ALACHUA, Fla.–(BUSINESS WIRE)–RTI Surgical Inc.™ (RTI) (Nasdaq: RTIX), a global surgical implant company, reported operating results for the first quarter of 2015 as follows:
Achieved first quarter revenues of $68 million, a 12 percent increase over the first quarter of 2014.First Quarter Highlights:
- Achieved net income per fully diluted share of $0.05.
- Benefited from accelerated deferred revenue recognition of $1.5 million and associated net income per fully diluted share of $0.02.
- Achieved revenues of $19.4 million in the spine business, a 2 percent increase over the first quarter of 2014 with a 20 percent increase in the direct spine business.
- Achieved revenues of $12.1 million in the sports medicine business, a 7 percent increase over the first quarter of 2014.
- Achieved revenues of $10.9 million in the BGS and general orthopedic business, a 34 percent increase over first quarter of 2014.
- Achieved revenues of $10.6 million in the orthofixation business, a 42 percent increase over the first quarter of 2014.
Worldwide revenues were $68 million for the first quarter of 2015 compared to revenues of $60.7 million for the first quarter of 2014. Domestic revenues were $62.7 million for the first quarter of 2015 compared to revenues of $54.8 million for the first quarter of 2014. International revenues were $5.3 million for the first quarter of 2015 compared to revenues of $5.9 million for the first quarter of 2014. On a constant currency basis, international revenues for the first quarter of 2015 increased 1 percent compared to the first quarter of 2014. For the first quarter of 2015, the company benefited from $1.5 million in accelerated deferred revenue recognition due to loss of exclusivity by its commercial partner in the breast reconstruction market.
“We saw solid growth in the first quarter, exceeding our expectations and keeping us on track for the year,” said Brian K. Hutchison, president and chief executive officer. “Our growth was in line with the plan we laid out for our three major areas of focus, mentioned on our fourth quarter and year-end earnings call. Our base biologics business, which includes allograft and xenograft implants was comparable to prior year. Our hardware business, which includes metals and synthetic-based implants, grew 30 percent and our focused products, which includes nanOss® advanced bone graft substitute, Fortiva™ porcine dermis and map3® cellular allogeneic bone graft, grew more than 100 percent.”
For the first quarter of 2015, the company reported net income applicable to common shares of $2.9 million and net income per fully diluted common share of $0.05, based on 57.9 million fully diluted shares outstanding, compared to net loss applicable to common shares of $3.1 million and net loss per fully diluted common share of $0.05 for the first quarter of 2014, based on 56.5 million fully diluted shares outstanding. For the first quarter 2015, the company benefited from $0.9 million in net income applicable to common shares, or $0.02 in net income per fully diluted common share, related to the previously mentioned accelerated deferred revenue recognition.
Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), as detailed in the reconciliation provided later in this release, was $10.7 million for the first quarter of 2015 (16 percent of first quarter 2015 revenues) compared to $6.4 million for the first quarter of 2014 (10 percent of first quarter 2014 revenues).
Fiscal 2015 and Second Quarter Outlook
Based on results from the first quarter, the company is raising full year guidance for 2015. The company now expects full year revenues for 2015 to be between $281 million and $286 million, as compared to prior guidance of between $279 million and $285 million. Full year net income per fully diluted common share is expected to be in the range of $0.19 to $0.23 based on 58.2 million fully diluted common shares outstanding, as compared to prior guidance of $0.17 to $0.22.
For the second quarter of 2015, the company expects revenues to be between $70 million and $71 million, and net income per fully diluted common share to be approximately $0.04, based on 58.2 million fully diluted shares outstanding.
“During the first quarter we saw strong growth in our direct distribution business,” said Hutchison. “Based on results from the first quarter, I am confident in our ability to meet our goals for the year. We will continue to target our key initiatives including driving growth in our focused products, capturing market share in spine hardware, growing international revenue and controlling spending to improve margins.”
Conference Call
RTI will host a conference call and simultaneous audio webcast to discuss the first quarter results at 8:30 a.m. ET today. The conference call can be accessed by dialing (877) 383-7419. The webcast can be accessed through the investor section of RTI’s website at www.rtix.com. A replay of the conference call will be available on the RTI website following the call.
About RTI Surgical Inc.
RTI Surgical is a leading global surgical implant company providing surgeons with safe biologic, metal and synthetic implants. Committed to delivering a higher standard, RTI’s implants are used in sports medicine, general surgery, spine, orthopedic, trauma and cardiothoracic procedures and are distributed in nearly 50 countries. RTI is headquartered in Alachua, Fla., and has four manufacturing facilities throughout the U.S. and Europe. RTI is accredited in the U.S. by the American Association of Tissue Banks and is a member of AdvaMed. For more information, please visit www.rtix.com.
Forward Looking Statement
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, except for historical information, any statements made in this communication about anticipated financial results, growth rates, new product introductions, future operational improvements and results or regulatory actions or approvals or changes to agreements with distributors also are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the company’s SEC filings may be obtained by contacting the company or the SEC or by visiting RTI’s website at www.rtix.com or the SEC’s website at www.sec.gov.
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