RTI Surgical™ Announces Preliminary Third Quarter 2013 Revenues
Earnings Release Set for Oct. 29, 2013
Company Announces New Allograft Distribution Agreement with Medtronic for
ALACHUA, Fla. -- October 16, 2013
RTI Surgical Inc. (RTI) (Nasdaq: RTIX), a global surgical implant company,
announced today preliminary revenue results for the third quarter ended Sept.
30, 2013. The company expects to report total revenues of approximately $54.7
million, as compared to the company’s prior guidance of $59 million to $61
“Our revenues came in lower than projected due to several factors including
uncertainties surrounding when the Food and Drug Administration (FDA) would
provide a close-out to the warning letter that we received in October 2012, a
slower than expected ramp in our new direct surgical specialties business,
lower than expected volumes in our spine business and lower than projected
revenues in our international business due to shortages in tissue supply,”
said Brian K. Hutchison, president and chief executive officer of RTI. “We are
working diligently to rebuild business that was lost in the first half of the
year and gain new customers. We have made progress on integrating the Pioneer
business and are in the early stages of realizing cross distribution
opportunities. We are confident we are headed in the right direction for long
RTI will release full financial results from the third quarter 2013 as well as
update guidance for full year 2013 on Tuesday, Oct. 29, 2013 prior to the
The company will host a conference call and simultaneous audio webcast to
discuss third quarter 2013 results at 8:30 a.m. EDT the same day. The
conference call can be accessed by dialing (877) 383-7419 (U.S.) or (760)
666-3754 (International). The webcast can be accessed through the investor
section of RTI’s website at www.rtix.com. A replay of the conference call will
be available on RTI’s website for one month following the call.
Distribution Agreement with Medtronic
In addition, RTI announced today that it has entered into a new agreement with
Medtronic Sofamor Danek USA, Inc. (MSD) to process allograft implants for use
in spinal surgeries.
The initial term of the agreement runs until Dec. 31, 2017 with two five year
extensions available through 2027. The terms of the agreement are
substantially equivalent to the previous agreement between the two companies,
which was set to expire June 2014, and include transfer fee structures and
intellectual property rights for spinal allograft distribution.
With this new agreement, RTI will continue its long-term relationship with MSD
to effectively and efficiently meet their demand, as well as maximize the gift
of human donated tissue to help more patients in need.
“We have had a long relationship with Medtronic from the earliest days of our
company, and we look forward to working together to deliver safe, high quality
allograft implants for use in spinal surgeries for many years to come,” said
Brian K. Hutchison, RTI president and CEO.
About RTI Surgical, Inc.
RTI Surgical is a leading global surgical implant company providing surgeons
with safe biologic, metal and synthetic implants. Committed to advancing
science, safety and innovation, RTI’s implants are used in sports medicine,
general surgery, spine, orthopedic, trauma and cardiothoracic procedures and
are distributed in nearly 50 countries. RTI is headquartered in Alachua, Fla.,
and has four manufacturing facilities throughout the U.S. and Europe.RTI is
accredited in the U.S. by the American Association of Tissue Banks and is a
member of AdvaMed. For more information, please visit www.rtix.com.
Forward Looking Statement
This communication contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based on management’s current expectations, estimates and
projections about our industry, our management's beliefs and certain
assumptions made by our management. Words such as "anticipates," "expects,"
"intends," "plans," "believes," "seeks," "estimates," variations of such words
and similar expressions are intended to identify such forward-looking
statements. In addition, except for historical information, any statements
made in this communication about anticipated financial results, growth rates,
new product introductions, future operational improvements and results or
regulatory actions or approvals or changes to agreements with distributors
also are forward-looking statements. These statements are not guarantees of
future performance and are subject to risks and uncertainties, including the
risks described in public filings with the U.S. Securities and Exchange
Commission (SEC). Our actual results may differ materially from the
anticipated results reflected in these forward-looking statements. Copies of
the company's SEC filings may be obtained by contacting the company or the SEC
or by visiting RTI's website at www.rtix.com or the SEC's website at
RTI Surgical Inc.
EVP and CFO
Wendy Crites Wacker, 386-418-8888
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