Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries OrthoPediatrics Corp. Reports First Quarter 2024 Financial Results and Increases Full Year 2024 Revenue Guidance By: OrthoPediatrics Corp. via GlobeNewswire May 06, 2024 at 16:05 PM EDT WARSAW, Ind., May 06, 2024 (GLOBE NEWSWIRE) -- OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (Nasdaq: KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, today announced its financial results for the first quarter ended March 31, 2024. First Quarter 2024 and Business Highlights Helped nearly 28,000 children in the first quarter of 2024, an increase of 47% from the first quarter 2023Generated total revenue of $44.7 million for the first quarter of 2024, up 41% from $31.6 million in first quarter 2023; domestic revenue increased 44% and international revenue increased 33% in the quarterGrew worldwide Trauma & Deformity revenue 42%, worldwide Scoliosis revenue 44%; Sports Medicine/Other revenue increased 5% in the first quarter of 2024 compared to the first quarter of 2023Launched RESPONSE™ Rib and Pelvic Fixation System to treat children with early onset scoliosis ("EOS")Announced acquisition of Boston Orthotics & Prosthetics ("Boston O&P"), expanding OrthoPediatrics Specialty Bracing Division ("OPSB") with pediatric orthotics management business offering leading technology and pediatric care through dedicated clinicsIncreased full year 2024 revenue guidance to $200.0 million to $203.0 million from $197.0 million to $200.0 million, representing growth of 34% to 36% compared to prior year David Bailey, President & CEO of OrthoPediatrics, commented, “I am excited about our very positive start to the year, outperforming our expectations and delivering healthy revenue growth as we continue to take share across the entire business. We have multiple levers, including continued legacy product growth, new product launches, and a rapidly expanding specialty bracing business that are working together to drive continued growth and profitability. We will continue to advance our strategic initiatives and feel we are positioned well to capitalize on our opportunities for the remainder of 2024 and beyond.” First Quarter 2024 Financial ResultsTotal revenue for the first quarter of 2024 was $44.7 million, a 41% increase compared to $31.6 million for the same period last year. U.S. revenue for the first quarter of 2024 was $34.3 million, a 44% increase compared to $23.8 million for the same period last year, representing 77% of total revenue. The increase in revenue in the first quarter of 2024 was driven primarily by organic growth in Trauma and Deformity and Scoliosis products as well as the addition of Boston O&P. International revenue for the first quarter of 2024 was $10.4 million, a 33% increase compared to $7.8 million for the same period last year, representing 23% of total revenue. Growth in the quarter was primarily driven by increased procedure volumes and additional set sales. Trauma and Deformity revenue for the first quarter of 2024 was $33.3 million, a 42% increase compared to $23.4 million for the same period last year. This growth was driven primarily by growth across numerous product lines, specifically Cannulated Screws, PNP Femur, PediPlate, external fixation and Pega systems, coupled with the addition of Boston O&P. Scoliosis revenue was $10.2 million, a 44% increase compared to $7.1 million for the first quarter of 2023. The growth was driven by increased sales of RESPONSE and ApiFix systems and revenue generated from 7D technology, coupled with the addition of Boston O&P. Sports Medicine/Other revenue for the first quarter of 2024 was $1.2 million, a 5% increase compared to $1.1 million for the same period last year. Gross profit for the first quarter of 2024 was $32.2 million, a 37% increase compared to $23.6 million for the same period last year. Gross profit margin for the first quarter of 2024 was 72%, compared to 75% for the same period last year. The change in gross margin was primarily driven by increased set sales to our international stocking partners as well as lower purchase price adjustments. Total operating expenses for the first quarter of 2024 were $41.9 million, a 30% increase compared to $32.2 million for the same period last year. The increase was mainly driven by the addition of Boston O&P as well as incremental personnel required to support the ongoing growth of the Company. Sales and marketing expenses increased $1.6 million, or 13%, to $14.2 million in the first quarter of 2024. The increase was driven primarily by increased sales commission expenses coupled with additional employees to support the OPSB business lines. Research and development expenses increased $0.6 million, or 23%, to $3.0 million in the first quarter of 2024. The increase was driven by the addition of Boston O&P as well as increased development activities. General and administrative expenses increased $7.6 million, or 44%, to $24.7 million in the first quarter of 2024. The increase was driven primarily by the addition of Boston O&P as well as personnel and resources to support the continued expansion of the business. Total other expense was $0.6 million for the first quarter of 2024, compared to $1.2 million of other income for the same period last year. The change was due primarily to the favorable fair value adjustment of contingent consideration in the first quarter of 2023, which did not repeat in 2024 as well as additional interest expense related to the new term loan with MidCap. Net loss for the first quarter of 2024 was $7.8 million, compared to $6.8 million for the same period last year. Net loss per share for the period was $0.34 per basic and diluted share, compared to $0.30 per basic and diluted share for the same period last year. Adjusted EBITDA for the first quarter of 2024 was a loss of $1.1 million as compared to a loss of $2.1 million for the first quarter of 2023. Weighted average basic and diluted shares outstanding for the three months ended March 31, 2024, was 22,820,779 shares. As of March 31, 2024, cash, cash equivalents, short-term investments and restricted cash were $49.7 million compared to $82.3 million as of December 31, 2023. Cash usage in the first quarter 2024 includes $22.0 million paid for Boston O&P. Additionally, the Company had $10.0 million outstanding under the $80.0 million Credit Agreement. Full Year 2024 Financial GuidanceFor the full year of 2024, the Company increased its revenue guidance from $197.0 million to $200.0 million up to $200.0 million to $203.0 million, representing growth of 34% to 36% over 2023 revenue. The Company reiterated annual set deployment to be less than $20.0 million and reiterated $8.0 million to $9.0 million of adjusted EBITDA for the full year of 2024. Conference CallOrthoPediatrics will host a conference call on Tuesday, May 7, 2024, at 8:00 a.m. ET to discuss the results. