Orthofix(OFIX)2024-05-07 12:04Financial Performance - First quarter net sales were $188.6 million, an increase of 7.7% on a reported basis and 7.5% on a constant currency basis compared to the prior year[4]. - Net loss for the first quarter was $(36.0) million, or $(0.95) per share, representing an improvement of 44% compared to the prior year period[7]. - Non-GAAP adjusted EBITDA was $7.7 million, reflecting a 220 basis point expansion over the prior year period[4]. - Adjusted EBITDA for Q1 2024 increased to $7,665 thousand, representing 4.1% of net sales, compared to $3,204 thousand or 1.8% in Q1 2023[24]. - The company reported a loss before income taxes of $(35,169) thousand in Q1 2024, an improvement from $(60,327) thousand in Q1 2023[24]. Sales Growth - Bone Growth Therapies net sales grew by 10%, marking five consecutive quarters of double-digit net sales increases[6]. - U.S. Spine Fixation net sales increased by 16%, driven by distribution expansion and further penetration in existing accounts[6]. - Global Orthopedics net sales grew by 5% on a reported basis, primarily due to a 23% increase in U.S. Orthopedic net sales[6]. - Net sales for Q1 2024 were $188,608 thousand, an increase from $175,204 thousand in Q1 2023[26]. Guidance and Projections - The midpoint of full year 2024 net sales guidance was raised to a range of $790.0 million to $795.0 million, implying growth of 6% to 7% year-over-year[12]. - The company expects to be free cash flow positive for Q4 2024[12]. Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash totaled $29.5 million as of March 31, 2024, down from $37.8 million at the end of 2023[8]. - Free cash flow for Q1 2024 was $(29,412) thousand, an improvement from $(45,855) thousand in Q1 2023[25]. - Net cash from operating activities improved to $(18,595) thousand in Q1 2024 from $(34,020) thousand in Q1 2023[25]. Expenses - Sales and marketing expenses as adjusted were $97,646 thousand, which is 51.8% of net sales, compared to $91,582 thousand or 52.3% in Q1 2023[26]. - General and administrative expenses as adjusted were $25,897 thousand, representing 13.7% of net sales, down from $31,149 thousand or 17.8% in Q1 2023[26]. - Research and development expenses as adjusted were $19,256 thousand, which is 10.2% of net sales, compared to $18,433 thousand or 10.5% in Q1 2023[26]. - The company incurred SeaSpine merger-related costs of $4,520 thousand in Q1 2024, down from $20,740 thousand in Q1 2023[24]. Margins - Gross margins were 67.5% for the quarter, with non-GAAP adjusted gross margins at 70.3%[7]. - Adjusted gross profit for Q1 2024 was $132,512 thousand, up from $123,948 thousand in Q1 2023, with an adjusted gross margin of 70.3% compared to 70.7%[23].