K2M (NSDQ:KTWO) today posted second quarter earnings results that beat Wall Street expectations on sales, but missed on loss-per-share consensus.
The Leesburg, Va.-based company posted losses of $10.8 million, or 25¢ per share, on sales of $73.6 million for the three months ended June 30, seeing losses grow 19.2% on sales growth of 12% compared with the same period last year.
Losses per share were just behind the 19¢ consensus on The Street, where analysts were looking for sales of $70.9 million, which the company topped.
“Our second quarter total revenue growth of approximately 12% year-over-year reflects strong trends in both the U.S. and international markets, and we have increased our fiscal year 2018 revenue guidance expectations accordingly. Summer deformity season is off to a strong start and, similar to Q1, our revenue growth in the U.S. this quarter was fueled in part by our multiple new product launches and the expansion of our distribution network in 2017 and 2018. We delivered 7.5% growth in the United States over the first six months of 2018, driven by solid execution against our strategic goal of increasing market share by introducing new and innovative spinal implant solutions like our first-of-its-kind Mojave PL 3D expandable interbody system featuring Lamellar 3D titanium technology and our Yukon OCT spinal system that can be used with the Palo Alto cervical static corpectomy cage system. Building on the early commercial traction from recent new product introductions, we announced two important U.S. regulatory clearances this quarter, our BACS patient-specific devices and our Ozark cervical plate systems, as we continue to enhance the foundation of growth in the future. To that end, we remain confident in our ability to drive above-market growth in the U.S., fueled by our continued focus on leading the spine surgery market by introducing new and innovative spinal implant solutions to help surgeons care for patients around the world who suffer from debilitating spinal pathologies,” prez & CEO Eric Major said in a press release.
K2M increased its sales outlook for the year, expecting to post revenues of between $288 million and $291 million, up from previous guidance of between $283 million and $287 million. Total net losses for the year are expected to be between $38.2 million and $34.2 million, with adjusted EBITDA of between $4 million and $8 million.
Shares in K2M closed up 4.6% today at $21.30.
In June, K2M said that it was looking to raise $65 million through an offering of convertible senior notes due 2025.