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at www.orthopediatrics.com, on the Investors page in the Events & Presentations section. The webcast will be available for replay for at least 90 days after the event. Forward-Looking StatementsThis press release includes "forward-looking statements" within the meaning of U.S. federal securities laws. You can identify forward-looking statements by the use of words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "could," "believe," "estimate," "project," "target," "predict," "intend," "future," "goals," "potential,” "objective," "would" and other similar expressions. Forward-looking statements involve risks and uncertainties, many of which are beyond OrthoPediatrics’ control. Important factors could cause actual results to differ materially from those in the forward-looking statements, including, among others: the risks related to COVID-19, the impact such pandemic may have on the demand for our products, and our ability to respond to the related challenges; and the risks, uncertainties and factors set forth under "Risk Factors" in OrthoPediatrics’ Annual Report on Form 10-K filed with the SEC on March 8, 2024, as updated and supplemented by our other SEC reports filed from time to time. Forward-looking statements speak only as of the date they are made. OrthoPediatrics assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable securities laws. Use of Non-GAAP Financial MeasuresThis press release includes certain non-GAAP financial measures such as organic revenue, adjusted loss per share and Adjusted EBITDA, which differ from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Sales on an organic basis excludes from our reported net revenue growth the impacts of revenue from any acquired business that have been owned for less than one year. We believe that providing the non-GAAP organic revenue is useful as a way to measure and evaluate our underlying performance consistently across the periods presented. Adjusted loss per share in this press release represents diluted loss per share on a GAAP basis, plus the accreted interest attributable to acquisition installment payables, the fair value adjustment of contingent consideration, acquisition related costs, and minimum purchase commitment costs. The fair value adjustment of contingent consideration is associated with our estimates of the value of earn-outs in connection with certain acquisitions and the non-recurring professional fees are related to our response to a previously disclosed SEC review. We believe that providing the non-GAAP diluted loss per share excluding these expenses, as well as the GAAP measures, assists our investors because such expenses are not reflective of our ongoing operating results. Adjusted EBITDA in this release represents net loss, plus interest expense, net plus other expense, provision for income taxes (benefit), depreciation and amortization, stock-based compensation expense, fair value adjustment of contingent consideration, acquisition related costs, nonrecurring professional fees, and the cost of minimum purchase commitments. The Company believes the non-GAAP measures provided in this earnings release enable it to further and more consistently analyze the period-to-period financial performance of its core business operating performance. Management uses these metrics as a measure of the Company’s operating performance and for planning purposes, including financial projections. The Company believes these measures are useful to investors as supplemental information because they are frequently used by analysts, investors and other interested parties to evaluate companies in its industry. Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative to, or superior to, net income or loss as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and it should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, the measure is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as debt service requirements, capital expenditures and other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs and other potential cash requirements. In evaluating these non-GAAP measures, you should be aware that in the future the Company may incur expenses that are the same or similar to some of the adjustments in this presentation. The Company’s presentation of non-GAAP diluted loss per share or Adjusted EBITDA should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using these adjusted measures on a supplemental basis. The Company’s definition of these measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation. The schedules below contain reconciliations of reported GAAP net revenue to non-GAAP organic revenue, GAAP diluted loss per share to non-GAAP diluted loss and net loss to non-GAAP Adjusted EBITDA. About OrthoPediatrics Corp.Founded in 2006, OrthoPediatrics is an orthopedic company focused exclusively on advancing the field of pediatric orthopedics. As such it has developed the most comprehensive product offering to the pediatric orthopedic market to improve the lives of children with orthopedic conditions. OrthoPediatrics currently markets 71 systems that serve three of the largest categories within the pediatric orthopedic market. This product offering spans trauma and deformity, scoliosis, and sports medicine/other procedures. OrthoPediatrics’ global sales organization is focused exclusively on pediatric orthopedics and distributes its products in the United States and over 70 countries outside the United States. For more information, please visit www.orthopediatrics.com. Investor ContactPhilip Trip TaylorGilmartin Groupphilip@gilmartinir.com415-937-5406 ORTHOPEDIATRICS CORP.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited) (In Thousands, Except Share Data) March 31, 2024 December 31, 2023 ASSETSCurrent assets: Cash and cash equivalents$21,602 $31,055 Restricted cash 1,962 1,972 Short-term investments 26,141 49,251 Accounts receivable - trade, net of allowances of $1,195 and $1,373, respectively 36,275 34,617 Inventories, net 112,689 105,851 Prepaid expenses and other current assets 5,056 3,750 Total current assets 203,725 226,496 Property and equipment, net 48,721 41,048 Other assets: Amortizable intangible assets, net 70,382 69,275 Goodwill 91,481 83,699 Other intangible assets 18,792 15,287 Other non-current assets 4,084 2,940 Total other assets 184,739 171,201 Total assets$437,185 $438,745 LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities: Accounts payable - trade 19,736 12,649 Accrued compensation and benefits 9,772 11,325 Current portion of long-term debt with affiliate 154 152 Current portion of acquisition installment payable 10,368 10,149 Other current liabilities 5,790 7,391 Total current liabilities 45,820 41,666 Long-term liabilities: Long-term debt, net of current portion 9,579 9,297 Long-term debt with affiliate, net of current portion 572 611 Acquisition installment payment, net of current portion 3,613 3,551 Deferred income taxes 5,202 5,483 Other long-term liabilities 1,815 1,112 Total long-term liabilities 20,781 20,054 Total liabilities 66,601 61,720 Stockholders' equity: Common stock, $0.00025 par value; 50,000,000 shares authorized; 23,540,411 shares and 23,378,408 shares issued as of March 31, 2024 and December 31, 2023, respectively 6 6 Additional paid-in capital 583,086 580,287 Accumulated deficit (205,547) (197,742)Accumulated other comprehensive loss (6,961) (5,526)Total stockholders' equity 370,584 377,025 Total liabilities and stockholders' equity$437,185 $438,745 ORTHOPEDIATRICS CORP.