Tornier Sees Top-Line Growth in Q2

Tornier N.V. saw a bump in revenue for the second quarter (ended June 29).

Revenue for the second quarter of 2014 was $86.9 million compared to second quarter 2013 revenue of $78.1 million, an increase of 11.2 percent as reported and 9.5 percent in constant currency.

Second quarter 2014 revenue of Tornier’s extremities product categories totaled $71.9 million compared to $65.6 million in the same quarter a year ago, an increase of 9.7 percent as reported and 8.8 percent in constant currency. Second quarter revenue of the company’s large joints and other product lines was $14.9 million, an increase of 13.2 percent in constant currency over the same quarter in 2013.

Net loss for the quarter was $7.95 million, an impovement compared to the $8.38 million loss for the same period last year.

“I am pleased with the progress we have continued to make in Phase 2 of our U.S. sales force transition and training,” said Dave Mowry, president and CEO of Tornier. “This progress, combined with ongoing adoption of our market leading Aequalis Ascend Flex shoulder system and solid international performance, resulted in strong financial results in the second quarter, including double-digit upper extremities growth.”

The company’s second quarter 2014 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $6.1 million, or 7 percent of reported revenue, compared to $7.3 million, or 9.4 percent of revenue, in the same quarter of the prior year.

“Our second-quarter EBITDA reflects the ongoing U.S. sales force transition, geographic expansion and new product development activity,” Mowry said. “We believe these investments will enhance our long-term growth potential. While some risk remains in the transition process, our results through the first half of the year give us more confidence in the execution of Phase 2 and we have increased our full-year financial guidance accordingly.”

Revenue from the upper extremity joints and trauma category was $53.8 million, an increase of 11.4 percent in constant currency over the same quarter in 2013. This growth was led by the Aequalis Ascend family of shoulder joint replacement products, which continued to gain global surgeon acceptance, Tornier officials reported.

Revenue from Tornier’s lower extremity joints and trauma category in the second quarter of 2014 was $14.5 million, an increase of 3.7 percent in constant currency over the prior year quarter. Solid sales growth of the Company’s Salto Talaris ankle joint replacement system was offset by lower sales of foot and ankle fixation products, which were impacted by the company’s U.S. sales transition activities.

Revenue from the sports medicine and biologics product category was $3.7 million in the second quarter of 2014, a decrease of 5.9 percent in constant currency over the same quarter in 2013, reflecting a decline in the company’s soft-tissue anchor products.

Constant currency revenue growth for large joints and other products was 13.2 percent and was led by the company’s hip products that benefitted from the release of new minimally invasive instrumentation in Europe late in 2013, officials reported.

Tornier’s international revenue increased 16.7 percent as reported and 12.8 percent in constant currency as compared to the second quarter of 2013 and represented 43.8 percent of reported global revenue. Revenue in the United States increased by 7.2 percent and represented 56.2 percent of reported global revenue.

Based in the Netherlands, Tornier is focused on devices for musculoskeletal injuries and disorders of the shoulder, elbow, wrist, hand, ankle and foot. The company’s 95 product lines includes joint replacement, trauma, sports medicine, and biologic products to treat the extremities, as well as joint replacement products for the hip and knee in certain international markets.