RTI Surgical reported $280.9 million in 2018 revenue, up 0.5 percent over 2017. The company also made two big spine acquisitions last year and are prepared for additional growth in 2019.
The company expects revenue to hit $325 million to $335 million by the end of the year, which would constitute 15 percent to 19 percent growth. Coupled with the company's cost reduction measures, RTI Surgical is looking ahead to achieving financial milestones.
During the company's conference call discussing fourth quarter and full-year 2018 earnings, President and CEO Camille Farhat reported the company has achieved more than $13 million of its cost reduction goal through an aggressive program for its tissue business and is on track to reach $25 million in cost reductions by the end of the year. The company also initiated new programs as part of its global manufacturing infrastructure.
"Thus far, these efforts have resulted in a more competitive cost position, a shift to a continuous improvement mindset among employees and a more attractive platform for growth," said Mr. Farhat during the conference call, as transcribed by Seeking Alpha.
The company's long-term growth strategy focuses on its spine and OEM business, while it will simplify its sports channel. "Our growth strategy in spine is to invest in differentiated products and build scale," said Mr. Farhat. "We're executing against the strategy through external acquisitions, the development of partnerships and internal R&D development."
In 2018, the company acquired Zyga Technologies and its minimally invasive sacroiliac joint technology SImmetry, and it initiated the process to acquire Paradigm Spine and its interspinous processes device coflex. The company also partnered with Aziyo Biologics, which produces next generation orthobiologic technology.
RTI Surgical closed its acquisition of Paradigm Spine March 7 and was able to bring the majority of Paradigm Spine's team on board.
"This has really been a partnership with the Paradigm leadership and ownership from the outset and kind of given that they're going to be significant shareholders going forward; everybody's very aligned and driving towards a successful integration and closing the deal with momentum," said Jonathan Singer, .