Orthopediatrics Corp. · NASDAQ:KIDS
Orthopediatrics — Investor Presentation (January 2025)
39 slides from Orthopediatrics's investor presentation, Jan 14, 2025
Slide 1: 2025 Investor Presentation
2025 Investor Presentation www.OrthoPediatrics.com
Slide 2: Forward-Looking Statements
22 0 2 5 / / Forward-Looking Statements All statements, other than statements of historical facts, contained in this quarterly report, including statements regarding our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business,
Slide 3: Pediatric patients treated since inception
32 0 2 5 / / pediatric patients treated since inception + 1,140,000 OrthoPediatrics was founded on the cause of impacting the lives of children with orthopedic conditions 1 1 Includes patients treated by MD Orthopaedics (MDO), Pega Medical (Pega), and Boston Orthotics & Prosthetics (Boston O&P) sinc
Slide 4: Historical Challenges of Pediatric Orthopedics
01 Children’s unique clinical conditions Existing solutions are re-purposed from adult implants Limited development of new technologies No specialized sales force in Pediatric Orthopedics Limited industry support of clinical education 02 03 04 05 42 0 2 5 / / Historical Challenges of Pediatric Ortho
Slide 5: OrthoPediatrics Solution
52 0 2 5 / / OrthoPediatrics Solution 01 02 03 04 05 Product development focused exclusively on pediatric patients Broadest pediatric specific portfolio in the industry Delivering first in market novel surgical solutions Only global commercial channel to market Leading provider of surgeon clinical e
Slide 6: Total Global Addressable Market – $5.0B
62 0 2 5 / / Total Global Addressable Market – $5.0B Competitive Dynamics $610M Trauma & Deformity Correction Implants $350M Scoliosis Fusion Impants $80M Scoliosis Non- Fusion Implants $775M Specialty Bracing $250M Sports Medicine Implants $165M Growing Implants Large incumbents repurpose adult imp
Slide 7: Only Focused Pediatric Orthopedic Company
72 0 2 5 / / Only Focused Pediatric Orthopedic Company Consistent YoY Growth Since Inception 1 Excluding COVID-impacted 2020 +70 unique pediatric systems Consistent cadence of innovative product launches Expanding suite of enabling technologies Internal R&D, acquisitions, and partnerships Only globa
Slide 8: Strategic Pillars
82 0 2 5 / / Strategic Pillars 02 Provide a broad product portfolio uniquely designed to treat children, surround pediatric orthopedic surgeons covering their needs 04 Expand addressable market through aggressive investment in R&D and select M&A opportunities 05 Train next generation of pediatric or
Slide 9: Focus on High-Volume Children's Hospitals
92 0 2 5 / / Comments ~1,520 Fellowship Trained Pediatric Surgeons Majority of Pediatric Centers are Teaching Hospitals Centers Treat Most Complex Pediatric Conditions ~80% of Pediatric Surgeons time is Non-Surgical 01 02 03 01 Focus on High-Vol Children’s Hospitals Current US Target Market – $1.6B
Slide 10: Pre-IPO Broad Product Portfolio
102 0 2 5 / / Pre-IPO Transitioned from Early Entry to Clinically Significant Cannulated Screws Response 5.5/6.0mm Fusion System PediPlate Physeal Tethering Hip Systems LCB / LPF ACL System BandLoc 5.5/6.0mm Banding Clavicle Plating System PediFlexPediLoc Femur PediLoc Tibia PediFragLocking Proximal
Slide 11: Accelerating Sales Growth Post-IPO
112 0 2 5 / / Accelerating Sales Growth Post-IPO Through Strategic Investment and Innovation $37.3 $45.6 $57.6 $72.6 $71.1 $98.0 $122.3 $148.7 $204.8 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total Revenue ($M) CAGR20232016 13%20590U.S. Independent Sales Consultants 18%$22M$7MInstrument Set Deplo
Slide 12: Post-IPO moved from Clinically Significant to Disruptive
122 0 2 5 / / Post-IPO moved from Clinically Significant to Disruptive 202020192017 2018 FireFly Patient Specific Navigation Guides 2021 DFOS Distal Femoral Osteotomy System MPFL System Wrist Fusion Plates PNP Pediatric Nailing Platform Response 4.5/5.0mm Fusion System Orthex External Fixation Syste
Slide 13: Strategic Acquisitions & Partnerships
132 0 2 5 / / Strategic Acquisitions & Partnerships Partnership Acquisition 202020192017 2022 04 Expand Market with M&A 2021 2023 2024
