WARSAW, Ind., March 24, 2025 (GLOBE NEWSWIRE) -- OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (Nasdaq: KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, today announced it was selected as one of the 2025 Best Places to Work in Indiana. This is the 9th time the Company has been recognized by the annual program created by the Indiana Chamber of Commerce. OrthoPediatrics President & CEO David Bailey commented, “I’m so proud of our organization for being named o ...

WARSAW, Ind., March 17, 2025 (GLOBE NEWSWIRE) -- OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (Nasdaq: KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, announced today its partnership with the Crossroads Pediatric Device Consortium (CPDC). This collaboration aligns with the Company’s cause of improving the lives of children by supporting the development and commercialization of innovative pediatric medical devices.​ The Crossroads Pediatric Device Consortiu ...

Financial Performance and Position - As of December 31, 2024, the company had federal, state, and foreign net operating loss carryforwards (NOLs) of $136.6 million, $85.4 million, and $35.2 million, respectively[176]. - The company recorded impairment charges of $1.0 million and $3.6 million related to the ApiFix trademark asset during the third quarter of 2023 and 2022, respectively, and an additional charge of $1.8 million in the fourth quarter of 2024[179]. - The company faces limitations on the use of its net operating loss carryforwards due to ownership changes, with an estimated annual limitation of $9.7 million imposed on the use of pre-change NOLs[176]. - Revenue increased from $148.7 million in 2023 to $204.7 million in 2024, representing a growth of approximately 37.6%[231]. - Approximately 21% of revenue in 2024 was attributable to international customers, down from 25% in 2023 and 24% in 2022[237]. - The company has assessed no material exposure to interest rate risk from its investment portfolio, which consists largely of high-quality corporate debt instruments[448]. - The company does not currently hedge against foreign currency exchange rate fluctuations but may consider doing so in the future[450]. - The company has not recorded any significant unrealized losses or impairment charges on its investments during the periods presented[448]. Market and Competitive Environment - The company operates in a highly competitive environment with significant competitors including Johnson & Johnson MedTech, Medtronic, and Smith & Nephew, which may impact its market position[186]. - The company’s ability to commercialize new products is critical for growth, as failure to do so may hinder its competitive position in the pediatric orthopedic market[180]. - The company has expanded its international sales organization to over 70 independent stocking distributors and multiple direct sales representatives, selling products in over 75 countries[209]. - The company has faced difficulties in obtaining value analysis committee (VAC) approvals from hospitals, which can be lengthy and costly, impacting sales[208]. - The company lacks published long-term data supporting superior clinical outcomes of its products, which may hinder market acceptance and sales growth[214]. - The company’s future sales depend on effectively marketing to orthopedic surgeons and demonstrating the merits of its products compared to competitors[201]. Regulatory and Compliance Risks - The company may face regulatory scrutiny regarding the provision of loaned instrument sets to customers, which could implicate federal and state fraud and abuse laws[192]. - The company is subject to fluctuations in its effective tax rate due to various factors, including changes in tax laws and profitability across jurisdictions[175]. - The company must comply with UK Medical Device Regulations to affix the UKCA Mark, with compliance required by 2025[274]. - Non-compliance with federal and state regulations could lead to product recalls or production termination, significantly impacting supply[280]. - The company is subject to periodic inspections by the FDA and Notified Body, which could result in enforcement actions if non-compliance is found[281]. - Regulatory authorities may require recalls of products due to material deficiencies or defects, which could impact sales and reputation[288]. - The company faces significant risks related to compliance with the FCPA and other anti-corruption laws, particularly in jurisdictions with developing economies[242]. - Any violation of anti-corruption laws could result in substantial fines, sanctions, and harm to the company's business and financial condition[243]. Operational Challenges - The company must maintain significant levels of inventory for implant and instrument sets, which could lead to inventory impairment charges if portions become obsolete[191]. - The company may experience challenges in managing anticipated growth, which could strain organizational and operational infrastructure[231]. - The company may face challenges in integrating acquired businesses or technologies, which could disrupt ongoing operations and management focus[198]. - The company has experienced limited access to healthcare professionals due to the COVID-19 pandemic, affecting product development and marketing efforts[200]. - The company may pursue growth through acquisitions or strategic alliances, which carry risks related to integration and operational impact[193]. Intellectual Property and Litigation - The company owns 77 issued U.S. patents and 207 issued foreign patents, with 50 pending U.S. patent applications and 66 pending foreign patent applications as of December 31, 2024[321]. - The company’s ability to enforce patent rights may be compromised by difficulties in detecting infringement and potential legal challenges[324]. - The company may face substantial costs and liabilities from intellectual property litigation, which could strain financial resources and harm its reputation[330]. - The company indemnifies customers against infringement claims, which may lead to costly litigation and potential damages[331]. - Significant litigation regarding patent rights in the industry may impact the company's ability to commercialize products and could divert management's attention[328]. Stock and Shareholder Matters - The company has 24,217,508 outstanding shares of common stock as of December 31, 2024, with potential future sales impacting stock price[343]. - The stock price may be volatile due to various factors, including fluctuations in financial condition and operating results[338]. - The company does not anticipate paying any cash dividends in the foreseeable future, with capital appreciation being the sole source of gain for shareholders[354]. - As of December 31, 2024, principal stockholders and management own approximately 32.5% of the company's outstanding common stock, allowing them to exert significant control over corporate actions[347]. Strategic Initiatives - The company initiated a restructuring plan in 2024 aimed at improving operational efficiency and reducing costs, which includes workforce reductions and site consolidations[235]. - The restructuring plan involves upfront costs such as severance payments and lease termination expenses, which may exceed initial estimates[238]. - The company has hired a VP of Asia-Pacific sales in 2024 to expand sales efforts in Australia and other Asia Pacific countries[209]. - The company relies on a network of over 40 independent sales agencies in the U.S. and more than 70 independent stocking distributors internationally, selling products in over 75 countries[309]. Environmental and Social Considerations - The company recognizes that climate change and related legislative initiatives may materially affect its business and results of operations[245]. - The company has no specific insurance covering environmental claims related to hazardous materials, but reserves funds for potential claims[306]. Miscellaneous - The company incurs significant costs due to compliance with regulations and disclosure obligations as a public company[247]. - The company is increasingly dependent on sophisticated information technology systems, which require significant resources to maintain and protect[253]. - The company may be subject to various litigation claims and legal proceedings, which could result in significant legal fees and divert management's resources[257]. - The trading market for the company's common stock is influenced by the research and reports published by securities or industry analysts[355].

