OrthoPediatrics Corp. (NASDAQ:KIDS) Q3 2021 Earnings Conference Call November 4, 2021 8:00 AM ET Corporate Participants Matt Bacso - IR, Gilmartin Group David Bailey - President and Chief Executive Officer Fred Hite - Chief Operating and Financial Officer Conference Call Participants Simran Kaur - Piper Sandler David Saxon - Needham Ryan Zimmerman - BTIG Sam Brodovsky - Truist Dave Turkaly - JMP Securities Operator Good afternoon, and welcome to the OrthoPediatrics Corporation's Third Quarter 2021 Earnings ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number: 001-38242 OrthoPediatrics Corp. (Exact name of registrant as specified in its charter) (State or other jurisdic ...

OrthoPediatrics Corp. (NASDAQ:KIDS) Q2 2021 Results Conference Call August 5, 2021 8:00 AM ET Company Participants Matt Bacso - Gilmartin Group David Bailey - President and Chief Executive Officer Fred Hite - Chief Operating and Financial Officer Conference Call Participants Drew Stafford - Piper Sandler Rick Wise - Stifel Ryan Zimmerman - BTIG Mike Matson - Needham Sam Brodovsky - Truist Daniel Stauder - JMP Securities Operator Good morning, and welcome to the OrthoPediatrics Corporation's Second Quarter 2 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number: 001-38242 OrthoPediatrics Corp. (Exact name of registrant as specified in its charter) (State or other jurisdiction ...

| --- | --- | --- | |-----------------------------------|-------|---------------------------------------------| | | | | | | | Mark Throdahl, CEO | | OrthoPediatrics Corp. May 2021 | | Fred Hite, COO & CFO Dave Bailey, President | | | | | Disclaimer Forward-Looking Statements This presentation 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," "ant ...

OrthoPediatrics Corp. (NASDAQ:KIDS) Q1 2021 Earnings Conference Call May 6, 2021 8:00 AM ET Company Participants Christine Petraglia – Senior Vice President-Investor Relations Mark Throdahl – Chief Executive Officer Fred Hite – Chief Operating Officer and Chief Financial Officer David Bailey – President. Conference Call Participants Matthew O'Brien – Piper Sandler Rick Wise – Stifel Kaila Krum – Truist Securities Ryan Zimmerman – BTIG Mike Matson – Needham & Company Dave Turkaly – JMP Securities Operator We ...

For the quarterly period ended March 31, 2021 OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number: 001-38242 OrthoPediatrics Corp. (Exact name of registrant as specified in its charter) Delaware 26-1761833 (State o ...

| --- | --- | |-------------------------------------|-----------------------------------------------------------------| | | | | | | | OrthoPediatrics Corp. April 2021 | Mark Throdahl, CEO Fred Hite, COO & CFO Dave Bailey, President | | | | | | | Disclaimer Forward-Looking Statements This presentation 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," "pla ...

