RTI Surgical completed its acquisition of Paradigm Spine in the first quarter and reported a net loss at $9.1 million.
Five things to know:
1. The $9.1 million net loss included $9 million in expenses related to the Paradigm Spine acquisition and integration. President and CEO Camille Farhat reported the company made significant progress integrating Paradigm Spine's coflex device into its spine portfolio during the quarter.
2. First quarter revenue hit $69.7 million, down from $69.9 million in the first quarter of 2018. Gross profit hit $38 million, which was 54.5 percent of revenues.
3. Adjusted EBITDA for the first quarter was $6.6 million, 10 percent of revenue. Adjusted EBITDA was down slightly from the $7.8 million reported in the first quarter last year due to patent litigation costs and operating expense increases related to Paradigm Spine.
4. RTI Surgical expects full year revenue to hit $325 million to $335 million, growing 15 percent to 19 percent year over year. Adjusted EBITDA for the year is projected in the range of $36 million to $40 million, a 7 percent to 19 percent year over year growth.
5. Moving forward, Mr. Farhat said the company will focus on the continued adoption and growth of coflex, along with its other devices, accelerated reimbursement and physician engagement.