Financial Data and Key Metrics Changes - The company reported total revenue of $52.7 million for Q4 2024, representing a 40% increase compared to Q4 2023 [15][53] - US revenue was $42.9 million, a 52% increase year-over-year, accounting for 79% of total revenue [54] - International revenue was $9.8 million, reflecting a 5% growth year-over-year [55] - Adjusted EBITDA for Q4 2024 was $3.0 million, more than double the $1.3 million reported in Q4 2023 [64] - Free cash flow usage was $3.7 million, a 70% reduction compared to the year-to-date average for the first three quarters of 2024 [64] Business Line Data and Key Metrics Changes - Trauma and deformity global revenue reached $36.4 million, a 35% increase compared to the prior year [56] - Scoliosis global revenue was $15.6 million, increasing by 62% year-over-year [57] - The OPSB business is expected to grow north of 20% in 2025, driven by high demand and successful integration of Boston OMP [111] Market Data and Key Metrics Changes - International sales generated $9.8 million, with a 5% growth year-over-year, despite challenges in South America [40] - Non-LATAM T&D growth exceeded 20%, and scoliosis grew nearly 30%, indicating strong underlying demand [41] Company Strategy and Development Direction - The company aims to help one million kids annually and plans to dominate the $500 million pediatric orthopedic market [11][10] - Focus on capital-efficient growth through the OPSB business, which has a higher contribution margin than the implant business [11] - The company is expanding its clinic business and anticipates significant growth opportunities in new territories [27][92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong demand for products and successful scaling of operations [14][18] - The anticipated EU MDR approval is expected to be a significant catalyst for growth in 2025 and beyond [42][43] - Management highlighted the importance of surgeon training and education in maintaining leadership in the pediatric orthopedic market [45] Other Important Information - The company made strategic decisions, including a $3.7 million restructuring charge due to the closure of the OP Israel office [49] - Gross profit margin for Q4 2024 was 68%, down from 71% in Q4 2023, primarily due to reclassification of expenses [59][60] Q&A Session Summary Question: Guidance on segment contributions and international business impact - Management indicated that while they do not guide by segment, they expect positive impacts from EU MDR in 2025 and beyond, with scoliosis growth likely outpacing trauma and deformity [75][82] Question: Opportunities in OPSB and clinic expansion - Management confirmed strong demand for OPSB and clinic expansion, with expectations of significant growth in 2025 [88][92] Question: Gross margin outlook and potential for improvement - Management acknowledged potential for gross margin improvement through consolidation and pricing strategies, but maintained conservative guidance [98][102] Question: Update on enabling technology and new product launches - Management reported progress on the Playbook enabling technology and confirmed that the new fusion implant system is on track for launch in the second half of the year [130]

