Exhibit 99.1

 

Investor Contact: Stewart A. Fisher		Media Contact Information: Nanette Pietroforte
EVP and CFO		FischerHealth, Inc.
(610) 409-2225		(310) 577-7870, ext. 161
stewart.fisher@accellent.com		npietroforte@fischerhealth.com

 

For Immediate Release

 

Accellent Inc. Announces Fourth Quarter 2005 Financial Results

 

Wilmington, MA. (March 8, 2006)

– Accellent Inc. (the “Company”), a wholly owned subsidiary of  Accellent Holdings Corp. (“Accellent”), announced strong results for the three and twelve months ended December 31, 2005, reflecting contributions from its acquisition of MedSource Technologies, Inc. (“MedSource”) on June 30, 2004  and continued organic growth.

 

KKR acquisition of Accellent

 

As previously disclosed, on November 22, 2005, affiliates of Kohlberg Kravis Roberts & Co. L.P. (“KKR”) and Bain Capital (“Bain”) completed the acquisition of the Company in a transaction valued at approximately $1.27 billion. As part of the transaction, members of Accellent management partnered with KKR and Bain by retaining an equity stake in Accellent. The acquisition resulted in several large expenses for merger-related costs, debt prepayment penalties, stock compensation, accelerated interest expense and purchase accounting for inventory. The Company’s results excluding these unusual items can be derived from the tables reconciling net income (loss) to EBITDA to adjusted EBITDA(1).

 

Recent Acquisitions

 

As previously announced, the Company completed two acquisitions in the later part of 2005 focused on the growing spine and knee replacement segments of the orthopaedic industry (“2005 acquisitions”). On September 12, 2005 the Company acquired substantially all of the assets of Campbell Engineering, Inc. (“Campbell”) and on October 6, 2005 the Company acquired Machining Technology Group, LLC (“MTG”). The 2005 acquisitions strengthen the Company’s ability to supply a full range of innovative design, quick-turn development, engineering services, component production, and device assembly to its orthopaedic customers. The results from the acquisitions are included in the Company’s historical results from the date of acquisition.

 

Historical Financial Results

 

Fourth Quarter Financial Results

 

Net sales for the fourth quarter of 2005 increased 12.3% to $120.9 million compared with $107.7 million in the corresponding period of 2004. The net loss for the fourth quarter of 2005 was $(116.7) million compared to net income in the corresponding period of 2004 of $0.8 million. The net loss for the fourth quarter of 2005 includes merger related costs of $47.9 million, debt prepayment penalties of $29.9 million, write-offs of deferred financing costs of $14.4 million, $2.4 million of bridge loan expenses, stock based compensation charges of $13.1 million, inventory step charges related to acquisitions of $10.8 million, in-process R&D write-offs of $8.0 million, and restructuring and other expenses of $0.6 million.

 

Adjusted EBITDA(1) for the fourth quarter of 2005 increased 30.2% to $26.2 million compared to $20.2 million in the corresponding period of 2004. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided in the financial statements accompanying this press release.

 

 

 

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