WARSAW, Ind. - OrthoPediatrics Corp. (NASDAQ:KIDS), a company dedicated to pediatric orthopedics, announced its preliminary unaudited net revenue for the fourth quarter and full year ended December 31, 2023, along with financial guidance for 2024. The company reported an expected 21% growth in fourth-quarter revenue and a 22% increase in annual revenue compared to the previous year.
The preliminary net revenue for the fourth quarter is anticipated to be $37.6M, up from $31.0M in the same quarter of 2022. Domestically, revenue for the quarter is projected to be $28.3M, a 24% increase, while international revenue is expected to reach $9.3 million, marking a 13% growth. For the full year of 2023, OrthoPediatrics expects to report $148.7M in net revenue, up from $122.3M in 2022.
Despite challenges in the latter part of the fourth quarter due to high rates of respiratory illness, the company maintained its revenue growth, attributing the success to its commercial and operational strategies. President & CEO David Bailey highlighted the company's strong strategic position, bolstered by an expanding user base, a robust product portfolio, recent acquisitions, and a growing international presence.
Following the acquisition of Boston O&P on January 5, 2024, OrthoPediatrics' cash and restricted cash balance stands at approximately $60M. The company has also entered a new credit agreement with MidCap Financial, securing up to $80M in capital through a term loan and revolving loan facility.
Looking ahead to 2024, OrthoPediatrics projects revenue to be in the range of $197M to $200M, which would represent a 32% to 34% increase from the projected 2023 figures. This forecast includes contributions from Boston O&P, which has historically generated about $25M in annual revenue. The acquisition is expected to be accretive to the company's adjusted EBITDA in 2024 and to revenue growth in 2025 after integration activities are completed.
The company plans to release its official fourth quarter and full year 2023 financial results in March, providing additional commentary on its financial outlook. These preliminary revenue estimates are subject to adjustment upon completion of audit procedures.
This news article is based on a press release statement, and it should be noted that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected.
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