0001425450FALSE00014254502024-03-062024-03-06
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
______________________
Date of Report (Date of earliest event reported): March 6, 2024 | | |
| OrthoPediatrics Corp. |
| (Exact name of registrant as specified in its charter) |
| | |
| Delaware |
| (State or other jurisdiction of incorporation) |
| | | | | |
| 001-38242 | 26-1761833 |
| (Commission File Number) | (I.R.S. Employer Identification Number) |
| | | | | |
2850 Frontier Drive Warsaw, Indiana | 46582 |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (574) 268-6379 | | |
| Not Applicable |
| (Former name or former address, if changed since last report) |
Securities registered pursuant to Section 12(b) of the Act: | | | | | | | | | | | | | | |
| Title of Each Class | | Trading Symbol(s) | | Name of each exchange on which registered |
| Common Stock, $0.00025 par value per share | | KIDS | | Nasdaq Global Market |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | | | | | |
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 under the Securities Act (17 CFR 230.405) or Rule 12b-2 under the Exchange Act (17 CFR 240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨
Item 2.02. Results of Operations and Financial Condition.
On March 6, 2024, OrthoPediatrics Corp. issued a press release announcing its earnings for the quarter and year ended December 31, 2023 and making other disclosures. The press release (including the accompanying unaudited condensed consolidated financial statements as of and for the quarter and year ended December 31, 2023, and other financial data) is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 2.02, including the information incorporated by reference herein from Exhibit 99.1, is furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
| | | | | | | | |
| (d) | Exhibits | |
| Exhibit No. | Description |
| | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
* * * * * *
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | | | | | |
| OrthoPediatrics Corp.
|
| | |
| Date: March 6, 2024 | By: | /s/ Daniel J. Gerritzen |
| | Daniel J. Gerritzen,
General Counsel and Secretary |
OrthoPediatrics Corp. Reports Fourth Quarter and Full Year 2023 Financial Results
Record full year 2023 revenue of $148.7 million increased 22% compared to prior year
WARSAW, Ind., March 6, 2024 -- 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 fourth quarter and full year ended December 31, 2023.
Fourth Quarter and Full Year 2023 & Recent Business Highlights
•Helped nearly 20,000 children in the fourth quarter 2023 and approximately 82,000 for full year 2023, bringing the total to over 710,000 since the inception of OrthoPediatrics, including Boston Orthotics & Prosthetics, the combined organizations have helped more than 1.0 million kids
•Generated total revenue of $37.6 million for fourth quarter 2023, up 21% from $31.0 million in fourth quarter 2022; domestic revenue increased 24% and international revenue increased 13% in the quarter
•Generated record total annual revenue of $148.7 million for full year 2023, up 22% from $122.3 million in 2022; domestic revenue increased 20% and international revenue increased 26% in 2023
•Achieved record full year adjusted EBITDA of $5.0 million in 2023, compared to $0.2 million in 2022
•Launched 8 new products in 2023 including the RESPONSETM Power Scoliosis System, GIRO® Growth Modulation System, Pediatric Nailing Platform Tibia System, DF2® Brace, Mitchell Ponseti® Plus Bar (“MP+"), and the Levity Device
•Announced acquisition of Boston Orthotics & Prosthetics, expanding OrthoPediatrics Specialty Bracing Division "OPSB" with pediatric orthotics management business offering leading technology and pediatric care through dedicated clinics
•Strengthened balance sheet by closing $80 million debt financing to support the Boston Orthotics & Prosthetics acquisition and future business requirements
•Reiterated full year 2024 revenue guidance to be in a range of $197.0 million to $200.0 million, representing growth of 32% to 34% compared to 2023
“2023 was another strong year for OrthoPediatrics as we delivered record top-line results and outperformed our adjusted EBITDA expectations. We continue to benefit from an extremely diverse business from which we saw strength across all segments this year. Both our trauma and deformity and scoliosis businesses continue to capture market share and drive growth,” commented David Bailey, President & CEO of OrthoPediatrics. “Looking ahead, we believe we are in an extremely strong position for 2024 and we have the right drivers in place to sustain our strong revenue and profitability growth. We look forward to helping the next million kids with our portfolio of the most advanced pediatric orthopedic solutions."
