AUSTIN, Texas, Aug. 5, 2015 (GLOBE NEWSWIRE) — LDR Holding Corporation (NASDAQ:LDRH), a global medical device company focused on designing and commercializing novel and proprietary surgical technologies for the treatment of patients suffering from spine disorders, today reported its financial results for the second quarter ended June 30, 2015.
Second Quarter 2015 Revenue Highlights
- Total revenue in the second quarter of 2015 increased 19.4% to $41.5 million, compared to $34.8 million in the second quarter of 2014. On a constant currency basis, total revenue grew 25.5%.
- Revenue from exclusive technology products in the second quarter of 2015 grew 25.8% to $38.2 million, compared to $30.4 million in the second quarter of 2014. On a constant currency basis, exclusive technology products revenue grew 30.1%.
- Revenue in the United States increased 26.4% to $33.3 million in the second quarter of 2015, compared to $26.3 million in the second quarter of 2014, and represented 80.2% of total revenue.
- International revenue decreased 2.3% during the second quarter of 2015 to $8.2 million compared to $8.4 million in the second quarter of 2014. On a constant currency basis, international revenue increased 22.6%.
Revenue from sales of the Company’s exclusive cervical products grew 36.5%, or 41.5% on a constant currency basis, in the second quarter of 2015 to $28.6 million, compared with $21.0 million in the second quarter of 2014, due principally to the growth from sales of the Mobi-C® cervical disc. Additionally, revenue from LDR’s exclusive lumbar products in the second quarter increased 2.0%, or 4.8% on a constant currency basis, to $9.6 million, compared with $9.4 million in the second quarter of 2014. Along with growth in the Company’s non-fusion products, led by Mobi-C, sales of LDR’s VerteBRIDGE®fusion products for both the cervical and lumbar spine continued to grow, in part, because surgeons who were trained on the use of Mobi-C were introduced to the VerteBRIDGE exclusive technology product lines for use in surgical cases where fusion is appropriate.
Christophe Lavigne, President and Chief Executive Officer of LDR, commented, “I am pleased to announce that in June 2015, we received 510(k) clearance from the FDA for our Avenue® T posterior transforaminal interbody fusion cage. Avenue T is our first posterior interbody solution for the lumbar spine incorporating VerteBRIDGE Plating Technology.” He added, “We believe that Avenue T, along with our other current and planned exclusive lumbar technologies, enables a new vision for the instrumented surgical treatment of the degenerative lumbar spine. The Minimal Implant Volume concept, or MIVo, is a new surgical philosophy, which, in the lumbar spine, extends the benefits of VerteBRIDGE to new applications. We believe this approach may allow surgeons to reduce the volume of spinal implant hardware by 45% to 60% as compared to traditional pedicle screw constructs, reduce the trauma and soft tissue disruption through a minimally invasive surgical approach and preserve surgical revision options if necessary in the future. The MIVo approach avoids the use of pedicle screws through the combination of the benefits of the primary stability provided by VerteBRIDGE Plating Technology with less invasive additional posterior stabilization such as our InterBRIDGE® interspinous fusion device.”
Gross profit for the second quarter of 2015 was $34.7 million and gross margin was 83.6%, compared to gross profit of $28.9 million and gross margin of 83.1% for the second quarter of 2014. The improvement in gross margin is due to geographic mix and better freight rate management, partially offset by royalties due to product mix.
Net loss for the second quarter of 2015 was $5.8 million, or $0.22 per share, compared to a net loss of $2.3 million, or $0.09 per share, for the same quarter a year ago.
Adjusted EBITDA for the second quarter of 2015 was $(0.7) million compared to adjusted EBITDA of $0.7 million for the second quarter of 2014.
Mr. Lavigne added, “During the second quarter, two papers related to our unique technologies were published, one in the Journal of Spinal Disorders and Techniques and another in Spine, including the four-year data from the PMA trial on Mobi-C versus fusion for one-level, and one and two-level cervical disc disease, respectively, adding to the clinical publications supporting our technologies. Moreover, we are excited to announce that there will be three podium presentations on the long-term, five-year evidence on Mobi-C versus fusion for one and two-level disc disease at the North American Spine Society (NASS) annual meeting October 14-17, 2015 in Chicago, IL. We believe that these podium presentations, complementing five podium presentations at NASS 2014 last November, and presentations made at other international spine societies during 2015, are important in establishing Mobi-C as the leading cervical non-fusion option for surgeons and their patients.”
He continued, “We continued to execute on our Horizon 2016 plan in the second quarter, making investments in sales, marketing, physician education and reimbursement to develop and adapt our organization to take advantage of our ‘first mover’ position with Mobi-C being the only FDA-approved two-level cervical disc replacement solution.”
Balance Sheet and Liquidity
As of June 30, 2015, LDR had $62.6 million in cash and cash equivalents, $74.4 million in working capital (including cash and cash equivalents) and $24.2 million in debt.
2015 Guidance
Based on LDR’s results for the quarter ended June 30, 2015, the Company is raising its expected revenue growth for the full year 2015 to be in the range of 19.0% to 20.0%, before any foreign exchange impact. This implies revenues, before any foreign exchange impact, in the range of approximately $168.1 million to $169.5 million for the full year 2015. Based on current foreign exchange rates, changes in foreign exchange rates are expected to negatively impact 2015 revenue by 4.0% to 5.0%.
Conference Call
LDR Holding Corporation will host a conference call today at 5:00 p.m. Eastern Time to discuss its second quarter and fiscal year 2015 financial results. The conference call will be available to interested parties through a live audio webcast available through LDR’s website at www.ldr.com. Those without internet access may join the call from within the United States by dialing (877) 312-5637; outside the United States, by dialing (253) 237-1149.
A telephone replay will be available for two weeks following the call by dialing (855) 859-2056 for domestic participants and (404) 537-3406 for international participants. When prompted, please enter the replay pin number 85610347. For those who are not available to listen to the live webcast, the call will be archived for 90 days on LDR’s website.