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(In Thousands, Except Share and Per Share Data) Three Months Ended March 31, 2024 2023 Net revenue$44,685 $31,588 Cost of revenue 12,511 8,027 Gross profit 32,174 23,561 Operating expenses: Sales and marketing 14,169 12,549 General and administrative 24,730 17,157 Research and development 2,998 2,446 Total operating expenses 41,897 32,152 Operating loss (9,723) (8,591) Other expense (income): Interest expense (income), net 637 (210)Fair value adjustment of contingent consideration — (670)Other income, net (24) (331)Total other expense (income), net 613 (1,211) Loss before income taxes$(10,336) $(7,380)Provision for income taxes (benefit) (2,531) (574)Net loss$(7,805) $(6,806)Weighted average common stock - basic and diluted 22,820,779 22,506,024 Net loss per share – basic and diluted$(0.34) $(0.30) ORTHOPEDIATRICS CORP.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(In Thousands) Three Months Ended March 31, 2024 2023 OPERATING ACTIVITIES Net loss$(7,805) $(6,806)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 5,028 3,848 Stock-based compensation 2,799 2,113 Fair value adjustment of contingent consideration — (670)Accretion of acquisition installment payable 281 381 Deferred income taxes (2,445) (574)Changes in certain current assets and liabilities: Accounts receivable - trade 1,155 (2,002)Inventories, net (6,631) (5,979)Prepaid expenses and other current assets (953) (33)Accounts payable - trade 6,562 5,541 Accrued expenses and other liabilities (5,049) (1,571)Other 368 (709)Net cash used in operating activities (6,690) (6,461) INVESTING ACTIVITIES Acquisition of Boston O&P, net of cash acquired (20,693) — Sale of short-term marketable securities 23,474 37,250 Purchases of property and equipment (6,460) (4,940)Net cash (used in) provided by investing activities (3,679) 32,310 FINANCING ACTIVITIES Payments on acquisition note (538) — Payments on mortgage notes (35) (36)Net cash used in financing activities (573) (36) Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,479 (138) NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (9,463) 25,675 Cash, cash equivalents and restricted cash, beginning of period$33,027 $10,462 Cash, cash equivalents and restricted cash, end of period$23,564 $36,137 SUPPLEMENTAL DISCLOSURES Cash paid for interest$223 $11 Transfer of instruments from property and equipment to inventory$117 $332 ORTHOPEDIATRICS CORP.NET REVENUE BY GEOGRAPHY AND PRODUCT CATEGORY(Unaudited)(In Thousands) Three Months Ended March 31,Product sales by geographic location: 2024 2023 U.S.$34,305 $23,800 International 10,380 7,788 Total$44,685 $31,588 Three Months Ended March 31,Product sales by category: 2024 2023 Trauma and deformity$33,302 $23,395 Scoliosis 10,203 7,072 Sports medicine/other 1,180 1,121 Total$44,685 $31,588 ORTHOPEDIATRICS CORP.RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA(Unaudited)(In Thousands) Three Months Ended March 31, 2024 2023 Net loss$(7,805) $(6,806)Interest expense (income), net 637 (210)Other income (24) (331)Provision for income taxes (benefit) (2,531) (574)Depreciation and amortization 5,028 3,848 Stock-based compensation 2,799 2,113 Fair value adjustment of contingent consideration — (670)Acquisition related costs 245 — Nonrecurring Pega conversion fees — 277 Minimum purchase commitment cost 543 300 Adjusted EBITDA$(1,108) $(2,053) ORTHOPEDIATRICS CORP.RECONCILIATION OF DILUTED LOSS PER SHARE TO NON-GAAP ADJUSTED DILUTED LOSS PER SHARE(Unaudited) Three Months Ended March 31, 2024 2023 Loss per share, diluted (GAAP)$(0.34) $(0.30)Accretion of interest attributable to acquisition installment payable 0.01 0.02 Fair value adjustment of contingent consideration — (0.03)Acquisition related costs 0.01 — Nonrecurring Pega conversion fees — 0.01 Minimum purchase commitment cost 0.02 0.01 Loss per share, diluted (non-GAAP)$(0.30) $(0.29) Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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OrthoPediatrics Corp. Reports First Quarter 2024 Financial Results and Increases Full Year 2024 Revenue Guidance By: OrthoPediatrics Corp. via GlobeNewswire May 06, 2024 at 16:05 PM EDT WARSAW, Ind., May 06, 2024 (GLOBE NEWSWIRE) -- OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (Nasdaq: KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, today announced its financial results for the first quarter ended March 31, 2024. First Quarter 2024 and Business Highlights Helped nearly 28,000 children in the first quarter of 2024, an increase of 47% from the first quarter 2023Generated total revenue of $44.7 million for the first quarter of 2024, up 41% from $31.6 million in first quarter 2023; domestic revenue increased 44% and international revenue increased 33% in the quarterGrew worldwide Trauma & Deformity revenue 42%, worldwide Scoliosis revenue 44%; Sports Medicine/Other revenue increased 5% in the first quarter of 2024 compared to the first quarter of 2023Launched RESPONSE™ Rib and Pelvic Fixation System to treat children with early onset scoliosis ("EOS")Announced acquisition of Boston Orthotics & Prosthetics ("Boston O&P"), expanding OrthoPediatrics Specialty Bracing Division ("OPSB") with pediatric orthotics management business offering leading technology and pediatric care through dedicated clinicsIncreased full year 2024 revenue guidance to $200.0 million to $203.0 million from $197.0 million to $200.0 million, representing growth of 34% to 36% compared to prior year David Bailey, President & CEO of OrthoPediatrics, commented, “I am excited about our very positive start to the year, outperforming our expectations and delivering healthy revenue growth as we continue to take share across the entire business. We have multiple levers, including continued legacy product growth, new product launches, and a rapidly expanding specialty bracing business that are working together to drive continued growth and profitability. We will continue to advance our strategic initiatives and feel we are positioned well to capitalize on our opportunities for the remainder of 2024 and beyond.” First