MEMPHIS, TENN. (PRWEB) MAY 23, 2018

In’Tech Medical SAS (http://www.intech-medical.com), the leading Contract Manufacturer of medical devices in Orthopedics, announced today that it has entered into a binding agreement to acquire world renowned instruments and silicone overmold company, Bradshaw Medical Inc. The transaction, supported by Eurazeo PME, has been approved by the Board of Directors of both organizations.

Based in Kenosha, Wisconsin, Bradshaw Medical is an innovation-driven company that has built a first-class reputation with a relentless focus on customer service.

With over 40 issued patents, Bradshaw’s engineering team has designed a broad portfolio of OEM instruments and provides the industry with highly-customizable silicone overmolded solutions.

“With the addition of Bradshaw Medical to the In’Tech family, we are re-enforcing our position as a leading Contract Manufacturer of surgical instruments in Orthopedics, as well as adding significant market penetration power,” said Laurent Pruvost, President of the In’Tech Medical Group. “Enhancing our offering with Bradshaw’s high-quality OEM instruments portfolio and its silicone overmolding expertise, provides the group with unparalleled capabilities and scale. Together we look forward to reshaping the orthopedic market, with game changing “smart” instruments.”

With over 800 employees and projected 2018 revenues of approximately $120 million, In’Tech Medical is now a premiere engineering powerhouse, capable of delivering manufacturing solutions anywhere, at any time, to the benefit of medical device organizations worldwide.

“Bradshaw Medical is excited to begin this next chapter in our company’s history,” said Guy Bradshaw, Founder & CEO. “We take great pride in providing the industry with the highest quality surgical instrumentation and customer service. Our tremendous growth and success over the past 12 years is a direct reflection of our dedicated employees. Forming an alliance with In’Tech Medical will allow us to take our brand global and provide the orthopedic industry with our combined ground-breaking technology.”

In’Tech and Bradshaw will be exhibiting jointly at OMTEC, in Chicago, June 12-14 and look forward to sharing with everyone the group’s vision of the instruments for tomorrow.

About In’Tech Medical (OMTEC booth #630)
Founded in France in 2000, In’Tech Medical is a global leading contract-manufacturer of surgical instruments, implants, as well as sterilization cases and trays. Powered by 650 dedicated employees across the USA, Europe and Asia-Pacific, the company is strategically positioned to deliver customized solutions to complex engineering and supply chain challenges. Driven by innovation, In’Tech continuously enhances its product & service offering to accelerate time-to-market for its customers worldwide.

Since July 2017, In’Tech Medical’s development strategy is supported by Eurazeo PME and Andera Partners (formerly Edmond de Rothschild Investment Partners) alongside its management team.

About Bradshaw Medical (OMTEC booth #226)
Founded in 2006, Bradshaw Medical Inc. is an industry leader in specialized design and development of OEM and spinal instrumentation. Bradshaw Medical has continually evolved over the past decade to meet the most demanding requirements of the orthopedic marketplace.

May 21, 2018

DUBLIN – May 18, 2018 – Medtronic plc (NYSE:MDT) announced today that the company will host its biennial Institutional Investor and Analyst Meeting on Tuesday, June 5, 2018, in New York City from 8:00 a.m. to approximately 2:00 p.m. Eastern Daylight Time. The meeting will include remarks from the Medtronic executive management team on the company’s strategies for creating long-term value for its shareholders.

Omar Ishrak, Medtronic chairman & chief executive officer, and Karen Parkhill, Medtronic executive vice president & chief financial officer, will give presentations on the company. In addition, Medtronic executives from all four of the company’s business groups and all four of the company’s global regions are expected to present or participate in the event.

Medtronic will host a webcast of the meeting to provide access to all interested stakeholders. The webcast can be accessed by clicking on the Investor Events link at http://investorrelations.medtronic.com on June 5, 2018. Slides from the meeting will be available to those viewing the webcast. Within 24 hours of the webcast, a replay including presentation slides will be available by clicking on the Investor Events link at http://investorrelations.medtronic.com.

About Medtronic
Medtronic plc (www.medtronic.com), headquartered in Dublin, Ireland, is among the world’s largest medical technology, services and solutions companies – alleviating pain, restoring health and extending life for millions of people around the world. Medtronic employs more than 84,000 people worldwide, serving physicians, hospitals and patients in approximately 160 countries. The company is focused on collaborating with stakeholders around the world to take healthcare Further, Together.

Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic’s periodic reports on file with the Securities and Exchange Commission. Actual results may differ materially from anticipated results.

