2022 Q4 Form 10-Q Financial Statement

#000142545022000107 Filed on November 01, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022 Q3
Revenue $30.99M $34.95M
YoY Change 24.91% 39.36%
Cost Of Revenue $9.770M $9.061M
YoY Change 45.13% 38.87%
Gross Profit $21.22M $25.89M
YoY Change 17.38% 39.53%
Gross Profit Margin 68.48% 74.07%
Selling, General & Admin $27.50M $27.04M
YoY Change 27.46% 29.38%
% of Gross Profit 129.56% 104.43%
Research & Development $2.034M $2.206M
YoY Change 26.49% 69.43%
% of Gross Profit 9.58% 8.52%
Depreciation & Amortization $3.520M $3.287M
YoY Change 25.27% 20.71%
% of Gross Profit 16.58% 12.7%
Operating Expenses $29.53M $32.85M
YoY Change 27.4% 47.99%
Operating Profit -$8.308M -$6.961M
YoY Change 49.4% 91.03%
Interest Expense $541.0K $22.30M
YoY Change -89.42% 2411.49%
% of Operating Profit
Other Income/Expense, Net -$128.0K $21.36M
YoY Change -145.55% 1749.09%
Pretax Income -$7.896M $14.40M
YoY Change 4656.63% -678.38%
Income Tax -$48.00K -$4.143M
% Of Pretax Income -28.78%
Net Earnings -$7.848M $18.54M
YoY Change -11000.0% -943.83%
Net Earnings / Revenue -25.32% 53.04%
Basic Earnings Per Share $0.88
Diluted Earnings Per Share -$0.38 $0.87
COMMON SHARES
Basic Shares Outstanding 22.89M shares 20.28M shares
Diluted Shares Outstanding 21.30M shares

Balance Sheet

Concept 2022 Q4 2022 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $118.3M $120.1M
YoY Change 120.93% 108.26%
Cash & Equivalents $10.46M $36.87M
Short-Term Investments
Other Short-Term Assets $5.437M $4.200M
YoY Change 18.35% 2.12%
Inventory $78.19M $74.04M
Prepaid Expenses
Receivables $24.80M $26.18M
Other Receivables $0.00 $0.00
Total Short-Term Assets $226.7M $224.6M
YoY Change 69.64% 65.78%
LONG-TERM ASSETS
Property, Plant & Equipment $34.29M $36.31M
YoY Change 20.24% 26.16%
Goodwill $86.82M $88.04M
YoY Change 20.0% 24.9%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $0.00
YoY Change
Total Long-Term Assets $201.0M $205.5M
YoY Change 17.81% 22.22%
TOTAL ASSETS
Total Short-Term Assets $226.7M $224.6M
Total Long-Term Assets $201.0M $205.5M
Total Assets $427.7M $430.1M
YoY Change 40.57% 41.65%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $11.15M $10.88M
YoY Change 19.57% 21.28%
Accrued Expenses $6.744M $6.323M
YoY Change 26.03% 35.83%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $144.0K $143.0K
YoY Change 5.11% 5.15%
Total Short-Term Liabilities $30.87M $28.75M
YoY Change 3.89% 2.6%
LONG-TERM LIABILITIES
Long-Term Debt $763.0K $799.0K
YoY Change -15.88% -15.18%
Other Long-Term Liabilities $492.0K $440.0K
YoY Change 67.92% 37.5%
Total Long-Term Liabilities $18.21M $17.98M
YoY Change -62.98% -66.99%
TOTAL LIABILITIES
Total Short-Term Liabilities $30.87M $28.75M
Total Long-Term Liabilities $18.21M $17.98M
Total Liabilities $49.08M $46.72M
YoY Change -37.8% -43.35%
SHAREHOLDERS EQUITY
Retained Earnings -$176.8M -$168.9M
YoY Change -0.71% -5.15%
Common Stock $6.000K $6.000K
YoY Change 20.0% 20.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $378.6M $383.3M
YoY Change
Total Liabilities & Shareholders Equity $427.7M $430.1M
YoY Change 40.57% 41.65%

