Here are 10 key notes on the company’s financial report:
1. K2M’s revenue jumped 18.7 percent to $56.4 million for the second quarter. International revenue was up 4.5 percent to $14.9 million while domestic revenue was up 24.7 percent to $41.4 million.
2. By segment, the company’s domestic revenue growth was:
U.S. Complex Spine growth: 23.6 percent
U.S. Minimally Invasive Surgery growth: 34.5 percent
U.S. Degenerative growth: 22.3 percent
3. The revenue increase was due to greater sales volume from new surgeons using the company’s technology in the United States and existing customers upgrading to newer product offerings. There was also growth in the international distributor markets and a domestic stocking order.
4. For the six months end, the United States revenue was up 21.6 percent to $76 million and international revenue was up 12.8 percent to $30 million. Total revenue grew 19 percent to $106.7 million.
5. For the first half of the year, the product line revenue was:
U.S. Complex Spine growth: 21.6 percent to $31.3 million
U.S. Minimally Invasive growth: 28 percent to $12.7 million
U.S. Degenerative growth: 19.1 percent to $32.5 million
6. Loss from operations in the second quarter was $8.6 million, compared to a $12.8 million loss last year.
7. Operating expenses for the second quarter were up to $46.4 million due primarily to increased sales commissions as a result of increased sales volume and by higher employee years.
8. Gross profit for the quarter was up 20 percent to $37.7 million, or 67 percent of sales. The medical device excise tax was $0.7 million, or 1.2 percent of the total company sales this year.
9. The company expects total constant currency revenue growth 15 percent to 17 percent year-over-year, hitting $214 million to $218 million.
10. Total net loss for the full year is expected to hit $34 million to $38 million, lower than $59.6 million in 2014.
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