Warsaw-based OrthoPediatrics Corp. (Nasdaq: KIDS) is reporting a first-quarter net loss of $4.9 million, compared to a loss of $3 million during the same period a year ago. The company also announced a succession plan with current Executive Vice President David Bailey being appointed president, with the anticipation he will assume the role of chief executive officer at a future date.
The Kosciusko County firm said total revenue climbed nearly 12% in Q1 despite the worldwide health crisis.
The orthopedics device maker for the children’s market said its international sales were impacted earlier by COVID, and stocking distributors canceled orders that are typically weighted to the end of the quarter.
“We saw a strong start to the year with 30% domestic revenue growth for the quarter, and we are pleased to sustain our momentum on corporate initiatives that will allow us to emerge from the COVID-19 crisis stronger than when we entered it,” said Throdahl.
As part of the company’s senior succession plan, Bailey will become president of OrthoPediatricts on June 3. Current President and Chief Executive Officer Mark Throdahl is being appointed executive chairman.
Also, Fred Hite will become chief operating officer and chief financial officer, effective June 3.
“We are fortunate to have two leaders of exceptional quality in both Dave Bailey and Fred Hite. Together, they will maintain the strategic progress, financial track record, and engaging culture that have distinguished OrthoPediatrics during Mark’s tenure as CEO,” said Terry Schlotterback, OrthoPediatrics’ chairman of the board.
Schlotterback said Throdahl, who will turn 70 years old next year, approached him about initiating the leadership changes.