AUSTIN, Texas, Feb. 18, 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 fourth quarter and year ended December 31, 2014.
Fourth Quarter 2014 Revenue Highlights
- Total revenue in the fourth quarter of 2014 increased 23.6% to $39.5 million, compared to $32.0 million in the fourth quarter of 2013.
- Revenue in the fourth quarter of 2014 from exclusive technology products grew 30.6% to $35.8 million, compared to $27.4 million in the fourth quarter of 2013.
- Revenue in the United States increased 28.8% to $32.0 million in the fourth quarter of 2014, compared to $24.8 million in the fourth quarter of 2013, and represented 81.0% of total revenue.
- International revenue increased 5.5% during the fourth quarter of 2014 to $7.5 million compared to $7.1 million in the fourth quarter of 2013, and represented 19.0% of total revenue.
Revenue from sales of the Company’s exclusive cervical products grew 47.1% in the fourth quarter of 2014 to $25.5 million, compared with $17.3 million in the fourth quarter of 2013, due principally to the growth from the Mobi-C® cervical disc. Additionally, revenue from LDR’s exclusive lumbar products in the fourth quarter increased 2.4% to $10.3 million, compared with $10.1 million in the fourth quarter of 2013. 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 the balance of LDR’s exclusive technology product lines for use in surgical cases where fusion is appropriate.
Christophe Lavigne, President and Chief Executive Officer of LDR, commented, “We reported another quarter of strong growth in our exclusive technology products, including both our cervical and lumbar product lines. We want to thank surgeons for their support and our employees and distributors for their tremendous effort in making 2014 another very successful year for LDR, growing our year-over-year quarterly revenues by 20% or more in each quarter this year. To date, there have been more than 80,000 VerteBRIDGE and 30,000 Mobi-C implantations worldwide.” He added, “A specific Category I CPT reimbursement code for two-level cervical disc procedures in the U.S. went into effect on January 1, 2015, and a DRG reimbursement code for cervical disc replacement procedures became effective October 1, 2014. Now both spine surgeons and hospitals will have reimbursement payment codes in place related to two-level Mobi-C procedures. We believe these developments will facilitate further surgeon adoption of Mobi-C.”
Gross profit for the fourth quarter of 2014 was $32.7 million and gross margin was 82.7%, compared to gross profit of $26.6 million and gross margin of 83.2% for the fourth quarter of 2013. This gross margin percentage decrease is primarily due to increased inventory reserves associated with the build-up of inventory related to product launches and enhancements.
Net loss for the fourth quarter of 2014 was $3.1 million, or $0.12 per share, compared to a net loss of $15.1 million, or $0.69 per share, for the same quarter a year ago.
Adjusted EBITDA for the fourth quarter of 2014 was $(0.7) million compared to adjusted EBITDA of $1.0 million for the fourth quarter of 2013.
Mr. Lavigne added, “Consistent with our Horizon 2016 plan, we continued to make investments in sales and marketing, physician education and reimbursement in the fourth quarter, as well as substantial investments in inventory and capital, including instrumentation sets, 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 the 5-year data from the PMA trial on Mobi-C versus fusion for one- and two-level disc disease was presented in five podium presentations at the North American Spine Society meeting on November 12, 2014. 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 the presentation and upcoming publication of the 5-year PMA trial data, combined with 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, will be very important to payors in making Mobi-C coverage and reimbursement decisions.”
Fiscal Year 2014 Revenue Highlights
For the year ended December 31, 2014, LDR’s total revenue was $141.3 million, an increase of 26.6%, compared to $111.6 million for the year ended December 31, 2013. For fiscal year 2014, revenue from LDR’s exclusive technology products grew 35.2% to $125.0 million compared to $92.5 million in fiscal year 2013. Revenue from traditional fusion products decreased 15.1% to $16.2 million in fiscal year 2014 compared to $19.1 million in fiscal year 2013.
Gross profit for the year ended December 31, 2014 was $116.8 million and gross margin was 82.7%, compared to a gross profit of $93.6 million and a gross margin of 83.9% for the year ended December 31, 2013.
For the year ended December 31, 2014, LDR’s revenue in the United States increased 33.2% to $109.6 million, compared to $82.3 million for the year ended December 31, 2013. International revenue increased 8.1% to $31.7 million, compared to $29.3 million in fiscal year 2013.
For the year ended December 31, 2014, net loss totaled $11.0 million, or $0.43 per diluted share, compared to a net loss of $27.9 million, or $3.09 per diluted share, for fiscal year 2013, (which included $7.4 million in non-cash expense related to the beneficial conversion of promissory notes, $6.9 million in non-cash accretion related to warrants and discounts on long-term debt and $5.6 million in non-cash expenses associated with the revaluation of warrants leading up to LDR’s initial public offering).
For the year ended December 31, 2014, adjusted EBITDA was $(0.8) million, compared to an adjusted EBITDA of $3.0 million for fiscal year 2013.
Balance Sheet and Liquidity
As of December 31, 2014, LDR had $73.9 million in cash and cash equivalents, $98.9 million in working capital and $24.9 million in debt.
2015 Guidance
Based on LDR’s results for the year ended December 31, 2014, LDR expects revenue growth for the full year 2015 to be in the range of 15.5% to 17.0%, before any foreign exchange impact. This implies revenues, before any foreign exchange impact, in the range of approximately $163.0 million to $165.0 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 3.5% to 4.5%.
Conference Call
LDR Holding Corporation will host a conference call today at 5:00 p.m. Eastern Time to discuss its fourth quarter and fiscal year 2014 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 78924723. For those who are not available to listen to the live webcast, the call will be archived for 90 days on LDR Holding’s website.
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