Symmetry Medical products and services extend into medical device markets such as orthopedic spinal trauma dental cardiovascular ophthalmology etc. They offer trusted brands Jet Othy PolyVac Thornton and UltreXX. Symmetry Medical Inc. has a market cap of $301.1 million; its shares were traded at around $8.41 with a P/E ratio of 12.6 and P/S ratio of 0.7.
Highlight of Business Operations:The $0.5 million decrease in revenue resulted from unfavorable foreign currency exchange rate fluctuations of $7.4 million mostly offset by increased volume within our instrument and implant product lines. Instrument revenue increased $7.2 million. This increase was driven by an increase in organic customer demand of $5.9 million due to the continuation of several large projects for our top customers. In addition, 2009 instrument revenue increased $2.2 million from our New Bedford acquisition which was completed at the end of January 2008. Foreign currency exchange rate fluctuations partially offset the increases in instrument revenues as they had an unfavorable impact of $0.9 million. Implant revenue decreased $1.2 million driven by unfavorable foreign currency exchange rate fluctuations of $2.9 million, mostly offset by organic growth of $1.2 million and the additional sales from our New Bedford acquisition of $0.5 million. Case revenue decreased $3.0 million due to a $2.2 million decrease in customer demand from our non-orthopedic medical customers as they react to the current economic environment and $0.8 million of unfavorable foreign currency exchange rate fluctuations. Other product revenue decreased $3.5 million primarily driven by unfavorable foreign currency exchange rate fluctuations of $2.8 million and a reduction in customer demand of $0.6 million.
Gross Profit. Gross profit for the three month period ended April 4, 2009 increased $0.6 million, or 2.6%, to $24.6 million from $23.9 million for the comparable 2008 period. Gross margin as a percentage of revenue for the first quarter 2009 was 24.2% compared to 23.5% in the same period last year. This increase was primarily driven by an increased number of large volume projects from our top customers, which resulted in decreased overhead costs as a percentage of revenue as well as more favorable product mix.
Selling, General and Administrative Expenses. For the three month period ended April 4, 2009, selling, general and administrative expenses (“SG&A”) were $13.4 million compared with the three month period ended March 29, 2008 of $14.4 million. The decrease was primarily driven by a reduction in professional fees and expenses incurred in first quarter 2008 of $2.2 million from the review of accounting irregularities at our Sheffield, UK operating unit, partially offset by an increase in non-cash, stock based compensation expense of $0.6 and the additional costs incurred at New Bedford, which was acquired at the end of January 2008.
Other (Income) Expense. Interest expense for the three month period ended April 4, 2009 decreased $0.9 million, or 32.6%, to $1.8 million from $2.7 million for the comparable period in 2008. This decrease reflects the reduction in our interest rate margin above LIBOR due to improved financial ratios, as well as the general decline in the interest rate market in the first quarter 2009 as compared to 2008. The net derivatives gain in first quarter 2009 consists of a gain on interest rate swap valuation of $394 related to our interest rate swap that has not been designated as a hedge under SFAS 133 as compared to a loss of $1.3 million for the comparable period in 2008. The interest rate swaps are used to convert our variable rate long-term debt to fixed rates. During 2008, the Corporation also held foreign currency forwards to mitigate fluctuations in foreign currency on the statement of operations. The gain of the foreign currency valuation for fiscal 2008 offset losses on foreign currency fluctuations that were included within other expense.
Operating Activities Operating activities generated cash of $9.5 million in the three month period ended April 4, 2009 compared to a use of $8.5 million for the three month period ended March 29, 2008, an increase of $17.9 million. Net cash provided by working capital for the three month period ended April 4, 2009 was $15.2 million higher than the comparable 2008 period. In addition to this improvement in the net change in working capital, net income, adjusted for non-cash items, increased $2.7 million.
As of April 4, 2009, we had an aggregate of $135.6 million of outstanding indebtedness, which consisted of $102.3 million of term loan borrowings outstanding under our Senior Credit Agreement, $26.0 million of borrowings outstanding under our revolving credit facility, $2.8 million of borrowings under our UK short-term credit facility, $0.5 million of borrowings under our Malaysia short-term credit facility, and $4.0 million of capital lease obligations. We had one outstanding letter of credit as of April 4, 2009 for $2.5 million.
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