Contacts:
Fernando Vivanco
Public Relations
+1-763-505-3780

Ryan Weispfenning
Investor Relations
+1-763-505-4626

WARSAW, Ind., May 14, 2018 (GLOBE NEWSWIRE) — OrthoPediatrics Corp. (NASDAQ:KIDS), a company exclusively focused on advancing the field of pediatric orthopedics, announced today its financial results for the first quarter ended March 31, 2018.

First Quarter & Recent Highlights

• Increased total revenue 23.9% to $12.1 million for first quarter 2018, from $9.8 million in first quarter 2017
• Deployed $5.5 million of consignment sets during the first quarter 2018
• Added 9 incremental U.S. sales representatives in the first quarter 2018 for a total of 84
• Launched Titanium PediPlates® and upgraded PediFlex™ Advanced system
• Received FDA 510(k) clearance for 25^th surgical system, Pediatric Nailing Platform | FEMUR
• Recognized as one of the 100 Best Places to Work in Indiana for second year

Mark Throdahl, Chief Executive Officer of OrthoPediatrics, commented, “We are very pleased by our solid start to the year with greater than anticipated first quarter revenue growth of 24%. Since becoming a public company last October, we have exceeded anticipated growth in every quarter. While all of our product lines contributed, strong domestic scoliosis sales continued to outpace the industry, further establishing our leading market position in pediatric orthopedics. In addition, we significantly increased our investment in consignment sets to $5.5 million and R&D by 77%, which helped support the FDA 510(k) clearance of our Pediatric Nailing Platform | FEMUR. These investments will further enable our expanding sales force to drive future growth. Once again, we are honored to be recognized as one of the 100 Best Places to Work in Indiana, which validates our culture and its commitment to transforming the lives of children around the world with orthopedic conditions.”

First Quarter 2018 Financial Results
Total revenue for the first quarter of 2018 was $12.1 million, a 23.9% increase compared to $9.8 million for the same period last year. U.S. revenue for the first quarter of 2018 was $8.7 million, a 18.0% increase compared to $7.3 million for the same period last year, representing 71.5% of total revenue. International revenue was $3.4 million, a 41.8% increase compared to $2.4 million for the same period last year, representing 28.5% of total revenue.

Trauma and Deformity revenue for the first quarter of 2018 was $9.1 million, an 17.9% increase compared to $7.7 million for the same period last year. Scoliosis revenue was $2.7 million, a 39.7% increase compared to $1.9 million for the first quarter 2017. Sports Medicine/Other revenue for the first quarter of 2018 was $0.3 million, a 186.0% increase compared to $0.1 million for the same period last year.

Gross profit for the first quarter of 2018 was $8.9 million, a 20.3% increase compared to $7.4 million for the same period last year. Gross profit margin for the first quarter of 2018 was 73.7%, compared to 76.0% for the same period last year, primarily driven by a higher mix of international revenue, including instrument set sales.

Total operating expenses for the first quarter of 2018 were $13.3 million, a 61.3% increase compared to $8.3 million for the same period last year. The increase in operating expenses was primarily driven by $2.2 million of non-cash stock compensation in the first quarter of 2018 reflecting restricted stock accelerated vesting six months after our IPO.  This compared to $0.3 million in non-cash stock compensation in the first quarter of 2017.  The operating expense increase was also driven by higher commissions, R&D, and the addition of public company expenses.  Operating loss for the quarter increased to ($4.4) million from ($0.8) million for the same period last year.

Net interest expense for the first quarter of 2018 was $0.6 million, a 24.0% increase compared to $0.4 million for the same period last year, due to the use of incremental debt during 2017.

Net loss for the first quarter of 2018 was ($5.0) million, compared to ($1.3) million for the same period last year. Net loss per share attributable to common stockholders for the first quarter of 2018 was ($0.41) per basic and diluted share, compared to ($1.55) per basic and diluted share for the same period last year. Adjusted EBITDA for the first quarter of 2018 was ($1.2) million as compared to zero for the first quarter of 2017. The change was primarily driven by higher R&D and legal expenses.  See below for additional information and a reconciliation of non-GAAP financial information.

The weighted average number of diluted shares outstanding as of March 31, 2018 was 12,073,776 shares.

As of the first quarter of 2018 our independent sales agencies in the United States employed 84 full-time equivalent sales representatives specifically focused on pediatrics, up 9 from the 75 employed in the fourth quarter of 2017.  This increase is well ahead of the 18 planned additions for the full year 2018.

Purchases of property and equipment during the first quarter of 2018 were $2.8 million, a 108.0% increase compared to $1.3 million for the same period last year. The primary driver of this increase was the deployment of consigned sets, which include product specific instruments as well as cases and trays.

