San Diego Business Journal

DJO Global Breaks $1 Billion Sales Threshold for the 1st Time

Monday, February 20, 2012

Annual sales at Vista-based DJO Global Inc. surpassed $1 billion for the first time in 2011, said President and CEO Mike Mogul.

“We are pleased to finish 2011 on a strong note,” Mogul said in a statement. “We saw improved momentum in all of our businesses in the fourth quarter, based on successful new product launches and improved commercial execution.”

The privately held medical device company’s net revenue grew 11.3 percent for the year to just over $1 billion, compared with $966 million in 2010. Sales were boosted by DJO’s 2011 acquisitions of Elastic Therapy Inc., Circle City Medical and Dr. Comfort, the company said Feb. 16.

DJO posted a 2011 net loss of $214.5 million, compared with a much narrower loss of $52.5 million in 2010. It said income was hurt “by significant noncash items, nonrecurring items and other adjustments,” including a fourth-quarter pretax charge of $141 million, to reflect fair value of the company’s goodwill and other intangible assets.

For the fourth quarter, DJO reported a net loss of $148.2 million, compared with $11.4 million at the same time a year ago. That also takes into account the pretax charge.

Meanwhile, quarterly sales at the 5,000-employee company jumped 14 percent to a record level of $284.2 million from $249.8 million at the same time last year.

DJO develops, manufactures and distributes a wide range of medical devices — from soft orthopedic braces to knee replacements. Its brand names include Aircast, DonJoy, ProCare, Empi and Chattanooga.

The company said that all global business units grew by more than 4 percent in the fourth quarter, except its Empi pain control products.

—Kelly Quigley