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AGA Medical Reports Strong 2009 Fourth Quarter and Full Year Financial Results
Company Reports Record Net
Sales of $54.2 Million, 28% Increase over Q4 2008;
EBITDA of $12.3 Million, 41% Growth over Q4 2008
Conference Call Scheduled for 8 a.m. ET Today
MINNEAPOLIS, Feb. 16, 2010 AGA Medical Holdings (NASDAQ: AGAM), a leading developer of interventional medical devices for the minimally invasive treatment of structural heart defects and vascular abnormalities, today reported financial results for the fourth quarter and full year ended Dec. 31, 2009.
Financial Results for Fourth Quarter 2009 vs. Fourth Quarter 2008
Net sales for the fourth quarter of 2009 were $54.2 million, a 28% increase over $42.4 million for the fourth quarter of 2008. On a constant currency basis, net sales grew 25% year over year.
John Barr, President and Chief Executive Officer of AGA Medical, commented, As our first full quarter as a public company, we are pleased to report that the fourth quarter was the strongest sales quarter in AGAs history. Clearly, we are seeing the benefit of our investment in our sales channels with balanced growth across all geographies. In addition, our vascular business grew substantially, led by the European launch of our AMPLATZER Vascular Plug 4, which was a strong contributor to our highly successful quarter.
Gross margins for the fourth quarter of 2009 were 85.9% compared to 82.3% in the prior year period. The increase in gross margin was due to higher average selling prices which were in part due to the distributor to direct conversions completed last year, as well as continued improvement in manufacturing efficiencies. In the prior year period, gross margins were unfavorably impacted as the company amortized the excess cost of inventory repurchased from distributors in territories that AGA Medical converted to direct distribution in 2008. Excluding this charge, gross margins would have been 84.5% in the prior quarter.
Total operating expenses for the fourth quarter of 2009 were $42.4 million, compared to $31.1 million in the fourth quarter of 2008. The expense increase was due to higher selling, general and administrative expenses of $8.8 million related primarily to the conversion of distributors that was largely completed in January 2009. In addition, expenses included investments made to expand the companys U.S. sales force and some incremental investment in corporate infrastructure. Legal fees associated with ongoing patent litigation were approximately $2.0 million in the quarter. In addition, R&D spending increased by approximately $1.3 million due to a continued investment in the companys R&D pipeline, which includes its clinical trials.
AGA Medical Corporation
888.546.4407 Toll Free
5050 Nathan Lane North · Plymouth, Minnesota 55442 USA
The following information was filed by Aga Medical Holdings, Inc. on Tuesday, February 16, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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