Slide 14: Acquired Innovative Technologies: Boston Orthotics & Prosthetics
142 0 2 5 / / Acquired Innovative Technologies Boston Orthotics & Prosthetics • Pioneered the original patient-specific, custom Boston Scoliosis Brace • Currently has 5 disease state focuses with 17 different product offerings • Custom manufacturing and fabrication center based outside of Boston, MA
Slide 15: Specialty Bracing Market
152 0 2 5 / / Comments ~80% of Pediatric Surgeons Time is Non-Surgical Same Surgeons Who Use OP Surgical Products Relationship with OP Sales Channel Surrounds the Surgeon with all the Products They Need 01 02 03 $200M Lower Limb Extremity Specialty Bracing $125M Hip / Cranial / Other Speciality Brac
Slide 16: Other Specialty Solutions Target Market
162 0 2 5 / / Motion Assist Devices Fracture Fixation Devices Specialty Casting Spine Halo Traction, Other Specialty Solutions 300 U.S. Pediatric Centers U.S. Potential Target Market 1 — $1.0B Potential Global Target Market – $2.2B 2 0 2 5 / / 1 Management’s Estimate as of January 2024 Levity Device
Slide 17: PLAYBOOK Workflow & Care Optimization for the OR
172 0 2 5 / / PLAYBOOK Workflow & Care Optimization for the OR DIGITAL WORK INSTRUCTIONS define best practices for each user’s role throughout the entire surgical procedure DATA ANALYTICS Surgical Debrief provides real-time PERFORMANCE VISUALIZATION metrics INTERACTIVE LIVE SURGERY VIEW for remote s
Slide 18: ApiFix and Orthex
182 0 2 5 / / ApiFix • Disruptive non-fusion technology • Viable alternative to failed bracing & spinal fusion • Posterior, minimally invasive approach • Motion preserving capabilities • Granted FDA HDE approval Orthex • Disruptive software complements ex-fix frame • Expands addressable market • Ser
Slide 19: FireFly Pedicle Screw Navigation Guides and 7D Surgical
192 0 2 5 / / FIREFLY® Pedicle Screw Navigation Guides FireFly S2/Alar Unique patient specific 3D printed bone models and drill guides, can be used with any Spinal Deformity Correction system. • 99.7% screw placement accuracy • Preoperative concierge surgical planning drives intraoperative efficienc
Slide 20: Physician Education and Awareness
202 0 2 5 / / Physician Education and Awareness OP Hands-on sales training and support • Annually invests 3% of sales on clinical education • Conducts >300 product/training sessions per year Continuous education • Major Sponsor of the prominent pediatric orthopedic societies Market development • Fos
Slide 21: Catalysts & Pipeline
212 0 2 5 / / Catalysts & Pipeline Enabling Technologies Scoliosis • Orthex surgical software • Firefly patient-specific planning/guides • 7D spinal interoperative navigation • PediPortal app • Medtech Concepts – Acquired May 1, 2023 • Advancing non-fusion treatment • Early-onset scoliosis innovatio
Slide 22: New Growth from Current Gaps in Product Offering
222 0 2 5 / / New Growth from Current Gaps in Product Offering P3 | Hip P3 | Mini 2.0 / 2.4 / 2.7 / 3.5 Screw System P3 | Tibia P3 | Femur
Slide 23: Building an EOS Platform
232 0 2 5 / / eLLi Verteglide • Launched in January 2024 • Focus on chest wall expansion to improve breathing capacity • Sets the stage for future growth-friendly implants • Currently under FDA review • Guided Growth • Allows for screws to “glide” along smooth rods • Harnessing the child’s growth to
Slide 24: OPSB Key Growth-Strategic Objectives
242 0 2 5 / / OPSB Key Growth-Strategic Objectives Aggressive market-based clinic expansion strategy Accelerate R&D with increasing number of YoY launches Scale OPSB selling channel and sales force – grow with current portfolio of products Launch 4 products in 2024 and 5 in 2025 18 new markets by 20
Slide 25: OPSB Market Expansion
252 0 2 5 / / OPSB Market Expansion Pace of Market Expansion +4 markets in 2025 +6 markets in 2026 +8 markets in 2027 OPSB clinics expected in 27/80 markets by 2027
Slide 26: OPSB ROI and Timing for Clinic Expansion
262 0 2 5 / / OPSB ROI and Timing for Clinic Expansion 1-4 Clinics per market expected Acqui-HireGreenfield $500K-$1M$200k-$500kInitial Investment Positive EBITDA by end of first full year Positive EBITDA by end of first full yearEBITDA Goal Within first yearAfter first full yearFCF Goal Break even
