Orthofix(US:OFIX)2021-08-08 19:12Financial Data and Key Metrics Changes - Total revenue for Q2 2021 was $121.4 million, representing a growth of approximately 66% compared to 2020 and 5% compared to 2019 [7][25] - Gross margin increased to over 77% in Q2 2021 from 68% in the prior year, indicating a return to pre-COVID margin levels [26][27] - Adjusted EBITDA for Q2 2021 was $18.4 million, compared to a loss of $5.6 million in Q2 2020 [31] Performance by Business Lines - Bone Growth Therapies (BGT) sales were $50 million, up 75% from Q2 2020, but flat compared to 2019 [8] - Spinal Implants revenue increased by 62% compared to 2020 and 30% compared to 2019, driven by strong performance in the U.S. [9] - The biologic portfolio saw a 34% increase compared to 2020, but was down 11% compared to 2019 [12] - Global Orthopedics sales were up 78% compared to 2020 and 4% compared to 2019 [13] Market Data and Key Metrics Changes - U.S. total net sales for Q2 2021 were up 4% over Q2 2019, while international sales were up 7% as reported [26] - The U.S. M6-C artificial cervical disc sales grew over 105% compared to Q2 2020 [9] Company Strategy and Industry Competition - The company is focusing on product innovation and differentiation, with 22 new spine and orthopedic products launched since January 2020 [20] - Strategic channel development is a priority, with U.S. strategic channel partners growing 30% compared to 2% for other distributors [21] - The company is expanding its biologics portfolio and investing in new technologies to support long-term growth [50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2021, expecting mid-single-digit growth compared to 2019 [51] - The company anticipates a strong recovery in procedure volumes as COVID-related restrictions ease [68] Other Important Information - Changes to the Board of Directors included the election of Cathy Burzik as the new Chair [14][15] - The company maintains a strong liquidity position with $81 million in cash at the end of Q2 2021 [33] Q&A Session Summary Question: What is the expected revenue shape for the second half of the year? - Management expects mid-single-digit growth in Q3 and Q4 compared to 2019, with similar cadence in both quarters [58] Question: How should models for 2022 be adjusted based on current performance? - Management indicated that mid-single-digit growth could be a good starting point for 2022 models [59] Question: What pull-through is being seen with the M6 product? - Currently, minimal pull-through is observed, but management is focused on improving this as they enhance their channel [63] Question: What is the view on backlog and competitive landscape for M6? - Management noted that there is still a backlog of patients needing surgical care, and they have not seen significant competitive impacts from new entrants [68] Question: Can you discuss the relationship with IGEA and the potential of Pulsed Ultrasound? - Management highlighted the positive effects of electrical stimulation for soft tissue and bone healing, with ongoing research into its efficacy [81]