As of March 31, 2018, cash and cash equivalents were $34.6 million, compared to $42.6 million as of December 31, 2017, and the Company had approximately $25.4 million in total outstanding indebtedness, including $3.9 million outstanding under the revolving credit facility.

Conference Call
OrthoPediatrics will host a conference call on Tuesday, May 15, 2018 at 8:00 a.m. ET to discuss its financial results. The dial-in numbers are (855) 289-4603 for domestic callers and (614) 999-9389 for international callers. The conference ID number is 2290769. A live webcast of the conference call will be available online at OrthoPediatrics’ investor relations website, ir.orthopediatrics.com.

A replay of the webcast will remain available online at OrthoPediatrics’ investor relations website, ir.orthopediatrics.com, until OrthoPediatrics releases its second quarter 2018 financial results. In addition, a telephonic replay of the conference call will be available until May 22, 2018. The replay dial-in numbers are (855) 859-2056 for domestic callers and (404) 537-3406 for international callers. The replay conference ID number is 2290769.

Forward-Looking Statements
This 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, uncertainties and factors set forth under “Risk Factors” in OrthoPediatrics’ Annual Report on Form 10-K filed with the SEC on March 15, 2018. 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 Measures
This press release includes the non-GAAP financial measure of Adjusted EBITDA, which differs from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”).  Adjusted EBITDA in this release represents net loss, plus interest expense (income), net plus other expense (income), depreciation and amortization, stock-based compensation expense, accelerated vesting of restricted stock upon our IPO, public company costs and initial public offering costs. Adjusted EBITDA is presented because the Company believes it is a useful indicator of its operating performance. Management uses the metric as a measure of the Company’s operating performance and for planning purposes, including financial projections. The Company believes this measure is useful to investors as supplemental information because it is frequently used by analysts, investors and other interested parties to evaluate companies in its industry.  The Company believes Adjusted EBITDA is useful to its management and investors as a measure of comparative operating performance from period to period.  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 Adjusted EBITDA, 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 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 Adjusted EBITDA on a supplemental basis. The Company’s definition of this measure is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation. The schedules below contain a reconciliation of Net Income to non-GAAP Adjusted EBITDA.

About OrthoPediatrics Corp.
Founded in 2006, OrthoPediatrics is an orthopedic company focused exclusively on providing a comprehensive product offering to the pediatric orthopedic market to improve the lives of children with orthopedic conditions. OrthoPediatrics currently markets 25 surgical systems that serve three of the largest categories within the pediatric orthopedic market. This offering spans trauma & 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 38 countries outside the United States.

Investor Contacts
The Ruth Group
Tram Bui / Emma Poalillo
(646) 536-7035 / 7024
tbui@theruthgroup.com / epoalillo@theruthgroup.com

ORTHOPEDIATRICS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
 (In Thousands, Except Share Data)

READ THE REST HERE

CAESAREA, Israel, May 14, 2018 /PRNewswire/ — Mazor Robotics Ltd. (TASE: MZOR) (NASDAQ-GM: MZOR), a pioneer and a leader in the field of robotic guidance systems, reported record first quarter revenue of $15.5 million compared to $11.7 million in the first quarter of 2017.

“Our record first quarter revenue reflects clinical adoption, as we surpassed 33,000 cases performed, and the continued global demand for the Mazor X and Renaissance systems,” commented Ori Hadomi, Chief Executive Officer. “Commercially, we successfully expanded into a new international market with the Mazor X and making progress penetrating into the Ambulatory Surgery Center (“ASC”) market in the U.S. with the Renaissance.  Our performance, coupled with the growing number of peer-reviewed papers, presentations and the interim data from our prospective studies, is transforming spine surgery in markets around the world.  Finally, we are also advancing and expanding our technology development efforts with Medtronic, and I am pleased to share that commercialization of the Mazor X platform, which integrates Medtronic’s Stealth navigation and offers a unique robot-guided implant solution that eliminates the need for guidewires, is expected at the end of 2018.”

FIRST QUARTER 2018 FINANCIAL RESULTS ON IFRS BASIS (“GAAP”)

Revenue for the three months ended March 31, 2018 increased 32% to $15.5 million compared to $11.7 million in the year-ago first quarter, mainly due to increased recurring revenue from kit sales, services and other.  U.S. revenue increased 27% to $14.2 million compared to $11.2 million in the year-ago first quarter. International revenue increased 160% to $1.3 million compared to $0.5 million in the year-ago first quarter.