Cashflow Statement

Concept 2022 Q4 2022 Q3
OPERATING ACTIVITIES
Net Income -$7.848M $18.54M
YoY Change -11000.0% -943.83%
Depreciation, Depletion And Amortization $3.520M $3.287M
YoY Change 25.27% 20.71%
Cash From Operating Activities -$3.341M -$6.058M
YoY Change 170.53% 546.53%
INVESTING ACTIVITIES
Capital Expenditures -$523.0K -$1.089M
YoY Change -68.01% -84.54%
Acquisitions
YoY Change
Other Investing Activities -$23.75M -$102.8M
YoY Change -616.3% -2670.75%
Cash From Investing Activities -$23.23M -$103.9M
YoY Change -883.37% 3313.9%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -35.00K 108.3M
YoY Change 2.94% 257680.95%
NET CHANGE
Cash From Operating Activities -3.341M -6.058M
Cash From Investing Activities -23.23M -103.9M
Cash From Financing Activities -35.00K 108.3M
Net Change In Cash -26.60M -1.709M
YoY Change -1668.57% -56.61%
FREE CASH FLOW
Cash From Operating Activities -$3.341M -$6.058M
Capital Expenditures -$523.0K -$1.089M
Free Cash Flow -$2.818M -$4.969M
YoY Change -804.5% -181.37%

Facts In Submission

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BUSINESS<div style="padding-right:8pt"><span style="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, instruments and braces 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><span style="color:#000000;font-family:'Arial',sans-serif;font-size:6.5pt;font-weight:400;line-height:121%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%">, PediPlates</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:6.5pt;font-weight:400;line-height:121%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%">, Cannulated Screws, PediFlex</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:4.22pt;font-weight:400;line-height:121%;position:relative;top:-2.27pt;vertical-align:baseline">TM</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:6.5pt;font-weight:400;line-height:121%"> </span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%">nail, PediNail</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:4.22pt;font-weight:400;line-height:121%;position:relative;top:-2.27pt;vertical-align:baseline">TM</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%">, PediLoc</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:6.5pt;font-weight:400;line-height:121%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="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</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:4.22pt;font-weight:400;line-height:121%;position:relative;top:-2.27pt;vertical-align:baseline">TM</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%"> Spine, BandLoc</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:4.22pt;font-weight:400;line-height:121%;position:relative;top:-2.27pt;vertical-align:baseline">TM</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%">, Pediatric Nailing Platform | Femur, Devise Rail, Orthex, Cerament</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:6.5pt;font-weight:400;line-height:121%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:4.22pt;font-weight:400;line-height:121%;position:relative;top:-2.27pt;vertical-align:baseline"> </span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%"> and ApiFix</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:6.5pt;font-weight:400;line-height:121%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%"> Mid-C System, 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 style="padding-right:8pt"><span><br/></span></div><div style="padding-right:5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%">We are the only global medical device company focused exclusively on providing a comprehensive trauma and deformity correction, scoliosis and sports medicine product offering to the pediatric orthopedic market in order to improve the lives of children with orthopedic conditions. Since inception we have impacted the lives of over 613,000 children. We design, develop and commercialize innovative orthopedic implants and instruments to meet the specialized needs of pediatric surgeons and their patients, who we believe have been largely neglected by the orthopedic industry. We currently serve three of the largest categories in this market. We estimate that the portion of this market that we currently serve represents a $3,300,000 opportunity globally, including over $1,500,000 in the United States.</span></div><div style="padding-right:5pt"><span><br/></span></div><div style="padding-right:5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:121%">Our largest investor is Squadron Capital LLC, or Squadron, a private investment firm based in Granby, Connecticut. </span></div>A novel strain of the coronavirus disease was first identified in Wuhan, China in December 2019, and the related outbreak was subsequently declared a pandemic by the World Health Organization and a national emergency by the President of the United States. Since then, the pandemic has presented a significant public health and economic challenge around the world and has adversely impacted our business. Specifically, we have seen surgeons and their patients deferring elective procedures in which our products would have otherwise been used. The volatility in COVID cases and hospitalizations, including the impacts of the Delta variant in the third quarter of 2021 and the current hospital support staffing shortages in certain geographies, continue to drive volatility into our business. We continue to closely monitor developments related to the pandemic and the related staffing shortages and our decisions will continue to focus on the safety and security of our employees, distributors, surgeons and their patients while maintaining operations to support our customers. The full extent of the impact of the pandemic on our business is uncertain and cannot be accurately predicted and will depend on future developments that are also uncertain and cannot be predicted.
CY2022Q3 kids Cumulative Children Impacted Count
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613000 children
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<div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Preparation of our 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 </span></div>inherent degree of 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 our consolidated financial statements.
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us-gaap Business Combination Pro Forma Information Revenue Of Acquiree Since Acquisition Date Actual
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CY2022Q3 us-gaap Business Acquisitions Pro Forma Revenue
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CY2022Q3 us-gaap Goodwill
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us-gaap Business Combination Contingent Consideration Arrangements Change In Amount Of Contingent Consideration Liability1
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us-gaap Business Combination Contingent Consideration Arrangements Change In Amount Of Contingent Consideration Liability1
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CY2022Q3 us-gaap Deferred Tax Liabilities
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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PurchaseCommitmentRemainingMinimumAmountCommitted
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