Here are 10 key notes from the report:
1. Full year revenue was up 15.7 percent, reaching $216 million. The fourth quarter revenue jumped 10 percent year-over-year to $54.2 million. The company reported $39.4 million net loss for 2015.
2. Revenue in the United States hit $155.3 million for the full year, up 16.7 percent over 2015. The fourth quarter domestic revenue jumped 9.8 percent to $39.2 million. The growth is attributed to continued expansion of the company’s customer base and new product introductions.
3. The full year growth in the company’s different segments includes:
• U.S. complex spine: 17.3 percent
• U.S. minimally invasive surgery: 29.9 percent
• U.S. degenerative: 12.1 percent
The complex spine market represented 40.8 percent of the United States revenue; the minimally invasive market was 15.2 percent of the U.S. revenue and the degenerative market was 44 percent of U.S. revenue.
4. Fourth quarter segment growth includes:
• U.S. complex spine: 11.3 percent
• U.S. minimally invasive surgery: 19.7 percent
• U.S. degenerative: 5.8 percent
5. Full year international revenue grew 13.4 percent to $60 million. In the fourth quarter, international revenue grew 10.4 percent year-over-year to $15 million.
6. The 2015 adjusted EBITDA was negative $100,000, compared to negative $8.8 million in 2014.
7. K2M reported $144.2 million in gross profit for 2015 and the gross margin increased to 66.8 percent from 66.4 percent over the same period last year.
8. Operating expenses for the 2015 fiscal year increased 5 percent to $180.5 million due to increased sales and marketing expenses from hiring direct sales employees and increased research and development expenses.
9. Loss from operations in the fourth quarter was $7.6 million, compared to $8.6 million last year. The company reported $34.6 million in cash and cash equivalents and no outstanding indebtedness.
10. K2M expects 2016 revenue to reach $246 million to $250 million, a 14 percent to 16 percent growth year-over-year. The net loss is expected at $36 million to $42 million.
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