     (21,507)
    Accumulated other comprehensive loss                 (2,433)      (1,973)
                                                         ------       ------

    Total Shareholders' Equity                          259,540      252,414
                                                        -------      -------

    Total Liabilities and Shareholders' Equity         $465,155     $453,237
                                                       ========     ========


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SOURCE Symmetry Medical Inc.
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All rights reserved

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