EX-99.1 2 sm3993ex991.txt EXHIBIT 99.1 Exhibit 99.1 SYMMETRY MEDICAL REPORTS THIRD QUARTER RESULTS Highlights: * Revenue increased to $67.2 million, up 24.2% over third quarter 2004 * Net income increased to $8.2 million, or $0.24 per diluted share over third quarter 2004 * Completed an equity offering of 11.0 million secondary shares and 0.5 million primary shares, doubling shares available for trading * Initiated construction of previously announced 30,000 square foot Design & Development Center (DDC) in Warsaw, IN * In October, relocated Symmetry Medical Cheltenham in the UK , to a larger 25,000 square foot facility WARSAW, Ind., Nov. 2 /PRNewswire-FirstCall/ -- Symmetry Medical Inc. (NYSE: SMA), an independent provider of products to the global orthopedic device industry, announced today third quarter 2005 financial results for the period ended October 1, 2005. The Company reported third quarter 2005 revenue of $67.2 million, a 24.2% increase over revenue of $54.1 million for the third quarter of 2004. Gross profit for the third quarter of 2005 was $19.7 million, a 23.1% increase over gross profit of $16.0 million for the third quarter of 2004. Gross margin for the third quarter was 29.4%, compared to a gross margin of 29.6% for the third quarter 2004. Operating income for the third quarter of 2005 was $12.3 million, an 18.2% increase over operating income of $10.4 million for the third quarter of 2004. Operating margin for the third quarter was 18.3%, compared to an operating margin of 19.2% for the third quarter 2004. The variance in operating margin reflects increased third quarter 2005 selling, general and administrative expense related to tax consulting services that have resulted in significant tax benefits, and additional fees and expenses related to Sarbanes-Oxley compliance. The combination of these items resulted in an expense of $0.5 million in the third quarter. Income before income taxes for the third quarter of 2005 was $10.8 million, a 60.6% increase over the $6.7 million for the third quarter of 2004. The Company's third quarter 2005 earnings were reduced by $0.02 per diluted share, attributed to the expense associated with the completion of the secondary offering in July 2005, and were increased by $0.03 per diluted share largely from a cumulative research and development tax credit obtained in the third quarter. Net income applicable to common shareholders was $8.2 million, or $0.24 per diluted share, compared to net income applicable to common shareholders of $2.0 million, or $0.12 per diluted share, for the quarter ended October 2, 2004. The weighted average number of diluted shares outstanding during the third quarter of 2005 was 34,987,000, which include the impact of 500,000 primary common shares issued in July 2005. During the third quarter, Symmetry Medical initiated construction of its previously announced 30,000 square foot Design & Development Center (DDC) in Warsaw, IN. The Company estimates that total cost for the facility will be approximately $2.5 million. In October, Symmetry Medical Cheltenham Ltd. relocated to a larger 25,000 square foot facility more than doubling the size of the Company's operation devoted to its European design and development services and instrument business. Brian Moore, President and Chief Executive Officer, stated, "We are pleased with our third quarter results, given the seasonal impact of the summer months on the orthopedic business. With the opening of the Cheltenham facility and the ongoing construction of the DDC in Warsaw, we are positioned to expand globally and to meet the demands of our orthopedic customers." Financial Guidance The following statements are based on current market conditions and foreign currency comparisons. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of new business or license agreements the Company may enter in future periods. The factors discussed above are not intended to be an exhaustive list of the factors that may affect our future performance. For the total year 2005, the Company has increased its full year revenue guidance to be in the range of $258 million to $261 million. The company currently expects full year 2005 earnings per diluted share in the range of $0.90 to $0.92, which includes one-time charges of $0.02 per share in connection with the Company's secondary offering completed in July 2005. This guidance also includes additional expenses related to Sarbanes-Oxley compliance. Conference Call Symmetry Medical will host a conference call at 10:30 a.m. ET on Thursday, November 3, 2005, to discuss its third quarter results. A live Web cast of the conference call will be available online from the investor relations page of the Company's corporate Web site at http://www.symmetrymedical.com. The dial-in numbers are (800) 510-0178 for domestic callers and (617) 614-3450 for international callers. The reservation number for both is 81537433. After the live Web cast, the call will remain available on Symmetry's Web site through December 1, 2005. In addition, a telephonic replay of the call will be available until November 20, 2005. The replay dial-in numbers are (888) 286-8010 for domestic callers and (617) 801-6888 for international callers. Please use reservation code 23944392. About Symmetry Medical Inc. Symmetry Medical Inc. is an independent provider of implants and related instruments and cases to the orthopedic device industry. The Company also designs, develops and produces these products for companies in other segments of the medical device market, including dental, osteobiologic and endoscopy sectors and provides limited specialized products and services to non-healthcare markets, such as the aerospace market. Statements in this press release regarding Symmetry Medical Inc.'s business, which are not historical facts may be "forward-looking statements" that involve risks and uncertainties. Forward-looking statements frequently are identified by the use of terms such as "may," "will," "should," "expect," "believe," "estimate," "intend" and similar words indicating possible future events or actions. Actual results could differ materially from those projected, implied or anticipated by our forward-looking statements. Certain factors that could cause actual results to differ include: the loss of one or more customers; the development of new products or product innovations by our competitors; product liability; changes in management; changes in conditions affecting the economy, orthopedic device manufacturers or the medical device industry generally; and changes in government regulation of medical devices and third-party reimbursement practices. For a discussion of these and other risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's prospectus filed on July 19, 200, as well as the Company's other filings with the Securities and Exchange Commission which are available on the SEC's website at http://www.sec.gov. All forward-looking statements are qualified in their entirety by this cautionary statement, and Symmetry Medical Inc. undertakes no obligation to revise or update this news release to reflect events or circumstances after the date hereof. Investors/Media: Contact: The Ruth Group Symmetry Medical Inc. Stephanie Carrington/Jason Rando Andrew Miclot 646-536-7017/7025 Senior Vice President scarrington@theruthgroup.com Marketing, Sales & Business Development jrando@theruthgroup.com Investor Relations Officer 574-269-7390 ext. 1002 Selected Financial Information Symmetry Medical Inc. Condensed Consolidated Balance Sheets (In Thousands, Except Per Share Data) October 1, January 1, 2005 2005 ------------ ------------ (unaudited) Assets: Current Assets: Cash and cash equivalents $ 15,475 $ 4,849 Accounts receivables, net 44,292 39,640 Inventories 35,663 34,083 Refundable income taxes 1,016 2,578 Deferred income taxes 2,106 2,036 Other current assets 3,013 5,635 Total current assets 101,565 88,821 Property and equipment, net 91,499 71,854 Interest rate swap valuation asset 658 486 Goodwill 125,260 127,369 Intangible assets, net of accumulated amortization 16,577 17,327 Other assets 899 1,011 Total Assets $ 336,458 $ 306,868 Liabilities and Shareholders' Equity: Current Liabilities: Accounts payable $ 19,373 $ 17,908 Accrued wages and benefits 9,925 9,384 Other accrued expenses 2,945 3,012 Income tax