Fourth Quarter and Full Year 2023 Financial Results
Total revenue for the fourth quarter of 2023 was $37.6 million, a 21% increase compared to $31.0 million for the same period last year. The increase in revenue in the fourth quarter of 2023 was driven primarily by growth across Global Trauma and Deformity, Domestic Scoliosis, and OPSB, offset by lower growth in International Scoliosis. U.S. revenue for the fourth quarter of 2023 was $28.3 million, a 24% increase compared to $22.7 million for the
same period last year, representing 75% of total revenue. The increase in revenue in the fourth quarter of 2023 was driven primarily by growth across Trauma and Deformity, Scoliosis, and OPSB. International revenue for the fourth quarter of 2023 was $9.4 million, a 13% increase compared to $8.3 million for the same period last year, representing 25% of total revenue. Growth in the quarter was primarily driven by Trauma and Deformity, offset by lower Scoliosis sales to stocking distributors in South America.
Total revenue for the full year 2023 was $148.7 million, a 22% increase compared to $122.3 million in 2022. Full year U.S. revenue was $111.0 million, a 20% increase compared to $92.4 million in 2022, representing 75% of total revenue. International revenue for the full year 2023 was $37.7 million, a 26% increase compared to $29.9 million in 2022, representing 25% of total revenue.
Trauma and Deformity revenue for the fourth quarter of 2023 was $27.1 million, a 23% increase compared to $22.1 million for the same period last year. Revenue was driven by growth from Pega products, Trauma, Ex-Fix, and OPSB. Scoliosis revenue was $9.7 million, a 20% increase compared to $8.0 million for the fourth quarter of 2022. Scoliosis growth was driven primarily by increased U.S. growth across the Response and ApiFix non-fusion system, partially offset by cancelled cases from late December RSV infections and lower than expected orders in Latin and South America. Sports Medicine/Other revenue for the fourth quarter of 2023 was $0.9 million, compared to $0.9 million for the same period last year.
Trauma and Deformity revenue for the full year 2023 was $106.8 million, a 26% increase compared to $85.1 million in 2022. Scoliosis revenue for the full year 2023 was $37.9 million, a 13% increase compared to $33.4 million in 2022. Sports Medicine/Other revenue for the full year 2023 was $4.0 million, a 6% increase compared to $3.8 million in 2022.
Gross profit for the fourth quarter of 2023 was $26.7 million, a $5.5 million increase compared to $21.2 million for the same period last year. Gross profit margin for the fourth quarter of 2023 was 71.0%, compared to 68.5% for the same period last year. For the full year 2023, gross profit margin was 74.8%, compared to 74.1% in 2022. The slight increase in gross profit margin was driven primarily by lower set sales to international stocking distributors.
Total operating expenses for the fourth quarter of 2023 were $34.8 million, a $5.2 million increase compared to $29.5 million for the same period last year. Full year operating expenses were $138.0 million, a 19% increase compared to $116.1 million in 2022. The increase was mainly driven by volume of units sold, increased volume related commission, as well as incremental personnel required to support the growth of the company.
Sales and marketing expenses increased $1.5 million, or 14%, to $12.4 million in the fourth quarter of 2023. For the full year 2023, sales and marketing expense increased $6.3 million, or 14%, to $51.4 million. The increase was primarily driven by increased sales commission expenses.
General and administrative expenses increased $3.0 million, or 18%, to $19.6 million in the fourth quarter of 2023. For the full year 2023, general and administrative expense increased $16.0 million, or 27%, to $75.4 million. The fourth quarter and full year increases were driven primarily by the addition of personnel and resources to support the continued expansion of the business and an increase in depreciation and amortization.
Total other income was $1.2 million for the fourth quarter of 2023, compared to $0.4 million for the same period last year, and was $5.4 million for 2023 compared to $21.7 million for 2022. In the fourth quarter of 2023, we realized an immaterial fair value adjustment benefit compared to a $0.5 million benefit for the fourth quarter of 2022. For 2023, fair value adjustment of contingent consideration was a benefit of $3.0 million compared to a $25.9 million benefit for 2022.