Core Insights - OrthoPediatrics reported a revenue of $52.67 million for the quarter ended December 2024, reflecting a 40% increase year-over-year [1] - The earnings per share (EPS) was -$0.29, a decline from -$0.23 in the same quarter last year, with an EPS surprise of -31.82% compared to the consensus estimate of -$0.22 [1] - The revenue reported was slightly below the Zacks Consensus Estimate of $52.7 million, resulting in a surprise of -0.06% [1] Revenue Performance - Trauma and deformity product sales reached $36.41 million, exceeding the average estimate of $35.25 million, marking a year-over-year increase of 34.5% [4] - Sports medicine/other product sales were $0.63 million, falling short of the $1.12 million average estimate, representing a year-over-year decline of 29.2% [4] - Scoliosis product sales amounted to $15.63 million, surpassing the estimated $12.86 million, with a significant year-over-year increase of 61.8% [4] Stock Performance - Over the past month, OrthoPediatrics shares have returned -3.7%, compared to a -2.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - OrthoPediatrics reported a quarterly loss of $0.29 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.22, marking an earnings surprise of -31.82% [1] Financial Performance - The company posted revenues of $52.67 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.06%, but showing an increase from $37.61 million in the same quarter last year [2] - Over the last four quarters, OrthoPediatrics has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - OrthoPediatrics shares have lost about 0.1% since the beginning of the year, compared to a decline of -0.5% for the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.16 on revenues of $52.47 million, and for the current fiscal year, it is -$0.86 on revenues of $239.3 million [7] - The trend of estimate revisions for OrthoPediatrics is mixed, which could change following the recent earnings report [6] Industry Context - The Medical - Instruments industry, to which OrthoPediatrics belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Revenue Announcement - OrthoPediatrics Corp. announced preliminary unaudited net revenue for Q4 2024 and the full year ended December 31, 2024[4]. - The company provided management's projection for 2025 net revenue, indicating potential growth[4]. Financial Status - The financial information is preliminary and subject to change pending the completion of the audit process[6].

Core Viewpoint - OrthoPediatrics Corp. reported record financial results for the full year 2024, with total revenue of $204.7 million, a 38% increase from the previous year, and significant growth in adjusted EBITDA, indicating strong operational performance and market position in pediatric orthopedics [1][5][15]. Financial Performance - Total revenue for Q4 2024 was $52.7 million, a 40% increase from $37.6 million in Q4 2023, driven by growth in Global Trauma and Deformity, Scoliosis, and OPSB segments [4][7]. - Full year 2024 revenue reached $204.7 million, up 38% from $148.7 million in 2023, with U.S. revenue increasing by 45% to $161.2 million [5][7]. - Adjusted EBITDA for Q4 2024 was $3.0 million, compared to $1.3 million in Q4 2023, while full year adjusted EBITDA was $8.5 million, up from $5.0 million in 2023 [15][16]. Revenue Breakdown - U.S. revenue for Q4 2024 was $42.9 million, a 52% increase from $28.3 million in Q4 2023, representing 81% of total revenue [4][31]. - International revenue for Q4 2024 was $9.8 million, a 5% increase from $9.4 million in Q4 2023, accounting for 19% of total revenue [4][31]. - Trauma and Deformity revenue for Q4 2024 was $36.4 million, a 35% increase from $27.1 million in Q4 2023, while Scoliosis revenue increased by 62% to $15.6 million [6][31]. Operating Expenses - Total operating expenses for Q4 2024 were $49.6 million, a $14.8 million increase from $34.8 million in Q4 2023, primarily due to increased sales volume and the addition of Boston O&P [10][12]. - Sales and marketing expenses rose by 31.1% to $16.8 million in Q4 2024, while general and administrative expenses increased by 28.2% to $24.4 million [11][12]. Net Loss and Cash Flow - Net loss for Q4 2024 was $16.1 million, compared to a net loss of $6.7 million in Q4 2023, with net loss per share of $0.69 [15][16]. - The company reduced free cash flow usage by 70% in Q4 2024 compared to the third quarter of 2024, anticipating the first full quarter of positive free cash flow in Q4 2025 [7][15]. Future Guidance - For full year 2025, the company expects revenue to be in the range of $235.0 million to $242.0 million, representing growth of 15% to 18% compared to 2024 [18].

Core Insights - SOUR PATCH KIDS has launched a new product, Strawberry-Watermelon Glow Ups, which is the first gummy candy that glows under blacklight, featuring edible confetti made with turmeric extract [1][2] - The product aims to provide a multi-sensory experience beyond just taste, appealing to adventurous candy consumers [3] - SOUR PATCH KIDS Glow Ups will be available online on March 5th and at major retailers later in March, with a suggested retail price of $1.24 for a 3.08 oz bag and $2.98 for a 6.7 oz bag [5] Product Features - The Glow Ups are coated with flavorless turmeric extract confetti that emits a fluorescent glow under blacklight, allowing the strawberry-watermelon flavor to be the main focus [2] - The candy is designed for various events, enhancing experiences at concerts, gaming marathons, and movie nights [3] Marketing and Engagement - An exclusive Snapchat filter will be introduced, enabling users to experience the glow through augmented reality without needing a blacklight [4] - The product is positioned as a fun treat for social occasions, encouraging sharing and interaction among friends [3] Company Overview - Mondelēz International reported net revenues of approximately $36.4 billion in 2024, with a portfolio that includes iconic brands like Oreo, Ritz, and Cadbury [7]

Company Overview - OrthoPediatrics Corp. is focused exclusively on advancing pediatric orthopedics, offering over 75 products across three major categories: trauma and deformity, scoliosis, and sports medicine/other procedures [3] - The company was founded in 2006 and has a global sales organization that distributes products in the United States and over 70 countries [3] Financial Results Announcement - OrthoPediatrics is scheduled to release its fourth quarter and full year 2024 financial results on March 4, 2025, after market close [1] - A conference call will be held on the same day at 4:30 p.m. ET to discuss the financial results [1] Investor Information - Investors can access a live and archived webcast of the conference call on the company's website, which will be available for replay for at least 90 days [2]