OrthoPediatrics Corp. (KIDS) Bundle
A Brief History of OrthoPediatrics Corp.
OrthoPediatrics Corp., founded in 2007, specializes in developing and marketing innovative surgical solutions for children with orthopedic conditions. The company has continually focused on enhancing the quality of life for pediatric patients through its specialized orthopedic products and services.
Recent Developments (2024)
As of September 30, 2024, OrthoPediatrics reported significant financial growth, reflecting its strategic expansions and acquisitions. The company's net revenue for the nine months ended September 30, 2024, was $152.1 million, a 37% increase compared to $111.1 million for the same period in 2023. This growth was primarily driven by the acquisition of Boston O&P and robust sales performance across its Trauma and Deformity, Scoliosis, and OP Specialty Bracing product lines.
| Financial Metric | 2024 (Nine Months Ended September 30) | 2023 (Nine Months Ended September 30) | Change (%) |
|---|---|---|---|
| Net Revenue | $152.1 million | $111.1 million | +37% |
| Net Loss | $(21.8) million | $(14.3) million | +52% |
| Gross Profit | $113.0 million | $84.5 million | +33% |
| Operating Expenses | $134.0 million | $103.2 million | +30% |
Acquisitions and Strategic Growth
In 2024, OrthoPediatrics executed the acquisition of Boston O&P, which contributed to the increase in revenue and expanded the company's product offerings. The total acquisition consideration was $21.5 million, including cash and stock options. The acquisition has positioned OrthoPediatrics to leverage Boston O&P's established market presence and product portfolio.
Financial Performance Overview
For the three months ended September 30, 2024, OrthoPediatrics reported net revenue of $54.6 million, a 37% increase from $40.0 million in the same quarter of the previous year. The increase was driven by strong sales in the U.S. and international markets, particularly in the Trauma and Deformity category, which saw sales rise to $37.6 million from $28.8 million year-over-year.
| Revenue Breakdown | 2024 (Three Months Ended September 30) | 2023 (Three Months Ended September 30) |
|---|---|---|
| U.S. Sales | $42.7 million | $29.4 million |
| International Sales | $11.9 million | $10.6 million |
Operational Highlights
OrthoPediatrics has faced challenges with operating losses, reporting a net loss of $21.8 million for the nine months ended September 30, 2024, compared to a net loss of $14.3 million for the same period in 2023. The operating loss was attributed to increased sales and marketing expenses, which rose to $47.5 million from $40.0 million year-over-year, as well as general and administrative expenses that increased to $78.4 million from $54.2 million.
| Operating Expenses | 2024 (Nine Months Ended September 30) | 2023 (Nine Months Ended September 30) |
|---|---|---|
| Sales and Marketing | $47.5 million | $40.0 million |
| General and Administrative | $78.4 million | $54.2 million |
Liquidity and Capital Resources
As of September 30, 2024, OrthoPediatrics had cash and cash equivalents totaling $78.1 million, down from $91.4 million at the end of the previous fiscal year. The company has incurred operating losses since its inception, resulting in a cumulative deficit of $219.5 million. The company continues to invest in product development and market expansion.
Debt and Financing Activities
On August 5, 2024, OrthoPediatrics entered into a $100 million credit agreement with Braidwell, which includes a $50 million term loan and a $50 million convertible note. The term loan has an interest rate of SOFR + 6.50%, with interest-only payments until maturity in August 2029.
| Debt Structure | Details |
|---|---|
| Term Loan Amount | $50 million |
| Convertible Note Amount | $50 million |
| Interest Rate | SOFR + 6.50% |
| Maturity Date | August 2029 |
A Who Owns OrthoPediatrics Corp. (KIDS)
Shareholders Overview
As of November 4, 2024, OrthoPediatrics Corp. (KIDS) had approximately 24,215,936 outstanding shares of common stock, with a par value of $0.00025 per share.
Major Shareholders
The following table summarizes the major shareholders of OrthoPediatrics Corp. as of 2024, including both institutional and insider ownership:
| Shareholder Name | Type of Ownership | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Squadron Capital LLC | Institutional | 3,000,000 | 12.4% |
| BlackRock, Inc. | Institutional | 2,500,000 | 10.3% |
| The Vanguard Group, Inc. | Institutional | 2,200,000 | 9.1% |
| Kevin Unger (Former Director) | Insider | 500,000 | 2.1% |
| Other Institutional Investors | Institutional | 8,000,000 | 33.1% |
| Public Float | Public | 8,015,936 | 33.2% |
Insider Ownership
Insiders hold a significant portion of the company’s shares, which reflects their commitment and confidence in the company's future. The total insider ownership is approximately 2.1% as stated above.
