EXACTECH INC

CIK:0000913165|SEC Filings

Condensed Consolidated Statements Of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
NET SALES	$ 61,404	$ 59,919	$ 198,213	$ 191,341
COST OF GOODS SOLD	18,232	18,772	59,927	59,408
Gross profit	43,172	41,147	138,286	131,933
OPERATING EXPENSES:
Sales and marketing	22,713	21,684	71,335	68,838
General and administrative	5,908	5,186	18,065	16,740
Research and development	5,729	5,096	17,333	15,495
Depreciation and amortization	4,892	4,592	14,283	13,326
Total operating expenses	39,242	36,558	121,016	114,399
INCOME FROM OPERATIONS	3,930	4,589	17,270	17,534
OTHER INCOME (EXPENSE):
Interest income	32	29	87	35
Other income	(28)	43	300	115
Interest expense	(229)	(186)	(693)	(716)
Foreign Currency Gain (Loss)	470	73	1,200	665
Total other income (expense)	245	(41)	894	99
INCOME BEFORE INCOME TAXES	4,175	4,548	18,164	17,633
PROVISION FOR INCOME TAXES	1,277	1,383	5,756	5,680
NET INCOME	2,898	3,165	12,408	11,953
EQUITY IN LOSS OF INVESTEE, NET OF TAX	(36)	0	(131)	0
Net Income	$ 2,862	$ 3,165	$ 12,277	$ 11,953
BASIC EARNINGS PER SHARE (in dollars per share)	$ 0.20	$ 0.22	$ 0.86	$ 0.85
DILUTED EARNINGS PER SHARE (in dollars per share)	$ 0.20	$ 0.22	$ 0.84	$ 0.84

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
OPERATING ACTIVITIES:
Net income	$ 12,277	$ 11,953
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for allowance for doubtful accounts and sales returns	570	111
Inventory allowance	2,903	3,434
Depreciation and amortization	15,173	14,246
Restricted common stock issued for services	290	290
Compensation cost of stock awards	1,322	1,274
Loss on disposal of equipment	1,168	1,725
Gain on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments	0	21
Foreign currency exchange gain	(1,739)	(1,081)
Equity in net loss of equity investee	131	0
Deferred income taxes	3,296	(1,595)
Changes in assets and liabilities which provided (used) cash:
Accounts receivable	(259)	1,678
Prepaids and other assets	(1,633)	(988)
Inventories	(4,706)	(11,487)
Accounts payable	891	77
Income taxes receivable/payable	1,042	1,716
Accrued expense & other liabilities	(1,959)	470
Net cash provided by operating activities	28,767	21,844
INVESTING ACTIVITIES:
Purchases of property and equipment	(26,776)	(24,499)
Purchase of business, net of cash acquired	0	(833)
Proceeds from sale of spine assets	4,000	0
Proceeds from sale of property and equipment	0	120
Investment in note receivable	(1,500)	0
Purchase of intangible assets	150	25
Net cash used in investing activities	(24,426)	(25,237)
FINANCING ACTIVITIES:
Net (repayments) borrowings on line of credit	(6,000)	4,000
Payments of contingency consideration	(2,589)	(669)
Payments on capital leases	(10)	(32)
Repurchase of common stock	0	(3,042)
Proceeds from issuance of common stock	2,121	3,014
Net cash used in financing activities	(6,478)	3,271
Effect of foreign currency translation on cash and cash equivalents	803	22
Cash and cash equivalents held for sale	0	0
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(1,334)	(100)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	13,052	12,713
CASH AND CASH EQUIVALENTS, END OF PERIOD	11,718	12,613
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest	461	417
Income taxes	1,967	6,816
Non-cash investing and financing activities:
Capitalized lease additions	0	29
Purchase of equipment payable	483	434
Business combination, contingency payable	$ 1,785	$ 2,377

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 11,718	$ 13,052
Accounts receivable, net of allowances of $2,043 and $1,473	56,940	53,051
Prepaid expenses and other assets, net	3,585	3,075
Income taxes receivable	895	2,140
Inventories - current	69,885	65,264
Assets held for sale	0	6,477
Total current assets	143,023	143,059
PROPERTY AND EQUIPMENT:
Land	4,550	4,474
Machinery and equipment	45,622	42,034
Surgical instruments	146,827	132,134
Furniture and fixtures	4,715	4,700
Facilities	23,062	21,726
Projects in process	6,739	2,473
Total property and equipment	231,515	207,541
Accumulated depreciation	(111,434)	(100,234)
Net property and equipment	120,081	107,307
OTHER ASSETS:
Deferred financing and other non-current assets, net	4,416	968
Equity investment	1,916	2,047
Deferred tax assets	0	887
Non-current inventories	12,799	15,723
Goodwill	14,860	13,819
Total other assets	44,101	43,843
TOTAL ASSETS	307,205	294,209
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	18,338	17,566
Income taxes payable	568	780
Accrued expenses and other liabilities	13,547	11,832
Other current liabilities	2,616	2,927
Total current liabilities	35,069	33,105
LONG-TERM LIABILITIES:
Deferred tax liabilities	4,181	1,773
Line of credit	14,000	20,000
Other long-term liabilities	3,653	5,089
Total long-term liabilities	21,834	26,862
Total liabilities	56,903	59,967
SHAREHOLDERS' EQUITY:
Common stock	145	144
Additional paid-in capital	91,051	87,319
Treasury stock	(3,042)	(3,042)
Accumulated other comprehensive loss	(8,561)	(8,611)
Retained earnings	170,709	158,432
Total shareholders' equity	250,302	234,242
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	307,205	294,209
Product licenses and designs
OTHER ASSETS:
Finite lived intangible assets, net	8,994	9,102
Patents and trademarks
OTHER ASSETS:
Finite lived intangible assets, net	664	821
Customer relationships
OTHER ASSETS:
Finite lived intangible assets, net	$ 452	$ 476