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Business segment information
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Business segment information

10. Business segment information

The Company has four SBUs, which are comprised of BioStim, Biologics, Extremity Fixation, and Spine Fixation supported by corporate activities. The primary metric used in managing the Company is net margin, which the Company defines as gross profit less sales and marketing expense. The Company neither discretely allocates assets, other than goodwill, to its operating segments nor evaluates the operating segments using discrete asset information.

The tables below present net sales by SBU reporting segment. Net sales include product sales and marketing service fees. Marketing service fees, which are recorded on a net basis, are comprised of fees earned for the marketing of Trinity Evolution®, Trinity ELITE® and Versashield™ in the Biologics segment.

 

 

 

Three Months Ended September 30,

 

(U.S. Dollars, in thousands)

 

2016

 

 

2015

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BioStim

 

$

42,956

 

 

$

41,559

 

 

 

3.4

%

Biologics

 

 

14,335

 

 

 

14,639

 

 

 

(2.1

)%

Extremity Fixation

 

 

24,314

 

 

 

24,694

 

 

 

(1.5

)%

Spine Fixation

 

 

16,892

 

 

 

20,259

 

 

 

(16.6

)%

Total net sales

 

$

98,497

 

 

$

101,151

 

 

 

(2.6

)%

 

 

 

Nine Months Ended September 30,

 

(U.S. Dollars, in thousands)

 

2016

 

 

2015

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BioStim

 

$

128,758

 

 

$

119,962

 

 

 

7.3

%

Biologics

 

 

42,685

 

 

 

43,874

 

 

 

(2.7

)%

Extremity Fixation

 

 

75,840

 

 

 

72,103

 

 

 

5.2

%

Spine Fixation

 

 

53,968

 

 

 

55,928

 

 

 

(3.5

)%

Total net sales

 

$

301,251

 

 

$

291,867

 

 

 

3.2

%

 

The table below presents net margin by SBU reporting segment for the three and nine months ended September 30, 2016 and 2015:

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

(U.S. Dollars, in thousands)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BioStim

 

$

19,996

 

 

$

16,834

 

 

$

54,980

 

 

$

47,634

 

Biologics

 

 

6,821

 

 

 

6,296

 

 

 

19,642

 

 

 

19,525

 

Extremity Fixation

 

 

8,834

 

 

 

6,442

 

 

 

24,170

 

 

 

22,607

 

Spine Fixation

 

 

1,388

 

 

 

1,938

 

 

 

5,925

 

 

 

4,582

 

Corporate

 

 

(139

)

 

 

(353

)

 

 

(581

)

 

 

(955

)

Total net margin

 

 

36,900

 

 

 

31,157

 

 

 

104,136

 

 

 

93,393

 

General and administrative

 

 

18,581

 

 

 

19,348

 

 

 

53,341

 

 

 

63,423

 

Research and development

 

 

6,858

 

 

 

6,523

 

 

 

21,294

 

 

 

18,819

 

Restatements and related costs

 

 

691

 

 

 

1,147

 

 

 

1,481

 

 

 

9,276

 

Charges related to U.S. Government resolutions

 

 

1,499

 

 

 

–

 

 

 

14,369

 

 

 

–

 

Operating income

 

$

9,271

 

 

$

4,139

 

 

$

13,651

 

 

$

1,875