2020 Q1 Form 10-Q Financial Statement

#000142545020000043 Filed on May 06, 2020

View on sec.gov

Income Statement

Concept 2020 Q1 2019 Q4 2019 Q1
Revenue $16.36M $18.95M $14.66M
YoY Change 11.6% 30.09% 21.18%
Cost Of Revenue $4.143M $4.500M $4.001M
YoY Change 3.55% 11.11% 26.02%
Gross Profit $12.21M $14.45M $10.66M
YoY Change 14.62% 37.44% 19.46%
Gross Profit Margin 74.67% 76.25% 72.7%
Selling, General & Admin $15.45M $15.58M $12.16M
YoY Change 27.03% 40.36% 0.52%
% of Gross Profit 126.46% 107.82% 114.12%
Research & Development $1.265M $1.910M $1.213M
YoY Change 4.29% 49.22% -0.41%
% of Gross Profit 10.36% 13.22% 11.38%
Depreciation & Amortization $1.375M $1.410M $828.0K
YoY Change 66.06% 98.59% 21.59%
% of Gross Profit 11.26% 9.76% 7.77%
Operating Expenses $16.71M $17.48M $13.37M
YoY Change 24.96% 41.2% 0.44%
Operating Profit -$4.497M -$3.031M -$2.717M
YoY Change 65.51% 62.43% -38.18%
Interest Expense -$380.0K -$1.310M -$300.0K
YoY Change 26.67% 147.17% -45.45%
% of Operating Profit
Other Income/Expense, Net -$448.0K $10.00K -$303.0K
YoY Change 47.85% -114.29% -49.92%
Pretax Income -$4.945M -$4.329M -$3.020M
YoY Change 63.74% 75.26% -39.6%
Income Tax $0.00 $0.00
% Of Pretax Income
Net Earnings -$4.945M -$5.429M -$3.020M
YoY Change 63.74% 119.98% -39.6%
Net Earnings / Revenue -30.23% -28.65% -20.61%
Basic Earnings Per Share -$0.30
Diluted Earnings Per Share -$0.30 -$361.0K -$210.2K
COMMON SHARES
Basic Shares Outstanding 16.42M shares 14.97M shares 14.54M shares
Diluted Shares Outstanding 16.42M shares

Balance Sheet

Concept 2020 Q1 2019 Q4 2019 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $53.60M $70.80M $52.80M
YoY Change 1.52% 16.64% 52.6%
Cash & Equivalents $53.58M $70.78M $52.77M
Short-Term Investments
Other Short-Term Assets $2.900M $2.800M $1.500M
YoY Change 93.33% 115.38% 36.36%
Inventory $43.97M $38.00M $28.08M
Prepaid Expenses
Receivables $14.12M $16.00M $10.30M
Other Receivables $600.0K $600.0K $500.0K
Total Short-Term Assets $115.1M $128.1M $93.11M
YoY Change 23.64% 31.81% 41.19%
LONG-TERM ASSETS
Property, Plant & Equipment $24.08M $21.35M $16.79M
YoY Change 43.42% 67.21% 36.72%
Goodwill $15.18M $13.77M
YoY Change
Intangibles $2.106M
YoY Change -12.76%
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $59.08M $54.10M $18.90M
YoY Change 212.66% 2380.33% 28.59%
TOTAL ASSETS
Total Short-Term Assets $115.1M $128.1M $93.11M
Total Long-Term Assets $59.08M $54.10M $18.90M
Total Assets $174.2M $182.2M $112.0M
YoY Change 55.53% 62.49% 38.89%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $8.262M $6.467M $6.344M
YoY Change 30.23% 62.86% -11.85%
Accrued Expenses $3.000M $4.300M $2.700M
YoY Change 11.11% 19.44% 17.39%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $126.0K $124.0K $120.0K
YoY Change 5.0% 5.08% 5.26%
Total Short-Term Liabilities $13.83M $13.66M $10.82M
YoY Change 27.8% 48.24% 2.39%
LONG-TERM LIABILITIES
Long-Term Debt $21.04M $26.07M $21.13M
YoY Change -0.43% 23.21% -16.53%
Other Long-Term Liabilities $57.00K $63.00K
YoY Change
Total Long-Term Liabilities $21.10M $26.13M $21.13M
YoY Change -0.16% 23.51% -16.53%
TOTAL LIABILITIES
Total Short-Term Liabilities $13.83M $13.66M $10.82M
Total Long-Term Liabilities $21.10M $26.13M $21.13M
Total Liabilities $34.93M $39.79M $31.96M
YoY Change 9.31% 31.01% -10.96%
SHAREHOLDERS EQUITY
Retained Earnings -$133.8M -$128.8M -$118.1M
YoY Change 13.26% 11.93% 9.3%
Common Stock $4.000K $4.000K $4.000K
YoY Change 0.0% 0.0% 100.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $187.0K $0.00
YoY Change
Treasury Stock Shares 4.014K shares 0.000 shares
Shareholders Equity $139.3M $142.4M $80.05M
YoY Change
Total Liabilities & Shareholders Equity $174.2M $182.2M $112.0M
YoY Change 55.53% 62.49% 38.89%

