Wound care sales lift Kinetic Concepts 1Q profit
Kinetic Concepts posted a 30 percent jump in first-quarter net income Tuesday, citing healthy sales in wound-care technology.
Revenue from low-pressure wound care products and other active healing solutions products rose 2 percent to $340.5 million. Sales of LifeCell tissue repair products rose 18 percent to $93 million, while revenue from therapeutic support systems fell 8 percent to $67.6 million.
Sales in the Americas and the Asia-Pacific region improved, though sales from Europe, the Middle East and Africa declined, the medical technology company said.
Net income rose to $68.4 million, or 94 cents per share, from $52.7 million, or 74 cents per share one year ago. Excluding one-time acquisition and debt refinancing costs, Kinetic Concepts said it earned $1.11 per share. Revenue rose 3 percent, to $501.2 million from $485.8 million.
However, excluding one-time costs associated with non-cash acquisitions and refinancing, per-share earns were $1.11, exceeding Wall Street expectations of a dollar per share, according to analysts polled by FactSet.
Revenue easily topped analyst expectations of $493.6 million.
Kinetic Concepts said its sales revenue grew 8 percent to $222.5 million, and rental revenue edged down to $278.7 million from $280 million. The company said interest costs decreased, and it reported lower research and development and acquisition expenses.
Kinetic Concepts Inc. maintained its 2011 profit forecast of $4.95 to $5.08 per share, excluding one-time items like amortization costs and debt and restructuring costs. It is forecasting $2.05 billion to $2.09 billion in revenue. On average analysts expect the company to earn $4.60 per share on revenue of $2.08 billion.