DJO Global saw losses shrink and sales rise as a result of internal efforts to transform its business and reduce costs, according to its first quarter earnings release.
The privately held, San Diego-based medical device maker posted losses of $17.6 million on sales of $292.6 million for the three months ended March 31, seeing losses shrink 56% while sales grew 1.5% compared with the same period during the previous year.
DJO Global reported that its adjusted EBITDA increased 13.2% over the same year during the previous quarter, clocking in at $64.8 million.
“After starting the quarter with slow revenue trends reflecting the overall market performance, we saw improvement later in the quarter, particularly in March. In line with our annual plan, we expect to build revenue momentum throughout the year as growth investments that began late in 2017 begin to materialize. Overall performance was highlighted by continued, strong earnings growth and significant margin expansion,” prez & CEO Brady Shirley said in a press release.
“From a bottom-line perspective, we continue to demonstrate that our multi-year transformation is working, delivering 13% Adjusted EBITDA growth and over 200 basis point improvement in margin. The growth in Adjusted EBITDA is a product of improving gross margins and strong control of operating expenses, reflecting the hard work our team has put into our transformation initiatives. Additional operations initiatives are already underway focused on enhancing customer satisfaction as well as financial metrics. We remain confident in our ability to continue the improvement we have seen since the start of this journey early last year,” DJO CFO & COO Mike Eklund said in a prepared statement.