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$SYK 1Q15 10-Q: Consolidated net sales increased 3.2%. Net sales grew 7.1% as a result of increased unit volume and changes in product mix and 1.9% due to acquisitions, and were unfavorably impacted by 4.2% due to ForEx rates and 1.6% due to changes in price. Excluding the impact of acquisitions, net sales increased by 5.6% in constant currency.
Surgical equipment manufacturer $SYK slipped into loss during 4Q17, following the passage of the new tax legislation. Net loss during the quarter was $249MM, or $0.66 per share, compared to earnings of $510MM, or $1.34 per share in the prior year period. Adj. EPS rose 10.1% to $1.96. Net sales, however rose 10.0% YoY to $3.5Bil in 4Q17.
$SYK said that for 4Q17 its preliminary results are of net sales growth of 10% to $3.5Bil, while for FY17, its net sales grew 9.9% to $12.4Bil. Excluding the impact of foreign currency & acquisitions, net sales rose 8.1% and 7.1% in 4Q17 and FY17. For 2018, $SYK expects modest headwinds that will be manageable within its overall financial targets.
$SYK said Howard Cox Jr. has notified the company that he will not stand for re-election at Stryker's 2018 Annual Meeting, which is expected to be held on May 2, 2018. In light of Cox's immense contributions to the company, he will be named Director Emeritus.
$SYK said that the simplified public tender offer for the shares and BSAAR warrants of VEXIM has closed. $SYK, which already owned over 50% of the share capital and voting rights of VEXIM, acquired an additional 4.04MM shares during the offer period, as well as 226,520 BSAAR warrants that it has exercised for new shares of VEXIM.
$SYK agreed to buy $ENTL for $24 per share, or an equity value of about $662MM. The transaction is expected to be dilutive to $SYK's 2018 adjusted EPS by about $0.04 and accretive thereafter. Guggenheim Securities served as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as outside legal counsel for $SYK.
Surgical equipment manufacturer $SYK posted a 2.9% increase in net earnings to $391MM for the second quarter of 2017, compared to a year ago period. Organic net sales growth for 2017 is expected to be in the range of 6.5-7.0% and adjusted EPS to be in the range of $6.45-6.55.
$SYK said its subsidiary Howmedica Osteonics will move forward with the 2016 Settlement Program that provides for compensation to additional eligible U.S. patients who had surgery to replace their Rejuvenate Modular-Neck hip stem and/or ABG II Modular-Neck hip stem, known as a revision surgery, prior to Dec. 19, 2016.
$SYK said its subsidiary Howmedica Osteonics has informed the courts in the New Jersey Multicounty and Federal Multidistrict litigations that 95% of additional registered eligible patients have enrolled in the Settlement Program under the Master Settlement Agreement announced in December 2016.
$SYK said spine is an important part of its growth strategy. The company plans to launch a number of new products over the course of 2017 which are expected to accelerate growth. $SYK also plans to bring a couple of products back on the market and these are starting to take hold. $SYK expects the spine business to improve in 2017.
$SYK is positive on the pace of the MAKO system upgrades. The company started doing the upgrades in 4Q16 and they are continuing to accelerate sequentially. $SYK believes the vast majority of the robots in the field will get upgraded and this process will continue through 2018. The company expects these upgrades to continue to build.