Net loss for the fourth quarter of 2023 was $6.7 million, compared to $7.8 million for the same period last year. Net loss per share for the period was $0.29 per basic share and diluted share, compared to $0.35 per basic and diluted share for the same period last year. Adjusted EBITDA for the fourth quarter of 2023 was $1.3 million as compared to a loss of $2.2 million for the fourth quarter of 2022.
Net loss for the full year 2023 was $21.0 million, compared to a net income of $1.3 million last year. Fair value adjustment of contingent consideration for total year 2023 was a favorable $3.0 million compared to a favorable $25.9 million in 2022. Net loss per share for the period was $0.92 per basic and diluted share, compared to net income of $0.06 per basic and diluted share for the same period last year. Adjusted EBITDA for the full year 2023 was $5.0 million compared to $0.2 million for the full year 2022. See below for additional information and a reconciliation of non-GAAP financial information.
Weighted average diluted shares outstanding for the three months ended December 31, 2023 was 22,762,689 shares.
As of December 31, 2023, cash and cash equivalents, short-term investments and restricted cash were $82.3 million compared to $84.0 million and $119.8 million as of September 30, 2023 and December 31, 2022, respectively. As of December 31, 2023, $10.0 million had been drawn on the new line of credit with MidCap. Post closing the Boston Orthotics & Prosthetics acquisition OrthoPediatrics cash and restricted cash balance was approximately $60 million.
Full Year 2024 Financial Guidance
For full year 2024, the Company expects its revenue to be in the range of $197.0 million to $200.0 million, representing growth of 32% to 34% over 2023 revenue. The Company also expects its annual set deployment to be less than $20.0 million and expects to generate $8.0 million to $9.0 million of adjusted EBITDA for full year 2024.
Conference Call
OrthoPediatrics will host a conference call on Thursday, March 7, 2024, at 8:00 a.m. ET to discuss the results. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at www.orthopediatrics.com, on the Investors page in the Events & Presentations section. The webcast will be available for replay for at least 90 days after the event.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of U.S. federal securities laws. You can identify forward-looking statements by the use of words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "could," "believe," "estimate," "project," "target," "predict," "intend," "future," "goals," "potential,” "objective," "would" and other similar expressions. Forward-looking statements involve risks and uncertainties, many of which are beyond OrthoPediatrics’ control. Important factors could cause actual results to differ materially from those in the forward-looking statements, including, among others: the risks related to COVID-19, the impact such pandemic may have on the demand for our products, and our ability to respond to the related challenges; and the risks, uncertainties and factors set forth under "Risk Factors" in OrthoPediatrics’ Annual Report on Form 10-K filed with the SEC on March 1, 2023, as updated and supplemented by our other SEC reports filed from time to time. Forward-looking statements speak only as of the date they are made. OrthoPediatrics assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable securities laws.
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures such as adjusted diluted (loss) earnings per share and Adjusted EBITDA, which differ from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted loss per share in this press release represents diluted (loss) earnings per share on a GAAP basis, plus the accreted interest attributable to acquisition installment payables, the fair value adjustment of contingent consideration, trademark impairment, acquisition related costs, non-recurring Pega conversion fees, and minimum purchase commitment costs. The fair value adjustment of contingent consideration is associated with our estimates of the value of earn-outs in connection with certain acquisitions. We believe that providing the non-GAAP diluted (loss) earnings per share excluding these expenses, as well as the GAAP measures, assists our investors because such expenses are not reflective of our ongoing operating results. Adjusted EBITDA in this release represents net loss (income), plus interest expense, net plus other expense, provision for income taxes (benefit), depreciation and amortization, trademark impairment, stock-based compensation expense, fair value adjustment of contingent consideration, acquisition related costs, nonrecurring Pega conversion fees, and the cost of
minimum purchase commitments. The Company believes the non-GAAP measures provided in this earnings release enable it to further and more consistently analyze the period-to-period financial performance of its core business operating performance. Management uses these metrics as a measure of the Company’s operating performance and for planning purposes, including financial projections. The Company believes these measures are useful to investors as supplemental information because they are frequently used by analysts, investors and other interested parties to evaluate companies in its industry. Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative to, or superior to, net income or loss as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and it should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, the measure is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as debt service requirements, capital expenditures and other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs and other potential cash requirements. In evaluating these non-GAAP measures, you should be aware that in the future the Company may incur expenses that are the same or similar to some of the adjustments in this presentation. The Company’s presentation of non-GAAP diluted (loss) earnings per share or Adjusted EBITDA should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using these adjusted measures on a supplemental basis. The Company’s definition of these measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation. The schedules below contain reconciliations of reported GAAP diluted (loss) earnings per share to non-GAAP diluted (loss) earnings and net (loss) income to non-GAAP Adjusted EBITDA.
