Medicrea Reports First Half 2019 Financial Results - Seite 2

Operating expenses amounted to € 15.8 million in the first half of 2019, down € 0.9 million compared to the first half of 2018 after neutralization of currency effects, thanks to a tight control of marketing and administrative expenses. Investments in Research and Development remained stable. Operating income before interest depreciation and amortization (EBITDA), after taking into account IFRS 16 changes, is positive at € 0.6 million.

Given these elements, operating income improved by 1.1 million euros at -3.4 million euros.

Share-based payments with no cash impact arising from free shares and stock options granted in the last quarter of 2018 amounted to 1 million euro. The cost of net financial debt increased by € 0.9 million as a result of interest expense on the $ 30 million bond issued in December 2018 and interest expense of € 0.2 million due to IFRS 16 accounting changes.

Outlook

Commercial activity in the third quarter is strong despite the seasonality effect of this period. Strong sales in the United States and continued growth in other markets should translate into one of the best quarterly performances in terms of revenue.

This positive trend particularly relates to the UNiD ASI strategic activity of preoperative surgical planning and patient-specific implant design: since the beginning of the year, 1,160 personalized surgeries have been performed at the end of August 2019, an increase of +49% compared to the same period in 2018 with a record number of 184 surgeries performed in August, also following a very good month in July. In the United States, UNiD surgeries now account for 66% of the subsidiary's revenue.

« We are witnessing a rapid evolution of the spine market, which will change dramatically with the development of artificial intelligence and the digitalization of services in operating rooms. In this context, the control and analysis of pre-, intra- and post-operative data to achieve better clinical outcomes and safer and more comfortable surgery for surgeons and patients become a key competitive edge. With the milestone of 5,000 cumulative personalized UNiD surgeries to be achieved in 2019, close collaboration with the world's most renowned surgeons, very broad patent protection over intellectual property and the regular introduction of new innovations (selection of screws before surgery, predictive models, etc.), Medicrea has gained a significant lead over its competitors and has unique assets to establish its position as a leader and pioneer in personalized spinal surgery. » commented Denys Sournac, President and CEO of Medicrea.