Orthofix plans salary cuts, will borrow $100M to boost cash flow

Orthofix is temporarily reducing the salaries of its U.S. employees, with the largest cuts being implemented at the executive and board level.

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Five things to know:

1. The salary cuts will be for at least an eight-week period, beginning in April.

2. Orthofix plans to use $100 million from its existing credit facility in April to maintain liquidity and has applied for accelerated payments from the Medicare program through the CARES Act.

3. First-quarter revenue is expected to be between $104 million and $105 million, based on preliminary projections.

4. Cash, cash equivalents and restricted cash was about $58 million as of March 31.

5. The company will provide further updates during its first-quarter earnings call on May 7.

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