Biomet, Inc. has announced financial results for its third quarter, which ended Feb. 28.
Consolidated net sales decreased 2.6 percent to $800.9 million worldwide during the third quarter of fiscal year 2015, compared to net sales of $822.5 million during the third quarter of fiscal year 2014. Excluding the effect of foreign currency, consolidated net sales increased 1.4 percent during the third quarter. U.S. net sales increased 1.1 percent during the third quarter to $514.8 million, while Europe net sales decreased 12.3 percent (decreased 0.7 percent constant currency) to $175.1 million and International (primarily Canada, Latin America and the Asia Pacific region) net sales decreased 2.5 percent (increased 6.3 percent constant currency) to $111.0 million. On a consolidated basis, the company had approximately the same number of selling days in the quarter compared to the prior year quarter.
Special items, after tax, totaled $69.0 million during the third quarter of fiscal year 2015, compared to $173.2 million during the third quarter of fiscal year 2014 primarily as a result of decreased litigation costs due to reaching favorable resolution with certain insurance carriers in regards to certain claims.
Reported operating income was $147.6 million during the third quarter of fiscal year 2015, compared to an operating income of $0.2 million during the third quarter of fiscal year 2014. Excluding special items, adjusted operating income totaled $243.4 million during the third quarter of fiscal year 2015, compared to $218.3 million during the prior year period.
Reported net income in the quarter was $48.8 million, compared to a net loss of $65.9 million during the third quarter of the prior year. Excluding special items, adjusted net income totaled $117.8 million during the third quarter of fiscal year 2015, compared to $107.3 million for the third quarter of fiscal year 2014.
Excluding special items, adjusted earnings before interest, taxes, depreciation and amortization during the third quarter of fiscal year 2015 totaled $298.4 million, compared to $271.5 million for the third quarter of fiscal year 2014.
Reported cash flow from operations totaled $158.9 million during the third quarter of fiscal year 2015, compared to reported cash flow from operations of $154.7 million for the third quarter of fiscal year 2014. Free cash flow (operating cash flow minus capital expenditures) was $111.7 million, which included $92.7 million of cash interest paid in the quarter, compared to a free cash flow of $94.4 million during the third quarter of fiscal year 2014, including $100.4 million of cash interest paid.
At Feb. 28, reported gross debt was $5,713.4 million, and cash and cash equivalents totaled $363.2 million, resulting in net debt of $5,350.2 million, compared to reported gross debt of $5,720.4 million, and cash and cash equivalents of $247.6 million, resulting in net debt of $5,472.8 million at May 31, 2014.