About OrthoPediatrics Corp.
Founded in 2006, OrthoPediatrics is an orthopedic company focused exclusively on advancing the field of pediatric orthopedics. As such it has developed the most comprehensive product offering to the pediatric orthopedic market to improve the lives of children with orthopedic conditions. OrthoPediatrics currently markets 71 surgical systems that serve three of the largest categories within the pediatric orthopedic market. This product offering spans trauma and deformity, scoliosis, and sports medicine/other procedures. OrthoPediatrics’ global sales organization is focused exclusively on pediatric orthopedics and distributes its products in the United States and over 70 countries outside the United States. For more information, please visit www.orthopediatrics.com.
Investor Contact
Philip Taylor
Gilmartin Group
philip@gilmartinir.com
415-937-5406
ORTHOPEDIATRICS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In Thousands, Except Share Data)
| | | | | | | | | | | |
| December 31, 2023 | | December 31, 2022 |
| | | |
| ASSETS |
| Current assets: | | | |
Cash | $ | 31,055 | | | $ | 8,991 | |
| Restricted cash | 1,972 | | | 1,471 | |
| Short term investments | 49,251 | | | 109,299 | |
Accounts receivable - trade, net of allowances of $1,373 and $1,056, respectively | 34,617 | | | 24,800 | |
Inventories, net | 105,851 | | | 78,192 | |
| | | |
Prepaid expenses and other current assets | 3,750 | | | 3,966 | |
| | | |
Total current assets | 226,496 | | | 226,719 | |
| | | |
| Property and equipment, net | 41,048 | | | 34,286 | |
| | | |
| Other assets: | | | |
| Amortizable intangible assets, net | 69,275 | | | 64,980 | |
Goodwill | 83,699 | | | 86,821 | |
Other intangible assets | 15,287 | | | 14,921 | |
| Other non-current assets | 2,940 | | | — | |
Total other assets | 171,201 | | | 166,722 | |
| | | |
| Total assets | $ | 438,745 | | | $ | 427,727 | |
| | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY |
| Current liabilities: | | | |
Accounts payable - trade | 12,649 | | | 11,150 | |
Accrued compensation and benefits | 11,325 | | | 6,744 | |
| | | |
Current portion of long-term debt with affiliate | 152 | | | 144 | |
Current portion of acquisition installment payable | 10,149 | | | 7,815 | |
Other current liabilities | 7,391 | | | 5,018 | |
Total current liabilities | 41,666 | | | 30,871 | |
| | | |
| Long-term liabilities: | | | |
| Long-term debt, net of current portion | 9,297 | | | — | |
Long-term debt with affiliate, net of current portion | 611 | | | 763 | |
Acquisition installment payment, net of current portion | 3,551 | | | 8,019 | |
Contingent consideration | — | | | 2,980 | |
| Deferred income taxes | 5,483 | | | 5,954 | |
| Other long-term liabilities | 1,112 | | | 492 | |
Total long-term liabilities | 20,054 | | | 18,208 | |
| | | |
| Total liabilities | 61,720 | | | 49,079 | |
| | | |
Stockholders' equity: | | | |
Common stock, $0.00025 par value; 50,000,000 shares authorized; 23,378,408 shares and 22,877,962 shares issued as of December 31, 2023 and December 31, 2022, respectively | 6 | | | 6 | |
Additional paid-in capital | 580,287 | | | 560,810 | |
| | | |
Accumulated deficit | (197,742) | | | (176,768) | |
Accumulated other comprehensive loss | (5,526) | | | (5,400) | |
Total stockholders' equity | 377,025 | | | 378,648 | |
