Biomet to buy back 2.5 million shares over 12 months

By Jennifer Chiou

New York, June 30 - Biomet, Inc.'s board of directors agreed to the repurchase of 2.5 million of its common shares, which will be automatically bought back daily in equal increments during the next year.

In March, the board authorized the repurchase of up to $100 million of the company's outstanding stock. About $84 million is now available.

Since December 2001, Biomet has repurchased about 26.4 million shares for $841.6 million.

"The declaration of this dividend is in response to the company's record financial performance during fiscal year 2005 and our anticipated results during fiscal year 2006," president and chief executive officer Dane A. Miller said in a news release.

"The expansion of our stock repurchase program is a reflection of the ongoing poor investment return environment and the company's continued positive net cash flow from operations, which amounted to $411 million during fiscal year 2005."

During the fourth quarter of fiscal year 2005, net sales increased 13% to $503,093,000, while operating income increased 33% to $155,734,000.

The company said reconstructive device, knee, hip, spinal product and extremity sales all increased during the same period.

"We are optimistic about our new product introductions scheduled throughout fiscal year 2006. Consequently, we remain comfortable with the range of analysts' sales and earnings estimates of $482 million to $492 million and $0.39 to $0.41 per share for the first quarter of fiscal year 2006; and $2,047 million to $2,109 million and $1.74 to $1.84 per share for fiscal year 2006," Miller said in the release.

Biomet also announced its board declared a cash dividend of $0.25 per share, payable July 22 to shareholders of record July 15.

Based in Warsaw, Ind., Biomet and its subsidiaries design, manufacture and market products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy.

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