Schedule 1—Condensed Financial Information of Registrant Orthofix International N.V.

Condensed Balance Sheets (unaudited)


(U.S. Dollars in thousands)	December 31, 2013		December 31, 2012
			(Restated)
Assets
Current assets:
Cash and cash equivalents	$	1,426	$	7,392
Prepaid expenses and other current assets		670		534

Total current assets		2,096		7,926
Other long term assets		—		15
Investments in and amounts due from subsidiaries and affiliates		322,804		369,204

Total assets	$	324,900	$	377,145

Liabilities and shareholder’s equity
Current liabilities	$	6,295	$	1,202
Long-term liabilities		8,111		8,111
Shareholder’s equity:
Common stock		1,810		1,934
Additional paid in capital		216,653		246,306
Accumulated earnings		89,332		114,847
Accumulated other comprehensive income		2,699		4,745

		310,494		367,832

Total liabilities and shareholder’s equity	$	324,900	$	377,145

See accompanying notes to condensed financial statements.

Orthofix International N.V.

Schedule 1—Condensed Financial Information of Registrant Orthofix International N.V.

Condensed Statements of Operations (unaudited)


(U.S. Dollars in thousands)	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2011
				(Restated)			(Restated)
(Expenses) income:
General and administrative	$	(16,641	)	$	(7,700	)	$	(11,134	)
Equity in earnings of investments in subsidiaries and affiliates		(9,197	)		50,317			(6,296	)
Other, net		323			24			7

(Loss) income before income taxes		(25,515	)		42,641			(17,423	)
Income tax benefit (expense)		—			197			(687	)

Net (loss) income	$	(25,515	)	$	42,838		$	(18,110	)

See accompanying notes to condensed financial statements.

Orthofix International N.V.

Schedule 1—Condensed Financial Information of Registrant Orthofix International N.V.

Condensed Statement of Cash Flows (unaudited)


(U.S. Dollars in thousands)	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2011
				(Restated)			(Restated)
Net income (loss)	$	(25,515	)	$	42,838		$	(18,110	)

Equity in earnings of (loss) investments in subsidiaries and affiliates		9,197			(50,317	)		6,296
Cash used in provided by other operating activities		468			(6,811	)		3,429

Net cash used in operating activities		(15,850	)		(14,290	)		(8,385	)
Cash flows from investing activities:
Distributions and amounts received from subsidiaries		53,389			12,564			5,875
Capital expenditures		—			—			—

Net cash used in provided by investing activities		53,389			12,564			5,875
Cash flows from financing activities:
Net proceeds from issuance of common stock		3,450			25,586			20,113
Repurchase of treasury shares		(39,494	)		—			—
Contributions to subsidiaries and affiliates		(7,543	)		(36,921	)		(2,789	)
Tax benefit on exercise of stock options		82			1,020			1,737

Net cash provided by financing activities		(43,505	)		(10,315	)		19,061

Net increase (decrease) in cash and cash equivalents		(5,966	)		(12,041	)		16,551
Cash and cash equivalents at the beginning of the year		7,392			19,433			2,882

Cash and cash equivalents at the end of the year	$	1,426		$	7,392		$	19,433

See accompanying notes to condensed financial statements.

Orthofix International N.V.

Schedule 1—Condensed Financial Information of Registrant Orthofix International N.V.

Notes to Condensed Financial Statements (unaudited)

1.	Background and basis of presentation

These condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule 1 of Regulation S-X, as the restricted net assets of Orthofix Holdings, Inc. and its subsidiaries exceed 25% of the consolidated net assets of Orthofix International N.V. and its subsidiaries (the “Company”). This information should be read in conjunction with the Company’s consolidated financial statements included elsewhere in this filing.

2.	Restricted net assets of subsidiaries

Certain of the Company’s subsidiaries have restrictions on their ability to pay dividends or make intercompany loans and advances pursuant to their financing arrangements. The amount of restricted net assets the Company’s subsidiaries held at December 31, 2013 and 2012 was approximately $192.0 million and $213.4 million, respectively. Such restrictions are on net assets of Orthofix Holdings, Inc. and its subsidiaries.

3.	Commitments, contingencies and long-term obligations

For a discussion of the Company’s commitments, contingencies and long term obligations under its senior secured credit facility, see Note 9, Note 12 and Note 17 of the Company’s consolidated financial statements.

4.	Dividends from subsidiaries

Orthofix International N.V. did not receive cash dividends in 2013 or 2012.