| | | |
| Total liabilities and stockholders' equity | $ | 438,745 | | | $ | 427,727 | |
| | | |
| | | |
| | | |
| | | |
| | | |
ORTHOPEDIATRICS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands, Except Share and Per Share Data)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31, | | Twelve Months Ended December 31, |
| 2023 | | 2022 | | 2023 | | 2022 |
| Net revenue | $ | 37,613 | | | $ | 30,994 | | | $ | 148,732 | | | $ | 122,289 | |
| Cost of revenue | 10,899 | | | 9,770 | | | 37,479 | | | 31,629 | |
| Gross profit | 26,714 | | | 21,224 | | | 111,253 | | | 90,660 | |
| | | | | | | |
| Operating expenses: | | | | | | | |
Sales and marketing | 12,439 | | | 10,945 | | | 51,402 | | | 45,053 | |
General and administrative | 19,594 | | | 16,554 | | | 75,421 | | | 59,383 | |
| Trademark impairment | — | | | — | | | 985 | | | 3,609 | |
| | | | | | | |
Research and development | 2,747 | | | 2,034 | | | 10,196 | | | 8,014 | |
Total operating expenses | 34,780 | | | 29,533 | | | 138,004 | | | 116,059 | |
| | | | | | | |
| Operating loss | (8,066) | | | (8,309) | | | (26,751) | | | (25,399) | |
| | | | | | | |
| Other (income) expenses: | | | | | | | |
Interest (income) expense, net | (303) | | | (61) | | | (198) | | | 2,424 | |
Fair value adjustment of contingent consideration | (6) | | | (480) | | | (2,980) | | | (25,930) | |
Other (income) expense, net | (854) | | | 129 | | | (2,261) | | | 1,796 | |
Total other income | (1,163) | | | (412) | | | (5,439) | | | (21,710) | |
| | | | | | | |
| Loss before income taxes | $ | (6,903) | | | $ | (7,897) | | | (21,312) | | | (3,689) | |
| Provision for income taxes (benefit) | (212) | | | (48) | | | (338) | | | (4,947) | |
| | | | | | | |
| | | | | | | |
| Net (loss) income | $ | (6,691) | | | $ | (7,849) | | | $ | (20,974) | | | $ | 1,258 | |
| Weighted average shares outstanding | | | | | | | |
| Basic | 22,762,689 | | | 22,473,616 | | | 22,675,477 | | | 20,704,556 | |
| Diluted | 22,762,689 | | | 22,473,616 | | | 22,675,477 | | | 20,947,727 | |
| | | | | | | |
| | | | | | | |
| Net (loss) income per share | | | | | | | |
Basic | $ | (0.29) | | | $ | (0.35) | | | $ | (0.92) | | | $ | 0.06 | |
| Diluted | $ | (0.29) | | | $ | (0.35) | | | $ | (0.92) | | | $ | 0.06 | |
ORTHOPEDIATRICS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)(In Thousands) | | | | | | | | | | | |
| Twelve Months Ended December 31, |
| 2023 | | 2022 |
| OPERATING ACTIVITIES | |
| Net (loss) income | $ | (20,974) | | | $ | 1,258 | |
| Adjustments to reconcile net loss to net cash used in operating activities: | | | |
| | | |
| Trademark impairment | 985 | | | 3,609 | |
Depreciation and amortization | 17,385 | | | 13,099 | |
Stock-based compensation | 10,526 | | | 6,679 | |
Fair value adjustment of contingent consideration | (2,980) | | | (25,930) | |
Accretion of acquisition installment payable | 1,372 | | | 2,307 | |
| Deferred income taxes | (1,163) | | | (5,032) | |
Changes in certain current assets and liabilities: | | | |
Accounts receivable - trade | (9,724) | | | (3,983) | |
Inventories | (26,279) | | | (16,938) | |
Prepaid expenses and other current assets | 94 | | | (506) | |
Accounts payable - trade | 1,491 | | | (209) | |
| | | |
Accrued expenses and other liabilities | 6,852 | | | 3,344 | |
Other | (4,631) | | | 536 | |
| | | |
| | | |
