RTI Surgical Holdings, Inc. (Nasdaq: RTIX), a global surgical implant company, declared operating results for the 3rd-quarter of 2k19.
3rd-Quarter 2k19 Highlights:
- Revenue of $76.10M, up 10.20 percent compared to the 3rd-quarter of 2k18
- Net Loss of $4.90M, or $0.060 for each common share, inclusive of $5.30M of non-recurring costs
- Adjusted EBITDA of $7.10M, or 9.30 percent of revenue
- Revenue and EBITDA guidance updated to reflect current business progress
“RTI Surgical inclined revenue by 10.00 percent in the 3rd-quarter of 2k19 driven by the addition of coflex and strong performance in our OEM franchise, partially offset by lower than expected revenue contribution from our global spine business,” said Camille Farhat, President and CEO, RTI Surgical. “We remain confident in our long-term strategy and our ability to drive growth in the business.
Farhat continued, “We see early evidence of progress on the implementation of our commercial operating system to drive adoption of our Novel Therapies. We are dedicating resources and focus to rapidly develop and introduce new products for Established Therapies. We remain committed to our efforts to accelerate growth in our global spine business as we continue to invest in differentiation and scale. We are confident our efforts will result in a return to growth in this business in 2k20.”
RTI’s worldwide revenues for the 3rd-quarter of 2k19 were $76.10M, an incline of $7.10M, or 10.20 percent compared with $69.10M during the similar duration in the prior year. The 3rd-quarter 2k19 revenue included $8.20M global contribution from the acquisition of Paradigm Spine closed on March 9, 2k19. Gross profit for the 3rd-quarter of 2k19 was $41.50M, or 54.50 percent of revenues, a 10.20 percent incline compared to $37.70M, or 54.50 percent of revenues, in the 3rd-quarter of 2k18. Gross profit for the 3rd-quarter of 2k19 included a $2.10M charge for the purchase accounting step-up of coflex inventory. Gross profit adjusted for the impact of non-recurring charges was 57.30 percent of revenue for the 3rd-quarter of 2k19 compared to 54.50 percent of revenue for the previous year quarter.
During the 3rd-quarter of 2k19, RTI incurred $3.20M in non-recurring pre-tax acquisition and integration costs related primarily to activities to reduce complexity and accelerate growth.
Net loss applicable to common shares was $4.90M, or $0.060 for each fully diluted common share in the 3rd-quarter of 2k19, compared to net income applicable to common shares of $2.90M, or $0.040 for each fully diluted common share in the 3rd-quarter of 2k18. As outlined in the reconciliation tables that follow, excluding the impact of non-recurring charges, adjusted net loss applicable to common shares was $1.00M, or $0.010 for each fully diluted common share in the 3rd-quarter of 2k19.
Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), for the 3rd-quarter of 2k19 was $7.10M, or 9.30 percent of revenues, compared with $9.10M, or 13.10 percent of revenues for the 3rd-quarter of 2k18. The decline in Adjusted EBITDA was primarily driven by incremental operating costs from the acquisition of Paradigm Spine completed in early March of 2k19.
Fiscal 2k19 Outlook
Based on our recent fiscal results and current business outlook, the Company has adjusted financial guidance for 2k19:
- The Company expects full year revenues in the range of $305.00M to $310.00M, a reduction from the previous range of $325.00M to $335.00M; and
- The Company expects full year Adjusted EBITDA to be in the range of $30.00M to $34.00M, compared with the previous range of $36.00M to $40.00M.