The Company’s gross margin for the three months ended March 31, 2018 was 58.3% compared to 64.6% in the year-ago first quarter.  This expected decrease is attributed mainly to the pricing terms with Medtronic. Total operating expenses were $10.5 million compared to $13.3 million in the year-ago first quarter, mainly due to lower selling and marketing expenses, following the transition to the global distribution phase of the Medtronic partnership.  Operating loss was $1.4 million compared to an operating loss of $5.7 million in the year-ago first quarter. Net loss for the first quarter of 2018 was $1.3 million, or $0.02 per share, compared to a net loss of $5.2 million, or $0.11 per share, for the year-ago first quarter.

Cash provided by operating activities was $2.7 million compared to cash provided by operating activities of $0.7 millionin last year’s first quarter as a result of high collection efforts from customers. As of March 31, 2018, cash, cash equivalents and investments totaled $114.5 million.

FIRST QUARTER 2018 FINANCIAL RESULTS ON NON-GAAP BASIS

The tables below include reconciliations of the Company’s GAAP results to non-GAAP results. The reconciliations relate to non-cash expenses in the amount of $1.6 million with respect to share-based payments and amortization of intangible assets recorded in the first quarter of 2018. On a non-GAAP basis, the net income in the first quarter of 2018 was $0.3 million, or $0.01 per share, compared to net loss of $3.9 million, or $0.08 per share, for the year-ago first quarter.

CONFERENCE CALL INFORMATION

The company will host a conference call to discuss these results on Monday, May 14, 2018, at 8:30 AM EDT (3:30 PM IDT).  Investors within the United States interested in participating are invited to call 800-239-9838.   Participants in Israel can use the toll-free dial-in number 1809 212 883. All other international participants can use the dial-in number +1 323-794-2551.

A replay of the event will be available for two weeks following the conclusion of the call. To access the replay, callers in the United States can call 1-888-203-1112 and reference the Replay Access Code: 3873868. All international callers can dial +1 719-457-0820, using the same Replay Access Code. To access the webcast, please visit www.mazorrobotics.comand select ‘Investor Relations.’

Use of Non-GAAP Measures

In addition to disclosing financial results calculated in accordance with generally accepted accounting principles in conformity with International Financial Reporting Standards (GAAP), this press release contains Non-GAAP financial measures for gross profit, operating expenses, operating profit (loss), net income (loss) and basic and diluted earnings (loss) per share that exclude the effects of non-cash expense of amortization of intangible assets and share-based payments. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s performance that enhances management’s and investors’ ability to evaluate the Company’s net income (loss) and earnings (loss) per share and to compare them to historical net income (loss) and earnings (loss) per share.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when operating and evaluating the Company’s business internally and therefore decided to make these non-GAAP adjustments available to investors.

About Mazor

Mazor Robotics (TASE: MZOR; NASDAQGM: MZOR) believes in healing through innovation by developing and introducing revolutionary technologies and products aimed at redefining the gold standard of quality care. Mazor Robotics Guidance System enables surgeons to conduct spine and brain procedures in an accurate and secure manner. For more information, please visit www.MazorRobotics.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Any statements in this release about future expectations, plans or prospects for the Company, including without limitation, statements regarding interim data from prospective studies, advancing and expanding technology development efforts, timing of integration of Stealth navigation, and other statements containing the words “believes,” “anticipates,” “plans,” “expects,” “will” and similar expressions are forward-looking statements. These statements are only predictions based on Mazor’s current expectations and projections about future events. There are important factors that could cause Mazor’s actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Those factors include, but are not limited to, the impact of general economic conditions, competitive products, product demand and market acceptance risks, reliance on key strategic alliances, fluctuations in operating results, and other factors indicated in Mazor’s filings with the Securities and Exchange Commission (SEC) including those discussed under the heading “Risk Factors” in Mazor’s annual report on Form 20-F filed with the SEC on April 30, 2018 and in subsequent filings with the SEC. For more details, refer to Mazor’s SEC filings. Mazor undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in our expectations, except as may be required by law.

READ THE REST HERE

DUBLIN – May 10, 2018 – Medtronic plc (NYSE: MDT) announced today that it will report financial results for its fourth quarter and fiscal year 2018 on Thursday, May 24, 2018. A news release will be issued at approximately 5:45 a.m. Central Daylight Time (CDT) and will be available at http://newsroom.medtronic.com. The news release will include summary financial information for the company’s fourth quarter and fiscal year 2018, which ended on Friday, April 27, 2018.

