K2M reported fourth quarter and full year financial results for 2016.
Here are 10 key notes:
1. Fourth quarter revenue hit $61.8 million, up 14 percent over the same period last year. However, the company reported $12.5 million in net losses, up from $8.5 million year-over-year.
2. The company's fourth quarter domestic revenue hit $47.7 million, up 21.5 percent year-over-year and included:
• U.S. complex spine: up 21.5 percent
• U.S. minimally invasive surgery: up 37.3 percent
• U.S. degenerative: up 19.3 percent
3. International revenue for the quarter dropped 5.8 percent year-over-year to $14.1 million.
4. The company launched the Cascadia Interbody Systems featuring the Lamellar 3D Titanium technology in the fourth quarter after receiving FDA clearance.
5. Full year 2016 revenue hit $236 million, up 10.2 percent over 2015. The company reported $181 million in U.S. revenue and $55 million in international revenue. U.S. revenue was up 16.6 percent and international revenue dropped 8.5 percent for the year.
6. The company's business breakdown in U.S. revenue for the year was:
• Complex spine: $71.9 million, up 13.4 percent
• Minimally invasive: $28.7 million, up 1.5 percent
• Degenerative: $80.4 million, up 12 percent
The complex spine represented 39.7 percent of U.S. revenue; MIS represented 15.9 percent and degenerative represented 44.4 percent of U.S. revenue.
7. The company's cash and cash equivalents at the end of 2016 were $45.5 million and K2M had working capital of $115.9 million at the end of the year.
8. K2M reported $41.6 million net loss for the year, up from $39.2 million in 2015.
9. The company expects 2017 revenue to reach $263 million to $270 million, which would be a 11 percent to 14 percent growth over 2016.
10. Net loss for 2017 is expected to hit $34 million to $31 million and adjusted EBITDA is expected at $6 million to $10 million.