Biomet announced ist results for its third quarter ended February 28, 2015. Consolidated net sales decreased 2.6% to $800.9 million worldwide, compared to net sales of $822.5 million during Q3 2014.
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Excluding the effect of foreign currency, consolidated net sales increased 1.4% during the third quarter.
U.S. net sales increased 1.1% during the third quarter to $514.8 million, while Europe net sales decreased 12.3% (decreased 0.7% constant currency) to $175.1 million and International (primarily Canada, Latin America and the Asia Pacific region) net sales decreased 2.5% (increased 6.3% 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 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 (EBITDA) 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 February 28, 2015, 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. ■