Exactech reported net income up in the fourth quarter and for the full year of 2014.
"Our hip business received a strong boost during the year with introductions of the Alteon brand, which features at Tapered Wedge Femoral Stem and Neck Preserving Femoral Stem," said Exactech CEO and President David Petty. "These innovations have also produced very positive feedback from surgeons, providing us with excellent momentum going into the new year."
Here are 10 key notes on the financial report:
1. The revenue for 2014 was up 5 percent to $248.4 million. The service line breakdown was:
• Extremity implant up 21 percent to $79 million
• Knee implant down 2 percent to $78.7 million
• Hip implant up 6 percent to $43.5 million
• Biologic and spine decreased 7 percent to $23.8 million
• Other revenue down 5 percent to $23.4 million
2. In the fourth quarter, the company's revenue was up 3 percent to $61.6 million. The breakdown for service lines was:
• Extremity implant up 18 percent to $21.7 million
• Knee implant down 7 percent to $18.9 million
• Hip implant up 12 percent to $11.3 million
• Biologic and spine down 8 percent to $6.1 million
• Other revenue down 13 percent to $5.2 million
3. The company reported success with the Equinoxe Shoulder system last year and reported a strong pipeline of new and well-established competency products in the shoulder segment, which Mr. Petty expects to continue building a robust business segment this year.
5. Currency issues impacted knee revenues, which was the largest volume sold outside of the United States on a worldwide basis throughout the year. Pricing pressure was a factor.
6. Mr. Petty expects the knee business to grow in the second half of 2015 due to new product launches, sales force engagement, sales organization development and the product development timeline.
7. The United States sales were up 4 percent in 2014, reaching $165.6 million. International sales increased 7 percent to $82.8 million.
8. The United States sales represented 67 percent of the total sales in 2014. In the fourth quarter, United States sales remained flat while international sales were up 9 percent.
9. The company expects 2015 initial revenue guidance at $252 million to $260 million. For the first quarter of 2015, Exactech expects USGAAP revenues of $62 million to $65 million.
10. The full year gross margins increased 1 percent to 70 percent in 2014. The total operating expenses were up 6 percent to $147.9 million.