Cashflow Statement

Concept 2020 Q1 2019 Q4 2019 Q1
OPERATING ACTIVITIES
Net Income -$4.945M -$5.429M -$3.020M
YoY Change 63.74% 119.98% -39.6%
Depreciation, Depletion And Amortization $1.375M $1.410M $828.0K
YoY Change 66.06% 98.59% 21.59%
Cash From Operating Activities -$6.956M -$6.930M -$3.471M
YoY Change 100.4% 154.78% -31.04%
INVESTING ACTIVITIES
Capital Expenditures $3.953M -$1.380M $4.963M
YoY Change -20.35% -2860.0% 79.11%
Acquisitions $1.670M $0.00
YoY Change
Other Investing Activities -$1.670M -$150.0K
YoY Change -70.0%
Cash From Investing Activities -$5.623M -$1.530M -$4.982M
YoY Change 12.87% 232.61% 70.03%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $187.0K $0.00
YoY Change
Debt Paid & Issued, Net $29.00K
YoY Change 3.57%
Cash From Financing Activities -$4.530M 59.97M $536.0K
YoY Change -945.15% 52.13% -2014.29%
NET CHANGE
Cash From Operating Activities -$6.956M -6.930M -$3.471M
Cash From Investing Activities -$5.623M -1.530M -$4.982M
Cash From Financing Activities -$4.530M 59.97M $536.0K
Net Change In Cash -$17.09M 51.51M -$7.917M
YoY Change 115.81% 42.14% -0.93%
FREE CASH FLOW
Cash From Operating Activities -$6.956M -$6.930M -$3.471M
Capital Expenditures $3.953M -$1.380M $4.963M
Free Cash Flow -$10.91M -$5.550M -$8.434M
YoY Change 29.35% 100.36% 8.07%