| Net cash used in operating activities | (27,046) | | | (21,766) | |
| | | |
| INVESTING ACTIVITIES | | | |
| Acquisition of MedTech, net of cash acquired | (3,097) | | | — | |
| Acquisition of Rhino assets | (546) | | | — | |
| Acquisition of MDO, net of cash acquired | — | | | (8,360) | |
| Acquisition of Pega, net of cash acquired | — | | | (31,730) | |
| Purchases of licenses | (2,106) | | | — | |
| Sale of short-term marketable securities | 112,904 | | | 46,872 | |
| Purchase of short-term marketable securities | (48,600) | | | (110,122) | |
| Purchases of property and equipment | (16,878) | | | (10,031) | |
| | | |
| | | |
| Net cash provided by (used in) investing activities | 41,677 | | | (113,371) | |
| | | |
| FINANCING ACTIVITIES | | | |
| | | |
| Payments on debt with affiliate | — | | | (31,000) | |
| Proceeds from issuance of debt with affiliate | — | | | 31,000 | |
| Proceeds from issuance of debt | 9,424 | | | — | |
| Proceeds from issuance of common stock, net of issuance costs | — | | | 139,282 | |
| Proceeds from exercise of stock options | 21 | | | 63 | |
| Installment payment for ApiFix | (2,000) | | | (3,234) | |
| Payments on mortgage notes | (144) | | | (137) | |
| Net cash provided by financing activities | 7,301 | | | 135,974 | |
| | | |
| Effect of exchange rate changes on cash | 633 | | | 619 | |
| | | |
| NET INCREASE IN CASH AND RESTRICTED CASH | 22,565 | | | 1,456 | |
| | | |
| Cash and restricted cash, beginning of period | $ | 10,462 | | | $ | 9,006 | |
| Cash and restricted cash, end of period | $ | 33,027 | | | $ | 10,462 | |
| | | |
| | | |
| | | |
| | | |
| | | | | | | | | | | |
| | | |
| SUPPLEMENTAL DISCLOSURES | | | |
| Cash paid for interest | $ | 42 | | | $ | 700 | |
| Transfer of instruments between property and equipment and inventory | $ | 57 | | | $ | (234) | |
| Issuance of common shares for ApiFix acquisition installment | $ | 6,178 | | | $ | 10,410 | |
| Issuance of common shares to acquire MedTech | $ | 2,274 | | | $ | — | |
| Issuance of common shares to acquire Rhino assets | $ | 478 | | | $ | — | |
| Issuance of common shares to acquire MDO | $ | — | | | $ | 9,707 | |
| Right-of-use assets obtained in exchange for lease liabilities | $ | 706 | | | $ | 213 | |
| Debt issuance costs not yet paid | $ | 127 | | | $ | — | |
| | | |
ORTHOPEDIATRICS CORP.
NET REVENUE BY GEOGRAPHY AND PRODUCT CATEGORY
(Unaudited)
(In Thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31, | | Twelve Months Ended December 31, | | |
| Product sales by geographic location: | 2023 | | 2022 | | 2023 | | 2022 | | | | |
U.S. | $ | 28,262 | | | $ | 22,732 | | | $ | 111,010 | | | $ | 92,419 | | | | | |
International | 9,351 | | | 8,262 | | | 37,722 | | | 29,870 | | | | | |
Total | $ | 37,613 | | | $ | 30,994 | | | $ | 148,732 | | | $ | 122,289 | | | | | |
| | | | | | | | | | | |
| Three Months Ended December 31, | | Twelve Months Ended December 31, | | |
| Product sales by category: | 2023 | | 2022 | | 2023 | | 2022 | | | | |
Trauma and deformity | $ | 27,066 | | | $ | 22,080 | | | $ | 106,781 | | | $ | 85,055 | | | | | |
Scoliosis | 9,663 | | | 8,044 | | | 37,933 | | | 33,428 | | | | | |
Sports medicine/other | 884 | | | 870 | | | 4,018 | | | 3,806 | | | | | |
Total | $ | 37,613 | | | $ | 30,994 | | | $ | 148,732 | | | $ | 122,289 | | | | | |
ORTHOPEDIATRICS CORP.