Medtronic will host a webcast at 7:00 a.m. CDT to discuss financial results for its fourth quarter and full fiscal year 2018. The webcast can be accessed at http://investorrelations.medtronic.com on May 24, 2018.

Within 24 hours of the webcast, a replay and transcript of the prepared remarks will be available by clicking on the Investor Events link at http://investorrelations.medtronic.com.

Looking ahead, Medtronic plans to report its fiscal year 2019 first, second and third quarter financial results on Tuesday, August 21, 2018, Tuesday, November 20, 2018, and Tuesday, February 19, 2019, respectively. Medtronic also plans on hosting its biennial Institutional Investor & Analyst Day on Tuesday, June 5, 2018. Confirmation and additional details will be provided closer to the specific event.

About Medtronic
Medtronic plc (www.medtronic.com), headquartered in Dublin, Ireland, is among the world’s largest medical technology, services and solutions companies – alleviating pain, restoring health and extending life for millions of people around the world. Medtronic employs more than 84,000 people worldwide, serving physicians, hospitals and patients in approximately 160 countries. The company is focused on collaborating with stakeholders around the world to take healthcare Further, Together.

Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic’s periodic reports on file with the Securities and Exchange Commission. Actual results may differ materially from anticipated results.

Contacts:
Fernando Vivanco
Public Relations
+1-763-505-3780

Ryan Weispfenning
Investor Relations
+1-763-505-4626

CAMBRIDGE, Mass., May 08, 2018 (GLOBE NEWSWIRE) — Vericel Corporation (NASDAQ:VCEL), a leader in advanced cell therapies for the sports medicine and severe burn care markets, today reported financial results and business highlights for the first quarter ended March 31, 2018.

First Quarter 2018 Financial Highlights

• Total net revenues of $18.0 million compared to $9.4 million in the first quarter of 2017; first quarter 2017 revenues included a $2.8 million revenue reserve for Carticel^® and MACI^® related to a contractual dispute between one of the Company’s pharmacy providers and a third-party payer;
• Gross margins of 57% compared to gross margins of 24% in the first quarter of 2017;
• Net loss of $7.7 million, or $0.21 loss per share, which included warrant-related expense of $2.9 million, compared to net loss of $9.8 million, or $0.31 per share, in the first quarter of 2017, which included $0.1 million of warrant income;
• Non-GAAP adjusted EBITDA loss of $2.6 million compared to a loss of $5.9 million in the first quarter of 2017; and
• As of March 31, 2018, the company had $29.8 million in cash compared to $26.9 million in cash at December 31, 2017.

Recent Business Highlights
During and since the first quarter of 2018, the company:

• Achieved record first quarter revenues and the fourth straight quarter of 30% or greater revenue growth versus the same quarter of the prior year;
• Achieved the Company’s first quarter of positive operating cash flow;
• Deployed the expanded MACI (autologous cultured chondrocytes on porcine collagen membrane) sales force, which increased from 28 to 40 sales representatives;
• Launched the MACI ‘It’s Your Move’ campaign in partnership with world champion swimmer, five-time Olympian, and best-selling author Dara Torres; and
• Announced the publication of results from the Phase 3 SUMMIT Extension Study in the American Journal of Sports Medicine demonstrating sustained clinical benefit of MACI out to five years.

“We had a strong start to 2018 with significant revenue growth for both MACI and Epicel, and delivered the fourth straight quarter of 30% or higher revenue growth compared to the same quarter of the prior year,” said Nick Colangelo, president and CEO of Vericel.  “We also reported significant margin improvements and generated the Company’s first quarter of positive operating cash flow as we continue to move our current business towards sustained profitability.”

First Quarter 2018 Results
Total net revenues for the quarter ended March 31, 2018 were $18.0 million, which included $12.1 million of MACI net revenue and $6.0 million of Epicel^® (cultured epidermal autografts) net revenue, compared to $5.0 million of Carticel (autologous cultured chondrocytes) and MACI net revenue and $4.4 million of Epicel net revenue, respectively, in the first quarter of 2017.  Total net revenues for the quarter ended March 31, 2017 included a $2.8 million revenue reserve for Carticel and MACI related to a contractual dispute between one of the Company’s pharmacy providers and a third-party payer.  Total net revenues increased 93% compared to the first quarter of 2017, with MACI revenue increasing 141% and Epicel revenue increasing 37%, respectively, compared to the same period in 2017.  Excluding the revenue reserve in the first quarter of 2017, non-GAAP net revenues increased 49%, with MACI revenue increasing 55% compared to first quarter of 2017.

