Alachua, Fla.-based RTI posted profits of $2.1 million, or 3¢ per share, on sales of $71.2 million for the three months ended Dec. 31, 2018, compared with losses of -$8.6 million during the same period in 2017 year and amounting to sales growth of 0.6%. Analysts on Wall Street were looking for earnings per share of 1¢.
Full-year losses were -$3.4 million, or -5¢ per share, on sales of $280.9 million, marking a swing to red from profits of $2.5 million for 2017 and a top-line gain of 0.5%.
“Our fourth-quarter and full-year 2018 results demonstrate solid financial performance resulting from consistent progress across our key strategic initiatives,” president & CEO Camille Farhat said in prepared remarks. “We believe the ongoing successful efforts to reduce complexity and drive operational excellence, including significant cost reduction efforts in tissue manufacturing, are providing the foundation to accelerate RTI’s growth. In 2018, we returned OEM to growth and continued to transition customers to long-term partners signaling the strength of our relationships and importance of our products to our partners. Further, the definitive agreement to acquire Paradigm Spine, announced in November 2018 and anticipated to close in early March, will contribute to the formidable platform of differentiated spine implants we established in 2018.
“We believe our accomplishments in 2018 have provided an exceptionally strong foundation to support our performance in 2019 and beyond. Our investment in rebuilding the spine pipeline has revitalized our new product development efforts, which we anticipate will serve as a catalyst for organic growth starting in 2020. We will work to continue to reduce the complexity of our business and extend operational excellence throughout the company to accelerate the growth trajectory of RTI. We expect our performance will be driven by the successful integration of Paradigm, disciplined R&D efforts and the continued exploration of acquisition opportunities. We are excited for the year ahead,” Farhat added.
RTI said it expects to post adjusted EBITDA of $36 million to $40 million on sales of $325 million to $335 million for fiscal 2019.
RTIX shares were up 4.8% to $5.22 apiece today in late-morning activity.