PART I [Business](index=9&type=section&id=Item%201.%20Business) OrthoPediatrics Corp. is a global medical device company exclusively focused on pediatric orthopedics, addressing an estimated **$3.3 billion** global market through its trauma, deformity, scoliosis, and sports medicine product lines - OrthoPediatrics is the only global medical device company exclusively focused on the pediatric orthopedic market, estimated at a **$3.3 billion** global opportunity[33](index=33&type=chunk) - The company markets **35 surgical systems** across trauma and deformity correction, scoliosis, and sports medicine categories[36](index=36&type=chunk) - In 2020, the company completed strategic acquisitions including Telos Partners, ApiFix, and Band-Lok intellectual property assets[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - The company utilizes independent sales agencies in the U.S. and a mix of distributors and direct sales internationally, expanding its direct sales model in key markets[37](index=37&type=chunk)[81](index=81&type=chunk) Revenue by Product Category (2018-2020) | Product Category | 2020 Revenue | 2019 Revenue | 2018 Revenue | | :--- | :--- | :--- | :--- | | Trauma and Deformity | $47.7 million (67%) | $49.4 million (68%) | $39.7 million (69%) | | Scoliosis | $20.7 million (29%) | $21.5 million (30%) | $16.7 million (29%) | | Sports Medicine/Other | $2.7 million (4%) | $1.7 million (2%) | $1.2 million (2%) | - The COVID-19 pandemic negatively impacted business by postponing elective surgeries, though R&D, acquisitions, and capital raises continued in 2020[31](index=31&type=chunk)[156](index=156&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including the ongoing impact of the COVID-19 pandemic, a history of net losses, intense competition, extensive government regulation, and reliance on third-party sales and manufacturing - The COVID-19 pandemic significantly disrupted business by postponing elective surgeries, with continued impact remaining highly uncertain[155](index=155&type=chunk)[156](index=156&type=chunk) - The company has a history of net losses, including **$32.9 million** in 2020, and an accumulated deficit of **$161.8 million** as of December 31, 2020[158](index=158&type=chunk) - The business faces intense competition from larger companies with greater financial resources and established distribution networks[179](index=179&type=chunk)[180](index=180&type=chunk) - Operations are subject to extensive and complex government regulation by the FDA and comparable authorities abroad, with non-compliance potentially leading to significant penalties[246](index=246&type=chunk) - The company relies on third-party independent sales agencies and distributors, with two U.S. agencies accounting for **14.2%** and **13.8%** of global revenue in 2020, creating concentration risk[293](index=293&type=chunk)[297](index=297&type=chunk) - Protecting intellectual property is critical, with **28 issued U.S. patents** and **56 issued foreign patents** as of December 31, 2020, but risks of infringement claims exist[307](index=307&type=chunk)[308](index=308&type=chunk) [Unresolved Staff Comments](index=77&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None [Properties](index=77&type=section&id=Item%202.%20Properties) The company owns a **22,000 square foot** office in Warsaw, Indiana, undergoing a **20,000 square foot** expansion, and maintains offices in the Netherlands and Israel - The main facility is a **22,000 sq. ft.** company-owned office in Warsaw, Indiana[350](index=350&type=chunk) - An expansion of the Warsaw facility is in process, adding another **20,000 square feet**[350](index=350&type=chunk) - The company also maintains two offices in the Netherlands and one in Israel[350](index=350&type=chunk) [Legal Proceedings](index=78&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in several legal proceedings, including patent infringement suits by K2M, Inc. and Dr. Mark Barry, a software ownership dispute with IMED Surgical, and has accrued **$6.3 million** for settlement costs - K2M, Inc. filed a patent infringement suit regarding instruments in the RESPONSE™ spine systems, with settlement negotiations underway post-year-end[352](index=352&type=chunk)[353](index=353&type=chunk) - IMED Surgical, LLC filed a lawsuit claiming ownership of the patented point-and-click planning software for the Orthex Hexapod technology[354](index=354&type=chunk) - Dr. Mark Barry filed a patent infringement suit concerning spinal deformity correction systems, with a verbal settlement reached in February 2021[358](index=358&type=chunk)[359](index=359&type=chunk) - The company recorded an accrual of **$6.3 million** for legal settlement costs related to various litigation matters[359](index=359&type=chunk)[655](index=655&type=chunk) [Mine Safety Disclosures](index=79&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=80&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under "KIDS", has never paid cash dividends, and had **19,658,335 shares** outstanding as of March 9, 2021, with no equity repurchases in Q4 2020 - The company's common stock is listed on the Nasdaq Global Market under the symbol **"KIDS"**[364](index=364&type=chunk) - The company has never paid cash dividends and does not intend to in the foreseeable future[365](index=365&type=chunk) - As of March 9, 2021, there were **19,658,335 shares** of common stock outstanding[366](index=366&type=chunk) [Selected Financial Data](index=82&type=section&id=Item%206.