WRIGHT MEDICAL GROUP INC

CIK:0001137861|SEC Filings

Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

Net sales

$ 80,420

$ 72,364

$ 158,354

$ 143,426

Cost of sales

21,635

^[1]

20,006

^[1]

40,760

37,423

Gross profit

58,785

52,358

117,594

106,003

Operating expenses:

Selling, general and administrative

82,605

^[1]

72,055

^[1]

164,804

140,703

Research and development

7,957

^[1]

6,799

^[1]

15,074

12,655

Amortization of intangible assets

2,565

2,675

5,179

4,862

Total operating expenses

93,127

81,529

185,057

158,220

Operating (loss) income

(34,342)

(29,171)

(67,463)

(52,217)

Interest Expense Income, Net

10,959

4,172

18,608

8,308

Other (income) expense, net

(8,153)

18,270

(2,841)

33,556

Loss from continuing operations before income taxes

(37,148)

(51,613)

(83,230)

(94,081)

Benefit for income taxes

158

1,970

324

(10,200)

Loss from Continuing Operations Attributable to Parent

(37,306)

(53,583)

(83,554)

(83,881)

(Loss) Income from Discontinued Operations, Net of Tax, Attributable to Parent

(7,009)

(2,643)

(10,509)

(2,765)

Net (loss) income

$ (44,315)

$ (56,226)

$ (94,063)

$ (86,646)

Net (loss) income per share (Note 11):

(Loss) income from Continuing Operations, Per Basic Share

$ (0.73)

$ (1.08)

$ (1.64)

$ (1.71)

(Loss) income from Continuing Operations, Per Diluted Share

(0.73)

(1.08)

(1.64)

(1.71)

Basic (in dollars per share)

(0.87)

(1.13)

(1.85)

(1.76)

Diluted (in dollars per share)

$ (0.87)

$ (1.13)

$ (1.85)

$ (1.76)

Weighted-average number of shares outstanding-basic (in shares)

51,056

49,640

50,963

49,135

Weighted-average number of shares outstanding, diluted (in shares)

51,056

49,640

50,963

49,135

[1]

These line items include the following amounts of non-cash, stock-based compensation expense for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014Cost of sales$8 $77 $11 $188Selling, general and administrative3,046 3,405 5,118 5,409Research and development290 296 552 501

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities:
Net (loss) income	$ (94,063)	$ (86,646)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation	10,698	8,946
Stock-based compensation expense	5,681	6,098
Consolidated Intangible Amortization	5,179	4,862
Amortization of deferred financing costs and debt discounts	12,556	5,397
Write off of Deferred Debt Issuance Cost	(24,746)	0
Deferred income taxes	2	579
Non Cash Adjustment Derivative Fair Value	(7,370)	1,000
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax	0	(24,277)
Mark-to-market adjustment for CVRs (Note 1)	(21,863)	32,794
Other	2,302	1,475
Changes in assets and liabilities (net of acquisitions):
Accounts receivable	4,686	(5,553)
Inventories	(22,099)	(5,361)
Prepaid expenses and other assets	1,912	(2,384)
Accounts payable	6,609	10,699
Accrued expenses and other liabilities	20,024	781
Net cash provided by operating activities	(51,000)	(51,590)
Investing activities:
Capital expenditures	(25,754)	(24,284)
Acquisition of businesses (Note 2)	0	(81,326)
Purchase of intangible assets	(82)	(1,289)
Sales and maturities of available-for-sale marketable securities	2,566	7,245
Proceeds from Divestiture of Businesses	0	274,687
Net cash used in investing activities	(23,270)	175,033
Financing activities:
Issuance of common stock	1,871	15,330
Proceeds from Issuance of Warrants	86,400	0
Derivative, Cost of Hedge	(144,843)
Payments for Repurchase of Warrants	(59,803)	0
Settlement of 2017 Notes Conversion Derivative	(49,152)	0
Proceeds from Hedge, Financing Activities	69,764	0
Proceeds from Convertible Debt	632,500	0
Repayments of Convertible Debt	(240,000)	0
Payments of deferred financing and equity issuance costs	(20,081)	0
Payments of capital leases	(398)	(79)
Net cash provided by (used in) financing activities	276,258	15,251
Effect of exchange rates on cash and cash equivalents	(1,449)	525
Net increase in cash and cash equivalents	200,539	139,219
Consolidated Cash and Equivalents, beginning of period	227,326	168,735
Consolidated Cash and Equivalents, end of period	427,865	$ 307,954
2017 Notes Conversion Derivative [Member]
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Write off of Deferred Debt Issuance Cost	$ (24,700)

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 427,865	$ 227,326
Marketable securities	0	2,575
Accounts receivable, net	51,135	57,190
Inventories	110,184	88,412
Prepaid expenses	8,940	11,161
Deferred income taxes	4,560	3,437
Other current assets	53,978	50,355
Total current assets	656,662	440,456
Property, plant and equipment, net	120,583	104,235
Goodwill	186,748	190,966
Intangible assets, net	62,755	69,025
Deferred income taxes	752	815
Other assets	144,318	87,179
Total assets	1,171,818	892,676
Current liabilities:
Accounts payable	23,075	16,729
Accrued expenses and other current liabilities	184,337	170,204
Current portion of long-term obligations	684	718
Total current liabilities	208,096	187,651
Long-term debt and capital lease obligations	559,022	280,612
Deferred income taxes	12,700	11,566
Other liabilities	180,819	134,044
Total liabilities	$ 960,637	$ 613,873
Commitments and contingencies (Note 12)
Stockholders' equity:
Common stock, $.01 par value, authorized: 100,000,000 shares; issued and outstanding: 49,888,296 shares at March 31, 2014 and 47,993,765 shares at December 31, 2013	$ 511	$ 509
Additional paid-in capital	783,212	751,061
Accumulated other comprehensive income	(3,314)	2,398
Retained earnings	(569,228)	(475,165)
Total stockholders' equity	211,181	278,803
Total liabilities and stockholders' equity	$ 1,171,818	$ 892,676