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OrthoPediatrics reported 1Q20 orthopedic revenue of USD $16.4 million, +11.6% vs. 1Q19. The company maintained its momentum from late last year with over +30% sales growth in January and February. Domestic sales performed well even into March; however, international sales suffered due to a lack of stocking orders as COVID-19 impacted these regions earlier. Trauma sales were bolstered by the reduced exposure to COVID-related procedure deferrals as well as the continued rollout of the Hexapod External Fixation System acquired from Orthex last year.
The company’s April sales declined approximately +60%, while early May is already demonstrating considerable improvement. OrthoPediatrics expects elective surgeries in the U.S. to accelerate in June and July before returning to normal levels in 4Q20.
OrthoPediatrics exited 2019 with $72 million in cash and has stress-tested its financial models to assure that there will be no job reductions or pay cuts among its workforce. It has also established a distributor relief fund so that U.S. sales agencies can draw very low-interest loans that do not need to be paid back fully until year-end 2021.
- The company commenced the limited launch of a Large Fragment Cannulated Screw system in March
- March also brought FDA 510(k) clearance and expanded indications for the RESPONSE Scoliosis System to include neuromuscular surgery
- OrthoPediatrics has commenced an executive officer succession plan. Effective June 3, Mark Throdahl will transition to Executive Chairman, Dave Bailey will be promoted to President and Fred Hite to Chief Operating Officer
“The most fundamental thing in this whole COVID exercise is there was very little focus by orthopedic companies on pediatrics before COVID, and there will be even less focus now. The market will become even less competitive. Our whole orientation has been to capitalize on that future state and hit the decks very hard as surgeries are put back on the books.” – Mark Throdahl, OrthoPediatrics President and Chief Executive Officer
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 | |
|---|---|---|---|---|
| Spine | $3.7 | $4.3 | ($0.5) | (12.8%) |
| Trauma | $12.2 | $10.0 | $2.2 | 21.9% |
| Sports Medicine | $0.4 | $0.4 | $0.1 | 14.2% |
| Total | $16.4 | $14.7 | $1.7 | 11.6% |
Geographic Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $13.4 | $10.3 | $3.1 | 30.4% |
| OUS | $3.0 | $4.4 | ($1.4) | (32.3%) |
| Total | $16.4 | $14.7 | $1.7 | 11.6% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $16.4 | |
| Cost of Sales | $4.1 | 25.3% |
| General and Admin | $7.9 | 48.2% |
| Selling and Marketing | $7.6 | 46.2% |
| R & D | $1.3 | 7.7% |
| Other | $0.4 | 2.7% |
| Net Earnings | ($4.9) | (30.2%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
OrthoPediatrics reported 1Q20 orthopedic revenue of USD $16.4 million, +11.6% vs. 1Q19. The company maintained its momentum from late last year with over +30% sales growth in January and February. Domestic sales performed well even into March; however, international sales suffered due to a lack of stocking orders as COVID-19 impacted these...
OrthoPediatrics reported 1Q20 orthopedic revenue of USD $16.4 million, +11.6% vs. 1Q19. The company maintained its momentum from late last year with over +30% sales growth in January and February. Domestic sales performed well even into March; however, international sales suffered due to a lack of stocking orders as COVID-19 impacted these regions earlier. Trauma sales were bolstered by the reduced exposure to COVID-related procedure deferrals as well as the continued rollout of the Hexapod External Fixation System acquired from Orthex last year.
The company’s April sales declined approximately +60%, while early May is already demonstrating considerable improvement. OrthoPediatrics expects elective surgeries in the U.S. to accelerate in June and July before returning to normal levels in 4Q20.
OrthoPediatrics exited 2019 with $72 million in cash and has stress-tested its financial models to assure that there will be no job reductions or pay cuts among its workforce. It has also established a distributor relief fund so that U.S. sales agencies can draw very low-interest loans that do not need to be paid back fully until year-end 2021.
- The company commenced the limited launch of a Large Fragment Cannulated Screw system in March
- March also brought FDA 510(k) clearance and expanded indications for the RESPONSE Scoliosis System to include neuromuscular surgery
- OrthoPediatrics has commenced an executive officer succession plan. Effective June 3, Mark Throdahl will transition to Executive Chairman, Dave Bailey will be promoted to President and Fred Hite to Chief Operating Officer
“The most fundamental thing in this whole COVID exercise is there was very little focus by orthopedic companies on pediatrics before COVID, and there will be even less focus now. The market will become even less competitive. Our whole orientation has been to capitalize on that future state and hit the decks very hard as surgeries are put back on the books.” – Mark Throdahl, OrthoPediatrics President and Chief Executive Officer
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 | |
|---|---|---|---|---|
| Spine | $3.7 | $4.3 | ($0.5) | (12.8%) |
| Trauma | $12.2 | $10.0 | $2.2 | 21.9% |
| Sports Medicine | $0.4 | $0.4 | $0.1 | 14.2% |
| Total | $16.4 | $14.7 | $1.7 | 11.6% |
Geographic Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $13.4 | $10.3 | $3.1 | 30.4% |
| OUS | $3.0 | $4.4 | ($1.4) | (32.3%) |
| Total | $16.4 | $14.7 | $1.7 | 11.6% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $16.4 | |
| Cost of Sales | $4.1 | 25.3% |
| General and Admin | $7.9 | 48.2% |
| Selling and Marketing | $7.6 | 46.2% |
| R & D | $1.3 | 7.7% |
| Other | $0.4 | 2.7% |
| Net Earnings | ($4.9) | (30.2%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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ME
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.
