Revenue up, $147k net loss — 10 key points on RTI Surgical's 2014 financial report

Written by Laura Dyrda | February 12, 2015 | Print  |

RTI Surgical reported increased revenue for the fourth quarter of 2014 as well as the full year of 2014.

President and CEO Brian K. Hutchinson said revenue will be down in the first quarter of 2015 due to the timing in the commercial business, but expects they will increase sequentially on a quarterly basis over the next year.

 

"In 2015, we will target several key initiatives including driving growth in our focused products of nanOss 3D Advanced Bone Graft Substitute, Fortiva Porcine Dermis and map3 Cellular Allogeneic Bone Graft, capturing market share in spine hardware, growing international revenue and controlling spending to continue to improve margins," said Mr. Hutchinson.

 

Here are 10 things to know about the company's financial report:

 

1. Worldwide revenue for the fourth quarter was $70.9 million, up from $60.5 million over the same period last year. Domestic revenue for the fourth quarter was $65.4 million, up from $54.4 million last year.

 

2. Net loss applicable to common shares was reported at $136,000. The company also reported a net loss per fully diluted common share of $0.00 based on 56.9 million fully diluted shares outstanding, compared to a net loss applicable to common shares of $8.5 million and net loss per fully diluted common share of $0.15 for the same period last year, based on 56.4 million fully diluted shares outstanding.

 

3. RTI Surgical paid a pre-tax severance charge of $4.3 million and pre-tax litigation settlement charge of $185,000 during the fourth quarter of 2014.

 

4. Adjusted earnings before interest taxes, depreciation and amortization was $10.2 million — 14 recent revenues — compared to $5.8 million — 10 percent of revenues — over the same period last year.

 

5. Worldwide revenue for the full year was $262 million in 2014, compared with $198 million in 2013. Domestic revenues were $238.9 million in 2014, up from $177.2 million in 2013.

 

6. The full year international revenues were $23.9 million for the full year in 2014, compared with $20.8 million in 2013.

 

7. RTI Surgical reported a $417,000 net loss applicable to common shares. There was a net loss per fully diluted common shares of $0.01, based on 56.7 million fully diluted shares outstanding, compared to a net loss applicable to common shares of $19.2 million and net loss per fully diluted common share of $0.34 based on 5.3 million fully diluted shares outstanding in 2013.

 

8. Adjusted EBITDA was $34 million — 13 percent of revenues — compared with $15.1 million — 8 percent of revenues — for the full year in 2013.

 

9. For 2015, the company expects full year revenues between $279 million and $285 million.

 

10. Full year net income per fully diluted common share is expected to fall between $0.17 and $0.22 based on 58 million fully diluted common shares.

 

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