OrthoPediatrics (KIDS) Reports In-Line Q4 EPS, Revenues Beat

OrthoPediatrics (NASDAQ: KIDS) reported Q4 EPS of ($0.19), in-line with the analyst estimate of ($0.19). Revenue for the quarter came in at $14.6 million versus the consensus estimate of $14.22 million.

• Reported total revenue of $14.6 million for fourth quarter 2018, up from $11.7 million or 24.7% year-over-year, respectively.
• Record setting $57.6 million for full year 2018, up from $45.6 million or 26.2% year-over-year, respectively.
• Generated adjusted EBITDA of $518 thousand for full year 2018, up from negative $58 thousand for full year 2017. (See below for additional information and a reconciliation of non-GAAP financial information.)
• Strengthened global footprint with the conversion of stocking distributors to sales agencies in Canada during 2018 and Belgium and the Netherlands at the beginning of 2019.
• Deployed $12.0 million in consignment sets and expanded product portfolio offering to 26 surgical systems in 2018.
• Bolstered cash position with $43.4 million net follow-on offering in December 2018.
• Provided full year 2019 revenue growth guidance to be in a range of 21.0% to 23.0% and investment in consignment sets to be in a range of $15.0 million to $17.0 million.

Mark Throdahl, President and Chief Executive Officer of OrthoPediatrics, commented, “We delivered another year of record performance in 2018 with 26% annual revenue growth and $12 million deployed in consignment sets. Our tenth consecutive year of 20%+ annual revenue growth was supported by increased investments in consigned sets, product innovation, ongoing conversions of international sales agencies, and clinical education. Furthermore, while increasing our investment in these four areas, we also demonstrated our initial ability to deliver positive adjusted EBITDA of $518 thousand for the full year 2018. With an expanded product portfolio of 26 surgical systems, we remain dedicated to advancing the field of pediatric orthopedics and are delighted that our accomplishments have helped approximately 150,000 children to date.”

Mr. Throdahl continued, “In addition to our revenue and profitability achievements in 2018, our strengthened balance sheet following a successful secondary raise in December positions us well for sustainable future growth. This capital supports our increased investment in consignment set deployment to a range of $15 million to $17 million for 2019 and provides us with the opportunity to welcome new technologies that could expand our product offering and growth outlook. Based on strong execution across our key initiatives, we head into 2019 feeling confident in achieving our full year 2019 revenue growth guidance of 21% to 23%.”

For earnings history and earnings-related data on OrthoPediatrics (KIDS) click here.

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