Orthopediatrics Corp. (NASDAQ: KIDS) saw its stock price decrease by 1.5% today, trading at $29.87 per share. The company has just released its preliminary unaudited financial highlights for the fourth quarter and full year 2023, along with its 2024 financial guidance.
According to the press release, Orthopediatrics expects its preliminary unaudited net revenue for the fourth quarter of 2023 to be $37.6 million, indicating a 21% growth compared to the same period in 2022. The company highlighted that it helped nearly 20,000 children during this quarter, and has aided over 710,000 children since its inception. Additionally, the combined organizations, including Boston O&P, have assisted more than 1 million kids.
For the full year 2023, preliminary unaudited net revenue is expected to be $148.7 million, representing a 22% increase compared to 2022. This includes a domestic net revenue of $111.0 million, reflecting a 20% annual growth, and an international net revenue of $37.7 million, showing a 26% annual growth.
David Bailey, President and CEO of Orthopediatrics, expressed confidence in the company's position, stating, "Orthopediatrics remains in its strongest strategic position of all time, supported by an expanding user base, robust product portfolio, recent acquisitions, and a growing international presence."
Following the recent acquisition of Boston O&P, Orthopediatrics has a cash and restricted cash balance of approximately $60 million. The company also entered into a new credit agreement with MidCap Financial, providing up to $80 million in total consideration.
Looking ahead, Orthopediatrics projects its 2024 revenue to be in the range of $197 million to $200 million, including revenue contribution from Boston O&P, and representing 32% to 34% growth compared to full year 2023 preliminary unaudited net revenue.
Bailey added, "The acquisition is expected to be accretive to Orthopediatrics adjusted EBITDA in 2024 and accretive to revenue growth in 2025, following the completion of integration activities."
The company plans to release its fourth quarter and full year 2023 financial results and provide additional commentary on its financial outlook in March. It's important to note that the preliminary unaudited net revenue estimates for 2023 are subject to adjustment pending the completion of review and audit procedures by the company's independent registered public accounting firm.
The company's full 8-K submission is available here.
