Item 2.02. Results of Operations and Financial Condition.
Paragon 28, Inc. is disclosing certain preliminary results of operations as at
and for the three months and year ended December 31, 2022.
Preliminary Estimated Financial Data for the Three Months and Year Ended
December 31, 2022
Our financial statements as of and for the year ended December 31, 2022 are not
yet available. Accordingly, the information presented below reflects our current
preliminary estimates and expectations for the three months and the year ended
December 31, 2022, subject to the completion of our financial close process, any
adjustments that may result from the completion of such financial close process,
and the finalization of our actual financial statements for the year ended
December 31, 2022. As a result, these estimates may differ from the actual
results that will be reflected in our financial statements as of and for the
year ended December 31, 2022 when they are issued. These estimates may change
and those changes may be material. These estimates are not meant to be a
comprehensive statement of our financial position and results for these periods.
Accordingly, you should not place undue reliance on these estimates.
For the quarter ended December 31, 2022, our preliminary unaudited net revenue
is expected to be in a range of $51.2 to $51.5 million, as compared to
$42.8 million for the quarter ended December 31, 2021, an increase of
approximately 20% compared to quarter ended December 31, 2021. These results
reflect foreign currency headwinds which are expected to reduce preliminary
unaudited fourth quarter 2022 net revenue growth and net revenue by 1.6% and
$0.7 million, respectively, as compared to the quarter ended December 31, 2021.
Our preliminary estimated gross margin for the quarter ended December 31, 2022
is expected to be in a range of 81% to 82% compared to 81.7% for the quarter
ended December 31, 2021.
For the year ended December 31, 2022, our preliminary unaudited net revenue is
expected to be in a range of $181.0 to $181.3 million, as compared to
$147.5 million for the year ended December 31, 2021, an increase of
approximately 23% compared to year ended December 31, 2021. These results
reflect foreign currency headwinds which are expected to reduce preliminary
unaudited full-year 2022 net revenue growth and net revenue by 1.4% and
$2.1 million, respectively, as compared to the full-year of 2021. Our
preliminary estimated gross margin for the year ended December 31, 2022 is
expected to be approximately 82% compared to 81% for the year ended December 31,
2021.
As of December 31, 2022, our preliminary estimated cash and cash equivalents
balance was $38.5 million.
These preliminary estimates have been prepared by, and are the responsibility
of, our management and are based on a number of assumptions. Deloitte & Touche
LLP has not audited, reviewed, compiled or performed any procedures with respect
to such preliminary information as of and for the three months and the year
ended December 31, 2022. Accordingly, Deloitte & Touche LLP does not express an
opinion or any other form of assurance with respect to these preliminary
amounts.
The information contained in Item 2.02 is furnished to and not filed with the
Securities and Exchange Commission, and shall not be incorporated by reference
into any registration statement or other document filed under the Securities Act
of 1933, as amended (the "Securities Act"), or the Securities Exchange Act of
1934, as amended (the "Exchange Act"), regardless of any general incorporation
language in any such filing or document, except as shall be expressly set forth
by specific reference in such filing.
Cautionary Statement Regarding Forward-Looking Statements
This Current Report on Form 8-K contains certain "forward-looking" statements as
that term is defined by Section 27A of the Securities Act and Section 21E of the
Exchange Act. Statements that are predictive in nature, that depend on or relate
to future events or conditions, or that include words such as "believes",
"anticipates", "expects", "may", "will", "would," "should", "estimates",
"could", "intends", "plans" or other similar expressions are forward-looking
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statements, including the Company's preliminary financial results for the
quarter and year ended December 31, 2022. These forward-looking statements are
based on the Company's current assumptions, expectations and beliefs and are
subject to numerous risks, including, among other things, those set forth under
the caption "Risk Factors" in the Company's most recent filings with the
Securities and Exchange Commission, uncertainties, assumptions and changes in
circumstances that may cause the Company's actual results, performance or
achievements to differ materially from those expressed or implied in any
forward-looking statement. The Company cautions investors not to place undue
reliance on the forward-looking statements contained in this Current Report on
Form 8-K.
Further information on these and other factors that could affect the Company's
financial results and the forward-looking statements in this Current Report on
Form 8-K is included in the Company's filings with the Securities and Exchange
Commission, including, among others, the Company's Annual Report on Form 10-K
for the year ended December 31, 2021, particularly under the captions "Risk
Factors" and "Management's Discussion and Analysis of Financial Condition and
Results of Operations."
The Company undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events, or otherwise.
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