Orthofix Announces Preliminary Net Sales Estimates For 2014

(RTTNews) - Orthofix International N.V. (OFIX) announced that it expects its full year 2014 net sales to be in a range of approximately $397 million and $401 million.

The company also announced that it expects its full year 2013 net sales to be approximately $397 million after giving effect to estimated restatement adjustments.

As of December 31, 2014, the Company had approximately $71 million in cash and restricted cash and no outstanding debt under its credit facility.

The Company said it is continuing to prepare restated financial statements for the fiscal years ended December 31, 2013, 2012 and 2011 and the fiscal quarter ended March 31, 2014.

As previously disclosed, the Company has recently been completing procedures to physically count its inventory on consignment with distributors and hospitals. These additional counting procedures have been materially completed, and the Company is re-evaluating its historical reserve estimates for "excess and obsolete" (E&O) inventory based in part on this additional count data, as well as other hindsight-derived information.

The Company believes this process will enable it to calculate historical E&O inventory reserve information in a more precise and accurate manner. However, it is expected that this process will take additional time to complete.

The Company had previously sought and obtained a limited waiver under its credit agreement, as well an extension from a Nasdaq Hearings Panel, to complete the restatement process and make the Amended Filings and Late Filings. In each case, the Company sought and obtained relief through January 15, 2015.

At this time, the Company is seeking an additional extension from both its credit agreement lenders and the Nasdaq Hearings Panel to permit additional time to complete the Amended Filings and Late Filings. The Company's current objective is to complete all of these filings as soon as practicable, but no later than February 27, 2015.