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CY2019Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2020Q1 us-gaap Interest Paid Net
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CY2019Q1 kids Transfer Of Property And Equipment To Inventory
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CY2020Q1 us-gaap Stock Issued1
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CY2019Q1 us-gaap Stock Issued1
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CY2020Q1 us-gaap Nature Of Operations
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BUSINESS<div style="padding-right:8pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%;">OrthoPediatrics Corp., a Delaware corporation, is a medical device company committed to designing, developing and marketing anatomically appropriate implants and devices for children with orthopedic conditions, giving pediatric orthopedic surgeons and caregivers the ability to treat children with technologies specifically designed to meet their needs. We sell our specialized products, including PediLoc</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:6.5pt;font-weight:400;line-height:121%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%;">, PediPlates</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:6.5pt;font-weight:400;line-height:121%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%;">, Cannulated Screws, PediFlex</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:4.22pt;font-weight:400;line-height:121%;vertical-align:top;">TM</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:6.5pt;font-weight:400;line-height:121%;"> </span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%;">nail, PediNail</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:4.22pt;font-weight:400;line-height:121%;vertical-align:top;">TM</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%;">, PediLoc</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:6.5pt;font-weight:400;line-height:121%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%;"> Tibia, ACL Reconstruction System, Locking Cannulated Blade, Locking Proximal Femur, Spica Tables, RESPONSE Spine, BandLoc, Pediguard, Pediatric Nailing Platform | Femur, Orthex, and QuickPack</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:4.22pt;font-weight:400;line-height:121%;vertical-align:top;">TM, </sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%;"> to various hospitals and medical facilities throughout the United States and various international markets. We currently use a contract manufacturing model for the manufacturing of implants and related surgical instrumentation. </span></div><div><span><br/></span></div><div><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">In 2017, we expanded operations and established legal entities in the United Kingdom, Australia and New Zealand, permitting us to sell under an agency model direct to local hospitals in these countries. In September 2018, we further expanded operations in Canada selling direct to local hospitals, and in January 2019 we expanded to Belgium and the Netherlands. Additionally, in March 2019 we established a holding company and an operating company in the Netherlands and began selling direct to Italy in March 2020 enhancing our operations in Europe. </span></div><div><span><br/></span></div><div><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">On June 4, 2019, we purchased all the issued and outstanding shares of stock of Vilex in Tennessee, Inc. ("Vilex") and all the issued and outstanding units of membership interests in Orthex, LLC ("Orthex") for $60,000 in total consideration. Vilex and Orthex (the "Vilex Companies") are primarily manufacturers of foot and ankle surgical implants, including cannulated screws, fusion devices, surgical staples and bone plates, as well as Orthex Hexapod technology which is used to treat pediatrics congenital deformities and limb length discrepancies.</span></div><div><span><br/></span></div><div><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">On December 31, 2019, we divested substantially all of the assets relating to Vilex's adult product offerings to a wholly-owned subsidiary of Squadron Capital LLC ("Squadron") in exchange for a $25,000 reduction in a Term Note owed to Squadron in connection with the initial acquisition. As part of the sale, we also executed an exclusive license arrangement with Squadron providing for perpetual access to certain intellectual property and a mutual distribution agreement. </span></div><div><span><br/></span></div><div><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">On March 9, 2020, we purchased all the issued and outstanding membership interest of Telos Partners, LLC ("Telos") for $3,500 in total consideration. Telos is a boutique regulatory consulting firm formed in Colorado. </span></div>Our largest investor is Squadron, a private investment firm based in Granby, Connecticut.
CY2019Q1 us-gaap Impairment Of Intangible Assets Indefinitelived Excluding Goodwill
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0 USD
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CY2019Q4 us-gaap Retained Earnings Accumulated Deficit
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CY2020Q1 us-gaap Use Of Estimates
UseOfEstimates
Use of EstimatesPreparation of the condensed consolidated financial statements requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, as of the date of the condensed consolidated financial statements. By their nature, these judgments are subject to an inherent degree of uncertainty. The impact of the coronavirus disease ("COVID-19") has significantly increased economic and demand uncertainty. We use historical experience and other assumptions as the basis for our judgments and estimates. Because future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Any changes in these estimates will be reflected in the condensed consolidated financial statements.
CY2019Q1 us-gaap Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
0 USD
CY2020Q1 us-gaap Impairment Of Intangible Assets Indefinitelived Excluding Goodwill
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0 USD
CY2019Q1 us-gaap Impairment Of Intangible Assets Finitelived
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0 USD
CY2020Q1 us-gaap Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
0 USD
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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0 shares
CY2019Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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0 shares
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40.76
CY2019Q2 kids Business Combination Escrow Deposit Maximum Term
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P20M
CY2020Q1 us-gaap Business Combination Acquisition Related Costs
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737000 USD
CY2018Q4 us-gaap Goodwill
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0 USD
CY2019 us-gaap Goodwill Written Off Related To Sale Of Business Unit
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3397000 USD
CY2019Q4 us-gaap Goodwill
Goodwill
13773000 USD
CY2020Q1 us-gaap Goodwill
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15179000 USD
CY2020Q1 us-gaap Debt Longterm And Shortterm Combined Amount
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21169000 USD
CY2019Q4 us-gaap Debt Longterm And Shortterm Combined Amount
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26191000 USD
CY2020Q1 us-gaap Long Term Debt Current
LongTermDebtCurrent
126000 USD
CY2019Q4 us-gaap Long Term Debt Current
LongTermDebtCurrent
124000 USD
CY2020Q1 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
21043000 USD
CY2019Q4 us-gaap Long Term Debt Noncurrent
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26067000 USD
CY2019Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
0 USD
CY2020Q1 us-gaap Income Tax Expense Benefit
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0 USD
CY2019Q1 us-gaap Income Tax Expense Benefit
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0 USD
CY2020Q1 us-gaap Income Tax Expense Benefit
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0 USD
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260000 USD
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16200000 USD
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CY2018Q4 kids Operating Loss Carryforwards Limitationson Use Estimated Amount Subjectto Limitation Annual Limit Increase
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CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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CY2019Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
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CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
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P1Y2M12D
CY2020Q1 us-gaap Stock Issued During Period Shares Stock Options Exercised
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CY2020Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
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CY2020Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
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CY2019Q1 us-gaap Share Based Compensation
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30.97
CY2020Q1 us-gaap Class Of Warrant Or Right Outstanding
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CY2020Q1 us-gaap Treasury Stock Shares
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14656000 USD
CY2020Q1 us-gaap Defined Contribution Plan Employer Matching Contribution Percent
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0.03
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57000 USD
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58000 USD
CY2020Q1 kids Researchand Development Arrangement Contractto Performfor Others Minimum Annual Royalty Payment
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500000 USD

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