NASDAQ$KIDS

OrthoPediatrics Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

OrthoPediatrics reported a strong third quarter with record revenue and strategic acquisitions.

OrthoPediatrics Corp. reported a 39% increase in revenue for the third quarter of 2022, reaching $35.0 million compared to $25.1 million in the same period last year. This growth includes contributions from recent acquisitions MD Ortho and Pega Medical. The company's net income for the quarter was $18.5 million, a significant improvement from the net loss of $2.2 million in the third quarter of 2021.

  • Total revenue reached $35.0 million, a 39% increase year-over-year.
  • Worldwide Trauma & Deformity revenue grew by 42%, Scoliosis revenue increased by 37%, and Sports Medicine/Other revenue grew by 8%.
  • The company completed the acquisition of Pega Medical and a follow-on public offering, raising $144 million.
  • Net income for the third quarter of 2022 was $18.5 million, compared to a net loss of $2.2 million for the same period last year.

Headline financials

Total Revenue

$35M

Previous: $25.1M+39.4%
EPS (adj)

-$0.05

Previous: -$0.15+66.7%
Adjusted EBITDA

$1.9M

Previous: $519K+266.1%
Gross Margin

74.1%

Previous: 74.0%+0.1%
Capital Expenditures

-$10.6M

Previous: -$6.47M-63.2%
Free Cash Flow

$7.99M

Previous: -$8.67M+192.2%
Net Income

$18.5M

Previous: -$2.2M+943.8%
Operating Income

-$6.96M

Previous: -$3.64M-91.0%
Gross Profit

$25.9M

Previous: $18.6M+39.5%
Cash & Equivalents

$35.4M

Previous: $6.33M+459.3%
Total Assets

$430M

Previous: $304M+41.7%
Stock-Based Comp

$1.68M

Previous: $1.44M+16.9%

Revenue & EPS history

OrthoPediatrics · Revenue · Quarterly

$35M

Q3 2022+39.4%vs Q3 2021
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

OrthoPediatrics · $35M total across 3 segments · Q3 2022

  • Trauma and Deformity
    $23.9M+42.1%
  • Scoliosis
    $9.98M+37.3%
  • Sports Medicine/Other
    $1.08M+8.3%

Forward guidance

For full year 2022, the Company now expects its full year revenue to be in the range of $124 million to $125 million, updated from its previous guidance range of $127 million to $130 million, representing growth of 26% to 27% over 2021 revenue.

Tailwinds

  • Full year revenue expected to be in the range of $124 million to $125 million.
  • Represents growth of 26% to 27% over 2021 revenue.
  • Full year revenue, excluding recent acquisitions, expected to be in the range of $113 million to $114 million.
  • Represents growth of 15% to 16% over 2021 revenue.
  • Annual set deployment to be in a range of $20 million to $24 million.

Headwinds

  • Previous revenue guidance range was $127 million to $130 million.
  • Assumes roughly $11 million of combined revenue contribution from MD Ortho and Pega Medical.
  • Pediatric orthopedic market faced additional headwinds beyond continued staffing shortages.
  • RSV infections acutely impacted case volumes in certain regions
  • No other negative guidance was provided

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-0.6%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-0.4%

Avg return

30 days after

50%

17 / 34 earnings

Positive

+13.1%

Q2 2022

Best reaction

-13.0%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.8%+13.7%+14.0%
Q4 2025+8.3%+3.9%-12.8%
Q3 2025-2.6%-3.0%+9.3%
Q1 2025+4.0%+4.6%-4.5%
Q4 2024+11.9%+7.0%-0.8%
Q3 2024-7.8%-16.2%-22.3%
Q2 2024-7.8%-9.0%+3.8%
Q1 2024+5.7%-5.3%-1.9%
Q4 2023+5.4%+1.9%+0.8%
Q3 2023+4.2%-5.1%+8.9%
Q2 2023-4.6%-4.9%-7.2%
Q1 2023-7.5%-8.0%-14.4%
Q4 2022+0.5%+1.7%-0.8%
Q3 2022-13.0%-12.4%+0.8%
Q2 2022+13.1%+19.2%-0.8%
Q1 2022-10.2%-17.7%-8.1%
Q4 2021-5.8%-6.3%-2.0%
Q3 2021+2.0%+0.4%-19.4%
Q2 2021+6.9%+4.5%+9.2%
Q1 2021+10.1%+4.4%+4.4%
Q4 2020-7.1%-8.6%+2.3%
Q3 2020-6.5%+6.5%-2.1%
Q2 2020+4.7%+9.7%-0.6%
Q1 2020+2.8%+4.8%+10.0%
Q4 2019+1.1%-4.5%-19.5%
Q3 2019+5.7%+8.9%+10.6%
Q2 2019-0.2%-1.0%+10.9%
Q1 2019-9.5%-10.3%-8.3%
Q4 2018-4.3%-2.0%-6.2%
Q3 2018-12.5%-16.0%-11.4%
Q2 2018+2.7%+2.7%+23.7%
Q1 2018-1.1%+1.9%+32.0%
Q4 2017-1.9%+3.4%-2.9%
Q3 2017-11.3%-2.0%-8.5%
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q1 2015

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