Quarter 2024 Financial ResultsTotal revenue for the first quarter of 2024 was $44.7 million, a 41% increase compared to $31.6 million for the same period last year. U.S. revenue for the first quarter of 2024 was $34.3 million, a 44% increase compared to $23.8 million for the same period last year, representing 77% of total revenue. The increase in revenue in the first quarter of 2024 was driven primarily by organic growth in Trauma and Deformity and Scoliosis products as well as the addition of Boston O&P. International revenue for the first quarter of 2024 was $10.4 million, a 33% increase compared to $7.8 million for the same period last year, representing 23% of total revenue. Growth in the quarter was primarily driven by increased procedure volumes and additional set sales. Trauma and Deformity revenue for the first quarter of 2024 was $33.3 million, a 42% increase compared to $23.4 million for the same period last year. This growth was driven primarily by growth across numerous product lines, specifically Cannulated Screws, PNP Femur, PediPlate, external fixation and Pega systems, coupled with the addition of Boston O&P. Scoliosis revenue was $10.2 million, a 44% increase compared to $7.1 million for the first quarter of 2023. The growth was driven by increased sales of RESPONSE and ApiFix systems and revenue generated from 7D technology, coupled with the addition of Boston O&P. Sports Medicine/Other revenue for the first quarter of 2024 was $1.2 million, a 5% increase compared to $1.1 million for the same period last year. Gross profit for the first quarter of 2024 was $32.2 million, a 37% increase compared to $23.6 million for the same period last year. Gross profit margin for the first quarter of 2024 was 72%, compared to 75% for the same period last year. The change in gross margin was primarily driven by increased set sales to our international stocking partners as well as lower purchase price adjustments. Total operating expenses for the first quarter of 2024 were $41.9 million, a 30% increase compared to $32.2 million for the same period last year. The increase was mainly driven by the addition of Boston O&P as well as incremental personnel required to support the ongoing growth of the Company. Sales and marketing expenses increased $1.6 million, or 13%, to $14.2 million in the first quarter of 2024. The increase was driven primarily by increased sales commission expenses coupled with additional employees to support the OPSB business lines. Research and development expenses increased $0.6 million, or 23%, to $3.0 million in the first quarter of 2024. The increase was driven by the addition of Boston O&P as well as increased development activities. General and administrative expenses increased $7.6 million, or 44%, to $24.7 million in the first quarter of 2024. The increase was driven primarily by the addition of Boston O&P as well as personnel and resources to support the continued expansion of the business. Total other expense was $0.6 million for the first quarter of 2024, compared to $1.2 million of other income for the same period last year. The change was due primarily to the favorable fair value adjustment of contingent consideration in the first quarter of 2023, which did not repeat in 2024 as well as additional interest expense related to the new term loan with MidCap. Net loss for the first quarter of 2024 was $7.8 million, compared to $6.8 million for the same period last year. Net loss per share for the period was $0.34 per basic and diluted share, compared to $0.30 per basic and diluted share for the same period last year. Adjusted EBITDA for the first quarter of 2024 was a loss of $1.1 million as compared to a loss of $2.1 million for the first quarter of 2023. Weighted average basic and diluted shares outstanding for the three months ended March 31, 2024, was 22,820,779 shares. As of March 31, 2024, cash, cash equivalents, short-term investments and restricted cash were $49.7 million compared to $82.3 million as of December 31, 2023. Cash usage in the first quarter 2024 includes $22.0 million paid for Boston O&P. Additionally, the Company had $10.0 million outstanding under the $80.0 million Credit Agreement. Full Year 2024 Financial GuidanceFor the full year of 2024, the Company increased its revenue guidance from $197.0 million to $200.0 million up to $200.0 million to $203.0 million, representing growth of 34% to 36% over 2023 revenue. The Company reiterated annual set deployment to be less than $20.0 million and reiterated $8.0 million to $9.0 million of adjusted EBITDA for the full year of 2024. Conference CallOrthoPediatrics will host a conference call on Tuesday, May 7, 2024, at 8:00 a.m. ET to discuss the results. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at www.orthopediatrics.com, on the Investors page in the Events & Presentations section. The webcast will be available for replay for at least 90 days after the event. Forward-Looking StatementsThis press release includes "forward-looking statements" within the meaning of U.S. federal securities laws. You can identify forward-looking statements by the use of words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "could," "believe," "estimate," "project," "target," "predict," "intend," "future," "goals," "potential,” "objective," "would" and other similar expressions. Forward-looking statements involve risks and uncertainties, many of which are beyond OrthoPediatrics’ control. Important factors could cause actual results to differ materially from those in the forward-looking statements, including, among others: the risks related to COVID-19, the impact such pandemic may have on the demand for our products, and our ability to respond to the related challenges; and the risks, uncertainties and factors set forth under "Risk Factors" in OrthoPediatrics’ Annual Report on Form 10-K filed with the SEC on March 8, 2024, as updated and supplemented by our other SEC reports filed from time to time. Forward-looking statements speak only as of the date they are made. OrthoPediatrics assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable securities laws. Use of Non-GAAP Financial MeasuresThis press release includes certain non-GAAP financial measures such as organic revenue, adjusted loss per share and Adjusted EBITDA, which differ from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Sales on an organic basis excludes from our reported net revenue growth the impacts of revenue from any acquired business that have been owned for less than one year. We believe that providing the non-GAAP organic revenue is useful as a way to measure and evaluate our underlying performance consistently across the periods presented. Adjusted loss per share in this press release represents diluted loss per share on a GAAP basis, plus the accreted interest attributable to acquisition