First-quarter sales for Orthofix International NV (NSDQ:OFIX) rocketed 507.6 percent on the strength of the sale of its vascular unit to Covidien plc (NYSE:COV) last month, as the Dutch firm posted a sales increase of 7.6 percent.
Orthofix, which maintains its U.S. headquarters in Boston, posted net income of $17.5 million, or 99 cents per share, on sales of $138.8 million. That compares with net income of $2.9 million, or 17 cents per share, during Q1 2009.
Excluding a roughly $9 million gain from the $19 million deal with Covidien and a $217,000 non-cash gain from an interest rate swap, and accounting for a $146,000 hit from unfavorable exchange rates, adjusted net income was $8.4 million, or 47 cents per share, for the quarter. That’s still a healthy 38.1 percent increase over adjusted year-ago profits of $6.1 million, or 35 cents per share, which exclude expenses from "strategic investments," restructuring charges and a costly proxy war with New York-based hedge fund Ramius LLC.
Orthofix said it closed the quarter with a cash balance of $34.7 million, compared with $25 million on hand as of the end of 2009, reflecting its use of the proceeds from the business unit sale to Covidien to pay down debt.
The company raised its full-year earnings-per-share guidance by 14 cents, to between $2.38 and $2.42.