Orthofix reported flat net sales for the second quarter of 2015.
Here are eight things to know about the company's financial report:
1. Orthofix net sales were flat $101 million, with diluted earnings per share from operations hitting $0.21.
2. Net sales by business line were:
• BioStim: up 3 percent to $40.7 million
• Biologics: up 10 percent to $15.2 million
• Extremity fixation: down 6 percent to $25.6 million
• Spine fixation: down 5 percent to $19.3 million
3. The gross margin was 78.3 percent, compared with 74.8 percent over the same period last year, and gross profit was up by $3.4 million, hitting $79 million for the quarter. The change is due to foreign exchange rates and lower charges for inventory shrinkage in 2015 when compared with the same period last year.
4. The operating expenses increased from $68.9 million last year to $74.1 million for the second quarter this year. An increase in general and administrative expenses as the company invested in infrastructure, increased share-based compensation, costs related to legal judgment and an increase in professional fees and personnel costs within the finance department as part of the control remediation efforts drove this change.
5. Adjusted EBITDA from continuing operations was $17.2 million, or 17.1 percent of net sales. In the same period from last year, the adjusted EBITDA was $16.2 million, or 16.1 percent of net sales.
6. Cash and cash equivalents were $55.9 million, compared to $71.2 million for the same period last year. Orthofix is in negotiations to renew its credit facility, which expires Aug. 30, 2015.
7. The company reported estimated net sales for 2015 growing to $390 million to $395 million.
8. Projected adjusted EBITDA for 2015 is estimated to hit $57 million to $60 million.