%20Selected%20Financial%20Data) This section provides a five-year summary of key financial data, showing **$71.1 million** in 2020 revenue, consistent net losses, and significant asset growth to **$320.4 million** in 2020 Selected Financial Data (2016-2020) | (In Thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net revenue** | $71,078 | $72,552 | $57,559 | $45,620 | $37,298 | | **Gross profit** | $55,031 | $54,619 | $42,680 | $34,450 | $26,367 | | **Operating loss** | $(26,755) | $(9,077) | $(9,553) | $(6,472) | $(6,127) | | **Net loss** | $(32,944) | $(13,731) | $(12,025) | $(8,932) | $(6,572) | | **Total assets** | $320,412 | $194,564 | $112,105 | $82,301 | $30,676 | | **Total stockholders' equity (deficit)** | $234,768 | $142,361 | $81,732 | $47,495 | $(65,309) | Reconciliation of Net Loss from Continuing Operations to Adjusted EBITDA (2016-2020) | (In Thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Loss from Continuing Operations** | $(32,944) | $(12,685) | $(12,025) | $(8,932) | $(6,572) | | Interest expense, net | 3,412 | 3,538 | 2,255 | 2,490 | 1,476 | | Depreciation and amortization | 8,010 | 4,671 | 2,892 | 2,405 | 1,902 | | Stock-based compensation | 6,196 | 2,603 | 1,199 | 1,429 | 1,251 | | Fair value adjustment of contingent consideration | 3,520 | — | — | — | — | | Accrued legal settlement costs | 6,342 | — | — | — | — | | **Adjusted EBITDA** | **$(5,871)** | **$(1,066)** | **$(3,476)** | **$(58)** | **$(995)** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=83&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **2%** decrease in 2020 net revenue to **$71.1 million** due to COVID-19 and a distributor conversion, alongside increased operating expenses, a **$32.9 million** net loss, and strengthened liquidity from a **$70.2 million** equity offering - The COVID-19 pandemic caused significant business disruption, leading to deferred elective surgeries and reduced revenue in 2020[395](index=395&type=chunk)[399](index=399&type=chunk) Results of Operations Comparison (2019 vs. 2020) | (in thousands) | 2020 | 2019 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Net revenue** | $71,078 | $72,552 | $(1,474) | (2)% | | **Gross profit** | $55,031 | $54,619 | $412 | 0.8% | | **Operating loss** | $(26,755) | $(9,077) | $(17,678) | 194.8% | | **Net loss** | $(32,944) | $(13,731) | $(19,213) | 140% | - 2020 revenue was adversely affected by a **$2.7 million** reduction due to inventory repurchase from a European distributor conversion[420](index=420&type=chunk) - General and administrative expenses increased **44%** in 2020 to **$38.3 million**, driven by acquisitions, increased stock-based compensation, and legal expenses[424](index=424&type=chunk) - The company accrued **$6.3 million** for legal settlement expenses in 2020[412](index=412&type=chunk) - Net cash used in operating activities was **$18.4 million** in 2020, while net cash provided by financing activities was **$46.7 million**, primarily from a **$70.2 million** net follow-on offering[437](index=437&type=chunk)[438](index=438&type=chunk)[440](index=440&type=chunk) - In August 2020, the company amended its loan agreement with Squadron, increasing its revolving credit facility from **$15 million** to **$25 million** and extending maturity to January 2024[444](index=444&type=chunk) [Quantitative and Qualitative Disclosure about Market Risk](index=97&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company's primary market risks are minimal interest rate risk and growing foreign currency risk from international business, with no current hedging and an estimated immaterial impact from a **10%** adverse exchange rate change - The company's investment portfolio, primarily high-quality, short-term debt instruments, results in no material exposure to interest rate risk[471](index=471&type=chunk) - Expanding international business exposes the company to foreign currency exchange risk, primarily with Pound Sterling, Euro, Australian Dollar, Canadian Dollar, and Israeli Shekel[474](index=474&type=chunk) - The company does not currently hedge foreign currency exposure, and a hypothetical **10%** adverse change in exchange rates would have had an immaterial effect on net loss[474](index=474&type=chunk) [Financial Statements and Supplementary Data](index=99&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal year 2020, detailing financial position, operations, and cash flows, with **$320.4 million** in total assets and a **$32.9 million** net loss Consolidated Balance Sheet Data (as of Dec 31) | (in thousands) | 