U.S. Surgical Corp. last week reported that it lost $138.4 million, or $2.46 per share, for the fourth quarter ended Dec. 31, 1993, compared with net income of $37.9 million, or 64 cents per share, in the year-ago period.
Sales declined 24% to $244.4 million from the same period in 1992.
The Norwalk, Conn.-based company, one of the nation's leading suppliers of surgical equipment, revealed the figures in its long-delayed 1993 financial statement. Company executives said the report was delayed by a restructuring and completion of an audit. The company released the report after it secured $200 million in a sale of convertible stock and renewed a large contract.
Some industry analysts speculated that the company delayed issuing financial information until it neared an agreement on the stock sale.
For the year, U.S. Surgical lost $138.7 million, or $2.48 per share, on sales of $1 billion. In 1992, it reported a record net income of $138.9 million, or $2.32 per share, on sales of $1.2 billion.
Its long-term debt rose 28% to $505.3 million at the end of 1993.
Much of U.S. Surgical's losses stem from a $137.6 million charge for restructuring. During the past few months, the company cut 1,600 jobs and $150 million from its costs (March 21, p. 8). The restructuring and a stock sale will allow the company "to significantly reduce debt," the company said.
It sold $200 million in convertible preferred stock to institutional investors earlier this month. U.S. Surgical can buy back the securities in 1997 or convert them to common stock in 1998.
The company also announced that it renewed a contract to supply Columbia/HCA Healthcare Corp. with laparoscopic and surgical stapling products. Its main competitor, Johnson & Johnson, has a similar contract with Columbia/HCA. U.S. Surgical declined to disclose the estimated value of the three-year contract. It didn't have contracts with the two chains that recently merged with Columbia, Galen Health Care and HCA-Hospital Corporation of America.