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SeaSpine Announces Preliminary Results for Fourth Quarter and Full-Year 2018
CARLSBAD, Calif., Jan. 07, 2019 (GLOBE NEWSWIRE) -- SeaSpine Holdings Corporation (NASDAQ: SPNE), a global medical technology company focused on surgical solutions for the treatment of spinal disorders, announced today preliminary financial results for the fourth quarter and full-year 2018.
Preliminary and unaudited revenue for fourth quarter 2018 is expected to be in the range of $37.6 to $38.0 million, reflecting approximately 10.6% to 11.8% growth compared to the prior year period. Fourth quarter 2018 U.S. revenue is expected to be in the range of $33.8 to $34.1 million, reflecting 8% to 9% growth compared to the fourth quarter 2017. U.S. Orthobiologics revenues are expected to reflect growth within the 9% – 10% range and U.S Spinal Implants revenues are expected to reflect growth within the 7.5% to 8.5% range for the fourth quarter. International revenue is expected to increase more than 35% to approximately $3.8 to $3.9 million, with growth primarily driven by a recently added distributor in Australia.
Preliminary and unaudited full-year 2018 revenue is expected to be in the range of $143.0 to $143.4 million, reflecting growth of approximately 8.5% to 9% over full-year 2017.
Cash, cash equivalents and investments at December 31, 2018 are expected to be approximately $54.0 million. The Company raised approximately $54 million of net proceeds in October from an underwritten public offering of 3.7 million shares of common stock and used a portion of those proceeds to repay the entire $7.3 million of outstanding borrowings under its credit facility.
“We are pleased by our strong revenue performance in the fourth quarter, which reflects continued solid growth across our portfolios,” said Keith Valentine, President and Chief Executive Officer. “We are confident that we are well capitalized and positioned to sustain this growth as we continue to deliver cost effective procedural solutions to surgeons and hospitals to improve the quality of patient lives.”
2019 Financial Outlook
SeaSpine expects full-year 2019 revenue to be in the range of $152 to $156 million.
SeaSpine (www.seaspine.com) is a global medical technology company focused on the design, development and commercialization of surgical solutions for the treatment of patients suffering from spinal disorders. SeaSpine has a comprehensive portfolio of orthobiologics and spinal implants solutions to meet the varying combinations of products that neurosurgeons and orthopedic spine surgeons need to perform fusion procedures on the lumbar, thoracic and cervical spine. SeaSpine’s orthobiologics products consist of a broad range of advanced and traditional bone graft substitutes that are designed to improve bone fusion rates following a wide range of orthopedic surgeries, including spine, hip, and extremities procedures. SeaSpine’s spinal implants portfolio consists of an extensive line of products to facilitate spinal fusion in minimally invasive surgery (MIS), complex spine, deformity and degenerative procedures. Expertise in both orthobiologic sciences and spinal implants product development allows SeaSpine to offer its surgeon customers a differentiated portfolio and a complete procedural solution to meet their fusion requirements. SeaSpine currently markets its products in the United States and in over 30 countries worldwide.
SeaSpine cautions you that statements included in this news release that are not a description of historical facts are forward-looking statements that are based on the Company's current expectations and assumptions. Such forward-looking statements include, but are not limited to, statements relating to: the Company’s ability to sustain its revenue growth and deliver cost-effective procedural solutions; and the Company’s expectations for full-year 2019 revenue. In addition, this release contains preliminary financial results for fourth quarter and full-year 2018. These preliminary results are not a comprehensive statement of financial results for either fourth quarter or full-year 2018 and are provided prior to completion of all internal and external review and audit procedures and therefore are subject to adjustment. Among the factors that could cause or contribute to material differences between the Company’s actual results and the expectations indicated by the forward-looking statements are risks and uncertainties that include, but are not limited to: surgeons’ willingness to continue to use the Company’s existing products and to adopt its newly launched products, including the risk that the Company’s products do not demonstrate adequate safety or efficacy, independently or relative to competitive products, to support expected levels of demand or pricing; the ability of newly launched products to perform as designed and intended and to meet the needs of surgeons and patients, including as a result of the lack of clinical validation of products in limited commercial (or “alpha”) launch; the Company’s ability to retain and attract new, high-quality distributors, whether as a result of inability to reach agreement on financial or other contractual terms or otherwise, disruption to the Company’s existing distribution network as new distributors are added, and the ability of new distributors to generate growth or offset disruption to existing distributors; continued pricing pressure, whether as a result of consolidation in hospital systems, competitors or others, as well as exclusion from major healthcare systems, whether as a result of unwillingness to provide required pricing or otherwise; the risk of supply shortages and the associated, potentially long-term disruption to product sales, including as a result of the Company’s dependence on a limited number of third-party suppliers for components and raw materials, or otherwise; unexpected expense and delay, including as a result of developing and supporting the launch of new products, the fact that newly launched products may require substantial additional development activities, which could introduce further expense and delay, or as a result of obtaining regulatory clearances; the Company’s ability to continue to invest in product development and sales and marketing initiatives at levels sufficient to drive future revenue growth, including as a result of its inability to obtain funding on a timely basis on acceptable terms, or at all; general economic and business conditions in the markets in which the Company does business, both in the U.S. and abroad; and other risks and uncertainties more fully described in the Company’s news releases and periodic filings with the Securities and Exchange Commission. The Company’s public filings with the Securities and Exchange Commission are available at www.sec.gov.
You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date when made. SeaSpine does not intend to revise or update any forward-looking statement set forth in this news release to reflect events or circumstances arising after the date hereof, except as may be required by law.
Investor Relations Contact
Lynn Pieper Lewis