K2M Group Holdings, Inc. Reports Preliminary Second Quarter Financial Results Including Domestic Revenue Growth of 24%

LEESBURG, Va., July 7, 2015 (GLOBE NEWSWIRE) — K2M Group Holdings, Inc. (NASDAQ:KTWO) today reported preliminary financial results for the three months ending June 30, 2015.

Preliminary Highlights:

• Total Q2 revenue of approximately $55.9 million to $56.4 million, up approximately 18% to 19% year-over-year, or 19% to 20% in constant currency.
• Domestic Q2 revenue of approximately $41.2 million to $41.4 million, up approximately 24% to 25% year-over-year.
• International Q2 revenue of approximately $14.7 million to $15.0 million, up approximately 3% to 5% year-over-year, or 7% to 9% in constant currency.
• For the fiscal quarter ended June 30, 2015, we estimate that our net loss will range from $6.5 million to $8.5 million, compared with a net loss of $17.7 million for the fiscal quarter ended June 30, 2014. The estimated net loss for the fiscal quarter ended June 30, 2015 is expected to be less than our net loss for the fiscal quarter ended June 30, 2014, primarily as a result of higher revenue, favorable foreign currency adjustments on lower intercompany balances and strengthening of the U.S. dollar compared to other currencies, and lower intangible amortization expenses.

“Our preliminary financial results for the second quarter of 2015 reflect revenue growth of approximately 20% year-over-year, driven by continued strength in our domestic business,” said President and Chief Executive Officer, Eric Major. “We remain focused on increasing our share of the $2.6 billion global complex spine and minimally invasive surgery markets and on driving shareholder value creation going forward.”

The financial estimates presented above are preliminary and remain subject to management’s final review as well as review by the Company’s independent registered accounting firm. The Company intends to report complete second quarter 2015 financial results on August 4, 2015. Details regarding the timing of the release of those results, as well as details of a conference call and publicly available webcast, have been announced in a separate press release.

About K2M Group Holdings, Inc.

K2M Group Holdings, Inc. is a global medical device company focused on designing, developing and commercializing innovative complex spine and minimally invasive spine technologies and techniques used by surgeons to treat some of the most difficult and challenging spinal pathologies. K2M has leveraged these core competencies to bring to market an increasing number of products for patients suffering from degenerative spinal conditions. These technologies and techniques, in combination with a robust product pipeline, enable the company to favorably compete in the global spinal surgery market.