Gross profit for the quarter ended March 31, 2018 was $10.4 million, or 57% of net revenues, compared to $2.3 million, or 24% of net revenues, for the first quarter of 2017.

Total operating expenses for the quarter ended March 31, 2018 were $14.7 million compared to $11.9 million for the same period in 2017.

Loss from operations for the quarter ended March 31, 2018 was $4.3 million, compared to a loss of $9.6 million for the first quarter of 2017.  Material non-cash items impacting the operating loss for the quarter included $1.3 million of stock-based compensation expense and $0.4 million in depreciation expense.

Other expense for the quarter ended March 31, 2018 was $3.3 million compared to $0.2 million for the same period in 2017.  The change in other expense for the quarter is primarily due to a $2.9 million change in the fair value of warrants.

Non-GAAP adjusted EBITDA loss was $2.6 million for the quarter ended March 31, 2018 compared to a loss of $5.9 millionin the same period in 2017.  See table reconciling non-GAAP measures for more details.

Vericel’s net loss for the quarter ended March 31, 2018 was $7.7 million, or $0.21 per share, compared to a net loss of $9.8 million, or $0.31 per share, for the same period in 2017.

As of March 31, 2018, the company had $29.8 million in cash compared to $26.9 million in cash at December 31, 2017.

“Our first quarter results demonstrated continued momentum moving into our second year with MACI on the market and that investments made in Epicel are continuing to drive additional utilization,” added Mr. Colangelo.  “We believe that an expanded MACI sales force in 2018, together with patient-focused marketing initiatives, will further strengthen our position in the market and build the foundation for strong revenue growth in the years ahead.”

Conference Call Information
Today’s conference call will be available live at 8:30am Eastern time in the Investor Relations section of the Vericel website at http://investors.vcel.com/events.cfm. Please access the site at least 15 minutes prior to the scheduled start time in order to download the required audio software if necessary.  To participate in the live call by telephone, please call (877) 312-5881 and reference Vericel Corporation’s first-quarter 2018 investor conference call. If calling from outside the U.S., please use the international phone number (253) 237-1173.

If you are unable to participate in the live call, the webcast will be available at http://investors.vcel.com/events.cfm until May 8, 2019.  A replay of the call will also be available until 11:30am (EST) on May 13, 2018 by calling (855) 859-2056, or from outside the U.S. (404) 537-3406. The conference ID is 1564056.

About Vericel Corporation
Vericel is a leader in advanced cell therapies for the sports medicine and severe burn care markets.  The company markets two cell therapy products in the United States.  MACI (autologous cultured chondrocytes on porcine collagen membrane) is an autologous cellularized scaffold product indicated for the repair of symptomatic, single or multiple full-thickness cartilage defects of the knee with or without bone involvement in adults.  Epicel (cultured epidermal autografts) is a permanent skin replacement for the treatment of patients with deep dermal or full thickness burns greater than or equal to 30% of total body surface area.  For more information, please visit the company’s website at www.vcel.com.

GAAP v. Non‑GAAP Measures
Vericel’s reported earnings are prepared in accordance with generally accepted accounting principles in the United States, or GAAP, and represent earnings as reported to the Securities and Exchange Commission.  Vericel has provided in this release financial information that has not been prepared in accordance with GAAP.  Vericel’s management believes that adjusted EBITDA loss described in the release, or EBITDA loss adjusted for specific items that are generally not indicative of our core operations, provides additional information that is useful to investors in understanding Vericel’s underlying performance, business and performance trends, and helps facilitate period to period comparisons and compare its financial measures with other companies in Vericel’s industry.  However, non-GAAP financial measures that Vericel uses may differ from measures that other companies may use.  Non-GAAP financial measures are not required to be uniformly applied, are not audited and should not be considered in isolation or as substitutes for results prepared in accordance with GAAP.

Epicel^®, MACI^® and Carticel^® are registered trademarks of Vericel Corporation. © 2018 Vericel Corporation. All rights reserved.

