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Symmetry Medical Reports Third Quarter 2009 Financial Results
Date:11/5/2009

WARSAW, Ind., Nov. 5 /PRNewswire-FirstCall/ -- Symmetry Medical Inc. (NYSE: SMA), a leading independent provider of products to the global orthopaedic device industry and other medical markets, announced third quarter 2009 financial results for the period ended October 3, 2009.


    (in millions, except        Third Quarter        Vs Prior Quarter
     share data)            2009    2008  Change   3Q'09   2Q'09  Change
                           -----  ------  ------   -----  ------  ------
    Revenue                $87.2  $112.1    -22%   $87.2  $101.0    -14%
    Operating Income        10.4    10.5     -1%    10.4    13.5    -23%
    Net Income               5.4     2.5    116%     5.4     9.0    -40%
    EPS                    $0.15   $0.07    114%   $0.15   $0.25    -40%

    Revenue by Product:
    Instruments            $41.3   $48.7    -15%   $41.3   $46.9    -12%
    Implants                24.2    31.5    -23%    24.2    29.9    -19%
    Cases                   16.4    23.0    -29%    16.4    18.9    -13%
    Other                    5.3     8.9    -40%     5.3     5.3      0%
                           -----  ------  ------   -----  ------  ------
      Total Revenue        $87.2  $112.1   -22%    $87.2  $101.0    -14%

Revenue for the third quarter 2009 was $87.2 million, compared to $112.1 million reported in the third quarter 2008. Revenues during the quarter were unfavorably impacted by reduced customer demand across all segments of the business as well as a foreign currency translation effect of $2.7 million.

Gross profit for the third quarter 2009 was $21.2 million, compared to $25.7 million in the third quarter 2008. The year-over-year decrease was driven by lower customer demand as well as a one-time expense of $1.0 million for facility consolidation and staff reductions in the third quarter 2009.

Gross margin percentage for the third quarter 2009 was 24.4% compared to gross margin percentage of 22.9% in the same period last year. Gross margin improved despite the significantly lower volume. Aggressive cost cutting actions as well as significant improvements at the Sheffield, UK operating site drove the increase.

Selling, general and administrative expenses declined in the third quarter 2009 to $10.8 million, a 28.7% reduction from $15.2 million in the third quarter 2008. The year-over-year decrease in the third quarter 2009 was driven primarily by aggressive cost controls as well as a $1.6 million reduction in performance based compensation and restricted stock expense. Additionally, the third quarter 2008 included $0.9 million from Sheffield, UK investigation costs which did not repeat in 2009.

Operating income for the third quarter 2009 was $10.4 million compared to $10.5 million for the third quarter 2008. Operating margin of 12.0% for the third quarter 2009 was up from 9.4% for the third quarter 2008.

The third quarter 2009 included a non-cash gain of $0.2 million for the mark to market of the Company's interest rate derivative, compared to a non-cash gain of $1.0 million in the third quarter 2008. Other expense of $0.7 million in the third quarter 2009 compares to $3.1 million in the third quarter 2008. The primary driver of this expense is realized and unrealized foreign exchange.

Income tax expense for the third quarter 2009 was $2.9 million, compared to $3.2 million for the third quarter of 2008.

Net income for the third quarter 2009 was $5.4 million, or $0.15 per diluted share, up from net income of $2.5 million, or $0.07 per diluted share, for the third quarter of 2008.

The weighted average number of diluted shares outstanding during the third quarter of 2009 was 35,620,317.

Brian Moore, President and Chief Executive Officer of Symmetry Medical, stated, "While revenue declined in the third quarter 2009 due to softness across our sectors and broader economic conditions, we are pleased to significantly grow the bottom line year-over-year. This reflects the initiatives we undertook in anticipation of customer order softness in the second half of 2009. As our October 26, press release stated, we continue to see softness in the market and have revised our full year 2009 financial guidance to reflect current conditions. Despite this recent volatility across all segments of the business, we are encouraged by gains in market share we have realized as our customers consolidate suppliers and focus on assuring product quality and strong suppliers. We believe Symmetry has an advantage during this period as a result of our strong business model, strong cash position and our customer relationships."

Financial Guidance

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

Based on current order flow and anticipated customer demand for the remainder of the 2009, Symmetry is adjusting its previously stated annual revenue guidance to a range of $355 million to $365 million, from $385 million to $405 million. The Company now expects full year 2009 earnings per share to be in the range of $0.63 to $0.68 per diluted share, from $0.77 to $0.85.

Conference Call

Symmetry Medical will host a conference call to discuss the third quarter 2009 earnings at 8:00 a.m. ET on November 5, 2009. A live Web cast of the conference call will be available online from the investor relations page of the Company's corporate website at www.symmetrymedical.com. The dial-in numbers are (866) 383-8003 for domestic callers and (617) 597-5330 for international. The reservation number for both is 89255155. After the live webcast, the call will remain available on Symmetry Medical's web site through January 5, 2010. In addition, a telephonic replay of the call will be available until November 19, 2009. The replay numbers are (888) 286-8010 for domestic callers and (617) 801-6888 for international callers. Please use reservation code 69959746.

