Orthofix International Provides Preliminary 2012 Results

  Orthofix International Provides Preliminary 2012 Results

Business Wire

LEWISVILLE, Texas -- January 7, 2013

Orthofix International N.V., (NASDAQ:OFIX) (the Company) provided
todaypreliminary unaudited results for the fourth quarter, and year ending
December 31, 2012. The Company anticipates net sales to be approximately $112
million and full year 2012 net sales from continuing operations to be
approximately $462 million. The negative impact from foreign currency
translation is expected to be approximately $10 million for the full year
2012.

The Company expects fourth quarter 2012 adjusted earnings from continuing
operations per share to be between $0.78 and $0.83. For the full year 2012,
adjusted earnings from continuing operations per share are expected to be
between $3.01 and $3.06. These sales and earnings results are preliminary and
unaudited therefore are subject to change.

Despite the strong revenue increase in our U.S. Spine Repair Implants and
Regenerative Biologics business and an increase in our U.S. Orthopedic Repair
business, the fourth quarter revenue was negatively impacted in international
markets by regulatory and macroeconomic conditions. In addition, the Company’s
Spine Regenerative Stimulation business was negatively impacted in the second
half of the year by sales force turnover as we initially implemented our
Corporate Integrity Agreement in June 2012.

Robert Vaters, President and Chief Executive Officer, stated, “While I am
pleased with our preliminary earnings, I am disappointed in the preliminary
fourth quarter revenue. The international markets have presented many
challenges in the latter part of 2012 and especially during the fourth
quarter. These included general market and regulatory conditions in both the
Spine and Orthopedic businesses, mandatory price reductions for public
hospitals in Italy, cancellation of reimbursement by the government on
Physio-Stim in France, and a delay of surgeries by government hospitals and
insurance providers. Despite top line weakness in the fourth quarter, 2012 was
a transformative year for Orthofix as we accomplished significant objectives
by finalizing the three major legal matters, achieving our operating margin
expansion goals, and improving the Company’s financial profile to enable
investment in product pipeline and inorganic activities to drive future
growth.”

The Company will be reporting final 2012 financial results along with 2013
guidance after the market close Thursday, February 21, 2013.

Forward-Looking Statements:

This communication contains certain forward-looking statements under the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements, which may include, but are not limited to, statements concerning
the projections, financial condition, results of operations and businesses of
Orthofix and its subsidiaries and are based on management’s current
expectations and estimates and involve risks and uncertainties that could
cause actual results or outcomes to differ materially from those contemplated
by the forward-looking statements.

The forward-looking statements in this release do not constitute guarantees or
promises of future performance. Existing and prospective investors are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. The Company undertakes no obligation
to update or revise the information contained in this press release (which
contains information current as of the date hereof, whether as a result of new
information, future events or circumstances, or otherwise.

About Orthofix:

Orthofix International N.V. is a diversified, global medical device company
focused on developing and delivering innovative repair and regenerative
solutions to the spine and orthopedic markets. Orthofix’s products are widely
distributed around the world to orthopedic surgeons and patients via
Orthofix’s sales representatives and its subsidiaries, and via collaborations
with other leading orthopedic product companies. In addition, Orthofix is
collaborating on R&D activities with leading research and clinical
organizations such as the Musculoskeletal Transplant Foundation, the
Orthopedic Research and Education Foundation, and Texas Scottish Rite Hospital
for Children. For more information about Orthofix, please visit
www.orthofix.com.

Contact:

Orthofix International N.V.
Mark Quick, 214-937-2924
Director of Investor Relations and Business Development
markquick@orthofix.com
 
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