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Orthofix Medical Inc. (OFIX+0.27%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing net sales of $196.6 million, an increase of 6.8% from $184.0 million in the same quarter the previous year. The increase is attributed to growth in Bone Growth Therapies and Spinal Implants, Biologics, and Enabling Technologies.
Cost of sales for the quarter was $61.6 million, representing 31.3% of sales, compared to 34.9% in the same quarter of the previous year. This reduction in cost ratio is due to a decrease in amortization of the inventory fair value step-up.
The company reported a gross profit of $135.1 million for the quarter, compared to $119.8 million in the previous year, with the improvement attributed to increased sales and reduced cost of sales.
Selling, general, and administrative expenses increased to $33.6 million from $27.1 million, primarily due to litigation and investigation-related costs and increased share-based compensation.
Net loss for the quarter was $27.4 million, compared to a net loss of $28.9 million in the previous year. The decrease in net loss is attributed to improved gross profit.
Cash provided by operating activities was $2.1 million, while cash used in investing and financing activities was $26.4 million and $19.2 million, respectively.
Orthofix had cash, cash equivalents, and restricted cash of $32.6 million as of September 30, 2024. The company recently entered into a $275 million secured credit agreement to optimize its capital structure.
The filing also details various financial agreements, including a new credit agreement with Oxford Finance LLC and K2 Healthventures LLC.
Orthofix identified a material weakness in its internal controls over financial reporting due to insufficient evidence supporting certain management review controls.
The company continues to focus on expanding its product offerings and improving its operational efficiencies, with recent growth in its Bone Growth Therapies and Global Orthopedics segments.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Orthofix Medical Inc. quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.