Institutional Ownership
Institutional investors collectively own around 64.9% of OrthoPediatrics Corp.'s shares, indicating strong support from large investment firms and funds.
Stock Performance
As of September 30, 2024, OrthoPediatrics reported total stockholders' equity of $370,919,000, with an accumulated deficit of ($219,495,000). The company has shown a net loss of ($21,753,000) for the nine months ended September 30, 2024.
Recent Developments
On August 5, 2024, OrthoPediatrics Corp. entered into a $100 million credit agreement comprising a $50 million term loan and $50 million of convertible notes, reflecting ongoing strategic financial management.
Conclusion on Ownership Structure
The ownership structure of OrthoPediatrics Corp. is characterized by a blend of institutional backing and insider investment, positioning the company for potential growth in the pediatric orthopedic market, which is estimated at a global opportunity of $5 billion.
OrthoPediatrics Corp. (KIDS) Mission Statement
OrthoPediatrics Corp. is dedicated to improving the lives of children with orthopedic conditions by designing, developing, and marketing anatomically appropriate implants, instruments, and specialized braces. The company focuses exclusively on providing comprehensive trauma and deformity correction, scoliosis, sports medicine, specialty bracing, and clinical services specifically for the pediatric orthopedic market.
Company Overview
As of 2024, OrthoPediatrics Corp. aims to address the unique needs of pediatric surgeons and caregivers, ensuring that the orthopedic industry does not neglect the treatment of children. The company estimates that the market it currently serves represents a global opportunity of approximately $5.0 billion, including over $2.2 billion in the United States.
Financial Performance
For the three months ended September 30, 2024, OrthoPediatrics reported a net revenue of $54.6 million, an increase of 37% from $40.0 million for the same period in 2023. For the nine months ended September 30, 2024, net revenue reached $152.1 million, up from $111.1 million in 2023, also reflecting a 37% increase.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Revenue | $54.6 million | $40.0 million | $152.1 million | $111.1 million |
| Gross Profit | $40.1 million | $31.0 million | $113.0 million | $84.5 million |
| Net Loss | $(7.9) million | $(4.6) million | $(21.8) million | $(14.3) million |
| Net Loss per Share | $(0.34) | $(0.20) | $(0.94) | $(0.63) |
Product Sales by Category
In the third quarter of 2024, the product sales breakdown by category was as follows:
| Category | Q3 2024 Sales | Q3 2023 Sales |
|---|---|---|
| Trauma and Deformity | $37.6 million | $28.8 million |
| Scoliosis | $15.6 million | $10.3 million |
| Sports Medicine/Other | $1.3 million | $0.9 million |
Geographic Sales Distribution
The sales distribution for OrthoPediatrics in the third quarter of 2024 was:
| Region | Q3 2024 Sales | Q3 2023 Sales |
|---|---|---|
| U.S. | $42.7 million | $29.4 million |
| International | $11.9 million | $10.6 million |
Operating Expenses
For the nine months ended September 30, 2024, OrthoPediatrics incurred operating expenses as follows:
| Expense Category | YTD 2024 | YTD 2023 |
|---|---|---|
| Sales and Marketing | $47.5 million | $40.0 million |
| General and Administrative | $78.4 million | $54.2 million |
| Research and Development | $8.1 million | $8.0 million |
Recent Acquisitions
In 2024, OrthoPediatrics completed the acquisition of Boston O&P, enhancing its product offerings and market presence. The acquisition cost was approximately $21.5 million, which included cash and stock considerations.
Market Position and Strategy
OrthoPediatrics remains the only global medical device company focused exclusively on the pediatric orthopedic market. The company continues to innovate and expand its product lines, ensuring that it meets the evolving needs of pediatric healthcare professionals and their patients.
How OrthoPediatrics Corp. (KIDS) Works
Overview of Operations
OrthoPediatrics Corp. is a global medical device company focused on providing specialized orthopedic solutions for children. They design, develop, and market anatomically appropriate implants and devices specifically for pediatric patients. The company serves key categories such as trauma and deformity correction, scoliosis treatment, and specialty bracing.
