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Kinetic Concepts 3Q profit rose 17 pct to 23 pct

Mon, 10/10/2011 - 2:45pm
The Associated Press

Kinetic Concepts Inc. on Monday reported preliminary third-quarter results that showed the medical technology company's net income rose between 17 percent and 23 percent over last year while revenue rose 4 percent to 5 percent over last year.

The results come as the San Antonio-based company is trying to raise more than $2 billion as it's being taken private. The company said it released its partial numbers early to give prospective investors more information about its financial health.

Shares were unchanged in extended trading. The stock ended regular trading up 64 cents to $67.50.

Net income rose 17 percent to 23 percent to $89 million to $93 million, from $75.8 million in the year-ago period.

Excluding certain items, the company earned $104.1 million to $108.1 million, an increase of 21 percent to 25 percent over the $86.3 million the company earned in the year-ago period.

The company did not provide per-share figures.

Revenue rose 4 percent to 5 percent to $529 million to $533 million, from $506.7 million in the year-ago period. Analysts polled by FactSet expected $526.3 million.

Kinetic Concepts is selling itself to a group of investors for $4.98 billion. The bid from Apax Partners, the Canada Pension Plan Investment Board and the Public Sector Pension Investment Board values Kinetic Concepts at $68.50 per share. That is a premium of 16.5 percent over the price of Kinetic Concepts stock on July 5, the day before speculation about a deal drove up the stock price.

The deal also includes $1.3 billion in debt.

Last week, Kinetic Concepts announced that it was seeking to sell a total of $2.55 billion in senior debt notes that will come due in 2019, a fundraising move that's part of the sale of the company.

A Kinetic Concepts representative did not immediately return an email seeking comment.

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