installment payables, the fair value adjustment of contingent consideration, acquisition related costs, and minimum purchase commitment costs. The fair value adjustment of contingent consideration is associated with our estimates of the value of earn-outs in connection with certain acquisitions and the non-recurring professional fees are related to our response to a previously disclosed SEC review. We believe that providing the non-GAAP diluted loss per share excluding these expenses, as well as the GAAP measures, assists our investors because such expenses are not reflective of our ongoing operating results. Adjusted EBITDA in this release represents net loss, plus interest expense, net plus other expense, provision for income taxes (benefit), depreciation and amortization, stock-based compensation expense, fair value adjustment of contingent consideration, acquisition related costs, nonrecurring professional fees, and the cost of minimum purchase commitments. The Company believes the non-GAAP measures provided in this earnings release enable it to further and more consistently analyze the period-to-period financial performance of its core business operating performance. Management uses these metrics as a measure of the Company’s operating performance and for planning purposes, including financial projections. The Company believes these measures are useful to investors as supplemental information because they are frequently used by analysts, investors and other interested parties to evaluate companies in its industry. Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative to, or superior to, net income or loss as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and it should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, the measure is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as debt service requirements, capital expenditures and other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs and other potential cash requirements. In evaluating these non-GAAP measures, you should be aware that in the future the Company may incur expenses that are the same or similar to some of the adjustments in this presentation. The Company’s presentation of non-GAAP diluted loss per share or Adjusted EBITDA should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using these adjusted measures on a supplemental basis. The Company’s definition of these measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation. The schedules below contain reconciliations of reported GAAP net revenue to non-GAAP organic revenue, GAAP diluted loss per share to non-GAAP diluted loss and net loss to non-GAAP Adjusted EBITDA. About OrthoPediatrics Corp.Founded in 2006, OrthoPediatrics is an orthopedic company focused exclusively on advancing the field of pediatric orthopedics. As such it has developed the most comprehensive product offering to the pediatric orthopedic market to improve the lives of children with orthopedic conditions. OrthoPediatrics currently markets 71 systems that serve three of the largest categories within the pediatric orthopedic market. This product offering spans trauma and deformity, scoliosis, and sports medicine/other procedures. OrthoPediatrics’ global sales organization is focused exclusively on pediatric orthopedics and distributes its products in the United States and over 70 countries outside the United States. For more information, please visit www.orthopediatrics.com. Investor ContactPhilip Trip TaylorGilmartin Groupphilip@gilmartinir.com415-937-5406 ORTHOPEDIATRICS CORP.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited) (In Thousands, Except Share Data) March 31, 2024 December 31, 2023 ASSETSCurrent assets: Cash and cash equivalents$21,602 $31,055 Restricted cash 1,962 1,972 Short-term investments 26,141 49,251 Accounts receivable - trade, net of allowances of $1,195 and $1,373, respectively 36,275 34,617 Inventories, net 112,689 105,851 Prepaid expenses and other current assets 5,056 3,750 Total current assets 203,725 226,496 Property and equipment, net 48,721 41,048 Other assets: Amortizable intangible assets, net 70,382 69,275 Goodwill 91,481 83,699 Other intangible assets 18,792 15,287 Other non-current assets 4,084 2,940 Total other assets 184,739 171,201 Total assets$437,185 $438,745 LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities: Accounts payable - trade 19,736 12,649 Accrued compensation and benefits 9,772 11,325 Current portion of long-term debt with affiliate 154 152 Current portion of acquisition installment payable 10,368 10,149 Other current liabilities 5,790 7,391 Total current liabilities 45,820 41,666 Long-term liabilities: Long-term debt, net of current portion 9,579 9,297 Long-term debt with affiliate, net of current portion 572 611 Acquisition installment payment, net of current portion 3,613 3,551 Deferred income taxes 5,202 5,483 Other long-term liabilities 1,815 1,112 Total long-term liabilities 20,781 20,054 Total liabilities 66,601 61,720 Stockholders' equity: Common stock, $0.00025 par value; 50,000,000 shares authorized; 23,540,411 shares and 23,378,408 shares issued as of March 31, 2024 and December 31, 2023, respectively 6 6 Additional paid-in capital 583,086 580,287 Accumulated deficit (205,547) (197,742)Accumulated other comprehensive loss (6,961) (5,526)Total stockholders' equity 370,584 377,025 Total liabilities and stockholders' equity$437,185 $438,745 ORTHOPEDIATRICS CORP.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(In Thousands, Except Share and Per Share Data) Three Months Ended March 31, 2024 2023 Net revenue$44,685 $31,588 Cost of revenue 12,511 8,027 Gross profit 32,174 23,561 Operating expenses: Sales and marketing 14,169 12,549 General and administrative 24,730 17,157 Research and development 2,998 2,446 Total operating expenses 41,897 32,152 Operating loss (9,723) (8,591) Other expense (income): Interest expense (income), net 637 (210)Fair value adjustment of contingent consideration — (670)Other income, net (24) (331)Total other expense (income), net 613 (1,211) Loss before income taxes$(10,336) $(7,380)Provision for income taxes (benefit) (2,531) (574)Net loss$(7,805) $(6,806)Weighted average common stock - basic and diluted 22,820,779 22,506,024 Net loss per share – basic and diluted$(0.34) $(0.30) ORTHOPEDIATRICS CORP.