This document contains forward-looking statements, including, without limitation, statements concerning anticipated progress, objectives and expectations regarding the commercial potential of our products and growth in revenues, and objectives and expectations regarding our company described herein, all of which involve certain risks and uncertainties. These statements are often, but are not always, made through the use of words or phrases such as “anticipates,” “intends,” “estimates,” “plans,” “expects,” “we believe,” “we intend,” “guidance,” ”outlook,” “future,” and similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “potential,” “could,” “may,” or similar expressions. Actual results may differ significantly from the expectations contained in the forward-looking statements. Among the factors that may result in differences are the inherent uncertainties associated with our expectations regarding 2018 revenues, our ability to achieve or sustain profitability, our need to generate significant sales to become profitable, potential fluctuations in sales volumes and our results of operations over the course of the year, competitive developments, estimating the commercial growth potential of our products and product candidates and growth in revenues and improvement in costs, market demand for our products, our ability to secure consistent reimbursement for our products, changes in third party coverage and reimbursement, any disruption or delays in operations at our facilities, our dependence on a limited number of third party suppliers, our ability to maintain and expand our network of direct sales employees, and our ability to supply or meet customer demand for our products. These and other significant factors are discussed in greater detail in Vericel’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission (“SEC”) on March 5, 2018, Quarterly Reports on Form 10-Q and other filings with the SEC. These forward-looking statements reflect management’s current views and Vericel does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this release except as required by law. 

vcel-fin

Global Media Contacts:

David Schull
Russo Partners LLC
+1 212-845-4271 (office)
+1 858-717-2310 (mobile)
David.schull@russopartnersllc.com

Karen Chase
Russo Partners LLC
+1 646-942-5627 (office)
+1 917-547-0434 (mobile)
Karen.chase@russopartnersllc.com

Investor Contacts:
Chad Rubin
Solebury Trout
crubin@troutgroup.com
+1 (646) 378-2947

Lee Stern
Solebury Trout
lstern@troutgroup.com
+1 (646) 378-2922

VERICEL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)

May 10, 2018

SAN DIEGO–(BUSINESS WIRE)–DJO Global, Inc. (“DJO” or the “Company”), a leading global provider of medical technologies designed to get and keep people moving, today announced financial results for its public reporting subsidiary, DJO Finance LLC (“DJOFL”), for the first quarter ended March 31, 2018.

First Quarter Highlights

• Net sales were $292.6 million, up 1.5% compared to the first quarter of 2017.
• Operating income increased 501.9% to $33.5 million from $6.7 million in the prior year period.
• Net loss attributable to DJOFL was $17.6 million, compared to a net loss of $40.0 million in the prior year period.
• Adjusted EBITDA increased 13.2% over the prior year quarter to $64.8 million.

Business Transformation Outcomes

• Business Transformation continues to drive profitability expansion and remains on track to deliver 7% to 10% annual cost reductions by end of 2018.
• Transformation actions taken to date expected to contribute $21.8 million in savings over the next four quarters.

“After starting the quarter with slow revenue trends reflecting the overall market performance, we saw improvement later in the quarter, particularly in March. In line with our annual plan, we expect to build revenue momentum throughout the year as growth investments that began late in 2017 begin to materialize,” said Brady Shirley, DJO’s President and Chief Executive Officer. “Overall performance was highlighted by continued, strong earnings growth and significant margin expansion.”

“From a bottom-line perspective, we continue to demonstrate that our multi-year transformation is working, delivering 13% Adjusted EBITDA growth and over 200 basis point improvement in margin. The growth in Adjusted EBITDA is a product of improving gross margins and strong control of operating expenses, reflecting the hard work our team has put into our transformation initiatives,” commented Mike Eklund, DJO’s Chief Financial Officer and Chief Operating Officer. “Additional operations initiatives are already underway focused on enhancing customer satisfaction as well as financial metrics. We remain confident in our ability to continue the improvement we have seen since the start of this journey early last year.”

Sales Results

Net sales for DJOFL for the first quarter of 2018 were $292.6 million, an increase of 1.5% compared to the first quarter of 2017. On the basis of constant currency rates, sales declined 1.7%. The number of selling days in the first quarter of 2018 was unchanged from the prior year period in the US but there was one less selling day outside the US.

Net sales for DJO’s Surgical Implant segment grew 8.1% in the first quarter of 2018 to $53.6 million, reflecting greater than 20% growth in our large shoulder implant product line and single digit growth in our knee and hip implant product lines.

Net sales for DJO’s International segment grew 13.3% in the first quarter of 2018 to $88.6 million, or 1.5% on a constant currency basis with one less selling day. There was strong sales growth in France, Scandinavia and Australia, partially offset by slower sales in the UK, Spain and Benelux region.

Net sales for DJO’s Recovery Sciences segment were $35.9 million in the first quarter of 2018, down 6.8% compared to the first quarter of 2017, driven by softness in the segment’s Chattanooga product line.

Net sales for DJO’s Bracing and Vascular segment were $114.5 million in the first quarter of 2018, a decline of 6.2% compared to the first quarter of 2017, reflecting challenges in the segment’s Dr. Comfort product line and a decline in our US bracing business.

