Kinetic Concepts Inc. (NYSE:KCI) beat Wall Street’s earnings expectations on its way to posting strong third-quarter sales and profits.
The San Antonio, Texas-based wound care firm reported profits of $90.7 million, or $1.16 per diluted share, on sales of $531.4 million during the three months ended Sept. 30. That compares with profits of $75.8 million, or $1.06 diluted EPS, on sales of $506.7 million during the same period last year – amounting to a bottom-line increase of 19.7 percent and a top-line boost of 4.9 percent.
Excluding one-time items, adjusted EPS were $1.35; analysts had expected adjusted EPS of $1.32.
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“Our third quarter financial performance was very solid, and once again, demonstrates KCI’s commitment to fiscal discipline while simultaneously launching new products and enhancing our global footprint,” president & CEO Catherine Burzik said in prepared remarks. “While our capital structure will change as a result of our pending merger transaction, we will continue to invest in innovation and geographic expansion in keeping with our perpetual commitment and promise to improve patient outcomes around the globe.”
KCI said it’s suspending its 2011 guidance due to its pending, $6.2 billion leveraged buyout by Apax Partners and a pair of Canadian pension funds.
The buyout, which has been approved by KCI’s board of directors, will go before shareholders for a vote Oct. 28.