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.


    Symmetry Medical Reports Third Quarter 2009 Financial Results

    Consolidated Statements of Operations

                            Three Months Ended      Nine Month Ended
                          ---------------------  ----------------------
                           October 3, October 4, October 3,   October 4,
                             2009        2008       2009         2008
                          ---------   ---------   ---------   ---------
                              (In Thousands, Except Per Share Data)
                         (unaudited) (unaudited) (unaudited) (unaudited)

    Revenue                 $87,164    $112,095    $289,540    $323,744
    Cost of Revenue          65,917      86,445     216,964     246,733
                          ---------   ---------   ---------   ---------
    Gross Profit             21,247      25,650      72,576      77,011
    Selling, general and
     administrative
     expenses                10,813      15,165      37,395      44,474
                          ---------   ---------   ---------   ---------
    Operating Income         10,434      10,485      35,181      32,537
    Other (income)/expense:
    Interest expense          1,666       2,683       5,050       8,300
    Derivatives valuation
     gain                      (178)       (972)       (746)     (1,041)
    Other                       687       3,079         379       2,581
                          ---------   ---------   ---------   ---------
    Income before
     income taxes             8,259       5,695      30,498      22,697
    Income tax expense        2,851       3,162       9,268       9,995
                          ---------   ---------   ---------   ---------
    Net income               $5,408      $2,533     $21,230     $12,702
    Net income per share: =========   =========   =========   =========
    Basic                     $0.15       $0.07       $0.60       $0.36
                          =========   =========   =========   =========
    Diluted                   $0.15       $0.07       $0.59       $0.36
                          =========   =========   =========   =========
    Weighted average common
     shares and equivalent
     shares outstanding:
    Basic                    35,326      35,174      35,289      35,161
    Diluted                  35,620      35,402      35,486      35,354



    Symmetry Medical Reports Third Quarter 2009 Financial Results

    Consolidated Balance Sheets

                                                   October 3,   January 3,
                                                      2009         2009
                                                    --------     --------
                                                       (In Thousands)
                                                  (unaudited)
    Assets:
    Current Assets:
    Cash and cash equivalents                        $16,432      $10,191
    Accounts receivable, net                          43,205       52,845
    Inventories                                       65,697       61,111
    Refundable income taxes                            2,884        6,610
    Deferred income taxes                              5,493        3,993
    Other current assets                               2,710        3,154
                                                    --------     --------
    Total current assets                             136,421      137,904
    Property and equipment, net                      116,933      115,045
    Goodwill                                         153,721      153,521
    Intangible assets, net of
     accumulated amortization                         43,387       45,039
    Other assets                                       1,260        1,728
                                                    --------     --------
    Total Assets                                    $451,722     $453,237
                                                    ========     ========

    Liabilities and Shareholders' Equity:
    Current Liabilities:
    Accounts payable                                 $20,074      $26,929
    Accrued wages and benefits                         7,764       12,784
    Other accrued expenses                             4,808        5,186
    Income tax payable                                   574        2,637
    Deferred income taxes                                115            -
    Revolving line of credit                           5,479        2,495
    Current portion of capital lease obligations         558        1,034
    Current portion of long-term debt                 19,525       16,900
                                                    --------     --------
    Total current liabilities                         58,897       67,965
    Deferred income taxes                             23,848       18,131
    Derivative valuation liability                     3,458        3,771
    Capital lease obligations, less current portion    2,983        3,356
    Long-term debt, less current portion              81,678      107,600
                                                    --------     --------
    Total Liabilities                                170,864      200,823
                                                    --------     --------

    Commitments and contingencies (Note 14)

    Shareholders' Equity:
    Common Stock, $.0001 par value;
     75,000 shares authorized; shares
     issued October 3, 2009--35,806;
     January 3, 2009--35,801                               4            4
    Additional paid-in capital                       278,031      275,890
    Accumulated deficit                                 (277)     (21,507)
    Accumulated other comprehensive income (loss)      3,100       (1,973)
    Total Shareholders' Equity                       280,858      252,414
    Total Liabilities and Shareholders' Equity      $451,722     $453,237


    Contact:                              Investors:
    Symmetry Medical Inc.                 The Ruth Group
    Fred L. Hite                          Nick Laudico/R.J. Pellegrino
    Senior Vice President                 (646) 536-7030/7009
    Chief Financial Officer               nlaudico@theruthgroup.com
    (574) 371-2218                        rpellegrino@theruthgroup.com

                                          Media:
                                          Jason Rando
                                          The Ruth Group
                                          (646) 536-7025
                                          jrando@theruthgroup.com

SOURCE Symmetry Medical Inc.


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SOURCE Symmetry Medical Inc.
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