2020 | 2019 | | :--- | :--- | :--- | | **Total Current Assets** | $158,429 | $128,058 | | **Total Assets** | $320,412 | $182,154 | | **Total Current Liabilities** | $35,028 | $13,663 | | **Total Liabilities** | $85,644 | $39,793 | | **Total Stockholders' Equity** | $234,768 | $142,361 | Consolidated Statement of Operations Data (Year Ended Dec 31) | (in thousands) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Net revenue** | $71,078 | $72,552 | $57,559 | | **Gross profit** | $55,031 | $54,619 | $42,680 | | **Operating loss** | $(26,755) | $(9,077) | $(9,553) | | **Net loss** | $(32,944) | $(13,731) | $(12,025) | | **Net loss per share** | $(1.82) | $(0.94) | $(0.96) | Consolidated Statement of Cash Flows Data (Year Ended Dec 31) | (in thousands) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Net cash used in operating activities** | $(18,442) | $(17,769) | $(15,583) | | **Net cash used in investing activities** | $(69,834) | $(61,922) | $(5,965) | | **Net cash provided by financing activities** | $46,732 | $91,019 | $39,657 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=134&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no disagreements with its independent registered public accounting firm regarding accounting principles, financial disclosure, or auditing scope - There have been no disagreements with the company's independent registered public accounting firm[661](index=661&type=chunk) [Controls and Procedures](index=135&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2020, with no auditor attestation required as an emerging growth company - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[663](index=663&type=chunk) - Based on the COSO framework, management concluded that the company's internal control over financial reporting was effective as of December 31, 2020[666](index=666&type=chunk) - No material changes in internal control over financial reporting occurred during the most recent fiscal quarter[667](index=667&type=chunk) [Other Information](index=136&type=section&id=Item%209B.%20Other%20Information) There is no other information to report under this item - None PART III [Directors, Executive Officers and Corporate Governance](index=137&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's definitive proxy statement for its 2021 Annual Meeting of Stockholders - Information is incorporated by reference from the registrant's definitive proxy statement[670](index=670&type=chunk) [Executive Compensation](index=137&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the company's definitive proxy statement for its 2021 Annual Meeting of Stockholders - Information is incorporated by reference from the registrant's definitive proxy statement[671](index=671&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=137&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item is incorporated by reference from the company's definitive proxy statement for its 2021 Annual Meeting of Stockholders - Information is incorporated by reference from the registrant's definitive proxy statement[672](index=672&type=chunk) [Certain Relationships, Related Transactions and Director Independence](index=137&type=section&id=Item%2013.%20Certain%20Relationships%2C%20Related%20Transactions%20and%20Director%20Independence) Information for this item is incorporated by reference from the company's definitive proxy statement for its 2021 Annual Meeting of Stockholders - Information is incorporated by reference from the registrant's definitive proxy statement[673](index=673&type=chunk) [Principal Accountant Fees and Services](index=137&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information for this item is incorporated by reference from the company's definitive proxy statement for its 2021 Annual Meeting of Stockholders - Information is incorporated by reference from the registrant's definitive proxy statement[674](index=674&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=138&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements filed under Item 8 and provides a detailed list of all exhibits filed with the Form 10-K, including acquisition and loan agreements - This item lists the financial statements and schedules filed with the report[677](index=677&type=chunk) - A detailed list of exhibits is provided, including acquisition agreements, charter documents, loan agreements, and compensatory plans[678](index=678&type=chunk) [Form 10-K Summary](index=139&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided - None

OrthoPediatrics Corp. (NASDAQ:KIDS) Q4 2020 Results Earnings Conference Call March 11, 2021 8:00 AM ET Company Participants Christine Petraglia - Investor Relations, The Ruth Group Mark Throdahl - Chief Executive Officer Fred Hite - Chief Operating Officer and Chief Financial Officer Conference Call Participants Kaila Krum - Truist Securities Ryan Zimmerman - BTIG Frederick Wise - Stifel Nicolaus Michael Matson - Needham & Company David Turkaly - JMP Securities Matthew O'Brien - Piper Sandler Operator Welco ...