For 2014, LDR Grew Revenue by Double Digits

LDR Holding Corporation turned in a solid performance in 2014.

For the year ended Dec. 31, 2014, LDR’s total revenues grew 26.6 percent to $141.3 million, with proceeds from the company’s exclusive technology products swelling 35.2 percent to $125 million. Traditional fusion products revenue fell 15.1 percent to $16.2 million, compared with $19.1 million in fiscal year 2013.

Gross profit for the year was $116.8 million and gross margin was 82.7 percent, compared to a gross profit of $93.6 million and a gross margin of 83.9 percent for the year ended Dec. 31, 2013.

U.S. proceeds jumped 33.2 percent to $109.6 million, while international revenue climbed 8.1 percent to $31.7 million, according to the company’s latest earnings report.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $800,000, compared to an adjusted EBITDA of $3 million for fiscal 2013. 

The company reported solid revenue growth in the fourth quarter as well. Final quarter proceeds ballooned 23.6 percent to $39.5 million, fueled partly by a 30.6 percent increase in exclusive technology products ($35.8 million). U.S. revenues jumped 28.8 percent to $32 million, and represented 81 percent of total revenue. International sales increased 5.5 percent during the fourth quarter, and represented 19 percent of total revenue.

Cervical product sales grew 47.1 percent in Q4 to $25.5 million, due principally to the growth from the Mobi-C cervical disc. Additionally, lumbar product sales climbed 2.4 percent to $10.3 million. 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, executives noted.

“We reported another quarter of strong growth in our exclusive technology products, including both our cervical and lumbar product lines,” said Christophe Lavigne, LDR president and CEO. “To date, there have been more than 80,000 VerteBRIDGE and 30,000 Mobi-C implantations worldwide. A specific Category I CPT reimbursement code for two-level cervical disc procedures in the U.S. went into effect on Jan. 1, 2015, and a DRG reimbursement code for cervical disc replacement procedures became effective Oct. 1, 2014. We believe these developments will facilitate further surgeon adoption of Mobi-C.”

Gross profit for Q4 2014 was $32.7 million and gross margin was 82.7 percent, compared to gross profit of $26.6 million and gross margin of 83.2 percent for the fourth quarter of 2013. Officials attributed the gross margin percentage decline 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 12 cents per share, compared to a net loss of $15.1 million, or 69 cents per share, for the same quarter in 2013.

Adjusted EBITDA for the fourth quarter of 2014 was $700,000 compared with adjusted EBITDA of $1 million for the fourth quarter of 2013.

LDR bigwigs expect revenue growth for the full year 2015 to range between 15.5 percent and 17 percent before any foreign exchange impact with 2015 revenues fluctuating from $163 million to $165 million. Based on current foreign exchange rates, changes in foreign exchange rates are expected to negatively impact 2015 revenue by 3.5 percent to 4.5 percent.

LDR develops spinal procedure technology. The company has operations in Troyes, France, and Austin, Texas.