LDR reported total revenue growth in the fourth quarter of 2014 and a full year revenue increase as well.
The company is also looking forward to 2015 for several reasons. "A specific Category I CPT reimbursement code for two-level cervical disc procedures in the United States went into effect January 1, 2015, and a DRG reimbursement code for cervical disc replacement procedures became effective October 1, 2014," said President and CEO Christophe Lavigne. "Now both spine surgeons and hospitals will have reimbursement payment codes in place related to two-level Mobi-C procedures. We believe these developments will facilitate further surgeon adoption of Mobi-C."
Here are 12 things to know about LDR's financial report:
1. Net loss for the fourth quarter of 2014 was $3.1 million, or around $0.12 per share. This is down significantly from a $15.1 million net loss last year.
2. The fourth quarter total revenue was up 23.6 percent over the same period last year, reaching $39.5 million. United States revenue was up 28.8 percent to $32 million and international revenue was up 5.5 percent to $7.5 million.
3. Revenue from exclusive cervical products sales jumped 47.1 percent in the fourth quarter to $25.5 million, primarily due to the Mobi-C cervical disc. The exclusive lumbar products revenue was up only 2.4 percent to $10.3 million in the fourth quarter.
4. Mobi-C and VerteBRIDGE fusion products led non-fusion product growth for the cervical and lumbar spine. Surgeons trained in Mobi-C were introduced to the balance of LDR's exclusive technology product lines for spinal fusion cases when appropriate.
5. The fourth quarter gross profit was $32.7 million and the gross margin was 82.7 percent. The gross margin percentage decreased primarily due to the increased inventory reserves associated with the build-up of inventory related to product launches and enhancements.
6. There is upcoming data publications on the five-year PMA for the Mobi-C compared to one- and two-level fusions as well as a cost effectiveness study of cervical total disc replacement with Mobi-C compared with fusion that could influence surgeon decision-making in the future.
7. Total net loss in 2014 was $11 million, or $0.43 per share, down from $27.9 million last year.
8. LDR revenue for the full year in 2014 was $141.3 million, up 26.6 percent over 2013. The exclusive technology product revenue grew 35.2 percent to $125 million for the year while traditional fusion product revenue dropped 15.1 percent to $16.2 million.
9. Gross profit in 2014 was $116.8 million, compared with $93.6 million in 2013. Gross margin was 82.7 percent, compared with 83.9 percent in 2013.
10. The company reported $73.9 million in cash and cash equivalents as of Dec. 31, 2014. The working capital was reported at $98.9 million and debt was $24.9 million.
11. LDR expects revenue to grow 15.5 percent to 17 percent in 2015 before the foreign exchange impact. Revenues are expected to hit $163 million to $165 million before exchange rates.
12. The change in foreign exchange rates is expected to negatively impact this year's revenue by 3.5 percent to 4.5 percent.