Wright Medical Group reported second quarter losses at $24 million, or $0.48 per share.
Here are 10 key concepts from Wright Medical's financial report:
1. The net loss was a broader than the Zack's Consensus Estimate of $0.45. Reported loss reached $53.6 million, significantly higher than the $15.5 million loss reported in the second quarter last year, according to the Zack's report. The loss is attributable to rising costs and operating expenses.
2. The company's adjusted net loss from continuing operations was $24 million, a decline from the $5.8 million reported in the second quarter of 2013.
3. The company reported net sales up 19 percent to $72.4 million during the second quarter.
4. Cash and cash equivalents and marketable securities totaled $315.1 million, an increase over the end of 2013, driven by closing the MicroPort, Solana Surgical and OrthoPort transactions.
5. The company launched the INFINITY ankle in June. "The INFINITY ankle extends our leadership position and multi-year competitive lead in the total ankle technology and represents a significant near-term opportunity for Wright," said CEO Robert Palmisano. "This technology, combined with our new streamlined go-to-market program should enhance our ability to lead this unpenetrated segment."
6. The company plans to build on their lead in the extremities-biologics market through the end of the year. Mr. Palmisano expects accelerated revenue growth and improving EBITDA in their business throughout the year.
7. Wright Medical is the latest in a long line of large device companies revising strategies in response to the pricing pressures in the United States. "I am very optimistic about our plan to expand our gross margins in a meaningful way through improving our supply chain and pricing initiatives," said Mr. Palmisano. "The potential of these are very significant and we expect to see strong progress in the second half of this year and be well-positioned for growth in 2015 and beyond."
8. Previous guidance range for the net sales was reiterated from continuing operations, or extremities and biologics revenue, for the remainder of the year, placing the net sales at $308 million and $312 million. This would be a growth rate of 27 percent to 29 percent including three key acquisitions.
9. The United States consolidated sales reached $49.3 million, a 15.7 percent increase over the same period last year. The foot and ankle products in the United States rose 25.8 percent while the upper extremities product sales fell 16.1 percent. Sales in the United States reached $98 million for the six-month's end, raising 15.1 percent.
10. International sales reached $23 million, up 28.4 percent. Upper extremities sales were up 129.2 percent in the United States. Six-month sales reached $45 million, up 43.4 percent.