K2M tops estimates with prelims, plans $101m offering

K2M (NSDQ:KTWO) this week released preliminary Q2 results and priced a $101 million follow-on offering for its line of spinal implants. Leesburg, Va.-based K2M said it expects to post losses of -$8.5 million to -$6.5 million on sales of $55.9 million to $56.4 million for the 3 months ended June 30, paring its losses from -$17.7 million on sales growth of 18% to 19% compared with Q2 2014. “Our preliminary financial results for the second quarter of 2015 reflect revenue growth of approximately 20% year-over-year, driven by continued strength in our domestic business. We remain focused on increasing our share of the $2.6 billion global complex spine and minimally invasive surgery markets and on driving shareholder value creation going forward,” CEO Eric Major said in a press release. K2M also said it plans to float 4.5 million shares at $22.60 per share in the follow-on, which is slated to close July 13. Barclays is the sole book-runner and underwriter for the offering, the company said. The flotation is only expected to gross $17.0 million for K2M, which is putting up 750,000 shares.  It includes a 30-day underwriters option for another 675,000 shares, K2M said. Proceeds are earmarked for working capital and general corporate purposes, such as expanding its global distribution, the company said. K2M shares dropped more than 6% today to $22.69 apiece in mid-day trading. In a separate release, K2M announced the launch of 6 of its spinal systems in S...
Source: Mass Device - Category: Medical Equipment Authors: Tags: Business/Financial News MassDevice Earnings Roundup Orthopedics Spinal K2M Source Type: news