Orthofix reported flat net sales during the first quarter of 2019 and net income dropped 82.7 percent.
However, President and CEO Brad Mason was positive about the company's results. "For the first quarter, our top and bottom line results were slightly better than anticipated and we remain confident about our expected sales acceleration through the remainder of the year and into 2020," he said.
Five things to know:
1. Orhtofix reported $109.1 million in net sales, a 0.4 percent year over year increase. By business line, the company reported:
• 2.4 percent growth in bone growth therapies to $47 million.
• 10.6 percent growth in spinal implants to $22.9 million.
• 9.7 percent growth in biologics to $15.7 million.
• 5.8 percent growth in global spine to $85.9 million.
• 15.7 percent drop in global extremities to $23.2 million.
2. The company reported success with the M6-C cervical disc, which it obtained with the $105 million acquisition of Spinal Kinetics in 2018. and commercially launched the disc in the U.S. The measured launch focuses on a ramp-up of training and surgeon certification.
3. Gross profit hit $85.4 million for the quarter, and Orthofix's gross margin increased to 78.3 percent. Its acquisition of Spinal Kinetics offset the success of a favorable product mix.
4. Orthofix's year over year net income dropped 82.7 percent to $900,000 and adjusted EBITDA hit $15.7 million.
5. For 2019, Orthofix expects net sales to hit $472 million to $477 million, with a net income of $14.6 million to $15.5 million. The net sales increase would be 4.2 percent to 5.3 percent year over year.