K2M reported total revenue growth in the first quarter, with domestic revenue up in all three company segments.
"K2M's strong revenue growth in the first quarter of 2015 is a result of our continued focus on introducing innovative spinal products to meet the needs of our surgeon customers around the world," said President and CEO Eric Major.
Here are 15 things to know:
1 Total reported revenue was up 19.3 percent year-over-year, reaching $50.4 million in the first quarter. The increase was due to greater sales volume from new surgeons in the United States as well as international distributor market growth.
2. United States revenue was up 18.1 percent year-over year while international revenue was up 22.2 percent year-over-year.
3. Broken out, the domestic revenue growth was:
• Complex spine: 19.2 percent
• Minimally invasive surgery: 22.6 percent
• Degenerative growth: 15.5 percent
4. K2M reported loss from operations at $10 million, down from $13.7 million reported over the same period last year.
5. The net loss attributable to common stockholders was $14.3 million, or $0.37 per diluted share. There was a decrease in loss per share in part due to increased shares outstanding after the February follow-on offering.
6. Cash and cash equivalents were $39 million and working capital was up to $99.3 million.
7. K2M has no outstanding indebtedness and borrowing capacity of $34.3 million under the revolving credit facility.
8. Gross profit for the first quarter was $32.9 million, up from $27.8 million reported in the first quarter of last year, and was 65.3 percent of sales.
9. Operating expenses for the first quarter were $43 million, up from $41.5 million reported in the same period last year.
10. The medical device excise tax was $600,000, which was 1.2 percent of the total company sales for the first quarter.
11. Total revenue growth is expected at 15 percent to 17 percent for the full year revenue in 2015, reaching $214 million to $218 million.
12. Foreign exchange fluctuation is expected to continue impacting the total revenue; it represents 130 basis points of year-over-year growth in the first quarter.
13. Net loss is expected at $34 million to $38 million, significantly lower than in 2014.
14. K2M achieved FDA clearance for the MESA 2 Deformity Spinal System as well as the NILE Alternative Fixation Spinal System in the first quarter.
15. The degenerative business in the United States represented 43 percent of the U.S. revenue for the first quarter, reaching $15.1 million. Complex spine was second representing 40.5 percent of the U.S. revenue and reaching $14.2 million.