RECONCILIATION OF NET LOSS (INCOME) TO NON-GAAP ADJUSTED EBITDA
(Unaudited)
(In Thousands)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31, | | Twelve Months Ended December 31, |
| 2023 | | 2022 | | 2023 | | 2022 |
| Net (loss) income | $ | (6,691) | | | $ | (7,849) | | | $ | (20,974) | | | $ | 1,258 | |
Interest (income) expense, net | (303) | | | (61) | | | (198) | | | 2,424 | |
Other (income) expense, net | (854) | | | 129 | | | (2,261) | | | 1,796 | |
| Provision for income taxes (benefit) | (212) | | | (48) | | | (338) | | | (4,947) | |
Depreciation and amortization | 5,479 | | | 3,843 | | | 17,385 | | | 13,422 | |
| Trademark impairment | — | | | — | | | 985 | | | 3,609 | |
Stock-based compensation | 2,516 | | | 1,568 | | | 10,526 | | | 6,677 | |
| Fair value adjustment of contingent consideration | (6) | | | (480) | | | (2,980) | | | (25,930) | |
Acquisition related costs | 451 | | | — | | | 650 | | | 818 | |
| Nonrecurring Pega conversion fees | — | | | — | | | 277 | | | — | |
| | | | | | | |
| Minimum purchase commitment cost | 915 | | | 662 | | | 1,968 | | | 1,100 | |
| Adjusted EBITDA | $ | 1,295 | | | $ | (2,236) | | | $ | 5,040 | | | $ | 227 | |
ORTHOPEDIATRICS CORP.
RECONCILIATION OF DILUTED (LOSS) EARNINGS PER SHARE TO NON-GAAP ADJUSTED DILUTED (LOSS) PER SHARE
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31, | | Twelve Months Ended December 31, |
| 2023 | | 2022 | | 2023 | | 2022 |
| (Loss) income per share, diluted (GAAP) | $ | (0.29) | | | $ | (0.35) | | | $ | (0.92) | | | $ | 0.06 | |
| Accretion of interest attributable to acquisition installment payable | 0.01 | | | 0.02 | | | 0.05 | | | 0.11 | |
| Fair value adjustment of contingent consideration | — | | | (0.02) | | | (0.13) | | | (1.25) | |
| Trademark impairment | — | | | — | | | 0.04 | | | 0.17 | |
| Acquisition related costs | 0.02 | | | — | | | 0.03 | | | 0.04 | |
| Nonrecurring Pega conversion fees | — | | | — | | | 0.01 | | | — | |
| | | | | | | |
| Minimum purchase commitment cost | 0.04 | | | 0.03 | | | 0.09 | | | 0.05 | |
| Adjusted loss per share, diluted (non-GAAP) | $ | (0.22) | | | $ | (0.32) | | | $ | (0.83) | | | $ | (0.82) | |
| X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
| Name: |
dei_AmendmentFlag |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
| Name: |
dei_DocumentPeriodEndDate |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:dateItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
| Name: |
dei_DocumentType |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:submissionTypeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
| Name: |
dei_EntityAddressAddressLine1 |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- Definition
+ References
+ Details
| Name: |
dei_EntityAddressCityOrTown |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCode for the postal or zip code
| Name: |
dei_EntityAddressPostalZipCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the state or province.
| Name: |
dei_EntityAddressStateOrProvince |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:stateOrProvinceItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityCentralIndexKey |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:centralIndexKeyItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionIndicate if registrant meets the emerging growth company criteria. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityEmergingGrowthCompany |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
| Name: |
dei_EntityFileNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:fileNumberItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
| Name: |
dei_EntityIncorporationStateCountryCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityRegistrantName |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityTaxIdentificationNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionLocal phone number for entity.
| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
| Name: |
dei_PreCommencementIssuerTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
| Name: |
dei_PreCommencementTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTitle of a 12(b) registered security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
| Name: |
dei_Security12bTitle |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:securityTitleItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the Exchange on which a security is registered. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
| Name: |
dei_SecurityExchangeName |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarExchangeCodeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Section 14a
-Number 240
-Subsection 12
| Name: |
dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
| Name: |
dei_TradingSymbol |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:tradingSymbolItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
| Name: |
dei_WrittenCommunications |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
OrthoPediatrics (NASDAQ:KIDS)
Historical Stock Chart
From Mar 2024 to Apr 2024
OrthoPediatrics (NASDAQ:KIDS)
Historical Stock Chart
From Apr 2023 to Apr 2024