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(In Thousands) Three Months Ended March 31, 2024 2023 OPERATING ACTIVITIES Net loss$(7,805) $(6,806)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 5,028 3,848 Stock-based compensation 2,799 2,113 Fair value adjustment of contingent consideration — (670)Accretion of acquisition installment payable 281 381 Deferred income taxes (2,445) (574)Changes in certain current assets and liabilities: Accounts receivable - trade 1,155 (2,002)Inventories, net (6,631) (5,979)Prepaid expenses and other current assets (953) (33)Accounts payable - trade 6,562 5,541 Accrued expenses and other liabilities (5,049) (1,571)Other 368 (709)Net cash used in operating activities (6,690) (6,461) INVESTING ACTIVITIES Acquisition of Boston O&P, net of cash acquired (20,693) — Sale of short-term marketable securities 23,474 37,250 Purchases of property and equipment (6,460) (4,940)Net cash (used in) provided by investing activities (3,679) 32,310 FINANCING ACTIVITIES Payments on acquisition note (538) — Payments on mortgage notes (35) (36)Net cash used in financing activities (573) (36) Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,479 (138) NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (9,463) 25,675 Cash, cash equivalents and restricted cash, beginning of period$33,027 $10,462 Cash, cash equivalents and restricted cash, end of period$23,564 $36,137 SUPPLEMENTAL DISCLOSURES Cash paid for interest$223 $11 Transfer of instruments from property and equipment to inventory$117 $332 ORTHOPEDIATRICS CORP.NET REVENUE BY GEOGRAPHY AND PRODUCT CATEGORY(Unaudited)(In Thousands) Three Months Ended March 31,Product sales by geographic location: 2024 2023 U.S.$34,305 $23,800 International 10,380 7,788 Total$44,685 $31,588 Three Months Ended March 31,Product sales by category: 2024 2023 Trauma and deformity$33,302 $23,395 Scoliosis 10,203 7,072 Sports medicine/other 1,180 1,121 Total$44,685 $31,588 ORTHOPEDIATRICS CORP.RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA(Unaudited)(In Thousands) Three Months Ended March 31, 2024 2023 Net loss$(7,805) $(6,806)Interest expense (income), net 637 (210)Other income (24) (331)Provision for income taxes (benefit) (2,531) (574)Depreciation and amortization 5,028 3,848 Stock-based compensation 2,799 2,113 Fair value adjustment of contingent consideration — (670)Acquisition related costs 245 — Nonrecurring Pega conversion fees — 277 Minimum purchase commitment cost 543 300 Adjusted EBITDA$(1,108) $(2,053) ORTHOPEDIATRICS CORP.RECONCILIATION OF DILUTED LOSS PER SHARE TO NON-GAAP ADJUSTED DILUTED LOSS PER SHARE(Unaudited) Three Months Ended March 31, 2024 2023 Loss per share, diluted (GAAP)$(0.34) $(0.30)Accretion of interest attributable to acquisition installment payable 0.01 0.02 Fair value adjustment of contingent consideration — (0.03)Acquisition related costs 0.01 — Nonrecurring Pega conversion fees — 0.01 Minimum purchase commitment cost 0.02 0.01 Loss per share, diluted (non-GAAP)$(0.30) $(0.29)
WARSAW, Ind., May 06, 2024 (GLOBE NEWSWIRE) -- OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (Nasdaq: KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, today announced its financial results for the first quarter ended March 31, 2024. First Quarter 2024 and Business Highlights Helped nearly 28,000 children in the first quarter of 2024, an increase of 47% from the first quarter 2023Generated total revenue of $44.7 million for the first quarter of 2024, up 41% from $31.6 million in first quarter 2023; domestic revenue increased 44% and international revenue increased 33% in the quarterGrew worldwide Trauma & Deformity revenue 42%, worldwide Scoliosis revenue 44%; Sports Medicine/Other revenue increased 5% in the first quarter of 2024 compared to the first quarter of 2023Launched RESPONSE™ Rib and Pelvic Fixation System to treat children with early onset scoliosis ("EOS")Announced acquisition of Boston Orthotics & Prosthetics ("Boston O&P"), expanding OrthoPediatrics Specialty Bracing Division ("OPSB") with pediatric orthotics management business offering leading technology and pediatric care through dedicated clinicsIncreased full year 2024 revenue guidance to $200.0 million to $203.0 million from $197.0 million to $200.0 million, representing growth of 34% to 36% compared to prior year David Bailey, President & CEO of OrthoPediatrics, commented, “I am excited about our very positive start to the year, outperforming our expectations and delivering healthy revenue growth as we continue to take share across the entire business. We have multiple levers, including continued legacy product growth, new product launches, and a rapidly expanding specialty bracing business that are working together to drive continued growth and profitability. We will continue to advance our strategic initiatives and feel we are positioned well to capitalize on our opportunities for the remainder of 2024 and beyond.” First Quarter 2024 Financial ResultsTotal revenue for the first quarter of 2024 was $44.7 million, a 41% increase compared to $31.6 million for the same period last year. U.S. revenue for the first quarter of 2024 was $34.3 million, a 44% increase compared to $23.8 million for the same period last year, representing 77% of total revenue. The increase in revenue in the first quarter of 2024 was driven primarily by organic growth in Trauma and Deformity and Scoliosis products as well as the addition of Boston O&P. International revenue for the first quarter of 2024 was $10.4 million, a 33% increase compared to $7.8 million for the same period last year, representing 23% of total revenue. Growth in the quarter was primarily driven by increased procedure volumes and additional set sales. Trauma and Deformity revenue for the first quarter of 2024 was $33.3 million, a 42% increase compared to $23.4 million for the same period last year. This growth was driven primarily by growth across numerous product lines, specifically Cannulated Screws, PNP Femur, PediPlate, external fixation and Pega systems, coupled with the addition of Boston O&P. Scoliosis revenue was $10.2 million, a 44% increase compared to $7.1 million for the first quarter of 2023. The growth was driven by increased sales of RESPONSE and ApiFix systems and revenue generated from 7D technology, coupled with the addition of Boston O&P. Sports Medicine/Other revenue for the first quarter of 2024 was $1.2 million, a 5% increase compared to $1.1 million for the same period last year. Gross profit for the first quarter of 2024 was $32.2 million, a 37% increase compared to $23.6 million for the same period last year. Gross profit margin for the first quarter of 2024 was 72%, compared to 75% for the same period last year. The change in gross margin was primarily driven by increased set sales to our international stocking partners as well as lower purchase price adjustments. Total operating expenses for the first quarter of 2024 were $41.9 million, a 30% increase compared to $32.2 million for the same period last year. The increase was mainly driven by the addition of Boston O&P as well as incremental personnel required to support the ongoing growth of the Company. Sales and marketing expenses increased $1.6 million, or 13%, to $14.2 million in the first quarter of 2024. The increase was driven primarily by increased sales commission expenses coupled with additional employees to support