DJO Global’s Q2 losses soar on refi expenses

Second-quarter losses soared more than 206% for DJO Global on a $68.0 million charge related to a debt refinancing, as the strong dollar pushed sales down -1%.

DJO’s losses grew 206.6% to -$78.0 million on sales of $310.8 million for the 3 months ended June 27. Excluding the $14.0 million effect of foreign exchange rates, sales grew 3.5% compared with Q2 2014, DJO said.

Adjusted to excluded 1-time items like the refi charge, earnings before interest, taxes, debt and amortization were $73.7 million, up 5.0% over the same period last year.

“We are pleased to report strong top and bottom line performance, in line with expectations,” president & CEO Mike Mogul said in prepared remarks. “I want to especially highlight the launch of DonJoy Performance in the consumer sports channel, the first time the world’s leading sports medicine products have been available to consumers. That launch coupled with strong organic sales growth and solid margin enhancement delivered a very good quarter in Q2.

“We are reconfirming our 2015 guidance of mid-single-digit revenue growth and updating adjusted EBITDA growth rates to high single digits. Based on current foreign currency rates, we expect sales and adjusted EBITDA for the full year of 2015 to be negatively impacted by approximately 400-500bps,” Mogul added. “We continue to be very optimistic about the new products that we have and are launching in 2015, as well as the building momentum of providing MotionCare products in order to keep arthritis sufferers moving. We also completed the acquisition of Cobalt bone cement and the Discovery elbow, both products which will enhance our already industry leading orthopedic implant growth.”

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