OrthoPediatrics Corp. Reports First Quarter 2021 Financial Results
May 05, 2021 at 16:05 PM EDT
WARSAW, Indiana, May 05, 2021 (GLOBE NEWSWIRE) -- OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (Nasdaq: KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, announced today its financial results for the first quarter ended March 31, 2021.
First Quarter 2021 and Business Highlights
Mark Throdahl, Chief Executive Officer of OrthoPediatrics, commented, “The Company’s first quarter results reflect the resilience of our business, steady execution of our strategy and the unwavering dedication of our team. With revenue growth exceeding 30% year-over-year, adjusted EBITDA and gross margins continuing to improve, and meaningful progress across all product categories, OrthoPediatrics is well positioned for sustained growth as we advance toward recovery from the COVID-19 pandemic. We are particularly encouraged by the 19% growth in Trauma and Deformity and 60% growth in Scoliosis, both of which are seeing increased momentum after having been impacted by the deferral of elective surgeries in 2020. In addition to achieving 26% domestic sales growth, International sales grew 56%, with sales agencies growing 122% and, most critically, stocking distributors growing 15% in the quarter.”
Mr. Throdahl continued, “I’m proud to report that the proactive steps the Company took at the beginning of the pandemic have helped ensure a smooth path to recovery and position OrthoPediatrics as stronger today than it was before the outset of COVID-19. In addition, our success has been aided by the strategic acquisitions of Orthex, ApiFix, and Telos Partners as well as our continued investment in sets. Looking ahead, we remain intently focused on capturing the significant opportunity in the pediatric orthopedic market and driving long-term value for our stockholders.”
First Quarter 2021 Financial Results
Trauma and Deformity revenue for the first quarter of 2021 was $14.6 million, a 19.2% increase compared to $12.2 million for the same period last year. Scoliosis revenue was $6.0 million, a 60.4% increase compared to $3.7 million for the first quarter of 2020. Sports Medicine/other revenue for the first quarter of 2021 was $959 thousand, a 120.5% increase compared to $435 thousand for the same period last year. Increased sales of the RESPONSE 5.5/6.0 system and the ApiFix® System were the primary drivers for Scoliosis revenue.
Gross profit for the first quarter of 2021 was $16.3 million, a 33.7% increase compared to $12.2 million for the same period last year. Gross profit margin for the first quarter of 2021 improved to 76.1%, compared to 74.7% for the same period last year due to an increase in agency sales.
Total operating expenses for the first quarter of 2021 were $22.3 million, a 33.4% increase compared to $16.7 million for the same period last year. The increase in operating expenses was driven by a 52.8% increase in general and administrative expense primarily due to additional costs associated with the ApiFix and Telos acquisitions, increased legal and professional services as well as increased depreciation and amortization, a 18.3% increase in sales and marketing, and a 3.4% increase in research and development. Operating loss for the first quarter of 2021 was ($6.0) million compared to ($4.5) million for the same period last year.
Adjusted EBITDA for the first quarter of 2021 was ($1.4) million as compared to ($2.1) million for the first quarter of 2020. This improvement compared to prior year was driven by revenue growth combined with effective cost containment of cash related expenses.
Net interest expense for the first quarter of 2021 was $0.7 million, compared to $0.4 million for the same period last year, primarily driven by the Apifix acquisition accretion on installment payments. The Apifix acquisition fair value adjustment of contingent consideration was $4.2 million in the first quarter 2021 compared to zero in the first quarter 2020.
Net loss for the first quarter of 2021 was ($10.4) million, compared to ($4.9) million for the same period last year. Net loss attributable to common stockholders for the period was ($0.54) per basic and diluted share, compared to ($0.30) per basic and diluted share for the same period last year. Adjusted earnings (loss) per diluted share of ($0.25) compares to ($0.30) for the same period last year. See below for additional information and a reconciliation of non-GAAP financial information.
The weighted average number of diluted shares outstanding for the three-month period ended March 31, 2021 was 19,200,231 shares.
In the first quarter of 2021, we had 177 sales representatives, up 6.0% compared to 167 in the same period of 2020.
Purchases of property and equipment during the first quarter of 2021 was $2.7 million, which compared to $4.0 million for the same period last year. This investment reflects the deployment of consigned sets, which includes product specific instruments and cases and trays. Including the implants, $5.3 million of consigned sets were deployed during the first quarter of 2021, compared to $3.3 million during the first quarter of 2020.
As of March 31, 2021, cash, cash equivalents, short-term investments and restricted cash were $78.0 million compared to $85.3 million as of December 31, 2020. The Company had no outstanding term loan obligations.
Full Year 2021 Financial Guidance
A replay of the webcast will remain available on OrthoPediatrics’ website, www.orthopediatrics.com, until the Company releases its second quarter 2021 financial results. In addition, a telephonic replay of the call will be available until May 13, 2021. The replay dial-in numbers are (855) 859-2056 for domestic callers and (404) 537-3406 for international callers. Please use the replay conference ID number 50152332.
Use of Non-GAAP Financial Measures
About OrthoPediatrics Corp.