RTI Surgical Q2 Revenues Surge 56 Percent

The second quarter of 2014 was anything but second-best for RTISurgical Inc. Revenues at the Alachua, Fla.-based company skyrocketed 56 percent to $66 million, and international sales jumped 37 percent (on a constant currency basis) to $7 million.Worldwide revenues for the second quarter of 2014 included $23.5 million from the Pioneer Surgical Technology acquisition completed in July 2013. If Pioneer revenues had been included for the second quarter for both 2013 and 2014, worldwide revenues would have increased by 6 percent.

“We are extremely pleased with our results from the second quarter. Revenues exceeded our expectations and signify, in our opinion, that our business has not only stabilized but has momentum moving into the second half of the year,” President/CEO Brian K. Hutchison said. “We made progress in meeting the goals we shared in our first quarter earnings press release — recovery and growth in our sports and spine businesses, traction in surgical specialties and expanded distribution of map3 cellular allogeneic bone graft.”

For the second quarter of 2014, the company reported a net income applicable to common shares of $1.6 million and net income per fully diluted common share of $0.03, based on 57.1 million fully diluted shares outstanding, compared to net loss applicable to common shares of $3 million and net loss per fully diluted common share of $0.05 for the second quarter of 2013, based on 56.3 million fully diluted shares outstanding.

Spine revenues climbed 12 percent to $21.3 million, while orthofixation proceeds jumped 18 percent to $8.9 million compared to the first quarter of 2014.

During the three-month period ended June 30, RTI launched the Streamline OCT System – designed to promote fusion of the occipto-cervico-thoracic spine – for the spine business and announced the first implantation of strips configuration of map3 cellular allogeneic bone graft.

Based on its first half results, RTI is raising its full-year guidance, anticipating total sales to fall between $258 million and $261 million. On a non-GAAP basis, excluding a first quarter inventory purchase price accounting adjustment, the company expects full year net income per fully diluted common share range between 9 cents and 11 cents, based on 57 million fully diluted common shares outstanding, as compared to a prior guidance of 7 cents to 9 cents.

For the third quarter of 2014, the company expects revenues to be between $64 million and $65 million and net income per fully diluted common share to be approximately 2 cents, based on 57.2 million fully diluted shares outstanding.

“The third quarter has traditionally been impacted by seasonality trends in surgeries,” Hutchison said, “however, based on our results from the first half, I am optimistic that we can capitalize on our momentum and meet our growth goals for the year.”