Orthofix plans salary cuts, will borrow $100M to boost cash flow

Spinal Tech

Orthofix is temporarily reducing the salaries of its U.S. employees, with the largest cuts being implemented at the executive and board level.

Five things to know:

1. The salary cuts will be for at least an eight-week period, beginning in April.

2. Orthofix plans to use $100 million from its existing credit facility in April to maintain liquidity and has applied for accelerated payments from the Medicare program through the CARES Act.

3. First-quarter revenue is expected to be between $104 million and $105 million, based on preliminary projections.

4. Cash, cash equivalents and restricted cash was about $58 million as of March 31.

5. The company will provide further updates during its first-quarter earnings call on May 7.

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