the OPSB business lines. Research and development expenses increased $0.6 million, or 23%, to $3.0 million in the first quarter of 2024. The increase was driven by the addition of Boston O&P as well as increased development activities. General and administrative expenses increased $7.6 million, or 44%, to $24.7 million in the first quarter of 2024. The increase was driven primarily by the addition of Boston O&P as well as personnel and resources to support the continued expansion of the business. Total other expense was $0.6 million for the first quarter of 2024, compared to $1.2 million of other income for the same period last year. The change was due primarily to the favorable fair value adjustment of contingent consideration in the first quarter of 2023, which did not repeat in 2024 as well as additional interest expense related to the new term loan with MidCap. Net loss for the first quarter of 2024 was $7.8 million, compared to $6.8 million for the same period last year. Net loss per share for the period was $0.34 per basic and diluted share, compared to $0.30 per basic and diluted share for the same period last year. Adjusted EBITDA for the first quarter of 2024 was a loss of $1.1 million as compared to a loss of $2.1 million for the first quarter of 2023. Weighted average basic and diluted shares outstanding for the three months ended March 31, 2024, was 22,820,779 shares. As of March 31, 2024, cash, cash equivalents, short-term investments and restricted cash were $49.7 million compared to $82.3 million as of December 31, 2023. Cash usage in the first quarter 2024 includes $22.0 million paid for Boston O&P. Additionally, the Company had $10.0 million outstanding under the $80.0 million Credit Agreement. Full Year 2024 Financial GuidanceFor the full year of 2024, the Company increased its revenue guidance from $197.0 million to $200.0 million up to $200.0 million to $203.0 million, representing growth of 34% to 36% over 2023 revenue. The Company reiterated annual set deployment to be less than $20.0 million and reiterated $8.0 million to $9.0 million of adjusted EBITDA for the full year of 2024. Conference CallOrthoPediatrics will host a conference call on Tuesday, May 7, 2024, at 8:00 a.m. ET to discuss the results. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at www.orthopediatrics.com, on the Investors page in the Events & Presentations section. The webcast will be available for replay for at least 90 days after the event. Forward-Looking StatementsThis press release includes "forward-looking statements" within the meaning of U.S. federal securities laws. You can identify forward-looking statements by the use of words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "could," "believe," "estimate," "project," "target," "predict," "intend," "future," "goals," "potential,” "objective," "would" and other similar expressions. Forward-looking statements involve risks and uncertainties, many of which are beyond OrthoPediatrics’ control. Important factors could cause actual results to differ materially from those in the forward-looking statements, including, among others: the risks related to COVID-19, the impact such pandemic may have on the demand for our products, and our ability to respond to the related challenges; and the risks, uncertainties and factors set forth under "Risk Factors" in OrthoPediatrics’ Annual Report on Form 10-K filed with the SEC on March 8, 2024, as updated and supplemented by our other SEC reports filed from time to time. Forward-looking statements speak only as of the date they are made. OrthoPediatrics assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable securities laws. Use of Non-GAAP Financial MeasuresThis press release includes certain non-GAAP financial measures such as organic revenue, adjusted loss per share and Adjusted EBITDA, which differ from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Sales on an organic basis excludes from our reported net revenue growth the impacts of revenue from any acquired business that have been owned for less than one year. We believe that providing the non-GAAP organic revenue is useful as a way to measure and evaluate our underlying performance consistently across the periods presented. Adjusted loss per share in this press release represents diluted loss per share on a GAAP basis, plus the accreted interest attributable to acquisition installment payables, the fair value adjustment of contingent consideration, acquisition related costs, and minimum purchase commitment costs. The fair value adjustment of contingent consideration is associated with our estimates of the value of earn-outs in connection with certain acquisitions and the non-recurring professional fees are related to our response to a previously disclosed SEC review. We believe that providing the non-GAAP diluted loss per share excluding these expenses, as well as the GAAP measures, assists our investors because such expenses are not reflective of our ongoing operating results. Adjusted EBITDA in this release represents net loss, plus interest expense, net plus other expense, provision for income taxes (benefit), depreciation and amortization, stock-based compensation expense, fair value adjustment of contingent consideration, acquisition related costs, nonrecurring professional fees, and the cost of minimum purchase commitments. The Company believes the non-GAAP measures provided in this earnings release enable it to further and more consistently analyze the period-to-period financial performance of its core business operating performance. Management uses these metrics as a measure of the Company’s operating performance and for planning purposes, including financial projections. The Company believes these measures are useful to investors as supplemental information because they are frequently used by analysts, investors and other interested parties to evaluate companies in its industry. Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative to, or superior to, net income or loss as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and it should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, the measure is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as debt service requirements, capital expenditures and other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs and other potential cash requirements. In evaluating these non-GAAP measures, you should be aware that in the future the Company may incur expenses that are the same or similar to some of the adjustments in this presentation. The Company’s presentation of non-GAAP diluted loss per share or Adjusted EBITDA should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using these adjusted measures on a supplemental basis. The Company’s definition of these measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation. The schedules below contain reconciliations of reported GAAP net revenue to non-GAAP organic revenue, GAAP diluted loss per share to non-GAAP diluted loss and net loss to non-GAAP Adjusted EBITDA. About OrthoPediatrics Corp.Founded in 2006, OrthoPediatrics is an orthopedic company focused exclusively on advancing the field of pediatric orthopedics. As such it has developed the most comprehensive product offering to the pediatric orthopedic market to improve the lives of children with orthopedic conditions. OrthoPediatrics currently markets 71 systems that serve three of the largest categories within the pediatric orthopedic market. This product offering spans trauma and deformity, scoliosis, and sports medicine/other procedures. OrthoPediatrics’ global sales organization is focused exclusively on pediatric orthopedics and distributes its products in the United States and over 70 countries outside the United States. For more information, please visit www.orthopediatrics.com. Investor ContactPhilip Trip TaylorGilmartin Groupphilip@gilmartinir.com415-937-5406 ORTHOPEDIATRICS CORP.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited) (In Thousands, Except Share Data) March 31, 2024 December 31, 2023 ASSETSCurrent assets: Cash and cash equivalents$21,602 $31,055 Restricted cash 1,962 1,972 Short-term investments 26,141 49,251 Accounts receivable - trade, net of allowances of $1,195 and $1,373, respectively 36,275 34,617 Inventories, net 112,689 105,851 Prepaid expenses and other current assets 5,056 3,750 Total current assets 203,725 226,496 Property and equipment, net 48,721 41,048 Other assets: Amortizable intangible assets, net 70,382 69,275 Goodwill 91,481 83,699 Other intangible assets 18,792 15,287 Other non-current assets 4,084 2,940 Total other assets 184,739 171,201 Total assets$437,185 $438,745 LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities: Accounts payable - trade 19,736 12,649 Accrued compensation and benefits 9,772 11,325 Current portion of long-term debt with affiliate 154 152 Current portion of acquisition installment payable 10,368 10,149 Other current liabilities 5,790 7,391 Total current liabilities 45,820 41,666 Long-term liabilities: Long-term debt, net of current portion 9,579 9,297 Long-term debt with affiliate, net of current portion 572 611 Acquisition installment payment, net of current portion 3,613 3,551 Deferred income taxes 5,202 5,483 Other long-term liabilities 1,815 1,112 Total long-term liabilities 20,781 20,054 Total liabilities 66,601 61,720 Stockholders' equity: Common stock, $0.00025 par value; 50,000,000 shares authorized; 23,540,411 shares and 23,378,408 shares issued as of March 31, 2024 and December 31, 2023, respectively 6 6 Additional paid-in capital 583,086 580,287 Accumulated deficit (205,547) (197,742)Accumulated other comprehensive loss (6,961) (5,526)Total stockholders' equity 370,584 377,025 Total liabilities and stockholders' equity$437,185 $438,745 ORTHOPEDIATRICS CORP.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(In Thousands, Except Share and Per Share Data) Three Months Ended March 31, 2024 2023 Net revenue$44,685 $31,588 Cost of revenue 12,511 8,027 Gross profit 32,174 23,561 Operating expenses: Sales and marketing 14,169 12,549 General and administrative 24,730 17,157 Research and development 2,998 2,446 Total operating expenses 41,897 32,152 Operating loss (9,723) (8,591) Other expense (income): Interest expense (income), net 637 (210)Fair value adjustment of contingent consideration — (670)Other income, net (24) (331)Total other expense (income), net 613 (1,211) Loss before income taxes$(10,336) $(7,380)Provision for income taxes (benefit) (2,531) (574)Net loss$(7,805) $(6,806)Weighted average common stock - basic and diluted 22,820,779 22,506,024 Net loss per share – basic and diluted$(0.34) $(0.30) ORTHOPEDIATRICS CORP.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(In Thousands) Three Months Ended March 31, 2024 2023 OPERATING ACTIVITIES Net loss$(7,805) $(6,806)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 5,028 3,848 Stock-based compensation 2,799 2,113 Fair value adjustment of contingent consideration — (670)Accretion of acquisition installment payable 281 381 Deferred income taxes (2,445) (574)Changes in certain current assets and liabilities: Accounts receivable - trade 1,155 (2,002)Inventories, net (6,631) (5,979)Prepaid expenses and other current assets (953) (33)Accounts payable - trade 6,562 5,541 Accrued expenses and other liabilities (5,049) (1,571)Other 368 (709)Net cash used in operating activities (6,690) (6,461) INVESTING ACTIVITIES Acquisition of Boston O&P, net of cash acquired (20,693) — Sale of short-term marketable securities 23,474 37,250 Purchases of property and equipment (6,460) (4,940)Net cash (used in) provided by investing activities (3,679) 32,310 FINANCING ACTIVITIES Payments on acquisition note (538) — Payments on mortgage notes (35) (36)Net cash used in financing activities (573) (36) Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,479 (138) NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (9,463) 25,675 Cash, cash equivalents and restricted cash, beginning of period$33,027 $10,462 Cash, cash equivalents and restricted cash, end of period$23,564 $36,137 SUPPLEMENTAL DISCLOSURES Cash paid for interest$223 $11 Transfer of instruments from property and equipment to inventory$117 $332 ORTHOPEDIATRICS CORP.NET REVENUE BY GEOGRAPHY AND PRODUCT CATEGORY(Unaudited)(In Thousands) Three Months Ended March 31,Product sales by geographic location: 2024 2023 U.S.$34,305 $23,800 International 10,380 7,788 Total$44,685 $31,588 Three Months Ended March 31,Product sales by category: 2024 2023 Trauma and deformity$33,302 $23,395 Scoliosis 10,203 7,072 Sports medicine/other 1,180 1,121 Total$44,685 $31,588 ORTHOPEDIATRICS CORP.RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA(Unaudited)(In Thousands) Three Months Ended March 31, 2024 2023 Net loss$(7,805) $(6,806)Interest expense (income), net 637 (210)Other income (24) (331)Provision for income taxes (benefit) (2,531) (574)Depreciation and amortization 5,028 3,848 Stock-based compensation 2,799 2,113 Fair value adjustment of contingent consideration — (670)Acquisition related costs 245 — Nonrecurring Pega conversion fees — 277 Minimum purchase commitment cost 543 300 Adjusted EBITDA$(1,108) $(2,053) ORTHOPEDIATRICS CORP.RECONCILIATION OF DILUTED LOSS PER SHARE TO NON-GAAP ADJUSTED DILUTED LOSS PER SHARE(Unaudited) Three Months Ended March 31, 2024 2023 Loss per share, diluted (GAAP)$(0.34) $(0.30)Accretion of interest attributable to acquisition installment payable 0.01 0.02 Fair value adjustment of contingent consideration — (0.03)Acquisition related costs 0.01 — Nonrecurring Pega conversion fees — 0.01 Minimum purchase commitment cost 0.02 0.01 Loss per share, diluted (non-GAAP)$(0.30) $(0.29)
