Wright Medical Group Inc. Tuesday, May 1, reported its adjusted net income declined 9 percent to $8.6 million for the first quarter of 2012 from $9.4 million in Q1 2011, while diluted earnings per share, as adjusted, decreased 8 percent to $0.22 in Q1 from $0.24 in Q1 2011.
The Arlington-based orthopedic medical device maker reported net income of $4.6 million, or $0.12 per diluted share, compared to net income of $3.6 million or $0.09 per diluted share in the first quarter of 2011.
But Q1 net income included after-tax effects of $2.9 million of expenses associated with the company’s deferred prosecution agreement; $2.4 million of non-cash, stock-based compensation expense; and $0.9 million of charges associated with the company’s previously announced cost restructuring plan.
The company reported its $126.7 million in net sales during the first quarter represented a 6 percent decrease compared to Q1 2011, the result of previously announced distributor changes and challenges associated with enhancements to the company’s compliance processes.
Wright Medical president and CEO Robert Palmisano said that, for the period ended March 31, the company “made significant progress on implementing the important changes that we outlined on our last earnings call to transform our business and deliver significant shareholder return. Specifically, we delivered a solid start to 2012 with our first quarter results.”
Wright Medical reported its Q1 foot and ankle net sales grew 11 percent globally and 9 percent domestically. Growth factors included new product launches, increased medical education programs, and strong performance in international business.
Palmisano said a top priority for Wright Medical is to generate cash, and the company saw a strong, free cash flow performance in Q1.