Orthofix reported net sales increased 3.9 percent in the second quarter, and $500,000 in sales of the M6-C cervical disc since June, with fewer than 24 surgeons trained to use the technology.
The company expects to have 150 surgeons trained to use the M6-C by the end of the year. Five more things to know from its financial report:
1. Orthofix's net sales hit nearly $116 million, an almost 4 percent increase over the same period last year. Quarterly net sales breakdown for each business line includes:
• Bone growth therapies: $50.1 million (up 3.9 percent)
• Spinal implants: $23.2 million (down 2.7 percent)
• Biologics: $16.7 million (up 14.2 percent)
• Global spine: $90 million (up 3.8 percent)
• Global extremities: $25.7 million (up 4 percent)
2. The company's gross profit was up slightly to $90 million, and the gross margin decreased to 77.7 percent as compared to 79.5 percent over the same period last year. The drop was due to higher charges related to building up the spinal implants inventory to support new sales partner growth.
3. Orthofix reported $500,000 net loss for the quarter, down from $900,000 net income over the same period last year. EBITDA was $6.4 million, down from $6.8 million in 2018.
4. At the end of the second quarter, Orthofix reported $52.1 million in cash and cash equivalents. It had no outstanding indebtedness and a $125 million borrowing capacity under its existing credit facility.
5. The company maintained full year net sales expectations at $472 million to $477 million, but adjusted net income range of $14.6 million to $15.5 million down to $12.7 million to $13.6 million.