Tornier N.V. reported unaudited consolidated financial results for the first quarter ended March 31, 2013. For the quarter, the company reported revenue reached $82.7 million compared to first quarter 2012 revenue of $74.5 million, an increase of 11.0% as reported and 10.9% in constant currency. Revenue included $8.4 million of revenue from the acquisition of OrthoHelix Surgical Designs Inc., which closed October 4, 2012. Giving pro forma effect to the OrthoHelix acquisition to include OrthoHelix revenue in the prior year period, Tornier's 2013 first quarter constant currency revenue growth was 1.7%, and Tornier's first quarter extremities product constant currency revenue increased 3.6%. The company’s revenue growth during the first quarter was driven by the Ascend shoulder family and strong lower extremities contributions from OrthoHelix. The company's first quarter 2013 adjusted EBITDA was $9.1 million, or 11.0% of reported revenue, compared to $10.2 million, or 13.7% of revenue, in the same quarter of the prior year, a decrease of 10.2%. Operating loss was $4.613 million against operating income of $1.234 million for the same period a year ago. Loss before income taxes was $6.856 million against income before income taxes of $886,000 for the same period a year ago. Consolidated net loss was $6.898 million or $0.17 per basic and diluted share against $176,000 for the same period a year ago. Net cash provided by operating activities was $16.418 million against $8.839 million for the same period a year ago. Purchases of property, plant and equipment was 2.829 million against $1.156 million for the same period a year ago. Non-GAAP adjusted net loss was $4.170 million or $0.10 per basic and diluted share against $176,000 for the same period a year ago. Non-GAAP adjusted free cash flow was $8.710 million against $3.761 million for the same period a year ago. For the second quarter of 2013, the company projects constant currency revenue to be in the range of $76.0 million to $79.0 million, inclusive of anticipated OrthoHelix revenue of $7.4 million to $8.4 million, representing constant currency growth of 15.1% to 19.7% over second quarter 2012 revenue. Based on recent currency exchange rates, second quarter 2013 reported revenue is projected to be in the range of $76.2 million to $79.2 million, inclusive of anticipated OrthoHelix revenue, representing reported growth of 15.5% to 20.0% over second quarter 2012 revenue. The company projects adjusted EBITDA, as described in the GAAP to non-GAAP reconciliation provided later in this release, inclusive of OrthoHelix operations, for the second quarter of 2013 to be in the range of $5.3 million to $6.6 million, or 7.0% to 8.3% of reported revenue. The company is pleased with a solid start to the fiscal year, which positions the well for returning to double-digit, constant currency revenue growth on a pro forma basis during the second half of 2013. The company is reiterating its previous revenue guidance of 2013 constant currency revenue in the range of $310.0 million to $322.0 million, inclusive of anticipated OrthoHelix revenue, representing constant currency growth of 11.7% to 16.0%. Based on recent currency exchange rates, 2013 reported revenue is projected to be in the range of $311.0 million to $323.0 million, inclusive of anticipated OrthoHelix revenue, representing reported growth of 12.0% to 16.4% over 2012 revenue. The company is also reiterating projected 2013 adjusted EBITDA in the range of $33.0 million to $38.0 million, or 10.6% to 11.8% of reported revenue. OrthoHelix is expected to have a slight positive impact on 2013 adjusted EBITDA. Amortization expenses are estimated to be approximately $15.7 million $16.2 million in 2013, compared to $11.7 million in 2012. The company anticipates interest expense for fiscal 2013 to be in the range of $7.5 million to $10.0 million, including anticipated interest accretion charges of $1 million to $1.5 million relating to the contingent consideration for the OrthoHelix acquisition.

Tornier N.V. (NasdaqGS:TRNX) seeks acquisitions. Tornier commenced an underwritten public offering of 7 million ordinary shares. Tornier is offering 4.5 million shares and certain existing shareholders are offering 2.5 million shares. Tornier and the selling shareholders expect to grant the underwriters a 30-day option to purchase up to 1.05 million additional ordinary shares at the public offering price. Tornier plans to use the net proceeds from the sale of the newly issued shares for working capital, repayment and refinancing of debt and general corporate purposes, including clinical and product development, capital expenditures and the acquisition of technologies, products or businesses.

Tornier N.V., Q1 2013 Earnings Call, May 07, 2013