payable 2,173 2,008 Revolving line of credit 3,265 1,204 Current portion of capital lease obligations 3,259 3,572 Current portion of long-term debt 1,313 879 Total current liabilities 42,253 37,967 Deferred income taxes 9,925 9,547 Capital lease obligations, less current portion 9,141 11,709 Long-term debt, less current portion 27,563 31,500 Total Liabilities 88,882 90,723 Commitments and contingencies (Note 10) Shareholders' Equity: Common Stock, $.0001 par value; 72,410 shares authorized; shares issued (October 1, 2005--34,684; January 1, 2005--33,174) 3 3 Additional paid-in capital 268,487 255,509 Retained earnings (deficit) (24,671) (49,178) Accumulated other comprehensive income 3,757 9,811 Total Shareholders' Equity 247,576 216,145 Total Liabilities and Shareholders' Equity $ 336,458 $ 306,868 Symmetry Medical Inc. Condensed Consolidated Statements of Operations (In Thousands, Except Per Share Data)

Three Months Ended Nine Months Ended ---------------------------- ---------------------------- October 1, October 2, October 1, October 2, 2005 2004 2005 2004 ------------ ------------ ------------ ------------ (unaudited) (unaudited) (unaudited) (unaudited) Revenue $ 67,228 $ 54,126 $ 201,165 $ 153,053 Cost of Revenue 47,486 38,087 140,593 108,363 Gross Profit 19,742 16,039 60,572 44,690 Selling, general, and administrative expenses 7,455 5,647 21,157 16,975 Operating Income 12,287 10,392 39,415 27,715 Other (income) expense: Interest expense 635 3,688 2,347 10,852 Interest rate swap valuation (65) (24) (172) (809) Other 927 9 1,811 (230) Income before income taxes 10,790 6,719 35,429 17,902 Income tax expense 2,567 2,285 10,922 6,108 Net income 8,223 4,434 24,507 11,794 Preferred stock dividends - 2,409 - 7,069 Net income applicable to common shareholders $ 8,223 $ 2,025 $ 24,507 $ 4,725 Net income applicable to common shareholders per share: Basic $ 0.24 $ 0.13 $ 0.73 $ 0.30 Diluted $ 0.24 $ 0.12 $ 0.71 $ 0.28 Weighted average common shares and equivalent shares outstanding: Basic 34,310 15,789 33,575 15,789 Diluted 34,987 16,612 34,526 16,605

Symmetry Medical Inc. Condensed Consolidated Statements of Cash Flows (In Thousands) Nine Months Ended ---------------------------- October 1, October 2, 2005 2004 ------------ ------------ (unaudited) (unaudited) Operating activities Net Income $ 24,507 $ 11,794 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation 9,504 7,711 Amortization 456 456 (Gain) loss from sale of assets 71 20 Deferred income tax provision 374 (64) Income tax benefits from exercise of stock options 1,199 - Interest rate swap valuation change (172) (809) Change in operating assets and liabilities: Accounts receivable (6,449) (6,115) Other assets 2,212 (2,209) Inventories (2,761) (3,357) Accounts payable 2,441 5,607 Accrued expenses and other 3,173 3,534 Net cash provided by operating activities 34,555 16,568 Investing activities Purchases of property and equipment (31,354) (13,619) Net cash used in investing activities (31,354) (13,619) Financing activities Proceeds from bank revolver 37,065 47,580 Payments on bank revolver (34,695) (45,311) Payments on long-term debt and capital lease obligations (6,452) (5,591) Proceeds from the issuance of common stock 11,707 - Payments for redemption of common and preferred stock - (37) Net cash provided by financing activities 7,625 (3,359) Effect of exchange rate changes on cash (200) 42 Net increase (decrease) in cash and cash equivalents 10,626 (368) Cash and cash equivalents at beginning of period 4,849 2,348 Cash and cash equivalents at end of period $ 15,475 $ 1,980 Supplemental disclosures: Cash paid for interest $ 1,837 $ 9,785 Cash paid for income taxes $ 6,964 $ 2,843 Assets acquired under capital leases $ 283 $ 3,911 SOURCE Symmetry Medical Inc. -0- 11/02/2005 /CONTACT: Investors-Media: Stephanie Carrington, +1-646-536-7017, scarrington@theruthgroup.com, or Jason Rando, +1-646-536-7025, jrando@theruthgroup.com, both of The Ruth Group; or Andrew Miclot, Senior Vice President, Marketing, Sales & Business Development, Investor Relations Officer of Symmetry Medical Inc., +1-574-269-7390 ext. 1002/ /Web site: http://www.symmetrymedical.com /