DJO reported 1Q20 orthopedic revenue of USD $89.3 million, -0.6% vs. 1Q19. Per company leadership, DJO took share and had double-digit growth into March before COVID-19’s impact on elective procedures. The company observed a -90% decrease in procedures during April, but saw sales levels improve on a weekly basis recently. DJO’s internal scenarios assume a 3Q ramp to recovery as healthcare access expands and patient backlogs begin to be addressed.
DJO’s parent company, Colfax Corp., has flexed down costs to mirror reduced demand in 2Q. Restructuring plans designed to reduce costs by $20 million will include operating improvements at DJO. Additionally, Colfax has reduced compensation for both the board and executive team while nearly all associates have been furloughed or taken a temporary pay reduction. Colfax anticipates that these actions will reduce 2Q costs by more than $100 million.
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
1Q20
1Q19
$ Chg
% Chg
Joint Replacement
$72.2
$72.8
($0.5)
(0.7%)
Knees
$19.0
$19.2
($0.2)
(1.1%)
Hips
$16.2
$16.3
($0.1)
(0.5%)
Extremities
$37.0
$37.3
($0.2)
(0.6%)
Other (Recovery Sciences)
$17.1
$17.1
($0.0)
(0.1%)
Total
$89.3
$89.9
($0.5)
(0.6%)
Geographic Sales
1Q20
1Q19
$ Chg
% Chg
US
$66.5
$66.0
$0.6
0.9%
OUS
$22.8
$23.9
($1.1)
(4.7%)
EMEA
$17.3
$17.9
($0.5)
(3%)
Asia Pacific
$3.3
$3.5
($0.2)
(6.3%)
Rest of World
$2.2
$2.6
($0.4)
(14.6%)
Total
$89.3
$89.9
($0.5)
(0.6%)
Earnings
Amt
% of Sales
Sales
$816.4
Cost of Sales
$468.1
57.3%
Selling and Admin
$291.3
35.7%
Other
$51.4
6.3%
Net Earnings
$5.5
0.7%
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
DJO reported 1Q20 orthopedic revenue of USD $89.3 million, -0.6% vs. 1Q19. Per company leadership, DJO took share and had double-digit growth into March before COVID-19’s impact on elective procedures. The company observed a -90% decrease in procedures during April, but saw sales levels improve on a weekly basis recently. DJO’s internal...
DJO reported 1Q20 orthopedic revenue of USD $89.3 million, -0.6% vs. 1Q19. Per company leadership, DJO took share and had double-digit growth into March before COVID-19’s impact on elective procedures. The company observed a -90% decrease in procedures during April, but saw sales levels improve on a weekly basis recently. DJO’s internal scenarios assume a 3Q ramp to recovery as healthcare access expands and patient backlogs begin to be addressed.
DJO’s parent company, Colfax Corp., has flexed down costs to mirror reduced demand in 2Q. Restructuring plans designed to reduce costs by $20 million will include operating improvements at DJO. Additionally, Colfax has reduced compensation for both the board and executive team while nearly all associates have been furloughed or taken a temporary pay reduction. Colfax anticipates that these actions will reduce 2Q costs by more than $100 million.
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
1Q20
1Q19
$ Chg
% Chg
Joint Replacement
$72.2
$72.8
($0.5)
(0.7%)
Knees
$19.0
$19.2
($0.2)
(1.1%)
Hips
$16.2
$16.3
($0.1)
(0.5%)
Extremities
$37.0
$37.3
($0.2)
(0.6%)
Other (Recovery Sciences)
$17.1
$17.1
($0.0)
(0.1%)
Total
$89.3
$89.9
($0.5)
(0.6%)
Geographic Sales
1Q20
1Q19
$ Chg
% Chg
US
$66.5
$66.0
$0.6
0.9%
OUS
$22.8
$23.9
($1.1)
(4.7%)
EMEA
$17.3
$17.9
($0.5)
(3%)
Asia Pacific
$3.3
$3.5
($0.2)
(6.3%)
Rest of World
$2.2
$2.6
($0.4)
(14.6%)
Total
$89.3
$89.9
($0.5)
(0.6%)
Earnings
Amt
% of Sales
Sales
$816.4
Cost of Sales
$468.1
57.3%
Selling and Admin
$291.3
35.7%
Other
$51.4
6.3%
Net Earnings
$5.5
0.7%
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
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