AUSTIN, Texas, May 6, 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 first quarter ended March 31, 2015.
First Quarter 2015 Revenue Highlights
- Total revenue in the first quarter of 2015 increased 25.9% to $39.1 million, compared to $31.1 million in the first quarter of 2014. On a constant currency basis, total revenue grew 31.4%.
- Revenue from exclusive technology products in the first quarter of 2015 grew 34.6% to $35.9 million, compared to $26.7 million in the first quarter of 2014.
- Revenue in the United States increased 35.2% to $31.3 million in the first quarter of 2015, compared to $23.2 million in the first quarter of 2014, and represented 80.1% of total revenue.
- International revenue decreased 1.4% during the first quarter of 2015 to $7.8 million compared to $7.9 million in the first quarter of 2014, and represented 19.9% of total revenue. On a constant currency basis, international revenue grew 20.2% during the same period.
Revenue from sales of the Company’s exclusive cervical products grew 48.9% in the first quarter of 2015 to $26.5 million, compared with $17.8 million in the first quarter of 2014, due principally to the growth from the Mobi-C® cervical disc. Additionally, revenue from LDR’s exclusive lumbar products in the first quarter increased 6.0% to $9.4 million, compared with $8.9 million in the first quarter of 2014. Along with growth in the Company’s non-fusion products, led by Mobi-C, 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 VerteBRIDGE exclusive technology product lines for use in surgical cases where fusion is appropriate.
Christophe Lavigne, President and Chief Executive Officer of LDR, commented, “We are gratified by the demand for our products by our spine surgeon customers. As our results show, the uniqueness of LDR’s products continues to support sustainable revenue growth. While both our exclusive technology lines grew, cervical continues to be the primary driver of total revenue growth as we are increasingly recognized as a leader in bringing a global cervical solution to surgeons with non-fusion and fusion technologies.” He added, “Our lumbar products grew above the market, and we will continue to focus more on this area where we see opportunities to improve patient outcomes by providing new surgical alternatives to surgeons.”
Gross profit for the first quarter of 2015 was $32.7 million and gross margin was 83.5%, compared to gross profit of $25.8 million and gross margin of 83.1% for the first quarter of 2014. The improvement in gross margin is due to better freight rate management and lower inventory reserves associated with the value of our inventory, partially offset by royalties due to product mix.
Net loss for the first quarter of 2015 was $3.2 million, or $0.12 per share, compared to a net loss of $3.5 million, or $0.15 per share, for the same quarter a year ago.
Adjusted EBITDA for the first quarter of 2015 was $(1.4) million compared to adjusted EBITDA of $(1.0) million for the first quarter of 2014.
Mr. Lavigne added, “We continued to execute on our Horizon 2016 plan in the first 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.”
He continued, “We are pleased that data related to our unique technologies were included in six podium presentations at the International Society for the Advancement of Spine Surgery (ISASS) Annual Conference from April 15 to April 17, 2015, including 5-year data from the PMA trial on Mobi-C versus fusion for one- and two-level disc disease. Spine surgeons often regard 5-year data as an important milestone to evaluate an implant’s demonstrable long-term clinical benefit and reliability. We believe that these podium presentations, along with those at the North American Spine Society conference last November and upcoming presentations at other international spine societies, will be important in establishing Mobi-C as a leading non-fusion option for surgeons and their patients. We believe the dissemination of the 5-year PMA trial data and the publication of a study of the cost effectiveness of cervical total disc replacement with Mobi-C versus fusion for the treatment of two-level degenerative disc disease in the prestigious journal JAMA Surgery, has been and will continue to be important as payors make coverage decisions in the foreseeable future.”
Balance Sheet and Liquidity
As of March 31, 2015, LDR had $65.4 million in cash and cash equivalents, $93.7 million in working capital (including cash and cash equivalents) and $24.1 million in debt.
2015 Guidance
Based on LDR’s results for the quarter ended March 31, 2015, LDR expects revenue growth for the full year 2015 to be in the range of 18% to 19%, before any foreign exchange impact. This implies revenues, before any foreign exchange impact, in the range of approximately $166.7 million to $168.1 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 5% to 6%.
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