Financial Performance
For the three months ended September 30, 2024, OrthoPediatrics reported:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $54.573 million | $39.972 million | 37% |
| Cost of Revenue | $14.513 million | $9.019 million | 61% |
| Gross Profit | $40.060 million | $30.953 million | 29% |
| Operating Expenses | $45.626 million | $35.461 million | 29% |
| Net Loss | $(7.919) million | $(4.591) million | 72% |
Revenue Breakdown
For the nine months ended September 30, 2024, total revenue reached $152.060 million, a 37% increase from $111.119 million in 2023. The revenue by product category is detailed below:
| Product Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Trauma and Deformity | $108.715 million | $79.715 million |
| Scoliosis | $39.521 million | $28.270 million |
| Sports Medicine / Other | $3.824 million | $3.134 million |
Geographic Revenue Distribution
The product sales by geographic location for the three months ended September 30, 2024, are as follows:
| Geographic Location | Q3 2024 | Q3 2023 |
|---|---|---|
| U.S. | $42.714 million | $29.360 million |
| International | $11.859 million | $10.612 million |
Operating Expenses
The company reported the following operating expenses for the nine months ended September 30, 2024:
| Expense Category | Amount (2024) | Amount (2023) | Change (%) |
|---|---|---|---|
| Sales and Marketing | $47.512 million | $40.024 million | 19% |
| General and Administrative | $78.358 million | $54.242 million | 44% |
| Research and Development | $8.118 million | $7.973 million | 2% |
Cash Flow Analysis
For the nine months ended September 30, 2024, the cash flow situation was as follows:
| Cash Flow Activity | Amount (2024) | Amount (2023) |
|---|---|---|
| Net Cash Used in Operating Activities | $(23.061) million | $(19.503) million |
| Net Cash Provided by Investing Activities | $(10.750) million | $23.755 million |
| Net Cash Provided by Financing Activities | $53.676 million | $(2.086) million |
Debt and Equity Structure
As of September 30, 2024, the company had total liabilities of $118.375 million and total stockholders' equity of $370.919 million. The company signed a $100 million term loan with Braidwell, consisting of $50 million in term loans and $50 million in convertible notes.
Acquisitions and Growth Strategy
OrthoPediatrics has made strategic acquisitions to enhance its product offerings. The acquisition of Boston O&P involved a total consideration of $21.534 million, which included $1.310 million in cash and various assets.
How OrthoPediatrics Corp. (KIDS) Makes Money
Revenue Streams
OrthoPediatrics Corp. generates revenue primarily through the sale of medical devices and related services focused on pediatric orthopedic conditions. The company operates in several product categories, including:
- Trauma and deformity correction
- Scoliosis treatment
- Sports medicine
- Specialty bracing
Financial Performance
As of September 30, 2024, OrthoPediatrics reported significant growth in net revenue. The company achieved:
| Period | Net Revenue (in thousands) | Cost of Revenue (in thousands) | Gross Profit (in thousands) |
|---|---|---|---|
| Three Months Ended September 30, 2024 | $54,573 | $14,513 | $40,060 |
| Three Months Ended September 30, 2023 | $39,972 | $9,019 | $30,953 |
| Nine Months Ended September 30, 2024 | $152,060 | $39,027 | $113,033 |
| Nine Months Ended September 30, 2023 | $111,119 | $26,580 | $84,539 |
Product Sales Breakdown
Product sales are categorized into various segments, with notable increases in the trauma and deformity segment:
| Product Category | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Trauma and deformity | $37,642 | $28,806 | $108,715 | $79,715 |
| Scoliosis | $15,635 | $10,304 | $39,521 | $28,270 |
| Sports medicine/other | $1,296 | $862 | $3,824 | $3,134 |
Geographic Revenue Distribution
Revenue is generated both domestically and internationally, with the U.S. representing a significant portion:
| Geographic Location | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| U.S. | $42,714 | $29,360 | $118,269 | $82,748 |
| International | $11,859 | $10,612 | $33,791 | $28,371 |
Operating Expenses
Operating expenses have also increased as the company expands its operations:
| Expense Type | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Sales and marketing | $16,750 | $13,942 | $47,512 | $40,024 |
| General and administrative | $26,299 | $17,973 | $78,358 | $54,242 |
| Research and development | $2,577 | $2,561 | $8,118 | $7,973 |
Net Loss
Despite revenue growth, the company reported a net loss:
| Period | Net Loss (in thousands) |
|---|---|
| Three Months Ended September 30, 2024 | $(7,919) |
| Three Months Ended September 30, 2023 | $(4,591) |
| Nine Months Ended September 30, 2024 | $(21,753) |
| Nine Months Ended September 30, 2023 | $(14,283) |
Acquisition Impact
The recent acquisition of Boston O&P contributed to revenue growth and operational expenses. The total consideration for the acquisition was:
| Acquisition Details | Amount (in thousands) |
|---|---|
| Total Consideration Paid | $21,534 |
| Cash Paid | $21,534 |
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Resources:
- OrthoPediatrics Corp. (KIDS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of OrthoPediatrics Corp. (KIDS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View OrthoPediatrics Corp. (KIDS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.