LDR Holding Corporation02.18.16
Austin, Texas-based spine technology company LDR Holding Corporation has released its fourth quarter and fiscal year 2015 results. The fiscal year ended Dec. 31, 2015.
Revenue from exclusive cervical products grew 26.0 percent, or 28.6 percent on a constant currency basis, in the fourth quarter of 2015 to $32.1 million, compared to the fourth quarter of 2014. For fiscal year 2015, revenue from exclusive cervical products grew 31.9 percent, or 35.9 percent on a constant currency basis, to $114.8 million, compared to fiscal year 2014.
The performance during the fourth quarter and full year was primarily driven by the continued strong growth of Mobi-C and successful cross-selling of ROI-C, supporting the effectiveness of the company's strategy to gain market share in the cervical spine segment.
President and CEO Christophe Lavigne commented, “We finished 2015 with a record quarter in revenue led by strong growth in our exclusive cervical technology products, and a record quarter for Mobi-C. As our results demonstrate, we are increasingly being recognized as a leader in bringing global cervical solutions to surgeons with both non-fusion and fusion technologies. With our exclusive lumbar products, we continued our progress on the clinical evaluation and development of our Minimal Implant Volume (MIVo) products during the fourth quarter, which we believe will support our long-term strategy to penetrate the lumbar market. We are pleased that our first two peer-reviewed papers with five-year patient outcome data for our unique Mobi-C technology were recently published. The first, in the Journal of Neurosurgery: Spine, shows a lower rate of subsequent surgeries for Mobi-C versus fusion and the second, in Neurosurgery, demonstrates the cost effectiveness of two-level cervical disc replacement. We are encouraged by these recent developments as both publications add to the growing weight of clinical evidence supporting cervical disc replacement and Mobi-C, in particular. We believe the increasing availability of long-term publications, along with the updated NASS coverage recommendation in support of both one and two-level cervical disc replacement, will drive continued penetration of cervical disc replacement into the estimated $1.2 billion U.S. cervical fusion market.”
International revenue increased 1 percent during the fourth quarter of 2015 to $7.6 million, or 19.4 percent on a constant currency basis compared to the fourth quarter of 2014. For fiscal year 2015, international revenue decreased 3.3 percent to $30.6 million, or increased 18.5 percent on a constant currency basis compared to fiscal year 2014.
Gross profit for the fourth quarter of 2015 was $36.6 million and gross margin was 82.3 percent, compared to gross profit of $32.7 million and gross margin of 82.7 percent for the fourth quarter of 2014. Gross profit for the year ended December 31, 2015 was $137.2 million and gross margin was 83.4 percent, compared to a gross profit of $116.8 million and a gross margin of 82.7 percent for the year ended December 31, 2014.
Net loss for the fourth quarter of 2015 was $4.8 million, or $0.16 per share, compared to a net loss of $3.1 million, or $0.12 per share, for the same quarter a year ago. For the year ended December 31, 2015, net loss totaled $15.9 million, or $0.57 per diluted share, compared to a net loss of $11.0 million, or $0.43 per diluted share, for fiscal year 2014.
Adjusted EBITDA for the fourth quarter of 2015 was $(3.2) million compared to adjusted EBITDA of $(0.7) million for the fourth quarter of 2014. For the year ended December 31, 2015, adjusted EBITDA was $(6.9) million, compared to an adjusted EBITDA of $(0.8) million for fiscal year 2014.
Based on LDR’s results for fiscal 2015, the company expects revenue for the full year 2016 to be in the range of $187.5 million to $189.5 million, or 14 percent to 15.2 percent growth on a reported basis. Changes in foreign exchange rates are expected to negatively impact 2016 reported revenue by approximately 1.0 percent. This implies revenues, before any foreign exchange impact, in the range of $189.1 million to $191.1 million for the full year 2016 or 15 percent to 16.2 percent growth constant currency.
Revenue from exclusive cervical products grew 26.0 percent, or 28.6 percent on a constant currency basis, in the fourth quarter of 2015 to $32.1 million, compared to the fourth quarter of 2014. For fiscal year 2015, revenue from exclusive cervical products grew 31.9 percent, or 35.9 percent on a constant currency basis, to $114.8 million, compared to fiscal year 2014.
The performance during the fourth quarter and full year was primarily driven by the continued strong growth of Mobi-C and successful cross-selling of ROI-C, supporting the effectiveness of the company's strategy to gain market share in the cervical spine segment.
President and CEO Christophe Lavigne commented, “We finished 2015 with a record quarter in revenue led by strong growth in our exclusive cervical technology products, and a record quarter for Mobi-C. As our results demonstrate, we are increasingly being recognized as a leader in bringing global cervical solutions to surgeons with both non-fusion and fusion technologies. With our exclusive lumbar products, we continued our progress on the clinical evaluation and development of our Minimal Implant Volume (MIVo) products during the fourth quarter, which we believe will support our long-term strategy to penetrate the lumbar market. We are pleased that our first two peer-reviewed papers with five-year patient outcome data for our unique Mobi-C technology were recently published. The first, in the Journal of Neurosurgery: Spine, shows a lower rate of subsequent surgeries for Mobi-C versus fusion and the second, in Neurosurgery, demonstrates the cost effectiveness of two-level cervical disc replacement. We are encouraged by these recent developments as both publications add to the growing weight of clinical evidence supporting cervical disc replacement and Mobi-C, in particular. We believe the increasing availability of long-term publications, along with the updated NASS coverage recommendation in support of both one and two-level cervical disc replacement, will drive continued penetration of cervical disc replacement into the estimated $1.2 billion U.S. cervical fusion market.”
International revenue increased 1 percent during the fourth quarter of 2015 to $7.6 million, or 19.4 percent on a constant currency basis compared to the fourth quarter of 2014. For fiscal year 2015, international revenue decreased 3.3 percent to $30.6 million, or increased 18.5 percent on a constant currency basis compared to fiscal year 2014.
Gross profit for the fourth quarter of 2015 was $36.6 million and gross margin was 82.3 percent, compared to gross profit of $32.7 million and gross margin of 82.7 percent for the fourth quarter of 2014. Gross profit for the year ended December 31, 2015 was $137.2 million and gross margin was 83.4 percent, compared to a gross profit of $116.8 million and a gross margin of 82.7 percent for the year ended December 31, 2014.
Net loss for the fourth quarter of 2015 was $4.8 million, or $0.16 per share, compared to a net loss of $3.1 million, or $0.12 per share, for the same quarter a year ago. For the year ended December 31, 2015, net loss totaled $15.9 million, or $0.57 per diluted share, compared to a net loss of $11.0 million, or $0.43 per diluted share, for fiscal year 2014.
Adjusted EBITDA for the fourth quarter of 2015 was $(3.2) million compared to adjusted EBITDA of $(0.7) million for the fourth quarter of 2014. For the year ended December 31, 2015, adjusted EBITDA was $(6.9) million, compared to an adjusted EBITDA of $(0.8) million for fiscal year 2014.
Based on LDR’s results for fiscal 2015, the company expects revenue for the full year 2016 to be in the range of $187.5 million to $189.5 million, or 14 percent to 15.2 percent growth on a reported basis. Changes in foreign exchange rates are expected to negatively impact 2016 reported revenue by approximately 1.0 percent. This implies revenues, before any foreign exchange impact, in the range of $189.1 million to $191.1 million for the full year 2016 or 15 percent to 16.2 percent growth constant currency.