DJO Global’s public reporting subsidiary posted a major increase in losses for its 4th quarter, driven primarily by a $106.6 million goodwill write-down that nearly tripled the company’s red ink.
DJO posted a 180% increase in losses on an 8% increase on sales during the quarter, as well as a 71% increase in losses and a 4% increase in sales for fiscal 2013.
The quarter was also impaired by nearly $1 million in expenses related to a fire at a Tunisian factory, which the company had said could cost as much as $5 million in earlier estimates.
San Diego-based DJO reported losses of $131.8 million in losses on sales of $313.6 million during the 3 months ended December 31. That compared with losses of $47 million on sales of $290.5 million during the same period the previous year.
"The increase in the net loss was due primarily to a year-end write off of goodwill of $106.6 million, whereas the net loss for the 4th quarter of 2012 included a loss on modification and extinguishment of debt of $27.5 million," according to a press release. The company still posts $1.15 billion in goodwill as of the end of the year.
For the full year of 2013 DJO reported losses of $203.5 million on sales of $1.18 billion. That compared with losses of $119.2 million on sales of $1.13 billion in 2012.