Earnings Results

Operating income improved to $33.5 million from $6.7 million in the prior year quarter, primarily due to a significant reduction in selling, general and administrative expenses. Net loss attributable to DJOFL in the first quarter of 2018 was $17.6 million compared to a net loss of $40.0 million for the first quarter of 2017.

Adjusted EBITDA for the first quarter of 2018 grew 13.2% to $64.8 million from $57.2 million in the first quarter of 2017. Including projected future savings of $21.8 million from cost savings programs currently underway as permitted under our credit agreement and the indentures governing our outstanding notes, Adjusted EBITDA for the twelve months ended March 31, 2018 was $297.5 million.

The Company defines Adjusted EBITDA as net (loss) income attributable to DJOFL plus net interest expense, income tax provision (benefit), and depreciation and amortization, further adjusted for certain non-cash items, non-recurring items and other adjustment items as permitted in calculating covenant compliance under the Company’s secured term loan and revolving credit facilities (“Senior Secured Credit Facilities”) and the indentures governing its 8.125% second lien notes and its 10.75% third lien notes. A reconciliation between net loss attributable to DJOFL and Adjusted EBITDA is included in the attached financial tables.

Net cash provided by continuing operating activities for the first quarter of 2018 was $12.2 million compared to $38.6 million in the first quarter of 2017. The decline in cash flow was attributable to higher inventory balances to allow for the transition of suppliers and modernization of distribution facilities as part of the Company’s transformation initiative, and to the payment of one-time costs accrued in the prior year.

Conference Call Information

DJO has scheduled a conference call to discuss this announcement beginning at 4:30 pm, Eastern Time Thursday, May 10, 2018. Individuals interested in listening to the conference call may do so by dialing (866) 394-8509 (International callers please use (706) 643-6833), using the reservation code 22322226. A telephone replay will be available for 48 hours following the conclusion of the call by dialing (855) 859-2056 and using the above reservation code. The live conference call and replay will be available via the Internet at www.DJOglobal.com.

About DJO Global

DJO Global is a leading global provider of medical technologies designed to get and keep people moving. The Company’s products address the continuum of patient care from injury prevention to rehabilitation, enabling people to regain or maintain their natural motion. Its products are used by orthopaedic surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers and other healthcare professionals. In addition, many of the Company’s medical devices and related accessories are used by athletes and patients for injury prevention and at-home physical therapy treatment. The Company’s product lines include rigid and soft orthopaedic bracing, hot and cold therapy, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators used for pain management and physical therapy products. The Company’s surgical division offers a comprehensive suite of reconstructive joint products for the hip, knee and shoulder. DJO Global’s products are marketed under a portfolio of brands including Aircast®, Chattanooga, CMF™, Compex®, DonJoy®, ProCare®, DJO® Surgical, Dr. Comfort® and Exos^TM. For additional information on the Company, please visit www.DJOglobal.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements relate to, among other things, the Company’s expectations for improved liquidity, estimated cost reductions associated with the execution of its business transformation plans and improved efficiencies. The words “believe,” “will,” “should,” “expect,” “target,” “intend,” “estimate” and “anticipate,” variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based on the Company’s current expectations and are subject to a number of risks, uncertainties and assumptions, many of which are beyond the Company’s ability to control or predict. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The important factors that could cause actual operating results to differ significantly from those expressed or implied by such forward-looking statements include, but are not limited to the successful execution of the Company’s business transformation plans, including achievement of planned actions to improve liquidity, improvements in operational effectiveness, optimization of the Company’s procurement activities, improvements in manufacturing, distribution, sales and operations planning, and actions to improve the profitability of the mix of our product and customers. Other important factors that could cause actual operating results to differ significantly from those expressed or implied by such forward-looking statements include, but are not limited to: business strategies relative to our Bracing and Vascular, Recovery Sciences, International and Surgical Implant segments; the continued growth of the markets the Company addresses and any impact on these markets from changes in global economic conditions; the impact of potential reductions in reimbursement levels and coverage by Medicare and other governmental and commercial payers; the Company’s highly leveraged financial position; the Company’s ability to successfully develop, license or acquire, and timely introduce and market new products or product enhancements; risks relating to the Company’s international operations; resources needed and risks involved in complying with government regulations and government investigations; the availability and sufficiency of insurance coverage for pending and future product liability claims; and the effects of healthcare reform, Medicare competitive bidding, managed care and buying groups on the prices of the Company’s products. These and other risk factors related to DJO are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission on March 16, 2018. Many of the factors that will determine the outcome of the subject matter of this press release are beyond the Company’s ability to control or predict.

READ THE REST HERE