RTI Surgical (RTIX) Tops Q2 EPS by 2c

RTI Surgical (NASDAQ: RTIX) reported Q2 EPS of $0.03, $0.02 better than the analyst estimate of $0.01. Revenue for the quarter came in at $70.7 million versus the consensus estimate of $70.19 million.

Highlights:

• Second Quarter 2018 revenue of $70.7 million
• Second Quarter 2018 Net loss of $6.4 million, inclusive of $8.5 million of non-recurring charges
• Second Quarter 2018 Adjusted EBITDA of $9.1 million, or 13% of revenue
• Completed new $100 million credit agreement increasing borrowing capacity at reduced cost of borrowing

“Our team is sustaining the momentum generated over the past 18 months, as evidenced by our positive operational and financial performance this quarter,” said Camille Farhat, chief executive officer. “As anticipated in our previously issued guidance, our OEM franchise continues to contribute attractive growth, which we believe demonstrates the importance of the changes we implemented in 2017 and the value of our diverse portfolio. Our current operational excellence priorities, focused primarily on the cost of tissue processing, began to positively impact our cost of sales this quarter, providing significant margin and adjusted EBITDA improvements. Our efforts to date are encouraging and we believe that we remain well positioned to deliver on our commitments in 2018 and beyond.”

Farhat added, “As we enter the second half of the year, we continue to make significant strides in our strategic transformation. Following the recent owned agency transition announcement, we have further reduced the complexity of our operations through the reduction of vertical integration and increased focus on our strength in tissue processing. We believe we maintain strong partnerships with the organ procurement community that, in our opinion, ensure that we can continue to expand the number of patients served with our differentiated allograft products. With the implementation of our operational excellence initiatives well underway, we are starting to see the positive outcomes in our financial results, and I am proud of the ongoing efforts of many people across the Company. Also, we are encouraged by the progress demonstrated by the team managing the Zyga acquisition and integration, which exemplify our endeavors to accelerate growth. In light of this progress, I am focused on reinvigorating the R&D pipeline and pursuing attractive deals at logical valuations.”

GUIDANCE:

RTI Surgical sees FY2018 revenue of $280-290 million, versus the consensus of $283.66 million.

For earnings history and earnings-related data on RTI Surgical (RTIX) click here.

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