K2M announces its third-quarter 2017 financial results

K2M Group Holdings Inc. announced its third-quarter 2017 financial results, which ended Sept. 30, 2017.

According to a press release, the total revenue from the third quarter was $62.7 million, up 6% year-over-year on a reported basis or 5% on a constant currency basis. The net loss for this quarter was $8.5 million compared with a net loss of $7.9 million in the third quarter of 2016. During the third quarter of 2017, the total revenue increased $3.3 million to $62.6 million compared with $59.3 million in the third quarter of 2016.

In the United States, the revenue was $48.5 million, a $2.5 million increase or 5.4% year-over-year. International revenue was $14.2 million, a $0.8 million increase or 6.4% year-over-year. The third-quarter gross profit was $42.2 million, which was a 6.1% increase from the third quarter of 2016.

The net loss for the third quarter of 2017 was $8.5 million, or $0.20 per diluted share vs. the third quarter of 2016, with a net loss of $7.9 million, or $0.19 per diluted share.

“Our revenue results for the third quarter of 2017 reflect total revenue growth of 6% year-over-year on a GAAP basis and 5% on a constant currency basis,” Eric Major, chairman, president and CEO of K2M, said in the release. “Although we continued to see growth, our third-quarter revenue performance was impacted by slower initial on-boarding of the new distribution team in the U.S., disruption of account activity and canceled procedures related to the hurricanes in Texas, Florida and Puerto Rico in early September. Third-quarter deformity trends were strong in July and August and we experienced strong headwinds in September. U.S. sales growth in our degenerative procedure category continued to be fueled by our new product introductions including our industry-leading 3-D printed portfolio, offset partially by modestly weaker procedure volumes as compared to last year.”

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