FOR IMMEDIATE RELEASE
AMERICAN MEDICAL SYSTEMS CONFIRMS FOURTH QUARTER REVENUE AND FINISHES 2008 WITH STRONG OPERATING
PERFORMANCE AND CASH FLOW GENERATION
||2008 revenue surpasses $500 million milestone
||Powerful cash management allows for $120 million pay down of debt in 2008
||Strong fourth quarter operating results
MINNEAPOLIS, February 17, 2009 American Medical Systems Holdings, Inc. (NASDAQ: AMMD) confirmed
revenue of $134.0 million for the fourth quarter of 2008, a 3.0 percent increase over revenue of
$130.0 million in the comparable quarter of 2007. Highlighting the quarter were very strong
performances from the male continence, female continence and prolapse product lines, partially
offset by declines in the capital product lines. The strengthening of the U.S. dollar negatively
affected revenue for the quarter by $3.8 million compared to the fourth quarter of 2007. Adjusting
for the negative impact of the stronger U.S. dollar, fourth quarter revenue grew 5.9 percent over
the same period last year.
Full year 2008 revenue of $501.6 million grew 8.1 percent over 2007 revenue of $463.9 million.
Tony Bihl, Chief Executive Officer, noted, It is exciting to cross the half billion dollar mark,
and to do so with a broad portfolio of well-positioned product lines. We now have four product
lines at or exceeding $100.0 million in annual sales. We experienced continued strong performance
in our implantable product lines, growing 9.4 percent (12.4 percent excluding unfavorable currency
fluctuations) in the fourth quarter, and we are confident that the initiatives we are currently
implementing will turn around our laser therapy business.
The Company reported net income for the fourth quarter of 2008 of $14.6 million, or $0.20 per
share, compared to a net loss in the same period last year of $5.0 million, or $0.07 per share.
Both quarters include significant unusual non-recurring charges that affect comparison between
years. Included in fourth quarter 2008 net income is a $17.1 million charge for accelerated
amortization of certain intangible assets related to our Thermatrx and Greenlight PV product lines
and a $10.1 million gain related to early extinguishment of debt purchased at a discount to face
value. The 2007 fourth quarter net loss includes an in-process research and development (IPRD)
charge of $7.5 million related to a milestone payment to BioControl Medical, Ltd., and $14.3
million in litigation related charges. Excluding these items in both quarters results in a 46
percent increase in adjusted net income of $19.1 million, or $0.26 per share for the fourth quarter
2008, compared to adjusted net income of $13.1 million, or $0.18 per share for the fourth quarter
Mr. Bihl stated, We set out in 2008 to leverage our infrastructure through continued integration
and efficiencies. We have been very successful in achieving that goal and managing our balance
sheet. Accordingly, we drove cash from operations of $115.8 million in 2008 and we were able to
retire a meaningful portion of our debt. In fact, in the fourth quarter alone, we retired $40.7
million of debt, consisting of $6.2 million from the senior secured credit facility and $34.5
million of the convertible notes.