OrthoPediatrics Corp. (NASDAQ:KIDS) Q3 2019 Earnings Conference Call Transcript

Nov 08, 2019 • 08:00 am ET

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OrthoPediatrics Corp. (NASDAQ:KIDS) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the OrthoPediatrics Corporation Third Quarter 2019 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to speaker today, Ms. Tram Bui with The Ruth Group. Thank you. Please go ahead ma'am.

Executive
Tram Bui

Thanks, operator, and thanks everyone, for participating in today's call. Joining me from the company are Mark Throdahl, Chief Executive Officer; and Fred Hite, Chief Financial Officer.

Before we begin, I would like to caution listeners that comments made by management during this conference call will include forward-looking statements within the meaning of federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve material risks and uncertainties and the company's actual results may differ materially.

For a discussion of risk factors, I encourage you to review the company's most recent annual report on Form 10-K, which was filed with the Securities and Exchange Commission on March 7, 2019. During the call today, management will also discuss certain non-GAAP financial measures, which are used as supplemental measures of performance. The company believes these measures provide useful information for investors in evaluating its operations period-over-period. For each non-GAAP financial measure referenced on this call, the company has included a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures in its earnings release.

Please note that non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for OrthoPediatrics' financial results prepared in accordance with GAAP. In addition, the content of this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, November 8, 2019. Except as required by law, the company undertakes no obligation to revise or update any statement to reflect events or circumstances that take place after the date of this call.

With that said, I would like to turn the call over to Mark.

Executive
Mark Throdahl

Good morning, everyone, and thank you for joining us today on our third quarter 2019 earnings conference call. I'm pleased to review with you our strategic progress and our accelerated growth. I'll start with an overview of our performance for the quarter and then review our key growth initiatives, which include set investments, new products, acquisitions and the integration of Orthex, international growth, culture and clinical education. I'll then turn the call over to Fred for a detailed financial review and update to our full year 2019 guidance. We'll then open the call up to questions.

The third quarter was another period of systematic execution that produced the largest revenue quarter in the company's history. $20.7 million in sales and more than 31% growth year-over-year. We drove growth across all product lines, with Trauma and deformity growing at 31%, Scoliosis 29%, and Sports Medicine/Other 90%. Domestic growth was 35% and international growth was 16%. We're pleased with the impact of recent new product introductions, together with the increased