Orthopediatrics Corp. Files Q2 2024 10-Q

TL;DR

ORTHO Q2 10-Q FILED. FINANCIALS OUT.

AI Summary

Orthopediatrics Corp. filed its 10-Q for the period ending June 30, 2024. The company, based in Warsaw, Indiana, operates in the surgical and medical instruments sector. Key financial details and operational information for the second quarter of 2024 are presented in this filing.

Why It Matters

This filing provides investors and analysts with the latest financial performance and operational updates for Orthopediatrics Corp., crucial for understanding the company's current standing and future prospects.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks indicated in the provided header information.

Key Numbers

• 2024 Q2 — Reporting Period (Financial results for the second quarter of 2024.)
• 1231 — Fiscal Year End (Indicates the end of the company's fiscal year.)

Key Players & Entities

• ORTHOPEDIATRICS CORP (company) — Filer
• 2850 FRONTIER DRIVE, WARSAW, IN 46582 (location) — Business and Mail Address
• 20240630 (date) — Period of Report
• 20240806 (date) — Filing Date

FAQ

Key Financial Figures

• $0.00025 — ange on which registered Common Stock, $0.00025 par value per share KIDS Nasdaq Global

Filing Documents

• kids-20240630.htm (10-Q) — 971KB
• exhibit311-ceocertificatio.htm (EX-31.1) — 9KB
• exhibit312-cfocertificatio.htm (EX-31.2) — 9KB
• exhibit321-ceocertificatio.htm (EX-32.1) — 4KB
• exhibit322-cfocertificatio.htm (EX-32.2) — 5KB
• 0001425450-24-000079.txt ( ) — 6209KB
• kids-20240630.xsd (EX-101.SCH) — 46KB
• kids-20240630_cal.xml (EX-101.CAL) — 67KB
• kids-20240630_def.xml (EX-101.DEF) — 292KB
• kids-20240630_lab.xml (EX-101.LAB) — 609KB
• kids-20240630_pre.xml (EX-101.PRE) — 436KB
• kids-20240630_htm.xml (XML) — 696KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1 Financial Statements (unaudited) 4 Condensed Consolidated Balance Sheets - June 3 0 , 2024 and December 31, 2023 4 Condensed Consolidated Statements of Operations - Three and Six Months Ended June 3 0 , 2024 and 2023 5 Condensed Consolidated Statements of Comprehensive Loss - Three and Six Months Ended June 3 0 , 2024 and 2023 6 Condensed Consolidated Statements of Stockholders' Equity - Three and Six Months Ended June 3 0 , 2024 and 2023 7 Condensed Consolidated Statements of Cash Flows - Six Months Ended June 3 0 , 2024 and 2023 9 Notes to Condensed Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Quantitative and Qualitative Disclosures About Market Risk

Item 3 Quantitative and Qualitative Disclosures About Market Risk 34

Controls and Procedures

Item 4 Controls and Procedures 34

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1 Legal Proceedings 36

Risk Factors

Item 1A Risk Factors 36

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 36

Defaults Upon Senior Securities

Item 3 Defaults Upon Senior Securities 36

Mine Safety Disclosures

Item 4 Mine Safety Disclosures 37

Other Information

Item 5 Other Information 37

Exhibits

Item 6 Exhibits 37 Exhibit Index 38

Signatures

Signatures 40 NOTE REGARDING FORWARD-LOOKING STATEMENTS All statements, other than statements of historical facts, contained in this quarterly report, including statements regarding our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business, operations and financial performance and condition, are forward-looking statements. You can often identify forward-looking statements by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "target," "ongoing," "plan," "potential," "predict," "project," "should," "will" or "would," or the negative of these terms or other terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors, such as the impact of widespread health emergencies, such as COVID-19 and respiratory syncytial virus, that may cause our results, activity levels, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements. Forward-looking statements may include, among other things, statements relating to: our ability to achieve or sustain profitability in the future; our ability to raise additional capital to fund our existing commercial operations, develop and commercialize new products and expand our operations; our ability to commercialize our products in development and to develop and commercialize additional products through our research and development efforts, and if we fail to do so we may be unable to compete effectively; our ability to generate sufficient revenue from the commercialization of our products to achieve and sustain profitability; our ability to comply with extensive government regulation and oversight both in the United States and abroad; our ability to maintain and expand our network of third-party independent sales agencies and distributors to market and distribute our products; and our a

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS ORTHOPEDIATRICS CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In Thousands, Except Share Data) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 28,927 $ 31,055 Restricted cash 1,963 1,972 Short-term investments — 49,251 Accounts receivable - trade, net of allowances of $ 1,026 and $ 1,373 , respectively 42,028 34,617 Inventories, net 116,366 105,851 Prepaid expenses and other current assets 4,499 3,750 Total current assets 193,783 226,496 Property and equipment, net 53,482 41,048 Other assets: Amortizable intangible assets, net 67,848 69,275 Goodwill 90,512 83,699 Other intangible assets 18,669 15,287 Other non-current assets 6,467 2,940 Total other assets 183,496 171,201 Total assets $ 430,761 $ 438,745 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable - trade $ 17,002 $ 12,649 Accrued compensation and benefits 12,616 11,325 Current portion of long-term debt with affiliate 156 152 Current portion of acquisition installment payable 1,304 10,149 Other current liabilities 8,491 7,391 Total current liabilities 39,569 41,666 Long-term liabilities: Long-term debt, net of current portion 9,250 9,297 Long-term debt with affiliate, net of current portion 532 611 Acquisition installment payable, net of current portion 2,371 3,551 Deferred income taxes 4,739 5,483 Other long-term liabilities 3,007 1,112 Total long-term liabilities 19,899 20,054 Total liabilities 59,468 61,720 Stockholders' equity: Common stock, $ 0.00025 par value; 50,000,000 shares authorized; 24,216,738 shares and 23,378,408 shares issued as of June 30, 2024 and December 31, 2023, respectively 6 6 Additional paid-in capital 593,087 580,287 Accumulated deficit ( 211,576 ) ( 197,742 ) Accumulated other comprehensive loss ( 10,224 ) ( 5,526 ) Total stockholders' equity 371,293 377,025 Total liabilities and stockholders' equity $ 430,761 $ 438,745 See note

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View this 10-Q filing on SEC EDGAR