RTI Biologics Inc. (RTI), the processor of orthopedic, dental, hernia and other biologic implants, has reported total revenues of $38.6 million for the first quarter of 2009, compared to the total revenues of $29.9 million in the year-ago quarter. It has also reported a net income of $1 million, or $0.02 per diluted share, for the first quarter of 2009, compared to the net income of $0.64 million, or $0.02 per diluted share, in the year-ago quarter.
2009 Outlook
The company announced in a guidance release on January 16, 2009 that 2009 revenues are estimated to be $166 to $168 million, with fully diluted earnings per share of $0.11 to $0.13. There are no changes to this guidance at this time.
Quarterly Highlights:
Achieved quarterly revenues of $38.6 million, with gross margin of 47%
Achieved net income of $1.0 million, or $0.02 per fully diluted share
Closed $11.75 million financing agreement with Mercantile Bank on Jan. 28, 2009
Introduced two new sports medicine implants, Matrix HD™ and Fresh OC Talus, at the American Academy of Orthopedic Surgeons annual meeting
Launched Puros putty with Zimmer Dental
Increased revenues for sports medicine by 11% sequentially over fourth quarter 2008
Grew surgical specialties revenues by more than 35% sequentially over fourth quarter 2008
“We are pleased with our results in the first quarter considering the impact of current global economic conditions on our markets,” said Brian K. Hutchison, RTI chairman and chief executive officer. “Although our revenues for the quarter on a combined basis increased only slightly over 2008, we continue to make progress optimizing our merger with Tutogen, which was completed Feb. 27, 2008.”
First Quarter 2009 Analysis
Domestic revenues were $32.3 million for the first quarter of 2009, representing an increase of 24% over the prior year results, primarily reflecting the inclusion of Tutogen revenues for three months in 2009 versus the period of Feb. 28 to March 31, 2008 in the prior year. For the first quarter 2009, the strongest domestic performance was in surgical specialties, with sequential and year over year growth rates that substantially exceed market growth rates. Sports medicine revenues recognized significant sequential quarterly revenue growth and were favorably impacted by the improved effectiveness of our direct biologic distribution representatives. Dental revenues were negatively impacted by slowing economic growth as many of these procedures are elective and not covered by insurance.
International revenues, which include exports and distribution from our German and French facilities, were $6.3 million for the first quarter of 2009, representing an increase of 64% compared to the prior year period, primarily reflecting the inclusion of Tutogen international revenues for three months in 2009 versus the period of Feb. 28 to March 31, 2008 for the prior year.
During the first quarter of 2009, inventories increased more than expected primarily due to the success of the company’s donor services activities in obtaining additional tissue to support future new implant introductions and revenue growth.
“For the remainder of the year, inventories should decline based on our tissue recovery and processing plans,” Hutchison said. “Although the build-up of inventory impacted cash in the quarter, we are confident we have adequate liquidity to meet the needs of our operating plans for this year.”