Slide 27: Differentiated Pediatric Systems Driving Growth
272 0 2 5 / / Trauma & Deformity +17% CAGR 14 41 2016 2023 $26.8 $106.8 2016 2023 Pediatric Systems Revenue +22% CAGR Scoliosis >2X Growth 3 10 2016 2023 $9.3 $37.9 2016 2023 Pediatric Systems Revenue >4X Growth 2023 Revenue by Product Family Trauma & Deformity Scoliosis Sports Medicine72% of Revenu
Slide 28: Strong History of Y/Y Growth
282 0 2 5 / / $0.6 $3.0 $7.1 $10.2 $16.1 $19.6 $23.7 $31.0 $37.3 $45.6 $57.6 $72.6 $71.1 $98.0 $122.3 $148.7 $204.7 $238.5 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Strong History of Y/Y Growth ($M) 400% 137% 44% 58% 22% 21% 31% 20% 22% 26% 26% -2% 38%
Slide 29: Category Revenue Summary
292 0 2 5 / / $19.3 $22.5 $26.8 $32.8 $39.7 $49.4 $47.7 $65.8 $85.1 $106.8 $3.6 $7.4 $9.4 $11.6 $16.7 $21.5 $20.7 $28.0 $33.4 $37.9 $0.8 $1.1 $1.1 $1.2 $1.2 $1.7 $2.7 $4.2 $3.8 $4.0 $0 $20 $40 $60 $80 $100 $120 $140 $160 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Re ve nu e ($ in M ill io ns
Slide 30: Revenue Seasonality
302 0 2 5 / / Seasonality Drives Stronger Performance in Summer Months and Holiday Periods 20% 25% 29% 26% 23% 19% 31% 27% 22% 27% 26% 25% 19% 27% 29% 25% 21% 27% 27% 25% 22% 26% 27% 26% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Re ve nu e as % o f T ot al Y ea r 2019 2
Slide 31: Unaudited Preliminary Fourth Quarter and Full Year 2024
312 0 2 5 / / Unaudited Preliminary Fourth Quarter and Full Year 2024 20242023Fourth Quarter Revenue $52.7$36.7Total Revenue 40%21%Growth % $42.9$23.8U.S. 52%24%Growth % $9.8$9.3International 5%13%Growth % ($ in Millions) 20242023Full Year Revenue $204.7$148.7Total Revenue 38%22%Growth % $161.1$111.
Slide 32: 2025 Guidance
322 0 2 5 / / 2025 Guidance FY2025 $235.0 to $242.0Revenue $15.0 to $17.0Adjusted EBITDA FY2025 15% to 18%2025 Total Revenue Growth % ~$15.0Set Deployment Assumptions Full Year 2025 Guidance ($ in Millions)
Slide 33: Income Statement Summary
332 0 2 5 / / FY2023FY2022FY 2021 $148.7$122.3$98.0Revenue 22%25%38%Growth % $111.3$90.7$73.4Gross profit 75%74%75%Margin % $138.0$116.1$91.4Operating expenses ($26.8)($25.4)($18.0)Operating loss ($21.0)$1.3($16.2)Net (loss) income ($0.92)$0.06($0.84)EPS diluted Income Statement Summary ($ in Millio
Slide 34: Revenue By Geography and Product Category
342 0 2 5 / / Revenue By Geography and Product Category Three Months Ended September 30, 20242023Product Sales by geography $42.7$29.4U.S. 11.910.6International $54.6$40.0Total Revenue Three Months Ended September 30, 20242023Product Sales by category $37.7$28.8Trauma and deformity 15.610.3Scoliosis
Slide 35: Adjusted EBITDA Reconciliation
352 0 2 5 / / Adjusted EBITDA Reconciliation Three Months Ended September 30, 20242023 ($7.9)($4.6)Net loss 0.40.0Interest expense, net (0.1)(0.8)Other (income) expense (1.2)0.9Provision for income taxes (benefit) 5.34.2Depreciation and amortization 4.02.4Stock-based compensation -1.0Tradename impai
Slide 36: Adjusted EPS Reconciliation
362 0 2 5 / / Adjusted EPS Reconciliation Three Months Ended September 30, 20242023 ($0.34)($0.20)Loss per share, diluted (GAAP) -0.04Tradename impairment loss -0.01Accretion of interest attributable to acquisition installment payable 0.01-Acquisition related costs 0.14-Loss on early extinguishment
Slide 37: Balance Sheet
372 0 2 5 / / Balance Sheet Assets $78.1Cash, cash equivalents & short-term investments 42.8Account receivable 120.9Inventory (net) 6.5Other current assets 248.3Total Current Assets 54.8PP&E (net) 186.2Intangibles and goodwill $489.3Total Assets Liabilities $11.7Accounts payable 72.7Debt 30.3Accrued
Slide 38: Investment Summary
382 0 2 5 / / Investment Summary Only diversified company focused exclusively on pediatric orthopedics Large, underpenetrated market opportunity in pediatrics Highly concentrated customer base with targeted commercial strategy Broad product portfolio with innovative solutions Only provider committed
Slide 39: 2850 Frontier Drive Warsaw, IN 465852 ph: 574.268.6379 or 877.268.6339 fax: 574.268.6302 www.OrthoPediatrics.com2
2850 Frontier Drive Warsaw, IN 465852 ph: 574.268.6379 or 877.268.6339 fax: 574.268.6302 www.OrthoPediatrics.com2 0 2 5 / /
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