K2M’s Revenue Jumps 18 Percent in 2014

K2M Group Holdings Inc. experienced a banner financial year in 2014.

The spinal device manufacturer reported a 16 percent spike in fourth-quarter revenue to $49.3 million, with domestic (U.S.) proceeds surging 23 percent-25 percent to $35.7 million, according to the company’s latest earnings report.

During the three months ended Dec. 31, K2M’s spinal proceeds swelled 20 percent, its minimally invasive technology revenue grew 24 percent and degenerative disease treatment product sales increased 29 percent.

International Q4 revenue climbed $300,000 to $13.6 million, and full-year revenue for 2014 shot up 18 percent to $186.7 million, the company reported. Executives expect full-year 2014 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to remain virtually unchanged from its previously provided guidance.

“Our preliminary financial results for the fourth quarter of 2014 reflect growth of approximately 16 percent year-over-year, fueled primarily by strong growth in each of our primary businesses in the United States,” said President/CEO Eric Major. “Specifically, sales increased approximately 20 percent year-over-year in both our Complex Spine and MIS businesses, and we saw degenerative sales increase by almost 30 percent this quarter. These results represent a continuation of our strong performance in fiscal year 2014—our first as a public company—a year in which we executed on our goal of increasing market penetration and on expansion of our innovative products. We remain focused on increasing our share of the $2.6 billion global complex spine and minimally invasive surgery markets and on driving shareholder value creation going forward.”